I. Call to Order
Chairperson Roth called the meeting of the Board of Regents to order at 2:03 p.m. in the Vogel Room of the Memorial Union.
II. Roll Call
Present were: Mr. Bunten, Mr. Engel, Mrs. Lee, Mrs. Parks, Mrs. Paul, Mr. Roth and Mrs. Warren.
III. Approval of Minutes of March 11-12, 2005 meeting as mailed.
It was moved and seconded to approve the Minutes of the March 11-12, 2005 meeting as mailed. Motion passed.
IV. Officer Reports
A. Chair's Report
Chairperson Roth extended a welcome to Mayor Bunten, attending his first meeting of the Board of Regents. Mr. Roth said he was glad to have the Mayor join the Board.
Chairperson Roth said that inasmuch as there were a number of people present he would ask the Board's consent to the President's Report preceding the Committee Reports.
C. President's Report
President Farley said there's an astounding number of activities in which students participate and in so many events there are outstanding achievements. President Farley first recognized Professor Michael Kaye who is the director for the Center for Advocacy.
Professor Kaye said the Law School's Trial Advocacy team competed nationally. He said the team is very fortunate to be coached by a recent alumnus. He said the team went to Denver for a regional tournament where the teams placed first and second and had to go against each other to determine the order. Professor Kaye introduced Tad Layton who coached the teams this year. Mr. Layton said the team went to the National Trial Lawyers of America contest, never lost in the early going and took third in the country. He said no Kansas team has ever won the event and that the teams from the University were two of the top teams in the country. He said as a result of the team's performance, a lot of people now know where Washburn is. He introduced the team who took third in the nation: Christina Waugh, Brette Harte, Nick Purifoy and Bill Burris.
President Farley commended Kevin O'Leary and Jim Schnoeblen who coached the forensics teams this year. He said a team went to the novice national in Morehead, Kentucky this year. It was the second year in which a team from Washburn competed. Many of the members of the team placed in the top 25, one in the final eight. He said this year the team garnered 179 team and individual awards.
Dr. Farley recognized the two new faculty representatives to the Board, Prof. Russ Jacobs and Prof. Bill Roach who are the chair and vice chair of the new Faculty Senate respectively.
He recognized Rachel Wills who is the vice president for the Washburn Student Government Association. He said the president, Kate McCown, would not attend the meeting because she was presently taking a final.
President Farley recognized also the excellence of the Washburn Review this year. He said Ande Davis, the editor, has done a super job and it's been a good paper this year.
Dr. Farley recognized the head coach of the women's basketball team, Ron McHenry, who's been named coach of the year in Division II in the NCAA. Coach McHenry said he'd like to personally thank everyone in the Athletics Department as it makes his job much easier and he said he'd like thank especially the Board of Regents because of what it does and what it provides to his program. He presented an autographed basketball to Chairman Roth and an autographed sweatshirt to President Farley.
Finally President Farley reported other programs in Athletics besides basketball and football are experiencing success this year, noting the men's golf team is playing in the national championship in Savannah, Ga. which begins Wednesday next.
B. Committee Report(s)
1. Audit Committee
a. Washburn University Conflict of Interest and Standards of Conduct Policy and Annual Conflict of Interest Disclosure Statement
Chairperson of the committee, Regent Paul, said that looking at the agenda for the meeting one would note that there is a proposed conflict of interest policy for faculty and staff. Regent Paul said the proposed policy is somewhat similar to the one adopted earlier by the Board for members of the Board. She said the proposal before the Board of Regents is one which had been reviewed by faculty and others and changes made in the original draft. She said the Audit Committee has reviewed the proposed policy and recommends approval. It was moved and seconded to approve the proposed conflict of interest policy.
Regent Engel inquired about the phrase "other person acting for or on behalf of the University" in paragraph 3. President Farley responded that this is intended to apply to volunteers who are acting for or on behalf of the University, citing by way of example, the Campus Beautification Committee volunteers, persons from the Mulvane Art Center and Ichabod Club as examples of persons who engage in volunteer activity for the institution. He said this is intended to be used primarily as an educational tool.
Upon vote of the motion, motion passed unanimously.
