MINUTES OF THE MEETING OF THE STATE BOARD OF TRUSTEES



MINUTES OF THE MEETING OF THE STATE BOARD OF TRUSTEES

IVY TECH COMMUNITY COLLEGE OF INDIANA

EVANSVILLE, INDIANA

APRIL 10, 2008

Chairman Jesse R. Brand called the April 10, 2008, regular meeting of the State Board of Trustees to order at 9:00 a.m. in Room 107 at the Ivy Tech Community College – Evansville Campus, 3501 First Avenue, Evansville, Indiana.

A. ROLL CALL:

Secretary Martha E. Rivas-Ramos called the roll and the presence of a quorum was announced. The following State Trustees were present:

Mr. Jesse R. Brand, Chair

Mr. Norman E. “Ned” Pfau, Jr., Vice Chair

Ms. Martha E. Rivas-Ramos, Secretary

Ms. Leigh A. Duckwall (via phone)

Mr. Lee J. Marchant

Mr. Robert L. McCreary

Mr. Mark J. Neff

Mr. Steve Schreckengast

Mrs. Anne K. Shane

Mr. V. Bruce Walkup

Ms. Linda E. White

Ms. Kaye H. Whitehead

Trustees unable to attend the meeting:

Ms. Linda Buskirk

Mr. David M. Findlay

B. NOTICES OF MEETINGS MAILED AND POSTED:

Secretary Martha E. Rivas-Ramos confirmed that notices of the April 10, 2008, regular meeting were properly mailed and posted.

C. APPROVAL OF BOARD MINUTES:

Chairman Jesse R. Brand directed the trustees’ attention to the minutes of the February 14, 2008, regular board meeting. Trustee Anne K. Shane made the motion to approve the minutes of the February 14, 2008, regular meeting as submitted. Trustee V. Bruce Walkup seconded the motion, and the motion was carried unanimously.

D. COMMITTEE REPORTS:

Item 1 Reporting for the Executive Committee, Chairman Brand reported that no Executive Committee meeting has been held since the Board last met.

Item 2 Chairman Brand called upon Trustee Norman E. Pfau, Jr. for the Budget and Finance Committee Report. Trustee Pfau reminded the trustees of the detailed discussions of the following resolutions during the committee meetings the previous afternoon and moved for the approval of:

Resolution Number 2008-10, Approval of a New Tuition Rate for the Midwest Student Exchange Program.

Trustee Walkup seconded the motion to approve Resolution Number 2008-10, and the motion carried unanimously.

Resolution Number 2008-11, Approval of College 2008-09 Employee Health and Dental Insurance Programs.

Trustee Schreckengast seconded the motion to approve Resolution Number 2008-11, and the motion carried unanimously.

Resolution Number 2008-12, Approval of College 2008-09 Property & Casualty Insurance Programs.

Trustee Schreckengast seconded the motion to approve Resolution Number 2008-12, and the motion carried unanimously.

Item 3 Chairman Brand called on Trustee Lee J. Marchant for the Planning and Education Committee Report. Trustee Marchant moved for approval Resolution Number 2008-13, Approval of New Programs, and Trustee Robert L. McCreary seconded the motion. The motion carried unanimously.

Item 4 Chairman Brand called on Trustee V. Bruce Walkup to give the Buildings, Grounds, and Capital Committee Report.

Trustee Walkup said that Resolution Number 2008-14, Approval of the Priority Ranking Measures for Capital Projects for the 2009-11 and Subsequent Biennia and Resolution Number 2008-15, Approval of the Legislative Request for Capital Funds for the 2009-11 Biennium and the Ten-Year Capital Improvement Plan for 2009-19 were both withdrawn.

At this time during the regular meeting, Chairman Brand called a public hearing for the consideration and awarding of a Public Works demolition contract for the Fort Wayne New Construction and Renovation Project in Fort Wayne. Trustee Walkup moved that Resolution Number 2008-16 for the awarding of a demolition contract for the Fort Wayne New Construction and Renovation Project in Fort Wayne be approved. Trustee Kaye H. Whitehead seconded the motion. Chairman Brand asked if anyone in attendance had anything to present to the Board regarding this Resolution, and no one came forward. Chairman Brand called for a vote to approve Resolution Number 2008-16, Approval of a Demolition Contract for the Fort Wayne New Construction and Renovation Project, Region 3/Northeast, and the motion carried unanimously.

Next, Trustee Walkup moved that Resolution Number 2008-17 for the awarding of the Logansport New Construction Project Bid Package One Contracts in Logansport be approved. Trustee Schreckengast seconded the motion. Chairman Brand asked if anyone in attendance had anything to present to the Board regarding this Resolution, and no one came forward. Chairman Brand called for a vote to approve Resolution Number 2008-17, Approval of Logansport New Construction Project Bid Package One Contracts, Region 5/Kokomo, and the motion carried unanimously.

