September 4, 2009

REGULAR MEETING OF THE BOARD OF TRUSTEES OF WESTERN CAROLINA UNIVERSITY

Room 510, H.F. Robinson Building September 4, 2009

The Board of Trustees of Western Carolina University met in regular session on September 4, 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: Mr. Warren, Mr. Kiser, Mr. Little, Ms. Saunooke, Mr. Worley, Mr. Metcalf, Dr. Siegel, Mr. Broadwell and Mr. Cotton.

The following members of the Board were absent: Mrs. Wyche, Mr. Forsyth, Mrs. Williams and Mrs. MacNeill.

Others present: Chancellor Bardo; Dr. Carter, Provost and Senior Vice Chancellor; Vice Chancellors Metcalf, Miller and Wooten; Mrs. Lynch, Chief of Staff; Mr. Fowler, CIO; Mr. Kucharski, General Counsel; Mr. Smith, Athletic Director; Mr. Studenc, Senior Director of News Services; Reporter, Ms. Merchant, Smoky Mountain News; Dr. Beam, Faculty Senate Chair; Mr. Barry Bidwell, IT Services; Ms. Woody, Administrative Assistant; Mrs. Ashe, Administrative Assistant; and Ms. Welch, Assistant Secretary to the Board.

SWEARING-IN OF BOARD MEMBERS
Ms. Saunooke and Mr. Broadwell, newly appointed members of the Board of Trustees, and Mr. Little and Mr. Metcalf, re-appointed members of the Board of Trustees, were sworn in by Judge Danny Davis.

ELECTION OF OFFICERS
Dr. Bardo called for nominations for Chair of the Board. Mr. Kiser nominated Steve Warren as Chair of the Board. Mr. Little moved that the nominations be closed and that Mr. Warren be elected by acclamation. Mr. Warren was elected Chair of the Board by acclamation.

Mr. Warren thanked everyone. He also mentioned that he was particularly sad that Mrs. MacNeill was not able to attend the meeting.

Mr. Warren called for nominations for Vice Chair of the Board. Mr. Little nominated Charlie Worley as Vice Chair of the Board. Mr. Warren moved that the nominations be closed and that Mr. Worley be elected by acclamation. Mr. Worley was elected Vice Chair of the Board by acclamation.

Mr. Worley thanked everyone.

Mr. Warren called for nominations for Secretary of the Board. Mr. Metcalf nominated Teresa Williams as Secretary of the Board. Mr. Warren moved that the nominations be closed and that Mrs. Williams be elected by acclamation. Mrs. Williams was elected Secretary of the Board by acclamation.

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
Mr. Worley moved that the minutes of the June 5, 2009 regular meeting and the minutes of the July 16, 2009 Executive Committee telephone meeting of the Board be approved as distributed. Mr. Cotton seconded the motion, and it was approved unanimously. (MINUTES ON FILE WITH MINUTES MATERIALS IN TAB B)

ELECTION OF ENDOWMENT BOARD MEMBERS
Mr. Warren nominated George Little for a full, three-year term on the Endowment Board of Trustees. He also nominated Joan MacNeill to complete the remainder of his own term on the Endowment Board. Mr. Broadwell moved that the Board approve Mr. Little and Mrs. MacNeill as Endowment Board members. Mr. Worley seconded the motion, and it was approved unanimously.

CLOSED SESSION
Mr. Worley 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 and to hear or investigate a complaint, charge, or grievance by or against a public officer or employee. Dr. Siegel seconded the motion and it was approved unanimously. Dr. Bardo asked that Mr. Kucharski stay for the closed session.

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

Mr. Warren welcomed Mr. Broadwell and Ms. Saunooke to the Board. Mr. Warren extended his congratulations to Ms. Saunooke for the Eastern Band of Cherokee Indians Tribal Council election. He stated that it speaks to her commitment to her community to serve on the University Board. Mr. Warren stated that the new Trustees make the Board stronger. He also stated that Mr. Broadwell served on the Board of Governors and that he will bring insight on how this process relates to the Board of Governors and the system as a whole. Mr. Warren expressed his appreciation to Mr. Broadwell for his willingness to step up to a promotion to the Board of Trustees of Western Carolina University!

