BOARD OF TRUSTEES WEDNESDAY, JULY 16, 2008

1:00 P.M.

BOARD ROOM WELLS FARGO PLACE 30 7TH STREET EAST

SAINT PAUL, MN Please note: Committee/Board meeting times are tentative. Committee/Board meetings may begin up to 45 minutes earlier than the times listed below if the previous committee meeting concludes its business before the end of its allotted time slot.

Chair’s Report (a) Minutes of Board of Trustees Meeting of May 21, 2008 (pp. 1-7) (b) Election of Officers (p. 8) (c) Revised FY 2009 Meeting Calendar (p.9) (d) Report of Closed Session on Chancellor’s Evaluation (e) Emeriti Recognition (p. 10)

Bolded items indicate action required.

MINNESOTA STATE COLLEGES AND UNIVERSITIES

BOARD OF TRUSTEES MEETING MINUTES MAY 21, 2008

WELLS FARGO PLACE ST. PAUL, MINNESOTA

Trustees Present: Chair David Olson, Caleb Anderson, Duane Benson, Michael Boulton, Cheryl Dickson, Ruth Grendahl, Dan McElroy, David Paskach, Thomas Renier, Christine Rice, Ann Curme Shaw, Scott Thiss and James Van Houten Trustees Absent: Clarence Hightower 1. Call to Order

Chair David Olson called the meeting to order at 1:00 p.m. and reported that a quorum was present. a. Introduction of Board of Trustees Awardees for Excellence in Teaching

Chair Olson welcomed the recipients of the Board of Trustees Awards for Excellence in Teaching. The Board of Trustees bestows the award on Minnesota State Colleges and Universities system faculty to acknowledge and reward exceptional and professional accomplishment and to encourage ongoing excellence in teaching. The recipients were honored at the Board of Trustees Awards for Excellence in Teaching event on April 16 at Minneapolis Community and Technical College. Senior Vice Chancellor Linda Baer introduced Robin Fruth Dugstad, Instructor of Horticultural Technology at Rochester Community and Technical College; Suzette Overby, Instructor of Human Services, Riverland Community College; Daniel Paulnock, Instructor of Speech and Communication, Saint Paul College; and Eugenia Paulus, Instructor of Chemistry, North Hennepin Community College.

b. Presentation by the Minnesota State Colleges and Universities Foundation

Chair Olson introduced Robert Erickson, Chair, and Dr. Joan Barrett Volkmuth, President and Executive Director, of the Minnesota State Colleges and Universities Foundation. Mr. Erickson and Dr. Volkmuth facilitated a presentation on the program, Project Lead the Way. Participants in the presentation were Jim Mecklenburg, Program Director; Michael Lehn, Project Lead the Way; Tim Ciavarri, Instructor at Olson Middle School; and students from Olson Middle School; Jack Graaves, Jennifer Kalkman, Jesse Pai and Joni Wetherhead.

Chair’s Report a. Minutes of Board of Trustees Meeting of March 19, 2008

Chair Olson stated that the minutes were approved as written.

b. Minutes of Board of Trustees Special Meeting of April 16, 2008 Chair Olson stated that the minutes were approved as written.

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c. Proposed FY 2009 Board Operating Budget Treasurer Scott Thiss moved that the Board of Trustees approves the FY 2009 Board Operating Budget of $240,000. The motion carried unanimously.

d. Proposed FY 2009 Meeting Calendar Chair Olson reviewed the proposed FY 2009 meeting calendar. A discussion followed regarding the meeting agendas and time given to presentations and discussions.

Trustee Ruth Grendahl moved that the Board of Trustees approves the FY 2009 meeting calendar. The motion was seconded by Trustee Benson and carried unanimously.

e. Timeline for Election of Officers

Chair Olson reviewed the timeline for the election of officers. There was a discussion regarding past elections and what could be done to improve the election process. Chair Olson stated that he would appoint an Ad Hoc Nominating and Governance Committee.

2. Consent Agenda

a. FY 2010-2015 Capital Budget Guidelines (Second Reading) b. Hibbing Community College – Disposition of Surplus Real Property c. Metropolitan State University Facility Lease d. Northland Community and Technical College Educational Contract Trustee Dan McElroy moved approval of the Consent Agenda. Trustee Grendahl seconded and the motion carried unanimously.

