Minutes

Concord University Board of Governors

September 12, 2006

1:30 p.m.

The Concord Room

201 Marsh Hall

Mr. Ted Rogers, Chairman, called the meeting to order. Members present (in

addition to Mr. Rogers): Dr. Deborah Akers, Mr. Jesse Call, Dr. Darrin Martin, Mr. James Miller, Ms. Amy Pitzer, Ms. Margaret Sayre. Members absent: Mr. James Brown, Mr. Eugene Fife, Mr. J. Franklin Long, Mr. Wayne Meisel. (Mr. Meisel was able to attend for a brief time by phone but the connection was lost.) Others attending: Father Tom Acker, Mr. Bill Baker, Dr. Jerry Beasley, Mr. Ed Burdette, Dr. Hugh Campbell, Mr. James Cannon, Mr. Michael Curry, Ms. Sharon Manzo, Ms. Anita Moody, Dr. Bill O’Brien, Dr. Steve Rowe, Mr. Chris Slater, Dr. Jane Smith, Dr. John David Smith, Ms. Loretta Young

1. Report on the Beckley Facility – (Attachments 1a,1b,1c) Father Tom Acker reported on the status of the Beckley facility, which will bring eight public colleges and universities together in one place. Concord, Bluefield State College, New River Community College and Marshall will offer the majority of the courses. New River would occupy the building until approximately 3:00 p.m. Concord could use the building beginning at 4:30 p.m. This may reduce Concord’s Beckley locations from five to two or three. Five years in the planning, one building is scheduled to open Fall 2007. A non-profit, public corporation owns 33 acres on which the campus will be built. The goal is to increase the number of college-going students and eventually erect four additional buildings. Annual operational cost will be approximately $250,000. Three-hundred thousand dollars have been secured $150,000 will be used for each of the first two years; additional operational costs will be split among the eight institutions using the facility. The library will be via internet with a limited number of reference materials. There will be no bookstore initially; the eight college presidents will need to decide on this. The facility will be totally internet interactive, and classrooms will be assigned based on the needs of each course being offered. There is no security scheduled between the hours of 4:30 p.m. – 10:00 p.m., but perhaps students studying law enforcement can serve as security personnel. Emulating Berea College, we could utilize student workers as much as possible.

2. Report on Camp Brookside Feasibility Study– Mr. Ed Burdette reported on Camp Brookside, a 32-acre tract in Hinton, WV, which was formerly a camp for the children of Elkem Metals employees. Included are nine-bunk buildings, a common shower/bath facility, dining hall/meeting room. Work is ongoing with the National Park Service and Concord University, neither of which wants the project to be a drain on their budgets. The attempt is to develop a freestanding program with its own governing body. Concord faculty have been surveyed, some indicated they would be interested in holding classes or presenting programs there. Other surveys regarding possible uses of the facility are being distributed. In order for the project to go forward, there must be a core activity, something that generates an income and contributes to education and the National Park Service mission. Every entity from which the Park Service has received comments has mentioned water quality issues. There are numerous grants relative to water quality and water shed conservation. Dr. Beasley mentioned that under the leadership of Dr. Roy Ramthun, students have looked at competing facilities in the region and it could create a significant number of summer jobs for students. Dr. Beasley also reported that several faculty have created an informal “think tank” relative to water quality.

3. Call to Order and Approval of Minutes –A quorum being present, Mr. Rogers called the meeting to order. Ms. Pitzer moved for the approval of the minutes of the June 14, 2006, meeting. Mr. Call seconded, motion carried.

4. Administrative Reports -

Academic Affairs – (Attachment 4a) Dr. Turner focused on the addition of 10 new faculty members, the Fine Arts theatre lighting project, the awarding of tenure to some faculty and sabbaticals to others. The NCATE rejoinder was submitted this summer. We should have a response in October. Concord’s re-filing report “passed muster” with the West Virginia Department of Education. North Central Association reaccreditation is coming up Spring 2008. Dr. Jane Smith, Associate Academic Dean, distributed a list of the five criteria committees and noted there is a place on each for a member of the Board. She said she is developing a self-study survey, which will allow us to applaud what we do well and make improvements where necessary. She is planning a mock visit next fall, all documents are to be submitted by February 2008; the visit will occur March 2008. Dr. Turner distributed an assessment document prepared by Dr. Danette Light. It addresses Concord’s education goals and how they are assessed. Nationally normed items are noted.

