Minutes of the
NIU BOARD OF TRUSTEES
FINANCE, FACILITIES AND OPERATIONS COMMITTEE

September 15, 1997

CALL TO ORDER AND ROLL CALL 
The meeting was called to order by Chair David Raymond at 10:15 a.m. in the Clara Sperling Sky Room of Holmes Student Center at Northern Illinois University. Recording Secretary Sharon Mimms conducted a roll call of Trustees. Members present were Trustees Susan Grans, George Moser, Myron Siegel and Chair Raymond. Also present were Committee Liaison Eddie Williams, President John La Tourette and Board Parliamentarian Kenneth Davidson. Having noted the presence of a quorum, the meeting proceeded. 

VERIFICATION OF APPROPRIATE NOTICE OF PUBLIC MEETING 
Confirmation of Open Meetings Act notification compliance was given by Board Parliamentarian Ken Davidson. 

EXECUTIVE SESSION RECESS 
Chair Raymond asked for a motion to close the public meeting to conduct an Executive Session to discuss property matters as generally described under §2(c)(5) and §2(c)(6) of the Open Meetings Act. Trustee Moser made the motion, seconded by Trustee Grans. A roll call vote of the Trustees to recess to Executive Session was unanimous. 

FINANCE, FACILITIES AND OPERATIONS COMMITTEE RECONVENED 
The meeting was reconvened at approximately 10:45 a.m. with all Committee members present. 

MEETING AGENDA APPROVAL 
hair Raymond stated that the Legislative Report would follow the Chair's Comments on the agenda and asked for a motion to approve the agenda. Trustee Grans made a motion to approve the agenda as amended and was seconded by Trustee Moser. The motion was approved. 

REVIEW AND APPROVAL OF MINUTES 
A motion was made by Trustee Moser and seconded by Trustee Grans to approve the minutes of June 12, 1997. The motion was approved. 

CHAIR’S COMMENTS 
Chair Raymond welcomed everyone to the first meeting of the Finance, Facilities and Operations Committee for the 1997-98 Academic Year. He welcomed Trustee Myron Siegel as a new committee member, along with the continuing Committee members, Trustees Susan Grans and George Moser. Student Trustee-Designate Steven Kovacs was recognized, as were President John La Tourette and University Advisory Committee Representatives Charles Larson and Andy Small, the new Operating Staff Council President. Dr. Larson stated that UAC Representative Jim Russell would move to the Legislation, Audit and External Affairs Committee.  Chair Raymond also introduced Kathe Shinham who was recently appointed Associate Vice President for Finance and Facilities. He read a brief history on Ms. Shinham who will be working with the Senior Vice President of Finance, Dr. Eddie Williams, on significant internal and external financial matters, and will serve as an ongoing resource person for the Finance, Facilities and Operations Committee. Ms. Shinham came to NIU from the University of Kansas where she served as comptroller. While there, she streamlined the student fee payment service process, implemented the PeopleSoft human resource and payroll system, and negotiated a 2.0% increase in the indirect cost rate for research grants, while many other universities were experiencing decreases. She also functioned as the university's key contact with the state's bonding authority and bond counsel for issuing revenue bonds. Prior to her tenure at the University of Kansas, she was associate controller at the University of Maryland from 1982 to 1992 and audit manager at Peat-Marwick in Chicago from 1976 to 1982. She is a graduate of Mount Holyoke College, has a master's degree from the Kellogg Graduate School of Management at Northwestern University, and is a CPA.  

Chair Raymond also recognized the exceptional contributions of Ellen Andersen, Director, Centennial and Special Events; Michael Coakley, Director, Housing and Dining Service; Bill Finucane, Manager, Transportation; and Bob Burk, Director, Admissions, for the planning and execution of Student Welcome Days, which were particularly successful this year. The Chair said he had heard a lot of positive feedback about it and congratulated them. 

A new academic year provides the university with an opportunity for renewal of its commitment to education, Chair Raymond said, and enrichment of the lives of the students. Many challenges will be encountered as we strive to meet that commitment by enhancing our campus through improved programs, facilities, operations and services. And I expect the Finance, Facilities and Operations Committee to play a key role in those endeavors, Raymond said, as we consider a broad spectrum of issues throughout the coming year.  

