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March 13, 2009

REGULAR MEETING OF THE BOARD OF TRUSTEES OF WESTERN CAROLINA UNIVERSITY

Room 510, H.F. Robinson Building March 13, 2009

The Board of Trustees of Western Carolina University met in regular session on March 13, 2009 in Room 510 of the H.F. Robinson Building. The meeting was called to order at 9:30 a.m.

ATTENDANCE
The following members of the Board were present: Mrs. MacNeill, Mr. Warren, Mr. Kiser, Mr. Worley, Dr. Siegel, Mrs. Williams, Mr. Metcalf, and Mr. Frixen.

The following members of the Board were absent: Mrs. Wyche, Mr. Carlisle, Mr. Little, Mr. Phillips, and Mrs. Burda.

Others present: Chancellor Bardo; Dr. Carter, Provost and Senior Vice Chancellor; Vice Chancellors Metcalf, Miller and Wooten; Dr. Beam, Faculty Senate Chair; Mr. Tate, Staff Senate Chair; Mr. Smith, Athletic Director; Mrs. Wong, Human Resources Director; Mrs. Ashe, Administrative Assistant; Ms. Lochner, Associate General Counsel; Mr. Mitchell, Smoky Mountain News; Mr. Justice, University Controller; Mr. O’Quinn, Director of Budgets and Financial Planning; Mrs. Lynch, Chief of Staff; and Ms. Welch, Assistant Secretary to the Board.
Mrs. MacNeill thanked Dr. Miller and his staff for a great program.

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 December 3, 2008 regular meeting, the minutes of the December 2, 2008 special meeting, and the minutes of the February 5, 2009 teleconference of the Executive Committee be approved as distributed. Mr. Warren seconded the motion, and it was approved unanimously.

ENROLLMENT AND BUDGET PRESENTATION BY CHANCELLOR BARDO
Dr. Bardo stated that his presentation will focus on three items: enrollment, budgeting, and the next steps. He gave a PowerPoint presentation and there was discussion. Mrs. MacNeill thanked everyone for their thought and compassion. (POWERPOINT PRESENTATION ON FILE WITH MINUTES MATERIALS)

CLOSED SESSION
Mr. Warren moved that the Board go into closed session to establish or instruct the staff or agent concerning the negotiation of the price and terms of a contract concerning the acquisition of real property and to consider the qualifications, competence, performance, condition of appointment of a public officer or employee or prospective public officer or employee. Mr. Worley seconded the motion, and it was approved unanimously. Dr. Bardo asked that Mrs. Lynch, Dr. Carter, Dr. Miller, Mr. Wooten, Mr. Metcalf, Mrs. Wong and Ms. Lochner stay for the closed session.

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

Dr. Bardo stated that we will be working hard in the legislature as a proponent for furloughs. He also stated that we want the option in NC for furloughing state employees. Dr. Bardo mentioned that we want local control and to protect low income workers. He also mentioned that we need flexibility to manage this. He reported that the state health plan is in the red and the premiums, co-pays and deductibles will be raised. A discussion of furloughs followed.

REPORT OF THE ACADEMIC AFFAIRS AND PERSONNEL COMMITTEE
Mr. Worley stated that the Board approved two items in closed session.

Mr. Worley reported the following informational items: notification of one Leave of Absence;
notification of two Professor Emeritus Status requests; notification of one Administrative Appointment; notification of three Athletic Appointments; notification of Faculty Appointments as follows: Arts and Sciences – four, College of Education and Allied Professions – one, College of Health and Human Sciences – one.

Mr. Worley also reported that the Provost and deans began working on reduction scenarios in early December. He mentioned that WCU was required to present to General Administration 3%, 5% and 7% reduction scenarios by January 15, 2009. Mr. Worley stated that Dr. Carter reviewed the reduction decisions with the personnel committee. He also stated that this has allowed us to re-create curriculum and scheduling practices that will provide better scope and sequence. Mr. Worley further stated that we anticipate this to be a three year issue. He reported that our challenge is to make sure we have the best educational environment, keeping morale up and making sure everyone has the proper information.

REPORT OF THE ADMINISTRATION, FINANCE AND AUDIT COMMITTEE
Mr. Kiser stated that there are two action items. He asked Mr. Wooten to explain the action item pertaining to property exchange.