Admissions and Financial Aid – (Attachment 4b) Mr. Curry reported updated enrollment figures. Currently registered students: 2805, including 631 freshmen, 136 transfer students, but numbers for dual enrollment students are yet to be determined. All recruiting areas are up except the primary eight-county region, which is mainly a result of the decline in the Beckley area. The strategy for the coming year is to “address our base”- 17 SAT preps have been scheduled, 14 in the base area. Summer Academy was a success with 50+ students; the academy “paid for itself.” Concord has begun a home-

school outreach program, which is enjoying start-up success. Asked how we measure the success of SAT prep programs, Mr. Curry said track rates are recorded on all activities and SAT prep ranks second. Dr. Beasley stated he is preparing an analysis on all first contacts and SAT prep will be included. The question was asked about the trends in on-line courses. Mr. Curry said one course is “being piped to Beckley and we hope to add more.” He added the competition in the Beckley market has gone aggressively on line.

Beckley Center – (Attachment 4c) Dr. O’Brien echoed Mr. Curry’s concern regarding the decline in enrollment in Beckley and added that how we approach the opportunities in the new Beckley facility will determine how successful we will be in Beckley. Dr. Beasley said Chancellor Noland is interested in assuring that Concord has a significant presence in the new Beckley facility. Dr. Noland believes, if called upon to do so, Concord can manage the facility and hiring personnel will not be necessary. Dr. Beasley reported that the Raleigh County Commission, as well as Bill Baker, is devoted to a strong Concord presence in the facility. The question was asked if Concord is offering on-line courses in Beckley; no, we are not. It was then asked if we have the technology to do so. Mr. Curry said we do but technology is currently used for graduate courses.

Development Office – (Attachments 4d,4e,4eB) Ms. Young reported the Foundation Office audit is nearing completion and she is anticipating it will be “clean.” A result of the audit is the need to formalize agreements with entities for which funds are held by the Foundation. Historically, these have been “nod and hand shake agreements” but formal, solid agreements will be implemented. Current assets exceed $22,000,000 and this past year we received $3.9 million in contributions. Foundation data are being transferred to the Blackbaud software program. Three goals of the Foundation for 2007: improve communications between the University’s administration and the Foundation leadership; employ a high-level accountant; and increase response to direct mail pieces. The University’s Neighborhood Investment Program (NIP) was approved and eligible donors are businesses and/or individuals who pay West Virginia taxes. The annual Charleston fund raising dinner is October 10; Michael Morris, CEO of AEP, will be the guest speaker. A fund raiser for the Roanoke, VA area will be held March 7, 2007; Coach Frank Beamer will speak. The Interfaith Chapel is the primary goal. Dr. Beasley mentioned we have $2.5 million on hand, the architects say it is a $3,000,000 project, so we have $500,000 to go. He said he has a time line for the project to share with the Board.

Finance and Facilities – (Attachment 4f) Mr. Cannon said he has been working with John Spencer in the Computer Center for accurate numbers in enrollment and it appears we will be down approximately 100 FTE, a 3.6 percent drop in enrollment, which will affect our operation budget by about $335,000. Out-of-state, new freshmen are up 47 students, a 38 percent increase; transfers are up 18, a 600 percent increase; total for the out-of-state

Program - 65, a 52 percent increase. Had we not developed the new out-of-state tuition remission program, we would have taken a 5.9 percent drop in enrollment.

Parking the first two weeks of the semester has been the most difficult we have ever experienced but we are making progress with the completion of the football field and by next year we will have new parking areas. The bookstore has been losing money over the past three years, but we are now turning things around. The campus community needs to work together to support the bookstore to “keep it afloat.” Chris Smallwood, new director, is seeking ways to support faculty and students to create a win-win situation. The question was asked as to why the stadium lighting and football field replacement were taking longer than anticipated. Mr. Cannon said weather and the fact that the lighting poles were not received on schedule. Ms. Pitzer asked if the plans to replace College Courts have been abandoned. Mr. Cannon said we intend to maintain enough property on which Courts stood to erect garden-style apartments. Dr. Campbell asked with the addition of 200 parking spaces would parking at Witherspoon field be eradicated. Mr. Cannon said it would.

