I. Call to Order
Chairperson Engel called the meeting of the Board of Regents to order at 4:15 p.m. in the Kansas Room of the Memorial Union for the purpose of conducting the Public Budget Hearing on the Fiscal Year 2003 budget for the University.
II. Roll Call
Present were: Mr. Blair, Mr. Dick, Mr. Engel, Mr. Etzel, Mr. Felker, Mrs. Lee, Mrs. Parks and Mr. Roth.
IV. FY 2003 PUBLIC BUDGET HEARING
Chairperson Engel declared the public hearing open and invited persons wishing to be heard to be recognized. When no one requested to be recognized after a second invitation to be heard, Chairperson Engel then recognized Vice President for Administration and Treasurer Hill who summarized the public budget documents included in the agenda item identified as IV in the Board of Regents agenda. Thereafter, it was moved and seconded to approve the public budget for fiscal year 2003 as presented in agenda item IV. Motion passed unanimously. Chairperson Engel declared the Public Budget Hearing adjourned. The hearing adjourned at 4:25 p.m.
Kenneth P. Hackler
Secretary, Board of Regents
I. Call to Order
Chairperson Engel called the business meeting of the Washburn University Board of Regents to order at 4:25 p.m. in the Kansas Room of the Memorial Union and asked the Secretary reflect the attendance is the same as those who were in attendance at the Public Budget Hearing immediately preceeding.
III. Approval of Minutes of June 12, 2002 meeting as mailed
It was moved and seconded to approve the Minutes of the June 12, 2002 as mailed. Motion passed unanimously.
V. Officer Reports
A. Chair's Report
Chairperson Engel began by noting that Hal Dick, the immediate past chair, had a really good year as chair for the Washburn University Board of Regents notwithstanding he put 14,000 miles on his new car while traveling on University business. Among the accomplishments of the University, noted by Mr. Engel, during Mr. Dick's year as chair were: the Living/Learning Center completion, Memorial Union renovation, Lee Arena renovation, bond issuance for LLC/KTWU tower and others, the commencement of the construction of the KTWU tower, and the large salary increase benefitting the faculty and staff of the institution. He also noted the institution ended up in the black for the fiscal year. Mr. Engel said there also were some tense times in the past year with the Kansas Board of Regents and the Kansas Legislature during the 2002 Session which resulted in a compromise on some issues in Senate Bill 647.
Chairperson Engel then reported there were some interesting times during the past year and wished to report to the Regents some of Regent Dick's sayings which he identified as "Halisms." He said that while Regent Dick is a distinguished graduate of Washburn University and a recipient of a Harvard degree, he's just a Kansas boy at heart and some of those "Halisms" are: "I've seen that coming down the pike," "That dog won't hunt," "Toss it in the fire," "Add a little kerosene," "It's time to poke 'em in the eye," and, "Time to kiss and make up." Regent Engel concluded by congratulating Mr. Dick on his year of service to the institution and presented him with a small token, a gavel and sounding block, for his having served as chair.
1. FY 2003 Meeting Schedule
The Chairperson then moved on to what he referred to as some 'housekeeping items,' noting that agenda item V.A.1. is a proposed meeting schedule for the fiscal year and that the schedule calls for the next meeting of the Board to be a retreat on the weekend of September 13-14 at the scene of the first retreat conducted upon Dr. Farley's arrival as President. He asked whether persons had any conflicts or wanted to consider changing any of the meetings. The only conflict noted was that Regent Parks would be unable to attend the retreat in September.
B. Committee Report(s)
1. FY 2003 Budget Guidelines
Chairperson Engel then moved on to agenda item V.B. noting that the Finance Committee last met on July 10 during which they determined that a conservative estimate of new revenue available for the institution is approximately $3 million in the form of increased enrollment revenue, an increase in student tuition per credit hour proposed at $10 per credit hour and a conservative increase in the amount of sales tax of $600,000 as it appears that the sales tax revenue is returning to its previous levels, though slowly. He said the committee did not include any increase in state aid.
