September 3, 2010

REGULAR MEETING OF THE BOARD OF TRUSTEEES OF WESTERN CAROLINA UNIVERSITY

Room 510, H.F. Robinson Building September 3, 2010

The Board of Trustees of Western Carolina University met in regular session on September 3, 2010 in Room 510 of the H.F. Robinson Building. The meeting was called to order at 9:30 a.m. by Chancellor Bardo.

ATTENDANCE
The following members of the Board were present: Mr. Warren, Mr. Worley, Mrs. Williams, Mr. Little, Mr. Forsyth, Mr. Broadwell, Mrs. MacNeill, Ms. Saunooke, Mr. Dorsey, Dr. Siegel, Mrs. Wyche, Mr. Metcalf, and Mr. Kiser.

Others present: Chancellor Bardo; Interim Provost Stanford; Vice Chancellors Metcalf, Miller, and Wooten; Mrs. Lynch, Chief of Staff; Ms. Lochner, General Counsel; Mr. Fowler, CIO; Mr. Smith, Athletic Director; Mr. Frady, Staff Senate Chair; Ms. Allen, Alumni Association President; Mrs. Ashe, Administrative Assistant; Ms. Woody, Administrative Assistant; Mr. Studenc, Senior Director of News Services; Mrs. Plemmons, Administrative Assistant; Dr. McNelis, Faculty Senate Chair; Mr. Smith, Athletic Director; and Ms. Welch, Assistant Secretary to the Board.

ELECTION OF OFFICERS
Dr. Bardo called for nominations for Chair of the Board. Mrs. MacNeill nominated Steve Warren to continue as Board chair. She stated that his leadership and enthusiasm are unparalleled. There being no other nominations, Chancellor Bardo ruled 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 for their support.

Mr. Warren called for nominations for Vice Chair of the Board. Mr. Kiser nominated Charlie Worley as Vice Chair of the Board. Mr. Kiser stated that Mr. Worley had done an outstanding job this past year. 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. Warren called for nominations for Secretary of the Board. Mr. Metcalf nominated Teresa Williams as Secretary of the Board. He stated that she is an outstanding addition to this 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.

Mr. Warren read a portion of a letter from the State Ethics Commission attorney, Stacey A. Phipps, to Hannah Gage, Chair of the UNC Board of Governors, which states in part “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 further read “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. Thus, he has the potential for a conflict of interest. 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 Western Carolina University. This would include recusing himself to the extent that his interests would influence or could reasonably appear to influence his actions.” Mr. Warren explained that having read that, the Board has complied with the Ethics Act.

APPROVAL OF MINUTES
Mrs. MacNeill moved that the minutes of the June 4, 2010 regular meeting and the minutes of the July 16, 2010 Executive Committee telephone meeting of the Board be approved as distributed. Mr. Broadwell seconded the motion, and it was approved unanimously.

ELECTION OF ENDOWMENT BOARD MEMBERS
Mr. Warren moved that Joan MacNeill be elected for a three-year term on the Endowment Board of Trustees. Mr. Kiser 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; to consult with our attorney to consider and give instructions concerning a potential or actual claim, administrative procedure, or judicial action; and to consider the qualifications, competence, performance, condition of appointment of a public officer or employee or prospective public officer or employee. Ms. Saunooke seconded the motion, and it was approved unanimously. Mr. Warren asked Ms. Lynch, Mr. Smith, and Ms. Lochner to stay for the closed session.

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

REPORT OF THE ACADEMIC AFFAIRS AND PERSONNEL COMMITTEE
Mr. Worley stated that there were no action items. Mr. Worley began with informational updates.

Mr. Worley reported on the expansion of the public records law. He mentioned that North Carolina has always had one of the most protected personnel laws. Mr. Worley added that will change effective October 1, 2010 allowing release of full salary information including history with the institution, demotions, promotions, horizontal transfers, separations, classification changes, etc. We do not know the final details as yet.

Mr. Worley reported on the continuation of restrictions on employee salary increases. He mentioned that we continue to have the same restrictions as last year except for non-appropriated funds (grants, etc.). Mr. Worley gave an update on the payroll project. He stated that the University is still dealing with specific issues but all is going very well.

Mr. Worley mentioned that the University has lost the U.S. Department of Education Student Support Services Grant. He said that we have had this grant since 1978 supporting Student Support services (first generation, low income, disability) and lost it along with several other institutions. Mr. Worley explained that we have a 6.5% local tuition we collect, half of which goes to need-based tuition; the remainder can be spent on important identified programs. We took $160,000 out of this allocation to cover the Student Support Services program for this year, including three full-time staff.

