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OFFICIAL PROCEEDINGS OF THE ONE HUNDRED AND SEVENTIETH MEETING OCTOBER 2 AND 3, 1997 I. CALL TO ORDER The meeting of the Wright State University Board of Trustees was called to order by Daniel W. Duval, chair, on Thursday, October 2, 1997, 4:00 pm, in Room E157 of the Student Union. Ms. Daisy Duncan Foster called the roll:
II. PROOF OF NOTICE OF MEETING Mr. Duval reported that this meeting was called by written notification and that a quorum was present. III. DISPOSITION OF PREVIOUS MINUTES Mr. Duval moved that the June 5-6, 1997 minutes be approved as submitted. Mr. Diggs seconded, and the motion was unanimously approved, by voice vote. IV. EXECUTIVE SESSION In accordance with the Ohio Open Meetings Law, the Board, after a majority of a quorum, determined to hold an Executive Session by offering the following resolution:
RESOLUTION 98-3 RESOLVED that the Wright State University Board of Trustees agreed to hold Executive Session on Thursday, October 2, 1997, and be it further RESOLVED that pursuant to the Ohio Revised Code 121.22 (G), the following issues may be discussed in Executive Session: Mr. Diggs moved for approval. Ms. Ditmer seconded, and the motion was unanimously approved by roll call vote. V. RECESS Following the Executive Session, the President's Cabinet and the student trustees were invited to join the Board for dinner at Rockafield House. VI. RECONVENE - ROLL CALL The Wright State University Board of Trustees reconvened on Friday, October 3, 1997, 8:30 am, in the Berry Room of the Ervin J. Nutter Center. Ms. Foster called the roll:
Mr. Duval stated that the Wright State University Board of Trustees is a public body subject to the Ohio Open Meetings Act. It operates on a fixed agenda available to those attending the meeting. Persons wishing to address the Board in its public session should submit a written request to the Board of Trustees' office 72 hours in advance of the meeting in order to be placed on the agenda. However, all persons address the Board at the invitation of the Board and are subject to time limitations and other guidelines established to maintain the good order of the meeting. VII. INSTALLATION OF BOARD MEMBERS The oath of office was administered by Judge Frederick Young to newly appointed board members, Martin D. Jenkins and Euvondia Barto VIII. PRESENTATION AND POLICY DISCUSSION A. 1998 US Air Show - 1998 National Aerospace Conference Dan Duval, chair of the 1998 US Air Show; Brad Tillson, chair of the 2003 Committee, and, Harley Flack, chair of the 1998 National Aerospace Conference, presented an overview of these three outstanding initiatives being developed for the Miami Valley. A copy of their presentation is on file in the Board of Trustees' office. IX. REPORT OF THE CHAIR A. Introduction of New Board Members Martin D. Jenkins Martin D. Jenkins is senior associate with the Organizational Resources Group (ORG) in Columbus, Ohio. In 1983, Mr. Jenkins founded this management consulting business which provides strategic management, organizational assessment and design, executive succession and program evaluation services principally to public and non-profit organizations. Mr. Jenkins also was associate director of The Ohio State University School of Public Policy and Management. The program delivered the management advancement program to professional public administrators at all levels of local, state and federal government. In addition, Mr. Jenkins directed special training sessions and organizational assessments for public and private entities. He also served as a member of the OSU's strategic planning committee. An active civic volunteer, Mr. Jenkins is a presenter for the Worthington/Upper Arlington Summer Institute; founding board member of Strategies Against Violence Everywhere; member of the fire department advisory board for the city of Worthington; a judge for the Ohio Historical Society's Ohio History Day; and a founding member of the Friends of the Worthington Public Library. Mr. Jenkins and his wife Melinda reside in Worthington, Ohio. They are the parents of one adult son. Mr. Jenkins' term as a trustee will end in 2006. Euvondia Barto Euvondia Barto is a senior majoring in computer engineering, with a minor in business administration. Ms. Barto served as a college representative to Student Government for one year prior to her selection as a student trustee. In addition to serving as chair of the Wright Engineering Council Representative Assembly, Ms. Barto was a member of the Dean's Steering Committee, coordinator for National Engineers' Week, an instructor for Engineering 82, vice-president of the Society of Women Engineers, and is actively involved as a member of several university and college committees. She has received the dean's award from the college, along with many scholarships and other honors and recognition awards. B. Trustees' Retreat Mr. Duval, chair, reported on the Trustees' Retreat held on September 19-20, 1997, at Ridgeleigh Terrace in Kettering. At the retreat, the study done by Grenzebach Glier & Associates giving a preliminary indication as to whether Wright State is ready for a capital campaign was presented. It would be Wright State's first public campaign to raise funds. The Board is still studying this report. Grenzebach Glier & Associates reported that generally Wright State University enjoys a positive image among its constituents with an overall positive attitude towards the university among those interviewed. They also recommended that Wright State go forward with a comprehensive campaign focused on endowment and on-going program support. Edward Howard also reported to the Board on a study they did accessing the reputation Wright State had among key audiences such as the Miami Valley business community, the Miami Valley community leaders, alumni, and the Miami Valley educational community. They came to similar conclusions. Wright State will go ahead with a campaign that will improve the image of the university and better communicate the positive things happening here. Mr. Palmer, Mr. Diggs and Ms. Rapp have reviewed the by-laws of the university and will make recommendations to revise and