Among the uses identified for the increased revenue were the Administration Information Systems project, increase in fringe benefits and salary for faculty and staff, an increase in the amount for utilities, health insurance costs, $150,000 increase in scholarship funding, $100,000 increase in athletic programming, $600,000 in one-time expenses, and $500,000 in a contingency fund. He said the committee is recommending a salary pool of 2 percent commencing with the second quarter of the fiscal year; a $10 increase in student credit hour tuition for residents, of a 9 percent increase in tuition. It was moved and seconded to accept the Budget Guidelines proposed in agenda item V.B.1. Motion passed unanimously.
2. Revisions to Classified Compensation Schedule
Chairperson Engel also noted there were proposed adjustments to the classified compensation scheduled outlined in agenda item V.B.2. which are being recommended by the Finance Committee. It was moved and seconded to approve the proposed revisions to the 2002-2003 Classified Compensation Schedule as presented. Motion passed unanimously.
C. President's Report
President Farley announced for those who might have missed it, though unlikely, that the University was one of the sites for the state Sunflower Games which began last weekend and will continue this weekend. He said it's been a great success so far and commended the University community and the city of Topeka for exerting a great deal of energy on behalf of putting on these games.
He noted the administration is publishing a tabloid with the Topeka Capital Journal which will be distributed to subscribers and available for distribution to others. This will be a promotional piece which will include the recitation of positive things occurring on the campus such as our increase in enrollment and other campus projects. He said it will also include photographs of the institution and its people and also mentioned the Board Chair will be asked to write a piece for inclusion. He said the tabloid will be included in the August 25 Sunday edition of the Topeka Capital Journal.
President Farley asked the Dean of Enrollment Management, Al Dickes, to make a brief presentation concerning the summer orientation programs held on campus.
Dean Dickes reported there were five orientation sessions conducted during the summer and a session for transfer students. He said these sessions were primarily for academic planning such as preparing the schedule and so forth. He said following these five sessions there were almost 1,000 students who have pre-registered in 13,000 student credit hours, equated to 13.1 credit hours per student. He said this represents an increase of 37 percent in student credit hours and 31 percent in headcount. He said this will serve as an excellent foundation for our fall 2002 semester. He reported there is a challenge presented in that the deans will be contacted concerning the closed class list so as to be able to make adjustments for regular enrollment which is scheduled for August 13-14.
Dr. Farley added that notwithstanding the apparent substantial increase in enrollment, the University still will have a low faculty/student ratio which is part of the reason why there is an increase in enrollment.
D. Treasurer's Report
Vice President for Administration and Treasurer summarized the information set forth in agenda items V.D. 1. Depository Security Transactions, 2. Liquidated Claims Approval - June 2002, and 3. Public Fund Investments - June, 2002. It was moved and seconded to approve the Treasurer's Report. Motion passed unanimously.
VI. New Business
A. Consent Agenda
Chairperson Engel noted there is a slight change in the presentation of the agenda, with the consent agenda items being placed at the beginning of the new business rather than after the separate action items. He inquired whether anyone wanted to consider any of the items separately. It was moved and seconded to approve the Consent Agenda. Motion passed unanimously.
1. Report of Purchases between $25,001 and $50,000
purchase Apple computers for Mass Media Dept. from Apple Computer, Inc. in the amount of $26,460.20; purchase digital printer/copier in the Service Area from IKON Office Solution in the amount of $37,971; Phase III bat guano abatement project in Garvey Fine Arts Center by Associated Insulation, Inc. in the amount of $40,000; clean, tuckpoint and waterproof Whiting Hall by Restoration & Waterproofing in the amount of $35,648; painting in Mabee Library by J. F. McGivern, Inc. in the amount of $31,500; reinsulation services for asbestos abastement by H & C Industrial in the amount of $33,550; shower remodeling in Kuehne and West Halls by McElroy's, Inc. in the amount of $39,441.34;
2. Faculty Personnel - O'Neil
grant leave of absence for 2002-2003 academic year to Associate Professor Jalen O'Neil in the School of Law; and,
3. Faculty and Academic and Administrative Staff Changes
approval of faculty, academic and administrative staff changes detailed in attachments to agenda item VI.A.3.
