Minutes of the
NIU Board of Trustees
FINANCE, FACILITIES AND OPERATIONS COMMITTEE

February 6, 1998

The Periodic Summary of Transactions in Excess of $100,000 included six items totaling $890,000. Of those items, only one was funded through appropriated funds. This report is given on a periodic basis in accordance with Board Regulations.  

Agenda Item 6.b. – Annual Summary Report of All Transactions  

This report provides an overview of all transactions during the previous 12 months. Items within the range of $25,000 up to $250,000 are approved by the President. Purchases and professional services totaled $73,256,755. Of that total, transactions under $100,000 amounted to 99.57% of the total number of transactions, but only 55.34% of the total dollars. There were 36 items, or .23% of the total transactions, above $250,000 that amounted to 38.18% of the total dollars expended. Fifteen leases under $100,000 totaled $274,719. Of the total capital projects, 75 (94.94%) were under $100,000 and two were in the $100,000 to $250,000 range. Two projects over $250,000 (2.53%) were brought before the Committee representing 91.98% of the dollar volume expended for capital projects. 

Agenda Item 6.c. – Illinois Board of Higher Education: FY99 Operations and Grants Budget Recommendations 
 
This item provided an overview of the FY99 Illinois Board of Higher Education operating budget recommendations. These recommendations were approved by the IBHE at its January 6 meeting. Based on those discussions between IBHE and campus staffs and reactions to their recommendations, Dr. Williams said, some adjustments were made. One of the things discussed in this committee and with the IBHE was the format of the budget and the fact that their recommendations include the income fund. The income fund is now a local fund; it should not be a part of IBHE appropriation recommendations. Because IBHE still includes the income fund in their appropriation recommendations, Dr. Williams said, there were many different percentages and dollar amounts compared to the actual higher education increase and, by extension, to NIU. A summary comparison showed the FY98 level of appropriation, the FY99 IBHE recommendation, the dollar difference and the percentage difference. General funds are the funds that the university receives from the state. NIU received a 4.2% increase. Comparing that increase with other institutions around the state, it is comparable with the large institutions. 

The other part of the IBHE recommendation is the University Income Fund. The income fund for NIU reflected the impact of some of the dollars collected from enrollment. NIU's income fund was originally set for 24,000 students and the university is now at just a little over 22,000, Dr. Williams said, so we have been in the process of reducing that base number in the income fund over the last two years. NIU's income fund percentage showed only a two percent increase over the previous year, because some of the increase was absorbed in replacing income fund authority. The university did not have enough enrollment to generate that much money. Dr. Williams stated that this did not have a negative impact on Northern because the income fund is a local fund, so whatever comes in will be available for use by the university, and if enrollment income exceeds the estimate, those dollars will be available for university use. Chair Boey said that including the income fund in the IBHE budget implied that NIU was receiving a higher percentage of state funds. The income fund is an independent fund, local to NIU, he said, having nothing to do with state-mandated budgets. Including the income fund in the budget gives a false impression of the total dollars coming from the state, the Chair said, and that creates a lot of confusion for the public. Dr. Williams said that page 17 gave a comparison of the requested amount approved by the Board of Trustees and the IBHE final recommendation. There was a very noticeable difference in the Board-supported 5.5% salary increase and the Board of Higher Education recommendation for a statewide 3% increase for salaries. There were no price increase dollars provided for technology. Chair Raymond pointed out that though IBHE recommended a lower salary increase, they added an item for retaining critical faculty, which included support staff, in recognition of the fact that the university did have some special needs. 

Chair Raymond asked Dr. Williams to explain the technical adjustments at the bottom of page 17. Dr. Williams stated that the technical adjustments were the university's efforts to resize the income fund so that the estimated revenue would be closer to what the actual revenue would be. Dr. Williams said that this is not lost revenue because the institution does generate these dollars. If enrollment rises, the university will realize additional revenue from tuition and those dollars will be available for use. So, it is not a loss of dollars, he said, but an opportunity to more accurately size the estimated amount of the income fund with the actual revenue anticipated. To answer Chair Raymond's inquiry on whether that adjustment is made by NIU or IBHE, Dr. Williams said the technical adjustment appears in IBHE's budget recommendations. That, again, he said, distorts the actual amounts increased in a particular category like the income fund, or the overall increase to the institution, because these kinds of adjustments are being taken into consideration when they do an overall percentage increase from all funds. Chair Boey pointed out that if the income fund was left out of the equation, none of those adjustments would be necessary. 

