WASHBURN UNIVERSITY OF TOPEKA BOARD OF REGENTS A G E N D A ____________________________________________________________________________ DATE: November 14, 1997 BUSINESS MEETING: - 1:00 p.m. Cottonwood Room BOARD RETREAT: Nov. 14 - 2:00 p.m. International House Nov. 15 - 9:00 a.m. International House ____________________________________________________________________________ I. Call to Order Chairperson Parks II. Roll Call Mr. Craig Mrs. Porter Mr. Dick Mr. Roth Mr. Engel Mrs. Wagnon Mr. Ferrell Dr. Ybarra Mrs. Parks III. Approval of Minutes of October 8, 1997 meeting as circulated. IV. President's Report V. New Business A. Action Items: 1. Supplemental Request for State Funding Dr. Farley 2. 1996-97 Audit Reports Mr. Mosiman 3. Auxiliary Enterprise Funding Plan Mr. Mosiman 4. Athletics Fundraiser Initiative Dr. Farley B. Consent Agenda: 1. Expenditures over $25,000 a. Cleaning, Tuckpointing & Waterproofing Mr. Mosiman b. Purchase of 10 LCD Projectors Mr. Mosiman c. Computer Rental for LightWave 3D Hands-on Training Workshops Mr. Mosiman d. Liquidated Claims Approval Mr. Mosiman e. Public Fund Investments Mr. Mosiman f. Depository Security Transactions Mr. Mosiman 2. Personnel a. Personnel Salary Increase - Asst. Controller Mr. Mosiman b. Proposed 1998-99 Classified Compensation Schedule Mr. Mosiman c. Personnel Appointment - Brown Mr. Mosiman d. Personnel Appointment - Hewitt Mr. Mosiman VI. EXECUTIVE SESSION Agenda Item No. V.A.1. Washburn University Board of Regents SUBJECT: Supplemental Request for State Funding DESCRIPTION: The current health of the state's economy has generated a potential increase in the availability of state financial resources. The Governor has publicly indicated an interest in considering "one time" proposals for improvements which do not have ongoing state financial obligations. Attached is a letter to the Governor with a preliminary proposal requesting funding for Washburn University's LINKS Center (Learning Integrated Networks for Kansas Students). This proposal was submitted to the Governor on October 29 and is a request for $14.8 million to construct and equip an 80,000 sq. ft. structure linking Mabee Library and Henderson Learning Resources Center. This project proposal emerges from the University's facilities master plan and the long range proposals developed by the Electronic Technology Committee. It proposes to link in a single central location academic and student support services, library resources, electronic resources, two-way interactive video and Internet capabilities which can be physically or electronically available 24 hours a day. The proposal addresses physical space needs on the campus, changing educational expectations and aspirations on the part of students and the need to provide electronically the complete array of academic and academic support services. This proposal represents a first for Washburn University. Washburn is a "state" institution which attracts students from across Kansas and has alumni residing in every county. Yet, without any previous financial support from the state of Kansas, Washburn has constructed a physical plant of over 1,000,000 sq. ft. with a value of $100 million. Because of the potential availability of "one time" financial resources, the opportunity presented itself to make a request for capital funds to enhance the learning environment at Washburn University. The administration submitted this particular proposal because it is consistent and in compliance with previously approved Board of Regents plans and policies. FINANCIAL IMPLICATIONS: Approval by the Governor and the Kansas Legislature would result in approximately $14.8 million in capital and equipment resources being appropriated for Washburn University. It is intended that these dollars be committed in 1998 although the appropriations will need to be staged over a multi-year period. When constructed, the University will require additional annual funding for on-going maintenance and operations of the facility. At this time no significant increases in academic or academic support personnel is being contemplated as the new and reconfigured space should allow for a more effective and efficient use of existing personnel resources. RECOMMENDATION: President Farley recommends ratification of the administration's request. ________________________ _____________________________ (date) Jerry B. Farley, President Agenda Item No. V.A.2. Washburn University Board of Regents SUBJECT: 1996-97 Audit Reports - Berberich, Trahan & Co., P.A. DESCRIPTION: Attached are copies of the 1996-97 audits as performed by Berberich, Trahan & Co., P.A. These include: 1. Financial Statements with Supplementary Information; 2. Financial Statements with Federal Reporting; 