Minutes of the
NIU Board of Trustees
FINANCE, FACILITIES AND OPERATIONS COMMITTEE
April 1, 1999

Recording Secretary Sharon Mimms conducted a roll call of Trustees. Members present were Trustee Susan Grans and Chair Sanchez. Also present were Committee Liaison Eddie Williams, Board Chair Robert Boey, Student Trustee Joseph Sosnowski, Board Parliamentarian Kenneth Davidson and President John La Tourette. Not present was Trustee George Moser. Noting the presence of a quorum, the meeting proceeded.
 

We have a very busy and exciting agenda today, Chair Sanchez stated, and Committee decisions which will impact the campus organization's form and function for many years to come. He said the Committee would receive reports and presentations on NIU Naperville and Phase II of the Stevenson Towers renovation. The Chair interjected that those who had not seen the results of the Phase I renovation owed it to themselves to see it as the Board had because it was magnificent. Also on the agenda was the consideration and approval of all student fees; out-of-state tuition for Academic Year 1999-2000; several other annual renewal contracts such as the Huskie bus system, student insurance and sports camp contracts; capital projects, including the campus Child Care Center budget revisions and the Holmes Student Center roof replacement; service contracts and purchases, including copier services, the NIU Foundation Professional Services contract and computer laboratory equipment. Also, budgetary matters such as Fiscal Year 2001 budget guidelines were to be discussed. The convocation center project will be presented in its entirety, Chair Sanchez said, including conceptual design, contractual development approval and the funding package.

Chair Sanchez then recognized UAC Representatives Andy Small and James Lockard. Both Mary Crumbacher and Darlene Vogeler, retiring Finance Department employees, were also recognized by the Chair and commended for their years of service to NIU. He thanked them and wished them good luck in their retirements. The Chair also recognized Ms. Kinga Mauger, Northern Illinois University's new Bursar.

I would like to say that we, the Trustees, have gone through a rather dramatic time, Chair Sanchez said. Until legislation was signed on an interim basis by the Governor, the Board was limited to three members. I am pleased to say that has been addressed and it is my understanding that there is consideration now being had in Springfield on reappointments and new trustee appointments for the Board. But in the meantime, Chair Sanchez stated, as the chair of this committee and one of the honored trustees, I can assure you that Northern Illinois University continues in a very solid way, both fiscally and academically. Lastly, I want to just state that I hope all of you realize what a treasure we have here in DeKalb. It will be our pleasure and privilege to try to make it grow, Chair Sanchez said, and see it continue into the next century with the kind of positive development that we have seen in this 20th Century. It will be my pleasure to participate in the continuation of that agenda along with the other Trustees for at least two more years.

Mr. Bohenek expressed his thanks on behalf to the Jenkins Group in Itasca and said they were very pleased to have been selected to design the new facility in Naperville. They are through the design development process and into construction documents. He said the facility would be located south of the I-88 East-West Tollway. The approach to the facility will be off the main interchange at Naperville Road, south less than a quarter mile to Diehl Road, and west to the site. It would be located between Naperville Road and Washington Streets with the main access off of Diehl Road. The facility site is surrounded by a commercial office development on three sides with some residential properties to the south. There is also a secondary access on the east end of the site. The building location was selected to maximize its visibility on Diehl Road as well as from I-88. Mr. Bohenk went on to describe some of the main features of the facility itself, such as the presence of storm management retention and detention ponds; a terrace off the main lobby for use by students, faculty and others using the facility; signage at the corner of Diehl Road and the main entrance; a turnaround at the main entry point and parking for buses.

Mr. Bohenek said the facility is in the shape of what is called a hinge, or an L-shaped building, with access at the hinge point. Some area has been left open for future expansion to accommodate either one- or two-story additions to the facility. Naperville has some requirements for landscaping, and NIU has met all those requirements. There will be a two-story lobby space with glass at both ends so that the lake and terrace areas are visible all the way through the lobby. The building would contain NIU offices, a reception counter, a learning resource center, the Business and Industry Services facility, a tenant space, some classroom spaces, a 185-seat auditorium and a BIS lab. There is a multipurpose room of approximately 4,500 square feet, which is divisible into three classroom spaces. This room is surrounded by glass on two sides, allowing a view of the pond and the terrace. The BIS lab is off the main multipurpose area corridor. There will also be a large ornamental stair in the facility for easy access to the second floor, and an elevator will be located off the main lobby. The second floor will contain the North Central Regional Educational Consortium (NCREL), which will occupy an area of approximately 30,000 square feet; common areas with lounge seating areas; six breakout rooms for meetings before and after classes; and four tiered classrooms. It is a little bit unusual to have tiered classrooms on the second floor, Mr. Bohenek said, but we will be building a level second floor, and adding the tiers so that in the future those tiers can be removed and the configuration of the rooms changed. Ceiling heights will be ten feet rather than the normal eight. 

Mr. Bohenek showed slides on the conceptual elevations. The building will have a two-story lobby in the main entrance area and an arched roof. The lower level façade of the building will have a brick face construction with precast and mostly glass on the second floor. We have tried to create a very open, very light facility, Mr. Bohenek said, which we hope is going to work well for all the different uses going on inside.

Chair Sanchez asked if the open, airy design would create any heating or air conditioning issues. Mr. Bohenek explained that some of the glass areas were not actually vision glass areas but spandrel glass, which has insulation behind it. However, from the outside, the spandrel glass will make it look like full height glass. Mr. Bohenek said that opening has been set for the start of classes in the fall of the year 2000.

Dr. Williams recognized the work of Ms. Beth Simmons, who is the Project Manager for NIU Naperville. He said they are presently working with the Naperville Plan Commission and the City Council to obtain the final approvals of the site plan, the elevations and the total program for the facility. Dr. Williams said though it is a very aggressive target, they are on target for occupancy of the facility within a year. The university will keep the Board updated. Board Chair Boey asked about the possibility of a second exit from I-88. Dr. Williams said that in a conversation with the City Manager of Naperville, he was assured that a second exit was on the agenda. It is part of a multimillion-dollar road improvement effort by Naperville in conjunction with IDOT and the Tollway Authority. Dr. Williams thought it possible that the extra interchange from I-88 to Diehl Road might be completed around the same time the NIU Naperville construction was completed.

Agenda Item 6.b. - Stevenson Towers Renovation - Phase II 
Phase I construction, which provided the total renovation of Stevenson Towers, has been completed. As indicated by Chair Sanchez, this has turned out to be a very successful project. Moving forward with the second part of the renovation, which includes the south towers, Dr. Williams said, we have the same challenge that we met with Phase I. The Phase I base bid included the total renovation of one tower plus another five or six floors, improvement to the other tower with a full redesign into suites and other improvements. For Phase I, the Board budgeted additional dollars in order to maximize and to do as much of the hard-core construction as possible. Both towers and the central core of the building were completed through a revised budget. After having received the bids for Phase II, Dr. Williams stated, we are faced with the same challenge. Instead of moving forward with adding to the budget when we really do not have the resources, Dr. Williams said, we are recommending to the Board, as we did to the Housing staff, that we utilize the existing resources and time the purchase of equipment and furnishings so that we can utilize the full budget to do all of the hard-core construction. Occupancy would have to be delayed to Spring 2000, but the hard-core construction would be done when the contractors are there. Right now, Dr. Williams said, we have the best possible price to do that construction. The furnishings and equipment can be purchased as the resources become available, both from the construction fund and from the existing and projected reserves. This plan met with the approval of the Director of Housing and Provost Moody. In response to a query from Trustee Grans, Dr. Williams said that deferring the purchase of furnishings and equipment should not impact a Spring 2000 move-in for students.