Agenda Item 6.d. – Bond Escrow Restructuring Report  

Dr. Williams asked Kathe Shinham, Associate Vice President for Finance and Facilities, to give a quick overview on this item. Ms. Shinham stated that the university had been given the opportunity to restructure three escrows established in 1985, 1992 and 1993, from which it should receive a return of approximately $100,000. When these escrows are originally set up, she said, treasury securities are bought with maturities that closely match, but are prior to the bond payment dates. This has resulted in having funds uninvested in one of the escrows for 45 to 47 days, another for up to 77 days, and a third for one to 17 days. Competitive provider bids will be sought for two of these escrows to give the university securities for the time the funds are currently invested. Once the treasuries are obtained from the provider, the university will release funds in the same amount for them to invest. In return, Ms. Shinham said, the university receives advance cash. Plans are to sell the investments currently in the escrow uninvested for 17 days and buy some that have maturities better matching the bond payment dates for which the university would also receive advance cash. 

Dr. Williams stated that the university had received the funding for Altgeld Hall, approximately $19 million, and now the university could move forward with this long-awaited project. He asked Ms. Patti Perkins, who is the project manager, to give the Committee an overview of a part of this major project. Ms. Perkins said that discussions for the renovation of Altgeld began in 1988. Seven years later, planning funds in the amount of about a half million dollars were appropriated to the university. Three years after that, in November 1997, the legislature appropriated approximately $19 million for the construction phase of the project. It was anticipated that funds would be released in the next few weeks. On the exterior, Ms. Perkins said that the approximately 360 windows will be replaced, the roof will be replaced and general repairs, such as recasting and remounting the three missing gargoyles, will be done. 

Ms. Perkins said the interior renovation would address replacement and updating of building systems and mechanicals. The window air conditioners will be eliminated; heating will be added; electrical wires will be hidden in the walls; elevators will be added for ADA compliance; access will be made available to the east and west third-floor towers to increase building circulation; asbestos will be removed and encapsulated; space reconfigurations will be done to allow more efficient use of building space. Part of the historical restoration will include a grand staircase in the entrance lobby; the auditorium will be brought back to its original condition; and there will be an art gallery, an information center, and meeting and conference rooms for the public. A technologically advanced classroom is planned. 

The construction budget is approximately $19 million and 90% of that will be for the base building package, which includes heating, ventilation, asbestos abatement, code compliance, egress, etc. Only ten percent, Ms. Perkins said, will be spent on the historic upgrades and restoration. It is hoped that the funds for the project will be released by March 1. A contract with the Capitol Development Board and the architects is anticipated to be confirmed by May. Documents, which are now at 90%, will be finalized by July 1, Ms. Perkins said, and we hope to bid by Fall and begin construction in December or January. The construction schedule is set for 36 months. In approximately three years, or in 2001, the building will be ready for occupancy. Before that can be done, however, the building has to be cleared of its current residents. Key offices, including Registration and Records, Accounting, Procurement and the Graduate School are housed in Altgeld. All those offices will be relocated. However, before they can be relocated, the spaces they will be moving into have to be remodeled for their use. The item for Williston Hall, second and third floors, later on the agenda, is where Registration and Records we be relocated. Gilbert Hall will also be used. Upon completion of this project, which will be the cornerstone of the campus, Ms. Perkins said, we will have a landmark that is befitting the tradition and the stature of this institution. She then asked Tom Mahaffey, from Burnidge-Cassell, to expand on the anticipated renovation. 

Mr. Mahaffey showed slides of the building exterior. The main differences he mentioned were the third floor length in a design taken from English conservatory tradition in keeping with the overall design theme of the castle. The exterior of the front is sheathed in limestone, which will be tuck-pointed. The ivy will have to be removed in order reach the underlying masonry. The back of the building is brick and has deteriorated to the point that it needs considerable masonry replacement, tuckpointing and sealing. Two stair towers detailed in brick and trimmed in stone similar to the back of the building, will be built on the east and west sides in compliance with the current building codes to replace the existing fire escapes. Several entrances will be upgraded to comply with the new ADA access regulations. The front door will have a new sidewalk and ramp that will have a snow melting system built into the concrete at the main entrance. The east, west and north entrances will all have the same kinds of features in order to comply with ADA regulations. 

