June 1, 2007

REGULAR MEETING OF THE BOARD OF TRUSTEES OF WESTERN CAROLINA UNIVERSITY

Room 510, H.F. Robinson Administration Building June 1, 2007

The Board of Trustees of Western Carolina University met in regular session on June 1, 2007 in Room 510 of the H. F. Robinson Administration Building. The meeting was called to order at 9:30 a.m. by Chairman Warren.

ATTENDANCE
The following members of the Board were present: Mr. Warren, Mrs. Burda, Mrs. Hyde, Mrs. MacNeill, Mr. Kiser, Mr. Little, Mr. Phillips, and Mr. Worley.

The following members of the Board were absent: Mr. Carlisle, Mr. Burgin, Mr. Bloemsma, Mrs. Wyche, and Mr. Metcalf.

Others present included: Chancellor Bardo; Vice Chancellors Caruso, Metcalf, and Wooten; Mrs. Lynch, Chief of Staff; Mr. Frady, Staff Forum Chair; Mr. Riouff, University Advisory Council Chair; Dr. Beam, Faculty Senate Chair; Mrs. Ashe, Administrative Assistant; Mr. Studenc, Senior Director of News Services; Dr. Lofquist, Associate Vice Chancellor for Academic Affairs; Mr. Patrick Kelly, Student Government Association Chief of Staff; Dr. Ken Burbank, Associate Professor of Engineering Technology; Mr. Kucharski, Legal Council; and Ms. Welch, Assistant Secretary of the Board of Trustees.

ETHICS STATEMENT
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
Mrs. MacNeill moved that, with the correction in the spelling of the word “affiars” to “affairs” on Page 5 under the heading of REPORT OF THE STUDENT AND ATHLETIC AFFAIRS COMMITTEE, that the March 23, 2007 Minutes be approved as mailed. Mrs. Burda seconded the motion and it was approved unanimously.

CLOSED SESSION
Mr. Kiser 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. Phillips seconded the motion and it was approved unanimously.

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

REPORT OF THE ACADEMIC AFFAIRS AND PERSONNEL COMMITTEE
Mrs. Hyde reported that the committee had a full meeting yesterday. She further reported that everything is very exciting and good people are coming to Western. Mrs. Hyde stated that Western is in a very competitive place.

Mr. Worley moved to collectively approve the items considered in closed session: the items include: title change for the Provost, appointment of Sam Miller as Vice Chancellor for Student Affairs, contract amendments for Coaches Hunter and Harper, and the awarding of tenure for three new deans. Mrs. MacNeill seconded the motion, and it was approved unanimously. Dr. Bardo mentioned that this was the best series of searches we have ever run.

Mrs. Hyde explained that the Personnel Committee reviewed the AFE-TPR document with editorial changes recently made. She further explained that the current tenure, promotion and reappointment (TPR) policies and procedures have not been revised since 1979. Mrs. Hyde stated that the university has undergone great change in 28 years, including expectations for faculty. She also stated that it is evident that the standards of the past do not reflect the conditions of the university that have resulted from the Chancellor’s call to create a more engaged university with high expectations for faculty and students.

Mrs. Hyde reported that the Provost requested the Faculty Senate to evaluate the current TPR sections of the personnel policies and make recommendations to not only streamline and make the TPR procedures clearer, but also to respond to the Chancellor’s call for a broader definition of scholarship, one that would reward faculty for being involved in engagement activities. Mrs. Hyde moved that the Board approve sections 4.02, 4.03, 4.04, 4.06, 4.07, 4.09 and 4.10 of the tenure, promotion and reappointment document. Mr. Worley seconded the motion, and it was approved unanimously.

Mrs. Hyde explained that the Southern Appalachian Biodiversity and Ecology Center
(SABEC) at WCU is proposed to serve as a regional identity and resource for natural
sciences education, research, and service focused on ecology and biotic diversity in the
mountain ecosystems of western North Carolina and surrounding areas. Mrs. Hyde
moved that the Board approve a Small “c” Center for The Southern Appalachian
Biodiversity and Ecology center (SABEC). Mr. Kiser seconded the motion, and it
was approved unanimously.

