I. Call to Order
Chairperson Roth called the meeting of the Board of Regents to order at 3:38 p.m. in the Vogel Room of the Memorial Union.
II. Roll Call
Present were: Mr. Blair, Mrs. Parks, Mr. Engel, Mrs. Paul, Mr. Roth, Mrs. Lee, Mrs. Warren and Mr. McClinton.
III. Approval of Minutes of July 21, 2004 meeting as mailed, Special Committee Minutes of September 9, 2004, and September 22, 2004 Minutes.
It was moved and seconded to approve the Minutes of the July 21, 2004 meeting, the Special Committee Minutes of September 9, 2004 and September 22, 2004 Minutes. Motion passed unanimously.
IV. Officer Reports
A. Chair's Report
Chairperson Roth reported that Regent Blair called him about a month ago indicating he would like to cease service as the chair of the Finance Committee, believing it would be better were someone newer on the Board to begin service on the Committee. Mr. Roth said he's asked Regent Warren to chair the Committee and has also asked Regent Paul to chair the Audit Committee. He said he wants to start a new committee for a short term project for new member orientation. He said he'd like to appoint Mr. Ferguson to oversee that work as it would be beneficial to learn what the state Board of Regents does with respect to new member orientation. He said that he'd be happy to appoint anyone to any committee he/she wants and then asked for volunteers. The Mayor said he would be willing to serve on the Audit Committee. Regents Lee, Blair and Engel all indicated they would serve on the Finance Committee. Mr. Roth indicated that anyone should feel free to attend any of the committee meetings.
He reported also that he wants to create a committee to work on the Bylaws, noting that in the near future Regents will be provided two sets of Bylaws. One would be the present set of Bylaws which extends to things more than just the operation of the Board. And then a second version which is a rough draft proposal which he asked University Counsel to provide him. He said Nancy Paul had been working for approximately six months on a conflict of interest proposal. He said he has asked that it be e-mailed or provided to all members of the Board and asked that members and furnish comments to Regent Paul, Mr. Ellis or Mr. Hackler.
Finally, Chairperson Roth noted that earlier we had a bidding process for obtaining financial advisor and bond counsel for the issuance of bonds for and on behalf of the University which now has expired. He said the administration will be putting out a request for proposals for bond counsel and financial advisor so we can enter into a new five-year agreement. He said the work on putting together the RFP has not begun and doubts that it would be ready for next meeting.
B. Committee Report(s)
There were no committee reports.
C. President's Report
President Farley said tomorrow is Family Day on the University's campus and there will be lots of activities for students and their families before the afternoon football game.
Dr. Farley said the Tenth Circuit Court of Appeals recently held a regular session of the oral arguments at the University's School of Law. He said this is a great opportunity for our law students to observe the appellate court. He also said that last week there was a dean's circle dinner in the Kansas City area for law alumni which was very well attended.
He said that before next meeting there will be the annual Homecoming. He said there will be lots of activities associated with the October 30 Homecoming event and it looks like there is a good plan this year. The theme for this year's homecoming is "Haunted Homecoming."
D. Treasurer's Report
It was moved and seconded to accept the Treasurer's Report as presented. Motion passed unanimously.
Approved by action of the Board:
1. Depository Security Transactions
2. Liquidated Claims Approval - July, 2004
3. Liquidated Claims Approval - August, 2004
4. Liquidated Claims Approval - September, 2004
5. Public Fund Investments - September, 2004
V. New Business
A. Consent Agenda:
It was moved and seconded to approve Consent Agenda Items V. A. 2. b. and 3. Motion passed unanimously.