Finally, Trustee Walkup moved that Resolution Number 2008-18 for the awarding of the Greencastle New Construction Project Bid Package One Contracts in Greencastle be approved. Trustee Whitehead seconded the motion. Chairman Brand asked if anyone in attendance had anything to present to the Board regarding this Resolution, and no one came forward. Chairman Brand called for a vote to approve Resolution Number 2008-18, Approval of Greencastle New Construction Project Bid Package One Contracts, Region 7/Wabash Valley, and the motion carried unanimously.

Item 6 Chairman Brand called upon Trustee Mark J. Neff to give the Audit Committee Report. Trustee Neff reported that there were no action items to bring before the Board. He reported that the Indiana State Board of Accounts recently issued a federal OMD 8-133-1 report and the College received an unqualified opinion. There were, however, five audit findings presented in the report. Two of the findings related to issues surrounding the financial statements, and those have been addressed. The remaining three findings were related to student financial aid. This topic was thoroughly discussed in the Audit Committee meeting, and will be revisited again at the June meeting. The proposed budget for the Internal Audit department was discussed, as were various regional audit reports. Trustee Neff said that the Board could expect the audit schedule at the June meeting.

Item 7 Chairman Brand called upon Trustee Linda E. White for a report on the activities of the planning committee. Trustee White said that the committee had a recommendation that the president should be responsible for the hiring and termination of chancellors, provided he seek input from the affected Regional Board of Trustees before taking such action. Currently, the Ivy Tech statute and State Trustee By-laws are silent on the termination question, so this change will provide clarity to that issue. Trustee White said that she would enlist the help of the Workforce and Economic Development Committee to help define the roles of regional trustees, and whether there should be term limits for regional trustees. The Planning Committee is also working on the strategic planning process. With regards to regional trustees, President Snyder added that the College values the regional boards’ involvement in the local communities. The Planning Committee has asked the College leadership to better define the regional trustee’s role so better consistency statewide can be established. President Snyder said that he expects a template to be brought to the Board on how we engage ourselves in the communities, and then make necessary changes in term limits and community involvement.

Item 8 Chairman Brand called upon Trustee Anne K. Shane for a report on the activities of the Workforce and Economic Development Committee. Trustee Shane said that the committee had its first meeting yesterday. Trustees Schreckengast, Buskirk, Whitehead, and McCreary are on this committee. They talked about why the committee was formed and how they can elevate workforce and economic development as a Board. The committee reviewed the strategic plan and staffing within the Workforce and Development Department in the College. They also discussed non-credit offerings that are not reimbursed by the state—which will become part of the legislative agenda. The committee asked that, at all future meetings, local WED staff report to the committee about their activities unique to their campuses and communities. Vice President for Marketing and Communications Jeff Fanter will report on the WED marketing campaign that he has initiated and how we are using technology to help facilitate the work of workforce development within the College.

Chairman Brand thanked all of the committee chairs and committee members for all of their work and service to the College.

E. TREASURER’S REPORT:

Chairman Brand called on Bob Holmes, Vice President for Finance and Treasurer, for the Treasurer’s Report.

• Treasurer Bob Holmes said that three quarters of the 2007-08 fiscal year have been completed. Fall full-time equivalent (FTE) enrollment grew by nearly 9 percent, and estimates for Spring show a 7 percent increase. This will result in another record full-time equivalent enrollment totaling approximately 49,000 FTE students. Revenues have grown consistently with the increase in enrollment: student fees have increased by $18 million compared to last year. This growth in student fees is important as we prepare to go to the bond markets to finance our new construction projects in Fort Wayne, Logansport, and Greencastle. While the state provides debt service in the form of fee replacement appropriations, our capacity and bond coverage are actually a function of total student fees. Thus the growth in student fee revenue will support the additional debt authorized in last year’s state biennial budget bill. Appropriations continue to track the 6 percent increase approved by the General Assembly for 2007-08. Also, the College received repayment of just over $3 million that the state previously withheld in 2001-02 during the last economic downturn. We have now received repayment of approximately $7.7 million of the $10.7 million total that was withheld. We are scheduled to receive the final repayment in 2008-09. Miscellaneous and other revenues increased significantly, primarily as a result of strong investment earnings. About half of our investment portfolio is locked into maturities between one to five years, and they are earning rates significantly above current short-term rates. Revenues have grown by about $26 million compared to last year. Total expenses are up about $24 million compared to last year, so we still have a positive differential. Compensation costs are up $15 million from last year due to the 3.5 and 4.5 percent salary pools for staff and faculty, respectively, and the additional faculty and staff we have added to serve enrollment. We added about 60 full-time faculty positions last year. Other expenses including supplies, marketing, utilities, consulting, and capital costs, are up between $8 and $9 million. As we reach the two thirds mark of the Banner software implementation project, we are still on target to stay within the $34 million that was budgeted for that project. All costs have been paid for with current funds or previous savings. No bonds or other debt have been issued for this project. Vice President Holmes called for questions, and there were none. Trustee Pfau moved that the Treasurer’s Report be approved. Trustee Shane seconded the motion, and the motion carried unanimously.

D. STATE OF THE COLLEGE:

Chairman Brand called on President Thomas J. Snyder for the President’s Report.

