NORTHWESTERN MICHIGAN COLLEGE
BOARD OF TRUSTEES
Monday, January 26, 2009, Oleson Center

CALL TO ORDER – Chair Walter “Jay” Hooper called the meeting to order at 6:30 p.m.

Oath of Office was taken by Trustees K. Ross Childs, William D. Myers, and Susan K. Sheldon.

REVIEW AND APPROVAL OF AGENDA – Doug Bishop made a motion to approve the agenda.  Seconded by Bob Brick, the motion carried.

Annual Meeting Business

Reading Notice and Proof of Mailing – The notice of annual meeting was read and proof of delivery verified, in accordance with Board of Trustees bylaws.

Election of Officers – Cheryl Follette made a motion, seconded by Ross Childs, that the following slate of Board officers be approved for 2009: K. Ross Childs, Chair; Robert Brick, Vice Chair; William Myers, Secretary; and Douglas Bishop, Treasurer.  Motion carried.

Past Board Chair Walter Hooper passed the gavel to newly elected Board Chair, Ross Childs.

Regular Board Meeting Dates – On a motion by Cheryl Follette, seconded by Doug Bishop, dates for regular board meetings through June 2010 were approved as presented.

Committee Assignments – Chair Ross Childs assigned trustees to board committees as follows: 

REPORTS:

Fall Employee of the Semester – Cathy Jones, Vice President of Finance and Administration, introduced Chris Keenan, Coordinator of Benefits and Human Resources.  Chris announced that Carol Kasper, Office Manager in Human Resources, was selected as the NMC Employee of the Semester for fall 2008.  When structural changes occurred in Human Resources last fall, Carol assumed new areas of responsibility, took the risks and got the job done during a very stressful time for HR.  Trustees thanked Carol for a job well done!

Foundation Scholarship Report – Kathleen Guy reported that the NMC Foundation awarded almost $1 million in scholarships in FY08.  She noted the following trends:  more applications for financial aid; an increase in the number of donors (12-18 new per year); and growth in “pass-through” scholarships from other organizations. Kathleen predicted that the difficult market conditions will result in fewer endowed scholarships and is likely to impact philanthropic giving for the next two years. Scholarships remain a fundraising priority for the Foundation.  Kathleen also reported on a streamlined scholarship award process that has been implemented in the form of a searchable database of scholarships.

Enrollment Update – Stephen Siciliano referred to Anne Monroe’s enrollment update that was provided in the board materials and asked if trustees had questions regarding that information.  There were no questions.

Institutional Effectiveness (IE) Portfolio: Culture – Craig Mulder updated the board on the schedule for reporting on Institutional Effectiveness criteria. Darby Hiller noted that the “Os” and “?s” that surfaced in prior institutional effectiveness surveys are being tracked and held for future consideration and evaluation.  Cathy Jones asked if there were any questions on the IE Portfolio Report on Culture.  Trustees noted the report was very well prepared.  Darby Hiller demonstrated the project tracking tool that is being used.  Bill Myers suggested using an online suggestion box.

Monthly Financial Report – There were no questions on the report.  Ross Childs questioned the property tax issue of devaluation.  Cathy Jones explained that the financial impact of property devaluation lags behind the devaluation, and she has projected that in next year’s budget.

End of Year Projections – Cathy Jones, Vice President of Finance and Administration, discussed the FY09 year-end projection report included in the board materials and noted that all numbers are subject to change as the rest of the fiscal year unfolds.

FY10 Budget Development Update – President Nelson provided an overview of existing conditions that are taken into consideration as the FY10 budget is developed.  NMC is providing access to more students, operating more efficiently, and providing more services with fewer State dollars.  Budget development goals for next year include: minimal tuition increases to qualify for Michigan tuition tax credit; continued investment in new products, services, and processes; maintenance of the learning infrastructure; investment in people; preparation for more reductions in state funding; continued increase in productivity; and reduction or delay of expenditures where possible.  Cathy Jones described the budget development process (revenue drivers, expense drivers, and assumptions) and demonstrated the budget development model.  During January-April, staff will continue to prepare preliminary budges and test budget assumptions and scenarios.  Final action on tuition and the budget is anticipated in May-June. 