Agenda Item 8 – Legislative Report
Legislative Committee Liaison Kathy Swanson gave a brief report on legislation that would or could affect the university. One issue she thought would probably receive a great deal of legislative attention in veto session was the ruling by a Cook County Circuit Court judge in May, effective December 15, which would prohibit any further spending by the tollway unless directly appropriated by the General Assembly. Currently toll highway revenues are collected and spent by the toll highway authority and are not subject to appropriation in Springfield. After the Governor's legal counsel and the Governor's staff studied this over the summer, they asked the University of Illinois, Northern Illinois University and Southern Illinois University, along with several other state agencies, which included the Illinois Housing Development Authority and Illinois Development Finance Authority, to file Amicus Briefs before the Supreme Court in support of the concept of the ability of an independent authority or state agency to have independent funds expended on its behalf without going through the legislative appropriations process. Northern Illinois University receives a good deal of directly appropriated funds from Springfield. NIU also has student fees and other revenues that finance and support the bonds for some of our nonacademic buildings across campus. The Governor's Office was concerned that the Supreme Court, in their consideration of the issue this Fall, would render a sweeping opinion that might be persuaded to bring the universities under decisions they might make on the tollway appropriations issues, if these issues were not carefully distinguished for them. 

Ms. Swanson was told that legislation will be filed by at least one caucus this Fall that will require the tollway authority director and the board chair to appear before the General Assembly appropriations committees twice annually. It would not, however, subject their budget to appropriations authority. They would simply appear before the committees and explain the budget and their decision-making process. 

UNIVERSITY RECOMMENDATIONS 

Agenda Item 6.a.(1) – FY98 Internal Budget 
Dr. Williams introduced the FY98 Internal Budget. He explained that the item in Table 2 on page 10 identified as Enrollment Management was a carryover from the old system when the income fund was appropriated to the universities. It is simply an accounting adjustment to the originally appropriated authority that takes the estimated income fund down to anticipated levels. Dr. Williams then asked the Committee to endorse the FY98 Internal Budget for approval by the full Board. Chair Raymond clarified that NIU's enrollment had increased over last year and the downward adjustment was in projected enrollment figures, not the actual figures. Chair Raymond then asked for a motion to approve the FY98 Internal Budget. Trustee Siegel moved for approval, seconded by Trustee Moser. The motion was approved. 

Agenda Item 6.a.(2) – FY99 Budget Guidelines 
Dr. Williams stated that each fiscal year the university prepares a budget for Board of Trustees review. These recommendations are then sent to the Board of Higher Education for their review and inclusion in their recommendations to the Governor and the State legislature. There was substantial change in the recommended guidelines for Fiscal Year 1997 as they went through this IBHE and legislative process. 

The recommended guidelines for FY99 include a 5.5% average salary increase recommendation. This amount was identified through a comparative analysis of NIU salaries with competitive institutions in the marketplace. Though we have been successful in efforts to upgrade salaries to make them more competitive, Dr. Williams said, there is still the problem of addressing the cost of living. It was found that the cost of living in the DeKalb area is one of the highest in the state of Illinois, which creates a problem in providing a real salary increase that would be competitive around the state and in the region. Therefore the recommendation of a 5.5% increase takes both of these factors into consideration. The other recommendations were a 3% general price increase which includes essentially everything except personal services and library and technology; a 10% increase for library and technology; $330,000 for Medicare, a federal mandate; $547,700 for the sick leave increase, a state mandate; $4.47 million in program improvements; and approximately $3 million for a new human resource system. The allocation for the new human resource system would provide the funding necessary to purchase, install and operate the new system. It would also provide additional support for the university financial system and assist in the costs necessary to become Year 2000 compliant. With these recommendations, Dr. Williams requested Committee approval and support. 

In answer to a question from Trustee Moser on how the university could deal with less than a fourth of the funds requested last year for deferred maintenance, Dr. Williams said that deferred maintenance is a continuing problem. Repairs might be made to a number of roofs and elevators and some major items, Dr. Williams said, but no real advancements can be made in deferred maintenance with such low appropriations. He informed the Board that the total deferred maintenance for the NIU campus is around $45 million. When asked if the university would receive approximately the same ratio this year, Dr. Williams said the university is hopeful the State will recognize the fact that the universities cannot possibly meet their deferred maintenance problems at those funding levels and start doing something on a major level. The President has tried to sensitize both the IBHE and the legislature to the fact that the university's maintenance needs are almost at a crisis stage, Williams said. 