Agenda Item 6.c. - Fiscal Year 2000 Operations and Grants Budget Recommendation Update
Dr. Williams asked Ms. Kathy Swanson, Executive Director for State and Federal Relations, to give an FY00 Operations and Grants Budget update. Ms. Swanson said the budget was in a state of flux. She briefed the Board on the action that has been taken on the specifics of NIU's FY00 budget thus far by the Governor's Office and the Senate. The IBHE recommended a very generous budget for public higher education, giving the overall state budget an approximate 7.5% increase over FY99 funding levels. The Governor's Office, when faced with making the budget numbers work in light of competing priorities, presented a revised budget in the Governor's February address. This budget lowered the IBHE's recommendation by about $31 million to an approximate 6.2% increase for all of public higher education, Ms. Swanson said, which was still a very generous increase for higher education. The Governor's level as it related to NIU's budget resulted in about a 1.6% decrease, which left NIU's increase for FY00 at about 4.8%, again, still a very good budget for the university.

We went into the legislative process then, Ms. Swanson said, and are probably about 40% of the way through that right now. The Senate held appropriation committee meetings and then made some adjustments on Friday, March 26, to all of the university budgets prior to adjourning for a two-week Easter recess. In a departure from previous patterns of legislative action on the budgets, the university budgets are all being considered in separate bills this year instead of as a package. This has occurred because of a "single subject" rule by the Supreme Court, which states that they feel it is unconstitutional for the legislature to put too many types of issues on one bill.

Additionally, in the Senate hearings it became evident that their priorities were strictly on university staff salaries and deferred maintenance, Ms. Swanson said, issues that they have been hearing from public higher education for several years now. In Senate action Friday, April 16, they shifted a lot of university funding from the undergraduate education initiatives and other program activities into salaries — the recruiting and retaining line of critical faculty and staff — and the deferred maintenance line. They made a significant increase in the university's deferred maintenance line, quadrupling it. However, in doing so, they defunded all new program initiatives and all undergraduate education initiatives. In addition to that, they lump-summed our budget, Ms. Swanson said, which is, again, a very significant departure from what has been done in the past. I do not know whether that issue will stand when we go before the House Appropriations panel when the House convenes in the next two weeks, she said, but right now, all of the higher education budgets are lump-summed into a single amount of money. Northern Illinois University's is $106 million in state appropriations out of the General Revenue Fund that is appropriated to the NIU Board of Trustees to be used for authorized expenditures under law.

They have taken out the categories for funding. The money they put into the deferred maintenance line was taken from the undergraduate programming and other programming activity lines. Right now, as Senate action stands, they reduced NIU's increment by $367,400. It was a 0.3% increase, which was very low compared to many of the other universities, Ms. Swanson said, and it brings our total increase for FY00 to 4.5%, which is still a very good budget increase for us. Again, we do not know exactly what is going to happen in the House, and this is by no means the end of the discussions. With the new Governor, many new legislators and the single subject rule all thrown into one, Ms. Swanson said, the budget is a very interesting process this year.

The Senate also made a few changes to the higher education capital improvement list forwarded by the IBHE. The good news, Ms. Swanson said, is that the Hoffman Estates Education Center expansion funding has maintained its position throughout the Senate process so far and will be funded at $1.3 million for planning funds. The Senate eliminated capital funding for the University Center of Lake County, which was an initiative of the Board of Higher Education. They also are looking at the University of Illinois College of Medicine Research building, which was funded at $43 million in the higher education budget. It is possible that this item will also be taken off the budget because of its size and be dealt with as a separate issue; however, Ms. Swanson believed it possible that the project would be funded in some capacity this session. All other issues in the capital list put forward by the IBHE maintained their positions. 

Agenda Item 8.a. - Legislative Report
Ms. Swanson talked about two other substantive bills that impact NIU and have seen some success this session. The first was a bill introduced in amendment form sponsored by Representative Bugielski from Chicago about two and a half weeks ago. He submitted an amendment in an executive committee that would eliminate the tuition waivers for the children of university employees. This was a problem, not only for NIU employees, but for all university employees. Ms. Swanson notified the proper parties on the faculty, the civil service and the operating staff councils about this bill. She thanked everybody at Northern for responding quickly and professionally. Andy Small, particularly, worked very hard in coordinating a very successful petition drive in which over 1,500 signatures were collected. I met with Representative Bugielski several times over the course of the last two weeks, Ms. Swanson said, and I think that, in large part, based on the reaction he got from the people of NIU, he agreed to hold the bill and not call it for a vote because he realized the dramatic impact it would have on people. I want to thank Andy Small, particularly, the Board and everyone who signed those petitions, she said. We coordinated the effort well, and I really appreciate that grassroots support because it makes my job a lot easier, Ms. Swanson said, and it really works very well because the message is, we are all in tune.

The other issue Miss Swanson discussed was the procurement reform. The legislation that NIU sponsored last year and agreed to hold in the Senate, passed out of the House. They agreed to hold it in the Senate for inclusion in a larger procurement package, and then the package fell apart. That legislation was initiated again. We met with unqualified support in the Senate, Ms. Swanson said, and were able to move it out on a unanimous vote of 56 in the Senate. It has now passed to the House and has been assigned to the executive committee. We are working with Speaker Madigan and the leadership of the executive committee to see that it receives a fair hearing and will continue to move through the process, Ms. Swanson said, which is encouraging. The overall cleanup package on the procurement initiative seems to be stalled at this point, so there are very few procurement initiatives, but NIU's is one of those that are out there and moving right now. Ms. Swanson said she thought there was a good chance of its being passed this session and finally getting some relief for NIU's Continuing Education programs.

Chair Sanchez also thanked Andy Small and all of those "grassroots supporters" who went to Springfield for NIU Day on February 22, and seeing firsthand, with fellow Trustees and other staff members, what a relationship this university has with the legislators in Springfield. It was very impressive, he said, and in no small part because of the personal relationships that Kathy Swanson has built up on our behalf with the legislators, both in the House and the Senate. I can assure you that even when they talk about a 4.5 percent net increase budget, Chair Sanchez went on, that is very significant. And I think my fellow Trustees would concur that we would not have that kind of potential impact but for the wonderful job that Kathy and her staff do on our behalf.

