NORTHWESTERN MICHIGAN COLLEGE BOARD OF TRUSTEES

. MONDAY, OCTOBER 26, 2009, OLESON CENTER

CALL TO ORDER- Vice Chair Bob Brick called the meeting to order at 6:30 p.m.

ROLLCALL Trustees present: Douglas Bishop, Robert Brick, K. Ross Childs (arrived at 6:35), Cheryl Gore

Follette, Walter "Jay" Hooper, William Myers, Susan Sheldon Trustees absent: Also present:

none Alex Berman, Jack Berman, Alexander Brand, Jacob Burgess, Holly Charon, Glen Chown, William Chown, Ben Cockfield, Aaron Cook, Marguerite Cotto, Lisa Danto, Chad Farrell, Kathy Farrell, Kathleen Guy, Julie Hansen, Mark Holley, Colin Huls, Shaun Huls, Renee Jacobson, Cathy Jones, Christine Keenan, Justin Mattis, Anne Monroe, Craig Mulder, Tim Nelson, Paul Perry, Alycia Rhein, Karen Sabin, Michael Siciliano, Stephen Siciliano, Terry Sievert, Cheryl Sullivan, Mike Surgalski, Anne Swaney, John Tanner, Katie Thornton, Vicki VanDenBerg, Kennard Weaver, Bonnie Willings, Chris Wilson

APPROVAL OF AGENDA- On a motion by Cheryl Follette, seconded by Bill Myers, the agenda was approved.

REPORTS

Audit Report - Vicki VanDenBerg introduced Katie Thornton and Holly Charon, all of Plante and Moran. Vicki thanked Cathy Jones and her staff for their assistance throughout the process. Vicki reviewed financial highlights of the audit and entertained questions from trustees.

Financial Report - Chair Ross Childs asked if trustees had any questions on the financial report. There were none.

Foundation Report- Chair Ross Childs asked if trustees had any questions about the Foundation Report. There were none. He noted that the annual campaign kicked off one week ago.

Legislative Issues Report- There were no questions on the Legislative Issues report. President Nelson noted he would discuss some of the legislative issues in his President's Update.

UPDATES

Board Chair Update- Chair Ross Childs said he, Susan Sheldon and Doug Bishop attended the ACCT conference recently. They attended several interesting sessions and will share what they learned at an upcoming study session. Ross Childs also reported he had the honor of representing the Board yesterday at the memorial service for Dr. Warren Cline. He said Dr. Cline's vision, and that of other college founders, was amazing. The credit that was given to Dr. Cline was the actual physical plant. The way the campus was structured was a high priority for him.

President's Update- President Nelson:

• thanked Cathy Jones and her staff for their good work with the audit, which was finished in record time;

Northwestern Michigan College October 26, 2009

• acknowledged Stephen Siciliano and his Boy Scout troop, which was attending the meeting while its members are working on their Community badges. President Nelson noted that both he and Stephen Siciliano are Eagle Scouts;

• reported that MCCA has taken a position being opposed to HB 5474, the bill that Rep. Wayne Schmidt introduced making colleges and universities unable to have regulations related to concealed weapons that are more stringent than the state's. Nelson said he is more concerned about Senate Bill 747, introduced by Sen. Richardville, that would allow concealed weapons to be carried anywhere on campus;

• reported that the first hearing took place last Thursday about community college baccalaureates in maritime, nursing, culinary and cement technology. There is another opportunity for testimony set for next week Thursday; someone from NMC will testify. He shared that U ofM is discontinuing providing ADN degrees in the non-Ann Arbor area, and Wayne State is only going to do ADN and MSN. Munson is supportive ofNMC offering the ADN and will write a letter of support to the legislature. Community colleges hope to get enough votes to move the bill to the House floor, then on to Senate;

• reported that this fall NMC awarded Michigan Promise grants. A budget bill has been submitted that removes the grant. The Governor said she will veto the bill if it is passed. If the grants go away, NMC will work with students' financial aid awards and payment plans. This year the value to NMC of Promise Grants is $382,000;

• said that we are getting ready to submit our Systems Portfolio to the Higher Learning Commission by October 30;

• reported that he and Kathleen Guy are going to Washington D.C. to seek special funding for Water Studies Institute. Tim will send a copy of his request to trustees prior to leaving on the trip. We are asking that an investment be made in community colleges like the investment in infrastructure;

• said that a forum is taking place regarding Charter Cable's intention to move public television stations to higher numbers. It appears there is little we can do other than take a public position against it. We expect to receive a letter by November 1st that will tell us that Channel2 will move to 97 and Channel 13 to 96 as of December 1, then move to the 900s at a later date. The challenge is that channels in the 90s have less bandwidth, worse reception capacity, and once they move to digital 900s, only cable subscribers will be able to access these public television channels.