4. Board Policy Decisions a. Revenue Fund Bond Sale

Trustee Thomas Renier moved that the Board of Trustees authorizes a Revenue Bond sale for no more than $43,000,000 for projects totaling about $38,000,000; and approves the Series Resolution as described in Attachment B on page 69 of the meeting materials. The sale is subject to the parameters as presented in Attachment C on page 181 of the meeting materials. The motion was seconded and carried unanimously.

b. FY 2009 Operating Budget Including Tuition and Fees Trustee Renier moved that the Board of Trustees: 1. Adopt the annual total operating budget and general fund budget for FY2009 in Tables 2 and 3 of the meeting materials. Per Board Policy 5.9, the Board will be periodically provided system wide budget updates for all funding sources on an exception reporting basis. 2. Approve the proposed tuition structure recommendations for FY2009 as detailed in Attachments 1A through 1E of the meeting materials. The percentage impact of resident tuition rates represents the maximum amount that can be applied to other tuition rates charged by the college or university not impacted by reciprocity agreements such as nonresident and off

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campus rates. The tuition increase is effective Summer Session or Fall Semester, 2008 at the discretion of the president. The chancellor is authorized to approve tuition structures for new courses or programs proposed after this date, as well as any required technical adjustments, and is requested to incorporate any approvals at the time FY2010 tuition recommendation is presented to the Board. The Board continues the policy of market-driven tuition for closed enrollment courses, customized training, non-credit instruction, continuing education, distance learning and contract postsecondary enrollment option programs. 3. Approve the increases in fee maximums for athletics and health services as detailed in Attachment 2 of the meeting materials. 4. Approve the Revenue Fund FY2009 fees for room and board and student union, wellness and parking facilities, as detailed in Attachments 3A through 3D of the meeting materials. The motion was seconded and carried unanimously.

c. 2009 Action Plan for the Minnesota State Colleges and Universities Trustee McElroy moved that the Board of Trustees approves the 2009 Action Plan for the

Minnesota State Colleges and Universities. The motion was seconded and carried unanimously.

d. Pine Technical College Mission Approval Trustee McElroy moved that the Board of Trustees approves the request by Pine Technical

College to modify its mission statement. The motion was seconded and carried unanimously. e. Approval of the Minnesota State University Association of Administrative and Service

Faculty (MSUAASF) Bargaining Agreement Trustee Grendahl moved that the Board of Trustees approves the terms of the 2007-09 labor

agreement with the Minnesota State University Association of Administrative and Service Faculty (MSUAASF), and authorizes the Chancellor to sign the agreement on behalf of the Board. The motion was seconded and carried unanimously.

5. Board Standing Committee Reports

a. Finance, Facilities and Technology Committee, Clarence Hightower, Chair

(1) Finance, Facilities and Technology Update Committee Vice Chair Renier reported that the committee heard an update from Vice Chancellor Laura King on the Finance, Facilities and Information Technology division’s.

(2) Minnesota State Colleges and Universities System and State Economic and

Demographic Outlook for FY 2010-2011 Committee Vice Chair Renier reported that the committee heard a presentation on the Minnesota State Colleges and Universities System and State Economic and Demographic Outlook for FY 2010-2011.

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The presentation provided an overview of the demographic, economic, and financial conditions which may affect Minnesota State Colleges and Universities in the coming years.

(3) FY 2010-2011 Biennial Operating Budget Planning Committee Vice Chair Renier reported that the committee heard a report on the FY 2010-2011 Biennial Operating Budget. Every other year, as part of the state’s operating budget process, the Minnesota State Colleges and Universities develops a biennial budget request. The request for the 2010-2011 biennium is due to the Governor and the legislature in the fall of this year. The report provided a brief overview of the process being used to formulate the request.

b. Diversity and Multiculturalism Committee, Duane Benson, Chair

(1) Diversity and Multiculturalism Update Committee Chair Duane Benson reported that the committee heard an update from Executive Director Whitney Harris on the activities of the Diversity and Multiculturalism division.

(2) Minnesota State TRiO Association

Committee Chair Benson reported that the committee heard an update on the Minnesota State TRiO Association. TRiO programs, not an acronym, have operated in the Minnesota State Colleges and Universitie’s system since 1996. Currently, 48 of the state’s 68 projects are in the system. These projects receive over $15 million in federal funding and serve over 12,600 students each year. The programs are designed to provide services that low-income and first generation youth and adults need in order to enroll and succeed in postsecondary education.

(3) Preliminary Report on Inventory of Recruitment and Retention Programs

Committee Chair Benson reported that the committee heard a report on Inventory of Recruitment and Retention Programs. Colleges and universities submitted their diversity plans to the Office of the Chancellor’s Diversity and Multiculturalism division in October 2007. The Diversity and Multiculturalism division has created three pilot programs to increase recruitment and retention. An update on the pilot programs will be given at the July meeting.

c. Academic and Student Affairs Committee, Dan McElroy, Chair

(1) Academic and Student Affairs Update Committee Chair Dan McElroy reported that the committee heard an update from Senior Vice Chancellor Linda Baer on the activities of the Academic and Student Affairs division.