Commenting on NIU Day in Springfield, Board Chair Boey said that throughout the day, many people came up to tell him and the other Trustees what a wonderful job Kathy Swanson was doing. At the end of the day, the Board Chair laughed, I was convinced that the only reason Kathy set an NIU Day is so that there could be a day when we were all together to hear what a wonderful job she is doing. But, that is well deserved, he said, and NIU Day was a day that made us all proud. We are all given assignments by Kathy Swanson even before we step into the Capitol Building to see all the representatives in the legislature. He said that in every office they entered, they were greeted by the secretary and a bowl of candy with NIU across it on their desks. Board Chair Boey complimented Athletic Director Cary Groth on the cheerleading group that, very early in the day, had gone through the entire Capitol Building handing out those little bowls of candy. So, when we showed up, he said, it was all sweet and honey, and I wanted to add onto that flavor that even our students participated heavily. The cheerleading groups and the jazz band did a wonderful job in representing the image of the university. While the jazz band was playing, and even at the reception, Board Chair Boey said, the cheerleading group performed on a marble or concrete floor. Every time they tossed those young ladies up in the air, he said, we were all wondering if and hoping that they would catch them when they came down. But it was a proud day we had, the Board Chair said, and Kathy, thank you for setting it all up, even though we know that it also should be known as the "NIU Kathy Swanson Day."

Agenda Item 6.d. - Periodic Summary Report of Transactions
In accordance with Board of Trustees Regulations, the university provided a report of transactions in excess of $100,000, but less than $250,000, which can be approved by the President. There were six such transactions for a total amount of $966,075.

These recommendations for FY00 include a 2.45% overall increase in student fee rates, Dr. Williams said. This is exceptional in that it is lower than would have normally been projected if all of the facets involved with the student fees were considered, including the salary increases projected for FY00. There are several contracts that are a part of the fee recommendations, including the bus fee and the student health fee. Contract-driven costs are still included in this overall 2.45% increase. As you also will recall, when the Board approved the improvements to our West Campus, those improvements came through a bond offering, which was supported by a fee plan that was phased in over several years. That increase for FY00 was one dollar, and has already been approved by the Board and this Committee. In reporting the full procedure for FY00 to the Board, Dr. Williams said that not only was the 4.4% overall increase included in the recommendation for action, but the previously approved one dollar increase was also included. The combined package still represents a 4.4 percent overall increase. The university requested Committee approval of the recommended FY00 fees.

Board Chair Boey asked where the 4.4% increase in the level of the fees placed NIU among the other public universities. Dr. Williams said that NIU was very competitive in that regard because NIU offers several services that other institutions do not offer. For example, he said, NIU has the fifth largest transit system in the state of Illinois through its Huskie Bus system. Most universities do not have a bus system, but it is part of NIU's fee structure. The other thing is that NIU has a fairly elaborate health center operation as well as a health insurance program. These are not generally available at most other campuses. So, when you take those into consideration, Dr. Williams said, we are not the highest in the state, nor are we the lowest; but we offer services that are very unique to our campus and for our students.

President La Tourette said he thought the staff and students had worked very hard to hold down these increases. For example, there was only slightly over a one percent increase in the bus fee and a less than two percent increase in the student health insurance. I think we have had a very good experience of working with staff and students to determine what our needs are, the President said, and have come up with recommendations that are very favorable for keeping costs down. Melanie Magara and her staff looked at the costs of the Mid-American Conference institutions at the request of President La Tourette. The Mid-American Conference consists of universities that are very similar to NIU, and includes Miami of Ohio, Ohio University, Kent State, University of Akron, Bowling Green State University, University of Toledo, State University of New York at Buffalo, Ball State University in Indiana, and the three regional schools in Michigan — Eastern, Western and Central Michigan. All costs, such as tuition, fees, room and board rates, incidental expenses and so forth were compared. Northern Illinois University is ninth among the thirteen schools in the Mid-American Conference. I think that is a good measure to look at, the President said, because in some cases we are a little higher on fees, but our tuition rate is a little lower, and we are substantially lower on the room and board rates. So, he said, we compare favorably against institutions on our peer list as selected by the Board of Higher Education.

I just wanted to add that I was a member of the Student Fee Committees last year, Student Trustee Sosnowski said, and know how well they work with the administrators and students sitting down at the same table and going over every aspect of the fees. And I know the process worked just as well this year, with Student Association President Joy Molano and her appointed student representatives. Many universities do not have a process that even comes close to what we have, he said. Here students really have the ability to sit down, discuss every aspect of every fee, question everything and come back with proposals. I just wanted to add that under the bond facilities, Student Trustee Sosnowski said, there was a session with the Holmes Student Center that was actually a student initiative. Last year, students recognized a need in the Holmes Student Center for some renovation in the café area. They took it to the committee and the committee worked together on a proposal that would allow us to add a couple of extra cents per hour to renovate the café area. The process, on the whole, really works well, and it puts NIU in a good light as far as its relationship with students, he concluded.

Dr. Williams said Student Trustee Sosnowski had accurately described the situation. It is refreshing to see our students not only concerned relative to the costs on their own specific agendas relative to the activity fee, he said, but for them to look at the Holmes Student Center, see what needs to be done and then respond to that by actually putting it on the table and requesting that those improvements be made is a very mature position and action on the part of the students. We certainly appreciated their support on this matter, Dr. Williams said.

As a Trustee myself, Chair Sanchez commented, the synergies from the cooperative efforts of the faculty, the staff and the students have been very obvious to us from the time that we took office, and it continues. It is only if all three parts work in unison for the better good, opposed to our individual needs, that this will continue so.

Chair Sanchez asked for a motion to approve the FY00 fee recommendations. Board Chair Boey so moved, seconded by Trustee Grans.

A roll call vote of the Trustees was as follows: 

Trustees Susan Grans          Yes   
Chair Manuel Sanchez          Yes 
Board Chair Robert Boey      Yes

The motion was approved.

Agenda Item 7.b. - Fiscal Year 2000 Room and Board Rate Recommendations
These fees were established through a full participatory process, Dr. Williams stated, including the Residence Hall Association and the Director of Housing, Mr. Michael Coakley. The rate increases reflect a 6.7% increase for board and an average 4.25% increase for room rates. Dr. Williams reminded the Committee that these resources are used to support salary increases for the upcoming fiscal year as well as improvements to the residence halls themselves. Also included is a reflection of the rate change, which results from the improvements to Stevenson. He stated that this recommendation came from a representative group, and the President concurred. The university recommended Committee approval of this item. Chair Sanchez asked for a motion to approve the FY00 room and board rate recommendations. Trustee Grans so moved, seconded by Board Chair Boey.

A roll call vote of the Trustees was as follows: 

Trustees Susan Grans         Yes    
Chair Manuel Sanchez  Yes 
Board Chair Robert Boey  Yes

The motion was approved.

