I. Call to Order
Chairperson Engel called the meeting of the Board of Regents to order at 3:38 p.m. in the Kansas Room of the Memorial Union.
II. Roll Call
Present were: Mr. Blair, Mr. Dick, Mr. Engel, Mr. Etzel, Mr. Felker, Mrs. Lee and *Mr. Roth.
* Participated via telephone conference call.
III. Approval of Minutes of December 11, 2002 meeting as mailed.
It was moved and seconded to approve the Minutes of the December 11, 2002 meeting as mailed. Motion passed unanimously.
IV. Officer Reports
A. Chair's Report
Chairperson Engel reported he had participated in a meeting of the Kansas Board of Regents Performance Agreement Task Force comprised of approximately 12 people who will be working together to develop performance agreements to implement that part of Senate Bill 347 of the last Legislative Session. He reported the Kansas Board of Regents has determined the system goals adopted January 2001 are no longer front and center and it will be developing new goals. He said the members of the task force were provided a list of 12 goals and they have until Wednesday, January 22, 2003 to respond with any changes, combinations of any goals, or any rephrasing. He circulated the 12 goals and asked that members of the Board provide their comments on them to either President Farley or Vice President for Academic Affairs, Dr. Ron Wasserstein.
Mrs. Parks arrived at 3:41 p.m.
B. Committee Report(s)
1. Budget/Finance Committee
a. 2001-2002 Audit Report - Berberich Trahan & Co., P.A.
b. KTWU Audit Report for the Year Ended June 30, 2002
Regent Etzel, Chair of the Budget/Finance Committee, reported at its last meeting the Budget/Finance Committee discussed primarily the two audit reports prepared by Berberich Trahan & Co., P.A.: the annual audit of the University and the KTWU Audit Report for the year ending June 30, 2002. He noted Brad Koehn of Berberich Trahan was present and asked that he give the Board a brief report.
Mr. Koehn reported that generally all was fine although they did find two exceptions. One was the disbursement of financial aid early, the other had to do with a compliance issue with the Davis Bacon Act in the construction of the KTWU Tower. In response to a query from the Board, he noted issues identified in past management letters have all been resolved.
With respect to the exceptions identified, the Vice President for Administration and Treasurer noted the financial aid distribution problem was the distribution of financial aid more than ten days prior to the period specified and what had happened was that the Business Office had overridden the computer system. The system has now been changed that only Financial Aid office can put the hold date in the system and there now is no way the Business Office can override the system.
As for the compliance issue with the Davis Bacon Act, Vice President for Administration and Treasurer, Wanda Hill, said a portion of the construction costs of the new tower was provided for by a federal grant from the Department of Commerce. She noted the Davis Bacon Act essentially requires specific rates be used in construction projects involving federal funds. She said there were provisions in the RFP requiring a contractor to comply with state and federal statutes but the auditors felt the language needed to be more specific. She noted the University should have also required the contractor to provide payroll records to ensure wage rates were being appropriately paid. She said policies and procedures are being developed to ensure all persons involved in the expenditure of federal grant monies on construction projects are aware of the Davis Bacon requirement.
Budget/Finance Committee Chair Etzel indicated the Committee was satisfied and quite pleased with the report. It was moved and seconded to accept the 2001-2002 Audit Report described in agenda item IV.B.1.a. and to approve the KTWU Audit Report for the year ending June 30, 2002. Motion passed unanimously.
Regent Etzel reported the Committee also discussed briefly the development of the 2004 budget but it was unable to make much headway because of the situation of state funding and sales tax revenues.
President Farley said if one looks at the financial statements one would find the institution is in very sound financial condition as it added money to the fund balances in the last year and revenue exceeded expenditures. He said overall the financial condition of the institution is excellent. He said it is a very tenuous time now in regards to development of the budget as we don't know what the Legislature will be doing about the budget for higher education. He said he'd like to be optimistic. He noted thus far the University has had to return $500,000 to the state as a result of state budget cuts, but the University has been able to make adjustments within the existing budget framework. He noted the sales tax revenues are now just a hair below the compared estimates for the time period, about $100,000 off. He said we have yet to see what the Kansas Board of Regents will be doing about tuition for its institutions and any salary increases.
