August 31, 2007

REGULAR MEETING OF THE BOARD OF TRUSTEES OF WESTERN CAROLINA UNIVERSITY

Room 510, H.F. Robinson Building August 31, 2007

The Board of Trustees of Western Carolina University met in regular session on August 31, 2007 in Room 510 of the H.F. Robinson Administration Building. The meeting was called to order at 9:35 a.m. by Chancellor Bardo.

ATTENDANCE
The following members of the Board were present: Mr. Warren, Mrs. Burda, Mrs. MacNeill, Mr. Kiser, Mr. Little, Mr. Worley, Mr. Burgin, Mrs. Wyche, Mrs. Williams, and Mr. Bloemsma.

The following members of the Board were absent: Mr. Carlisle, Mr. Phillips, and Mr. Metcalf.

Others present included: Chancellor Bardo; Provost Carter; Vice Chancellors Wooten, Metcalf, and Miller; Dr. Beam, Faculty Senate Chair; Mr. Smith, Director of Athletics; Mr. Tate, Staff Forum Chair; Mr. Studenc, Senior Director of News Services; Dr. Sanger, Director of the Center for Integrated Technology in Engineering Technology; Mrs. Lynch, Chief of Staff; Mr. Kucharski, Legal Council; Mrs. Ashe, Administrative Assistant; and Ms. Welch, Assistant Secretary of the Board of Trustees.

SWEARING–IN OF BOARD MEMBERS
Mrs. Williams, newly appointed member of the Board of Trustees, and Mrs. Wyche, Mr. Warren, Mr. Kiser and Mr. Burgin were sworn in by Judge Davis.

ELECTION OF OFFICERS
Dr. Bardo called for nominations for Chairman of the Board. Mr. Warren nominated Mrs. Joan MacNeill; Mr. Burgin seconded the nomination. Mr. Warren moved that the nominations be closed. Mr. Burgin seconded that the nominations be closed. Mrs. MacNeill was unanimously elected Chairman of the Board. Mrs. MacNeill stated that it is a great honor and privilege to be elected Chair and she thanked the Board for its confidence in her.

Mrs. MacNeill called for nominations for the Vice Chairman of the Board. Mr. Kiser nominated Mr. Steve Warren; Mr. Worley seconded the nomination. Mr. Little moved that the nominations be closed. Mrs. Burda seconded that the nominations be closed. Mr. Warren was unanimously elected Vice Chairman of the Board by acclamation.

Mrs. MacNeill called for nominations for the Secretary of the Board. Mrs. Burda nominated Mr. Charles Worley; Mr. Burgin seconded the nomination. Mr. Kiser moved that the nominations be closed. Mr. Little seconded that the nominations be closed. Mr. Worley was unanimously elected Secretary of the Board.

ETHICS STATEMENT
Mrs. MacNeill read the following: “As Chair of the Board of Trustees, it is my responsibility to remind all members of the Board of their duty under the State Government Ethics Act to avoid conflicts of interest and appearances of conflict of interest as required by this Act. Each member has received the agenda and related information for this Board of Trustees’ meeting. If any Board member knows of any conflict of interest or appearance of conflict with respect to any matter coming before the Board of Trustees at this meeting, the conflict or appearance of conflict should be identified at this time.”

There were no conflicts disclosed.

APPROVAL OF MINUTES
Mr. Worley moved that the minutes of the June 1, 2007 regular meeting and the minutes of the July 18, 2007 teleconference of the Executive Committee be approved as distributed. Mr. Warren seconded the motion, and it was approved unanimously.

ELECTION OF ENDOWMENT BOARD MEMBERS
Mrs. MacNeill nominated Mr. Burgin to finish her term which ends in 2009. Mrs. Burda seconded the nomination, and it was approved unanimously. Mrs. MacNeill nominated Mr. Steve Warren to fill a three-year term ending in 2010. Mr. Burgin seconded the motion, and it was approved unanimously.

CLOSED SESSION
Mr. Warren moved that the Board go into closed session to consider the qualifications, competence, performance, condition of appointment of a public officer or employee or prospective public officer or employee. Mr. Burgin seconded the motion, and it was approved unanimously. Dr. Bardo asked that Dr. Carter stay for the closed session.