modernize them for action by the Board at their December meeting. Ms. Heard is collecting all the policies that the Wright State Board has approved over the last 30 years. These policies will be reviewed and updated so that the Board will have an accurate record of policies approved by them. C. Support for K-12 Funding Within the last month the debate over the issue of state funding for primary and secondary education in Ohio has reached the higher education community. This involves a proposal being advanced by certain state legislators that would result in cuts to higher education as the solution to the funding of primary and secondary education as mandated by the Ohio Supreme Court. It was suggested that as a member of the Board of Trustees, the members voice strong opposition to any proposal that suggests addressing the K-12 funding issue by cutting the higher education budget. Legislative leaders have indicated that any ballot issue won't be placed before the voters until May 1998 which means that a plan must be in place by February 1998. The following resolution was offered to express concern over this issue: RESOLUTION 98-4 WHEREAS, the Ohio Supreme Court opined that the current method implemented by the state for the funding of primary and secondary education is unconstitutional; and WHEREAS, that court decision requires the Ohio legislature to develop a new plan for court approval prior to March 24, 1998; and WHEREAS, the Ohio legislature is considering various proposals for development of a new plan, one or more of said proposals which could result in significant cuts to state financial support for public higher education; and WHEREAS, the Wright State University Board of Trustees believes that any proposal that cuts state funding for higher education would result in an ill-conceived public policy, and seriously harm the quality of public higher education in Ohio; and WHEREAS, the Wright State University Board of Trustees believes that such a proposal could also result in a negative impact on primary and secondary education and the highly effective collaborations those institutions have with the university; and WHEREAS, Wright State University recently implemented budget reduction actions in order to engage in meaningful cost-saving measures as a result of earlier reductions in state funding for higher education; and WHEREAS, the Wright State University Board of Trustees believes that all levels of public education, namely primary, secondary and post secondary, are vital to the economic strength of the state and the quality of life of its citizens and should be sufficiently funded to provide excellence in education at all levels; now therefore, BE IT RESOLVED, that the Wright State University Board of Trustees strongly urges the Ohio legislature to reject any proposals for the funding of primary and secondary education that would result in cuts to the state support of public education. Ms. Ditmer moved for approval. Mr. Diggs seconded, and the motion was unanimously adopted by voice vote. D. Affirming Faculty Senate The following resolution was presented for the Board's approval: RESOLUTION 98-5 WHEREAS, the Board of Trustees supports and encourages shared self-governance through meaningful dialogue and interaction among faculty, staff and administrators with the process remaining internal to the university; and WHEREAS, faculty deliberative advice has always played a major role in decisions affecting the university; and WHEREAS, the Board of Trustees supports collegial, civil, and productive faculty involvement in university matters; therefore be it, RESOLVED, that the Wright State University Board of Trustees fully affirms the Faculty Senate as the legitimate representative voice of faculty governance on the campus of Wright State University. Mr. Palmer moved for approval. Mr. Soin seconded, and the motion was adopted with Ms. Ditmer abstaining. X. REPORT OF THE PRESIDENT A. 1997-98 University Administration Priorities Report President Flack reported on the administration's priorities for the coming academic year which include promoting student success and enrollment. A list of the 1997-98 Administration Priorities is on file in the Board office. B. Report on Continuous Quality Improvement Projects Dr. Lillie Howard reported to the Board the highest enrollment at Wright State since 1991 with an enrollment of 16,033, up 2.1% over 1996. Student credit hours are also up 2.0% from the previous year. Not only were goals set for the university but also each individual college. Enrollment highlights that Dr. Howard shared with the Board are as follows: first-year students increased by 195 (10%); minority students increased by 218 (12%); African American students increased by 224 (18%); percentage of women increased from 55% to 56%; international students increased by 40 (11%); degree undergraduate students that are full time increased from 78% to 79%; and, first-year retention rate of direct from high school increased from 67% to 70%. Dr. Dan Abrahamowicz highlighted the profile of the first-year class. Direct from high school increased by 195 students or a 10% increase. The African American population increased by 46 or 22% from last year's figure. Dr. Abrahamowicz reviewed some of the academic success indicators of the incoming students. The average ACT composite score for incoming class is 21.2, with a high school GPA of 2.92. One of the factors that will enhance retention is delivering quality services to students. A CQI team is in place which is comprised of about 10 staff from student affairs, academic affairs and business and fiscal affairs offices. This team was formed over a year ago with the charge of quality service through continuous improvement. One of the developments of this group is the Raider Express Center which is a one-stop information and service center, located in E146 Student Union. Students will handle basic processes thus allowing staff to assist other students with more complex problems and issues. Development of cross-trained staff, training modules, comprehensive service and information manuals are planned for the most effective operation of the center. The center will open the end of October.
