REGULAR MEETING OF THE BOARD OF TRUSTEES OF WESTERN CAROLINA UNIVERSITY
Room 510, H.F.RobinsonBuilding
December 2, 2009
The Board of Trustees of Western Carolina University met in regular session on December 2, 2009 in Room 510 of the H.F. Robinson Building . Chairman Warren called the meeting to order at 9:30 a.m.
ATTENDANCE
The following members of the Board were present: Mr. Warren, Mrs. MacNeill, Mr. Worley, Mr. Forsyth, Mrs. Williams, Mr. Broadwell, Dr. Siegel, Ms. Saunooke, Mr. Kiser, Mrs. Wyche, and Mr. Cotton.
The following members of the Board were absent: Mr. Metcalf and Mr. Little.
Others present: Chancellor Bardo; Dr. Carter, Provost and Senior Vice Chancellor; Vice Chancellors Metcalf, Miller and Wooten; Mrs. Lynch, Chief of Staff; Mr. Kucharski, General Counsel; Mr. Fowler, CIO; Mr. Smith, Athletic Director; Mrs. Holcombe, Staff Senate Chair; Mr. Studenc, Senior Director of News Services; Dr. Beam, Faculty Senate Chair; Reporter, Mr. Morris, Smoky Mountain News; Reporter, Mr. Moore, WRGC; Mr. Bidwell, IT Services; Ms. Woody, Administrative Assistant; Mrs. Ashe, Administrative Assistant; and Ms. Welch, Assistant Secretary to the Board.
SWEARING-IN OF BOARD MEMBERS
Mr. Forsyth and Mrs. MacNeill were sworn in by Ms. Welch.
Mr. Warren stated that the State Ethics Commission has reported no conflicts of interest with eight Board members. The Commission further reported that they did not find an actual conflict of interest but did find the potential for a conflict of interest on behalf of Mr. Warren, Mr. Worley, Mr. Little, and Mr. Broadwell.
Mr. Warren read the following from the State Ethics Commission:
"I did not find an actual conflict of interest; however, I did find the potential for a conflict of interest. The potential conflict identified does not prohibit service on this entity. Mr. Warren is an At-Large Trustee. He is an attorney with the law firm of Long, Parker, Warren & Anderson. Firm practice areas include real estate transactions. Because this firm could seek to do business with the Trustees, he has the potential for a conflict of interest. Mr. Warren must exercise appropriate caution in the performance of his public duties should issues involving his firm or its clients come before the Trustees for official action. This would include recusing himself to the extent that his interests would influence or could reasonably appear to influence his actions."
"I did not find an actual conflict of interest; however, I did find the potential for a conflict of interest. The potential conflict identified does not prohibit service on this entity. Mr. Worley is an At-Large Trustee. He is an attorney with the law firm of Worley & Associates. Firm practice areas include real estate transactions. Because this firm could seek to do business with the Trustees, he has the potential for a conflict of interest. Mr. Worley must exercise appropriate caution in the performance of his public duties should issues involving his firm or its clients come before the Trustees for official action. This would include recusing himself to the extent that his interests would influence or could reasonably appear to influence his actions."
"I did not find an actual conflict of interest; however, I did find the potential for a conflict of interest. The potential conflict identified does not prohibit service on this entity. Mr. Little is an At-Large Trustee. His is President/CEO of George W. Little & Associates, Inc., an insurance agency. He owns stock in Crescent Financial Group. Because this banking entity could seek University business, he has the potential for a conflict of interest. Mr. Little must exercise appropriate caution in the performance of his pubic duties should issues involving Crescent come before the Trustees for official action. This would include recusing himself to the extent that his interests would influence or could reasonably appear to influence his actions."
"I did not find an actual conflict of interest; however, I did find the potential for a conflict of interest. Mr. Broadwell is Chairman and CEO of HomeTrust Bank of Asheville, North Carolina. He owns a threshold amount of stock in companies that could market their products or services to the University. He is a participant in a non-public land development fund. In light of these interests, Mr. Broadwell should exercise appropriate caution should his bank or any of the companies in which he has a financial stake come before the Board for official action or otherwise seek to conduct business with WesternCarolina University. This would include recusing himself to the extent that his interests would influence or could reasonably appear to influence his actions."
Mr. Warren stated that those were the findings of the State Ethics Commission.
Mr. Warren 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. Broadwell moved that the minutes of the September 4, 2009 regular meeting be approved as drafted. Mr. Worley seconded the motion, and it was approved unanimously.