B. Action Items:
1. University Health Plan
President Farley reported the University-wide fringe benefit committee has been working for the past six to eight months on addressing the health insurance program for the University as they were asked to get out front on health care and the renewal of the coverage. Dr. Farley noted that previously the renewal information was not available until late August/early September and the Board typically did not consider health insurance until the month of September so that enrollment period could commence in October and appropriate premium reductions and deductions from individuals' salaries could be made. He then introduced the chairperson of the University's fringe benefit committee, Associate Dean Allen Easley, and noted that Mr. Easley and the fringe benefit committee have done a tremendous job in studying and reporting on the matter with their recommendations.
Dean Easley reported that, with the aid of a health insurance consultant, Michael Eichten, they sent request for proposals to eight vendors and of those only four responded, one of which was Delta Dental which offered only a proposal for dental health coverage. Of the three remaining, Easley said one was Blue Cross Blue Shield which offered both fully insured and a self-funding option, and the other two provided self-funding options only.
Mr. Easley reported the options considered were to continue Blue Cross Blue Shield coverage fully funded as it presently is, the current Blue Cross Blue Shield coverage fully funded but slightly restructured, Blue Cross Blue Shield as self-funding option, and self-funding option with one of the other vendors. The committee selected the Blue Cross Blue Shield self-funding option noting there will continue to be increases in coverage but such increases will be at a reasonably predictable rate and that with self-funding option there will be significant savings for the University and for individual employees coupled with additional flexibility in the health insurance plan. He said Blue Cross Blue Shield has a slightly higher administrative charge for a self-funded plan in the $40,000-$60,000 range, but that is more than offset by savings over the other two vendors through the Blue Cross Blue Shield network and the discount provided by network by health care providers which, he said, have been conservatively estimated to be in the $200,000 range.
He said there are significant change in the health plans to be offered. He said instead of the current three plans it will be reduced to two, a base and a buy-up option. He said they did not include the current shared pay plan, also referred to as the 'cadillac plan' as Blue Cross Blue Shield no longer offers it to new groups and that it's a rich plan for employees and the bulk of the increase in cost is borne by Blue Cross Blue Shield which end up in additional higher premium costs to the University.
Mr. Easley reported both the base and buy-up plans have benefits to employees, noting that neither plan requires referrals, as was the case with the Blue Select plan currently provided some employees, and a proposed office visit co-pay of $20 or $15 depending upon the option selected. He also reported the plan strongly encourages the use of generic prescription medicines with a co-pay of $5 versus $30 for a specific prescription, and there will also be a movement to four tiers of coverage versus the current two tier coverage. He said the four tier coverage is offered presently the State, City and County and that it, frankly, has been expected by new employees who report being shocked or dismayed when they learn that the University does not have such coverage.
Dr. Farley indicated he recently had the opportunity to speak with a Huett Associates consultant on health insurance who said our proposed course of action is in line with others across the country as more employers are moving to self-funding and requiring employees to pay more. He also said the consultant said there already is a significant drop-off in local, smaller HMOs and it is likely in the near future for the larger HMOs to taper off as well a cost savings have been rung out of the system.
Dr. Farley said the plan will require a great deal of educational effort to provide employees with information concerning the new coverages. He also said there will be proposals returned to the University shortly concerning a wellness program. It was moved and seconded to approve the administration to contract with Blue Cross Blue Shield to be the third party administrator of a self-funded University health plan. Motion passed unanimously.
a. Bylaws Amendment, Article V. 7 Joint Faculty Appointments - First Reading
President Farley asked University Counsel, Ken Hackler, to make a brief presentation on the proposal in light of the Vice President for Academic Affairs' absence due to a conflict. Mr. Hackler noted that the primary difference between part-time faculty and full-time faculty is that part-time faculty may not petition for tenure and this proposal allows for those individuals who are part time and sharing a single faculty position to petition for and be awarded tenure. He summarized then the proposed Bylaws noting that Bylaw amendment is on first reading and that it should be advanced to a second reading at the next meeting. It was moved and seconded advance the proposed Bylaw Amendment for Article V. 7 as presented in the agenda item to second reading at the September Board of Regents meeting.