Trustee Siegel mentioned that Connecticut and several other states had passed sizable bond referendums for deferred maintenance. He thought that because deferred maintenance is so much in the news, the issue might become more prominent for the Illinois legislature and the Governor. Trustee Grans said you can do temporary repairs on a roof only so long before the entire building starts to suffer and thought the Trustees should back President La Tourette as much as possible in his lobbying efforts at the legislature. Dr. Williams said, putting this in a national perspective, there was a recent survey done by the American Association of State Colleges and Universities (AASCU) which found that on the average, for those institutions participating in the survey, the ratio between the deferred maintenance and the operating budgets was about 14%. That is, on the average, about 14% of the operating budget was represented in deferred maintenance. The $45 million of deferred maintenance needed at NIU is about 31% of the $140 million operating budget. So Illinois is much farther behind universities in other states. 

On another budget item, Trustee Siegel said the 5.5% recommendation for salary increases was very important and hoped to get it through the IBHE this year. He also complimented Dr. Williams saying that the Trustees appreciated the changes in format and explanations implemented throughout the last year. Chair Raymond then asked for a motion to endorse the FY99 Budget Guidelines. Trustee Moser so moved, seconded by Trustee Grans. The motion was approved. 

Agenda Item 6.b.(1)(a) – Computer Services 
Agenda Item 6.b.(1)(b) – Miscellaneous Commodities 
These two items are open contracts for the purchase of computer supplies, and miscellaneous commodities and parts and services. These are open orders to provide the necessary stock and materials for the university's computer and physical plant areas. Dr. Williams asked Committee concurrence on both of these items. Chair Raymond asked for a motion to approve the requests. Trustee Siegel made the motion, seconded by Trustee Moser. The motion was approved.  
  
Agenda Item 6.b.(2) – Real Estate Transaction 
Dr. Williams reported to the Committee that all transactions for the purchase of the Greek-Neal property located on Annie Glidden Road had been completed, allowing the Board of Trustees to now hold title to that property. Dr. Williams reported that negotiations were continuing on the Dare Cloud property. It was anticipated that this property transaction would also be closed and titled in the Board's name in the near future. 

Agenda Item 6.c. – Undergraduate Tuition Increase Plan
Dr. La Tourette gave remarks about the plan being proposed to the Committee for endorsement entitled "Affordability and Student Choice About Time-to-Degree." President La Tourette asked that his remarks be included fully in the minutes so they could be recorded and kept for future reference. 

No single issue in higher education has captured more attention in recent years than affordability. Everywhere we turn -- in every newspaper and magazine, on every broadcast news report, at every professional conference, in every meeting with students and parents -- the subject of college costs frames the context of our discussions. This Committee is charged with developing and monitoring the systems by which we finance the operations of this university, and it has no greater responsibility than that of monitoring cost and researching every option for keeping education at NIU as affordable as possible. Therefore, in keeping with this Board's clear direction to seek out innovative approaches to cost control, I ask this Committee to endorse the following concept and to recommend its approval to the full Board later this month: 

Insofar as the greatest influence over the cost of an undergraduate degree from Northern is the amount of time spent in the pursuit of that degree, we are recommending that the Board support a comprehensive educational campaign aimed at students and parents to encourage students to take 15 or more credit hours per semester in order to graduate in four years. This campaign will be supported internally with the establishment of a new office that will direct students to the wide variety of advising, counseling and career planning services already available on campus. The campaign, in conjunction with the new Office of Advising Information and Referral Services, will help students identify the kinds of services they need, and will connect them with these services at the time when such assistance will do them the most good. The overarching goal is to help students make informed choices. 

Approximately 48 percent of our students at the undergraduate level are taking 15 or more credit hours per semester, which permits them to graduate in four years. The campaign is not directed so much to these students currently taking 15 hours or 15 and 16 hours, but directed to the 40 percent of our students who are currently taking 12, 13 or 14 hours per semester. We believe that one of the problems is that the financial aid guidelines that have been in effect for a number of years by the federal government, which classify 12 hours as "full-time" may lead many students and parents to believe that such a class load will result in graduation at the end of four years. That is not the case. 