Approved by action of the Board:
b. Faculty Personnel
hire Faye Niesen on a full-time, 9-month, non-tenure track contract as Radiation Therapy Lecturer effective August 1, 2004 at an annual salary of $45,000; grant one year leave of absence without pay to Peregrina Pereiro beginning August 1, 2004, tenure calendar will stop for the duration of her leave of absence); provide additional funds for benefits of $18,273 to Visiting Assistant Professor Pete Linzer; hire Nathan Bremer as Study Abroad Coordinator effective September 1, 2004 at an annual salary of $33,000; and,
3. Report of Purchases between $25,001 and $50,000
award of contract to: Automated Business Systems in the amount of $45,975.00 for mobile storage system in the Athletics Department; SimplexGrinnell in the amount of $27,421.00 for fire alarm control panel in Police Dispatch; Murray & Sons Construction Co. in the amount of $34,828.00 for sidewalk and handicap ramps at Washburn Village and Student Recreation & Wellness Center; Marley Cooling Technologies in the amount of $30,059.00 for cooling tower for Petro Allied Health Center; B & J Food Service Equipment in the amount of $43,829.62 for equipment for Dining Services; Design Business Interiors in the amount of $28,811.46 for furnishings for the Student Recreation & Wellness Center; Dodge Electronics in the amount of $42,394.45 for sound systems for the Student Recreation & Wellness Center; LI-COR, Inc. in the amount of $41,750.00 for DNA Analyzer for the Biology Department; and, AlofE Solutions in the amount of $39,500.00 for content management system for the University web site.
* 1. Phase II Roof replacement Morgan Hall
* a. Administrative Staff - Kopp
* c. Permission to make offers for faculty positions in the School of Business
* d. Award honorary title "Visiting Professor of Politics" to Dr. Bill Roy
* Items withdrawn from the Consent Agenda for discussion.
1. Phase II Roof replacement Morgan Hall
It was moved and seconded to approve award of a contract to Guilfoyle Roofing in the amount of $177,850 to replace the second portion of the roof for Morgan Hall. In response to a query from Regent Paul whether the contractor for Phase II is the same as for Phase I, Dr. Farley indicated that it is. Motion passed unanimously.
a. Administrative Staff - Kopp
It was moved and seconded to approve a proposed salary increase for Mary Kopp as Coordinator of the KAN Be Healthier project in the amount of $937.50 per month for the remainder of fiscal 2005. In response to a query from Regent Paul, Dr. Farley reported her duties were strictly related to the grant. Motion passed unanimously.
c. Permission to make offers for faculty positions in the School of Business
It was moved and seconded approval be granted to the President to make firm offers to successful candidates at the appropriate competitive salary as recommended by the faculty search committees, the School of Business Dean and the Vice President for Academic Affairs with names and salaries being reported at the next Board meeting. In response to a question from Regent Engel whether the extension of a contract to the new faculty during this fiscal year would run afoul of the cash basis law, Mr. Hackler reported it would not. After some discussion about how the delegation of appropriate authority could be made, the Dean of the School of Business and the Vice President for Academic Affairs were asked to arrive at a number to be set aside in a pool for such salary offers.
Mr. Roth said he has been on the Board for ten years and the University has during that period of time always been seeking accreditation for the School of Business. He indicated he would like to know when the Board might expect accreditation be accomplished and, if not, at that point, then be able to ask what the University should next do. Dr. Farley said the University has been following the stated process of the accrediting body for a number of years and invited the Dean of the School of Business, Dr. David Sollars, to outline the process.
Dr. Sollars reported normally there is a five year candidacy period and we are in the fourth year of the process. He said this is the self-evaluation year which we will be sending to the accrediting body. Presently the School of Business has received the names of persons nominated to be team members to visit the University's campus following a review of the self-evaluation. The self-evaluation report is due to the accrediting body in August of 2005 and he said the AACSB will make a determination if the School of Business is ready for a visit; it's not sure but they're coming anyway; or, to defer site review for an additional year.
Dr. Sollars said he expects the accrediting team will make a visit to the University's campus in February of 2006 for a three-day visit and audit of the School of Business in light of its self-evaluation report and that when it leaves it will give President Farley, Vice President for Academic Affairs, Dr. Ron Wasserstein, and himself an overview of its findings. The accrediting visitation team will make a report to the accrediting committee. He said if awarded, accreditation will be awarded in Paris in April of 2006. He said if the institution is turned down on the visit or is deferred, it will still have one more year to go through the process. He said the School of Business is under the old standards and that we do not have to do the new accrediting standards of the organization.