REPORT OF THE ADMINISTRATION, AUDIT AND FINANCE COMMITTEE
Mrs. Burda asked Mr. Wooten to speak on the lease to Duke Energy. Mr. Wooten reported that the committee reviewed a proposal from Duke Energy to upgrade the public river access area for canoes/kayaks and trailered drift boats at the Cullowhee dam. Presently, Western Carolina University has a 30-day revocable license with TVA for a parcel of property adjacent to the University property which lies above the dam. He also reported that this property and the property owned by Western are used for short term parking and river access. Mr. Wooten further reported that as part their re-licensing process, Duke Energy has offered to make improvements to various recreational locations along the river and this is one of the proposed sites for improvements. He mentioned that Duke is proposing to upgrade the parking lot and build or improve the sites for removing and launching boats. Mr. Wooten also mentioned that they have agreed to assume all maintenance of these facilities for the life of their license. He further stated that in order for this action to take place, Western would need to transfer their license agreement with TVA to Duke Energy and to lease the parcel of land owned by WCU to Duke Energy. Mr. Wooten stated that these actions would not negatively impact our water in-take or limit access to the dam. Mrs. Burda moved that the Board approve that Western transfer the TVA license to Duke Energy and to request the Office of State Property to negotiate a lease with Duke Energy for the property owned by WCU. She stated that these two parcels would be improved at the expense of Duke Energy for recreational use by students and the Cullowhee community. Mrs. Hyde stated that Duke Energy is a good corporate citizen. Mrs. Hyde seconded the motion, and it was approved unanimously.

Mrs. Burda reported that over the past several years, staff and faculty have requested a payroll deduction opportunity for parking registration; however, the payroll system would not accommodate another deduction. She further reported that improvements to the system now offer the payroll deduction opportunity and based on meetings and input from various campus groups, the staff and faculty are very supportive of this opportunity. Mrs. Burda mentioned that the Board originally approved a $53.00 annual fee; however, a request is now made to increase the parking fee for faculty and staff to $60.00 per year or $5.00 per month. Mrs. Burda moved that the Board approve a $60.00, payroll deducted parking fee for faculty and staff for FY 07-08. Mr. Kiser seconded the motion, and it was approved unanimously.

Mrs. Burda stated that various internal audits had been performed since the last meeting.

Mrs. Burda asked Mr. Wooten to give an update on the new dining facility and other projects. Mr. Wooten reported that bids for constructing the new dining facility were received from three firms on April 17, 2007. He further reported that the successful bidder is Yeargin-Potter & Shackelford out of Greenville, SC. Mr. Wooten stated that the construction bids were within the budget projections and contract development is in process. He also stated that the actual demolition of Helder Residence Hall will take place over the summer and construction should begin in late August or early September 2007. Mr. Wooten further mentioned that the anticipated completion date of the new dining facility is November, 2008.

Mr. Wooten reported that the final 2000 higher education bond projects are either under construction, out for bid, or in the final stages of design. He also reported that the Stillwell Building renovations are on schedule and will be completed in December 2007 and that the building will be ready for occupancy in spring 2008. Mr. Wooten further reported that the bid date for the Forsyth Building project is set for June 20, 2007. He stated that the student recreation center project has begun and is on schedule for a fall 2008 completion. Mr. Wooten also stated that work is continuing on the plans for the replacements of Helder and Leatherwood Dorms. He further stated that presently, the designer is obtaining an updated cost proposal following a series of value engineering efforts.

Mr. Wooten mentioned that the Board received an updated copy of the FY 07-08 budget that compares the Governor’s, House, and Senate budgets. He also mentioned that a conference committee will be formed soon and negotiations will begin and asked that the Board members help. Mrs. Burda asked Mr. Wooten to supply the Board with talking points.

Mrs. Burda reported that a revised audit program for the Student Supply and Clothing Store has been endorsed. She stated that the staff recommended modifying our current audit program away from a focus on financial reporting to a focus on agreed upon procedures. Mrs. Burda further stated that the areas of focus will include the inventory system, credit memos, accounts payable and revenue analysis.