As this chart indicates, this is a misconception. Moreover, it can be a very costly misunderstanding: With the average NIU graduate leaving the university with $26,000 or more in terms of his first year or her first year out of school, a fifth year spent in pursuit of a baccalaureate degree carries a very high cost in forgone earnings. Added to the approximately $10,800 annual cost of an extra year at NIU — that is, for full-time tuition, fees, room and board, books and living expenses — the total cost of that fifth year can easily approach, and in some cases, exceed, $40,000. In effect, when you take in the foregone earnings, the fifth year almost equals the total of the previous four years. If you multiply four years at $10,800, you come to $43,200. So that fifth year, when you take into account the cost of $10,800, plus the foregone earnings of $26,000, you're pretty much up to in that fifth years, the total cost of the previous four years. And of course, for some students, going out in particular fields at $40,000 and above, that opportunity cost is even larger for the fifth year. Now we recognize, on the other hand, that financial limitations, family demands or other personal circumstances sometimes prohibit students from taking 15 or more hours per semester, the challenge is to ensure that students and parents do not incur such costs due to a lack of information or inadequate planning of the undergraduate program on the part of the student. 

We bring this concept before the Committee at this time because we are requesting you to adopt a tuition rate schedule for next year which includes a financial incentive for taking additional hours. As you can see, we are proposing a schedule in which the cost for each additional credit hour actually decreases from 1 credit hour to 16, and where there is no charge for additional credits beyond 16 hours. That means for a student currently taking and taking 15 hours, this year per semester and next year, the average increase in tuition will be 1.6 percent. For the student taking 16 or more hours, the average tuition charge will actually decrease by 0.4 percent. Given current enrollment patterns, the average tuition increase for all students next year would be approximately three percent with this incentive plan. It is clear that this kind of schedule does provide an incentive for students to take additional hours if possible. 

And I might comment here about students who do take more than four hours. They in many cases do have compelling reasons to do so. But by endorsing the education program we propose, we can close the gap between those who consciously make such a choice and those who require a fifth year due to a lack of information or due to inadequate planning. Some of our students do make a conscious choice to extend their undergraduate education. For example, as a result of our campaign, a student might examine the trade-off of a fifth year completion schedule while working part-time. If a student, for example, could earn $5,000 a year, the opportunity cost of the fifth year, which we have estimated at $40,000, would be reduced to about $15,000. That is, $5,000 earned over five years would generate $25,000 to compare to that fourth year cost of $40,000. So that student would really have an opportunity cost around $15,000. Moreover, some students might weigh considerations about the amount of debt they want to have when they leave the university, and must factor these part-time earnings into their personal equations. 

In any case, the goal we must pursue is that of informed choice for all of our students and parents. Even with the additional information and counseling that we'll provide through this campaign, some students will choose to extend their undergraduate programs. When that is an informed choice, we will have accomplished our goal. For those who choose to finish in four years will benefit both from the additional assistance provided to meet that goal, and from the financial incentive offered in this tuition plan. I urge this Committee to send our recommendations to the full Board with strong endorsement and a clear charge to proceed with planning for a campaign to give our consumers the information and assistance they need to make the best possible choices. 

President La Tourette deferred the second part of the recommendation for further articulation of the recommendation for tuition increases beyond the first year of what will be a total four-year plan to address some questions raised by Board members. Dr. La Tourette asked the Committee to endorse the incentive plan and the campaign to have students and parents have the opportunity to make more informed choices about the length of time students will spend at NIU at the costs associated with decisions that involve four years versus five years or a more extended graduate program. 

Chair Raymond complimented President La Tourette and his staff for developing this innovative approach to the tuition affordability issue. He said this kind of graduated or sliding-scale tuition rate schedule was a very thoughtful and carefully considered approach to address the affordability issue, and gave a strong endorsement to going ahead with the plan. Trustee Grans said that there should be an awareness campaign to go along with this recommendation so that both high school counselors and college personnel can fully explain the plan to students, parents, etc.  

Chair Raymond said he wanted to do these action items separately. First, he asked for a motion on the proposal for Fiscal Year 1999 Tuition Plan, which would include the new sliding-scale tuition plan, plus the awareness and education campaign on the cost of four years versus five years to graduation. Also, he asked that the President's remarks be made part of the meeting record. Trustee Grans so moved, seconded by Trustee Moser. The motion was approved. 

The second item, Chair Raymond said, was the redrafting of the description of a tuition plan for the three years following FY99, which will be circulated to the Trustees so it will be ready for action by the full Board at its meeting. No action was required by the Committee. 