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(2) Proposed Policy 3.35 Credit for Prior Learning, Repeal of Carry Forward of Policy CC III.02.01 Awarding Credits (First Reading) Committee Chair McElroy reported that the committee heard a report on Proposed Policy 3.35 Credit for Prior Learning, Repeal of Carry Forward of Policy CC III 02.01 Awarding Credits. The proposed policy will require system colleges and universities to provide students with opportunities to demonstrate college and university-level learning gained in non-credit or experiential settings and to establish consistent practices among all system colleges and universities for evaluating and granting undergraduate credit for such learning.

(3) Proposed Amendment to Policy 2.2 State Residency Requirements (First Reading)

Committee Chair McElroy reported that the committee heard a report on Proposed Amendment to Policy 2.2 State Residency Requirements. The proposed amendment establishes a limited set of criteria for classification as a state resident. Conditions under which non-residents may pay the resident tuition rate also are established. The amendment would determine if residency status can be made without reference to external documents.

(4) Metropolitan Area Planning Update Committee Chair McElroy reported that the committee heard a presentation on

Metropolitan Area Planning. The presentation provided an update on the growing needs for education and training in the area. The studies indicate a significant shortage of baccalaureate and graduate degrees. A customer satisfaction survey indicated the desire for the baccalaureate offerings at the community colleges.

(5) Centers of Excellence: Wilder Research Program Evaluation Committee Chair McElroy reported that due to time constraints the Centers of

Excellence presentation on the Wilder Research Program Evaluation was deferred to the July meeting.

(6) Campus Strategic Profile: Century College Committee Chair McElroy reported that the committee heard a profile of Century

College. The profile highlighted a program entitled “GPS: Goals plus plans equals success.” Committee Chair McElroy commented that the college is well connected with the community and that there is more unduplicated head count in non-credit courses versus credit courses.

d. Human Resources Committee, Ruth Grendahl, Chair

(1) Human Resources Update

Committee Chair Grendahl reported that the committee heard an update from Vice Chancellor Bill Tschida on the Human Resources division. Committee Chair Grendahl reviewed the Chancellor Assessment process and noted that the Board will meet in a closed session on the Chancellor’s evaluation on June 18.

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Committee Chair Grendahl also reported that there will be a special Board meeting in July or August to appoint a president of Hennepin Technical College.

e. Advancement Committee, Christine Rice, Chair

(1) Advancement Update Committee Chair Christine Rice reported that the committee heard an update on the Public Affairs division from Vice Chancellor Linda Kohl.

(2) State Legislative Update Committee Chair Rice reported that the committee heard an update on the FY 2008 legislative issues. Committee Chair Rice reported that legislation was passed for a labor representative to be appointed to the Board of Trustees.

(3) Minnesota State Colleges and Universities Foundation Contract Committee Chair Rice reported that the committee heard a report on the Minnesota State Colleges and Universities Foundation contract. The contract is for one year with deliverables due within the first six months.

6. Joint Council of Student Associations a. Minnesota State College Student Association (MSCSA)

Mr. Scott Formo, President, provided a written report to the Board of Trustees. b. Minnesota State University Student Association (MSUSA)

Ms. Kara Brockett, State Chair, addressed the Board of Trustees. 7. Minnesota State Colleges and Universities’ Bargaining Units

a. American Federation of State, County and Municipal Employees (AFSCME) Ms. Karen Foreman, President (AFSCME Council 6), addressed the Board of Trustees.

b. Administrative and Service Faculty (ASF) Mr. Shahzad Ahmad, President, addressed the Board of Trustees. c. Inter Faculty Organization (IFO)

Dr. Nancy Johnson Black, President, addressed the Board of Trustees. 8. Trustees Reports

Trustees who reported their participation at the spring commencements were Trustee Anderson in Century College and South Central College commencements; Trustee Benson in Rochester Community and Technical College’s commencement and Trustee Shaw in Minneapolis Community and Technical College’s commencement. Trustee Dickson reported that she participated in a grant signing at Saint Paul College.

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Trustee McElroy noted that he provided the Board and staff with maps from the U.S. Census Bureau that show educational attainment and median household income by county in Minnesota.

9. Chancellor’s Comments

Chancellor McCormick thanked the Board, the presidents and staff members for their efforts that brought a successful outcome of the capital budget which is the largest in the history of the system and with the lowest tuition increase in a decade.

Chancellor McCormick stated that the system met the challenge from the Governor and the Legislature to gain a one percent increase in the biennial budget, about $13 million which was contingent upon meeting at least three of five goals. Chancellor McCormick reported that the system achieved all five of the goals. Chancellor McCormick noted that he will provide the Board with a detailed report of the system’s achievements. Chancellor McCormick stated that the accountability dashboard will be launched with a press conference on June 17. The dashboard has the potential to become a national model for higher education organizations.

