Minutes of the
BOARD OF TRUSTEES of
NORTHERN ILLINOIS UNIVERSITY
March 23, 2000

CALL TO ORDER AND ROLL CALL

The meeting was called to order by Chair George Moser at 11:35 a.m. in the Clara Sperling Sky Room of Holmes Student Center at Northern Illinois University. Recording Secretary Sharon Mimms conducted a roll call of Trustees. Members present were Trustees Robert Boey, Jeremiah Joyce, Myron Siegel, Gary Skoien and Barbara Giorgi Vella, Student Trustee Nolan Davis and Chair Moser. Trustee Manuel Sanchez entered the meeting in progress. Also present were Board Parliamentarian Kenneth Davidson and President John La Tourette. With a quorum present, the meeting proceeded.

Academic Affairs, Student Affairs and Personnel Committee
Committee Chair Boey reported that the Academic Affairs, Student Affairs and Personnel Committee met on Thursday, March 2. Personnel matters normally brought to the Committee at the March meeting included recommendations for tenure and promotion and sabbaticals. The Committee also endorsed the university's Fiscal Year 2001 salary increment guidelines and requests for a new minor in community health and an interdisciplinary minor in environmental management systems. We were impressed with the fact that the interdisciplinary minor will involve the collaboration of 12 different departments in three colleges, he said. The university also presented a request for off-campus degree authority for the M.S. in Education in Instructional Technology in Lake County and in DuPage County. Finally, the university made its annual report to comply with the law requiring that public universities ensure the oral English proficiency of those who provide classroom instruction. The university reported only three formal complaints for the 1998-99 academic year, all of which had been resolved.

Legislation, Audit and External Affairs Committee
Committee Chair Siegel reported that the Legislation, Audit and External Affairs Committee had not met since the last Board Meeting. He did, however, report that a memo had been distributed to the Committee with an update on the status of the FY99 Financial and Compliance Audit, which contained five nonrepeat findings. A copy of the report was given to the Board.

Illinois Board of Higher Education
President La Tourette reported that the last meeting of the Illinois Board of Higher Education was held in Chicago at the School of the Art Institute on Michigan Avenue on Tuesday, February 1. At that meeting, the Board of Higher Education supported the transfer of responsibility for adult education from the State Board of Education to the Illinois Community College Board. Legislation supporting that transfer was on Third Reading as of March 22 and is expected to pass when it is called for a vote.

Also, a report was given on the development of a center in Lake County, the President continued. It was noted that the developer who was promoting a site in Lakehurst at Lakehurst Shopping Mall, had not complied with requests from the Board of Higher Education to answer a series of questions. The IBHE continued this item to its April 4 meeting for a final determination on its status. NIU will continue to follow this very closely, he said, because we have a significant number of students on campus from Lake County, and we have had a long experience in Lake County offering a number of master's degrees.

Another issue addressed at that meeting was a report on faculty and staff salaries. It was noted that over a two-year period, average faculty salaries at Illinois public universities increased 7.8 percent, a calculation which includes both continuing and new faculty. We cannot tell from this figure exactly what the increment was for continuing faculty because the average was influenced by the hiring of new faculty. It was also noted that the public universities in Illinois are now at 95.1 percent of the average of their peer institutions. Each university has a set of peer institutions against which its salaries and other compensation are measured, President La Tourette explained. In NIU’s case, the set includes approximately 40 institutions including Auburn University, the University of West Virginia and such schools in the Mid-America Conference as Akron, Kent State, Miami of Ohio and others. These peer groups have been developed on the basis of over 200 different factors that gauge similarities among institutions. The 95.1 percent peer group average for all institutions means we are about five percent below the national average in Illinois measured against all the peer institutions that are examined for the nine public universities. The figure for Northern Illinois University is 96.4 percent, a little higher than the state average relative to our peer group. This is an important figure, the President said, and it is also an important target. The Board of Higher Education has established a target of raising us to a hundred percent of the average of our peer groups. Last year we had a special increment beyond a base increment of three percent. A one percent additional fund was established by the State for critical faculty and staff salary increases. The university had to match that one percent to bring the total average to five percent. However, the State Senate has insisted that those funds beyond the three percent be administered on a selective basis to retain and/or recruit highly qualified faculty and staff. At the Senate meeting, which Trustee Siegel and President La Tourette attended, we reported that about 30 percent of NIU’s faculty shared in that special increment last year. The same guidelines are being emphasized for the pending package, which replicates last year's package of a three percent increase plus the one percent additional fund established by the State, which has to be matched by the university. There is a great deal of emphasis on selectivity to recognize the people who are contributing the most to the university’s teaching and research missions.