• President Snyder announced that the Board would hear reports from Chancellors Chesterfield, Shourds, and Schenk about their respective regions, Muncie, Sellersburg, and Evansville. He also said that Vice President Joyce Rogers would provide the engagement report on Development, and Executive Director for Institutional Research Karen Stanley would provide an engagement report on Institutional Research.

All of these reports were provided for information only; no Board action was required.

(Narratives and PowerPoint presentations were previously distributed to the Board and are on file with Minute Material.)

• President Snyder announced that representatives from Indiana’s Department of Workforce Development were in town to co-host an event aimed at key business leaders in Evansville to talk about workforce development. President Snyder called on Susan Brooks for further introductions of the guests. Senior Vice President Brooks said that we are pleased to have two partners in our “Shifting Gears Initiative” with us here today. The trustees were reminded that the College received an important grant from the Joyce Foundation to focus on retraining adults. Members of the Joyce Policy Group include Ivy Tech, the Indiana Chamber of Commerce, Indiana Department of Workforce Development, Indiana Family and Social Services Administration, Indiana Department of Education, business partners from around the state. The College is now basing much of its Strategic Plan and funding requests on this report. We are also working with business leaders in several communities throughout the state to host summits for local business leaders, and one such summit will be held here in Evansville following the Board meeting later today. The goal of the summits is to find out how to get the best trained workers into their “pipeline of employment.” Senior Vice President Brooks introduced Mark Lawrance, who has been with the Chamber for over eight years. Mr. Lawrance leads the Chamber’s Foundation, and he is involved in the economic development and lobbying for the state. Teresa Voors is the Commissioner for the Department of Workforce Development and has been with the Department for over three years. President Snyder had the trustees introduce themselves, and asked Mr. Lawrance and Ms. Voors for remarks. Mr. Lawrance explained that the Foundation is responsible for research on various economic development issues. Back in early 2000, they had received a grant from the Lilly Endowment and tried to determine what to do with some of the funds that were leftover. The question of how to improve Indiana’s workforce kept coming up, so they commissioned a study in 2004 to help understand Indiana’s workforce basic skills challenge. This study reported that one out of every three workers in Indiana had skills below the level of what was needed for the 21st Century economy. When Governor Daniels was elected, he and members of his staff used the results of that report as guidelines for how to improve Indiana’s workforce. Lilly Endowment funded a Chamber initiative called “Ready Indiana” that is helping employers and businesses understand where to go within this aggregated system. The Joyce Foundation’s initiative, “Shifting Gears,” was initiated to seek from several Midwestern states on what to do with underprepared workers. Indiana was one of three states funded with an implementation grant of $1 million. The Chamber is a sub-grantee of Ivy Tech, and they have worked extensively with Becky Nickoli who has done a wonderful job of implementing this grant and convening meetings of the Joyce Group. Several groups, including the Commission for Higher Education and Department of Education, are involved in addressing issues facing adults in need of services. This report is the first of its kind and it has highlighted several areas that need to be addressed in Indiana. He expects much progress will be made, and he appreciates the leadership role that Ivy Tech has made in this initiative.

Ms. Voors said that she has been with the Department of Workforce Development (DWD) for six years, and they used the 2004 Chamber report as a guide to determine where workforce development in Indiana should be heading. This report revealed that DWD was serving a very small portion of the workers who need their services. Of the approximately 3.2 million workers in Indiana, approximately one million do not have the workforce skills to meet the 21st Century skills. The DWD is implementing a new strategy of serving thousands of people instead of hundreds, through restructuring their Work One centers. She noted the collaboration between all of these key organizations and said this will benefit all of Indiana’s workforce.

• President Snyder handed out the 2008 commencement schedule and invited all state trustees to attend ceremonies as their schedules permit. Chairman Brand added that attending the ceremonies is an exciting and rewarding experience, and he encouraged the trustees to attend.

Chairman Brand also thanked Ms. Voors and Mr. Lawrance for addressing the trustees. He said that this is a crucial initiative that will help improve the quality of life for every Hoosier, and he is pleased that Ivy Tech is a major partner in this initiative.

G. OLD BUSINESS:

Chairman Brand called for old business, and there was none.

H. NEW BUSINESS:

Chairman Brand called for new business.

• Chairman Brand thanked the staff at Evansville for being gracious hosts for these meetings, and he thanked all members of the College staff who attended the meetings and for the opportunity to socialize. He thanked the trustees for their participation in the meetings and noted that, even though it is sometimes challenging to get to each meeting location, it is worthwhile because the meetings are rewarding. He reminded everyone that we would be in the Gary region for our next meeting in June.

I. ADJOURNMENT:

There being no further business to come before the Board, Chairman Brand called for a motion to adjourn the meeting. Trustee Schreckengast made the motion to adjourn, and Trustee Shane seconded the motion. The motion carried unanimously.

STATE TRUSTEES

IVY TECH COMMUNITY COLLEGE

____________________________________

Jesse R. Brand, Chair

____________________________________

Martha E. Rivas-Ramos, Secretary

Dated April 10, 2008

Prepared by Tina S. Phelps, Recording Secretary

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