REPORT OF THE ALUMNI, HONORS, AND EXTERNAL AFFAIRS COMMITTEE
Mr. Phillips reported that pledges and contributions to the Campaign for Western now total $36, 948,915, which represents 92.4 percent of the $40 million campaign goal. He further reported that includes $28.2 million for endowments and $8.7 million for current use. Mr. Phillips stated that endowments are designated as follows: $13.4 million for faculty support, $10.9 million for student support (scholarships), and $3.9 million for program support. He also stated that the gifts designated for endowments include $10.2 million in cash receipts. Mr. Phillips commented that the pledges total $8.6 million, bequests and deferred gifts total $9.3 million, and contributions to athletics total $3.2 million.

Mr. Phillips reported that an initiative announced by former UNC system President C.D. Spangler Jr. is expected to net the campaign at least $3.0 million. He also reported that the initiative’s goal is to create 6 new endowments for distinguished professors on each of the UNC system’s 16 campuses. Mr. Phillips further reported that Western’s Advancement staff is exploring the possibility of doubling – from $3.0 million to $6.0 million – the Spangler initiative benefits to Western.

Mr. Phillips outlined a proposal, initiated by Western, to the Lowe’s company that Lowe’s become the first state corporation to establish an endowment supporting a distinguished professorship on each of the 16 UNC campuses. He also stated that the UNC system President Erskine Bowles has been enlisted in support of the proposal.

Mr. Phillips reported that there are 164 new donors in the campus campaign with gifts totaling $337,000 designated for 53 areas on campus. He also reported that the campaign will be continued through the summer and into fall.

Mr. Phillips stated that the Foundation has receipted $3.3 million in annual fund support, an increase of 9.0 percent over last fiscal year. He also stated that the Foundation transferred $334,000 in in-kind contributions to the university at the Foundation board’s May 18 meeting.

Mr. Phillips challenged each Board member to 100% giving to Western’s Capital Campaign.

Mr. Phillips presented the slates of names for the 2007 Foundation Board of Directors. Mr. Worley moved that the board approve the slate of names presented as members of the Western Carolina University Foundation Board of Directors for a three-year term. Mr. Phillips seconded the motion, and it was approved unanimously. (SLATE OF NAMES LISTED IN TAB E)

Dr. Bardo stated that the campaign should be in excess of $60 million when the first phase is completed this fall. He further stated that the number of endowed professors has changed and Western is 4th in the UNC system. Dr. Bardo also mentioned that we will have 34 endowed professors, either in hand or in trust. He said “hats off” to everyone who has contributed to make this campaign work.

REPORT OF THE STUDENT AND ATHLETIC AFFAIRS COMMITTEE
Mrs. MacNeill moved that the Board approve the Brown Activity Center (BAC) as a BYOB venue to supplement Illusions in the University Center effective Fall 2007. Mrs. MacNeill stated that the BAC will be a “satellite operation” of the University Center and will operate under the auspices of the UC Director. She further stated that the BYOB event procedures in Brown will be the same as those used in Illusions. Mr. Little seconded the motion, and it was approved unanimously.

Mrs. MacNeill spoke regarding the Brown Activity Center. She stated that Base Camp Cullowhee has already moved to one wing of Brown, and the rest of the building will be used for an activity center and grill/sports bar, effective this Fall. Mrs. MacNeill mentioned that such activities will include: video games, pool tables, air hockey, a stage area, music, movies, and a computer area.

Mrs. MacNeill stated that the final report on the Health Services Study Group has been completed and the recommendations have been sent to Chancellor Bardo for review.

Mrs. MacNeill reported on the Scott Hall Initiative. She stated that this is a key
component of our student retention plan for the Fall. Mrs. MacNeill mentioned that it
will be a freshman experience hall designed to facilitate the academic, social, and
emotional development of all participants and focused on the cultivation of human
potential. She also mentioned that the program differs from past attempts at “freshman
halls” because of the widespread support anticipated from such areas as: Advising,
Orientation, Career Services, University Center/Leadership, SACS/QEP, Student Success
Centers, Student Affairs/Enrollment Services, Academic Affairs, Faculty, and Residential
Living.

