Minutes of the

BOARD OF TRUSTEES

OF NORTHERN ILLINOIS UNIVERSITY

June 20, 2002

CALL TO ORDER AND ROLL CALL

The meeting was called to order by Chair Manuel Sanchez at approximately 9:15 a.m. in the Clara Sperling Sky Room of Holmes Student Center.  Recording Secretary Mimms conducted a roll call of Trustees.  Members present were Trustees Robert Boey, Myron Siegel, Gary Skoien, Barbara Giorgi Vella, Student Trustee Alex Alaniz and Chair Sanchez.  Not present were Trustees Catherine Adduci and George Moser.  Also present were Board Parliamentarian Kenneth Davidson and President John Peters.  With a quorum present, the meeting proceeded.

VERIFICATION OF APPROPRIATE NOTICE OF PUBLIC MEETING

Confirmation of Open Meetings Act public notice compliance was provided by Board Parliamentarian Ken Davidson.

MEETING AGENDA APPROVAL

Chair Sanchez proposed that President’s Report No. 31 action Agenda Items 9.a.(2), 9.a.(3), 9.a.(8), 9.a.(9), 9.a.(11), 9.a.(12), 9.a.(14), 9.c.(2) and 9.c.(3) and Information Items 9.b.(1), 9.b.(3), 9.b.(4) and 9.c.(1) be moved to a consent agenda.  Trustee Boey made a motion to approve the meeting agenda as amended.  Trustee Skoien seconded the motion.  The motion was approved.

REVIEW AND APPROVAL OF MINUTES

It was moved by Trustee Vella and seconded by Student Trustee Alaniz to approve the minutes of the March 21, 2002 Board of Trustees Meeting.  The motion was approved.

ELECTION OF FISCAL YEAR 2003 OFFICERS FOR THE BOARD OF TRUSTEES

Chair Sanchez recognized Trustee Vella to nominate the elected Board of Trustees officers for Fiscal Year 2003.

Chair Vella placed into nomination the following slate of officers to be elected for Fiscal Year 2003.

     Chair:  Trustee Manny Sanchez

     Vice Chair:  Trustee Gary Skoien

     Secretary:  Trustee Robert Boey

     Fourth Member of the Executive Committee:  Trustee George Moser

     Civil Service Merit Board Representative:  Trustee Barbara Giorgi Vella

Chair Sanchez asked for a motion to approve the slate of elected officers as nominated for Fiscal Year 2003.  The motion was seconded by Trustee Boey.  The motion was approved.  Congratulations to the new officers of the Board, the Chair said.  As provided in our Bylaws, you will continue performance of your duties in your next term effective July 1, 2002.

Manny, I want to congratulate you on your first year, Trustee Siegel said, you have done a wonderful job.  It is really exciting to see how each chair has brought different aspects to the Board’s leadership.  This past year has been very exciting, and those items that you have brought to the forefront have made some significant, positive progress for the university and the Board.  I congratulate you and look forward to your second term. 

Chair Sanchez made the following remarks:

Thank you Barb, and thank you fellow Trustees, in particular, Myron, for those kind words.  I do take this position very seriously, and I am honored to serve in this capacity – not just because it is my alma mater, but because I have the privilege of holding in trust, as the Chair, along with my fellow Trustees, a university that is second to none.  We have a fabulous faculty, a fabulous staff, and a fabulous group of students.  As I was walking in just ten minutes ago, there was an orientation going on, and I heard the instructor saying, “I know you students may have many questions, but let me start off by telling you a little about NIU.”  And I thought to myself, 30‑some years ago I was sitting in that audience hearing a similar spiel and wondering, where would this university lead me?  Where would I be five years, ten years, fifteen years – hard for me to say now – but 30 years down the line?  Thanks to NIU and thanks to the professors and instructors who took the time and made the difference for students, for people like myself and for the people who are here right now in orientation.  This university, now with stake‑holds not just in DeKalb, but in Naperville, Rockford and Hoffman Estates, continues to take no backseat to any institution of higher education.  We provide an excellent education on the academic side, but we also provide an excellent education on the realities of going into whatever vocational or avocational interests our students have.  As parents, as faculty people and as staff, you should be proud, as my fellow Trustees and I are, of the wonderful institution that we have here.  I pledge to you that as Chair, in my second term, I will continue to wear that banner and to proudly announce, as I always do when people ask me what this beautiful ring is I wear – and it is the nicest piece that I wear – that it is my Northern Illinois University ring.  I hold it because I was the first in my family to graduate from college, and that is why it is such a proud piece for me.  I love to talk about it, and I love to talk about this institution.  I am touched when I hear impromptu, unsolicited comments like those Myron just shared and that I privately heard from each of my fellow Trustees.  So, thanks for your vote of confidence, and I intend to earn the trust that you have demonstrated by reelecting me to this position.