The next item Chair Raymond asked President La Tourette to go over was the suggestion that the university review the 124 credit hour requirement for graduation to consider changing it to 120 credit hours and report to the Board at some future date. Dr. La Tourette stated that many universities require 120 credit hours for graduation. NIU's 124-hour requirement has an historical context that goes back to the time when the state mandated four hours of physical education. That mandate was eliminated, he said, but the extra four hours were not. What the university is trying to do, in addition to a campaign to have students make rational choices about the length of time they will be in the university to complete a degree, he said, is consider any barriers to degree completion. It was suggested that the campus examine the 124 hour requirement with the understanding that it is a minimum requirement because there are some programs at every university that require more than 120 hours. Because it is a curriculum issue, Dr. Larson, as President of the Faculty Senate and Executive Director of the University Council, would be consulted. This issue was raised years ago under the Board of Regents, President La Tourette said, but at that time they said every program should have no more than 120 hours, which threatened the quality of our programs. Many programs, such as engineering, require 130 to 140 hours. Reducing those programs would have made NIU students less competitive in the job market than students coming out of other institutions. 

Chair Raymond said that even though the matter came up in the context of affordability, this issue and the monitoring of the process should probably be handled through the Academic Affairs Committee. He then asked the Committee to recommend that the process of reviewing the 124 credit hour minimum begin and be done through the Academic Affairs, Student Affairs and Personnel Committee. Trustee Moser so moved, seconded by Trustee Grans. The motion was approved. 

UNIVERSITY REPORTS 
Dr. Williams said that one of the things he wanted to accomplish this year was giving the Committee an opportunity to meet some of the staff who work in the various areas and on the reports that routinely come to the Committee.  Agenda Item 7.a. – FY97 Report on Capital Activities 

Dr. Williams asked Mr. Jim Bryant, Director of the Architectural and Engineering Services area, to give a brief overview of capital transactions in FY97. Mr. Bryant said that From FY90 through FY96, there were a number of large project standouts. In FY90, the State of Illinois funded Faraday West, Engineering and the Rockford facility, and in FY93, the Campus Life Building and the parking structure were built. These accounted for the majority of the projects funded by the Capital Development Board in those years. By category, new construction in FY90, again, included Faraday West, Engineering and Rockford, and in FY93, the Campus Life Building, the parking structure and a number of other smaller projects funded that year. 

Mr. Bryant gave a brief history on the projects. Projects approved at the Board level in FY97, primarily, were the five bond projects approved in the December 1996 meeting. They account for $25.3 million of the $29 million funded in revenue bonds. State appropriations were less with $1.1 million for the Founders Library basement buildout and the emergency new roof project for Cole Hall this summer. There are a small number of local projects that were funded under other sources. Continuing the effort on repair and renovation, Mr. Bryant said, $18 million of the total for FY97 went to repair and renovation with $14 million of that going to Stevenson Hall. Other projects included the Latino facility renovation and $6 million of the $6.4 million was for West Campus site improvement projects. New facilities being funded in FY97 were a combined amount of $4.3 million for the childcare and recycling facilities, which were proposed in FY97 as new construction. 

President La Tourette emphasized that the report Mr. Bryant gave included both state-funded facilities and bond revenue facilities. Earlier in the meeting the discussion about deferred maintenance of $45 million pertained to state-funded facilities only, not bond revenue facilities. To include bond revenue facilities, Dr. La Tourette said, that figure would have to be doubled. 

Agenda Item 7.b. – FY98 Increment Summary Report 
The FY98 Increment Summary Report was introduced by Dr. Williams. This was an information report that showed how increment dollars were distributed over the current fiscal year in accordance with Board Regulations. 

Agenda Item 7.c. – Period Report on Transactions in Excess of $100,000 
Dr. Williams reported nine transactions between $100,000 to $250,000, totaling $2.5 million, that were reviewed and approved by the President. In accordance with the Regulations, these transactions are routinely reported to the Board through this Committee. 

Agenda Item 7.d. – Report on Status of Financial System Implementation
Dr. Williams said that contracts had been negotiated with all the major vendors, the software vendors and the consultant vendors for the new financial system. We are on schedule, Dr. Williams said, and will have our system implemented by the target date of Fall 1999. All negotiated contracts were within the budget approved by the FFO Committee and the Board of Trustees. 
  