CLOSED SESSION
Mr. Worley moved that the Board go into closed session to prevent the premature disclosure of an honorary degree, scholarship, prize or similar award and to consider the qualifications, competence, performance, condition of appointment of a public officer or employee or prospective public officer or employee. Mr. Kiser seconded the motion, and it was approved unanimously. Dr. Bardo asked Dr. Carter to stay for the closed session.
RETURN TO OPEN SESSION
Mr. Kiser moved that the Board return to open session. Dr. Siegel seconded the motion, and it was approved unanimously.
REPORT OF THE ACADEMIC AFFAIRS AND PERSONNEL COMMITTEE
Mr. Worley moved on behalf of the committee that the Board grant tenure upon hire for Dr. Roger Hartley as Associate Professor in Public Administration. The motion was approved unanimously. (HARTLEY VITAE ON FILE WITH MINUTES MATERIALS.)
Mr. Worley reported on the reorganization of Enrollment Management. He mentioned that the committee reviewed handouts depicting the first and second stages of these changes and that this plan will go into effect July 1, 2009. Mr. Worley added that the Provost reviewed the changes with the committee. He also mentioned that Sam Miller is over Admissions and reporting to the Provost in this regard, to the Chancellor in all others. Mr. Worley stated that Larry Hammer, the Registrar, will take over the business practices portion of enrollment management (OneStop, Financial Aid) and Carol Burton will take over academic support services (Career Services, Academic Success, etc.) He further mentioned that the Associate Provost position is being eliminated. Mr. Worley reported that Fred Hinson is coming back to the Provost's Office to assume the functions of that position.
Mr. Worley commented that future agenda items were discussed. Mr. Worley stated that, during the meeting, he and Dr. Carter asked the committee what the important topics they wish to deal with are and in what order. Provost Carter shared with Mr. Worley a presentation on Enrollment Planning which he created. Mr. Worley stated it was very helpful to him and he is interested in sharing this with the committee and possibly the full board in the future. Mr. Worley mentioned that WCU is required to project enrollment and then our budget is based upon that projection. He also mentioned that these topics will be of importance to the board as they transition to more of a policy/advocacy board. Mr. Worley reported that one suggested agenda item regarding individuals close to retirement and leadership transition plans will be reported on by Kathy Wong. He also reported that a second suggested agenda item, Strategic Planning Committee initiatives, comes within the purview of this committee. Mr. Worley and Provost Carter will determine the next item(s) for discussion.
Mr. Worley reported that there are a number of notifications of appointments which can be found in the materials.
Mr. Worley mentioned that there was a presentation by Dean McMahan on project-based learning and the Center for Rapid Product Realization: Role in Economic Development and QEP. Mr. Worley stated that Dean McMahan briefed the committee on the role of the Rapid Product Realization Center in linking the university to business and industry. He also stated that the Rapid Center in the Kimmel School bridges the University to the economy and works with a broad community of entrepreneurs and firms – big and small – new and established – who seek to develop and launch new products and services while at the same time providing rich educational and engagement opportunities for both faculty and students.
Mr. Worley mentioned that through this combination, the Kimmel School presents educational opportunities for its students that they cannot find elsewhere in North Carolina, and that uniquely prepare them to make professional decisions and solve real-world engineering problems in professional contexts. He explained that students graduate knowledgeable not only of the theory of their profession, but also with practice in its methods. Mr. Worley further explained that this combination also drives real economic results: the Kimmel School's Rapid Center has already assisted over 200 companies and entrepreneurs and has been responsible for the launch of dozens of new products and services and the resulting retention and addition of jobs across western North Carolina.
REPORT OF THE ADMINISTRATION AND GOVERNANCE COMMITTEE
Mrs. Williams asked for the Student Government Association report from Mr. Cotton. Mr. Cotton reported that the SGA has had a very successful semester and it has been a pleasure to work with the SGA folks. Mr. Cotton mentioned that there is one additional item from the SGA regarding tuition increases. He stated that the SGA has some issues with our tuition increase. Mr. Cotton would like for the Board to take under consideration a compromise in the tuition increase. Mrs. Williams thanked Mr. Cotton for his counsel.
Mrs. Williams stated that the Athletics Director, Chip Smith, reported on the autopsy report that was received as a result of the death of a student athlete who was a member of the football team.
Mrs. Williams explained that the construction on the Blue Ridge residence hall project is proceeding, however it appears to be running behind the desired August 2010 opening date. She also mentioned that meetings are currently underway discussing scheduling issues, caused in part by delays on the dining hall project.