Mr. Wooten explained that Jackson County, on behalf of the Cullowhee Fire Department, has asked the University to consider the exchange of property to allow the Cullowhee Fire Department to expand its current facility located on Old Savannah Road. He also explained that the Cullowhee Fire Department property is contiguous to State Property on three sides. Mr. Wooten mentioned that the Jackson County Commissioners have asked the University to provide 2.903 acres located west of the current fire department. In return, Jackson County would provide the University with 3.323 acres located to the north of the current fire department. He added that Jackson County will agree to remove and relocate, at its own expense, the staffed recycling center located behind the Cullowhee Fire Department. Mr. Wooten explained that the State Property Office will require appraisals on both parcels to confirm an equal exchange and the expense of those appraisals would be borne by the County and/or fire department. He also explained that the AFA committee endorses this exchange of property as shown on the survey prepared by Davenport and Associates, Inc. Mr. Wooten mentioned that the transfer of property would be conditional upon the relocation of the staffed recycling center and the restriction that the property could only be used for the construction of a building to house a volunteer fire department. Mr. Kiser made a motion on behalf of the committee that the Board approve the consideration to exchange property with Jackson County to allow the Cullowhee Fire Department to relocate. The motion was approved unanimously.

Mr. Kiser reported that the second item for action is an Amendment to the Operating Agreement between Western and the Research and Development Corporation. He stated that presently an associated entity agreement exists between the University and the WCU Research and Development Corporation. Mr. Kiser moved on behalf of the committee that the Board approve the first amendment to the associated entity agreement modifying Section 7.3 that further clarifies and defines the purpose of funds provided to the WCU R&D Corporation by the University. It was approved unanimously.

Mr. Kiser mentioned that the Internal Auditor reviewed with the Committee the projects that had been completed since the last Board Meeting. He also mentioned that this included the audit reports for the University Bookstore and the Intercollegiate Athletics Program. Mr. Kiser further mentioned that the Committee was informed of an upcoming internal auditor peer review and a campus wide risk assessment project.

Mr. Kiser reported that the UNC Board of Governors has acted on the campus requests for tuition and fee increases. He also reported that, at the recommendation of President Bowles, resident undergraduate tuition requests were reduced by 33% at all campuses. He further reported that at Western, our requested increase of $42 annually was reduced to $28. He added that the special tuition increase for the Certified Registered Nurse Anesthetist program was withdrawn by the Chancellor. The tuition for these students was only increased by the same amount as was approved for other graduate students. Dr. Bardo stated that WestCare and Haywood hospitals, which provide the bulk of the funding for a number of the smaller, more rural hospitals, are having major financial problems. He also stated that we felt that raising the tuition at a time when they were struggling made no sense, as the hospitals are bearing the costs, not the students. Dr. Bardo further stated that we want to work with them to help maintain quality health care for the people of this region.

Mr. Kiser explained that bids were opened on March 5th for the Health and Gerontological Sciences Building. He also explained that the project included $37.7 million for construction and the designer had estimated a cost of $38 million. Mr. Kiser further explained that the low bid was $31.8 million and the apparent responsive responsible bidder is Vannoy Construction Company located in Boone NC. He stated that this company has done a number of projects at ASU and they were one of the pre-qualified bidders for the project. Mr. Kiser also stated that the necessary steps are underway to prepare a contract to allow the release of funds and the project to begin. He further stated that the estimated construction period is 30 months which will probably be fall semester 2011.

Mr. Kiser asked Mr. Wooten to cover the high points regarding the FY 07-08 financial report. Mr. Wooten stated that since the auditors have not completed their findings yet, the Board could only look at a draft. He introduced the University Controller, Bobby Justice, to present the draft copy of the FY 07-08 financial report. Mr. Justice mentioned that The Office of State Auditor has completed their field work; however, they have not issued their audit report so the financial report must stay in a draft status until the official audit has been released. Mr. Justice presented the highlights of the financial statements. (FINANCIAL REPORT ON FILE WITH MINUTES MATERIALS)

Mr. Wooten stated that we do not anticipate anything that suggests any wrong-doing or impropriety. However, there will probably be a couple of issues that we will have to address when they issue their final audit report. He also stated that, in the future, they will present a draft audit report to the Board every December, even if the State Auditor is not finished. He explained that a final report will follow. Mr. Wooten mentioned that we always invite the State Auditor to meet with the AFA Committee.

REPORT OF THE ALUMNI, HONORS AND EXTERNAL AFFAIRS COMMITTEE
Mr. Metcalf reported that due to the recession economy, 92 of 212 endowments in Foundation accounts are “under water” – i.e. present market values are less than historic (or gift) values. He also reported that approximately $181,000 less, therefore, will be available for scholarships from those accounts this year than was available last year. Mr. Metcalf further reported that the staff is reviewing each account to identify ways whereby additional monies might be raised to restore funding.