2. Budget/Finance Committee
a. Capital Projects from the Debt Retirement and Construction Fund
The chairperson of the Budget/Finance Committee, Regent Warren, presented the list of capital projects to be funded from the Debt Retirement and Construction Fund. It was moved and seconded to approve the projects and equipment for FY 2006 funded by the 2005 Debt Retirement and Construction Fund revenues as detailed in the attachments. Motion passed unanimously.
b. Fiscal Year 2006 Salary Budget
President Farley said the allocation of salary funds was based upon the salary guidelines adopted by the Board. He circulated a document captioned "Analysis of Merit Salary Increases" which he said represents a quick analysis of the increases awarded which were differentiated based upon performance. He said if you look at the analysis you'll see a very nice distribution. He said he is very pleased the University was able to have a salary increase program which allows us to keep even with others on a national basis. He said presently the University is approximately seven percent behind in faculty salaries and this is being kept as a priority.
Chairperson Warren drew attention to the statement found in the financial implications section of the agenda item. She said the committee reviewed the projected revenues to ensure the increase could be funded from sufficient new monies from state appropriations and projected sales tax revenues. She said when you look at the rest of the budget, this is pretty well tied down. It was moved and seconded to approve the FY 2006 Salary pool allocations as presented. Motion passed unanimously.
D. Treasurer's Report
Vice President for Administration and Treasurer, Wanda Hill, presented the Treasurer's Report comprised of 1. Depository Security Transactions, 2. Liquidated Claims - March, 2005, 3. Liquidated Claims - April, 2005, noting the members had at their places the claims list for April 2005, 4. Public Fund Investments - March, 2005, and 5. Quarterly Report for Quarter Ended March 31, 2005. She said she'd be happy to respond to questions.
Regent Warren said she was very appreciative of the narrative information included with the quarterly report.
There was a question pertaining to the auxiliary enterprises information in the quarterly report concerning the expenses portion being much lower than the revenues. Vice President Hill said this is because the residential living has received 95 percent of its income but has not yet paid for all of its expenses. It was noted that the bulk of the revenues for housing is at the beginning of the semester. It was moved and seconded to accept the Treasurer's Report. Motion passed unanimously.
V. Old Business
A. Amendments to Article V of the Bylaws - 2nd reading
It was moved and seconded to approve the amendments proposed to Article V of the University's Bylaws as shown in the agenda item. Motion passed unanimously.
VI. New Business
A. Consent Agenda:
It was moved and seconded to approve Consent Agenda items 1. Renaming the Clarence W. King Endowed Chair in Finance and Real Estate, 3. Report of Purchases between $25,001 and $50,000, and 4. Annual Request for Allocation from WEA Current Gift Fund. Motion passed unanimously.
2. Request for Proposal - Underwriting Services, Financial Advisory Services and Bond Counsel Services for Washburn University
It was moved and seconded to authorize the administration to enter into contracts with George K. Baum & Company for underwriting services and to Hinkle Elkouri Law Firm LLC for bond counsel services for a period of five years.
Vice President for Administration and Treasurer, Wanda Hill, noted the absence of a recommendation for financial advisory services. She said this has been re-opened because the University received only one response and it was believed there is a need to have a group from which comparisons may be made. She said the responses are due May 20. She said the Board will receive a recommendation at its meeting next month.
In response to a query from Chairperson Roth, Vice President Hill said the recommendations contained in the agenda item are from a committee whose members each reviewed the responses individually before meeting as a committee.
President Farley added that there is nothing negative about the bond counsel and underwriters or financial advisory services from the past; rather he noted the contract with all of those entities were for a five year period which just expired and, consequently, this has just come up.
Mayor Bunten said he has a concern that we don't seem to be doing business with our own area companies. He noted the state office building had an Oklahoma contractor, the architect and developer from the Johnson County area, the School Board built an athletic complex with a contractor from the Lawrence area, and the renovation of the Capitol by a Missouri firm. He said in the absence of some significant difference in cost, we should do business with commpanies within the city wherever possible.
Vice President Hill said there was a difference in cost on bond counsel and additionally there is a depth of personnel. She said two of the respondents were local sole proprietorships and that with the Hinkle Elkouri Firm it would be a team which would be able to devote its time to our business.
Mayor Bunten said bond counsel is bond counsel and he would like to see the local University do business with local people.
Regent Warren said she agrees with the Mayor.
Chairperson Roth said he believes it is the Board's fiduciary duty to put away issues of friendship and loyalty and rely upon the committee's recommendation. He said he believes it would be a terrible mistake to base the award on place of business.