Mrs. Williams reported that two weeks ago, WCU Health Services received doses of the H1N1 flu vaccines. She added that vaccination clinics were held at various campus locations. Mrs. Williams mentioned that Health Services prioritized the administration of the vaccines to CDC identified individuals first, with students next, and finally WCU employees. She also mentioned that at this point in time, 270 injections have been given and 185 nasal vaccines have been given. Mrs. Williams stated that vaccines are still available on an appointment basis. She also stated that this semester WCU Health Services has recorded 456 cases of influenza-like infections.
Mrs. Williams explained that applications for the Fall 2010 entering freshman class remain very strong with 10,545 applications received as of November 25 thcompared with 8,216 applications one year ago.
Mrs. Williams stated that Vice Chancellor Clifton Metcalf has asked that if any Board member has non-budget items for legislative consideration, please submit these to him as soon as possible.
REPORT OF THE FINANCE AND AUDIT COMMITTEE
Mr. Kiser stated that there were a couple of action items to come before the Board. He reported that the WCU Police Chief reviewed mutual aid agreements with Jackson County and the Town of Sylva and a law enforcement assistance agreement with Appalachian State University. Mr. Kiser also reported that these agreements are intended to extend the law enforcement authority to our police officers when they leave the campus on official University business. In addition, the law enforcement assistance agreement with Appalachian State University allows officers from the two institutions to work together and extends jurisdiction to either campus for mutually agreed upon projects. Mr. Kiser moved on behalf of the committee to approve the mutual aid agreements with the Jackson County Sheriff's Departments and the Town of Sylva Police Department and approval of the Law Enforcement Assistance Agreement with Appalachian State University. The motion was approved unanimously. (AGREEMENTS ON FILE WITH MINUTES MATERIALS IN TAB E3, E3-A AND E3-B)
Mr. Kiser stated that the proposed tuition and fees for FY 2010-11 were discussed. He mentioned that excepting the increase in tuition from 6.0% to 6.5%, all other fees are identical to those discussed in detail at the November Board retreat. Mr. Kiser reported that overall, on a percentage basis, the tuition and fee increase ranges from a low of 1.7% increase for non-resident undergraduate students to a 5.2% increase for resident undergraduate students. He added that the actual dollar amount ($237.50) of increase is the same for both resident and non-resident students .
Mr. Kiser asked Mr. Wooten to elaborate on this subject. Mr. Wooten responded by saying that The General Assembly has already approved an 8% increase for next year. He added that what is before the Board is a campus-initiated tuition increase. Mr. Wooten further stated that if we can implement our campus based tuition, we would get to keep those dollars. However, if the legislature continues with its increase we will not get to retain those funds. Mr. Wooten continued to say that we are in catch-up mode and that 50% of the increase will go toward need-based financial aid and 50% toward things such as the QEP and to improve our graduation and retention rates. He further stated that the legislative request will cause our students to pay more than our request will.
Dr. Bardo added that if you look at the institutions in the UNC system that are most like Western (Appalachian, Wilmington and Central), and if we use the official UNC budget process and apply our programs and credit hours to that process, we have the most expensive market-basket of programs of all four schools. Yet our tuition lags substantially behind Wilmington and Appalachian, our chief competitors. He stated that, as a result, our faculty salaries are lower so it affects who we can attract and how we can attract them and it affects our ability to implement the quality of education that we have been asked to provide the students. Dr. Bardo explained that we did not start campus-initiated tuition increases when first made available because we were not in a financial position to do so. He also explained that a campus-initiated increase will allow us to modestly move to cover the costs of the expensive market-basket of programs that we offer. Dr. Bardo went on to say that we will argue with the legislature that the campus-initiated tuition increase is a better solution. He mentioned that we are concerned about costs, but we find ourselves in the position of increasing quality and finding the resources to do it.
Mr. Warren added that President Bowles and General Administration have praised Chancellor Bardo and Western for keeping the costs so low. He also stated that our students deserve the best education that we can deliver, but also comply with the constitutional provisions. A discussion of the tuition and fees increase followed. Mr. Kiser moved on behalf of the committee to approve the proposed FY 2010-11 increase in Tuition and Fees to 6.5%. The motion was approved with one negative vote (Mr. Cotton). ( TUITION AND FEES PROPOSAL ON FILE WITH MINUTES MATERIALS IN TAB E4, E4-A, AND E4-B)
Mr. Kiser stated that South Carolina is cutting university budgets by 24% for the year and with the shortfall of revenue they are looking at an additional 3% cut across all agencies in the State, including the university system. He mentioned that we are fortunate to have the North Carolina support that we have. Mr. Worley stated that our fees are lower and that we have done our best to hold the line on fees. He mentioned that raising tuition is the only thing that gives us the most discretion to deal with the most problems. Mr. Broadwell added that everyone appreciates Mr. Cotton's position but recognizes that half of the money is a re-distribution taken from folks who do not need aid to help those who do. He further added that the goal is to work hard to get students to be able to come to school.