C. Founders' Day Appreciation With special thanks to Dr. Jack Fistler, vice president of university advancement, for his outstanding efforts, Dr. Flack also expressed his appreciation to members of the Founders' Day Planning Committee: Cindy Young from Public Relations, Joe Mingo from Government and Military Relations, Terri Mileo-Webb and Jane Schelb of Conferences and Special Events, George Frey from the Television Center, Gary Barlow from the WSU Retirees Association, Molly Brown-Bouley from Alumni Relations, Vicki Montavon from University Libraries, Leota Geigle from University Development, Dawne Dewey from Special Collections and Archives, and Lynnette Heard from the President's Office. Several enjoyable events and special activities brought together many friends and familiar faces from the university's past and present. This celebration laid the groundwork for future commemorations , perhaps every 10 years, of the university's founding. D. Promotion and Tenure The university-wide Promotion and Tenure Committee agreed to conduct a mail ballot to consider recommendations received from the College of Engineering and Computer Science Promotion and Tenure Committee for consideration of tenure for the following new university faculty members: Dr. P. Bruce Berra, Professor of Computer Science and Director of the Information Technology Research Institute Dr. Richard J. Koubek, Professor of Engineering and Chair of the Department of Human Factors Engineering Both new faculty members held tenured positions at their previous institutions, and both have distinguished records of scholarship, teaching, and service. The University Promotion and Tenure Committee has approved the recommendation of the College Committee and the Dean. RESOLUTION 98-6 RESOLVED that the promotion and tenure recommendations as submitted to this meeting be, and the same hereby are approved. Mr. Soin moved for approval. Ms. Ditmer seconded, and the motion was adopted, by roll call vote. Ms. Foster abstained. E. Confirmation of Academic and Administrative Appointments and Changes Since the last Board meeting, the following academic and administrative appointments, changes, retirements, departmental reporting, resignations and terminations have been made: RESOLUTION 98-7 RESOLVED that the academic and administrative appointments, changes, retirements, department reporting, resignations and terminations submitted to this meeting be, and the same hereby are approved. Mr. Palmer moved for approval. Mr. Diggs seconded, and the motion was unanimously adopted, by roll call vote. F. Report on Investments Dr. Flack reported that since the last Board meeting, investments for May 31, June 30, July 31 and August 30, 1997, have been received. These reports have been distributed to the trustees and will be filed with the official Board of Trustees records. G. Acceptance of Gifts and Donations The following gifts have been received and acknowledgments sent to the donors: To the Department of Printing Service Kodak Imagemaker
IM Camera Estimated Value - $3,000.00
To the Laboratory Animal Resources - School of Medicine Surgical instruments, medical equipment
Estimated Value - $4,049.00
To the Athletics Department Reception for Golf Outing
Estimated Value - $1,905.03 1987 Rebuilt Club Golf Car Estimated Value - $3,650.00
To the Pathology Department - School of Medicine Medical Books
Estimated Value - $4,000.00 Medical Books Estimated Value - $3,800.00
To the Women's Center Book Collection
Estimated Value - $549.00
To the College of Business and Administration Computer Equipment
Estimated Value - $1,000.00
To the Athletics Department Two Fifty Foot Covers
Estimated Value - $1,347.00
To the College of Nursing and Health GroupSystems (Electronic Meeting Software)
(50 User Site Licenses) Estimated Value - $53,750.00
To the College of Engineering and Computer Science 408 Pads, Zipper Pouches and Binders; 432 Pens
Estimated Value - $2,413.62
To the Electrical Engineering Department Software and/or Devices
Estimated Value - $9,600.00
To the College of Engineering and Computer Science One Wireless Logger and One Base Station for Electric Car Program
Estimated Value - $5,990.00
The following resolution was submitted for the Board's approval: RESOLUTION 98-8 RESOLVED that the gifts and donations listed above are hereby accepted. Mr. Soin moved for approval. Ms. Ditmer seconded, and the motion was unanimously adopted by roll call vote. H. Ratification of Contracts and Grants Dr. Flack reported that since the last meeting of the Board of Trustees, $2,673,956 in contracts and grants has been received. Wright State University ended its fiscal year on June 30, 1997, with a record volume of grant and contract awards amounting to $31,336,991, a 20% increase in sponsored programs funding from the previous fiscal year. Awards for research comprise more than 56% of Wright State University's funding, and federal sponsors support nearly 50% of the projects awarded to faculty and staff. The faculty are to be congratulated for their continuing success in securing externally funded grants and contracts. The following resolution was submitted for approval by the Board: RESOLUTION 98-9 RESOLVED that the contracts and grants submitted to this meeting be, and the same hereby are ratified. Mr. Palmer moved for approval. Mr. Diggs seconded, and the motion was unanimously ratified by roll call vote. XI. REPORTS OF THE COMMITTEES OF THE BOARD