Regent Paul said she will need to abstain, noting that Phil Wolfe of Nichols and Wolfe Chartered is a partner with her husband, H. T. Paul.
Mayor Bunten moved that the question be divided. Upon vote of the motion for underwriting services, motion passed with no dissent. On vote of the award of contract to Hinkle Elkouri, motion failed by a vote of 3-1, with Regents Paul and Warren abstaining.
It was moved and seconded to table the item. Motion passed.
B. Action Items:
1. Purchases over $50,000
It was moved and seconded to authorize the administration to:
a. Automation Control System for KTWU
enter into a contract with MicroFirst in the amount of $132,240 for an automation control system for KTWU-TV; and,
b. Purchase of SunGard SCT Operational Data Store and Enterprise Data Warehouse
enter into a contract for the purchase and implementation of SCT Operational Data Store and Enterprise Data Warehouse at a cost of $275,000. Motion passed unanimously.
2. Master of Education - Curriculum Instruction - Literacy Emphasis
It was moved and seconded to approve a change in the Master of Education - Curriculum Instruction - Literacy Emphasis. Motion passed.
3. Alteration in Curriculum for Bachelor of Arts in Music Degree
It was moved and seconded to approve the change in the curriculum for the Bachelor of Arts in Music Degree. Motion passed.
4. Revision of Bachelor of Fine Arts with Emphasis in Art History
It was moved and seconded to approve the revision to the Bachelor of Fine Arts with Emphasis in Art History as presented. Motion passed.
5. Bachelor of Arts Major in Communications with Health Communications Emphasis
It was moved and seconded to approve the Bachelor of Arts Major in Communications with Health Communications Emphasis as presented. Motion passed.
6. Elimination of "Local and Economic Development" and "Environment and Natural Resources Management" track Emphases from the Bachelor of Public Administration
It was moved and seconded to eliminate two track emphases in the Bachelor of Public Administration, "Local and Economic Development" and "Environment and Natural Resources Management." Motion passed.
7. Catherine C. Hussey - Endowed Chair in Nursing Fund
President Farley said the proposal was to remove the restriction requiring all earnings of the Catherine C. Hussey Endowed Chair in Nursing Fund to be retained. He noted the donor did not require the retention of earnings. It was moved and seconded to remove the restriction on the retention of all earnings and to distribute earnings according to the spending policy for Washburn University endowed funds beginning with the 2004 annual distribution. Motion passed.
8. Budget for Stoffer Hall Project
Mayor Bunten inquired whether there is a goal for fund raising for the project. President Farley said there is a working goal of approximately $2 million for the project. He said there will be no bond issuance for the project.
In response to a query from Regent Paul whether funds had been earmarked, Dr. Farley said that some two years ago in the fall the Board reviewed the top priority uses for the potential use of reserve funds, some of which would be utilized for the renovation of Stoffer Hall.
Regent Engel said that what surprised him about the proposal was the price. He said when the project was first envisioned, price was identified at approximately $12 million. He asked what caused the jump -- were we naive in our initial projection.
President Farley said the working number was arrived at without advice from professionals externally; rather, it was developed internally. Dr. Farley said the Washburn Endowment Association personnel are working on developing a feasibility study for fund raising for the Stoffer Hall project. He said he is comfortable that the project will be successfully financed.
In response to a query from Regent Lee whether a feasibility study from WEA could be presented at the next meeting, Dr. Farley said the WEA could update the Board on the process.
It was moved and seconded to approve the total project budget for the Stoffer Hall renovation project in the amount of $14,651,484 to be funded from a combination of University reserves and fund raising efforts. Motion passed.
9. Potential Fund Raising Projects
President Farley said that last summer the University initiated discussions with the academic deans and directors for the development of projects for the University in the development of goals for fund raising projects. He said we wanted some big ideas, ones that might be viewed as somewhat audacious. He said the first draft of proposals was for 75-80 projects. That list was then pared down to approximately 30. Further refinement led to the proposals included in the agenda item. He said if the Board approves the items, the next step would be review by the Washburn Endowment Association as the fund raising arm of the institution to determine donor interest in the proposals. It was moved and seconded to request the Washburn Endowment Association to receive the Summary of Proposed Fundraising Projects along with supporting material in preparation for consultation, evaluation and further refinement. Motion passed.
It was moved and seconded to adjourn. Motion passed. The meeting adjourned at 3:35 p.m.
Kenneth P. Hackler
Secretary, Board of Regents