Dr. Farley noted the University has undertaken analysis of the tuition and fees of Washburn compared with the Regents institutions and nationally and this will be shared with the Finance Committee at its next meeting. He said he would not anticipate action could be taken with respect to any tuition increase for the ensuing academic year until possibly June.
2. Academic Affairs Committee
Regent Roth, Chair of the Academic Affairs Committee, reported he and Regent Parks and Chairperson Engel met to try to decide how information could be brought to the Board of Regents with respect to the academic initiatives discussed by the Deans in their report last year. He said the Committee believed the manner in which to arrive at this would be to attempt to determine what the University should be in five years. He said the process to arrive at that will be developed closely with the faculty as a series of at least five meetings involving at least 25 persons, predominantly faculty, and will be held to have a general discussion sharing of views concerning where the institution wants to be in five years. He said as part of this process there will be discussions not only of where we want to be but the cost estimations associated with that to be met either by increasing revenue or reallocation of existing resources. He said the Committee will keep everyone apprised and noted any one of the members of the Board of Regents can attend any one of these meetings. He said it's important everyone have input.
C. President's Report
President Farley said he'd like to introduce some folks and celebrate the success they've had and asked Vice President for Administration and Treasurer, Wanda Hill, to introduce them.
Vice President Hill said at the last Finance Committee she was able to report the University was technically "live" with the Human Resource payroll module. She said now we are "totally live." She said those involved wanted to thank members of the Board of Regents for their support and also provide the Board the opportunity to meet the people who have been working on this project since December of 2001. She said so far this month there have been two payrolls written, one for the wage & hour and the other for student employees. She said this is quite an accomplishment inasmuch as there have been some obstacles as: consultants have been changed three times; there was the delay of the budget process which ended up coinciding with the open enrollment of implementation of the new health plan; and, there also was a change in the Business Office administration.
She introduced Brad Merryman and Jeanne Dodge in the Payroll Department, indicating they have done an exceptional job; Linda Griffin, the "funky-tech" for the Human Resources payroll module; Rhonda Thornburgh, the "funky-tech" of the finance side; Debbie Vinning of her office; Deborah Moore, Director of Human Resources, and her staff LouAnn Olsen and Jessie Davidson; Chris Leach, the new director of finance; and Bob Stoller who is project manager for the SCT Banner project.
Ms. Hill said others not able to attend the meeting include Jamie McEwen of the Financial Aid office dealing with student pay; Donna Lacey and Donna LaLonde of the Vice President for Academic Affairs office; Willie Dunlap, Dean of the School of Applied Studies; and, Janell Harris, Assistant Financial Aid Director. She also introduced the SCT consultant, Kathy Dembroski. Ms. Dembroski reported she's been at SCT for over twenty years and been involved in implementation of the Banner product for 12 years, bringing some 45 clients on line "live." She said this has probably been the cleanest "go live" she's ever been part of and said it was rewarding for her and everybody involved in the project.
President Farley said this is quite an achievement for the University. He said a year from now we'll be celebrating the success of Dean Dickes and his staff for the implementation of the student module.
Dr. Farley reported he and Athletics Director Loren Ferré recently attended the NCAA meeting for Division II. There have been some changes in eligibility requirements for freshmen, increasing the number of core units for entering freshmen, and a change in the GPA requirements expected of NCAA student athletes. He noted the University's GPA requirements were more stringent than those articulated in the NCAA rule book.
President Farley reported there has been less than a 4% reduction in residence hall occupancy, he said it's about 3.5% or 3.6%. He said we will still have all the rooms occupied in the LLC.
He reported Jack Kilby, a nobel laureate, will be on the University's campus a week from Friday speaking with classes and being honored at a luncheon. He noted Mr. Kilby is also being honored at the Kansas Native Sons and Daughters banquet Friday evening as one of the Kansans of the year.