Agenda Item 7.c. - Fiscal Year 2000 Out-of-State Tuition Recommendation
Last year the Finance and Facilities Division provided the institution with an analysis showing that instructional costs supported by tuition had increased in percentage. Historically, as far back as the seventies, Dr. Williams said, it was believed that tuition should provide approximately 33%, or one-third, of the total cost of instruction. But over the years, because state resources have been very tight and unable to keep up with inflation and the needs of the institution, tuition rates increased at a much higher rate. In our first analysis, he said, we were able to establish that, in fact, in-state students were paying approximately 45% to 50% of the total cost of instruction and not the targeted 33%. At that point, the Board approved changing the out-of-state rate from 3:1 to 2.5:1. In other words, out-of-state students would pay 2.5 times the in-state rate. The Board also authorized the university to take another look at this matter during the current fiscal year. Dan House and Institutional Research personnel made that analysis. The analysis, again, supports the fact that NIU's in-state rate is well over 50% of the total cost of instruction. Therefore, the university recommended that the Board approve out-of-state rates at two times the in-state rate. Other public universities in the state have made similar reviews and changed their rates from 3:1 to 2:1. Board approval was requested for the new out-of-state tuition rate 2:1. Trustee Grans commented that this was an area of interest to her because she thought all recruitment and marketing of the university outside the northern Illinois area — being able to reach into Indiana and Wisconsin and advertising nationally to make sure the university is known in the MAC Conference and throughout the nation — only boded well for the future. I was glad to see it on the agenda as part of the follow-up, Trustee Grans said, and the continual due diligence the university does to make sure that we remain competitive. In answer to a question from Student Trustee Sosnowski, Dr. Williams stated that there had been a modest increase in interest from out-of-state students since the 2.5:1 rate was implemented; however, because the university had not gone through a full marketing rotation since the change it was too early to tell, but he felt that over the next few years the university would see a marked interest.

In reference to Trustee Grans' mention of marketing the university, Chair Sanchez said he had seen Northern Illinois University being promoted on MSNBC cable network news at a time when there was a focus on some unfortunate events in Washington, DC. However, it was great for NIU because the viewership was quite high, he said, and I think it is just a beginning for this public relations position we have taken to share the treasures we have here in DeKalb with not just the immediate community, but the state and the region while being fiscally responsible and not giving any competitive advantages to any of the other higher education institutions.

Chair Sanchez asked for a motion to approve the 2:1 out-of-state tuition rate. Trustee Grans so moved, seconded by Board Chair Boey. 

A roll call vote of the Trustees was as follows: 

Trustees Susan Grans         Yes    
Chair Manuel Sanchez  Yes 
Board Chair Robert Boey  Yes

The motion was approved.

Agenda Item 7.d. - Huskie Bus Contract - Fiscal Year 2000 Contract Renewal
The university requested renewal authorization to award a contract for FY00 in accordance with the original bid to ACT/VANCOM Transportation. This is the third year of a four-year contract for Huskie Bus services. There are no substantial changes in the contract, Dr. Williams said, therefore, we ask Committee approval at this time. Chair Sanchez asked for a motion to approve the FY00 Huskie Bus contract renewal. Board Chair Boey so moved, seconded by Trustee Grans.

A roll call vote of the Trustees was as follows: 

Trustees Susan Grans         Yes    
Chair Manuel Sanchez  Yes 
Board Chair Robert Boey  Yes

The motion was approved.

Agenda Item 7.e. - Student Accident and Sickness Insurance - Fiscal year 2000 Contract Renewal
This is also the third year of a four-year agreement. There were no substantial changes in this item, and, as in last year's request, it was not to exceed $4 million. Committee approval was requested. When Trustee Grans inquired why it was necessary to approve the renewal of these contracts every year when they are four-year contracts, Dr. Williams said the university is allowed to contract only one year at a time. Chair Sanchez asked for a motion to approve the student accident and sickness insurance FY00 contract renewal. Trustee Grans so moved, seconded by Board Chair Boey.

A roll call vote of the Trustees was as follows: 

Trustees Susan Grans         Yes    
Chair Manuel Sanchez  Yes
Board Chair Robert Boey  Yes

The motion was approved.

Agenda Item 7.f. - Printing Services Copier and Controller System - Fiscal Year 2000 Contract Renewal
This is the second year renewal of a three-year contract for printing services, copiers and the controller system (debit cards, credit cards and coins). This contract includes all equipment, toner and full maintenance and covers approximately 220 copiers. Again, there is no substantial change in this item compared to last year, Dr. Williams said. Chair Sanchez asked for a motion to approve the renewal of the FY00 contract renewal for Printing Services. Board Chair Boey so moved, seconded by Trustee Grans.

A roll call vote of the Trustees was as follows: 

Trustees Susan Grans         Yes    
Chair Manuel Sanchez  Yes
Board Chair Robert Boey  Yes

The motion was approved.

Agenda Item 7.g. - Fiscal Year 2000 NIU Foundation Professional Services Contract
The professional services contract between NIU and the NIU Foundation is pursuant to state statute and the desire of the state to have a separation between the Foundation and the institution, Dr. Williams explained. This contract provides resources in support of the fundraising activities of the Foundation, which, in turn, will provide resources back to the university in support of university programs and students. The university asked Committee approval of this contract. Last year was a banner year for NIU Foundation fundraising, Chair Sanchez remarked, and it was in no small part because of the talented people and staff who are working to raise money for NIU. The Chair then entertained a motion to approve the FY00 NIU Foundation professional services contract. Trustee Grans so moved, seconded by Board Chair Boey.

A roll call vote of the Trustees was as follows: 

Trustees Susan Grans         Yes    
Chair Manuel Sanchez  Yes
Board Chair Robert Boey  Yes

The motion was approved. .

Agenda Item 7.h. - DuSable Hall - Performance Contract 
Pursuant to Public Act 90-486, the state legislature allows the universities to enter into performance contracts for certain types of energy-related projects as long as they are totally reimbursed or paid for, including all financing costs, through the savings generated by the project up to a ten-year recapture term. Many institutions are pursuing this on a very large scale, however, we at NIU felt we should first see it in action and get a taste and feel for how it works. Before you is an improvement for DuSable Hall, where we have done several renovations, Dr. Williams said. This improvement project would replace all of the lighting in the classrooms, replace the ceiling materials and provide some other improvements such as outside air dampers and variable speed drive motors. It would be under a performance contract that runs over a ten-year period. The program savings are approximately $577,000. The cost of the plan is about $520,000. Per the legislation, Dr. Williams said, the vendor must guarantee the savings, so that the university and the Board are not exposed on this issue at all. It is the vendor's risk and their responsibility to document the savings in order to pay off this debt. Dr. Williams said the university will monitor this project, and, perhaps in later years, there may be substantially more projects of this type. The university asked Committee approval of the DuSable Hall Performance Contract. Trustee Grans so moved, seconded by Board Chair Boey.

A roll call vote of the Trustees was as follows: 

Trustees Susan Grans         Yes    
Chair Manuel Sanchez  Yes
Board Chair Robert Boey  Yes

The motion was approved.

Agenda Item 7.i. - Athletic Sports Camps Housing and Meal Expenditure - Fiscal Year 2000 Authorization
This is a contract for room and board for students, primarily high school students, who come to NIU's basketball, soccer, cheerleading and other camps. In years past, a private establishment has been utilized to provide this service. This item allows the university to utilize its residence halls and services. This is something we have wanted to do for several years, Dr. Williams said, and I know Trustee Grans has made that point to us. So, this year we are making a move to have the camps housed and fed through our own facilities. Committee approval of the athletic sports camps housing and meal expenditure item for FY00 was requested. Chair Sanchez asked for a motion. Trustee Grans so moved, seconded by Board Chair Boey.

A roll call vote of the Trustees was as follows: 

Trustees Susan Grans         Yes    
Chair Manuel Sanchez  Yes
Board Chair Robert Boey  Yes

The motion was approved.