Mr. Metcalf mentioned that fundraising in both the Foundation and WCU Endowment through February is a positive 31.4 percent above the same period in fiscal 2007-2008. He also mentioned that the number of restricted and unrestricted gifts to the Loyalty Fund to date (2,935) remains parallel to last year’s trends, but gifts are, on average, smaller and Loyalty Fund receipt totals continue about 16 percent behind last year’s totals. He further mentioned that some donors have requested extensions on previously agreed to installment payments.

Mr. Metcalf stated that phonathons recently resumed for the colleges have provided approximately $30,000 in new money for five academic units. Professional fundraising staffing remains a critical issue in unit-level fundraising.

Mr. Metcalf explained that the committee reviewed nominees for the Foundation Board Class of 2012 to be elected at the Trustees’ June meeting. He stated that Trustees who have candidates they wish to be considered are asked to submit those names to Chancellor Bardo or Clifton Metcalf.

REPORT OF THE STUDENT AND ATHLETIC AFFAIRS COMMITTEE
Mr. Warren reported that both the men’s and women’s indoor track teams placed second at the Southern Conference track championships. He also reported that WCU student-athlete Manteo Mitchell was named as both the Most Outstanding Athlete and the Most Outstanding Track Performer of the men’s meet. Mr. Warren further reported that Matt Evans from WCU was named the Most Outstanding Field Performer for the men and Janet Carothers from WCU was named Most Outstanding Track Performer of the women’s meet.

Mr. Warren stated that men’s basketball finished the season with a 16-15 record and shared the SoCon's North Division title, which is the program's second such finish and its first since 1996. He also stated that it includes the most wins in Coach Larry Hunter's WCU career and a record 11 wins at the Ramsey Center. Harouna Mutomba was named the Southern Conference Freshman of the Year.

Mr. Warren explained that women’s basketball finished the season with a 21-11, third place in the regular season and tournament champions. He also explained that Brooke Johnson from WCU was named the tournament Most Outstanding Player. He mentioned that the team will open play in the NCAA tournament during the weekend of March 21-22, 2009.

Mr. Warren stated that Manuel Concepcion was hired as the head volleyball coach. He also stated that Manuel was most recently the assistant coach at the University of Evansville.

Mr. Warren remarked on WCU diversity initiatives. He stated that following several incidents last year, President Bowles appointed a commission to review UNC policies on hate crimes and acts of violence or intimidation. Mr. Warren also stated that this effort has in turn prompted a system-wide review of diversity programs and services. Mr. Warren further stated that the commission requested that each campus prepare a summary report on Diversity Initiatives. He invited the Board to look at WCU’s information which is available on the WCU website at http://diversity.wcu.edu/.

Mr. Warren mentioned that WCU has a variety of initiatives in place to encourage and support an inclusive environment. He added that WCU is in the process of reestablishing a full-time position that will provide leadership and coordination for diversity initiatives as well as serve as the equal employment opportunity officer.
Mr. Warren explained that on March 3, 2009, while students were away for spring break, WCU hosted an emergency preparedness drill in conjunction with regional public safety agencies. He also explained that the exercise was funded by a grant received by Jackson County and included a live exercise scenario of an active shooter on the campus. Mr. Warren further explained that it was a successful test of WCU and local law enforcement agencies’ capabilities.

Mr. Warren asked Mr. Frixen to report on behalf of the Student Government Association. Mr. Warren added that this is Mr. Frixen’s last meeting with the Board and that it has been a joy and honor to serve with him. Mr. Frixen reported that student morale seems to be at its highest point in a long time. Mr. Frixen further reported that every student was proud of the achievement of the Lady Cats and their recent victory, and many even came to welcome and congratulate the team at midnight, when they returned from Chattanooga. He stated that recently, a series of random power outages has been bothering students. Mr. Frixen asked Mr. Wooten to comment. Mr. Wooten stated that we are trying to energize our new residence hall and, unfortunately, the contractor does not have all of the wires exactly correct yet. He also stated that when we turn on the switch to the residence hall, it trips all of our breakers and shuts the power off. Mr. Wooten further stated that hopefully that will be corrected soon. Mr. Frixen mentioned that many students, especially graduating seniors, are extremely displeased with the progress of construction on the new Courtyard dining hall. Mr. Wooten stated that the dining hall contractor now says they will be off-site by the end of May.

Mr. Frixen mentioned that Senators have been considering a green fee initiative. Mr. Frixen explained that the purpose for the proposed green fee is to guarantee funding for environmental programs, events, and services by collecting an additional small fee when tuition is due. He also explained that the collected monies could only be applied to initiatives with an environmental intent. However, this fee is still in its infancy stage, and much more research, planning, and student input is necessary before any official proposal comes from SGA.