Dr. Farley reported both the men's and women's basketball teams are experiencing great success this season as both are presently rated 7th in the country. He noted the women are undefeated and the men had one "accident" in Florida. He said we have hopes the women will be participating in the Elite Eight tournament in St. Joseph, Missouri and the men in the Elite Eight in Lakeland, Florida come March. He said both coaches have done an outstanding job.
He also noted at a recent Chamber of Commerce event he was approached by a half dozen people reporting they are pleased with the implementation of women's soccer at Washburn and with the coach who has been hired. He said with the coach's knowledge of the area and potential players, we should have a fairly fertile recruiting period.
D. Treasurer's Report
Vice President for Administration and Treasurer, Wanda Hill, outlined the items in IV.D.1. through 4.
1. Depository Security Transactions
2. Liquidated Claims Approval - November 2002
3. Liquidated Claims Approval - December 2002
4. Public Fund Investments - December, 2002
She noted the Liquidated Claims Approval for December 2002 provided with the agenda was a placeholder. She reported while she had intended to be able to provide the Board with the detail of the report, we have learned the stock Banner program is not able to do the report as we've been doing it for the past year, it will be next month before we'll be able to have the information in that format. It was moved and seconded to accept the Treasurer's report as outlined in IV.D.1., 2. and 4. Motion passed unanimously.
5. Stadium Renovation - Progress Report
Vice President Hill noted for the stadium renovation progress report a number of people were in attendance: Gene Murray of Murray and Sons with his project managers, Mike Gibson and Rodney DeForrest. She said Steve Boyd of the architectural firm also was present along with the University's staff architect, Jeannie Robinson. Mike Gibson of Murray and Sons provided an update of the status of the stadium renovation project, outlining items in the construction project for the pavilion and the northeast and northwest entrances performed to date. He said overall if all of the component parts of the project are viewed as one overall, it is zero sum in terms of schedule as the project is pretty much on time. He said there are some weather delays for some masonry work and a delay while waiting on some delivery on structural steel, but noted while one part might be delayed a bit, that would allow the company to take on other pieces and be on time on an overall basis. He did say there have been some quality control issues on the project involving the northwest entry. He said while working with TerraCon they determined there were some changes required to be made in the contract as there was some unsuitable soil materials which were required to be hauled off. He said the soil was unstable and emitting odors and on the advice of the engineers it was determined the soil had to be replaced. Both Mr. Gibson and Mr. Boyd indicated there has been good cooperation on the project to date from all parties involved in the project.
Chairperson Engel requested the contractor and architect return at its April meeting to give an update of the progress at that time.
Chairperson Engel recognized the president of the Washburn Student Government Association, Jonathan Schmucker, who indicated the WSGA is working on the installation of a new electronic message board to replace the blue magnetic sign just outside the Memorial Union. He circulated a drawing indicating the nature of that new electronic message board.
Chairperson Engel, noting the Board had been in session for an hour, indicated it would be a good opportunity for the Board to take a short 7-10 minute break.
The Board stood in recess from 4:35 to 4:48 p.m.
V. New Business
A. Consent Agenda:
It was moved and seconded to approve agenda items A.1.a. and 2.a. of the Consent Agenda. Motion passed unanimously.
Approved by action of the Board:
a. Academic Sabbaticals 2003-2004
granting of academic sabbaticals for: Prof. Frank Chorba, Mass Media, for Spring 2004, $5,000 replacement amount; Prof. Russell Jacobs, Philosophy, for Spring 2004, $3,500 replacement amount; Asst. Prof. Reinhold Janzen, Art, for Spring 2004, $4,800 replacement amount; Prof. Mary McCoy, Biology, for Fall 2003, $6,000 replacement amount; Prof. David Pierce, School of Law, for Fall 2003, no replacement amount; Asst. Prof. Tom Schmiedeler, Political Science, for Fall 2003, $5,400 replacement amount; and Prof. Glenda Taylor, Art, for Fall 2003, $1,600 replacement amount; and,
2. Expenditures over $50,000
a. Petro Allied Health Landscape Improvement - Project No. P-0113
award of a contract to Lawrence Landscape, Inc. for $139,515 for installation of landscape plan at Petro Allied Health building.