A. Academic Affairs Committee Ms. Foster, chair, reported on the Academic Affairs Committee meeting of September 24, 1997. The Strategic Planning Council held its first meeting of the academic year on September 19, 1997. The council will work to advance and encourage the achievement of the goals established in the Strategic Plan approved by the Board of Trustees on June 6, 1997. The first step will be the review of unit action plans to assure a balance of resource allocation as the council works to strengthen programs and address the strategic goals. Reports were given on several Strategic Plan projects, such as the conversion of the university division into an academically oriented, freshman year university college with a mission to prepare students for entry into major programs. Recent steps to accommodate the diversity of student pre-college preparation so that students in the university are better prepared for college-level courses were discussed. The Quality Council, established by the president to address the Strategic Plan theme of process improvement, has begun discussion of CQI models and processes from which to select a WSU initiative. The College of Business and Administration has already undertaken a commitment to CQI and is in a position to assist the university as it begins this process. Training and facilitation requirements will be among the first needs in order to assist units already at work on Strategic Plan objectives. The Business and Fiscal Affairs division has moved quickly to set the pace for CQI, but awareness and project selection has begun in all areas. The new Faculty Senate approved by the Board of Trustees in June of 1997, held its first meeting on September 22. The meeting was primarily organizational and focused on the potential for the Senate to represent the faculty to the President and the Board of Trustees. Committee members congratulated the faculty on the establishment of the Senate and look forward to cooperative and collaborative relationships. 1. Emeritus Requests In accordance with university policy approved by the Board of Trustees, the following faculty members have met the requirements for emeritus status: RESOLUTION 98-10 WHEREAS, faculty members who have served ten or more years as fully-affiliated and full-time members at Wright State University will automatically be granted the emeritus title upon retirement and upon written request by the faculty member to the provost; and WHEREAS, university policy states that the faculty members who have served as fully-affiliated and full-time members of the faculty for five or more years, but less than ten years, may request consideration for emeritus status through the process of a petition to the provost through the faculty member's own administrative unit; and WHEREAS, Peter S. Bracher, professor of English, has served the university since 1964 in a fully-affiliated and full-time status and has requested emeritus status; and WHEREAS, James K. Uphoff, professor of Education, has served the university since 1967 in a fully-affiliated and full-time status and has requested emeritus status; and WHEREAS, Ivan J. Goldfarb, professor of Chemistry, has served the university since 1988 in a fully-affiliated and full-time status, and his request for emeritus status has been endorsed by the chair of the Department of Chemistry and the dean of the College of Science and Mathematics, therefore be it RESOLVED that the requests for emeritus status for the aforementioned faculty members, submitted to this meeting be, and the same hereby are endorsed. Ms. Foster moved for adoption. Ms. Ditmer seconded, and the motion was unanimously approved by voice vote. 2. Posthumous Degree Requests Recommendations to grant posthumous degrees to two Engineering students have been received. The department chair, dean, and provost support the granting of these posthumous degrees. RESOLUTION 98-11 WHEREAS, Wright State University shares with the family and friends in the loss of Thomas Loeffelholz; and WHEREAS, Mr. Loeffelholz was a student in good standing at Wright State University, therefore be it RESOLVED that the Wright State University Board of Trustees hereby approve granting a Bachelor of Science Degree in Mechanical Engineering posthumously to Thomas Loeffelholz. Ms. Foster moved for approval. Ms. Ditmer seconded, and the motion was unanimously ratified by voice vote. RESOLUTION 98-12 WHEREAS, Wright State University shares with the family and friends in the loss of John R. Welch; and WHEREAS, Mr. Welch was a student in good standing at Wright State University, therefore be it RESOLVED that the Wright State University Board of Trustees hereby approve granting a Bachelor of Science Degree in Engineering Physics posthumously to John R. Welch. Ms. Foster moved for approval. Ms. Ditmer seconded, and the motion was unanimously ratified by voice vote. · WSU Grant and