WASHBURN UNIVERSITY OF TOPEKA BOARD OF REGENTS MINUTES May 13, 1998 _______________________________________________ I. Chairperson Parks called the meeting of the Board of Regents to order at 6:11 p.m. in the Kansas Room of the Memorial Union. II. Present were: Mr. Craig, Mr. Dick, Mr. Ferrell, Mrs. Parks, Mrs. Porter, Mr. Roth and Dr. Ybarra. III. It was moved and seconded to approve the minutes of the April 15, 1998 meeting as circulated. Motion passed unanimously. It was moved and seconded to recess to Executive Session for the purpose of discussing a legal matter with Counsel and to reconvene in open session at 6:30 p.m. in the Kansas Room of the Memorial Union. Motion passed. Regent Engel arrived at 6:20 p.m. At 6:30 p.m. the Board reconvened in open session in the Kansas Room of the Memorial Union. The Board Chair declared a recess for approximately 10 minutes. At 6:40 p.m. the Board reconvened in open session in the Kansas Room of the Memorial Union. IV. President's Report President Farley began his President's Report by noting that this weekend is commencement weekend and he welcomed one and all to attend the various activities scheduled for the weekend. Dr. Farley announced that Washburn University has had two students recently approved as Rotary Scholars. He also introduced Scott Johnson, the new W.S.A. president, and noted that Mr. Johnson has been very successful in the debate forensics field and that the University's debate team finished the season 13th in the nation. Dr. Farley reported that the 12th annual Sunflower Music Festival will be held on the University's campus June 5-13. He said there will be nine concerts over the eight day period. He noted that White Concert Hall, where these concerts are held, frequently is filled to capacity. He also announced that the sixth annual Mulvane Art Center Mountain Plains Exhibit will be held on June 6 and 7 and invited folks to attend that as well. President Farley reported that Washburn University will be featured in the display case at the national headquarters of Teachers Insurance Annuity Association on Third Avenue in New York City beginning Thursday, May 21. He said the display will be mounted for approximately a month. TIAA has approximately 2,700 participating institutions and features on a monthly basis one of its institutions. Dr. Farley announced the creation of a Theo Landon scholarship fund resulting from the auction of some of the Landon family possessions. He said that Nancy Landon Baker has been extraordinarily gracious and has agreed to pay the expenses of the auction of approximately $15,000, so the net to the scholarship fund will be approximately $70,000. President Farley announced that the University recently hired Tim Peterson, who presently is employed by the Kansas Board of Regents, to become the University's new Director of Continuing Education. Dr. Farley said that Dr. Peterson will be helping not only in the field of continuing education but also in distance learning. He noted that previous employment of Dr. Peterson includes a stint at Kansas State University, the Kansas Board of Regents, and that he has his Ph.D. in educational policy from the University of Maryland. Dr. Farley commended Dr. Shel Cohen and Mr. Monical for participating and hosting of events of the Turnaround Team on the University's campus. He said the University has provided the forum for the group to meet and discuss issues of importance in their efforts. President Farley said that as the University and the Washburn Endowment Association look forward to the potential of conducting a capital fundraising campaign that an expert is needed to come to campus for assessing the potential. He said that Jerry Clevenger, president of the WEA, has taken leadership in this. He said the WEA was able to attract top notch firms in the country to participate in the selection of such a consultant. He said that a committee comprised of Ben Blair, Rudy Wrenick, Mr. Clevenger and himself interviewed the top candidates and they have selected Bentz Whaley Flessner. Dr. Farley noted that in 1998 the then Board of Regents approved the award of honorary degrees to a husband and wife combination. Only one could attend the commencement proceedings at which the honorary degrees were conferred. The other was unable to leave his country. He said that now the husband is able to leave the country and will be making a state visit to Washington in June. He said President Kim of Korea has expressed an interest in receiving the honorary degree but it is unknown whether he is able to make a trip to Topeka to pick it up. Dr. Farley suggested that perhaps he and the Board Chair Blanche Parks could visit Washington this summer and make the presentation to him if it is able to be worked out. V. New Business A. Action Items 1. FY 99 Budget Dr. Farley began the presentation on the FY 99 Budget by noting that the general guidelines for the budget had been adopted by the Board of Regents at its January meeting and they are set forth generally on the top page of the agenda item. He then introduced Vice President for Administration and Treasurer, John Moore, to make a presentation. Mr. Moore's presentation was a PowerPoint computer presentation, a copy of which is appended to these Minutes. In response to questions from members of the Board, President Farley indicated that the salary increase helps the University maintain its competitiveness with its peer institutions and noted that the administration will make a presentation to the Board of Regents at its June meeting showing the data gleaned from its salary study upon which the salary increase recommendations for the fiscal year 2000 will be made. He also indicated that there