Item V. A. 2. c. was deferred for action later in the meeting.
d. Award honorary title "Visiting Professor of Politics" to Dr. Bill Roy
It was moved and seconded to award the honorary title of Visiting Professor of Politics to Dr. Bill Roy. In response to a question whether Dr. Roy would be teaching classes, Dr. Farley indicated he would be working more with small group classes and would be a guest speaker in classes. Motion passed unanimously.
B. Action Items:
1. University Health Plan Renewal
It was moved and seconded to approve renewal of the University's Health Plan. Motion passed unanimously.
2. Ratification of Renewal of Insurance Policies
It was moved and seconded to ratify the purchase of policies as shown on the schedule attached to agenda item V. B. 2. President Farley reminded the Board that in the Board retreat session of last year with the AGB facilitator the Board was advised it should be informed on a number of issues, one of which is the area of risk management. Among the areas within risk management identified by Dr. Farley were financial risk, legal regulatory risk, political and reputational risk. The latter might be, for instance, the loss of accreditation or an NCAA violation. He said the Audit Committee would be addressing these other areas in detail in the coming months. Dr. Farley said the University has been working with IMA to provide the University insurance advice in establishing appropriate values, buildings and equipment. Other things at issue then would be helping with training programs with respect to life, safety and health. And the latter group would be training on slips and falls, forklift and equipment operating procedures, blood borne pathogens, and CPR. He said the institution has had a consultant from Travelers conduct a safety compliance review of five buildings on issues such as fire alarm systems. He said the buildings are insured at replacement value. He noted also the policies include a business income rider because income from housing and the student union is used for the bond payments. He said that while there is a nine percent increase in premium costs, that reflects additional value insured and also because of the recent review and also on account of the University's capitalization of equipment policy, all are insured at replacement value. Upon vote of the motion, motion passed unanimously.
3. Stoffer Hall, Building Renovation Project
Dr. Farley reported that starting about a year ago a committee was appointed and was asked to address the needs of the University's science building, Stoffer Hall. He said the committee was asked to address the needs of the University in terms of its excellent reputation in the sciences, the quality of our faculty and of our programs.
Dr. Farley noted the building was opened in 1960, remarking that Jim Maag recently said he was student body president at the time of the building opening. He said the committee was asked to determine what's needed for science education today and that what is presented to the Board of Regents today is what the committee sees the needs are. Dr. Farley said the administration is seeking the authority to start the architectural selection process and to get our hands around the size and cost of the project. He said the University has identified resources available, approximately $10 million, as a good starting point for the project budget. He said fundraising will be a significant component of the project. He said when the architectural selection process is completed the administration would then ask in January that it be allowed to proceed to schematic design, which represents only a couple of percentage points of the entire fee.
Vice President for Academic Affairs, Dr. Wasserstein, said he would like to simply add to Dr. Farley's outline that the review process conducted by the committee was a very important step in development of science education on campus and our efforts to stay top notch.
In response to a question from Regent Engel about not seeing anything in materials about a library, Dr. Farley said it is important to have ready access to research literature, but increasingly that information is available on line. He said it is not unusual for separate science buildings to have libraries but usually those are found on campuses with graduate programs rather than undergraduate. At the invitation of Dr. Farley to comment, faculty representative, Dr. Steve Angel, said the question is a good one and one which the committee did consider. He said the committee is content with the proposal as is in that regard.
In response to a query from Regent Parks about the percentage of funding of the $10 million will come from University reserves, President Farley said the institution would like to target a fundraising goal of $2 million and to start the process immediately. The current plan is to identify $8 million from reserves with the possibility of additional funding being available next spring if more money is available.