Contract Awards The value of grants awarded last fiscal year is the highest in the history of Wright State University WSU ranks third among all universities in the state, behind The Ohio State University and University of Cincinnati, who are categorized as Carnegie research universities. Committee members asked for a breakdown of awards by college in future reports. · Library Tour Victoria A. Montavon, Associate Provost for Libraries and Information Services, led the Academic Affairs Committee on a tour of special displays and client-oriented renovations of the Dunbar Library. B. Advancement Committee Mr. Palmer, chair, reported on the committee meeting of September 3, 1997. The following topics were discussed: Chuck Vella, Edward Howard & Co. Edward Howard & Co. conducted a market study in 1996 to assess Wright State's image among Miami Valley educators, business/civic leaders and alumni to identify the community's needs and develop a public relations plan. As a result of that study, Edward Howard & Co. provided recommendations and strategies to the university which included implementing a central theme and community outreach initiatives. The university asked Edward Howard & Co. to conduct a second and more extensive study in 1997 to gauge progress made to date, reputation assessment, advertising strategies, and update research among key community and business leaders. This study was based on personal and phone interviews. The committee reviewed the recommendations and strategies. Edward Howard & Co. also has been engaged to assist Public Relations in developing an institutional marketing plan to encompass the broad spectrum of university marketing/promotional activities and ensure consistency of institutional positionings. The process and benefits for the plan were outlined. To get the message of academic excellence out to the community, it was suggested that Wright State should consider using 15-30 second TV spots during the 1997-98 basketball season which would highlight the alumni and/or accomplishments of various schools and colleges within the university. · Advancement Committee Mission Statement The committee reviewed its current mission statement. For the past two years, the focus has been primarily on fund raising issues. The committee agreed that the mission statement was still appropriate, and that future concentration will be on advancement of the university from a broader perspective. Grenzebach Glier & Associates (GG&A) are completing the campaign feasibility study. To date, 44 personal and 202 phone interviews have been completed. Consultants from GG&A will present the results of the study to the university Board of Trustees at its retreat on September 20 and to the Foundation Board at its October 9 meeting. After the two boards have reviewed the study, it may be helpful to have the Board of Trustees Advancement Committee meet, discuss the key points and frame recommendations to the president and the boards. The 1996-97 results which exceeded the goal of $3 million by $115,075, with an increase of 300 donors were summarized. The goal for 1997-98 is $4 million, a 30% increase over last year. This goal was based on an assessment of gift potential for the year and an aggressive solicitation strategy, especially for campaign leadership gifts. GG&A will conduct workshops with deans, staff and trustees on how to improve cultivation and solicitation efforts with potential donors and alumni. As a result of discussions at the June 5 meeting, additional data on foundation fund balances and expenditures were provided. The committee briefly discussed enhancing collaboration of the university and foundation relative to fund raising strategies, expenditure procedures and updating the operating agreement between the two entities. Currently, there is no policy on expenditure procedures. It will be placed on the Advancement Committee agenda again for the November 12 meeting. The committee will receive a packet of expenditure information, as well as a copy of the current agreement between the university and the foundation for its review before that meeting. The goal is to frame an updated agreement for review and approval of both boards at the December meetings. C. Building and Grounds Mr. Soin, chair, reported on the committee meeting of September 3, 1997. This project provides for connectivity of all Wright State University facilities, including remote facilities, to the Internet. The project is funded by a line item within the state capital budget. The Phase I project provides for base connectivity (to the wall) for all of Main Campus and remote facilities. The scheduled completion date is January 1998 for the Main Campus buildings and March 1998 for the remote facilities. The total project cost for this phase is $1,181,017. Phase II, with a cost of $1,911,172, was awarded to Gudenkauf Corporation. The base bid, $528,515, includes recabling of Russ Engineering offices and building lab facilities; new cabling and conduit infrastructure for the Forest Lane complex; new cabling for Hamilton Hall; and, common area cable for the Forest Lane complex. Telecommunications reserves will be used to fund