Mr. Kiser stated there was an action item for the committee that does not require full board action. He explained that the committee heard a report from representatives of the State Auditor's Office concerning a recent audit they had completed concerning information technology systems and procedures at Western Carolina University. He also stated that the audit findings, the recommendations, and the University's responses were discussed. Mr. Kiser mentioned that the Committee took action to acknowledge the audit findings and indicate satisfaction with the University's corrective responses. Furthermore, the committee encouraged staff to take appropriate action to implement necessary modifications in policies and procedures to satisfy the audit findings. Mr. Kiser also mentioned that the committee asked the Internal Auditor to provide each committee member with the 90 day review report as soon as it is completed.
Mr. Kiser reported that Robert Edwards, the WCU Internal Auditor, updated the committee on audit projects since the last meeting. He explained that they have completed the 90 day review of audit comments related to the June 30, 2008 audit and confirmed compliance. Mr. Kiser added that this report was forwarded to UNC-GA and has been accepted as complete. He stated that ongoing projects include a review of the campus scholarship allocation process.
Mr. Kiser stated that the Council of State approved the property exchange between the State of North Carolina and Jackson County at their meeting on December 1 st. He also stated that this transfer will provide the Cullowhee Volunteer Fire Department with property on which a new fire station can be constructed.
Mr. Kiser mentioned that Western Carolina University is continuing negotiations with the Public Staff of the North Carolina Utilities Commission for a settlement agreement involving the proposed rate case for our resale electric system. He also mentioned that the NC Utilities Commission will conduct a public hearing on the campus of Western Carolina University on December 9 th. Mr. Kiser added that, unless something unforeseen occurs, the new rates will be approved by the NC Utilities Commission effective April 1, 2010.
COMMENTS BY CHAIRMAN WARREN
Mr. Warren reminded the Board that the Association of Governing Boards annual meeting will be held March 19-23. We would like to take as large a delegation as possible. He asked everyone to place this meeting on their calendars.
Mr. Warren stated that he loves this job because he often gets to be the bearer of good news. He further stated that "today is one of these days." Mr. Warren mentioned that he got a letter from President Bowles which indicated that the CD Spangler Foundation had met and has named a professorship after a sitting Chancellor. Mr. Warren proceeded to read a portion of the letter from Erskine Bowles. The letter states "Under Chancellor Bardo's leadership, WCU has been remarkably successful in raising funds to qualify for these endowed professorships. Thus far, Western Carolina University has created twenty distinguished professorships through the program. Six of these have been funded in whole or in part by the Spangler Foundation. The most recent endowment of $500,000.00 will be used to support work in educational leadership. As director of the Foundation, President Emeritus CD Spangler, Jr. has chosen to honor Chancellor Bardo's outstanding and sustained leadership by naming this new chair 'The Chancellor Bardo and Deborah Bardo Distinguished Professorship in Educational Leadership'." Mr. Warren stated that he is sending a letter to the entire campus today about this. Mr. Warren presented a framed original of the letter to the Chancellor.
CHANCELLOR'S COMMENTS
Chancellor thanked the Board for the presentation and honor. He stated that "the reality of the University is that there are hundreds of people on this campus who have made this place what it is. They did it and they will continue to do it and I will retire one day and will walk away and they will continue to do it. This is a great University because thousands of people, over the course of more than a century, have been willing to dedicate their lives to it. I am blessed to have had the opportunity to serve it. I look forward to continuing to serve it. I fully understand that this is about the people of this University, who they are and what they do every day. I also will tell you that I am a blessed man to have had a young woman who was a secretary in the department in which I was a faculty member to quit and the department scrambled to find someone to fill in for the summer and they went and found a business education major to take over for a little while and she befriended me. We have now had thirty-five years together and look forward to hopefully another thirty-five. Nothing would have happened without her and it was a kindness for Dick to recognize that. This sort of thing is not how I perceive myself at all. This is truly an honor."
Dr. Bardo reported that the band received the Sudler trophy. He added that the band is also one of thirteen bands to march in the Tournament of Roses Parade.