Mrs. MacNeill reported that the GPA average on all athletes has improved. She also reported that Western is having good success in baseball and we are in the NCAA finals. Mrs. MacNeill further reported that women’s golf and men’s track won championships.

Mrs. MacNeill asked Mr. Kiser to report on the Football Task Force. Mr. Kiser stated that there is a lot of excitement and interest. He also stated that they have been working a lot on the subcommittee level. Mr. Kiser mentioned that the task force has met again and it hopes to wrap up everything in mid-June and present its findings to the Chancellor and Athletic Director. He also mentioned that it would go public with its findings; but first felt that it is important to have the support of the Board of Trustees. Mr. Kiser stated that it is premature to bring it before the Board at this time. He further stated that the findings would be brought before the Board in September. Mr. Kiser mentioned that the Committee is working hard and nutrition is a big thing. Mrs. MacNeill stated that this is a very important task force and that we appreciate the work of the group.

Mrs. MacNeill reported that the University has a new Student Government Association President, Aaron Bloemsma. She also reported that Mr. Bloemsma could not attend this meeting and asked Patrick Kelly, the new SGA Chief of Staff, to give a report. Mr. Kelly stated that Cody Grasty is now the Vice President of the State Association of Student Governments and that he is a graduate student here at Western. He also stated that a bill has passed in the House that the ASG President votes on the Board of Governors. Mr. Kelly mentioned that the goal this year is to educate campus on the role of the student government. He further mentioned that the SGA doesn’t currently do a good job of educating the campus about what the administration and the Board of Trustees do. Mr. Kelly stated that everyone is on the same team. Mr. Kelly mentioned that the SGA has created a “Fired Up” team to talk to organizations about how to create organizations which help retention. He further mentioned that Mr. Bloemsma is looking forward to working with this Board.

COMMENTS FROM CHAIRMAN WARREN
Mr. Warren passed out a sheet with the 2007 Trustee meeting date changes and the 2008 proposed Trustee meeting dates. He stated that if any Trustee misses three consecutive meetings, then they will forfeit their position on the Board.

Mr. Warren stated that this is Mrs. Hyde’s last meeting. He further mentioned that her service has been of extraordinary quality and that all the Board members have been privileged to serve alongside her. Mr. Warren further stated that she is a person of extraordinary accomplishment: a former United Stated Ambassador, an extraordinarily accomplished business woman, and a devoted wife. He commented that what had been of particular note to him is that he could count on one hand how many times Mrs. Hyde used the word “I”; she is not an “I” person; she is a “we” person. He further commented that her whole life has been committed to benefiting and furthering the wellbeing of her fellow citizens, and, in this case, the students of Western Carolina University. Mr. Warren asked Mrs. Hyde to always remember the Board and said that the Board will always remember her. Mrs. Hyde responded by saying that it has been her privilege to serve on this Board and that she loves everyone and the University.

Mr. Warren reported that this is Dr. Caruso’s last meeting also. He stated that when Dr. Caruso came to this campus, the Division of Student Affairs was in a “less than desirable” state. Mr. Warren stated that Dr. Caruso had the imagination and the courage to develop novel approaches to better the quality of life for the students here at Western. He further stated that Dr. Caruso will be leaving this place better than he found it. Mr. Warren commented that the Board will miss him very much. Dr. Caruso thanked everyone for the opportunity to work with this fine Board and institution.

Mr. Warren commented that this is his last meeting as Chairman of the Board. He stated that it has been a wonderful journey for him and that the last two years have constituted the signal honor of his life, because of the people on this Board. Mr. Warren also stated that it is not about him, but this office that he holds has a majesty to it and it is expedientially increased when you get to lead people of such quality, leadership and accomplishment. He thanked the Board for the opportunity to have served in this office. Mr. Warren talked about accomplishments of the Board and that they should all be proud. He stated that Western is now recognized as a thought-leader in higher education. Mr. Warren mentioned that, in the past year, Western has re-organized its colleges to better advance the mission of the University, approved new recommendations for tenure and promotion, approved the construction of new residence halls, approved a new audit charter, approved the construction of a new dining facility, joined in the most successful Capital Campaign this University has ever witnessed, have let our voices be heard on the issue of improving the salary of the staff, and have monitored and endorsed an imaginative accreditation plan which received the enthusiastic approval of the SACS committee. Mr. Warren mentioned that, as a former student of Western, it has been incredibly satisfying for him to be the Board’s chairman. He also said to his friends on the Board “thank you” and that it has been an honor to serve as your chair; and for him, for the first time, to understand this truly great University.

