IV. FY 2005 PUBLIC BUDGET HEARING
Regent Charles Engel, as Chairperson pro-temore, opened the public hearing on the University's Fiscal Year 2005 Budget at 4:06 p.m. in the Kansas Room of the Memorial Union. Regents present were: Mr. Blair, Mr. Engel, Mr. Ferguson, Mrs. Lee, Mr. McClinton, Mrs. Parks, *Mrs. Paul and Mrs. Warren.
* Participated in the meeting via telephone conference call.
Mr. Engel invited anyone wishing to address the Board on the proposed Fiscal Year 2005 Budget to speak. No one identified themselves wishing to speak. Regent Engel inquired of the Board Secretary whether any person had requested to speak and was informed that none had.
Regent Engel, noting that no one present wished to speak to the Board on the proposed FY '05 budget, declared the Hearing closed.
I. Call to Order
Regent Charles Engel, sitting as chair pro-tempore of the Board of Regents at the request of Board Chair Roth, called the business meeting of the Board of Regents to order at 4:08 p.m. in the Kansas Room of the Memorial Union.
II. Roll Call
Present were: Mr. Blair, Mr. Engel, Mr. Ferguson, Mrs. Lee, Mr. McClinton, Mrs. Parks, *Mrs. Paul and Mrs. Warren.
* Participated in the meeting via telephone conference call.
III. Approval of Minutes of June 16, 2004 meeting as mailed.
It was moved and seconded to approve the Minutes of the June 16, 2004 meeting as mailed. Motion passed unanimously.
V. Officer Reports
A. Chair's Report
Regent Engel requested the Board ratify the appointments of Regents Ferguson and Blair by the Board Chair, Mr. Roth, to serve as a committee on Presidential Compensation. It was so moved and seconded. Motion passed unanimously.
B. Committee Report(s)
1. Finance Committee
a. FY 2005 Budget Guidelines
The chairperson of the Finance Committee, Mr. Blair, reported the Finance Committee last met on July 14, 2004 at a meeting chaired by Regent Engel. He reported that the public budget documents which have been presented earlier at the Public Budget Hearing were a main item of discussion. The other major topic was the Budget Guidelines for Fiscal Year 2005.
Mr. Blair noted that sales tax revenues for fiscal year '04, through April, exceed the fiscal year '04 budget by approximately $600,000 thus negating the necessity of a budget transfer from the smoothing fund for the fiscal year. He noted, however, national retail sales are down for May and June and the committee recommends the sales tax revenue figure for fiscal year '05 remain the same as that for the current fiscal year '04 budget of $17,303,105. He reported that tuition and fee comparisons for Washburn University and the six state educational institutions were presented and reviewed at the last committee meeting and that the committee recommended a $15 per student credit hour increase in undergraduate resident tuition, representing an 11.1% increase in tuition which will result in a projected increase in tuition revenue of $2,568,640. He also reported the state aid for fiscal year '05 is projected to increase by $455,060 which simply restores previous cuts.
Regent Blair noted that at each Regent's place there was a document captioned "Washburn University Sources and Uses of Funds FY '05" which shows the sources and uses of funds recommended for Fiscal Year '05. Mr. Blair then moved the Board approve the Budget Guidelines which was seconded.
In response to a query from Regent Parks whether the tuition increase would have an adverse impact on enrollment, Dr. Farley noted it was the administration's opinion that it would have no effect. He noted also there is substantial financial aid available to students and the increase should not have an adverse impact. He also reported there probably will be an increase in enrollment over the past fiscal year. He reported, too, that the other public universities in the state are increasing their tuition per student credit hour greater than this number, indicating that one institution has also added a surcharge to assist it in making up loss of state funding. Dr. Farley said the University's tuition level is still below the national average and is, in fact, still further below the national average than it was ten years ago. He said the tuition increase will assist the institution in maintaining its momentum and competitiveness for faculty salaries and academic programs.
Regent Ferguson noted the Kansas Board of Regents have approved tuition increases for the six state educational institutions ranging from 9% to 18% and that these increases follow up on two previous tuition rate increases by the state schools. Mr. Blair reiterated that the tuition level at Washburn would occupy the same position relative to the other institutions.