The existing gymnasium in the center of the building will be the location of the new technology-advanced classroom, which will have fixed seating for 65 students. The classroom will be tiered so that the site lines are enhanced and some technological enhancements, such as computers and AV, will be added. 

There will be an information and visitors center in the main lobby. Upon entering the building, there will be a two-story lobby with a grand staircase on either side of the auditorium that will be restored to the original historical character. The details and colors that we have discovered in the research investigation portion of the project, Mr. Mahaffey said, will be used throughout the public areas of the building to make it inviting and attractive to the public. The corridors, the lobbies, the auditorium and a few other areas considered to be public spaces, have the most historical significance in the building, so they have received the bulk of attention to restore them to the original structure, which was built in the late 19th Century. Rooms have been planned and designed in an area of the far west wing of the first floor to accommodate the art gallery. The east wing will have office spaces complete with conference rooms, storage areas, work areas and offices. 

On the second floor, at the top of the grand staircase, the detailing and design are taken from the original single-flight stair that was uncovered in the university's photographic archives. The baluster will be cast aluminum with a vegetable type of detailing to comply with the current codes. The auditorium will be straight ahead at the top of the staircase, with a small lobby area as an extension of the corridor. There will be coat and chair storage rooms flanking the entrances. To the left and the right of the staircase in the lobby will be two reception areas, or multipurpose rooms, to be used in conjunction with events being held in the auditorium. The entire central module of the building is securable from the balance of the east and west wings by doors designed for security so they can operate after hours. The existing stairs are being replaced by two sets of stairs to comply with current building codes and will be enclosed to comply with the fire rating requirements of the enclosure. Restrooms will be upgraded to comply with current ADA regulations. 

The balance of the second floor's office suites will contain the same office, work, storage and filing areas as previously mentioned for the east wing of the first floor. The auditorium, Mr. Mahaffey said, is the prime inspiration for all the restored historical spaces in the building. It exhibits 12 busts of historically significant people, like Washington, Lincoln, Grant and others that will be highlighted. Mr. Mahaffey showed pictures of how the entire lobby might look when completed with egg-and-dart molding and with leaf-and-dart molding on some of the existing beams that will be seen throughout public areas such as the lobby and the corridors. 

Mr. Mahaffey then showed a detail from one of the samples in the auditorium that had been restored in a design that could be bid by contractors. It detailed decorative painting scagliola (plasterwork in imitation of ornamental marble) on the shaft of the column, gold leafing, staining and varnishing, enhancing of all the significant cast plaster detailing, leaf-and-dart moldings, egg-and-dart moldings, etc. He also showed a detail of how some of the cherubs and architectural detailing might look from the restored face of the balcony accessed from the third floor. Mr. Mahaffey showed a sample of how the 12 historical figures would be restored. An enhanced lighting system will focus pin spots on these figures that will fade in and out as the house lights are turned up and down. The stage will be reopened and receive several enhancements, including flexible stage lighting and an upgraded sound system will be installed, as well as acoustical enhancements, to solve reverberation problems that might currently be experienced. It is designed to be a multipurpose room, not a performing arts center. 

The third floor illustration showed the area between the main section of the building and the two towers. The roof will be replaced in those sections, creating new office spaces and the physical link between the east, center and west portions of the building. On the west side, there will be a gallery with a number of different kinds of things exhibited with lighting on the walls, an office suite, and a large conference room with some associated office spaces. On the east side will be another office suite, featuring some open offices and some closed-in offices for privacy. In the far west and east wings of the building, are two large, open rooms that have a lot of ornamental plaster detailing that will be restored to an historical period. Detail slides of those spaces showed a center medallion approximately 10 to 12 feet in the center of both of those spaces surrounded by more mature cherubs, gold leafing and some other decorative detailing. Both rooms are surrounded by a frieze of ornamental plaster encircled by egg-and-dart molding, leaf-and-dart molding, festoons and garlands, and more cherubs. Chair Raymond commented that the renovation looked like a tremendous project and said everyone looked forward to seeing the end results. 