The President added one other factor to put the critical importance of the salary increment in context. Over the last ten years, faculty salaries at public universities have eroded relative to the salaries at private universities throughout the nation. In 1990 public universities offered, on the average, 91 percent of the salaries at private universities. That has fallen now according to the director of a research institute at Cornell. He just reported at the ACE (American Council on Education) meeting this week that this figure has dropped to 81 percent. So, not only are Illinois public institutions below the national average in general for faculty salaries, but they have lost ground compared to the private sector, which raises some real concern about our ability to compete for quality faculty and to offer quality programs in the future. So this plan is very important for the university in terms of raising our salaries, President La Tourette concluded, and raising them in a way that encourages a high level of performance on the part of our faculty.

University Civil Service Merit Board
There was no report from the Civil Service Merit Board.

Northern Illinois University Foundation
Mr. Malone updated the Board of Trustees on the year-to-date activity of the Foundation. Gifts to the Foundation are up 46 percent over last year, which was a record year. Cash gifts, which were a particular focus for us this year, are up 72 percent, he said.

The College of Education received a $400,000 pledge by an anonymous donor to match gifts to their School/University Partnership Program that would bring NIU faculty and students into community schools to work with teachers in the field. This $400,000 pledge was to be matched by gifts over 24 months. Over $500,000 was raised in 13 months. The donor very generously agreed to match that higher number, Mr. Malone said, and we have recently received a stock transfer that cashed out at $520,000, which brings the total on the School/University Partnership campaign to over a million dollars in just about half the time agreed to by the donor and the university. We are now working with the match donor to see if he will indeed extend that match through the 24 months, because there are some outstanding gifts and pledges to be counted. The Telefund operation is up 27 percent over last year. The number of donors is up 21 percent with the average gift size up 14 percent. We are still in an acquisition phase, he said, which will, in the next year or two, start to shift focus to upgrade the gift size. Matching gifts are up 72 percent over last year. Not all the gifts come in at $50 and $100. Recently a $3,000 gift to the School of Art came in on the basis of a phone call. So, the Telefund, in addition to acquiring new dollars and building up a tradition of giving, sometimes uncovers major gift prospects, and often, major gift prospects grow out of a Telefund solicitation. Overall, direct support for colleges and departments from endowed funds and restricted gifts is up one million dollars per year compared to four years ago. In other words, Mr. Malone said, there are a million more dollars directly available to department chairs and college deans from private giving this year than were available four years ago.

Finance, Facilities and Operations Committee
Committee Chair Manuel Sanchez reported that the Finance, Facilities and Operations Committee met on March 2. The Committee received information items and reports concerning Fiscal Year 2001 operations and grant budget recommendations, reports on investments and various capital projects. Items that were to be presented for Committee action were annual contract renewals for the NIU Foundation professional services, copying equipment, student accident and sickness insurance, and Huskie Buses; authorization of expenditures for foreign studies programs, athletic sports camps and campus childcare furniture, fixtures and equipment; depository account approval for the Continuing Education Program; FY01 salary increment allocation guidelines; and, FY01 student fee and room and board recommendations. The fee increases have been held to an average increase of 4.11 percent when the previously approved bond fees are excluded. However, due to the lack of a committee quorum on March 2, all of these items were presented as information items only. They were thoroughly reviewed by the Committee members in attendance and were included in the President’s Report for approval by the full Board. Committee Chair Sanchez added that it was noted at the Committee meeting that they had not taken up the student fee and room and board recommendations because the usual protocol of meeting with the student leadership prior to any recommendation had not been followed. Subsequently, that meeting was held, and Chair Sanchez reported that it was a very productive and effective one.