Mr. Worley updated the Board on the Boyer Model Initiative. He reported that we now include a statement regarding Boyer in every advertisement. Mr. Worley stated that we are sponsoring a four day workshop in September on the Boyer model with 25 teams coming from all over the nation. He also stated that we are working very heavily with faculty on making the connection with scholarship and application within the community.

Mr. Worley also updated the Board on the College of Education and Allied Professions. Mr. Worley reported that one of Dean Schoon’s strategies is supporting technology, travel, scholarship and professional development for faculty and staff. Mr. Worley reported that TRACS is a system set up to identify students that want to be teachers (some as early as middle school). He added that CEAP recruits them heavily, assists them in getting admitted, advises them, assists them with classes, gets them licensed and follows them through their entire career until they retire with the mission of retaining the best and the brightest.

Mr. Worley stated that the information on notification of appointments is in the materials.

Mr. Warren stated that the questions for discussion on the committee reports are a learning process. He also stated that it is important from a Board standpoint that these questions promote discussions such as the Boyer model. He further stated that we need to be thinking about things like: are there non-monetary ways of helping employees? Mr. Warren mentioned that we need to make lives better in ways that don’t involve compensation. He added that the Board should take a look at how the budget constraints are affecting the student-teacher ratio.

REPORT OF THE ADMINISTRATION AND GOVERNANCE COMMITTEE
The committee voted to recommend a bylaw change to the full Board that will modify the name of the committee. Mrs. MacNeill moved on behalf of the committee to modify the change in the name of “Administration and Governance Committee” to “Administration, Governance and Trusteeship Committee.” The motion was approved unanimously. (BY-LAWS ON FILE WITH MINUTES MATERIALS IN TAB D-3)

Mrs. MacNeill moved that the slate of candidates for election to the Foundation Board, as discussed in closed session, be approved. The slate of candidates for election to the Foundation Board will be contingent upon their availability and willingness to serve his/her term. The motion was approved unanimously. (SLATE OF NAMES ON FILE WITH MINUTES MATERIALS IN TAB D-2)

Mrs. MacNeill reported on the new trustee orientation handbook. She stated that we will have this ready at our board retreat and will ask for time on the agenda to do a mock orientation for the full Board.

Mrs. MacNeill mentioned that Sam Miller, Vice Chancellor for Student Affairs, indicated that “Move-In” went very well and that students are happy with the new residence hall and the progress made on the Quad project. Mrs. MacNeill stated that it is a “Week of Welcome” for the new students to help them get ready for the semester.

Mrs. MacNeill explained that they looked at the strategic questions and they think that their committee is a big part of the master list of questions.

Mrs. MacNeill asked Mr. Dorsey to report on behalf of the Student Government Association.
Mr. Dorsey explained that the executive staff has been working on its goals and objectives for the next year. He stated that the overall goal is getting students involved in student organizations. Mr. Dorsey mentioned that he has met with all the other student body presidents from the other schools in the UNC system at the UNC-Association of Student Governments’ annual retreat. Mr. Dorsey added that through collaborating with the other UNC schools, he has some good ideas that WCU might be able to explore. He also added that they are looking forward to the upcoming semester.

REPORT OF THE FINANCE AND AUDIT COMMITTEE
Mr. Kiser stated that the committee was updated on the FY 08-09 Audit. He mentioned that the visit by the representative from the State Auditor’s Office was delayed as final audit findings have not been submitted to the University. Mr. Kiser also mentioned that an exit conference to discuss the draft findings was held; however, additional information was submitted by the University and the University is awaiting a response. He further mentioned that the State Auditor’s Office representative will be invited to report at the next Board of Trustee meeting.

Mr. Kiser stated that the committee was also updated on the FY 10-11 Audit Plan. He explained that the proposed audit plan for the current fiscal year was reviewed and discussed by the Committee and that the plan was unanimously approved by the Committee.

Mr. Kiser reported on the space lease between Western Carolina University and AB Technical Community College. He explained that, for the past several years, Western has utilized space in the Haynes Center and Tower on the Enka campus of AB Tech through a space utilization agreement. Mr. Kiser further noted that this agreement needs to be formalized through a lease agreement. Mr. Kiser moved on behalf of the committee to endorse a lease between Western Carolina University and AB Technical Community College on space containing 11,034 square feet that includes 39 offices and classrooms at an annual cost of $142,571.25. This lease would be all inclusive to cover custodial services, utilities, and normal maintenance. The lease would be forwarded to the Board of Governors and the State Property Office for approval and action. It was approved unanimously. (LEASE ON FILE WITH MINUTES MATERIALS IN TAB E-4)

Mr. Kiser updated the Board on the FY 10-11 Internal Audit Certification. He reported that the Office of Internal Audit must verify annually to UNC-GA that appropriate staff and procedures are in place to support an internal audit function. Mr. Kiser explained that the Committee reviewed the certification and unanimously endorsed the certification and authorized the Committee Chair to sign the Certification Letter.