Student Affairs – (Attachment 4g) Dr. John David Smith reported there is a reduction in international students and an increase in students needing disability services. Fall housing number is 1010, technology improvements continue in the residence halls, security cameras have been added to several entrance/exits in the halls, asbestos has been removed from the courts that will remain, and demolition of the others continues. We are increasing educational programming in the residence halls. Career services is focusing on working with students earlier in their academic career. Students have been surveyed regarding the type of programming they would prefer, approximately 800 surveys have been returned. There was a large drop in parent participation in freshman orientation, we will try to revamp this and increase faculty/staff participation as well. Student Government Association is overcoming some issues and Student Affairs is assisting with these. A committee to enhance health and wellness of faculty, staff, and students has been formed, and we have submitted a grant relative to this. We are making significant progress on ADA compliance, but there are three problem areas: the restroom in Carter Hall, the walkway from Towers to the main campus, and the lift in the Student Center. We have begun a parents’ club, and we have created two certificate programs: civic engagement and childcare-foster/adoptive.

5. Action Items

a. Policy on Faculty Termination Due to Reduction or Discontinuance of an Existing Program (Attachment 5a)

Mr. Call moved the adoption of the following resolution:

RESOLVED, that the Concord University Board of Governors adopt the proposed policy: Approval of Faculty Termination Due to Reduction or Discontinuation of an Existing Program.

Ms. Sayre seconded. Motion carried.

2. Approval for the University to seek Requests For Proposal (RFP) for performance contracting services (Attachment 5b)

Mr. Cannon stated this is more of an information item than an action item and technically it did not need board approval but he would like a resolution at the conclusion of the discussion. Concord has an opportunity to generate utility savings in the $300,000 to $500,000 range. A tremendous capital investment would be necessary to replace boilers and heaters. The performance-contracting model allows institutions to secure firms to make studies to detail savings we could expect by implementing their plans. The company finances the cost of all the change outs. The institution pays them from the savings. Concord has had a preliminary study done but a detailed study needs to be conducted, at a cost of approximately $50,000 to $70,000 in the event the firm does not win the contract. We will negotiate with several companies.

Ms. Sayre moved the adoption of the following resolution:

RESOLVED, that Concord University Board of Governors approves the issuance of RFPs for performance contracting services that will design, implement, and finance a package of self-funding utility saving measures.

No one seconded, discussion followed. Ms. Pitzer asked if we would pay for detailed studies by all companies or only one. Mr. Cannon said only one. Ms. Pitzer said she did not see this as a long-term solution to the problem and requested cost of replacement of heating equipment. Mr. Cannon said the old equipment is costing daily in energy costs and he hates to see the issue die because it is a major opportunity at no cost on assessment up front. Dr. Campbell asked for other options. Mr. Cannon said we can continue as we are because we don’t have funds to replace the equipment. Dr. Beasley said we still have the option of looking at floating municipal bonds or including this in a state bond issue, and we can still compare the cost of this option to the cost one of the RFP companies would charge, we are not closing off this option. Mr. Cannon stated, in his opinion, the RFP is the best option.

Dr. Akers seconded. Motion carried Ms. Pitzer stated she was unsure of parliamentary procedure but she requested that we consider Dr. Beasley’s idea regarding bond issues as an option. Dr. Beasley stated we will continue to look at financial options. Ms. Pitzer

also requested that this issue return to the board before any final action is taken. Dr. Beasley said this will be done.

3. Approval of an internal loan of $614,800 to resurface the Concord University Football Field with artificial turf (Attachment 5c)

Dr. Akers moved the adoption of the following resolution:

RESOLVED, the Concord University Board of Governors approves the internal loan of $614,800 for resurfacing the Callahan Stadium Football Field.

Ms. Sayre seconded, motion carried with one abstention.