In response to a question from Regent Warren about whether the project budget of $10 million included architectural fees, President Farley said the $10 million budget plan is inclusive of architectural fees. He noted that the University, in conducting its building program, generally follows the state schedule for architectural fees and in a project of this size and scope the fee would probably be around ten percent.
Regent Blair asked whether this process, in addressing the science building needs, will the administration also consider additional classrooms on campus noting it may be cheaper to build a new science building versus remodeling Stoffer as you would be getting what the University wanted rather than compromising. President Farley said the administration has talked about it, but in the preliminary review it looked pretty expensive. However, he said the question is a good one and one that will be looked at.
It was moved and seconded to approve the program statement in the agenda item and to authorize the administration to begin the architect selection process. Motion passed.
4. Chapel Naming
President Farley said that consistent with the University and Washburn Endowment Association policies on naming capital facilities he is recommending the name of the chapel moved from the Menninger campus to the University be Carole Chapel. It was moved and seconded to approve the name Carole Chapel for the newly renovated building.
Regent Lee moved the main motion be amended, substituting as the name for the building "Peace Chapel." Motion was seconded.
Regent Lee said she would like to thank the Menninger Foundation for making available to Washburn University a beautiful chapel. She noted today the nation is at war, sadly involving men and women who are the age of the students on campus. She said she believes it important to recognize the sacrifice of our sons and daughters to bring freedom and dignity and, hopefully, peace to the world. She said the chapel is intended to be a place of contemplation and meditation and that it would be appropriate for its name to connect with a significant part of the nation's history. She said our way of life has changed significantly since September 11 and that it would now be appropriate to name the chapel in honor of the fallen soldiers and for the peace of the world.
Regent Paul inquired whether the donor met the criteria of the Washburn Endowment Association naming policy. Dr. Farley reported that he did.
Chairperson Roth said he thought Regent Lee's proposal was a wonderful idea, however, he said he believed that when the funding was given the donors were advised that if they gave half of the projected building budget they'd have a naming opportunity. He said that not approving the recommendation of the President and the Washburn Endowment Association in this regard would set a difficult precedent for the institution.
In response to a question from Regent Lee whether the naming opportunity is a privilege or a right, President of the Washburn Endowment Association, Dr. JuliAnn Mazachek, said she believes it is a privilege and that it is presented to donor as such with the Board having final approval. She said naming of facilities does create more opportunities to raise funds for projects. She said this was important in this project and especially for this donor. In response to a question from Regent Lee, Dr. Mazachek read the following excerpt in a letter to the donor in anticipation of the meeting. "As you know, the Board of Regents has full authority to name any facilities on campus and is the final step in this important process. We anticipate announcing the name of the Carole Chapel and its story with a press release immediately following the meeting."
Regent Blair, noting he is not sure how he will vote, said he'd like to join in complementing the Etzels for the job they have done the chapel project. He said the building has turned out to be absolutely beautiful and that it is largely because of Mr. Etzel's insistence that it is located where it is as a major piece of the University's campus. He said it's going to be a very public facility used by students and others for weddings and other things. He said he wasn't sure that with a building of this prominence, that the size of the gift made should allow the person to name the building. He said this is a very, very difficult question and reiterated he is not sure how he will vote.
Regent Engel said he was reflecting back about the Bradbury Thompson Center which, from day one, was going to be known by the name of Bradbury Thompson. In this case, he said, naming for this facility should be as it was for the Bianchino Pavillion and Yeager Stadium. He said the donors were led to believe that if they gave half of the fundraising goals, as articulated in Washburn Endowment Association policy, they would be granted the privilege to name the facility.
Regent Warren said she understood the naming policy is a method to ensure the Board would have the opportunity to evaluate the name and to not approve any name, like ENRON, which would not be appropriate. She said the alternative name suggested is very suitable, but there is no objection to the recommended name or that it is in any way unsuitable. She said important in this situation was that the donor would have the opportunity to name the facility and indicated she doesn't see any major reason why we should object.