Agenda Item 7.b. – 1996 Bond Series Capital Project Report 

Item 7.b. was a brief summary of a few bond projects funded through the 1996 bond series approved by the Finance, Facilities and Operations Committee and the full Board. Dr. Williams stated that architectural estimates for the campus childcare facility had all been over budget, which he said was not unusual, but a time-consuming process. He said that Provost Moody and Assistant Provost Nick Noe were working with the childcare providers to try to reduce the program so that it fits the budget. It was hoped that a completed project would be ready for presentation at the next Committee meeting. The Center for Resources for Latinos and Latin American Studies was also over budget. This is a combined renovation-rehabilitation project with a new wing added. In looking further into the rehabilitation portion of the project, Dr. Williams said they are seeing increasingly more that needs to be done. There is a point, he said, where it is not cost-effective to rehab and is more effective to build new. He will have an update at the next FFO Committee meeting. 

Dr. Williams reported that the new West Campus parking lots have been completed, lighting was added, safety call boxes were installed and the lots are now being used. The Stevenson Towers renovation project is within budget and proceeding nicely, he said. Due to the efforts of Mr. Coakley and Dr. Gary Gresholdt working with the consultants and university staff, the previous overage was reduced to the budgeted amount in a way that did not adversely affect the final product. 

Agenda Item 7.c. – FY99 Appropriated Capital Budget Request and IBHE Recommendation 

This is the other half of the IBHE FY99 Budget Recommendations. It refers to the capital requests sent to the IBHE from NIU. The Board of Higher Education receives the requests from all of the public universities and community colleges. After their own internal review, they develop a statewide priority list for that particular fiscal year, which they then recommend to the Governor. NIU had Altgeld as its top priority, and since it was funded in December, there was no need to continue it into the FY99 request. The next two priorities are key items for the university. The storm waterway management project, which addressed the flooding problems experienced through central and east campus was one. The other was the Founders Library buildout for which the university received planning funds. Now, Dr. Williams said, we are in need of the actual construction funds. When reviewed by the IBHE, these projects received the following priorities. The storm waterway project became number 20 on the priority list. To get to this project, the State would have to allocate approximately $100 million for new capital projects in higher education. The library buildout project received a priority rating of number 32 on the list. The State would have to allocate almost $200 million in order to reach that level. Dr. Williams pointed out that though these numbers seem high, in a previous year, the State allocated as much as $120 million. This would mean that the storm waterway project could make the Governor's list and be funded in FY99. 

The Board of Higher Education continued its support for capital renewal projects involving minor repair and renovation. The amount recommended for NIU was approximately $1.3 million. In addition to that, IBHE has followed up on a $30 million statewide technology initiative that includes both the universities and the community colleges. The purpose is to provide seed funding to allow institutions to provide the infrastructure necessary to accommodate the most recent technology and technology advancements both in computers and instruction and research. Again, Dr. Williams said, the funds are available for infrastructure only, not for buying equipment. Chair Raymond recalled the budgeting process referred to on page 17 and the fact that the State has an initiative on the use of technology. NIU requested $1.9 million in technology enhancements and $2.9 million for computer systems/software upgrades. However, IBHE recommendations for these items were $372,000 and $100,000, respectively. The university requested a 10% increase for other technology needs and IBHE recommended zero. 

Business and Industry Services (BIS) is housed in a business building in the western suburbs of Oak Brook. They are leasing two spaces that had different termination dates. The university extended the termination date of one of those spaces to coincide with the other so that both leases will expire at the end of February 1999. There are no cost increases to the extension; Dr. Williams said the owner extended the lease at the same terms and conditions of the current space. The university requested approval of the amendment to the BIS lease with Carr America Realty Corporation under the stated terms and conditions. Trustee Moser so moved, seconded by Trustee Grans. The motion was approved. 