Mr. Kiser stated that the internal auditor reviewed recently completed audit reports for institutional scholarships and a response to a State Auditor’s hotline call. In addition, the Internal Auditor reviewed the comments and suggestions that were submitted as part of the annual internal control self assessment process.

Mr. Kiser updated the Board on capital projects. Mr. Kiser added that highlights include a review of the Health and Gerontological Sciences Building that is 45 % complete and scheduled for completion in August 2011. He further added that a temporary Certificate of Occupancy was received for the Blue Ridge Residence Hall at 11:50 pm on August 10th. Mr. Kiser reported that the final punch list items are being completed and all beds are occupied. December 1, 2010 is the goal for complete close-out of this project. He mentioned that a contract has been approved for phase I and II of the central quad project. Phase I should be completed by December 2010 and Phase II by April 2011. Mr. Kiser stated that estimates for Phase III have been received and we are currently trying to identify funds to allow this project to move forward with completion by June 30, 2011. He noted that the University received notification of a $717,000 grant from Federal stimulus funds to improve the HVAC system in the Robinson Administration Building.

Mr. Kiser mentioned that, utilizing the strategic questions provided by Chairman Warren, the Committee began discussions about how it could think more strategically as it reviewed the business and financial operations of the University. He also mentioned that the Committee received copies of the PACE (President’s Advisory Council on Efficiency) report issued by UNC-GA which benchmarks the UNC campuses in a number of administrative categories. Mr. Kiser stated that the Committee also received a copy of the core requirements, comprehensive standards, and federal requirements for attaining SACS accreditation. He also stated that members of the Committee were encouraged to review the materials and to communicate with the Chairman or Vice Chancellor about topics they would like to discuss during future meetings.

COMMENTS BY CHAIRMAN WARREN
Mr. Warren thanked Melissa Wargo for the accreditation status presentation yesterday. He stated that the people responsible and accountable for that issue are moving toward getting the programs that we need accredited. Mr. Warren also stated that there was a great presentation from Kathy Wong and Cory Causby regarding the forecast for the workforce for the coming years. As we think more strategically like a Board, we need to be managing that situation and not lose the momentum. Mr. Warren complimented the Jackson County officials for the way they handled the opening of the Blue Ridge Residence Hall. This is a shining example of how the University and the community can work hand in hand. Mr. Warren stated that, with the Board’s permission, he would like to write a letter of thanks to the County officials on behalf of the Board.

Mr. Warren thanked Chancellor Bardo, who has gone through one more evaluation. He stated that, at every turn, the Chancellor always has an excellent evaluation with high marks. Mr. Warren expressed the gratitude of the Board for the leadership that he has provided over the years.

COMMENTS FROM CHANCELLOR AND PROGRESS REPORT ON ENROLLMENT
Dr. Bardo explained that Tom Ross will be the new President of the UNC system beginning January 1. He also explained that President-Elect Ross is from a long-time North Carolina family and currently the President of Davidson College. Dr. Bardo continued to say that President-Elect Ross was the director of the Z. Smith Reynolds Foundation; he was a judge, and he has WCU ties. He mentioned that these are all the things you want in a system head. Dr. Bardo added that he will miss Erskine Bowles.

Dr. Bardo stated that we have been asked to prepare for a possible State budget cut with a $500 tuition offset. He added that at this time, we are in pretty good shape. Dr. Bardo re-iterated that we are trying very hard not to lay off any employees.

Dr. Bardo noted that the Washington Center has listed WCU as one of the top service learning institutions in the country. Dr. Bardo mentioned that we will be reviewing our grants and contracts area and that we will be bringing Steve Leath from the UNC system to help review our entire operation.

Dr. Bardo reported that we be scheduling a signing for our first global business partnership in October. This is part of our millennial initiative.

Dr. Bardo went on to say that we are in discussion with Forest Hills regarding the planned campus development. He added that we continue in the discussion with prospective partners in the Millennial campus.