Mr. Frixen reported that Dr. Miller presented the recommendation to SGA that, because of budget issues, the school do away with summer and fall commencements. He stated that the SGA approved eliminating the summer commencement, but felt strongly that fall commencement should be kept.

Mr. Frixen stated that he served on a tailgating committee review meeting and made recommendations to Dr. Miller regarding last season’s football tailgating policies. He added that SGA would like for Athletics to review their ticketing process because, as it is now, students must go on-line, print out their ticket and take it to the game. Mr. Frixen mentioned that if a student forgets their on-line print-out, they must stand in a different line and wait to get their ticket. He also stated that the SGA diversity council has been hard at work arranging diversity-focused programming that not only address issues of diversity with students, but between diversity-based organizations as well. Mr. Frixen mentioned that the SGA is currently planning a session during which the Chancellor and other administrators will make a budget presentation to students.


COMMENTS BY CHAIRMAN MACNEILL
Mrs. MacNeill began by presenting Mr. Frixen with a gift as a token of appreciation for serving on the Board. She stated that Mr. Frixen is a great representative of Western Carolina University and wished him the best for the future.

Mrs. MacNeill thanked everyone for being here today as it was an important meeting with tough work. She stated that the Board self-assessment went very well. Mrs. MacNeill added that we will establish a task force to work on some of the issues that were discussed. She asked for everyone who would like to be involved on the task force to let her know. Mrs. MacNeill stated that the task force will establish expectations for Board members and the structure of the committees, etc.

She introduced Ms. Lochner to discuss the Statement of Economic Interest. She stated that April 15th is the deadline for filing. Ms. Lochner mentioned that this biennium is also the required refresher training in ethics and that the Ethics Commission will offer a variety of online video conferencing. Ms. Lochner also explained that the materials being handed to them are the General Administration Disclosure of Substantial Interest Forms. She further explained that GA will accept copies of the SEI’s. Ms. Lochner stated that, even though the memo asks them to send their completed forms to the Board secretary, she recommends that they send their forms directly to the commission. Ms. Lochner further reminded everyone that new Board members have to be trained within six months of their arrival. She mentioned that we have confirmed that people going off the Board do not have to go through the training but do need to file an SEI.

Mrs. MacNeill stated that these are very challenging times but there are always opportunities in challenging times. She also stated that we will end up stronger and better.

CHANCELLOR’S COMMENTS
Dr. Bardo mentioned that there was a miscommunication during the shooter simulation and for about ten minutes we thought we had a real situation. This created an interesting situation for a while.

COMMENTS FROM THE STAFF SENATE CHAIR
Mr. Tate commented that the Staff Forum recently changed its name to Staff Senate. He reported that because of the current budget situation, he has asked the Staff Senate to help develop an emergency assistance project with the goal of helping employees who are laid off. Mr. Tate mentioned that a major part of that will hopefully include an assistance fund. He stated that he formed an ad hoc committee, which will begin its work next week. Mr. Tate explained that this is a difficult time to say the least, and a scary one for many staff. He also stated that the Senate wants to do all that it can to make it easier.
Mr. Tate thanked Dr. Siegel for talking with him recently. He mentioned that she has volunteered to speak at Western in the fall on the topic of diversity. Mr. Tate added that he recently learned that our Multicultural Affairs office would like to help plan for that event. He added that the event is expected to be of interest not just to staff, but to students and faculty as well.

Mrs. MacNeill mentioned that Mr. Tate is rotating off as Senate Chair and he will be getting married this June. She thanked him for his service.
COMMENTS FROM THE FACULTY CHAIR
Dr. Beam thanked the Board for the chance to report on the actions of the Faculty since the last Board meeting. He stated that things have been a little slow for the Senate recently, due, in part to concerns over the current budgetary situation and the Christmas holidays, but they have taken some action. These actions include: approving a Certificate program in Culturally Based Native Health; approving a process for formalizing requests for extension of the tenure probationary period and the post tenure review period for appropriate reasons including childbirth, adoption, other health or professionally related reasons; and, approving a standard time period for the execution of the student assessment of instruction process for all classes.

Dr. Beam added that the General Faculty has, just this week, amended the Constitution and By-laws of the General Faculty by adopting the revisions proposed by the Rules Committee and the Faculty Senate. He also mentioned that these documents should now be easier to read and understand and they should more closely reflect the changes in practice which were required by the recent restructuring of the university.

ADJOURNMENT
There being no further business, Mr. Kiser moved to adjourn the meeting. Mr. Worley seconded the motion and the meeting was adjourned at 12:45 p.m.

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