Motion to approve the Budget Guidelines passed unanimously.
C. President's Report
President Farley first thanked the Board of Regents for taking its action on the Budget Guidelines and Budget which will keep the momentum of the University moving forward.
Dr. Farley reported that the occupancy rates of the University on-campus housing is at 88% at this point. He said we will experience some demand for housing by persons who have yet to come to campus. He said there are presently 78 spaces available, of which 26 are in the LLC and approximately 30 are in Washburn Village. In response to a query from Regent Engel, Dr. Farley indicated the budget for the fiscal year is based upon an 87% or 88% occupancy rate.
Dr. Farley noted that the Board of Regents recently had just approved submittal of the University's performance agreement document to the Kansas Board of Regents to comply with a change in the statutes concerning higher education two years ago. He noted the performance agreement just approved was for a half year and that there is now a need to submit a new performance agreement plan for a full year. Dr. Farley reported the administration had gone through the goals submitted in the half year performance agreement and noted there is no substantial or significant changes to them for a new performance agreement with the Kansas Board of Regents, so the University is using the same goals for next year, acknowledging that many of the goals are, in fact, multi-year goals. He said there are some minor changes, citing as an example the specific identification of a specific vocational/technical school in light of the University's goal of establishing relationships. He said the performance agreement for the full year is being forwarded to the Kansas Board of Regents. He said that as there were no significant or substantial changes Board of Regents approval is not required and that were there any such changes, Board approval would be sought.
Dr. Farley reported he had just returned from a meeting of the chief executive officers of the MIAA conference schools in Kansas City, Missouri. He said that Regents likely have read of a conference institution leaving the MIAA to go to the Great Lakes Conference. The school is the University of Missouri at Rolla. He said the conference is looking at prospective members with an idea to strengthen the conference in Division II of the NCAA. He said the CEOs were meeting to consider institutions who have expressed interest and that there was a lively debate. He said the MIAA will be voting some time in the future to add institutions to the conference.
Regent Blair noted that the Board of Regents, while conducting the Public Budget Hearing for the FY '05 University Budget, had not specifically approved the Public Budget and moved the Board approve the FY 2005 Budget. Motion was seconded and was passed unanimously.
D. Treasurer's Report
Vice President for Administration and Treasurer, Wanda Hill, first requested the Board to accept the Treasurer's Report set forth in agenda items 1. Depository Security Transactions, 2. Liquidated Claims Approval - June, 2004 and 3. Public Fund Investments - June, 2004.
Vice President Hill then gave an update on construction projects ongoing at the campus. She said the Washburn Village project is now going through inspection and the installation of the furniture is almost complete. She said the issue remaining is to get the fire alarm system connected to the enunciation system at the University's Police Department. She said while we have use of the facility we do not have an occupancy permit.
With respect to the student recreation center, Vice President Hill said there are some issues with concrete not drying as quickly as anticipated because of the damp and rainy weather. She said the project is being delayed a bit and it will probably take on the order of some two to three weeks to get totally completed. She said today, July 21, is the completion date specified, but noted the contractor has requested additional days for delay.
Vice President Hill reported that the renovation of the Nunemaker facility is almost complete and the project is coming along as planned and without any glitches. In response to a query from Regent Blair about landscaping plans for the facility, Vice President Hill said we do have plans and would get anyone who wanted one a copy of it.
It was moved and seconded to receive the Treasurer's Report. Motion passed unanimously.
VI. New Business
A. Consent Agenda:
It was moved and seconded to approve the Consent Agenda.
President Farley reported that an attachment to VI.A.2.b. correcting the earlier attachment is at each member's place. Motion passed unanimously.