Agenda Item 7.j. - Academic Computing Services Student Computer Lab Computers
This item provides for additional computers to be supplied to the computer labs as well as academic departments and several classrooms. Academic Computing Services provides computers for our labs. Those computers need to be upgraded. Everyone knows how fast the technology is changing, Dr. Williams said, and at an educational institution, it is critical that students are allowed to have the most recent and up-to-date equipment. This is a lump sum, Dr. Williams said, and my understanding is that this authorization provides for 263 such computers at a price of approximately $460,000. In answer to a question from Trustee Grans, Dr. Williams replied that state law does not allow the university to simply dispose of the old computers. There are property control regulations that require this equipment to be handled through Central Management Services. The university requested Committee approval of the academic computing services student computer lab computers item. Chair Sanchez asked for such a motion. Trustee Grans so moved, seconded by Board Chair Boey.

A roll call vote of the Trustees was as follows: 

Trustees Susan Grans         Yes    
Chair Manuel Sanchez  Yes
Board Chair Robert Boey  Yes

The motion was approved.

Agenda Item 7.k. - Holmes Student Center - Roof Replacement
The university will combine two roof projects that cover approximately 48,000 square feet of roofing in the southeast and southwest areas of the center. It seems prudent to combine them into a single project, Dr. Williams said, both in terms of the economy of scale and having one company do all of the work at one time. The university requested Committee approval to consolidate these two projects under a budget of $445,400. Trustee Grans made the motion, seconded by Board Chair Boey.

A roll call vote of the Trustees was as follows: 

Trustees Susan Grans         Yes    
Chair Manuel Sanchez  Yes
Board Chair Robert Boey  Yes

The motion was approved.

Agenda Item 7.l. - Campus Child Care Center Budget Revision
The campus Child Care Center budget was revised after receiving estimated construction costs for the project. It is an expansion of the existing childcare activities on campus in answer to the needs and requests of NIU students and staff. In looking at the bids, we were $209,000 over budget, Dr. Williams said, and that did not include the Child Development Laboratory, which is an academic unit. The decision was made not to pursue the Child Development Lab and only cover the Child Care Center. Under this scenario, he said, the $209,000 will be realized through interest earned on university construction funds, and we will also have to look at our bond reserves. We looked at the program, Dr. Williams said, and it did not seem feasible to cut it back. The university asked Committee approval of the $3.3 million amended budget. To answer a question from Chair Sanchez, Ms. Chris Herrmann, Director of the Child Care Center, stated that the Center would be able to care for approximately 200 children compared to the 40 that are now served.
Chair Sanchez asked for a motion. Board Chair Boey so moved, seconded by Trustee Grans.

A roll call vote of the Trustees was as follows: 

Trustees Susan Grans         Yes    
Chair Manuel Sanchez  Yes
Board Chair Robert Boey  Yes

The motion was approved.

Agenda Item 7.m. - Fiscal Year 2001 Budget Guidelines
The FY01 budget would become effective July 1, 2000. The guidelines continue the university's effort to upgrade and support salaries with a 5.5% recommendation for salary increments, a 4% general price increase, 5% for fire protection, 10% for the library, $4.8 million in program initiatives and support, and $3.5 million in nonacademic program improvements. Included in that are dollars for deferred maintenance, which has become a major issue. As you know, Dr. Williams said, these guidelines will be modified and reduced at various approval levels. So, there is a very high probability that the percentage increases in this recommendation will meet with several revisions before the implementation date of July 2000. The university requested Committee approval of these guidelines.

In answer to a question from Trustee Grans regarding deferred maintenance, President La Tourette said the amount that has been allocated by the Senate, $1.58 million, is close to the figure requested by the university for FY00 (July 1, 1999 through June 30, 2000), and that request will be repeated for FY01 (July 1, 2000 through June 30, 2001). In effect, the President said, the Senate recognized that the universities had been raising the issue of deferred maintenance for some time and that the IBHE recommendations were always substantially lower than the need indicated by the universities. They decided to give priority where they thought it was needed and reallocated funds in order to cover the needed deferred maintenance dollars. So, I think this item will receive more attention in the future, the President said, and we may have to work with the Board of Higher Education on how this item along with all the other items of urgent need will be presented for this FY01 budget. Kathy Swanson explained that the Senate arrived at the $1.58 million figure, as the President said, by giving an 8.3 percent allocation of the total which they felt was necessary to spend on deferred maintenance in order for the universities to make a dent. Collectively, there is over $750 million identified in deferred maintenance needs across the state at just the university level, and the Senate felt that $19 million could be allocated to them. So of that $19 million, each university received 8.3 percent, which is the percentage at which we were funded in the total amount the Board of Higher Education had identified available for deferred maintenance.

Board Chair Boey commented that the university had received some satisfaction in the income fund not being included in the budgetary guidelines. However, he said, having to include Medicare year in and year out as a part of the percentage of our guideline increases does not seem fair because it makes a very definite impact on the university's allocated funds. It is nice to hear about a 5% increase, the Board Chair said, but if one percent goes to Medicare, effectively, the university only receives about 4% because Medicare is a nonnegotiable item. Dr. Williams agreed with him, but said that Medicare is an unfunded mandate similar to the sick leave policy mandate. It was a good idea, but there were no resources or dollars allocated or appropriated to help meet those needs. At this point, we have to pay it, he said, and it is a drain on the budget. So, NIU reallocates internally, which means that some things we need to do cannot be done because we have to meet the Medicare bill. We have tried to make the point, Dr. Williams said, and each year it just seems to slide off the table, but we continue to make the point.

Chair Sanchez asked for a motion to approve the Fiscal Year 2001 Budget Guidelines. Board Chair Boey so moved, seconded by Trustee Grans.

A roll call vote of the Trustees was as follows: 

Trustees Susan Grans         Yes    
Chair Manuel Sanchez  Yes
Board Chair Robert Boey  Yes

The motion was approved.

Convocation Center and Recreational Facilities Projects

Agenda Item 7.n.(1) - Evans field House Remodeling Project
After 30 years, Dr. Williams said, we are prepared now to move forward with specific recommendations to the Committee and to the Board regarding the Convocation Center. The President presented to the Board of Trustees in December the challenge of meeting three major issues in the near future. Those three issues were the need for more campus recreation, for more campus parking and to address Title IX proportionality and equity requirements. The university decided that adding women's track would be an efficient way to meet the requirements regarding Title IX. The Board then charged the institution to look at ways in which these three issues might be resolved, particularly in light of the need for a Convocation Center. At the January meeting, the Board was presented with a general plan which provided for addressing these three areas through the renovation of Evans Field House and the development and construction of a Convocation Center which would have parking and include a track. The Board requested that those concepts be refined by continuing to work with a development team headed by Prime Group which was giving advice and developing general concept plans for this project, and to engage the services of a site planner, JJR Incorporated, to give some direction on an appropriate site for this facility.

The Board also requested that the institution seek advice and comments from the university community regarding this project and to bring the proposal back when the budget was established and the concept matured for final Board action. I am pleased today to report to you that we are prepared to do that, Dr. Williams said.

The approvals were divided into three specific action items. The second item deals with approval of the conceptual design, Dr. Williams said, and at that point, I will ask members of Epstein Architect Associates, who have been working on the conceptual design of the convocation center, to give a short presentation.