Discussion – Mr. Cannon referred to the minutes of the June 14, 2006, meeting when the Board approved the financing of the resurfacing of the football field by whichever manner we could. We would like to do this internally so that, rather than paying interest to a bank, we will earn the interest. We financed it in this manner, Coach Quick has implemented it, and the June Shott Foundation will pay $150,000 beginning this December and for the next four consecutive Decembers. Ms. Pitzer said she recalls that the Board approved Mr. Cannon to talk to the leadership of the Foundation about arranging appropriate funding. Mr. Cannon asked for a reading from the minutes. Ms. Pitzer quoted action item 3.c, page 2, “Mr. Cannon agreed to work with leadership of the Concord Foundation to arrange appropriate funding.” He said they talked with the Foundation, but they were not able to get it worked out in the timeframe needed. Dr. Beasley said we did move forward with the assumption the Board had given approval to go ahead. Actually, we will end up saving because the Foundation would charge approximately $50,000 - $60,000 in interest. Mr. Curry asked if it is appropriate to draw interest on money we are loaning ourselves. Mr. Cannon said in essence we are charging five or ten percent in interest but the amount of money we get back will be $150,000 more than what it costs. Ms. Pitzer said she is uncomfortable with the way we are doing business. She asked for the actual amount of the cost of the field, $700,000, as recorded in the minutes of June 14, or $750,000, as Mr. Cannon reported earlier, or $614,800 requested in the resolution. Mr. Cannon said he stood corrected; the amount committed by Mrs. Shott is $700,000. He also said, in the absence of board meetings, this request was shared with the Board Chair and President Beasley. Mr. Call said he was under the impression the gift had already been received in full and all we had to raise was the $16,000. Mr. Cannon said that was his impression at the time as well but he later realized the gift will come over a period of years. Ms. Pitzer asked if there is a legal agreement with Mrs. Shott, so we know we will receive the full amount. Dr. Beasley said a number of people have worked with Mrs. Shott and her attorney, and he believes this to be a rare commitment, and he is confident that our interests are protected should she predecease the commitment; we do have a signed document. He added this is a savings since self financing typically saves money. Mr. Call said he was upset because this was not re-presented to the Board, and it seems we don’t have the money and we don’t know where it is coming from. Dr. Beasley said we do know where the money is coming from. Mr. Call asked if we are still missing the $16,000. Mr. Cannon responded that because we are financing this ourselves the $16,000 won’t be an issue. Ms. Pitzer asked if the lighting project is included. Mr. Cannon stated it is separate. Ms. Pitzer asked if we have the funding for it. Mr. Cannon said we do. Ms. Pitzer asked where this money came from. Dr. Beasley said it was through contributions, including a $250,000 gift from an anonymous donor. Ms. Pitzer said she does not like the Board being approached and asked for forgiveness rather than approval, and, with all due respect to the Chair and the President, these things need to be voted on by the full board and the chair should not be called and asked for approval. Ms. Sayre asked for clarification of Mrs. Shott’s commitment. Ms. Young stated Mrs. Shott will make a $150,000 payment each December for four consecutive years; her final payment will be $100,000 for a total of $700,000.

d. Approval of the Library Expansion Project (Attachments 5d,5e,5f)

Ms. Pitzer moved the following resolution:

RESOLVED, the Concord University Board of Governors approves the University Library expansion designed to accommodate 25 years of growth in the library’s traditional monographic collection and a doubling of the electronic database.

Mr. Call seconded. Motion carried

Discussion – This is a future project continuing through 2011- 2012 and will be funded by donations. Expansion should be able to keep technology up to date to serve our expanding graduate program and insure the library functions as the campus nerve center. Climate control will be installed in the entire library. Dr. Akers questioned the addition of staff and the associated cost. Dr. Rowe said there will be no additions to the staff; some current staff members are seeking graduate degrees and will be certified librarians. Dr. Beasley stated we are basically seeking funding for capital construction and this will not happen without significant earmarks either in Washington or Charleston. Students have committed $50,000 from fees and this can be used as leverage with these two groups. Mr. Call stated the SGA wholeheartedly supports the project. Dr. Beasley added that Faculty Senate, Classified Staff Council, and Student Senate have also endorsed the project. The possibility of collaboration with Mercer County Schools was suggested.

Dr. Rowe revealed a portrait of Dr. Meredith Freeman, painted by Mr. Fernando Porros, Instructor in Art. This will be hung in the Marsh Library.

e. Commitment of Funds for Capital Projects (Attachment 5g)

Mr. Call moved the approval of the following resolution:

RESOLVED, that the Concord University Board of Governors approve the commitment of funds for Capital Projects for FY 2007.