REPORT OF THE ACADEMIC AFFAIRS AND PERSONNEL COMMITTEE
Mr. Worley reported that the committee moved to approve changes to the Promotion, Tenure, Reappointment and Post-Tenure Review process. He also reported that the changes were approved by the Board and sent to General Administration for their approval. Mr. Worley stated that the changes were made in response to comments from General Administration. He also stated that the changes were reviewed and approved by the faculty. Mr. Worley mentioned that most of the changes are non-substantive in nature. Mr. Worley stated that the Committee recommended approval of these changes to the policy. Mr. Warren added that the Board is proud of how the Boyer model has been explicitly incorporated in the tenure process. Mr. Worley moved on behalf of the committee that the Board approve changes to the Promotion, Tenure, Reappointment and Post-Tenure Review process as disclosed. The motion was approved unanimously. (CHANGES ON FILE WITH MINUTES MATERIALS IN TAB C-2A THROUGH C-2D)

Mr. Worley moved on behalf of the committee that the Board withdraw the previous action to curtail the Clinical Lab Sciences program and, instead, move forward with an abeyance of the program. This information went to General Administration and they took the position that we can operate or eliminate a program, but not curtail a program. The motion was approved unanimously. (CLINICAL LAB SCIENCES INFORMATION ON FILE WITH MINUTES MATERIALS IN TAB C-4)

Mr. Worley reported that there were a number of notifications of appointments which can be found in the materials.

Mr. Worley stated that Dean Robert Kehrberg provided the committee with a history of the College of Fine and Performing Arts as well as a summary of current activities within the college regarding the QEP, CFPA strategic plan, and the collaboration with Dillsboro.

Mr. Worley mentioned that Kathy Wong provided the committee with information as to how WCU is managing the multiple requests for information from the News and Observer.

REPORT OF THE ADMINISTRATION, FINANCE AND AUDIT COMMITTEE
Mr. Kiser asked Mr. Wooten to update the Board regarding our resale electric operation. Mr. Wooten explained that Western Carolina University operates a resale electric company that provides electricity to approximately 2700 customers who live in close proximity to the campus. He also explained that Duke Energy, our current provider, has given notice that they will terminate our existing agreement on March 31, 2010. Mr. Wooten stated that, at the same time, they are offering to provide a 20 year contract to continue providing this service to University with the rates increasing by 16% for each of the first three years. He also stated that Western has engaged a consultant to assist in the evaluation of the contract and to determine if other more cost effective options exist. Mr. Wooten mentioned that, based on our research, Duke Energy has the best rates and most reliable source of electricity. Mr. Kiser moved on behalf of the committee that the University enter into a contract with Duke Energy to provide wholesale electricity to the University and to authorize the University Attorney and Chancellor to negotiate the appropriate terms and conditions that benefit the University. The motion was approved unanimously. (DUKE ENERGY CONTRACT ON FILE WITH MINUTES MATERIALS IN TAB D1 and D1A)

Mr. Kiser reported that the committee reviewed the list of best financial practices related to an audit committee as approved by the UNC Board of Governors. He also reported that the Committee authorized the Committee Chair to notify the Chair of the UNC Board of Governors that Western was in compliance with those practices as set forth in a letter to the chair of the UNC Board of Governors dated September 3, 2009.

Mr. Kiser stated that the committee reviewed and approved the proposed internal audit schedule for FY 09-10.

Mr. Kiser explained that the Committee reviewed and discussed the external auditor’s comments included as part of the FY 07-08 financial report as well as the University’s responses to those comments. He also explained that Donna Allen, Office of the State Auditor, and University staff were present for the discussion. Mr. Kiser further explained that the Committee acknowledged that it was satisfied with the University’s responses and felt appropriate action had been taken to address the comments.