1. b. Honorary Degree Candidates
President Farley noted the process involved in the selection of Honorary Degree recipients and then circulated the biographical sketches of the four persons who will be honored at the 2003 Commencement exercise. He said all four have graciously accepted. He noted on contacting John Kemp he learned Mr. Kemp would be the commencement speaker for the Law School that weekend.
It was moved and seconded to approve the award of Honorary Degree to: William Lyman Dibble, Doctor of Commerce; Cheryl Brown Henderson, Doctor of Humane Letters; John D. Kemp, Doctor of Law; and, Carl C. Nordstrom, Doctor of Public Service. Motion passed unanimously.
B. Action Items:
1. Completion of Design Development and Construction Document phase for the Student Recreation Center project. Authorize Gould Evans, architects, to proceed to bidding
Vice President for Administration and Treasurer, Wanda Hill, reported the plans for the new student recreation center have been reviewed by staff and the University would like now to authorize the architects to proceed to the bidding phase. She said the timeline contemplated is that the bids would go out the week of January 20 to be returned February 18. They would then be evaluated and a recommendation would go to the Board for its approval of the award at its March meeting. She said this would provide for construction to begin in April 2003 with completion in July 2004 so it could be open for the Fall 2004 semester. She said the cost estimate of the project thus far is within the approved budget.
It was moved and seconded to authorize the administration to proceed to the bidding phase for the student recreation center.
During discussion, Regent Dick indicated it was his opinion the University's description of the project should reflect internally and externally the wellness component of the building envisioned at the outset for the project.
Regent Lee inquired whether it might be possible to make the front entrance of the facility more visible. Ms. Robinson indicated the architect would be providing signage in addition to having the vegetation point to the entrance.
There was a question concerning the status of the removal of Gym South. Vice President Hill reported a contract has been awarded and part of the facility has already been taken away. She said the contract is for payment of $5,000 to Meier and Company to remove the building. In response to the RFP there were two other proposals. She noted there are some soil remediation issues as the site was previously used as a land fill. President Farley said the use of the word remediation was kind. He noted there were piers 36 foot long under the building to provide stability and that we likely will have to remove substantial amounts of soil. He said the administration will be coming back with a recommendation for funding of, and contracting for, that project.
On a vote on the motion, the motion passed unanimously.
a. Community College Transfer Policy
3. Upper Division Requirement
It was moved and seconded to approve the Community College Transfer Policy and Upper Division Requirement policies as outlined in agenda items V.B.2.a. and V.B.3. Motion passed unanimously.
As approved by the Board, item numbered 7 under "Requirements Common to All Bachelor Degrees" is amended to read "Forty-five hours of upper division (300-400 numbered) courses are required." and, the last paragraph of the University's student transfer policy is amended to read "At least 60 hours of the 124 hours required for the baccalaureate degree must be taken at a four-year college or university."
4. School of Law Student Activity Fee
It was moved and seconded to approve the increase in the School of Law student activity fee effective with the 2003-2004 academic year from $10 to $35. Motion passed unanimously.
5. Revision of Performance Indicators
It was moved and seconded to approve the revision to the Performance Indicators as outlined in the agenda item. Motion passed unanimously.
As approved by the Board of Regents the proportion of full time faculty holding terminal degrees in Indicator I in Teaching and Learning it was established at 90% and the proportion of alumni making gifts in Indicator IV Institutional Management and Other Overall Measures is set at 15%.
C. Information Items:
1. Campus Housing Survey
President Farley reported, as requested by the Board last fall, the campus housing study for Phase II housing has been updated. He noted the study provided with the agenda was in draft form and noted the final version is at their places tonight.
Vice President for Student Life, Denise Ottinger, indicated there are no real changes in the study data over the study completed several years ago other than to note we are now working with actual trend information rather than projected data. She said this gives us a little more realistic information, especially now that the LLC is open.