COMMENTS FROM CHANCELLOR BARDO AND PROGRESS REPORT ON ENROLLMENT
Dr. Bardo stated that it has been an extraordinary journey so far. He mentioned that it is rare in anyone’s life, without uprooting and moving the family, to reinvent yourself. Dr. Bardo stated that Mr. Warren’s partnership has enabled him to reinvent his role as Chancellor. Dr. Bardo said that to look at the University after twelve years, he feels like we are just starting to put all of the pieces in place. He also stated that Mr. Warren has been Chairman of the Board in, what is likely, the most important year that this University has experienced in the last thirty years and may not experience again in the next thirty years. Dr. Bardo further stated that the things we did this year could have unraveled the University, if it had been done at another time. He commented that Mr. Warren’s partnership has been special to this University and thanked him for his time as Chairman.

Dr. Bardo thanked Richard Beam for his work this year in the Faculty Senate.

Dr. Bardo mentioned that President Bowles was coming to Western next Wednesday, with fourteen members of his team, to look at the UNC-Tomorrow Initiative. He also mentioned that we have made a response to that initiative for the President’s review prior to his arrival to our campus. Dr. Bardo stated that we got through SACS accreditation and that they made a few minor recommendations which we are responding to. He also stated that the only two comments regarding our QEP was that it is national groundbreaking work, that they have been trying to get universities to do this for years and we are doing it.

Dr. Bardo stated that we have had a retention review conducted by MGT of America. He also stated that a draft of the review is thoughtful and will cause us to take some difficult actions. Dr. Bardo further stated that if we get a final draft, it will be brought to the Board in September.

Dr. Bardo mentioned the Master Plan revisions that they saw this morning and that we will be bringing Millennial Campus Plan revisions as we move forward.

Dr. Bardo commented on the Senate budget. Dr. Bardo thanked everyone who made phone calls to the legislature.

Dr. Bardo reported that one of the issues in football is relatively low self-esteem. He further reported that he is working with Mr. Chip Smith to figure out how to develop the kinds of activities that create an understanding of tradition. Dr. Bardo mentioned that Western is thinking about reinstituting a program called the “Cat Walk” that emulates what is being done at Tennessee and most major schools. He further mentioned that two hours before a football game the team will meet dressed in their uniforms and they will march to the stadium. Dr. Bardo also mentioned that the team would march by the cat and touch the cat to remind themselves of what they are here for. He stated that each game is important to the institution.

REPORT FROM THE STAFF FORUM CHAIR
Mr. Frady stated that the Staff Forum is finalizing the criteria for its scholarship and will be awarding the first one in the Fall. He also stated that this is his last meeting and that the Staff Forum will have a new Chairman representing them at the next Board meeting. Mr. Frady mentioned that the Staff Forum is working on proposals that will come to the Board later. He thanked the Board for its action to allow the parking fee to go through payroll deduction.

REPORT FROM THE FACULTY SENATE CHAIR
Dr. Beam stated that a number of things have gone on in the Faculty Senate. He mentioned that one of the most important items is the adoption of the tenure guidelines which were approved today. Dr. Beam stated that there are a number of other areas that action has been taken action on including suggestions regarding the treatment of non-tenure track faculty members; policy revisions for the academic probation for continuing students, and suggestions that the Faculty Assembly charter be revised. He also stated that the Senate has asked the Provost to take specific actions to insure that internal searches satisfy the need to find the strongest possible candidates. Dr. Beam further stated that there are many things left to do, such as solving issues regarding the intellectual property policy. Dr. Beam commented that the curriculum approval process desperately needs revision to make it more efficient and functional and that work will begin on that process next week.

ADJOURNMENT
There being no further business Mr. Worley moved to adjourn the meeting. Mr. Kiser seconded the motion and it was approved unanimously. The meeting was adjourned at 11:35 a.m.