Mr. Kiser reported on the property transfer between Cullowhee Fire Department and the State of North Carolina. He mentioned that the UNC Board of Governors has approved the University’s request for a no cost transfer of 2.9 acres and the request has now been submitted to the State Property Office for action.

Mr. Kiser explained that Western Carolina University has submitted an application to the North Carolina Utilities Commission for a rate case increase related to its resale electric operations. He also explained that our last rate increase was in 1993 and this increase is a direct result of the increase in wholesale power costs from Duke Energy. Mr. Kiser further explained that, if approved, these new rates will take effect on April 1, 2010. He stated that under our proposal, the rates to our customers will increase by approximately 9%. Mr. Kiser also stated that under State statute, profits from a utility system must flow to the endowment fund. He further stated that even with this increase, the rates for customers of the Western Carolina University resale operations will continue to be below the average cost of electricity in North Carolina.

Mr. Kiser reported that Western Carolina University took action in spring of 2009 to make sufficient budget reductions to accomplish the required budget reductions and budget reversions and do not expect to have to take additional reductions to comply with FY 09-10 budget. He thanked the University for being proactive last year in realizing what needed to be done. Dr. Bardo explained what we did with the budget. He also explained that a lot of hard work had to be done to keep on top of the budget cuts. Dr. Bardo further explained that we made our decisions early and we should be able to handle any additional cuts through attrition and administration. Mr. Kiser mentioned that the campus is continuing to review administrative costs and will voluntarily make some adjustments in middle and upper management positions.

Mr. Kiser stated that the Courtyard Dining facility and Balsam Residence Hall have been completed and are currently being utilized. He also stated that work is progressing on the Health Building and a tentative agreement has been reached with the general contractor of the Fine and Performing Arts Center that will allow this project to be closed out.

REPORT OF THE ALUMNI, HONORS AND EXTERNAL AFFAIRS COMMITTEE
Mr. Little moved on behalf of the committee to adopt the Addendum to the March 2006 Revision of the Guidelines for Naming University Facilities, Academic Units, and Endowed Funds to encourage and recognize faculty, staff, and student support of University programs. Designated spaces may be named for faculty, staff, or student gifts at 75 percent of the required minimum identified in these guidelines. The motion was approved unanimously. (NAMING GUIDELINES ON FILE WITH MINUTES MATERIALS IN TAB E-2)

Mr. Little moved on behalf of the committee to reelect the following nominees to the Western Carolina University Foundation Board of Directors for three-year terms, beginning on July 1, 2009: Frank Brown, III, Joe Crocker, Robert M. Failing, Linda Jones Hudson Gilbert, Roland Johnson, Dick Jones and David Steed. He also moved to elect the following nominees to the Class of 2012, Roger Plemens and Wardell Townsend and to the Class of 2011, Keith Ramsey. The motion was approved unanimously. (FOUNDATION BOARD OF DIRECTORS INFORMATION ON FILE WITH MINUTES MATERIALS IN TAB E-3)

Mr. Little updated the Board on the Capital Campaign. He mentioned that there would be a campaign celebration on homecoming weekend in October. Mr. Little also mentioned that this is the conclusion of the first major campaign in Western’s history. He also encouraged the new Board members to donate.

REPORT OF THE STUDENT AND ATHLETIC AFFAIRS COMMITTEE
Mr. Metcalf asked Josh Cotton to report on behalf of the Student Government Association. Mr. Cotton explained that the SGA has a very enthusiastic new staff. He stated that Freshman Orientation and Valley Ballyhoo went very well. Mr. Cotton mentioned that students seem to be interested and are getting involved. He also mentioned that ASG had its first meeting last weekend.

Mr. Metcalf stated that baseball student-athlete, Ross Hefley, was named to the Freshman All-America Team by the publication Baseball America. He also stated that five members of the track program were named to the US Track & Field and Cross Country Coaches Association All Academic Track and Field team.