The first part of this proposal addressed recreation. A committee of users, including student leaders and the Student Trustee, worked with John Sweeney to develop a comprehensive recreation program for the campus, which could not be satisfied by just adding the Field House to the recreation inventory. We needed a coordinated program that was efficient, that would eliminate duplication, and that would provide the most effective, efficient operation possible with the most opportunities for students. Such a plan was worked on and developed conceptually. Once the plan was completed, Dr. Williams said, we sought firm price estimates, so we could devise a way to finance those improvements. Dr. Williams handed out copies of the Field House renovation plan to Board members, copies were made available to the media, and the plan was placed on NIU's web site and displayed on boards throughout the campus. Basically, the improvements include removing all but the north bleachers, totally removing the floor and replacing it with a synthetic floor that would have different finishes to accommodate areas for indoor hockey, indoor soccer and two basketball courts. The Outing Center would be moved into the facility so that the canoes and outdoor materials could be stored and distributed from the Field House. Space would also be available for sports clubs, aerobic activity, and a golf practice and putting area. There would be locker rooms, a cardio weight room and equipment distribution. There is a plan to provide an upgrade of the office space in Evans Field House that is now occupied by Physical Education and to maintain the classrooms they use in support of their health programs. This plan met with the full support and enthusiasm of the Chairman of the Physical Education Department and our Provost, Dr. Williams said. It does significantly increase recreation space, providing additional opportunities for NIU students that we do not otherwise have space to accommodate such as indoor soccer and roller hockey, and those additional high-demand activities such as basketball and weight room facilities, for which we simply cannot meet demand. Due to the current heavy use of Evans Field House, these improvements cannot occur until after the construction of the Convocation Center.

Dr. Williams said that Board approval is sought at this time for several reasons. One, in determining the budget and what improvements to make, Dr. Williams said, we are very pleased to report that these improvements can be completed within the existing fee structure, so there will be no need to increase student fees in order to realize these recreation improvements. Also, by obtaining Board approval now, the students are assured that the improvements listed in this overall comprehensive plan will be pursued because it has Board approval, and all authorizations necessary to move forward with the project as soon as the Convocation Center is completed have been secured. Board of Trustees approval was requested to establish a $2.25 million budget for the Evans Field House project, permission to identify architectural and engineering services, receive and award bids, and enter into any other agreements associated with these improvements. Chair Sanchez asked for such a motion. Trustee Grans so moved, seconded by Board Chair Boey. The motion was approved.

Trustee Grans asked if the $2.25 million budget amount would change since the project would not begin for two years. Dr. Williams replied that in anticipation of that possibility he had asked his staff to include escalations in the projected cost of the construction. Clearly, I cannot guarantee future costs, he said, but I think we have sufficient resources coming into our reserves so that if we have to, we could marry the funding over two fiscal years so that we can cover it from one; if not, the payments can be completed out of the other fiscal year.

Another question from Trustee Grans was whether there were any life safety or other issues to be addressed if the renovation is done. Dr. Williams answered that the university is required to upgrade a facility to meet all codes whenever it does a major renovation, so this plan will include all accessibility requirements and so forth that have to be met.

Given the dramatic increase in and sensitivity to physical fitness, Chair Sanchez said, to augment the present recreational facility with this kind of facility would not just be a terrific additional asset for the students, but I think that faculty and staff would also find this to be a tremendous and dramatic improvement on those kinds of facilities.

A roll call vote of the Trustees was as follows: 

Trustees Susan Grans         Yes    
Chair Manuel Sanchez  Yes
Board Chair Robert Boey  Yes

The motion was approved.

Agenda Item 7.n.(2) - Conceptual Design and Development Agreement
Dr. Williams introduced members of the Epstein Architectural firm who have been involved in the conceptual design of the Convocation Center. These men worked on the design over the Christmas holidays and some cancelled trips in order to help us get to this conceptual stage, Dr. Williams said. He then introduced Thomas Scheckelhoff, Andrew Metter and Dean Mamalkis. Dr. Williams asked Mr. Scheckelhoff to begin the presentation on the Convocation Center concept design.

Mr. Scheckelhoff said that in conjunction with the team that Dr. Williams mentioned — JJR as the master planner, Prime Group as the development manager, and Turner Construction as contractor — they spent the last three months vigorously working on the conceptual plan. He then presented the master plan. The Convocation Center is located west of the athletic facilities and residence halls in the new West Campus area slightly north of Lincoln Highway. The ultimate plan is to purchase the ministorage facility on Lincoln Highway in order to build the main entrance to the Convocation Center, a dual entry roadway on axis with a retention pond as the major focus of the arena portion of the development. There would be parking for 3,000 cars, which would not only serve the Convocation Center, but would provide additional parking for the remainder of the campus. The Convocation Center would join the campus walkway system in an extension directly from campus into its main lobby. In answer to a question from Board Chair Boey, Mr. Scheckelhoff said the center sat back approximately 1,500 to 2,000 feet from Lincoln Highway, so there was plenty of land in between to do something else in the space between the Center and the highway. The initial phase envisions using an existing right of way that goes behind the ministorage area so that the center can be wholly operation without purchasing the ministorage, Mr. Scheckelhoff said. However, it would certainly be an improvement if that area can be acquired and developed as a major formal access to the facility, he said. The overall site development is around 50 acres. The facility itself is a little over 200,000 square feet.

Mr. Metter explained that the lower level plan is developed approximately 10 feet below grade. It assumes an oval shape at the bottom with another 110,000 square feet of athletic offices and support facilities along the top. Basically, the Convocation Center has been developed as a multipurpose facility, with the emphasis on multipurpose. The exhibition hall has two levels: the lower level, about 10 feet below grade, with about 26,000 square feet of exhibition area when the seats are retracted, and the upper level, which is approximately 20,000 square feet when the seats are retracted and the track is exposed so it could be used for either track meets or shows. There are about 46,000 to 50,000 square feet of prime exhibition space divided into two levels. All the support functions, including loading docks and service areas that would serve the whole facility were located below grade on the lower level of the exhibition hall. The building was oriented on the site plan so that service could come in from the back. The front of the center faces the rest of the campus along the access from campus. Following this access down, It goes to a plaza area in front of the main lobby. The plaza area is also evident coming in from Lincoln Highway to the main drop-off at the junction of the athletic offices wing and the area that creates the plaza and then leads back to the campus. The lower level contains mainly locker rooms, support facilities, storage for the arena and an auxiliary gym, which is another program element requested to make the facility that much more multipurpose. It could support more exhibition space such as basketball or four mats for wrestling tournaments. It seats approximately 400 in a bleacher configuration whereas the main arena seats about 9,000 in retractable and fixed seating.

The first level is the entry level and is on grade. The building has been designed so that entry into the building is from ground level, which is also the mid-level of the facility. Seating can be accessed either at the floor level or the upper level. Mr. Metter explained that the main lobby was developed on axis with the rest of the campus, so that the campus can be developed all the way through to the west. Shown in the upper level plan were some mechanical support facilities, the upper level of the gym and, in the east end, the athletic support facility offices for administration, business offices, a lecture room and a seminar room. There is a small lobby that leads to the office component of the building. That was placed in the middle on axis with the intramural fields to the north so that it truly is the nexus of two axes of the university. One is the academic axis, which points to the east, and one is the more physical intramural axis, which points to the north. They all meet at the center of life in this building, and that is really how the site plan was determined.