3. Completion of Design Development and Construction Document Phase for the addition to and renovation of Moore Bowl. Authorize DdY, architects, to proceed to bidding
President Farley asked Vice President for Administration and Treasurer, Wanda Hill, to make a brief presentation on the proposed item.
Vice President Hill reported that DdY has updated the drawings for the proposed Moore Bowl project, reporting the project presently is estimated to come in at $4,212,898 with a 5 percent contingency of $187,300, including $137,000 available for ancillary projects. He said the Washburn Endowment Association has raised funding exceeding the 85 percent funding requirement and that if authorized to proceed, it would anticipate bid openings on August 30, allowing sufficient time to analyze the bid responses and make a recommendation of a contract award for the September 13 Board meeting. It was moved and seconded to authorize DdY to conclude the design development and construction document phase and proceed to the development of bid documents and bidding. Motion passed unanimously.
4. KTWU - FY 2003 Membership Fees
It was moved and seconded to approve the membership fees identified in agenda item VI.B.4. Motion passed unanimously.
5. Ratification of Purchase of Air Conditioning/Heating System in Football Locker Room at Petro
It was moved and seconded to ratify the purchase of an aid conditioning/heating system from McElroy's in the amount of $74,630. Motion passed unanimously.
6. Kansas Board of Regents Performance Indicators Report 2002
It was moved and seconded to receive the performance indicators report attached to the agenda item and forward to the Kansas Board of Regents. Motion passed unanimously.
Chairperson Engel reported he had a few 'housekeeping' items he'd like to take care of. First, he noted the current agreement with Washburn Endowment Association has the chair of the Board of Regents as an ex-officio representative to the executive committee of the Washburn Endowment Association. He said inasmuch as he would be in conflict, as he is counsel for WEA, he has asked that Regent Dick serve as the ex-officio executive from the University in lieu of himself. It was moved and seconded. Motion passed unanimously.
The Chair then reported he would like to reconstitute a finance committee for fiscal year 2003 comprised of Regent Etzel as chair and Regents Felker and Blair, and requested those appointments be ratified. It was moved and seconded to ratify the appointments of Regents Etzel as chair of the finance committee, along with members Regents Felker and Blair. Motion passed unanimously.
Mr. Engel reported the Kansas Board of Regents will be holding its annual Regents Retreat in August this year to be held in the remote location, just north of Howard, and that he would attempt to attend at least a part of it.
The Chair then requested a motion for the purpose of recessing to Executive Session for the purpose of discussing employer/employee negotiations and to reconvene in open session at 5:30 p.m. in the Kansas Room of the Memorial Union. Motion passed unanimously. The Board recessed to Executive Session in the Kansas Room at 5:20 p.m.
The Board reconvened in open session in the Kansas Room of the Memorial Union at 5:30 p.m. Chairperson Engel reported the Board had been in Executive Session for the purpose of discussing employee/employer negotiations and that no action had been taken. It was moved and seconded to ratify a one-year memorandum of agreement with Local 307L-4 of the United Steelworkers of America. Motion passed unanimously.
The Board Chair then requested a motion to recess to Executive Session for the purpose of discussing a legal matter with University Counsel and to reconvene in open session at 5:35 p.m. Motion passed unanimously. The Board recessed to Executive Session at 5:30 p.m.
At 5:35 p.m. the Board reconvened in open session in the Kansas Room of the Memorial Union. Chairperson Engel reported that Board had been in Executive Session for the purpose of discussing a legal matter with University Counsel and that no action had been taken.
It was moved and seconded to adjourn. Motion passed. The meeting adjourned at 5:36 p.m.
Kenneth P. Hackler
Secretary, Board of Regents