Dr. Akers seconded. Motion carried.

Discussion – Mr. Cannon stated this is not a request for approval of spending funds, merely a matter of recording funds in the financial statement for auditing purposes. Under a new format in financial statement auditing, footnotes must be used to segregate projects so the reader will understand where money has been committed. Auditors will not accept footnotes without Board approval. This is a matter of clarity of the financial statement. Dr. Akers asked if all ADA designated projects are complete. Mr. Cannon said the projects are finished or will be within the timeframe designated in the University’s OCR report. Ms. Young said she thought the Board had voted to put $500,000 into the University Point fund. Mr. Cannon said it had but these monies have been spent down as items have been paid for. Dr. Beasley said funds were spent on moving the road and bringing IKM (architects) to campus.

6. President’s Report (Attachment 6)

Mr. Rogers, needing to leave to attend another meeting, designated Ms. Sayre as interim chair.

Dr. Beasley began by reminding the Board that Mr. Call had requested at the June 14, 2006, meeting that we identify ways to minimize increases in tuition. He said all of us are working on this, and he has asked Dr. John David Smith to pursue it. Dr. Smith said he and Mr. Call have been working together. They are discussing the budget with Mr. Cannon; they are looking at the way scholarships are awarded; and are considering working with the legislators to advocate for more money, and more funded research on the part of the faculty. Dr. Beasley said we will present a progress report at each Board meeting. This will culminate in a budget recommendation that will come before the Board for approval. This issue focuses our attention throughout the state on influencing the legislature to support higher education more generously. Dr. Beasley thanked the Board for its patience over the past several months. He identified the chain of command acting in his absence as Dr. Turner followed by Mr. Cannon. He thanked the two for what they did during his absence this summer. Dr. Beasley said he is not preparing his typical annual report, which normally is used by the Board for his evaluation. He said he does not believe he is deserving of a salary increase this year principally because of the institution’s inability to do as well as he thinks Concord should in our NCATE accreditation. Rather than the typical list of institutional accomplishments over the past year, he has tried to identify long-range trends. He addressed student achievement issues, especially compared to national peer groups. He mentioned long-range enrollment trends, what we’ve done to build enrollment and to attract quality students, and how state policy affects institutions like Concord. Other long-range trends include voluntary giving, change in number of student athletes and graduation rate of student athletes, growth in income and expenditures in the research corporation; Concord’s ranking in the WV Intercollegiate athletic conference; the extent to which decisions once made on campus are now made off campus or are influenced by groups off campus. (AFT is an example.) With regard to AFT, faculty indicate they join principally to have legal assistance should they be sued. Dr. Beasley said that a faculty member’s legal costs are covered by the institution’s insurance if they are sued in the line of duty. Another reason faculty and staff join is because they believe higher education has not had a voice in Charleston in the past and perhaps AFT will be able to provide that voice. With regard to the Carol Manzione case, we have been told we will have mandatory mediation with Dr. Manzione but he recommended that the Board not settle the case. He said we are in a different world; we are to be accountable for what students know when they graduate while concomitantly within the institution are being subjected to a new type of scrutiny. With every decision we make, we need to consider how six people, drawn randomly from a pool in Mercer County for a jury, look at the situation. The ownership of the institution has shifted from Charleston to the Board, and individuals bring many of the same values to decisions that a local jury would. Ms. Pitzer noted that there is a statewide study group formed by the Governor to look at the grievance procedure and said there is a lack of understanding at the state level of the grievance procedure process. Senator Bowman is heading the committee and all unions are attending.

7. Other Matters

Mr. Call asked the Board to consider a report he distributed entitled, “Measuring up 2006 The State Report Card on Higher Education.” He expressed his disappointment in West Virginia’s performance, especially in the area of affordability. Dr. Campbell said he would like to know the source of the figures because some of the data seem extremely high.

8. Adjournment

There being no further business, the meeting adjourned at 4:00 p.m. The next meeting of the Board will be on campus, October 24, 2006 beginning at 1:30 p.m.

Respectfully submitted,

________________________________

R. T. “Ted” Rogers, Chair

________________________________

Margaret Sayre, Secretary

sm