have been faculty members leaving the University, for increases in salary, that the number is not in the dozens but that there are some. He said also that in the development of the budget the administration focused on not increasing the mill levy. He expressed his gratitude to Governor Graves for recommending increases to Washburn on a different basis than the institutions in the Kansas Board of Regents system and commended also the Kansas Board of Regents as it expressed no opposition to that treatment. He expressed his thanks also to Mr. Moore and those who helped him, Bill Radcliffe, Dolores Lewis, Shel Cohen and others. In response to a question about the $200,000 item earmarked as special programs, he said there are two areas presently being focused on as potential items for receipt of these funds: one is technology and the other is a program for leadership initiative. He said that he would like the administration to be able to devote sufficient funds to one, possibly two, items so that the amount of money would make a substantial difference at the University rather than spreading it across the University as a whole. He said one of the items, the leadership initiative, is an exciting program which could require substantial sums of money to conduct properly and noted the amount of money available in next year's budget "primes the pump to get it started" and to assist in the integration of such a program in the University's curriculum. Dr. Farley said he intends to come back to the Board on this subject at the next meeting. It was moved and seconded to give preliminary approval to the proposed budget for fiscal year 1999 as expressed in the agenda item and attachments. Motion passed unanimously. 2. FY 00 Preliminary Budget Request President Farley outlined for members of the Board of Regents the proposed guidelines followed by the Kansas Board of Regents for institutions in that system to develop proposals for their respective budgets in FY 2000. He said the proposed guidelines of the administration for the Washburn budget in fiscal year 2000 does not include a tuition increase. He said students at Washburn are getting a quality education. He said tuition levels at Washburn compare favorably with institutions in the Regents' system but noted a disparity in the amount of the various universities' budgets funded by tuition. He said at Washburn student tuition dollars fund approximately 41% of the total E&G budget while at the other public institutions in the state it's less than 25% of their respective budgets. He would like to propose "that the state steps up to balance that out." He called attention to the last asterisked item in the proposed preliminary FY 2000 guidelines providing for the development of outcome based performance measures. He said that is an item to give the University the opportunity to demonstrate accountability to the residents of the state of Kansas and to gain additional credibility. He said these guidelines will be modeled after indicators of the Kansas Board of Regents as well as similar indicators from the states of Florida, Tennessee and South Carolina. It was moved and seconded to approve the FY 2000 Preliminary Budget Guidelines as outlined in the agenda item. Motion passed unanimously. 3. Washburn University Retirement Program President Farley made the recommendation for changes in the Washburn University Retirement Program to increase the University's contribution from 9% to 10% of an employee's annual basic salary and to institute a three- year vesting period. He said the goals of the proposal are to provide an adequate level of retirement benefits for employees with long term service to the University, to move the targeted outcome in the first year of retirement to approximately 60% of the individual's replacement income, and to encourage or continue service to the University. During discussion on the proposal, attention focused on the rate of return on investment placed in retirement, the percentage increase recommended, the length of an appropriate vesting period, and literature in support of providing replacement income for first year retirees in a range of 60%-80% of their final salaries. It was moved and seconded to table the item to gain additional information and data for consideration. On a show of hands, the motion to table was adopted by a vote of 4-3. 4. KSDOE Equipment Grant Proposal It was moved and seconded to approve the grant proposal requesting $270,733 from the Kansas Board of Education for acquisition of technology equipment. Motion passed unanimously. B. Consent Agenda It was moved and seconded to approve the consent agenda outlined in agenda items V.B.1. through 5. Motion passed unanimously. As adopted by the Board of Regents: 1. Faculty Personnel: Dr. Laura Stephenson, Associate Professor of Psychology, was granted a leave of absence without pay for the 1998-99 academic year; 2. Voluntary Phased Retirement: the Board approved the Voluntary Phased Retirement Agreement for Dr. Donald E. Phillips for a two-year period as shown in the agreement attached to the agenda item; 3. Expenditures over $25,000: a. Corridor Floor Tile Replacement - Stoffer Hall: the award of a contract to Zack Taylor Contracting Inc. in the amount of $81,789.00 for replacement of the floor tile in the corridors of Stoffer Hall; 4. Liquidated Claims Approval - April 1998; and, 5. Public Fund Investments as set forth in the agenda items. C. Information Items 1. Campus Residential Life President Farley began the presentation on the item by noting that the administration previously discussed with the Board, in February and in March, the underlying concepts for marketing and recruitment and the role of additional