RETURN TO OPEN SESSION
Mr. Burgin moved that the Board return to open session. Mr. Kiser seconded the motion, and it was approved unanimously.

REPORT OF THE ACADEMIC AFFAIRS AND PERSONNEL COMMITTEE
Mr. Worley reported on the creation of an Institute for Watershed Sciences. He stated that the mission of the Institute is to foster interdisciplinary, state-of-the-art research and education that supports local, state, and federal agencies, policymakers, non-governmental organizations, corporations, and the public in the development and implementation of sustainable watershed protection practices. Mr. Worley further reported that inherent in this mission is the realization that watershed protection and preservation must be consistent with policies ensuring economic and social prosperity and sustainability. Mr. Worley moved to approve the creation of an Institute for Watershed Sciences. Mr. Burgin seconded the motion, and it was approved unanimously. (INFORMATION ON FILE WITH MINUTES MATERIALS IN TAB C-2)

Mr. Worley explained that persons occupying faculty positions with the title of “Lecturer” are considered at Western Carolina University as holding ranks equivalent to the rank of instructor or above, and are entitled to participation in the Optional Retirement Program. Mr. Worley moved to approve a proposed resolution defining the use of the term “Lecturer.” Mr. Kiser seconded the motion, and it was approved unanimously. (PROPOSED RESOLUTION ON FILE WITH MINUTES MATERIALS IN TAB C-3)

Mr. Worley mentioned that there were several informational items including personnel appointments and a background check policy. Mr. Worley asked Dr. Carter to give an update on the college reorganization. Dr. Carter reported that it is going well and that the colleges are excited about the reorganization.

REPORT OF THE ADMINISTRATION, FINANCE AND AUDIT COMMITTEE
Mrs. Burda stated that there are two resolutions to come before the Board. Mrs. Burda asked Mr. Wooten to speak about the resolutions.

Mr. Wooten reported on a resolution authorizing the issuance of special obligations bonds and a bank loan for the replacement of Dodson Cafeteria. He further reported that the bonds will be issued by the UNC Board of Governors in spring 2008 and a bridge loan will be obtained to cover the construction costs until the permanent debt is in place. Mr. Wooten mentioned that the bridge loan will be retired with proceeds from the special obligation bonds.

Mr. Wooten also reported that under normal circumstances Western will incur expenditures related to a capital improvement project before permanent financing is in place. He stated that this resolution allows Western to reimburse itself from bond proceeds for expenditures incurred prior to the issuance of special obligation bonds.

Mr. Wooten mentioned that both resolutions are boiler plate resolutions.

Mrs. Burda moved to approve the Resolution Approving the Issuance of Special Obligation Bonds and the Reimbursement Resolution. Mr. Warren seconded the motion, and it was approved unanimously. (RESOLUTIONS ON FILE WITH MINUTES MATERIALS IN TAB D-2 AND D-3)

Mrs. Burda reported on various internal audits that had been performed since the last meeting. She mentioned that a copy of the year to date audit activity was presented and discussed. Mrs. Burda also reported that the AAF committee approved the internal audit certification and authorized the committee chair to sign the certification for submission to the UNC Board of Governors. She also mentioned that the FY 07-08 audit plan was submitted and will be considered at the next Trustee meeting.

Mrs. Burda gave an update on the new Health and Gerontological Sciences Building. She mentioned that the Committee received a detailed update from Chad Roberson, principal with PBC&L, the designer for the new building. Mrs. Burda stated that the programming for the building is completed and schematic drawings have begun. She also stated that the designer has prepared a comprehensive study on the site and has developed a proposed location for this building within the health neighborhood. Mrs. Burda mentioned that the building will be nestled on the mountainside. She also mentioned that it was a fabulous presentation. Mrs. Burda stated that the committee will receive an update at each quarterly meeting.