Option 1 which is conduit infrastructure to the Campus Service Building (in K Lot area) and network infrastructure within the building. The base bid and Option 3, state line item from the TURNPIKE project, consists of the conduit infrastructure to The Woods, College Park and Village complexes and the network cabling of these facilities. Option 7 is the rerouting of cable that runs through the basement of the Academic Building. Option 7 will be paid for using Academic Building project funds. Work began in August, and it is anticipated that all residence facilities, including the AMS buildings, should be wired and ready for student use by January 1, 1998. Phase III will be included in the capital request for the next biennium. This phase will provide an expansion of the capacity (upgrade of speed levels) of the campus network. The committee reviewed the proposed Buildings and Grounds Committee annual agenda for fiscal year 1998. At the October meeting, the Student Union one-stop shop project will be discussed. This is a technology center that will incorporate services from the Registrar's office, Admissions office, Financial Aid office and the Bursar's office into a one-room location. The Campus Services Building project will be discussed in January. This building will house Public Safety, Printing and Mailing, and Grounds. Also in January an update of the Access Circulation Phases II and III Projects will be presented. The purpose of this project is to upgrade the front of main campus. The university will prepare a capital plan for submission to the state for 1999-2004. The university is currently working under a six-year capital plan for 1997-2002. Funding for 1997-98 has been approved. The draft summary previously distributed to the committee was presented and discussed. This document will be sent to the Ohio Board of Regents by the end of September or mid-October. The third biennium of the plan, 2003-2004, contains a line item for an Interactive Learning Center; a dollar figure has yet to be determined. In concept, this center will be an incubator for using technology in teaching and learning. Currently, a committee is working to define the concept for this center. It was indicated that there are existing buildings on campus that will need future renovations but are not listed on this draft capital submission. The committee advised that in order to include future improvements for other academic facilities during the third biennium, the title, Interactive Learning Center, should be changed to reflect the inclusion of other academic facilities on the capital submission. The status of capital projects was reviewed. Projects discussed are currently in program, planning, design, construction or completion stages. Additional comments made during the discussion are highlighted next to the specific project as follows: Academic Building Access Circulation Phase 1 Access Circulation Phases 2 and 3 Campus Services Building Fawcett Hall Phase IV Fawcett Hall Rehabilitation, Phase III The committee observed a media presentation of the Paul Laurence Dunbar Library circulation desk renovation project, Russ Engineering chiller replacement project, Student Union chiller replacement project, and the new Student Union information desk project. Mr. Jenkins recommended that a commendation be issued to the two carpenters who constructed the information desk for a job well done. The Nutter Center has a critical need for additional storage space. Originally, this space was to be constructed in the side of the hill, however, the bids received exceeded the budget estimate. Another option under consideration is a semi-permanent pole barn to be located in Lot 5A. This issue must be resolved by the end of the calendar year in order to appease the fire marshal. D. Finance and Audit Mr. Diggs, chair, reported on the committee meeting of September 19, 1997. The committee reviewed the draft financial statements. The university had a very positive year, which was attributed to positive revenue and ex- penditure variances, which caused cash and investments to increase and a like increase in the fund balance. Auxiliaries in total were at a break-even point at year end, however, Intercollegiate Athletics showed a deficit which was attributed to recruiting costs and overlap of coaching staff contracts. Establishment of the Platinum Club will help fund this deficit. The committee asked management to present a plan for eliminating the debt for Athletics at the November meeting and a policy for the funding of auxiliary fund deficits. Final printed financial statements with footnotes will be distributed by early November. The committee offered its congratulations to management for a well managed year. Deloitte & Touche is in the process of completing the audit with the last day of field work expected to be September 26. There were no material weaknesses and no reportable conditions. It was recommended that a plan be adopted to identify areas and systems in the colleges and departments where there may be potentially a "year 2000" problem. A contingency plan (business continuity plan) in the event of a system error should be formally adopted which will allow the university to identify current items to be addressed, such as student billings, tuition collection, etc. This plan is currently in the implementation phase. The auditors reported the Ohio Revised Code requires the university to establish an office of contract compliance. All items mentioned in last year's Management Letter and the prior year comments have been satisfactorily addressed. The revised proposed Finance and Audit Committee annual agenda was reviewed by the committee. A financial review of Intercollegiate Athletics will be added to the November agenda. 