Chair Moser announced that NIU anthropology professor Dan Gebo had made national and international headlines by discovering man's smallest ancestor. The Board of Trustees would like to recognize Professor Gebo, the Chair said, and tell him that we are very proud of his accomplishments. There was a substantial article entitled "Linking Man to a Monkey" in Time Magazine. Professor Gebo also serves on the University Advisory Committee and is assigned to the Academic Affairs Committee.

The Chair recognized former Northern Illinois University president William Monat.

As you all know, Chair Moser said, we have just spent time in Executive Session where we have discussed a personnel matter of great importance. The Chair went on to make the following comments.

I believe we have reached a consensus on this matter and are now prepared to bring it forward for public discussion and a vote. I am referring, of course, to the Board's selection of a new president for NIU. As a founding member of this Board, I can say with confidence that this is the single most important decision we have had before us since our inception. John La Tourette's 14-year tenure as president is nearly unprecedented. Not only has John's presidency been a long one, but he has presided over the greatest period of growth and change in the institution's 100-year history. Board members are called Trustees because we hold the future of this university in trust for future generations. We take that responsibility very seriously. As we looked at NIU's place in the larger landscape of higher education, we came to the consensus that NIU's next leader must be a dynamic and externally focused agent of change. At the same time, we have agreed that Northern's next chief executive must be someone whose chief concern is always students. I am pleased to say that I believe we have found just such a person. John G. Peters is provost and chief operating officer at the University of Tennessee-Knoxville. He is an extremely dynamic individual whose accomplishments run the gamut from increased student scholarship support to the acquisition of multimillion dollar private gifts. Students at UT call Dr. Peters the students' provost and bemoan his departure in the pages of their student newspaper. He impressed every member of this Board with his intelligence, commitment and energy. And we believe he will take this institution to new heights in the years ahead. I now look to my fellow Trustees for a motion to nominate Dr. John Peters as the next president of Northern Illinois University.

Mr. Chair, Vice Chair Siegel said, I am pleased to report that Dr. John Peters, has accepted the offer extended to him. Dr. Peters will commence his service to NIU as its next president on or before June 1. The term of the agreement is three years, his salary will be $215,000, and he will receive normal fringe benefits. Members of the Board of Trustees, it gives me great pleasure to move for the approval of Dr. John Peters as the next president of Northern Illinois University. The motion was seconded by Student Trustee Nolan Davis.

"At this moment," Trustee Boey commented, "I don't know who's happier, the new president or me." It has been a wild six-month ride along with my fellow Trustee Manny Sanchez and co-chair Jim Norris. I think I would be remiss if I did not offer some kudos to certain groups of people. First of all the search process brought us John Peters, and I am very proud of that. I want to thank the 22-member search committee, some of whom are here today, for a lot of hours, a lot of sweat, a lot of reading, a lot of midnight meetings that were sometimes hard to explain to our spouses. And above all, during the visit of the four candidates to campus, there were many volunteers — professors, staff and students — who really put in a lot of work to make that whole three week schedule an immense success. All we heard from the four candidates was what a wonderful setup it was and what a wonderful trip they all had. And above all, Trustee Boey said, all the preparation of those who really helped to give the Board of Trustees the summary of the information from all of the campus interviews. Miraculously, all the summaries showed up only a few days after the final candidate was here. A special thank you to all those people who played a part in giving Northern Illinois this tremendous image of a university, which is about to move to the next level with the presidency of Dr. John Peters.

Trustee Vella stated that she concurred with the Chair’s remarks. I would also like to say that I am very excited about our future, she said, and I am proud of our decision. It is my pleasure to speak in favor of this motion, Trustee Sanchez said, and to concur with my fellow Trustees. It indeed has been a rather trying process. But sometimes unless you pay the piper, you do not end up with the goods. In this case, the piper was paid a lot of unbelievable sweat equity that has gone into this process, and we have ended up with the gem of all gems. I am thrilled to support this motion and look forward to Dr. Peters’ leadership as our next president.