10. Requests by Individuals to Address the Board There were no requests to address the Board.

11. Other Business Chair Olson requested that detailed updates on each of the four goals be provided by the assigned committee chairs at the July meeting. Chair Olson announced an Ad Hoc Nominating and Governance Committee. Trustee Rice will chair the committee; the other members are Trustees Benson and McElroy.

12. Adjournment

Chair Olson adjourned the meeting at 3:27 p.m. Ingeborg K. Chapin Secretary to the Board

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BOARD OF TRUSTEES

MINNESOTA STATE COLLEGES AND UNIVERSITIES

BOARD ACTION

ELECTION OF OFFICERS

Board Policy 1A. 2, Part 4. Officers of the Board Subpart D. Election of Officers. The election of officers shall be conducted at the annual meeting of the board. Nominations can be made from the floor at the annual meeting. Background The annual meeting of the Board of Trustees is on July 16, 2008. At the Board meeting on May 21, 2008, Board Chair David Olson appointed an Ad Hoc Nominating and Governance chaired by Trustee Christine Rice. The members are Trustees Duane Benson and Daniel McElroy. On May 27, 2008, Trustee Rice informed the Board in writing that the current officers each expressed an interest in serving as officers for another year. The officers are eligible to serve for one more year as Board Policy 1A.2, Part 4, subpart B. Terms of Office, states that, “No trustee shall hold the same office for more than two consecutive terms.” The candidates are:

Chair: David C. Olson

Vice Chair: Ruth Grendahl Treasurer: Scott Thiss

Date of Board Action: July 16, 2008 Effective Date: August 1, 2008

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BOARD OF TRUSTEES MINNESOTA STATE COLLEGES AND UNIVERSITIES

BOARD ACTION

REVISED FY 2009 MEETING CALENDAR

BACKGROUND The Board of Trustees approved the FY 2009 meeting calendar in May. Since then, orientation dates were added and the dates for the October retreat were changed from October 15-16 to October 22-23. The calendar is subject to change throughout the year as public hearings and special meetings are scheduled. Changes to the calendar will be publicly noticed.

1 2 3 4 5 6 7 8 9

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34

July 14, 2008: Tentative Orientation for New Members July 15 and 16, 2008: Committee and Annual Board Meetings July 30: Orientation for New Trustees July 30: Special Board Meeting September 16 and 17, 2008: Committee and Board Meetings October 22-23, 2008: Fall Retreat, Bemidji State University October TBD 2008: Finance, Facilities and Technology Committee Public Hearing on the FY 2010-2011 Biennial Operating Budget. First reading will be in September and 2nd reading and action in November. November 18 and 19, 2008: Committee and Board Meetings January 20 and 21, 2009: Committee and Board Meetings – Metro Area Campus Location February 2009: Finance, Facilities and Technology Committee – Public Hearing on the FY 2010-2015 Capital Budget. Date and location to be determined. Another hearing may be scheduled in March. March 17 and 18, 2009: Committee and Board Meetings April 22, 2009: Board of Trustees Awards for Excellence in Teaching May 19 and 20, 2009: Committee and Board Meetings June TBD 2009: Public Hearing, Finance, Facilities and Technology Committee on the FY 2010- 2011 Operating Budget Including Tuition and Fees (Date to be determined but after legislative session ends). June TBD 2009: Board of Trustees Meeting on Chancellor Assessment July 21 and 22, 2009: Committee and Annual Board Meetings

RECOMMENDED BOARD ACTION The Board of Trustees approves the revised FY 2009 meeting calendar. Date Approved by the Board of Trustees: May 21, 2008 Date Presented to the Board of Trustees: July 16, 2008 Effective Date: July 16, 2008

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BOARD OF TRUSTEES MINNESOTA STATE COLLEGES AND UNIVERSITIES

BOARD ACTION

Emeriti Recognition

BACKGROUND 1 Chancellor McCormick will present his recommendation for conferring presidential 2 emeritus status on the following individuals: Roland E. Barden, retiring president of 3 Minnesota State University Moorhead; Roy H. Saigo, prior president of St. Cloud State 4 University and retiring from Minnesota State Colleges and Universities; Joseph M. 5 Sertich, retiring president of the Northeast Higher Education District; and Ronald A. 6 Wood, retiring president of Minnesota West Community and Technical College. 7 8 RECOMMENDED COMMITTEE ACTION 9

The Human Resources Policy Committee recommends that the Board of Trustees adopts 10 the following motion. 11 12 RECOMMENDED MOTION 13

Upon the recommendation of Chancellor James H. McCormick, the Board of Trustees 14 hereby confers emeritus status upon Roland E. Barden, Roy H. Saigo, Joseph M. Sertich 15 and Ronald A. Wood, effective upon their retirements. 16

17 18 19 Date presented to the Board: July 16, 2008 20 Date of Board Action: July 16, 2008 21 Date of Approval: July 16, 2008 22 Date of Implementation: July 16, 2008 23

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