1. Nutter Center and Athletics Equipment and Sponsorship Agreements The university is requesting bids on new equipment for the Nutter Center and Athletics. The equipment includes new scoreboards for both baseball and the Nutter Center, marquee, sponsorship panels, and a new sound system. The current equipment in the Nutter Center has become outdated and no longer meets the needs of the building. In order to enhance and improve the Nutter Center's ability to maintain the highest level of service to its clients and customers, it is necessary to replace the existing equipment. The contractual sponsorship opportunities connected with the original equipment are expiring. The new state-of-the-art video and sound equipment will facilitate the Nutter Center's ability to improve operations. This project has an estimated cost of $1.8 million and will be financed via major sponsorship sales. Five potential sponsors have been contacted and three will be selected. They are: Wright Patt Credit Union, Pepsi Cola, Coca Cola, Miller Beer and Budweiser. Miller Beer, Pepsi and Wright Patt Credit Union are current sponsors on the Concourse. Each sponsor will commit to $75,000 per year for 10 years which will be sufficient to support the amount of the equipment purchases. The economic life of the new equipment will be 10-12 years. It is believed that Wright State University's Ervin J. Nutter Center will be one of the first NCAA division facilities to have video capability. The new equipment is expected to be installed over the December break. The following resolution was presented to the full Board of Trustees: RESOLUTION 98-13 WHEREAS, the existing scoring and messaging systems currently installed at the Ervin J. Nutter Center have been operational since the building's opening in December 1990 and through the years have become outdated; and WHEREAS, in order to maintain the highest level of service to clients and customers, it is important to enhance and improve these systems; and WHEREAS, the Athletics Department desires a new baseball stadium scoreboard; therefore be it RESOLVED that the university be allowed to enter into contracts for the following equipment at a cost not to exceed $1.8 million contingent upon securing sponsorship dollars equal to or greater than the cost of the equipment. Four-Sided Video Display - Center Hung Four Corner Facial Message/Scoring Displays Illuminated Outdoor Message Panels (Col. Glenn & N. Fairfield Rd.) Illuminated Message Panels at the Box Office Baseball Scoreboard and Sponsorship Panels Route 844 Marquee and Sponsorship Panels Center Hung Sound Reinforcement System RESOLVED that the purchase of the above listed equipment for the purpose of enhancing and improving the Ervin J. Nutter Center's ability to maintain the highest level of service to its clients and customers and the baseball stadium's scoring capability as submitted to this meeting be, and the same hereby is approved. Mr. Diggs moved for approval. Mr. Soin seconded, and the motion was unanimously ratified by roll call vote. 2. Tax Exempt Lease Agreements Last June the Board of Trustees granted the president and treasurer authority to enter into tax exempt lease agreements up to a total of $3 million for a two-year period ending June 30, 1999. In order for management to take advantage of favorable financing rates and expand the university's ability to enter into tax exempt leasing programs in a more expedient manner, the following resolution is submitted for approval. This resolution would expand the ability of the president and treasurer to enter into lease purchase agreements up to a total of $5 million through June 30, 1999, and will enable the university to finance the equipment purchase for the Nutter Center and Athletics. The following resolution was presented to the full Board: RESOLUTION 98-14 RESOLVED that the president and treasurer of Wright State University be, and hereby are, authorized on behalf of the university to enter into one or more Lease Purchase Agreements, or other financing arrangements, for the acquisition of such types of capital equipment as the Office of Financial Services may wish to finance, up to a total of $5 million for the period July 1, 1997, through June 30, 1999, is submitted to this meeting be, and the same hereby is approved. This resolution supersedes Resolution 97-54, dated June 6, 1997. Mr. Diggs moved for approval. Ms. Ditmer seconded, and the motion was unanimously ratified by roll call vote. The following purchases exceeding $250,000 and less than $500,000 that became effective July 