As approved by action of the Board:
1. Academic and Administrative Staff Changes
academic and administrative staff changes as outlined in the agenda item and attachment;
a. Personnel Actions - Administrative Staff - Wiltz
appointment of Amanda J. Wiltz as Assistant Director, University Relations at an annual salary of $34,000 effective July 22, 2004;
b. Faculty Personnel
faculty personnel actions as detailed in the agenda item and attachment; and,
3. Report of Purchases between $25,001 and $50,000
contracts and procurements as outlined in the agenda item and attachment;
B. Action Items:
1. Expenditures above $50,001
a. Law School Classroom Technology Enhancement Project
It was moved and seconded to approve the award of a contract to Smith Audio Visual, Inc. in the amount of $73,915.00 for Law School technology enhancement project. It was noted that the enhancements include not only the classrooms earlier identified as being renovated, but several others as well. Motion passed unanimously.
b. KTWU Projects
1) FY 2005 Membership Fees
It was moved and seconded to approve the payment of membership fees by KTWU an amount not to exceed $490,000 for the Member Service Assessment, Station Independence Program membership and PBS Assessment. Motion passed unanimously.
2) New Emergency Electrical Service for KTWU Transmitter Building;
3) Hi-Definition Encoder;
4) (4) Hi-Definition Videotape Machines; and,
5) Serial Digital Router
It was moved and seconded to approve agenda items VI.B.1.b. 2) through 5). Motion passed unanimously.
By its action, the Board of Regents approved: the award of a contract to Davin Electric in the amount of $88,864 for the installation of an emergency generator system for the KTWU TV transmitter site; the purchase of a Hi-Definition Encoder for KTWU in a contract amount not to exceed $75,000; the purchase of four Hi-Definition videotape machines for KTWU in a contract amount not to exceed $146,000; and, the purchase of a serial digital router for KTWU in a contract amount not to exceed $125,000
2. Parking Lot - Durow Drive
President Farley reported that the agenda item in the packet sent to Regents was a placeholder for the award of a contract for construction of a parking lot of 211 spaces, including 8 handicapped accessible spaces, in the area just South of the existing tennis courts and North of Durow Drive. He said the University had solicited bids which were opened last Friday. During an evaluation of the bid responses received, the University determined there were some discrepancies in the bid documents and specifications which require the University to reject all bids and to re-bid the project. As the Board will not be meeting to take action on items until October, President Farley requested that the Board grant the administration the authority to award a contract for the construction of the 211 space parking lot in an amount not to exceed $350,000. It was so moved and seconded. Motion passed unanimously.
3. Student Recreation and Wellness Center Cardiovascular and Training Equipment
It was moved and seconded to authorize the administration to award a contract to Advanced Exercise Equipment in an amount not to exceed $175,000 for the purchase of cardiovascular and resistance training equipment for the Student Recreation and Wellness Center. Motion passed unanimously.
President Farley requested the Board consider an additional item following the notification Tuesday of the award of a grant. It was moved and seconded to add the agenda item to the agenda. Motion passed unanimously. It was moved and seconded to approve the appointment of Kristine Hart to the grant funded position of Jumpstart Site Manager at an annual basic salary of $35,000. In response to a query, Vice President for Academic Affairs Ron Wasserstein, reported that Jumpstart is an early literacy program and the coordinator will match students at the University with various programs in the community for early literacy. Motion passed unanimously.
It was moved and seconded to recess to Executive Session for the purpose of discussing preliminary acquisition of real estate and to reconvene in Open Session in the Kansas Room at 5:05 p.m. Motion passed unanimously. At 4:55 p.m. the Board recessed to Executive Session in the Kansas Room of the Memorial Union.
At 5:05 p.m. the Board reconvened in Open Session in the Kansas Room of the Memorial Union. Mr. Engel, serving as chair pro-tem, reported the Board had been in Executive Session for the purpose of discussing preliminary acquisition of real estate and that no action had been taken. It was moved and seconded to recess to Executive Session to continue discussion of preliminary discussion of real estate and to reconvene in Open Session in the Kansas Room of the Memorial Union not later than 5:15 p.m.
At 5:13 p.m. the Board reconvened in Open Session in the Kansas Room of the Memorial Union. It was moved and seconded to approve a contract for the purchase of 1729 SW MacVicar, Topeka, KS at a contract price of $235,625. Motion passed unanimously.
It was moved and seconded to adjourn. The meeting adjourned at 5:14 p.m.
Kenneth P. Hackler
Secretary, Board of Regents