Chair Raymond announced that he would like to amend the agenda by going to the last action item under Other Matters, because Trustee Moser had to leave. He then asked for a motion to change the agenda. Trustee Siegel so moved, seconded by Trustee Moser. The motion was approved. 

OTHER MATTERS 

Contract with Real Education, Inc. 
Dr. Williams said that the contract with Real Education, Inc. was in conjunction with NIU's Division of Continuing Education. It provides a unique opportunity for the delivery of instructional programs utilizing the Internet, he said. Real Education, Inc. provides all software and hardware necessary to connect to the Internet, they deliver the courses on an on-line basis, and will incur all expenses necessary to do this service. Several courses have been identified that are conducive to Internet instruction. Approximately 60 credit hours would be available through this system. The tenants of the agreement were that Real Education, Inc. would have certain course fees associated with using the Internet. Their capital investment costs would be realized through these fees. Direct costs were estimated at $300,000 for a course-development fee, payable $100,000 each year, which would be covered through the system user fees. The delivery fee would also be paid through system user fees. This provides an opportunity for the university to step into this creative instructional delivery system without a major capital influx from the university and opens the door to the future, if successful, to meet university objectives and goals. This is a $100,000 contract that would not normally come before the Board, but because it is a three-year agreement, the university felt it should come before the Committee so the Board would be aware of it. Dr. Williams asked the Committee's approval. 

Dr. Charles Larson asked that it be made clear that these are not credit courses. He asked that the fourth paragraph of the item read "… not for credit hours …" instead of "… the equivalent of 60 credit hours .…" This language change was noted. Trustee Grans commented that she thinks this is a good alternative for students, but also asked that it be monitored to assure that it is successful for the students and meets its objectives for the university. Dr. Williams introduced Continuing Education Executive Director Janet Lessner who stated that these are noncredit courses. She said that the credit hour is being used only as a metric for the pricing which is based on the metric of the equivalent credit hour course. President La Tourette commented that Northern Illinois University has a nationally recognized CPA Comprehensive Review program and that NIU's students run either first in the nation, or second tied with the Wharton School of Business, in the pass rate on the CPA exam. So, this move has been looked at very carefully, he said, to augment and improve the quality of instruction. Chair Raymond then called for a motion to approve the contract with Real Education, Inc. Trustee Moser so moved, seconded by Trustee Grans. The motion was approved. 

Agenda Item 7.e. – Recycling Center Reevaluation Update
Dr. Williams stated that President La Tourette made the commitment to work with NIU students and the campus community to come up with a cost-effective, efficient recycling program. Pursuant to that charge, Mr. Bob Albanese, director of the Physical Plant, Dr. Williams and other members of his staff met with several students leaders to discuss the issue of recycling on campus. Dr. Williams said they arrived at a viable program that is a cost-effective and efficient operation and preserves many of the goals and objectives the students had set when recycling was originally initiated on campus. He then asked Mr. Albanese to give a quick overview of the program to date. 

As Physical Plant Director on the firing line on a day-to-day basis, Mr. Albanese said, I was gratified to hear the comments made by the Committee on deferred maintenance and to know there is a lot of interest in that issue. He then introduced the students and staff members involved with recycling issues on campus including Beth Hull, Student Association President; Ryan DePauw, Student Association Recycling Director; and Mary Jo Marshall, from the Physical Plant staff, who is the point person on recycling issues. Mr. Albanese then gave a brief history of recycling at NIU from 1976 through the present and said that this was one of the first student-run programs in the nation. He also gave a brief overview of future plans to meet the minimum 1,400 ton weight requirement, mandated by the state in Public Act 86-1363, by January 2000. In answer to a question from Chair Raymond, Dr. Williams said there are no benefits for meeting the unfunded state mandate of 1,400 tons. 

Dr. Williams expressed appreciation to the Student Association President and Recycling Director and made the Committee aware that several things were preserved under this program, including the retention of employment opportunities for students and retention of the educational value and experience students now have by taking the better aspects of the old process and move it under a new structure that would remain cost-effective.  

Agenda Item 7.f. – Report on 1996 Revenue Bond Capital Projects 
Dr. Williams asked the project directors for the West Campus improvements to give short reports on the status of those projects which were funded through the proceeds of the bond issue approved by the Board last Fall. 