3. Auditors Management Letter; and 4. Letter of projected 1997-98 fees. The auditors will present the audit reports to the Board of Regents. Article III, paragraph 1.d, "The Board shall arrange and supervise the annual audit of the books and securities of the University by a firm of certified public accountants. A copy of the annual audit report shall be made available to each member of the Board, the President, the Treasurer and filed by the Secretary with the official minutes of the Board." Berberich, Trahan & Co., P.A. has proposed to perform the 1997-98 audits under the same agreement used in past years. The proposed fee will increase by 2%-3% (current $33,000 budgeted). FINANCIAL IMPLICATIONS: N/A RECOMMENDATION: President Farley recommends that the Board accept the 1996-97 audit reports and appoint Berberich, Trahan & Co., P.A. to perform the 1997-98 audits. ________________________ _______________________________ (date) Jerry B. Farley, President Agenda Item No. V.A.3. Washburn University Board of Regents SUBJECT: Auxiliary Enterprise Funding Plan DESCRIPTION: The Student Union and Housing operations are considered to be auxiliary enterprises. Simply said this means that these operations are expected to pay for their costs with the revenue generated from the goods, services, or rent provided by the auxiliary. The auxiliaries are able to generate revenue adequate to pay for operational costs but they are not able to pay for all capital maintenance and/or facilities replacement. Data has been collected from other institutions to determine how their auxiliaries are funded. Other institutions appear to subsidize their auxiliaries in various ways, i.e., charge the University rental, do not charge the auxiliaries for overhead, and assess students Student Union Fees (higher than Washburn). The Administration has reviewed several different funding options: a) raise student fees, b) impose rental fees for University use, c) eliminate overhead charges, d) increase gross revenue via several possibilities: increase margin, increase sales, etc. In one way or another these options trade the auxiliaries funding problems by creating a problem for the University or it's students. Proposed Solution: Effective July 1, 1998 have the University pay for auxiliary employees fringe benefits through the Employee Benefit Contribution Fund. The estimated amount to be absorbed by the Employee Benefit Fund is $198,000. Based on an assessed valuation of $667,000,000 the mill levy would be increased by approximately 3/10 of 1 mill. Attached is the complete report as prepared by Mr. Divine. FINANCIAL IMPLICATIONS: RECOMMENDATION: Approval of the proposed solution. ________________________ _______________________________ (date) Jerry B. Farley, President Agenda Item No. V.A.4. Washburn University Board of Regents SUBJECT: Athletics FundraiserInitiative DESCRIPTION: Washburn Athletics is a integral part of the University. Athletics serves students in the way it develops and showcases their talent while allowing them to meet their academic goals. Scholar-athletes increase our overall enrollment. The University also benefits from Athletics because it bonds students, alumni and friends to Washburn. Additionally, Athletics exists as one of the windows through which the community enjoys and participates in the activities of the University. The strength of some of our programs showcases our commitment to excellence. Washburn Athletics has specific funding needs that require immediate attention. Washburn Athletics fundraising efforts historically have been anchored by a dedicated group of supporters who are committed to our scholar-athletes. What they need to make their job more successful is an equally dedicated professional fundraising component in the Athletics Department. We have an immediate need for: 1. Increased athletic scholarships. . Washburn is at or near the bottom of the MIAA schools that play football in the number of total scholarships available to athletes. . Washburn has not raised total scholarship dollars as tuition has increased. . As the participation in athletics by scholar-athletes increases, the available pool of funds has not, which puts us at a competitive disadvantage. 2. Annual giving. . Increase and renew annually the giving that directly supports the Athletics program. That annual support is needed for, but not limited to, Title IX equity improvements, equipment, training needs and facilities. 