Dean of Enrollment Management, Al Dickes, said the consultant did a credible job but said the enrollment analysis probably understates demand. He noted the projections of the number of high school students graduating from '03 through '08 will be 10% above the six previous years and the numbers of students at the elementary and secondary levels this fall is at every grade level above what it was in 2000. He said it's his guess the number of Kansas high school graduates will increase slowly at a rate of about 2%-3% per year although there may be a year where there is a dip. He said he predicts the number of high school graduates will continue to increase into the second decade of the century. He criticized the text appearing before Table II-3 appearing on II-2 of the report and the characterization of the decline of lower division students from fall of 1990 to 2002 saying he'd prefer to look at it as a matter of returning to more stable enrollments.
There was apparent consensus the data reflected in the report should be correct. Regent Dick said, however, the real significance of the numbers is that we clearly have an unfulfilled need for housing for upper classmen and graduate students greater than that stated in the consultant's report.
Vice President for Student Life Ottinger reported comments from students indicated what students are looking for by way of housing is privacy along with computer and television hookups. She said the survey points out that transitional housing is unique, that the Topeka private housing has remained stable with a population growth of 6% and occupancy rate of 92%-93% and there is anticipated growth in first-time full-time freshmen and transfer students. She reported there is a good mix of students by class level in the LLC and with the increased number of students on campus there is an increase in retention. By way of conclusion, she reported the LLC has had a definite positive impact on campus and on recruitment and while housing across the city could take care of some of the growth in student population, there is still remaining the convenience issue.
Chairperson Engel said the plan would be to send the report and project to the Finance Committee for it to go over the report and plans we have and make a determination whether it's economically feasible with a decision to be made by the Committee of the Whole whether to go forward.
Regent Dick said at the time the Phase II housing plans were drawn the Board was focused on economics. By way of example, the decision not to have inside corridors was based on economics but he said that may need to be revisited in the context of security. He said a lot of the decisions made at that time were based on making the project as economical as possible. He said just as the Board determined when the plans for the new fitness/wellness center were first presented for approval that the project did not look like the rest of the campus and stepping in to move it in the right direction, there is now a need to look at this project from the context of how it looks like the rest of the campus. He also noted it is necessary to ensure that the project as developed will have a long life span to keep the appearance as the rest of the campus.
He said students comments about the LLC have all pointed out the unique nature of the building and said basically what we planned for the Phase II housing was, for lack of a better term, to develop pigeon holes to put students in competing with apartments. He said now that we've established a standard by the development of the LLC and its unique nature, we now have the potential to create for undergraduate students a specialness not apartment or dorms which make them want to participate in the housing. He said a third issue is the flexibility, noting Carruth Hall was removed because there was no feasible way to reconfigure that structure to meet the current student needs, noting what was needed 25 years ago is far different than what we might need for today's student and that will also be the case 25 years from now. He said when the plan was developed three years ago it was looked at as being a self-funding project. He said now after review of the right answers that it not be fully self-funding then we need to make a determination whether we can raise funds elsewhere to be able to go forward with the project.
Regent Blair indicated he was in agreement with Mr. Dick and noted the project also may not be sited for the right place now. He said there are two things we need to look at. One is the finance side, the other is the need for design and configuration of the project.
Regent Etzel said his finance committee views the charge it would be given is to determine whether we can pull it off financially and that all other decisions will be made either by a Committee of the Whole or considered by some ad hoc committee.
Regent Parks said she would like all the options to be considered, including whether the institution can afford to do this and voiced concern that there may be too many building projects ongoing.
Chairperson Engel said he would be referring that the matter is referred to the Finance Committee for its review.
President Farley circulated the University's year-end financial report. He said it has all the same information provided in the financial audit of the institution, but goes into more detail, including specific account information.
Regent Etzel said the next meeting of the Finance Committee will be March 6 to be held in Room 204 of Morgan Hall at 10:30 a.m.
Chairperson Engel, there being no further business to come before the Board, declared the meeting adjourned at 5:57 p.m.
Kenneth P. Hackler
Secretary, Board of Regents