Mr. Metcalf mentioned that the women’s basketball team ranked eighth in the Women’s Basketball Coaches Association Academic Top 25 list. He also mentioned that it is the third straight year they have been ranked and the fourth year in program history.

Mr. Metcalf reported that two members of the women’s golf team (Elin Mickelsson, Rachel Nelson) were named as All American Scholars by the National Golf Coaches Association.

Mr. Metcalf explained that a gender equity review of the athletic program has been scheduled for October; this has been done as a prudent measure to assess our status since adding softball and to help plan for the future.
Mr. Metcalf stated that The Catamount Club had a very productive year in FY 2009, with a 61% increase in annual giving revenue, from $241,855 to $387,298, over FY08. He also stated that a new level, the Champions Club level of $11,500 was instituted and has seen solid growth in the first year. Catamount Club membership (giving of $150 or more) increased from 543 to 678 during the same time.

Mr. Metcalf expressed that the university community was deeply saddened by the death of football student-athlete Ja’Quayvin Smalls in July. He asked Chip Smith to comment. Mr. Smith stated that incoming student, Ja’Quayvin Smalls, died during a spring practice in July. He mentioned that Mr. Smalls was a native of Charleston, SC and a transfer student from Georgia Military College. Mr. Smith stated that Athletics received information that this could potentially be a sickle cell case; however, they had not received an autopsy report. He explained that Western has looked at its procedures, reviewed them and has instituted some changes in the training program requiring all student-athletes to undergo sickle cell testing and requiring coaches to look at how they conduct the first five days of practice, as those are “at risk” days.
Mr. Smith thanked Dr. Miller and the Residential Living personnel for having staff at the emergency room. He further mentioned that the Smalls family had requested that our logo be put on Ja’Quayvin’s headstone.

Mr. Metcalf reported that, earlier this year, the Student Affairs Staff Development Committee and Student Affairs Department Heads began work to create a new Strategic Plan for the Division. He also reported that they are building on the plan adopted in 2004 and the University’s new strategic plan. A concise list of key priorities and initiatives was adopted this summer. Mr. Metcalf further reported that with key priorities identified, a comprehensive “program review” based assessment plan is being finalized.

Mr. Metcalf explained that we are building on the success of the Western PEAKS living-learning communities for First Year students. Western EXTREMES debuts this fall. This initiative provides increased support for sophomores and juniors with the goal of enhancing their retention and progress towards graduation. Mr. Metcalf further explained that it is a collaborative effort between many offices.

Mr. Metcalf asked Dr. Miller to talk about the opening of the school semester. Dr. Miller stated that the First Year class enrollment is approximately 1,550 students and WCU’s Week of Welcome activities were very successful. He also stated that this was the second year that new First Year students have been required to attend a Freshman Class Assembly as well as complete an on-line alcohol and substance abuse education program.

Dr. Miller mentioned that Balsam Hall opened just in time for 298 students out of the 426 total. He also mentioned that Balsam Hall was completed this week and those 128 students in temporary spaces are moving today and tomorrow into their new residence hall spaces. Dr. Miller thanked the Jackson County Building Inspector’s Office for their help to insure a safe and fully tested residence hall.

Mr. Warren commented that, since Dr. Miller has instituted the substance abuse education program, there has been a 56% drop in alcohol abuse.

APPROVAL OF BY-LAWS
Mr. Worley asked that the Board look at the changes regarding attendance/quorum made to the By-Laws after the workshop yesterday. He asked for questions or discussion from the Board. Mr. Worley moved that the Board adopt the revisions to Board of Trustees By-Laws. The motion was approved unanimously. (BY-LAWS ON FILE WITH MINUTES MATERIALS)

COMMENTS BY CHAIRMAN WARREN
Mr. Warren mentioned that yesterday was a significant day for the University with the groundbreaking of the Health and Human Sciences Building. He stated that John Bardo has a vision to take the necessary steps to get the University to its goal. Mr. Warren also stated that it has been an honor to be on this Board for six years to build on the future.