When all the retractable seats are extended, there are a couple of options that could be included when it is possible to go into further design development. One option is an upper level alumni room and skybox area, which could be done in a number of different ways. The facility could be developed now with a shell in this area and not finished off if budgetary reasons did not permit; or it could be structured so that it could be added in the future; or it could be built out all at once. The lobby area includes spaces, one on the north and one on the south, for concessions, restrooms, support spaces and storage. There are, in addition, approximately 400 fixed floor seats that do not retract for two reasons. Those sections supply access to the upper and lower levels of the arena, otherwise steps and portable support facilities would have to be utilized. It is also a little more economical. Retractable seats provide for flexibility, but there is a little bit of a price that comes with them, Mr. Metter explained, so we looked at a combination of fixed and retractable seating to balance one against the other.

The last board displayed by Mr. Metter showed the south elevation of the building from Lincoln Highway. From the ground to the top of the parapet is 50 feet, and the floor of the main exhibition hall is sunken 10 feet below grade. That reduces the scale of the building, which would otherwise be 60 feet high from the ground. It also makes it more economical because it costs less to build on grade and contour the land than to build up in the air with columns and beams.

The main portion of the seating has been elevated visually, Mr. Metter said. From about 20 feet off the ground up to the parapet will be precast panels, and down below, the enclosing wall in the building will be slightly recessed with exposed columns. The concession areas to the north and south were developed mostly in glass so that the activity in the building becomes part of the campus. It is not just an enclosed, hermetically sealed, dead space where activity is seen only when people are there. At night it will be lit up, and when there is a show or a game, it will really become a lively, integral part of campus life.

Another part of the elevation shown was the office wing, which is a one-story precast concrete and glass structure that extends from the back side of the center. There is some indication of plaza development with some landscaping showing the notion of flags, Mr. Metter said, they may be sculptural or there may be an art program that could be incorporated in plaza development, paving materials and lighting to also make the plaza a very enervating and active space. Mr. Metter said the design was at a very conceptual level, but Eptstein Architect Associates felt it could be taken from this point and developed.

Dr. Williams said the university is very pleased with the work that Epstein has done. They have been very responsive to user requirements, he said, and genial to bantering about the fact that we want a $70 million facility for half the price. They have delivered a concept that, fortunately, worked within the not-to-exceed budget established by the Board. Dr. Williams introduced Pamela Opyd, from Prime Group, the developers who are pulling this team together to make the project work. This is a concept, Dr. Williams said, so we have a lot of work ahead of us. There are many issues regarding the budget and construction materials, but we feel that we can deliver a facility in this direction. At the last meeting, the Board asked the university to make sure it solicited and received campus input and responded to questions from the campus. As Dr. Williams reported earlier, Dr. Anne Kaplan chaired a committee of users that was representative of the university with students, staff and faculty that reviewed many aspects of the project. They were kept informed relative to the development and the needs of the campus, he said, and we provided a mechanism by which comments and questions could be addressed. Further, Melanie Magara and her staff created a web site dedicated to this project which provided information on such things as elevations and presented an opportunity for the university community to comment or raise questions regarding this project. The Student Association sponsored several open forums where anyone on campus could come and be briefed on the project. So, we have made every opportunity that we could available, Dr. Williams said, to solicit input, get comments and provide a forum by which questions and issues could be resolved and discussed. Again, he said, we are pleased. It has been a 30-year march to this point. Without the leadership of our President, this would never have happened. I say that not because he is my boss, Dr. Williams continued, but because he has, through his years as President of this institution, put the needs of the institution ahead of his own personal needs. He has been very diligent in his efforts to make this project possible. We are very pleased to present this item to the Board. The budget request for this project is not to exceed $35,800,000, and resource requirements have been researched.

Student Trustee Sosnowski said that in addition to the areas Dr. Williams had already touched on, the Student Association's involvement in the process extended to working with the President's Advisory Committee informing students and Senators. He took the opportunity to talk about a resolution that was passed the previous week by the Student Senate, which is elected by the students.

     WHEREAS, the Northern Illinois University Board of Trustees is planning a vote to approve a Convocation Center, and 
     WHEREAS, a Convocation Center would alleviate three issues that affect our Campus: the mandate to comply with Title IX Statutes, the need for additional parking and the need for additional recreation space for the Campus Recreation Center due to overwhelming growth, and 
     WHEREAS, a Convocation Center would not only be used for Athletic and Recreational Facilities but also for graduations, entertainment events and conventions, which generate revenue and notoriety for the university and the City of DeKalb, 
     THEREFORE BE IT RESOLVED by the THIRTIETH STUDENT SENATE OF NORTHERN ILLINOIS UNIVERSITY that we value Tradition, Pride and Excellence, and 
     BE IT FURTHER SOLVED that the Thirtieth Student Senate supports a Convocation Center to address the aforementioned issues, and 
     BE IT FURTHER SOLVED that, although we recognize all of the Convocation Center's benefits, we urge the Board of Trustees to seek alternative funding in addition to student fees to offset the cost, and 
     BE IT FURTHER RESOLVED that copies of this resolution be sent to the Chair of the Board of Trustees, the President of the University, the Executive Secretary of the University Council and the Student Trustee.

Witnessed: 
_______________________       _______________________ 
Michael J. LaPidus                        Roniciel Joy S. Molano 
Speaker of the Senate                 President 

Chair Sanchez asked that the Student Senate Resolution be recorded in the minutes of this meeting. Once again, from the beginning, the Chair said, the objective was to find out from every facet of the university what the feelings would be about this facility, and to try to meet those three very significant interests. We have to address them, and this seemed to be the most economical, feasible way to do it.

President La Tourette said he would also like to join with the Student Trustee in expressing appreciation for the working relationship they had with the Student Association; with the President of the Student Association, Joy Molano; with Student Trustee Sosnowski; and with the Student Senate. We have a very high regard for our students, he said, and they have participated very significantly in this project. And I have a great deal of respect for the Student Senate. I mention this because I shared with the Executive Director of the Board of Higher Education a chronology of all the activities we have engaged in over the last several months, the President said: the several Board meetings at which the center was discussed; the formation of an advisory committee, which included faculty, staff and students; the interactions with the Student Association and the Student Trustee; the fact that we put this information on the web page so that there was an interactive capability for people to raise questions about this project. I also shared with him the role that the Student Association played in holding forums and taking this information to the students, and I shared with him the action of the Student Senate in endorsing this project. So, the IBHE Executive Director is quite aware of the fact that the university, and the Board in particular, has been anxious to receive student input and to involve the students in the project. Therefore, he understands where we are, where we are going and that eventually this project might come to the Board of Higher Education for approval since they have the authority to approve noninstructional projects. He fully understands the degree to which students have been involved, and he understands that we have diligently tried to meet the advisory role of the Board of Higher Education to boards and campuses regarding the involvement of students when there is an introduction of new fees. I believe he has been well informed, the President said, and understands our circumstances and that this Board has tried to set up a structure where students have been involved and fully engaged in this process. I just want to make that point clear to this audience and to the public that this Board should not be criticized for actions taken or that will be taken here, President La Tourette concluded, because they have all been pursuant to our governance procedures and policies. And we have, I think, more than complied with the advisory from the Board of Higher Education that students be involved in such a project.

