I. Call to Order
Chairperson Dick called the meeting to order at 7:23 p.m. in the Kansas Room of the Memorial Union.
II. Roll Call
Present were: Mr. Blair, Ms. DeBauge, Mr. Dick, Mr. Engel, Mr. Etzel, Mr. Felker, Mrs. Parks and Mr. Roth.
III. Approval of Minutes of September 28, 2001 meeting as mailed
It was moved and seconded to approve the Minutes of the September 28, 2001 meeting. Motion passed unanimously.
IV. Officer Reports
A. Chair's Report
Chairperson Dick remarked that since the last meeting of the Washburn Board of Regents there was the dedication of the Living Learning Center during what he called a "grand and glorious weekend." He said it was really fun to interact with students and it's apparent the facility is really accomplishing what we intended.
He reported that, as part of the series of campus information sessions he's been conducting this year, there was a lunch with students last week which included Regents Parks and Engel. He said there was a broad diversity of students involved. He said it was a lot of fun to hear the students' perspectives and noted it seemed all the comments had to do with items other than academics.
B. President's Report
President Farley reported, after noting the matter had been reported in the media, that Washburn University recently received a rather large gift. He said we were "grateful but surprised" to receive $2 million gift from Zola Desmond. He said the funds will be managed by Commerce Bank and Trust and the University will receive earnings from the endowment funds which will be used primarily for scholarships.
Dr. Farley said Tuesday, November 6, was Math Day at the University. He said there was a tremendous number of students from 28 different high schools on the campus. He said some of those are from Missouri. President Farley reported that coming up on December 1 will be the annual High Q on-campus competition to identify those teams which will participate in the televised version of High Q. He noted this is an activity that Regent Engel started some 19 years ago. He said it's a wonderful event and is appreciative of WIBW's continuing sponsorship of the event with us.
Finally, he said it was reported in the local news announcing the selection of a local high school teacher, Michiel Ford, as a Milken Foundation Award Recipient, who is a Washburn University graduate. He said this says a lot for our educational program here.
C. Treasurer's Report
Vice President for Administration and Treasurer, Wanda Hill, outlined the items set forth in agenda items IV. C. 1. Depository Security Transactions - September/October 2001; 2. Liquidated Claims Approval - September 2001; and, 3. Public Fund Investments - September 2001. It was moved and seconded to approve the items. Motion passed unanimously.
Vice President Hill gave an overview of the change orders set forth in agenda items IV. C. 4. Change Orders - Living Learning Center Project and 5. Change Orders - Memorial Union. It was moved and seconded to approve the change orders.
D. Finance Committee Report
Vice Chair Engel reported that the Finance Committee met October 30 for about 90 minutes.
1. 2000-2001 Audit Report - Berberich Trahan & Co., P.A.
Regent Engel said the first half of the meeting was dedicated to a review of this year's audit report by Berberich Trahan & Co., P.A. with one of the principles, Brad Koehn. He said overall it's a positive report. He said there was one item noted, however, and that was there were three instances where persons were to have been interviewed prior to the disbursement of loan funds when the interview did not occur. Otherwise, he said the report is very good. It was moved and seconded to receive the audit report. Motion passed unanimously.
2. Quarterly Report for Quarter Ended September 30, 2001
Regent Engel said the second portion of the last Finance Committee meeting was an overview of the quarterly report for the quarter ending September 30, 2001. He said the revenue is down below what we had originally anticipated in the Living Learning Center but that it's counter-balanced by the increase in enrollment. He said the committee was advised by the administration there was no need to change any line items at the present with which they concur.
V. New Business
A. Action Items
1. Authority to Refund the callable portion of $16,205,000, 1999 Series Revenue Bonds issued November 1, 1999
President Farley began by saying that due to the current economic conditions income from investments has declined from that which was anticipated but, he noted, this presents an opportunity from another side to save money on our indebtedness.
The proposal is for an advance refunding of the LLC bonds. Essentially under this proposal the bond issuance would create a trust and the new funds would be placed in that account so earnings will match the debt service on the existing outstanding indebtedness. He said the last time the numbers were run last spring the University could have saved $880,000; now, with the situation today, there would be no savings. In any event, he said in conjunction with bond counsel and our financial advisor, Don Jensen and John McArthur respectively, the administration believes there is a need to authorize a committee to take an action at a propitious time to be able to achieve savings on our bonded indebtedness. This would result in savings of about three percent.