Mr. Boey just said that he did not know whether he was more excited or the new president was more excited, President La Tourette said. I can tell him with certainty that the old president is the most excited. I would also like to commend all those who have been involved in the search process. These are always very trying times with twists and turns, and a lot of work that has to go into it. I think everyone has worked very hard to find the best possible candidates for this institution, and I am very pleased that John Peters is being selected. It is now my role to provide as much support for him as possible during this transition — to bring the staff together, to inform him of what issues he will have to face and to help him face them as quickly as possible. I thank the Board and congratulate them on their decision. I think this is the best decision for the future of the university in the 21st Century.

Chair Moser then asked for unanimous consent on the motion.

Trustee Siegel asked that the motion be amended to state that the Board approve the appointment of Dr. John Peters by unanimous consent. There were no objections to the motion. With that revision, Chair Moser said, we have approved the nomination of Dr. John Peters as the new president of Northern Illinois University with the unanimous consent of the Board of Trustees. Thank you my fellow Trustees.

At this time, I would like to thank all the members of the search committee who spent so many long hours in pursuit of this goal, the Chair said. Your time was very well spent and the result reflects your dedication and loyalty, specifically, Manny Sanchez and Bob Boey and Dr. Jim Norris, who headed up the committee.

Chair Moser went on to make the following comments:

John Peters will bring many strengths to his new position as president of Northern Illinois University, but he is quick to credit much of his success to the intelligence and grace of his wife, Barbara. John was the overwhelming choice of every group who met with the final candidates, but Barbara received as much credit and support from people who met her. She will be a wonderful, very involved first lady for Northern. She confided in me that Chicago is her favorite city in the whole world, and I think that had something to do with John's great interest in Northern Illinois University. They are transplanted Midwesterners coming up from Knoxville, Tennessee, and they are delighted, in a sense, to be coming home. My thanks on behalf of the entire Board to all the faculty, staff and students who participated in one way or another in the search process. Dr. and Mrs. Peters will be arriving on campus for a special welcome and reception on Monday, March 27, at 4:00 p.m. here in the Sky Room. I invite everyone to come out and meet the new Northern Illinois University president and first lady, Chair Moser said.

Agenda Item 8.a.(1) – Campus Child Care Center Furniture, Fixtures and
    Equipment
Agenda Item 8.a.(2) – Fiscal Year 2001 Student Fee Recommendations
Agenda Item 8.a.(3) – Fiscal Year 2001 Room and Board Rate Recommendations
Agenda Item 8.a.(4) – Fiscal Year 2001 Off-Campus M.B.A. Delivery Fee
Agenda Item 8.a.(5) – Fiscal Year 2001 NIU Foundation Professional Services
    Contract
Agenda Item 8.a.(6) – Fiscal Year 2001 Athletic Sports Camp Housing and Meal
    Expenditure
Agenda Item 8.a.(7) – Depository Account
Agenda Item 8.a.(8) – Document Services Copier and Controller System Fiscal
    Year 2001- Contract Renewal
Agenda Item 8.a.(9) – Student Accident and Sickness Insurance Fiscal Year 2001
    Contract Renewal
Agenda Item 8.a.(10) – Huskie Bus Contract Fiscal Year 2001 Contract Renewal
Agenda Item 8.a.(11) – International Programs Division Contracts Renewal
Agenda Item 8.a.(12) – Fiscal Year 2001 Salary Increment Allocation Guidelines
Agenda Item 8.a.(13) – Recommendations for Faculty Promotions, Tenure and
    Promotions with Tenure for 2000-01
Agenda Item 8.a.(14) – Recommendations for Faculty and Supportive Professional
    Staff Sabbatical Leaves for the 2000-01 Academic Year
Agenda Item 8.a.(15) – Request for New Minors
Agenda Item 8.a.(16) – Request for Degree Authority at an Off-Campus Site

University Reports Forwarded from the Board committees
There were no questions on information items 8.b.(1) through 8.c.

Respectfully submitted,

Sharon M. Mimms
Recording Secretary