3. Long term funding. . Continue to build endowed funds to support Athletics programs. A professional fund raising operation is required for Athletics. Consisting of one professional development officer to be paid at a rate compensatory with equivalent staff in WEA, one half-time clerical position, and operating funds, this operation is designed to be self supporting and is expected to generate in income 3-4 times the expenses of the operation in new income, above current levels. Washburn University will invest seed money for the operation to cover start-up costs for one year. By the end of one year, the function shall be operated to have the capacity to sustain itself and return support to Athletics programs. By the end of five years, fundraising success of this initiative will repay the General Fund the monies invested for startup of this initiative. Professional staff for this function shall be hired and supervised by the Director of Athletics, in full concert with WEA. WEA will advise and assist the Athletics Director in the hiring, direct the training and coordinate the activities of professional staff within the context of the overall fundraising activities of the University. A complete articulation agreement will exist between the Athletics Director and WEA at the director of President Farley. Similar approaches have been used with success as related to fund raising for the Law School, and KTWU. This is an approach that will allow Athletics to compete on a more equal basis with the other MIAA institutions by setting it on course to successfully improve its own revenue streams. FINANCIAL IMPLICATIONS: The University will cover the start-up costs of this initiative by amount not to exceed $62,000 to be divided equally between FY98 and FY99. The funds are to be repaid by the end of 5 years and will come from FY97 operating reserves. RECOMMENDATION: President Farley recommends that the Board approve this Athletics Fundraising Initiative. date Jerry B. Farley, President Agenda Item No. V.B.1.a. Washburn University Board of Regents SUBJECT: Cleaning, Tuckpointing, & Waterproofing in Morgan Hall DESCRIPTION: Bids have been received to clean, tuckpoint, and waterproof the exterior stonework on Morgan Hall. This work is needed to keep the stone exterior from deterioration and to improve the appearance of this important building. The work on Morgan was not included in the FY98 Budget; however, the Physical Plant staff is recommending the $35,000 currently budgeted for cleaning and waterproofing the Law School building be used for Morgan Hall since it is in worse condition than the Law School. The Law School cleaning and waterproofing would be delayed one year. FINANCIAL IMPLICATIONS: $31,899 from Capital Improvement account 03-00302. RECOMMENDATION: President Farley recommends the award of a contract to Restoration & Waterproofing Contractors, Inc. for $31,899.00 to clean, tuckpoint, and waterproof the exterior stonework on Morgan Hall. ________________________ ______________________________ (date) Jerry B. Farley, President Agenda Item No. V.B.1.b. Washburn University Board of Regents SUBJECT: Purchase of 10 LCD Projectors DESCRIPTION: The Washburn University Media Center is charged with providing the campus with instructional equipment as needed by faculty and staff. As part of an ongoing upgrade of equipment requested by faculty, the Electronic Technology Committee recommended equipping classrooms with permanently mounted LCD Data projectors and x-terminals, and two portable LCD projectors. In October, 1997, bids were solicited to purchase the LCD projectors. Bids were received from Cytek, Smith Audio Visual, and Kent Audio Visual. Cytek had the overall low bid of $6,930.00 per projector. The total cost for 10 data projectors is $69,300.00 FINANCIAL IMPLICATIONS: This purchase is within the amount approved by the Board of Regents as recommended by the Electronic Technology Committee from the B&C 03-00301 fund. RECOMMENDATION: President Jerry B. Farley recommends the purchase of 10 EIKI LC-XGA970 LCD Projectors from Cytek in the amount of $69,300.00 ________________________ ______________________________ (date) Jerry B. Farley, President Agenda Item No. V.B.1.c. Washburn University Board of Regents SUBJECT: Computer rental for LightWave 3D Hands-on Training Workshops DESCRIPTION: The Washburn University Division of Continuing Education has received from NewTek, Inc., support and software to provide hands on training on LightWave 3D animation software, a companion product to the Video Toaster. It is proposed that the Division of Continuing Education be allowed to provide training in the following cities: Las Vegas, San Francisco, Dallas, Washington D.C., Detroit, Minneapolis, and Atlanta. The sessions in each city will consist of at least (2) 3 day workshops, and (2) 2 day workshops. Each workshop will have a minimum registration of 15, and a maximum of 34. The registration fee for each 3 day session will be $595.00, and each 2 day session will be $395.00. If the workshops