Dr. Williams asked Ms. Patti Perkins, project director for the campus childcare facility, to give a presentation. Ms. Perkins stated that the building site is located behind Gable Hall on Annie Glidden Road across from the Odekirk property. She explained a layout of the childcare center furnished by the contracted architectural firm of Burnidge-Cassell Associates. Along with child care, the Child Development Laboratory (CDL), an academic unit in the School of Family, Consumer and Nutrition Sciences, will be included. The building will contain space envelopes for classrooms, common areas, offices and so forth. It is estimated that the center will have a total of 185 children ranging from toddlers to school-age children. Ms. Perkins said that Burnidge-Cassell is working closely with cost estimators to stay within the $3.1 million budget approved for the project. The facility is to contain approximately 22,000 square feet — 19,000 square feet for the childcare center and 3,000 square feet for the CDL. The exterior will contain two play areas: one for the older children and another for the toddlers. Users and campus professionals are scheduled to review design documents early in November. Bid documents should be out in January and construction underway in March or April, Ms. Perkins said. The facility should be completed in January 1999. 

Dr. Williams asked Mr. Pat Bell, project manager for the Center for University Resources for Latinos and Latin American Studies, to give a presentation. Mr. Bell reviewed information given on the project at the May meeting. The existing facility, a one-story, L-shaped ranch, residential structure, is located at the corner of Newman Lane and Garden Road. It has been redesigned into a rectangular office building. The lower level, which has been designed to accommodate student activity, includes a large meeting room, a computer study room and a room to house various student organizations. The ground level floor includes the main entrance, lobby, reception area and office staffs of the University Resources for Latinos and the Center for Latino and Latin American Studies. In June, the offices of University Resources for Latinos moved to temporary quarters at the Odekirk House on Annie Glidden Road and the facility at 515 Garden was vacated. Construction was anticipated to begin at the end of the summer; construction documents were completed and bids opened on August 27. Bid results, however, exceeded the estimated cost of construction in the approved project budget. The university has directed the project architect, Wendell Campbell and Associates, to incorporate modifications into the plans and specifications that will provide options for lower building costs. The university intends to rebid the project in November. An asbestos investigation was conducted early last summer and asbestos containing material was discovered in the building. That will have to be abated by a licensed asbestos contractor before outside contractors can begin construction. The university is proceeding with issuing a contract to commence abatement. Because the project has to be rebid in November, the start of construction will probably be delayed until weather improves in the Spring. 

Mr. Bell is also in charge of the West Campus site improvements project. This project was designed and bid in two separate phases. Phase I-A includes the large parking lot north of the Grant Towers complex and the smaller lot southwest of the Stevenson Towers complex. The two lots combined will provide 575 parking spaces, which will accommodate the student parking displaced from Lots K and L, where the Central Park is to be constructed. Phase I-B is the construction of West Commons, or Central Park, as well as the intramural and recreation playing fields west of the Stevenson Hall complex. Also included in Phase I-B is a gateway to the residential campus, which will be located on the corner of Lucinda and Annie Glidden. Phase I-A began in June and progressed through mid-August when a series of rains set progress back a couple of weeks. Lot PS, west of Stevenson has had lights installed and was to be opened in the next few days. Lot W was scheduled for paving that week to be ready for use September 26. 

Mr. Bell said that Phase I-B bids were opened on August 28. The low-base and alternate bids were all within the approved project budget. Some of the alternates to be included in Phase I-B are enhancements to the new pedestrian gateways into the common and the diagonal wall, which is a main site feature of the West Campus. Additional athletic facilities will include two full-size basketball courts and a roller hockey court, all with special sport court paving. An equipment storage building, which will be a masonry structure, will be sited at the new intramural fields. The Lucinda Avenue gate enhancement will also include additional six-foot limestone columns with painted black steel fencing, running north and south on Annie Glidden and west on both sides of Lucinda, and enhanced site lighting for increased security around the park. Also included in the infrastructure were 500 feet of 18-inch pipes for a future chilled water supply to the Stevenson Towers complex. It is anticipated that the contractor will commence work in early October once student parking has moved to the new lots. 