Agenda Item 8.b. – Williston Hall Remodeling Project 

This project is needed in conjunction with the Altgeld Hall renovation project and the relocation of some of Altgeld's current tenants to an appropriate space. Dr. Williams said they would like to make this a one-move plan. If a unit is not being relocated into Altgeld once it is renovated, they would like to make a one-time move to the permanent location. Registration and Records, with responsibility for grades, reports, etc., is now in Altgeld and will be permanently relocated to Williston Hall. Therefore, renovation is necessary to make the permanent changes in Williston Hall to accommodate Registration and Records. This is another rehabilitation project. Williston is one of the older buildings on the campus, which means there are some problems with asbestos, heating and air conditioning systems, tuckpointing and other things of that nature that make this a difficult, but necessary project. The budget has been set at $960,100, which is reflective of the fact that it is a rehabilitation project. Dr. Williams said they could not be sure what they would encounter once they begin the planning and evaluation of the space. The funding for this project will come primarily from the repair and maintenance portion of the university's appropriated budget. What we are doing here, Dr. Williams said, is putting together a funding strategy that includes several fiscal years. Doing it that way will allow the university to utilize funds as the monies become available over the next three years. If these projects were put in the State capital system, Dr. Williams said, it would take eight to ten years, in many cases, for projects to be funded. This is a strategy by which the university's immediate needs can be addressed, get the work done and then allow the Altgeld project to proceed. The university requested approval of this project. In answer to a question from Trustee Moser, Dr. Williams said that the architects are proceeding with the Altgeld project, so no time will be lost while these other spaces are being renovated. According to the current schedule, construction should start on Altgeld in December or January of next year. By that time, it is hoped that the Williston space will be completed. Other groups to be moved include larger ones such as Accounting, the Graduate School and Grants Fiscal Administration and a number of smaller units. Dr. Williams said there would be future requests for repair and renovation of other areas so that these units can be relocated from Altgeld. The Board authorized the renovation of Gilbert Hall last year in order to accommodate the temporary relocation of some of these offices during the renovation. Trustee Moser moved to approve the Williston Hall remodeling project, seconded by Trustee Grans. The motion was approved. 

Agenda Item 8.c. – FY99 Student Fee Recommendations 

FY99 Student Fee Recommendations cover a number of specific areas for which fees are assessed, such as student activity fees, bus fees, athletic fees, health fees, etc. A committee consisting of both staff and students provides recommendations to the President regarding appropriate fees for these areas. The committee's recommendations to the President are reviewed in the Finance and Facilities office and then presented to the President. After the President's review, the President and Dr. Williams meet with the student leadership to review the recommendations and respond to any concerns or questions in an effort to be sure students are both informed and comfortable with them. The overall FY99 student fee rate increase recommended was a maximum average of 3.5%. Student Trustee Kovacs thanked President La Tourette, Senior Vice President Williams and the administration for working so closely with the Student Association and student leaders on these recommendations. These increases, he said, were kept pretty much in synch with the tuition increase percentages, so they were around the expected level. Trustee Moser moved to approve the FY99 student fee recommendations, seconded by Trustee Grans. The motion was approved. 

Agenda Item 8.d. – FY99 Off-Campus Course Delivery Fee  Recommendations

Dr. Williams said that NIU has one of the larger off-campus programs in the state of Illinois. Delivery of these programs to various sites around the state is possible through a delivery fee, which generates funds to help offset the costs of travel and delivery of the course, rental of space and any other associated costs for offering that particular program or course at an off-site location. This request to increase the delivery fee from $30 per credit hour to $35 per credit hour came from the Academic Affairs Division. This modest increase will help cover price increases occurring in the marketplace. In addition, Dr. Williams said, the university has a few special programs, including the MBA program, that are in high demand, especially throughout the western suburbs. The university requested that the delivery fee be increased from $137 to $150. Trustee Grans moved for approval of the FY99 off-campus course delivery fee recommendations, seconded by Trustee Moser. The motion was approved. 

Agenda Item 8.e. – FY99 Room and Board Rate Recommendations 

Dr. Williams invited Mr. Michael Coakley, Director of Student Housing and Dining Services, to give a brief summary of the FY99 room and board rate increase requests. Mr. Coakley reported that Student Housing and Dining Services had some success this past year in meeting the needs and requests of students to make the residential experience a more positive one. Some things implemented in the past year that have been very well received by students, Mr. Coakley said, are continuous dining so students can eat on a much more flexible schedule; the addition of dining dollars, which allows for carryout; moving toward a staffing model with a higher number of professional staff per freshman to help with retention efforts; and the opening of the Triton Coffee Shop where students can get together with fellow students and faculty and staff. Mr. Coakley stated that, with the exception of the Stevenson rooms, there was a 5% increase in the room and board rates. Three percent of that increase is operational increases covering such things as utilities, expected staffing and salary increases. The other two percent reflects the increase necessary for repayment of the West Campus Master Plan bond. The higher increase for Stevenson was based on a student request. They believe that a student who lives in a renovated room in Stevenson that now has a semi-private bath in some cases, should pay a significantly higher rate than a student who lives in a double room in an unrenovated facility. 