The President of the Washburn Student Government Association, Ashley McMillan, said that "we as students would probably support Mrs. Lee's motion."
Regent Engel said the University has been engaged in a good deal of fundraising over the past several years and that we will be raising millions in order to keep the momentum going, not only in bricks and mortar but in other areas as well. He said all of us are involved in fundraising. He said that for incentive at certain levels of dollars, naming opportunity is a huge part of reaching the University's goals. He said he worries about the precedent not approving the recommended name requested by the donor would have when we are going to have to raise a lot of money in the next five years.
Regent Lee said she "would like to see the name have some significance at this point in U. S. history." Regent Parks said she loves the name "peace" on a project but said she believes we should have had this discussion a few months ago. She said "I'm sure the donor was under the impression he would have the privilege of naming the facility." She said she hopes we have a project in the future on which this name may be placed.
Regent Engel said he has no problem with memorials, noting the existence of the Memorial Union, memorializing the war dead from World War II and the Vietnam Veterans Memorial. He said these are appropriate to have. He said we did have a fundraising plan with respect to the funding of the renovation of the chapel project which was even updated a couple of times. The Board approved it and sent the foundation on its way. He said the precedent in not approving the name recommended would not serve the University well.
Regent Blair said he appreciated the comments made by the president of the Washburn Student Government Association. Regent Blair also said we didn't listen to students when the building was sited, maybe we should listen to them when it comes to the naming of the building. He said he doesn't think it's a concern to table the motion. He remarks that the institution's going to make very appropriate display to Menninger and Nunemaker families and to all the donors who made a contribution to the renovation. He said there will be very adequate recognition to all persons who gave.
It was moved and seconded to table the motion. On vote, Mr. Blair, Mrs. Parks, Mrs. Paul, Mrs. Lee, Mrs. Warren and Mr. McClinton voted for the motion, and Mr. Engel voted no.
5. Washburn Endowment Association Office Space
It was moved and seconded to approve the renovation project of 1729 SW MacVicar at a project cost of $1.3 million and to authorize the University to hire architects for the design of the project through the Board approved process for selection of architects.
Regent Paul inquired whether the $1.3 million budget included any additional furniture or equipment. President of the WEA, Dr. Mazachek, indicated that the furniture and equipment the WEA has will be moved into the facility. There will be no new equipment anticipated.
In response to a question from Regent Engel whether the WEA would continue on the University existing phone and computer system or provide for its own, Dr. Mazachek reported they are still evaluating that.
In response to a query from Regent Parks whether there will be adequate space for the WEA, President Farley reported about a year and a half ago the WEA had a consultant evaluate its space needs. At the time there were several options: build a new building; add onto the Bradbury Thompson Center; or, expand into the basement. President Farley said the WEA has expanded into the area of the basement of the Bradbury Thompson Center room formerly known as the Forum Room and that moving to the space on MacVicar will replace those facilities.
In response to a question about zoning, President Farley said the administration is presently working towards a rezoning for the property. He said the administration will be visiting with the contiguous neighbors to the property and then will go to the city seeking a zoning request to the University District. He said he didn't anticipate there would be a problem.
Motion passed unanimously.
6. Fiscal Year 2005 Budget
It was moved and seconded to approve the FY '05 Operating Budget.
President Farley reported that in June, the Board authorized a continuation budget and adopted guidelines to be implemented by the institution. He said the materials today are the result of a mechanical process and follow very true to the guidelines adopted by the Board at its June meeting.
President Farley then deferred to Vice President for Administration and Treasurer, Wanda Hill, who outlined and highlighted the materials attached to the agenda item. She said the budget as presented represents an overall increase in revenue and expenditures of 8.7 percent over last year. In terms of revenues as a percentage, she said tuition and fees represents 41.9 percent, state aid 14.7 percent, and sales tax 22.1 percent.
President Farley circulated a memorandum from the Director of Institutional Research, Melodie Christal, which included a 2004-05 salary increase analysis. He said the information provided demonstrates a differentiation in award of salary increases based upon performance.