Dr. Williams asked Mr. Jim Bryant to give a report on the Stevenson Towers residence hall improvements. Mr. Bryant reported that in previous reviews of the project, there was a problem maintaining control over the budget for the program. As reported in the minutes from that meeting, he said, we were at about 26% of mechanical upgrades. Following up on comments made at that point, the program was scaled back to a more concrete effort so that mechanical upgrades in the facility are now closer to 50:50 percent with the carpet, paint and interior dιcor. A center street has been planned from north to south between Stevenson North and Stevenson South in order to go through pleasant surroundings rather than through the dark corridors of the basement. One portion of the facility that did not suffer was the food service area in the center core of the facility. Mr. Bryant said that in consultation with housing and dining services and Birchfield Food Service consultants, who were consultants to Solomon, Cordwell, Buenz, they put together a number of prototypes for what will be incorporated in the food court. It was found that 60% to 70% of the present stainless steel equipment still has serviceable life and has been incorporated into the new plan. A Request for Proposal was issued this summer to a number of construction management firms, their qualifications were reviewed and contracts were executed for construction management with Turner Construction in Chicago whose input has been invaluable in keeping the project within its budget, Mr. Bryant said. 

Asbestos abatement for this project was bid in late August and all were under budget. The firm is now under contract and abatement is to begin this week. Approximately 65,000 square feet of floor tile will be removed, with some minor abatements in the food service area. Construction documents had been sent out and a prebid meeting was scheduled for September 18 with bids due October 2. Bryant said they are trying to stick to the planned schedule as much as possible in order to be ready by the August 1998 completion date and have students in the complex this time next year. In addition, Mr. Bryant said they would be meeting that week to discuss alternates and establish priorities for the housing and dining service program by October 2. There is a list of about 20 alternates, among them are the major enhancement of the roofing area above the street in the center core and renovation of floors on a floor-by-floor basis, with the base bid being five of the ten in each tower and working up from there. That is based on the original master plan put together by Solomon, Cordwell, Buenz to do only five floors in the building. Mr. Bryant said that is simply being redefined as the base bid and increasing the costs and bids associated with it by taking alternates to go up the floors. 

Agenda Item 7.g. – FY97 Report on Depositories 
Dr. Williams thanked Ms. Tammy Farley for putting together the FY97 Report on Depositories, which showed the banks used by the university and activities with each over the last fiscal year. 

Agenda Item 7.h. – Fall Enrollment Preliminary Report
Dr. Williams asked Mr. Dan House, Director of Institutional Research, to just give the Board a very quick review of the most current enrollment data. Mr. House presented figures showing NIU's official enrollment and the changes from Fall 1996 to Fall 1997 which showed that the university saw increases in undergraduate enrollment, new freshmen, new transfers and honors new freshmen. Undergraduate enrollment increased 3.0% to 15,855, graduate enrollment increased three-tenths of one percent, and enrollment in the Law School remained steady. Overall, the student population at NIU increased from 21,609 students in Fall 1996 to 22,082 for Fall 1997, which represents a growth of 2.2%. With regard to new student enrollment from Fall 1996 to Fall 1997, new freshman enrollment increased from 24,051 to 2,688, representing a growth of 9.7%. New transfers increased from 1,995 to 2,230, representing an 11.8% increase. An increase of 34.2% in honors new freshmen was included in the new freshman enrollment increase. 

Agenda Item 7.i. – Northern Illinois University Foundation Financial Report 
In accordance with a request from Chair Raymond, a summary of financial activity for the NIU Foundation for FY97 was presented. A full report will be given on Foundation activities at the next Legislation Committee meeting. For FY95-96, the NIU Foundation raised $4,083,936, and in FY96-97, the Foundation raised $5,323,723, which represents a 32.9% increase over FY95-96. 

Agenda Item 7.j. – Illinois Association of School Business Officials (IASBO) 
Dr. Williams updated the Committee on the progress of the previously approved contract with the Illinois Association of School Business Officials (IASBO), which allows for the construction of a facility on the NIU campus to be used jointly by IASBO and the university under a lease and leaseback agreement. Dr. Williams informed the Committee that the IASBO board has approved the agreement and the project is underway. The new facility should be ready for occupancy by the end of 1998. 

NEXT MEETING DATE 
Committee members will be notified of the next meeting date.  Chair Raymond asked for a motion to adjourn. Trustee Grans so moved, seconded by Chair Raymond. The motion was approved. 

The meeting was adjourned at 12:43 p.m. 
  

Respectfully submitted, 

Sharon M. Mimms 
Recording Secretary