are attended according to projections, after all direct expenses, the workshops could generate from $59,850.00 to as much as $239,624 total net revenue for the University. Vance Laine, Program Coordinator for technology training in the Division of Continuing Education, with the help and concurrence of Purchasing, has contacted several computer companies to rent from 15 to 34 computers for each training session. One of the companies contacted, Houlihan Office Systems of St. Louis, Missouri is able and willing to provide the computers necessary for each training site. The maximum cost for renting the computers for a single session will be $7,820.00. The total cost of renting computers for all sessions will be from $24,150.00 to $54,740.00, depending on the number of registrants in the various workshops. If the number of registrations for a session is too low to result in positive net revenue for the University, that session will be cancelled and no computer rental costs would be incurred. FINANCIAL IMPLICATIONS: The Division of Continuing Education is charged with being a self-supporting academic unit. The cost of renting the computers for each session is included in the cost of registration for the workshop. RECOMMENDATION President Jerry B. Farley recommends the rental of up to 34 computer terminals, monitors, and keyboards from Houlihan Office Systems, the rental price not to exceed $54,740.00 ________________________ ______________________________ (date) Jerry B. Farley, President Agenda Item No. V.B.1.d. Washburn University Board of Regents SUBJECT: Liquidated Claims Approval DESCRIPTION: Attached is the list of claims processed for the month of September 1997 by fund. Following is a capsheet of all claims by fund. The payroll claims will be presented to the Board of Regents for review at the November 14, 1997 meeting through the Chairperson. To the best of my information and belief, I certify that the liquidated claims submitted in this transmittal are in compliance with all applicable laws and University policies. _________________________ _____________ LOUIS E. MOSIMAN DATE Fund # Fund Name Total Claims (1) General Fund ($500,000 were wire transfers for investments)* $2,775,433.81 (2) Debt Retirement and Construction Fund None (3) Building and Construction Fund $ 115,091.81 (4) Endowment Fund ($35,213.56 was investment) $ 35,213.56 (5) Student Loan Fund $ 895.00 (6) Employee Benefit Construction Fund (There were $380,000 wire transfers for investments) None (7) Liability Expense Fund $ 6,000.00 (8) Restricted and Agency Fund $ 234,153.58 (9) Plant Fund None (11) Development Fund None (13) Government and Research Fund $ 112,846.10 Sub-Total $3,279,633.86 Payroll $1,973,002.22 *Wire Transfers (Investments) $ 880,000.00 Total $6,132,636.08 RECOMMENDATION: ________________________ ______________________________ (date) Jerry B. Farley, President Agenda Item No. V.B.1.e. Washburn University Board of Regents SUBJECT: Public Fund Investments DESCRIPTION: The Treasurer reports the following public fund investments: Public Wall St. Investment Fund Journal T-Bill Successful Amount Period Rates Rates Rate Bidder Rate $100,000 181 days 5.50% 5.61% 5.08% Mercantile 5.46% $350,000 364 days 5.37% 5.81% 5.08% Mercantile 5.59% Bids for investment of the University's public funds are solicited from area financial institutions in accordance with University policy and in conformance with State law regarding public fund investment (K.S.A.9-1401 et.seq. and 12-675 et.seq.) FINANCIAL IMPLICATIONS: RECOMMENDATION: President Farley recommends approval by the Board of Regents of the Public Fund Investments reported in the description above. ________________________ _______________________________ (date) Jerry B. Farley, President Agenda Item No. V.B.1.f. Washburn University Board of Regents SUBJECT: Depository Security Transactions DESCRIPTION: Following is a list of the depository security transactions that have occured. With Mercantile Bank 478740DJ9 Johnson County KS USD 512 B/Q Maturity Date 10-1-97 Released 9-24-97 $215,000 809395AG1 Scott City KS Wtr Sys B/Q Maturity Date 11-1-97 Released 10-29-97 $ 70,000 FINANCIAL IMPLICATIONS: The Treasurer believes the University deposits are properly secured. See note on 9-15-82 agenda item VI.J. RECOMMENDATION: President Farley recommends approval of the Treasurer's Report that the University funds are properly secured. ________________________ _______________________________ (date) Jerry B. Farley, President Agenda Item No. V.B.2.a. Washburn University Board of Regents SUBJECT: PERSONNEL SALARY INCREASE DESCRIPTION: Dolores Lewis, Controller in the Business Office, requested a review of the position responsibilities/salary for the Assistant