Mrs. Burda asked Mr. Wooten to update the Board on campus construction. Mr. Wooten reported that the renovation of Stillwell Science Building continues to move along with a scheduled completion in December 2007. He also reported that the Helder Residence Hall has been demolished and the site is almost ready for the dining facility contractor to begin. Mr. Wooten further reported that the student recreation center is approximately thirty percent completed and steel is being erected. He stated that work continues on the steam line replacement project. Mr. Wooten mentioned that there have been some delays due to pricing difficulties and that the University has discontinued the construction manager-at-risk concept because the price for this approach was above our budget. Mr. Wooten stated that we have an RFP on the street for an underwriter for that particular project; therefore, there will be a competitive selection process for an underwriter. Mrs. Burda asked if the banking problems now would affect us getting an underwriter. Mr. Wooten replied that the rates are still competitive and it is a good time to be in the market place for bonds.

Mrs. Burda gave an update on FY 2007-08 budget. She stated that the 2007 General Assembly was a very good budget year for Western. She asked the Chancellor to speak about the budget. Dr. Bardo stated that he was pleased with the support we got from the legislature. He mentioned that full funding was provided for the Health and Gerontological Sciences Building. He also mentioned that monies were received for faculty and EPA raises and that we should see a gain on our peers for faculty raises. Dr. Bardo mentioned that this is the best year he has ever seen in higher education regarding the budget. Dr. Bardo reported that we are working with Appalachian Regional Commission on how to create competitive economic situations. He mentioned that ports on the Eastern seaboard are overwhelmed due to global trade. Dr. Bardo stated that it was suggested to Western that we assist one of the Appalachian counties of western North Carolina in developing a transshipment zone, generally known as an “inland port” or a break-in bulk center. He also stated that the creation of a transshipment zone could help unemployment in the western North Carolina counties. Dr. Bardo further stated that our faculty would be involved in doing this study.

REPORT OF THE ALUMNI, HONORS, AND EXTERNAL AFFAIRS COMMITTEE
Mrs. Wyche reported that Western Carolina University has received $71.9 million in external funding in the past year with $52.8 million in state appropriations from the North Carolina General Assembly, $15.7 million in pledges and gifts to the Campaign for Western, and $3.4 million through the Foundation in contributions to annual operations funds. She also reported that State funding includes $43.8 million for the new College of Health and Human Sciences building, the first structure to be built on the Millennium Campus.

Mrs. Wyche stated that the campaign continues to set records. She also stated that FY 2006-2007 saw a record high in private sector fund-raising for Western with $15.7 million in the campaign and $3.4 in annual operations funds. She further stated that it is the second consecutive campaign year to exceed $15 million. Mrs. Wyche mentioned that the campaign endowments now total $13.9 million for faculty support, $12.2 million for student support, $3.9 million for program support and $10.2 million for current use.

Mrs. Wyche mentioned that the campaign’s campus segment currently stands at $422,774 with 95 active faculty, 11 retired faculty, and 89 staff members contributing since that part of the campaign launched on February 6 of this year. She also mentioned that a total of 195 campus donors have contributed money to support 62 campus activities.

Mrs. Wyche reported that with heightened interest in athletics stemming from the football task force, the board might be interested in knowing that fundraising for athletics also was at a record level for the past fiscal year with $3.6 million for athletics from all sources -- $2,750,000 in pledges and contributions through the campaign and $881,539 in cash receipts for scholarships and operating expenses from Catamount Club activities and sources. She also reported that cash receipts for athletic scholarships totaled $353,000; special events, such as the Catamount Auction and golf tournaments, netted $135,000; restricted and unrestricted contributions and membership sales realized $393,000.

REPORT OF THE STUDENT AND ATHLETIC AFFAIRS COMMITTEE
Mrs. MacNeill welcomed Aaron Bloemsma to the Board. Mrs. MacNeill asked Mr. Bloemsma to speak on the status of the Student Government Association. Mr. Bloemsma reported that the SGA has been appropriating their budget and working on tasks for the beginning of school.

Mrs. MacNeill reported the following academic information on student athletes:

# Cumulative Average Team GPA for Spring 2007 was 3.060.
# Spring Semester Student-Athlete Cumulative GPA - 2.928 (record high for a semester).
# Five WCU Varsity teams were named to the 3.0 + GPA Honor Roll Spring, 2007 – women’s golf, soccer, women’s basketball, volleyball, women’s cross country.
Spring 2007 Superlatives:
# 74 student-athletes made the Dean’s List.
# 12 student-athletes earned a perfect 4.00.
# 48% of WCU student-athletes earned a 3.00 and above.