Foundation Finance and Audit Committee Report – Ross Childs reported that the next NMC Foundation Finance and Audit Committee meeting is scheduled for Wednesday, February 4th.  At this meeting, the Committee will receive a portfolio report from JP Morgan/Chase bank representatives; review the overall portfolio report for the quarter ending December 31; discuss endowments and FY 10 spending recommendations; and review a new draft investment policy.

Foundation Report – Doug Bishop reported the following:

• The Annual Campaign has reached 88% of goal, with $307,321 raised from 636 donors including 85 first-time donors. Given our current numbers, the Foundation will likely exceed their goal for 700 total donors to the campaign and our goal of attracting 100 new first-time donors.  Bruce Byl and Susan Sheldon, co-chairs, are leading the campaign wrap-up, including follow-up mailings to specific donor groups and a student-led phonathon for those who donated last year, but not yet this.
• The Foundation’s comprehensive fundraising program includes two special events each year—the BBQ and the NMC Scholarship Open.  Both committees are now meeting and planning this year’s events.  A BBQ kick off is being planned at the Grand Traverse Mall on February 21.  A National Guard obstacle course and children’s games will be featured attractions as area elementary school PTOs sell tickets for the May 17 BBQ. 
• The second round of Student Innovation grants resulted in funding two student organizations.  The National Student Peace Alliance will attend a national conference, and the Native American Student Association will bring a flute master, educator and cultural storyteller to campus in March.
• The first Foundation Board meeting of 2009 will be held on February 25.

Board Policy Committee – Chair Jay Hooper reported that the committee did not meet.

Board Chair Report – Jay Hooper thanked everyone who attended the retreat.  It was time well spend and all came away with a good feeling for the work they are doing.  Ross Childs agreed, and said it was one of the most productive retreats they have had.

President’s Report – President Nelson thanked trustees for their time spent at the January retreat.  He also thanked staff members for their work in preparing the reports for this meeting. 

PUBLIC INPUT – None

CONSENT ITEMS – On a motion by Jay Hooper, seconded by Doug Bishop, the following items were approved:

• Minutes of the December 22, 2008 regular meeting and January 14-15, 2009 retreat
• Contributions for December 2008
• Grant notifications for quarter ending December 31, 2008
• Summary Report for General Fund Accounts as of December 31, 2008

ACTION ITEMS:

General Administrative Control – Bob Brick made a motion to adopt a resolution assigning general administrative control, authority to obtain credit, give security, and conduct other financial transactions with institutions with which the College does business, pursuant to Board policies.  Seconded by Jay Hooper, the motion carried.

Resource Guidelines for FY10 – Doug Bishop made a motion, seconded by Jay Hooper, to approve the NMC Resource Guidelines for fiscal year 2009-10 as presented.  Motion carried.

Housing Rates – Jay Hooper made a motion, seconded by Doug Bishop, to approve the Residence Hall and Apartment Rental Rates for the 2009-10 academic year as presented.  In response to questions regarding occupancy, Stephen Siciliano agreed to provide the housing plan and occupancy rate information to trustees.  Motion carried.

DISCUSSION ITEM: The American Recovery and Reinvestment Plan – President Nelson explained the current federal legislation relating to the American Recovery and Reinvestment Plan.  He reviewed the project descriptions that have been developed for consideration, should the legislation pass. Doug Bishop advised moving forward with discussions on the Master Plan with the City.  Ross Childs, Jay Hooper and Susan Sheldon agreed.  Bob Brick asked about use of TCAPS buses rather than BATA; President Nelson agreed that is a possibility to be explored.  Bill Myers asked the cost of preparing the proposal to date.  President Nelson answered that approximately $3,000 has been spent on drawings.  He estimates it will cost $10,000 to develop Student Center conceptual drawings for a conversation with the City.  Ross Childs thanked Ed Bailey and others for putting this project together quickly.  President Nelson will continue to monitor the progress of the legislation and determine what other information and action would be needed should the projects be funded. 

Recorded by Karen Sabin