Through reallocation of resources within the department, Mr. Coakley said, we will still be able to continue present initiatives as well as implement some new ones. Plans are to expand the number of residential freshman interest groups with the College of Liberal Arts and Sciences from four to sixteen. Two more academic-option floors will be added — the Teach Program in collaboration with the College of Education and Women in Science with Liberal Arts. Twenty-four hour counseling support will be offered through the Counseling and Student Development Center by a counseling intern. The in-house tutoring program and study skills program to assist first-year students will be continued and expanded. The groundwork has been laid to develop a faculty-in-residence program, to increase the amount of faculty interaction with students in the residence halls. Mr. Coakley said that when he compared NIU's rates to other Illinois universities, NIU was at the midpoint, and when compared to MAC school colleague peer institutions, NIU ranked in the lower quartile. I think we offer a very good quality program and service for our students that has value they might not find at other institutions, Mr. Coakley said, and that will help with NIU's recruitment and retention efforts. 
 
A room and board advisory committee comprised of representative students from the Residence Hall Association, the Student Association, members of the Finance and Facilities staff, and Housing and Dining Services staff worked on developing the new rates. Information was constantly taken to the Residence Hall Association and their responses were taken to the advisory committee to establish a rate that could be supported by both groups. Student Trustee Kovacs said he agreed with the things Mr. Coakley had already done with the focused interest groups and the different floors which have generated a lot of excitement among the students. He said that many students have approached him to say that they like the activities instituted in the residence halls. They are also excited about the new rooms in Stevenson and willing to pay the extra price for them. Mr. Kovacs said there is a lot of excitement about all the things happening in that area, and that many students are happy with what Mr. Coakley is doing. Trustee Grans said it was nice to see the synergy between the AASAP Committee and the FFO Committee in that the programs reported on and requested in the Academic Affairs Committee were now being funded through the Finance Committee to address the needs of the students. Chair Raymond commented that this is a major part of enhancing the experience for students on campus. He then asked for a motion to approve the FY99 room and board rate recommendations. Trustee Moser so moved, seconded by Trustee Grans. The motion was approved. 

Agenda Item 8.f. – Huskie Bus Contract – FY99 Renewal 

The Huskie Bus contract is being presented for the second year of its four-year agreement. The terms and conditions are set forth in the general contract, Dr. Williams said, and the costs were as anticipated for this year. Fuel prices have been stable and none of the special provisions in the contract had to be utilized. The university requested approval for the FY99 renewal of the four-year Huskie Bus contract. Trustee Moser so moved, seconded by Trustee Grans. The motion was approved. 

Agenda Item 8.g. – Student Accident and Sickness Insurance – FY99 Contract Renewal 

The Student Accident and Sickness Insurance contract is also a four-year contract and this is the second year of that agreement. Dr. Williams wanted it placed on record that the university was looking at the possibility of adding additional types of coverage to this base contract. According to the terms of the contract, that may or may not have an affect on the overall cost of the insurance, he said. The approval is worded to not exceed $4 million dollars. Dr. Williams felt the additional riders would not exceed that amount. If they do, the matter will be brought back to the Committee and then taken to the full Board for an amended approval. The university asked approval of the student FY99 accident and sickness insurance contract renewal as stated. Trustee Moser moved for approval of the FY99 accident and sickness insurance contract renewal, seconded by Trustee Grans. The motion was approved. 

At this point in the meeting, President La Tourette and Dr. Keith Sanders, the recently appointed Executive Director of the Illinois Board of Higher Education, joined the meeting. On behalf of the Finance, Facilities and Operations Committee, Chair Raymond extended a warm welcome to Dr. Keith Sanders and gave a brief history. Dr. Sanders assumed his role at the IBHE last month. He is an Illinois native with significant experience in Illinois higher education. Most recently, he was Senior Vice President for Administration and Chief Operating Officer for the University of Wisconsin in Madison, Professor of Communication at the University of Wisconsin at White Water, and Lecturer in Educational Administration at the University of Wisconsin at Madison. The Chair welcomed Dr. Sanders and thanked him for joining the Committee.  