2006 NCAA Graduation Rates Report
# Western Carolina University Athletics reported a 74% graduation rate to the NCAA - highest percentage since 2005.
# Overall school percentage for 2000-2006 was 47%.
# Latest reported overall Division I average percentages was 63%; Division I-AA average percentage - 62%
2006 Graduation Success Rates Report
# Western Carolina University Athletics reported an 89% Graduation Success Rate.
# Latest reported overall Division I (326 institutions) GSR average - 77%; Division I-AA (116 institutions) GSR average - 73%.

Mrs. MacNeill asked Mr. Smith to speak on the football task force. Mr. Smith stated that the task force work was completed in July 2007. There are about twenty members on the task force. Western decided to engage the services of a consultant. Mr. Smith reported that the task force set two benchmarks: one for academic success and one for athletic success. He also reported that the task force talked to a large number of people. Mr. Smith further reported that the task force was divided into four subcommittees. These are: recruiting; coaching in a winning culture; equipment; and facilities and funding. Mr. Smith stated that the task force explained its findings and made the following recommendations: a $150,000 one-time funding was needed; $150,000 in recurring base budget funds are needed; and salaries need to be brought up to average. He also stated that many of these recommendations have already been met. Mr. Smith, Mr. Wooten and Dr. Bardo asked the task force to put together a long-term budget and to address the needs of coaches teaching. Mr. Smith mentioned that a small group of the task force committee will review these issues each year and see where things are.

Mr. Kiser asked everyone to read the Executive Summary which exemplifies the amount of work that went into it. He then thanked Mr. Smith and the Chancellor for taking a positive and proactive approach in addressing these issues. Mr. Kiser stated that as they entered the fact-finding portion of this, there were a lot of misconceptions. He also stated that this does not mean that we will have a winning team overnight. Mr. Kiser reported that Mr. Jim Moore did an outstanding job as the leader and facilitator of the task force. He also reported that members of the staff and faculty who participated did a great job, including Gibbs Knotts, AJ Grube, Bruce Henderson, and Kenny Messer, to name a few. Mr. Kiser mentioned that the biggest tasks ahead is making inroads are in the recruiting area. He also mentioned that we need more athletic fundraising;

Dr. Bardo stated that the task force report was a tremendous report and that the committee did a good job of pulling out the real issues. He also stated that it will take a while to make a difference; however, we are responding quickly.

Mr. Burgin asked if a similar task force has been thought about in basketball. Dr. Bardo explained some of the things that we have done regarding basketball and that things are going well with the teams. He also explained that these are competitive teams.

Mrs. MacNeill stated that the Health Services study group’s final report was very good. She also stated that the study group recommended the following:

1. A 6.5% increase in the Student Health Services budget to fund critical personnel needs
a. Counseling and Psychological Services priorities are a Psychologist/Substance Abuse Counselor, a Case Manager and additional time from a Psychiatrist
b. Health Services to fund additional hours of coverage for immunizations and allergy clinics
2. Separate the HS and CPS budgets
3. Offer an enhanced benefits option to the student health insurance plan. For an additional 7% on the premium, prescription drug coverage, physical exams, ADD testing and other services could be added.

Mrs. MacNeill reported that Student Affairs is working to implement these recommendations and will bring forward these initiatives in the budgeting process. She also reported that Dr. Michael Jorge has submitted his resignation effective in mid-September.

Mrs. MacNeill stated that WCU enjoyed an extremely successful and smooth opening. She mentioned that from the residence hall move-in to the One-Stop, students encountered an enhanced level of service and fewer problems. Mrs. MacNeill also stated that the Staff in Enrollment Management, the One-Stop Center, Public Safety and Student Affairs are all to be congratulated for a successful beginning to the school year. She further mentioned that the new academic calendar also appears to be a success from the standpoint of fewer problems with student conduct situations.

COMMENTS FROM CHAIRMAN MACNEILL
Mrs. MacNeill mentioned that the March Board meeting dates have changed to the 13th and 14th. She also mentioned that the Trustee retreat will be November 1 and 2 at Pinehurst. Mrs. MacNeill stated that everyone needs to fill out the UNC Disclosure of Substantial Interest Form. She further stated that she will be finalizing committee appointments and sending them via email. Mrs. MacNeill commented that she is pleased to be chair. She also commented that all of the pieces are falling into place and Western is poised for great things. Mrs. MacNeill stated that she is so excited to see the plans for the first building on the Millennial Campus. She also mentioned that she is excited about the new branding campaign.