Controller. Deborah Birney, Director of Personnel, reviewed the Assistant Controller responsibilities and found it to be comparable to that of an Accountant II with the state. The entry level salary for an Accountant II is $27,000.00 and requires 3 years experience. The Assistant Controller has 5-1/2 years experience as a state auditor and is currently at a salary of $26,652.00. Deborah has recommended, and Vice President Mosiman concurred in her recommendation of, a salary of $28,020.00 effective January 1, 1998. FINANCIAL IMPLICATIONS: Annual Salary $28,020./$2,335. A month, prorated salary $14,010.00. Salary increase to come from Vice President Administration and Treasurer Other Salaries and the January 1 increase of $416.00. RECOMMENDATION: President Farley recommends approval of the increase in salary for the Assistant Controller. ________________________ _______________________________ (date) Jerry B. Farley, President Agenda Item No. V.B.2.b. Washburn University Board of Regents SUBJECT: Proposed 1998-1999 Classified Compensation Schedule DESCRIPTION: Each year the University Director of Personnel reviews the University compensation schedule for wage and hour employees, comparing the schedule of wages with those of the state of Kansas, to determine whether adjustments should be made to our wage schedule. This item typically is presented to the Board of Regents in the Fall of each year. The Director of Personnel has completed the review and only recommends a one percent (1%) increase in the entry wages for the positions listed and the creation of two new position classifications: Executive Secretary and Facilities Manager. The increase in entry rates makes the wage rates for positions at Washburn comparable with the same and/or similar positions at the state Regents' institutions. The position incumbents in the two new position classifications are Janet Martinek, Office Specialist in the office of the President; and, Gil Herrera, Custodial supervisor for the Petro Allied Health Center. The changes in position classifications are to more accurately reflect the position responsibilities being performed by the incumbents. The Executive Secretary position classification is consistent with classification for the Regents' universities. The Schedule proposed includes only classifications outside the bargaining unit represented by the United Steelworkers, whose wage rates are negotiated in accordance with the Public Employer- Employee Relations Act. The classifications schedule is that which would be effective for fiscal year 1999. FINANCIAL IMPLICATIONS: $2,000 RECOMMENDATION: President Farley recommends approval of the proposed 1998-99 Classification Schedule. ________________________ _______________________________ (date) Jerry B. Farley, President Agenda Item No. V.B.2.c. Washburn University Board of Regents SUBJECT: Personnel Appointment DESCRIPTION: KTWU is requesting approval to fill the Promotion/Marketing position, effective December 1, 1997, above the budgeted salary. Donald H. Brown has more than eleven years of experience in the field of media, journalism, marketing and public information and is presently serving in the marketing/public information field for the State of Kansas. The recommended compensation level is reflective of that of the State of Kansas. Candidate's qualifications were reviewed by Deborah Birney, Director of Personnel, who recommends that the proposed salary of $27,960 be approved. FINANCIAL IMPLICATIONS: Annual salary of $27,960/$2,330 Mo. Prorated annual salary $16,310 for FY 97-98. Unused balance currently is $20,117.97. Salary for FY 98-99 will be transferred from line 40000-41-9. RECOMMENDATION: President Farley recommends approval of the appointment of Donald Brown at the higher rate of pay. ________________________ ______________________________ (date) Jerry B. Farley, President Agenda Item No. V.B.2.d. Washburn University Board of Regents SUBJECT: Personnel Appointment DESCRIPTION: Law Library is recommending appointment of Joseph Hewitt as UNIX Systems Coordinator at a salary of $33,000. Position is currently budgeted at $30,432. Mr. Hewitt is currently working at the University of Kansas Law Library as Automation Manager and has many years of experience with multi-user systems. Mr. Hewitt's qualifications and experience were reviewed by Deborah Birney, Director of Personnel, and the $33,000 is recommended as an appropriate salary. FINANCIAL IMPLICATIONS: Annual Salary $33,000./$2750. Mo. Additional salary dollars to fund increase will come from the Law School financing plan. RECOMMENDATION: President Farley recommends approval of the appointment of Mr. Hewitt. ________________________ ____________________________ (date) Jerry B. Farley, President