Mr. Warren asked the Board to complete updates to their biographical information and to please turn them in to Mrs. Ashe. Mr. Warren mentioned that the Board of Trustees Retreat this year will be at Western on November 5 and 6.

COMMENTS FROM CHANCELLOR AND PROGRESS REPORT ON ENROLLMENT
Dr. Bardo gave an enrollment update. He reported that, as of this morning, the University is just shy of 9,400 students with a Freshmen class of 1,551. Dr. Bardo also reported that the retention rate is above the national average for institutions of our type at 75.9%. He further reported that we should have 15-16,000 applications next year. Dr. Bardo mentioned that the average GPA is 3.49, which is the highest in our history.

Dr. Bardo explained that Marc Basnight approached Clifton Metcalf about performers for the Manteo Fourth of July celebration. Dr. Bardo further explained that our group was wonderful and that he heard rave reviews. He thanked faculty and students in the Music Department who put this performance together.

Dr. Bardo reported that U.S. News now ranks Western as one of Top 10 of its type in the South. He also reported that Western rated “among the best” in many programs. Dr. Bardo further reported that the Undergraduate Research program was ranked 4th in the nation in the number of students who presented.

Dr. Bardo talked about press coverage regarding NC State and the Bain report at Chapel Hill. He stated that the Executive team has worked very hard on making required reductions. Dr. Bardo also stated that 92% of our cuts came from administration and 8% from academics. He further stated that Dr. Carter and the Deans have worked on issues around teaching loads, the allocation of faculty positions, and the number of people in a class. Dr. Bardo mentioned that right now we have to use our money wisely and that we are stewards of the public purse. He also mentioned that President Bowles is pushing hard for significant cuts in administration. Dr. Bardo further mentioned that we will be reducing senior and middle management positions this year. Dr. Bardo also explained that we should make students, student learning, and the people of the region the centerpiece. He reported that will do everything we can to minimize costs, and, at the same time, enhance the quality of what we do. Dr. Bardo mentioned that he is going to put the general education review on hiatus for awhile. He also mentioned that we will not do any further reorganization of the academic units at this time.

COMMENTS FROM THE FACULTY SENATE CHAIR
Dr. Beam mentioned that, as school has just started, the Faculty Senate is finishing getting organized for the year and its work is just getting underway. He mentioned that the Faculty Senate had its first meeting last Wednesday and adopted a resolution approving the practice of having approval of “Special Studies” programs be completed at the College level. This simplifies this process by eliminating unneeded approvals at higher levels. Dr. Beam also mentioned that the Faculty Senate approved the changes to Section 4.0 of the Faculty Handbook to comply with the recommendations of University Counsel and the changes to the Code made by the Board of Governors, which this Board has taken action on today.

Dr. Beam stated that there has also been a suggestion made to him that there are at least some on the Senate, and in the faculty as a whole, who think that it might be desirable for increased contact between this Board and the Senate and/or the General Faculty. He also stated that he will be discussing the possibilities for this with the Chancellor and the Provost. It is his hope that something can be arranged for enhancing the relationship between the Board and the faculty in the fairly near future.

COMMENTS FROM THE STAFF SENATE CHAIR
Mrs. Holcombe reported that she is the new Staff Senate Chair and there are a lot of new senate members. She also reported that they have a full Senate this year, with all twenty slots being full.

Mrs. Holcombe stated that there is a Staff Senate scholarship for children, grandchildren, nieces and nephews of University employees. She also stated that Adam Ray, the son of Chris Ray, is this year’s recipient.

Mrs. Holcombe mentioned that Dr. Siegel had presented on the topic of celebrating differences yesterday and that everyone was very pleased with the program. She thanked Dr. Siegel for her work.

Mrs. Holcombe explained that there is a potential for the establishment for an Employee Assistance Fund for faculty and staff who are experiencing some type of temporary financial hardship.

ADJOURNMENT
There being no further business, Mr. Broadwell made a motion that the meeting be adjourned. Mr. Little seconded the motion and the meeting was adjourned at 11:45 a.m.