COMMENTS FROM CHANCELLOR BARDO AND PROGRESS REPORT ON ENROLLMENT
Dr. Bardo commented that he gave the faculty a quiz at the opening of school and would like to share the same quiz to the Trustees.

Dr. Bardo stated that the enrollment for Fall 2007 is 9,010. He also stated that enrollment for the graduate school is close to 2,000. Dr. Bardo further stated that our distance education is up about twenty seven percent. He mentioned that the average freshman SAT score is 1024.

Dr. Bardo asked the Admissions staff to bring in a freshman class of 1500, to leave it at 1500 for the next three years, and to go for quality instead of quantity. He also asked them to have a four-category admissions process. Dr. Bardo mentioned that in the US News rankings we are well up in the top tier of Southern universities. He also mentioned that we have moved up eleven slots this year. Dr. Bardo stated that access can be achieved by increasing major markets in graduate and adult education, community college transfers, and pushing on satellite campuses.

Dr. Bardo commented that we have a sewer moratorium in Jackson County at this time which will be solved over the next three years. He also commented that there will be a partial lifting of the moratorium in a year and a full lifting in approximately three years. Dr. Bardo stated that our intent is to grow our on-campus population by about 700 during that time and to grow our off-campus sites during that three-year period. He also stated that at that time we will look at this whole issue again once we understand the sewer capacity. Dr. Bardo further stated that the health building is already approved for sewer capacity; but, it will have an impact on the growth of the University.

Dr. Bardo mentioned that the upcoming year will be a huge year and will be the best year in the history of the University. He also mentioned that the implementing of the Quality Enhancement Program has the possibility to transform the University. Dr. Bardo stated that he will be asking the Executive Committee to consider a center for forensic sciences in the next few weeks. He also stated that we are going to continue to develop, with MAHEC, a Center for Health and Aging. Dr. Bardo further stated that Dick Spangler has donated an endowed professorship to Western and the first one will be named after Myron and Barbara Coulter. He mentioned that the Coulters gave Western the right to choose the discipline. Dr. Bardo also mentioned that we are fourth in the system for endowed professorships. He further mentioned that the millennium initiative is rolling forward. Dr. Bardo commented that the branding campaign will be very important for Western. He stated that the men’s basketball program in will be playing in Costa Rica this weekend. Dr. Bardo also stated that the University needs an instant replay screen for our basketball programs.

REPORT FROM THE STAFF FORUM CHAIR
Mr. Tate reported that the most recent accomplishment of the Staff Forum is a scholarship for children of WCU staff. He also reported that the forum will be naming the first recipient next week. Mr. Tate stated that the scholarship will help local students who want an education at home. He also stated that the Forum will be working to grow the scholarship. Mr. Tate reported that the Forum is establishing its agenda for the year. He also reported that the staff members are eager to know how they can contribute to the QEP. He stated that it is challenge for folks who are not in Academics to figure out how they can contribute. Mr. Tate commented that he will talk to Carol Burton and the Chancellor to find ways for staff members to contribute. He also stated that the Staff Forum wants to contribute to the vision and goals that the Board has for the University.

REPORT FROM THE FACULTY SENATE CHAIR
Dr. Beam reported that the school year is just getting underway so the Faculty Senate is still in the process of formulating things. He thanked the Board on behalf of that category of faculty known as “lecturers.” Dr. Beam stated that the faculty are waiting to receive approval of the tenure document from the Board of Governors. He also stated that the Faculty Senate will have its first formal meeting next week. Dr. Beam further stated that the senate will hopefully adopt revisions to the by-laws. He mentioned that there is ongoing work to clarify and simplify the curriculum process. Dr. Beam stated that it will be a good year and that he is looking forward to an exciting year.

ADJOURNMENT
There being no further business, Mr. Worley moved to adjourn the meeting. Mr. Burgin seconded the motion and the meeting was adjourned at 12:00 noon.