In response to a question from Chairperson Dick about whether rates were now low enough to recall the existing bonds instead of doing the advance refunding, financial advisor McArthur said the current issue has a bond feature which prohibits the issuance of refunding bonds until 2010.
It was moved and seconded to authorize the publication of the intent of the Washburn Board of Regents to issue revenue bonds for advance refund of the 1999 Series Revenue Bonds and to create a committee comprised of the Board Chair, Vice Chair, President and Treasurer to have the authority to negotiate the sale of the advance refund bonds. Motion passed unanimously.
2. Authority to Bond the Student Wellness/Fitness Center, Moore Bowl improvements, KTWU improvements, and Student Union remodeling
President Farley said the purpose is to issue bonds to finance construction of various projects -- the Student Wellness/Fitness Center ($5 million); the Moore Bowl improvements ($2 million); the KTWU tower project ($1.5 million); and, Student Union renovation ($2.44 million).
Responding to a question from Regent Etzel whether there might be better rates ahead were we to wait a little longer, Financial Advisor McArthur said the current low rates are reflecting forward looking conditions and with respect to a question from Vice Chair Engel whether there might be an adverse effect on the University's ability to use the Debt Retirement and Construction Fund (3 mill fund) given that the bonds would be secured by gross revenue from the student union and Living Learning Center operations and funds available from the 3 mill fund, Bond Counsel Jensen said the bond covenant reciting security by the 3 mill fund won't affect the ability of the University to use the 3 mill fund.
It was moved and seconded to authorize the publication of the intent of the Board to issue revenue bonds for the Student Union renovation project and to authorize the project; publication of the intent to issue revenue bonds for the Student Wellness/Fitness Center project, Moore Bowl improvements and KTWU tower project; and, for establishment of a committee comprised of the Board Chair, Vice Chair, President and Treasurer authorized to negotiate the sale of the bonds. Motion passed unanimously.
B. Consent Agenda
It was moved and seconded to approve the Consent Agenda. Motion passed unanimously.
As approved by the Board of Regents:
1. Fiber Optic Network for Fire Alarm System
award of contracts to Torgeson Electric for $123,700 and to Simplex for $17,650 to install fiber optic network for fire alarm system;
2. Re-roofing for Mabee Library
award of contract to Vincent Roofing for $102,000 to re-roof Mabee Library;
a. Personnel Action - Administrative Staff
change in title and salary for: Susan Jarchow to Assistant Director, ITS, at an annual salary of $55,008; and Eileen Brouddus to Senior Web Developer at an annual salary of $31,512.; and,
4. Report of Purchases between $25,001 and $50,000
ratification of the following procurements: purchase 39 Netstations and related equipment from Ikon, Inc. in the amount of $42,340.24; broadcast buildings, equipment and tower insurance through Topeka Insurers in the amount of $44,979; renewal of Athletic Injury Policy with Flynn & Associates for $29,192; cleaning, tuckpointing and water-proofing Garvey Hall by Restoration & Waterproofing in the amount of $25,123; printers from MTC, Inc. in the amount of $32,070; computers from Dell Computers in the amount of $25,185; public address system upgrade for Lee Arena from Dodge Electronics for $43,343.08; and, installation of temperature controls for Petro Allied Health Center from Honeywell, Inc. in the amount of $46,750.
C. Information Items
1. Summary of Program Review activities during academic year 2000-2001
President Farley reported that the information item is a summary of the program review reports made by the program review committee. He said for the most part these are all very good and the units are meeting their goals and, overall, it reflects a positive year.
Vice Chair Engel reported the next meeting of the Finance Committee will be November 29 at 10:00 a.m. and will be for the purpose of having a first discussion for monies available for salaries to be awarded in fiscal year 2002.
It was moved and seconded to recess to Executive Session for the purpose of discussing a legal matter and to reconvene in open session at 8:35 p.m. in the Kansas Room of the Memorial Union. Motion passed unanimously. The Board recessed to Executive Session at 8:20 p.m.
At 8:35 p.m. the Board reconvened in open session in the Kansas Room of the Memorial Union. It was moved and seconded to recess to Executive Session for the purpose of discussing a legal matter and to reconvene in open session not later than 9:35 p.m. in the Kansas Room of the Memorial Union.
At 9:30 p.m. the Board reconvened in open session.
It was moved and seconded to adjourn.
Kenneth P. Hackler
Secretary, Board of Regents