on-campus residential space for students. He noted that there is a need to phase out Carruth Hall, which provides moving opportunities for approximately 65 students, and a need to provide housing for approximately 400 students. He said that the vision of the administration is for a "true" living/learning center to create an environment for our students where learning can take place rather than merely warehousing students. He said the space proposed would be appropriate for students coming to the University from home and would include state-of-the-art technology. There would also be increased interaction between students and faculty as it is hoped space in this residential facility could be created to house faculty members. The proposal also includes study rooms, seminar rooms, a multi-purpose room and enhanced food service. The project would be financed primarily through revenue bonds, which are self-liquidating, but there would be a substantial need for private funding as a component. The project envisioned would be an approximately $15 million project, of which $2.5 million would be from private funding. He said he hoped the institution would be able to open the new housing by the fall of 2001. He reported that the administration envisions that the housing to be constructed would be an architecturally compatible building in terms of colors and style with the remainder of the University's buildings on campus and that as proposed initially the new residential living space would be adjacent to the Memorial Union. The present concept contemplates that Jewell Street would be closed off and a pedestrian mall would replace it. He said the proposal would include drop-off space within the parking lot just south of the Bradbury Thompson Center to allow drop-off of patrons attending events at either the Bradbury Thompson Center. White Concert Hall or the Mulvane. He said the rendering circulated, copies of which are appended, are just conceptual only to show the proposed concept. He did note that the University does have more than adequate parking to accommodate students even with elimination of the small parking lot on the west side of the Memorial Union. Regent Dick indicated his support for the proposed campus residential living center, saying he knows personally of three student athletes from his community who would have attended Washburn had there been a student centered environment, including housing. He said that if he knows of three in his community there likely are hundreds in the state of Kansas who would have attended Washburn had there been appropriate student centered living environment. It was moved and seconded to give approval to the preliminary concept authorizing the administration to expend $280,000 for preliminary design development and selection of an architect to guide the institution's administration in the development of the concept. Motion passed unanimously. 2. Admission Standards Dean of Enrollment Management, Al Dickes, made a PowerPoint presentation (slide handout is appended). Mr. Dickes noted that immediately following the adoption of the qualified admissions standards by the Kansas Legislature and Kansas Board of Regents several years ago, students had made a presentation to the Washburn Board of Regents, then chaired by Regent Roth, proposing that the University adopt admission standards. He said the University's administration has been studying the issue for a year now and the current proposal is based upon the characteristics of students for whom we are looking to have on our campus in 2001. Mr. Dickes emphasized, in response to questions, that the standards proposed do not exclude any persons from attending Washburn; rather, the standards are developed to promote student success. Mr. Dickes reported that the administration will continue to work on the proposed guidelines and will bring them back to the Board at a future meeting. It was moved and seconded that Board of Regents meetings no longer be held where Regents have to sit on hard wood chairs. Motion passed. It was moved and seconded to recess to Executive Session for the purpose of discussing a personnel item and to return to open session in the Kansas Room of the Memorial Union at 9:25 p.m. Motion passed unanimously. The Board recessed to Executive Session in the Cottonwood Room at 9:12 p.m. At 9:25 p.m. the Board reconvened in open session. It was moved and seconded to recess to Executive Session for purposes of discussing a personnel matter for a period of ten minutes and to reconvene at 9:35 p.m. in the Kansas Room of the Memorial Union. Motion passed unanimously. The Board recessed to Executive Session in the Cottonwood Room. At 9:35 p.m. the Board reconvened in open session. It was moved and seconded to recess to Executive Session for purposes of discussing a personnel matter and to reconvene in open session at 9:45 p.m. in the Kansas Room of the Memorial Union. Motion passed unanimously. The Board recessed to Executive Session in the Cottonwood Room. At 9:45 p.m. the Board reconvened in open session in the Kansas Room of the Memorial Union. It was moved and seconded to approve the appointment of Juliann Mazacek as Dean of the School of Business for a 12-month period beginning July 1, 1998 at an annual basic salary of $85,000. Motion passed unanimously. It was moved and seconded to ratify the wage increase negotiated with representatives of USW Local 851 as set forth in revised Appendix A to the Memorandum of Agreement with Local 851 and Washburn University. Motion passed unanimously. It was moved and seconded to adjourn. The meeting of the Board of Regents adjourned at 9:50 p.m. ________________________ Kenneth P. Hackler Secretary, Board of Regents