On behalf of the Board of Trustees, Board Chair Boey said he would like to add his warm welcome to Dr. Sanders on his visit to our campus. The Board Chair said that he and Dr. La Tourette had the opportunity to welcome Dr. Sanders to this area the prior evening and spent time sharing their opinions and feelings on certain matters with him. Chair Boey told the Committee he was proud to report that he found Dr. Sanders speaks their language in entrepreneurship, strategic planning, return on investments and streamlining the budget process. He said that the Board truly looked forward to working with Dr. Sanders and being involved in a partnership to streamline the whole budget process. 

Chair Raymond then gave Dr. Sanders an opportunity to make a few remarks. Dr. Sanders thanked Committee Chair Raymond and Board Chair Boey for their kind remarks. 

He went on to say: 

You have, fortunately for you, a very aggressive, articulate Board Chair who speaks persuasively on your behalf. He speaks your language too, and he really did a good job last night answering my question, "How can the Board of Higher Education improve in its efforts to help you do your work?" The only problem was, we only had dinner, we didn't have a couple of days for him to fully elaborate on his answer. I want to thank President John La Tourette for being such a good and warm host. I have had a chance not only to have dinner with him and Chair Boey, but I met this morning with several members of his staff. There was a candid, informed exchange of ideas, and I was impressed by how willing his staff was to disagree with him and me when they thought we were wrong. I enjoyed that. I would also like to thank the Trustees who are here. You have performed such an enormously important function for this university. You helped give it guidance and focus, and you apparently have learned that your biggest single job is to retain this excellent president. You give him a lot of support and do not micromanage. You do the things that trustees do very, very well and not the things that they don't do so well. I congratulate you on the stance you have taken and on the progress that you have already made. I have three or four quick impressions, having read some materials about you and from my visit today. I want to congratulate you on several important initiatives. I think that the early retirement program that the President, his staff and others worked out is a fine idea. You are also reducing the time that faculty spends in committee work and redirecting some of those efforts, and I congratulate you on that.  

Making sure that people have their say in an efficient way in the decisions you make strengthens shared governance, which is very important on a big nationally recognized university campus like this. I applaud you on the tuition and fee plan that you are drawing up, or that you have drawn up, to give those who come here a sense of what it will cost them in the future. As I understand it you have sort of indexed your tuition and fees to certain external indices, and that will help make the cost of higher education predictable for your students. That shows me that you have a great concern about them and that you really care about helping them afford to come here. Your Hoffman Estates and Rockford Education Centers' entrepreneurship is extraordinary, unique, very productive and the kind of thing that all of us are going to have to do more of in the future. 

Finally, let me say that I had a very brief breakfast this morning with one of your prominent faculty members, a friend of mine for some 15 or 20 years, Charlie Larson. And I said, "Charlie, if you could just tell me one thing that the Board of Higher Education could help this campus do, what would that one thing be?" Now I expected Charlie to say, "Well, our faculty are underpaid," – that is true – "and you can help us get competitive wages." Or I expected him to say, as a nationally known researcher and writer, "Well, we just don't have quite enough money here to support faculty research and writing." But, let me tell you what he told me, and this tells me a great deal about Charlie, the faculty here and the good health of this university. He said, "You can help us most with the deferred maintenance problem." Now you think about that a minute. It is truly extraordinary for a faculty leader to be as concerned about deferred maintenance as about the other issues which you would ordinarily see dominating the agenda of the Faculty Senate. So, I would just say, "Thank you, Charlie, for giving me such good counsel." And thanks to the President and the Chair and everybody that I have met with so far. I am enormously impressed by this outstanding institution. I particularly like your aggressive entrepreneurship, and I promise you I will do everything I can to encourage you in that over the years ahead. 

Chair Raymond asked for a motion to conduct an Executive Session at approximately 1:00 p.m. in the University Suite to discuss property matters as generally described under §2(c)(5) and §2(c)(6) of the Open Meetings Act. Trustee Grans so moved, seconded by Trustee Moser. A roll call vote of the Trustees was unanimous. 

Chair Raymond announced that the motion was passed and noted that the Committee would finish its public business at the end of this meeting and would not be returning to open session after completion of the approved closed meeting. 

The Chair asked for a motion to adjourn. Trustee Grans so moved, seconded by Trustee Moser. The meeting was adjourned at 11:46 a.m. 
 

Respectfully submitted, 

Sharon M. Mimms 
Recording Secretary