Trustee Grans said she understood that the project would proceed without requiring further Board action, but wanted to be sure this presentation would be given to the full Board. In answer to another concern voiced by Trustee Grans, Board Chair Boey said that as the project goes along the Board would, at the very minimum, receive quarterly reports on its progress.

I have repeated this many times, Board Chair Boey said, but the Convocation Center is not about sports. Sports is a part of it, but that is not the only reason it is needed. It is about meeting the many needs of the university, which have been extensively articulated and discussed in recent months and today. It is about competing for market share. It is about the image and the future growth of the university. It is about making the value of an NIU degree worth even more over succeeding years. As an undergraduate student or graduating senior today, I would want to be sure that my degree from my institution is going to be something that will be growing in value, the Chair said. No one wants to be associated with a university and a degree that goes backwards. It is rare to have a combination of requirements at a single time, namely the three projects discussed earlier, that allow us to start considering the viability of a center. And make no mistake about it, the Board Chair said, even if the center is not built tomorrow, the construction costs are not going to go away because they are still there in the three projects, which Dr. Williams very closely approximates to the cost of the center. This is not going to take anything away from the academic programs because the money being used here is strictly for construction and cannot be used for academic purposes.

UAC Representative Andy Small said that when he was asked by the Board to talk to university staff, professors and faculty, to get a feel on campus attitudes about the center, he received varying answers. Those answers ranged from thinking it was a good idea and if the students were for it, so were they, to those who leaned toward not really being for it, to attitudes of all out enthusiasm — really being for the center because it is something that will enhance the university's image. And then there was another person who I asked what he thought about the arena, Mr. Small said, and his answer was, "What arena?" I think this sort of demonstrates the full gamut of opinions out there, he said. So, I think that if the students are for it, which Student Trustee Sosnowski and Student Association President Joy Molano say they are, Mr. Small said, the staff is certainly for anything that enhances the image of NIU and creates employment opportunities for us — and this does both. As for me, personally, Mr. Small said I say, "Let's start digging." He asked that the Committee endorse this project.

Dr. Williams asked the Board to approve this item, which provides for all necessary authorizations to enter into agreements for the construction and development of the Convocation Center. The item was written so that all the necessary authorizations were included that would allow the university to proceed without further Board action regarding this matter. If there should be any other related matters that would require Board action, they would be brought back to the Board for authorization. The university requested full approval of the Committee to proceed with the project. Chair Sanchez entertained such a motion. Trustee Grans so moved, seconded by Board Chair Boey.

A roll call vote of the Trustees was as follows: 

Trustees Susan Grans         Yes    
Chair Manuel Sanchez  Yes
Board Chair Robert Boey  Yes

The motion was approved.

Agenda Item 7.n.(3) - Funding and Fee Structure
This item completes the package by providing the necessary student fee support that would appropriately fund the project as we have conceptualized it, Dr. Williams stated, at the established project budget level of $35.8 million. Due to the construction period, the actual operation of the facility in full-blown capacity will occur in fiscal year 2003. As has been the policy and practice of this Board, Dr. Williams said, we will phase in fee increases so that as we move toward full occupancy and utilization of the facility, the fee will be at the required level at that point. The request was for approval of a fee plan that begins at $60 per year in Fiscal Year 2000, $96 a year in 2001, $120 a year in 2002, and $138 a year in 2003, which would be the first full year of use of the facility. Dr. Williams also commented that, as Chair Boey had indicated, when the university first started out with the project of addressing three different needs, the price tag associated with addressing those three independent projects turned out to be approximately the same as addressing it through the Convocation Center. Therefore, the fee necessary to support full operations and full amortization of the debt to address the three projects actually approximates the number that President La Tourette talked about in December 1998. So, the $138 a year approximates the $136 to $140 range that we originally thought it would cost to address the three independent needs.

President La Tourette thanked Dr. Williams and all of the people who worked on these projects. I know Dr. Williams very well and he is always extremely conservative in terms of estimating costs and operating costs, he said, so I am very comfortable that the work he has done here is a maximum figure. And if we are fortunate enough to attract some donations, the President said, perhaps the figure will not go quite as high as what is indicated here.

We are going to work very hard, not only to make this a reality at the cost level that Dr. Williams has projected and the Board has approved, President La Tourette said, but to make it a very fine facility that will serve the university for many years and be a signature for the campus. We have invested a great deal in redeveloping the West Campus and this will be an anchor for that area. We find in looking at national surveys, that when students and parents come to campuses, they look at the physical facilities and the amenities, and one of the things I hear over and over again is the importance of recreation facilities, both indoor and outdoor. And I think this will give NIU the best set of recreation facilities in the nation in terms of the campus population. I know there are many schools putting recreation facilities on line now, and many of them are just about at the level we are currently, so we are going to make a big leap forward with the availability of the Evans Field House in this area. It will, when added to the Convocation Center, make the West Campus very attractive.

Going back to one of Mr. Boey's questions, Dr. La Tourette said, he is interested in what we can do to attract other projects that will fill in and make that West Campus area more attractive and functional for the whole campus. I know there are costs involved here that we are asking students to step up and help us with, but the benefits that will go back to students, the President said, I think will be enormous over a long period of time. Also, relative to Dr. Williams' presentation, Dr. La Tourette reminded the Board that Fiscal Year 2003 begins on July 1, 2002, and that the building could be ready for occupancy in Fall 2002.

In view of the concern expressed by students about student fees, Chair Sanchez asked that if anyone was aware of benefactors, opportunities, etc. to address this concern or some other financial resources that would somehow decrease the amount of dependency on student fees that the Board be made aware of it. I am sure our Foundation and other sources will be looking into this and that it has not fallen on deaf ears. Also, speaking of personal pride, Chair Sanchez said, most of the other major facilities of higher education already have had similar convocation centers for a long time. I think it is time that Northern Illinois University had a facility of which we can not only be proud but which will provide so many services to the entire university community as well as the City of DeKalb and its surrounding areas.

Chair Sanchez asked for a motion to approve the funding and fee structure for the Convocation Center. Board Chair Boey so moved, seconded by Trustee Grans.

A roll call vote of the Trustees was as follows: 

Trustees Susan Grans         Yes    
Chair Manuel Sanchez  Yes
Board Chair Robert Boey  Yes

The motion was approved.

Dr. Williams recognized and expressed appreciation to those individuals responsible for the projects involved in the Convocation Center project activities: Mary Crocker, project manager of the Evans Field House project; Bob Albanese, who was responsible for all of the estimates on the reserves related to Evans Field House; Mr. Pat Bell, project manager of the Convocation Center; and Patti Perkins, who is in charge of the plan area. He also recognized and thanked Kathe Shinham, who does all of the university bond financing numbers enabling the university to size the type of bond instrument that would be necessary to support this project and its cost over the term. 

Chair Sanchez asked for a motion to adjourn. Trustee Grans so moved, seconded by Board Chair Boey. The motion was approved. The meeting was adjourned at 12:40 p.m.

Respectfully submitted,

Sharon M. Mimms
Recording Secretary