DISCUSSION ITEMS

Budgeting Philosophy- President Nelson noted that the budget development timeline and resource guidelines were provided in the board materials. By design, for several years we have worked to be more dependent on tuition and fees so as to be less dependent on State revenue. All three funding streams are under downward pressure. Cost streams are also under pressure to increase; how much will depend on assumptions we make. Planning and Budget Council's budgeting target is to expect a 20% reduction in state revenue and flat position in funding from property tax. We expect enrollment to drop if we do nothing different (down 2-4%). Nelson noted that historically colleges were set up to expect students to pay for certain parts of their education and the State to pay for others, but the State isn't subsidizing these costs any longer. During upcoming meetings Nelson and Cathy Jones will get a sense of what legislators are predicting in terms of state support for higher education. President Nelson asked, if there is a growing structural deficit, shall we solve it by cost cutting alone, revenue enhancement alone, or a combination of the two? The biggest

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unknown is how big our State cuts will be. Nelson said we are moving from programs based on access to programs based on success. Students do not pay for tutoring, computer labs, etc., and we need to ask ourselves who will pay for them. Nelson is most concerned about out-years rather than next year. Trustees need to address if they are interested in a Headlee override. Bill Myers said he would like to see a hybrid model that includes new revenue streams. Trustees said they need a retreat to deal with these questions. President Nelson noted we are in a better position than many other organizations to deal with these changes.

Tobacco Free NMC- Cheryl Follette said the Board Policy Committee met per the board's request, and trustees were provided with all materials given to the committee. Doug Bishop said the committee brought the policy as an example for discussion. He feels it is important for the board to spend more time on it, perhaps in a study session and wants to avoid rushing to judgment. Trustees discussed enforcement ofthe current smoking policy. President Nelson said there is no question the "no smoking in buildings" part is being enforced, but it is more difficult to enforce the 15-foot rule, and everyone has to pass through the smoking zone to enter the building. Cheryl Follette said when you have a tobacco-free policy, it is much easier to enforce.

It was noted that as a learning institution, we should model appropriate behavior and put systems in place to help those who wish to quit. Cheryl said a "yes" vote would mean trustees are serious about the topic, then they could decide how far they wish to take responsibility for implementation strategies, e.g. if we want to provide a smoking area somewhere area on campus. Doug Bishop said he prefers to have a "mini-retreat" on this subject. Bill Myers said he sees moving forward. Ross Childs said the Policy Committee might want to meet again before the study session, which is scheduled for November 23 at 4:00p.m.

PUBLIC INPUT -Public input was received from the following individuals:

Lisa Danto, who spoke in support of a ban on tobacco on NMC campuses. She noted that it is a large source of litter, costly and unsightly. She received a complaint from someone who attended the Bioneers conference who had issues going through smokers in and out of Scholars Hall.

Bonnie Willings, who spoke in support of a ban on tobacco on NMC campuses. Alpena Community College recently went smoke-free, and she said they have had no problems with enforcement.

Alexander Brand, who thinks we can find a policy that isolates smokers more effectively. Students aren't really aware of the current policy. He noted other potentially dangerous items that are not being addressed in a similar fashion, such as unhealthy foods and vehicle emissions.

CONSENT AGENDA - On a motion by Doug Bishop, seconded by Bill Myers, the following items were approved: Minutes of the September 28, 2009 study session, September 28, 2009 regular meeting and October 14, 2009 special meeting; Contributions for September 2009; Grants Notifications for quarter ending September 30, 2009; and Summary Report for General Fund Accounts as of September 30, 2009.

ACTION ITEMS

Tobacco Free Policy- Bill Myers made a motion to approve Policy D-500.02, Tobacco Free NMC Policy, on a first-reading basis. Cheryl Follette seconded the motion. Trustees noted that if the policy is approved, it will be with the understanding that trustees will have an opportunity to look at the implementation strategies prior to a second reading. Cheryl Follette offered an amendment to

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the motion that Policy D-500.02, Tobacco Free NMC Policy, be adopted on a first reading basis, with the addition of implementation strategies to be utilized in a second reading. Bill Myers accepted the amendment. Jay asked to have a separate study session on the policy. Bill Myers noted that normally the board works at a high-level policy, leaving strategy to the administration. Chair Ross Childs said a study session will be scheduled before next board meeting. Doug Bishop asked the Tobacco Free Committee to try to find information on the impact of second-hand smoke in an outdoor situation. Motion carried unanimously.

Acceptance of NMC Audit- Doug Bishop made a motion, seconded by Jay Hooper, to accept the financial audit for Northwestern Michigan College for the fiscal year ending June 30, 2009, as presented. Motion carried.

Acceptance ofNMC Foundation Audit- Cheryl Follette moved to accept the financial audit for the NMC Foundation for fiscal year ending June 30, 2009, as presented. Seconded by Jay Hooper, the motion carried.

FYll Capital Outlay Plan- Jay Hooper made a motion to approve the Fiscal Year 2011 Capital Outlay Plan for submittal to the Michigan Office of the State Budget, as presented. Seconded by Bob Brick, the motion carried.

Tractor Purchase- On a motion by Cheryl Follette, seconded by Jay Hooper, the board approved the purchase of a Kubota L5240 tractor and attachments from Ginop Sales of Williamsburg, Michigan, in the amount of$39,695 to be funded from the General Fund per the FY10 COAT allocation.

Aircraft Fleet Adjustment - Bill Myers made a motion, seconded by Doug Bishop, to approve the sale of the Retractable Gear (RG) aircraft (N9365D) through the open bid process, and the purchase of a single aircraft to provide the Aerobatic and Tail Wheel endorsements, for a purchase price not to exceed $110,000. The purchase price would come from the following funds: $28,100 received from the sale of an aircraft (N7305L) in August 2009; $50,000 from the sale ofN9365D identified above; $31,900 from the aviation reserve fund. Motion carried.

ADJOURNMENT- The meeting adjourned at 8:04p.m.

Recorded by Karen Sabin

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