On vote of the motion to approve the FY '05 budget, motion passed with Mayor McClinton voting no.
It was moved and seconded to ratify the appointment of Maggie Warren as Chair of the Finance Committee, Nancy Paul as the Chair of the Audit Committee, and Mr. Ferguson as Chair of the New Regent Orientation Committee. Motion passed.
V. A. 2. c. A substitute motion for agenda item V. A. 2. c. was made and seconded to approve the President to make firm offers, from a salary pool of $500,000, to successful candidates at the appropriate competitive salary as recommended by the faculty search committees, the School of Business Dean and the Vice President for Adminsitration.
C. Information Items:
1. Treasurer's Report - "Not to Exceed" Purchases Report
2. Summary of Program Review Activities during Academic Year 2003-2004
VI. EXECUTIVE SESSION
It was moved and seconded to recess to Executive Session for the purpose of discussing a personnel matter of non-elected personnel and to reconvene in Open Session in the Vogel Room not later than 6:10 p.m. Motion passed unanimously.
The Board recessed to Executive Session at 6:50 p.m.
At 6:05 p.m. the Board reconvened in Open Session. Chairperson Roth reported the Board had been in Executive Session for the purpose of discussing a personnel matter of non-elected personnel and that no action will be taken.
Without objection, the Chairperson of the Board adjourned the meeting of the Board of Regents to reconvene at 8:30 a.m. October 9 in the Vogel Room of the Memorial Union.
At 8:35 a.m. October 9, 2004, Chairperson Roth reconvened the meeting of the Board of Regents.
Present were: Mr. Blair, Mrs. Parks, Mr. Engel, Mr. Ferguson, Mrs. Paul, Mr. Roth, Mrs. Lee, Mrs. Warren and Mr. McClinton.
It was moved and seconded to recess to Executive Session for the purpose of discussing a personnel matter and to reconvene in Open Session in the Vogel Room at 9:00 a.m. with possible action to be taken. Motion passed. The Board recessed to Executive Session at 8:37 a.m.
At 9:00 a.m. the Board reconvened in Open Session in the Vogel Room. It was moved and seconded to recess to Executive Session for a continuation of discussion of a personnel matter of non-elected personnel and to reconvene in Open Session not later than 9:10 a.m.
At 9:08 a.m. the Board reconvened in Open Session. The Board Chair reported the Board of Regents had been in Executive Session for the purpose of discussing a personnel matter related to non-elected personnel.
It was moved and seconded to award a salary increase of 7 percent to President Farley. Each of the members of the Board of Regents expressed appreciation for all of the hard work and time President Farley has expended for and on behalf of the University. President Farley said it was very kind of everyone to say such nice things, but he said it's not me, it is the people out here on the campus who are doing what they do which has resulted in the growth of the University. He said people here are enthusiastic and they enjoy working here. He said "I really do appreciate what you say, but it's credit to all the persons who work at Washburn University to whom the credit must go." He also noted that the success of the Board is also because it has been so supportive. If it had not been so supportive, many of the accomplishments which we have achieved would not have happened.
There followed then a discussion of the University's Mission Statement, a review, with Vice President for Academic Affairs, Dr. Ron Wasserstein, and faculty representative Dr. Steve Angel, of the institutional planning process and a brief discussion on potential priority projects for future fundraising.
It was moved and seconded to recess to Executive Session for the purpose of consulting with legal counsel and to reconvene in Open Session at 11:30 a.m. in the Vogel Room of the Memorial Union. Motion passed. The Board recessed to Executive Session at 10:45 a.m.
At 11:30 a.m. the Board reconvened in Open Session in the Vogel Room of the Memorial Union. The Board Chair reported that the Board had been in Executive Session for the purpose of consulting with its legal counsel and that no action had been taken.
The meeting adjourned at 11:32 a.m.
Kenneth P. Hackler
Secretary, Board of Regents