Dr. Bardo mentioned that US News has ranked Western #10 among schools of our type in the South. He also mentioned that Western was listed in an issue of US News of "schools you had better apply to if you want to get in."
Dr. Bardo explained that we have had over 10,500 applicants and that the official retention rate is 76.21 %. This is above national average.
Dr. Bardo stated that we are now at the conclusion of our capital campaign which raised $51.8 million. He also stated that a lot comes in pledges over time. Dr. Bardo added that the Advancement staff is now planning a second Campaign. He thanked everyone who met with the military representatives last night. He also explained that, as part of the UNC System, we are engaged with the special operations unit. Dr. Bardo reported that we are now working with the military community to try to understand what education needs they may have that we can provide, what education needs spouses of military personnel have that we can provide, and where our research capacities match what they need to protect our soldiers in the field.
COMMENTS FROM THE STAFF SENATE CHAIR
Mrs. Holcombe reported that they have a full delegation of representatives for the first time in several years. She further mentioned that the Staff Senate Governance Committee has been hard at work recommending changes and expanding the information currently contained in our Bylaws. Mrs. Holcombe stated that they have also made adjustments to the nomination and election cycles. She reported that the Senate will be seeking nominations for senate representatives any day now. Mrs. Holcombe explained that Senate representative elections will be held early in the spring semester.
Mrs. Holcombe reported that until a few weeks ago, there was not a centralized way to communicate with all staff members on campus without using a campus wide email, which is really limited to information affecting all of campus. She explained that one of the Public Relations Committee members worked with IT to set that group up so we now have the ability to reach all staff members (and only staff members) to share important information.
Mrs. Holcombe mentioned that on October 5-6, Western was represented at the UNC Staff Assembly meeting in Chapel Hill. Our three delegates were all able to attend. Mrs. Holcombe further mentioned that there was much discussion during this meeting about how to move Staff Assembly forward and strengthen the organization and its potential impact on the work experience for staff.
Mrs. Holcombe reported that they became aware of a need in our immediate area for assistance with the Kids Backpack Program through Community Table. She also reported that this program provides take-home meals for the weekend to elementary school students during the school year who otherwise would likely not have food until they return to school on Monday. Mrs. Holcombe additionally reported that they collected specific food items beginning at our Employee Appreciation Day event and continued with drop off points around campus until November 6 th. She added that they collected 454 pounds of food for the program through collection spots and student groups collected an additional 200 pounds.
Mrs. Holcombewent on to say that they continue to work towards sponsoring training sessions for staff members during the spring. She explained that they will be utilizing the expertise of members of our campus community to conduct these training sessions in a variety of areas, including child and adult CPR and Basic First Aid training.
COMMENTS FROM THE FACULTY CHAIR
Dr. Beam reported that the Secretary of the Faculty has arranged to have a folder set up on the university's "H" (shared) network drive to facilitate the business of faculty governance. He also reported that this provides folders for the Senate as a whole, as well as for each of the Senate's Councils to use as a repository of working documents and other items of interest.
Dr. Beam indicated that there has been considerable discussion of the topic of General Education, which has developed out of a proposal from the Honors College regarding their desire for an independent "Honors Path" curriculum. He mentioned that this has led to a statement of fundamental support from the Senate for a single general education program for all students, but a corresponding desire to establish a specific procedure for the consideration of alternative approaches. Dr. Beam added that the Senate is considering a faculty initiated overall review of the general education program, but the decision as to whether to engage in this is not yet finalized.
Dr. Beam mentioned that there is also some ongoing discussion as to how to deal with appropriate class observation, which is required for the Annual Faculty Evaluation process, for those classes which are taught completely, or largely, in an on-line format. He also mentioned that the concern is how to best provide for appropriate security while allowing the necessary observation.
Dr. Beam explained that in response to an expressed desire from some faculty members, he has encouraged the faculty, especially the members of the Faculty Senate, to try to engage more with the members of the Board. He also explained that he has started to make attempts to attend some committee meetings and hopes that others may have done so, as well. Dr. Beam further explained that he would like to work with the Board Chair to try to arrange for additional opportunities to enhance the relationship between the Board and the Faculty.
Mr. Warren stated that the faculty is always welcome and that the Board appreciates their input.
Mr. Warren added that the dates for the 2010 retreat have been changed to October 28 and 29, 2010.
ADJOURNMENT
Mr. Kiser moved to adjourn the meeting. Mr. Worley seconded the motion and the meeting was adjourned at 11:15 a.m.