1997 were reported. Yankee Book Peddler $ 310,000.00 (Books & Periodicals) Good Samaritan Hospital $ 496,996.51 (House Staff Residents) Baldwin & Whitney Insur. $ 298,000.00 (Casualty Insurance) TIAA $ 480,000.00 (Disability Insurance) Sun Life of Canada $ 475,000.00 (University Provided Term Life and Accidental Death & Dismemberment) Canady & Associates, Inc. $ 371,983.56 (Janitorial) LCI International $ 335,000.00 (24 Telephone Lines) 3. Approval of Contracts $500,000 and Above The following resolution was presented to the Board for approval: RESOLUTION 98-15 WHEREAS, in order for the university to conduct business on a day-to-day basis, and provide products and services in a timely manner, routine purchases must be made; and WHEREAS, occasionally these expenditures exceed $500,000; therefore be it RESOLVED that authorization is granted for the following contracts as submitted to this meeting be, and the same hereby is approved. Vendor Pending $ 2.5 Million (revenue) (Exclusive Beverage Contract) Ameritech $ 500,000.00 (Local Service, 3rd Party 775-3333 Charge backs and Equipment) Postmaster $ 550,000.00 (Bulk Rate Permit 551, Business Reply & Misc. Postage Due) U S Postal Service $ 650,000.00 (First Class Postage by Phone) United Healthcare of Ohio $ 5,400,000.00 (Medical Insurance) United Healthcare of Ohio $ 550,000.00 (Medical Insurance/Health Spring) Mr. Diggs moved for adoption. Mr. Palmer seconded, and the motion was unanimously approved by roll call vote. · Recommendation of Working Capital Investment Managers At its May meeting, the committee recommended that those local institutions already doing business with the university, who did not respond to the original RFP (Request for Proposal) be recontacted to determine their level of interest or flexibility. An RFP was recirculated over the summer and of the original 12 respondents, 11 responses were received. The second RFP incorporated language allowing the university to cancel the contract at any time if all stipulations aren't met. A document listing three entities that management would like to award $5 million each was distributed. The committee suggested that management pursue hiring Karpus and Fifth Third instead of all three recommendations. a. Instructional Subsidy Biennial Budget, FY'98 and '99 - Current year instructional state subsidy compared with budgeted and prior year amounts was discussed. Projections for FY'99 were also reviewed. The university will receive a $2.2 million increase in subsidy this year over the prior year. Subsidy for next year is projected to increase between $900,000 to $1.3 million. b. Biennial Budget - The university's systems are not capable of creating a biennial budget. Ms. Achterman proposed adopting the broad brush parameters of a two-year budget and create the document one year at a time. c. K-12 Funding Impact on Higher Education - Last March the State Supreme Court ruled that K through 12 funding was not legal. The General Assembly was given 12 months to formulate an alternate method of funding. Higher education has been targeted as a source of funding. Originally, there was a state tax increase proposal which would have generated $1.2 billion. This figure is now being considered as the amount of money needed from redistribution of the state's operating budget. The impact on higher education could be catastrophic. Instructional subsidy would have to be cut for all 23 university branch campuses, all 15 community and state community colleges, all 9 technical colleges and 91.6% of the $293.3 million provided to Ohio State's main campus to merely provide half the of $1.2 billion. The administration and other local college and university officials and school superintendents are meeting with legislators to discuss the impact on higher education. Steps are being taken to lobby against the redistribution proposal. E. Student Affairs Ms. Dodie Ditmer, chair, reported on the committee meeting of September 19, 1997. - Student Government will work to develop a better image and a higher profile this year. Letting the student population know "who Student Government is and what Student Government does" will be a top priority. - A newsletter to students from Student Government is under consideration. - Guest speakers will be brought in for the student community. - Saturday, September 20, as part of Welcome Week, a Multicultural Jam will be held in the Multipurpose Room. The event will be free, and student organizations will have promotion tables at the event. - The Student Government meetings may increase from one meeting per week to two. - A state-wide conference/retreat of Ohio universities and their Student Government representatives is in the planning stages. Dan Abrahamowicz reported the focus of the report is recruitment, retention, and servant leadership. XII. UNFINISHED BUSINESS None XIII. NEW BUSINESS The next Board meeting will be December 4 and 5, 1997 Pre-Commencement Breakfast will be 8:30 am, December 6, 1997, Berry Room Commencement will be 10 am, December 6, 1997, Nutter Center Arena XIV. ADJOURNMENT The meeting adjourned at 10:15 am.
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