Dr. Bardo reported on the enrollment as of 9:00 am this morning. He stated that it looks like we will be 9,400-9,500. He mentioned that we have 1,440 freshmen with an average SAT of 1044, which is a record for us. He added that the retention rate is around 74% and that the average high school GPA for students that are here is 3.51.

COMMENTS FROM THE FACULTY SENATE CHAIR
Mr. Warren welcomed Dr. McNelis to the Board meeting and stated that he always looks forward to the Senate report because it keeps the Board in touch with what’s going on. Dr. McNelis stated that it is an honor to be representing the talented and dedicated faculty of WCU.

Dr. McNelis reported that the Senate councils and task forces continue to work on several issues from the previous year and have started investigating topics brought up at the Faculty Caucus held August 18. She also reported that the continuing work includes finalizing suggested changes to the tenure and review process to incorporate a major review routinely in the 2nd, 4th, and 6th years; starting the process of evaluating the proposed Honors College Liberal Studies curriculum; investigating the possibility of a memorial on campus for faculty; updating the patent policy; considering opening the Chancellor's Travel Fund to non-tenure-track faculty; and creating guidelines for awarding emeritus faculty status. Dr. McNelis further stated that these are not new issues, but they are not issues that should continue to be perpetuated. Thus, it is important that Faculty Senate, as the voice of the faculty in university policy and decision making matters, address them and make a concerted effort to start changing the culture on campus.

Dr. McNelis commented that the Senate Leadership has already taken one action to promote open communication. She added that, on August 23, the ``Getting to Know Your Faculty Senate'' guide was distributed electronically to all members of Academic Affairs on campus. She also added that the guide includes a pictorial directory of the faculty senators along with their contact information. Dr. McNelis further added that, to date, the response has been very positive.

Dr. McNelis mentioned that resolutions planned to come before the Faculty Senate on their first meeting, September 1, include: opening access to on-line student evaluations one week earlier and extending the availability window by that one week, and updating the attendance policy to allow excused absences for religious observances.

COMMENTS FROM THE STAFF SENATE CHAIR
Mr. Frady reported that the Staff Senate is currently working on a staff recognition program. He stated that this program will highlight staff accomplishments at WCU and will help recognize staff for their great service. Mr. Frady added that these accomplishments will be recognized at meetings and included in campus announcements.

Mr. Frady mentioned that the Staff Senate continues to raise money for its staff scholarship fund. He also mentioned that this has been one of the most rewarding projects the Senate has undertaken. Mr. Frady stated that the Staff Senate is also looking into a Staff Memorial and what it would mean for our campus. He added that the Staff Senate is planning to collaborate with the Faculty Senate to possibly create a university memorial site on campus.

Mr. Frady explained that Staff Senate has and is continuing to work to help employees without computer access to acquire computers for work related needs. He also explained that this facilitates staff access to campus emails and online timesheets.

Mr. Frady noted that the Staff Senate is currently working on implementing an Employee Emergency Assistance Fund. He added that this fund will provide confidential, financial assistance in the form of small grants to eligible WCU employees during times of financial crisis. Mr. Frady continued by saying that what makes this fund unique is that it will be for all employees, including both faculty and staff. The creation of this fund is in response to difficult economic times where there have been no raises, increasing health care costs and rising costs of living. Mr. Frady further stated that Staff Senate has worked with Legal Counsel and the Foundation to ensure this fund is set up and is sound. He mentioned that other universities in the UNC system have created similar funds. At several institutions, including Appalachian State University, the Board of Trustee members took the lead in donating to the fund to set the precedence. Mr. Frady also mentioned that it would be appreciated it if our Board members would support this fund because when leaders give support to a worthy cause, it will be successful. Mr. Frady concluded by saying that this will be a great year.

COMMENTS FROM THE ALUMNI ASSOCIATION PRESIDENT
Ms. Allen stated that she was very honored to be an alumnus of WCU. She mentioned that the Purple and Gold reunion weekend was held in June /July with alumni from 1939-1979. Ms. Allen reported that the association currently has 23 WCU alumni clubs and is hoping to add four more clubs this year. Ms. Allen remarked that they have a completed alumni directory this year. She mentioned that the association has welcomed five new members to the alumni board.

Mr. Broadwell asked if there was anything we could do regarding retention. He stated that the economy could be affecting our retention rate. Mr. Broadwell stated that we should ask “Why are we losing our students?” Dr. Bardo replied that we do contact them and find out why. He added that most of the reasons have to do with family issues. Dr. Bardo added that financial pressures are also part of this. Discussion of this issue followed.

ADJOURNMENT
There being no further business, the meeting was adjourned at 12:00 noon.