CHAIR'S COMMENTS/ANNOUNCEMENTS

It has been our practice at these annual meetings to have the new chair say a few words about the state of our university, Chair Sanchez said.  If you would indulge me for just a few minutes, I would like to continue that tradition with a few thoughts.

At this time last year, we were celebrating John Peters’ first anniversary as President of NIU.   And “celebrate” is the correct word to use as we watched so many accomplishments during that year and applauded the many reputation‑enhancements John was able to bring to our university.

This year, as John Peters finishes his second year at the helm, we have different but equally important reasons to celebrate his leadership.  This year, NIU has faced the worst, and I emphasize “worst,” financial crisis in recent history and certainly the worst since the inception of this Board of Trustees seven and a half years ago.

We Trustees are ultimately responsible for the financial health of this university.  We are challenged to help NIU in ways that preserve access and quality, but also demonstrate a high level of accountability and productivity.  I believe we have done that and must continue to do so in the months ahead.  NIU is historically “lean” administratively, and I think we have done a good job of helping our elected officials understand the very complex and demanding role of our faculty.  This is our constitutional responsibility as stewards of the public trust, and we will continue to play that role on behalf of the university we all serve.

As we are going to hear in more detail this morning, the nation’s recession hit hard in Illinois, and it dug deep into the progress of all educational institutions.  From newspapers around the state, we have read of large‑scale layoffs at other universities, massive tuition increases – double‑digit in several – and additional midyear tuition hikes.  The news has been grim, and NIU has certainly not been spared.

But I want to personally take this opportunity to say publicly that the manner in which these difficult times have been handled by this president and his top staff has been nothing short of admirable.  President Peters issued a set of budget guidelines last November, when he knew that the worst was yet to come.  Those guidelines put students and academic program quality first, and from what we trustees have seen, the campus has not deviated from those guidelines.

This is not to say that we have not felt the pain of a budget loss that totals nearly $13 million – million.  But it is clear to us that this administration has been well‑prepared and this campus well‑focused on institutional priorities.  John and his staff have also done a great job of keeping the campus community informed through regular e‑mails, meetings and even a dedicated web site with updates on the budget crisis.

As most of you have heard by now, the final, additional FY03 budget cut – beyond the $9 or $10 million for which we had been preparing – ended up totaling about $3.3 million.

Fortunately, through John’s leadership and the formidable stewardship of our Chief Operating Officer, Dr. Eddie Williams, we have been able to come through this crisis without having to endure many of the deeply damaging and personally devastating effects seen at many other universities across the state and nation.

We are, of course, not happy with the lack of funding for salary increases.  This Board and this administration have made salary competitiveness a top priority at NIU; and until this year, we have done very well in that arena.

I note that later this morning we will be considering the budget recommended for FY04, in which we once again will be requesting funds for a significant salary increase.  While we understand that virtually everyone in public higher education is in the same boat right now financially, we have no intention of lightening up on our efforts on that front.  Our faculty and staff are the heart of our university and its mission, and this Board remains committed to making their salaries as competitive as possible.

We have been through some tough challenges over the last year, but I would certainly be remiss if I did not also reflect on some of the triumphs we have had and the progress we have made as a university.  Two of those great stories have taken the form of new buildings on our campus.  Barsema Hall, our new College of Business, is preparing to take on its first class of students in about eight weeks.  In what has to be some kind of new record for speedy construction – thank you Dr. Williams and your staff – we have seen Dennis and Stacey Barsema’s dream go from concept to reality.  What a tremendous boost that marvelous new building is going to give to our business programs, which are already tremendously regarded and respected throughout the Midwest.

On the west end of campus, we have the convocation center coming on line in just a few more weeks.  I am extremely proud to know that this beautiful facility will open on my watch as Board Chair.  As one of the original members of this Board, I have watched that project go from concept to reality, and what a reality it is!  For the first time in NIU’s history, we will have a facility that can accommodate the types of large‑scale events that truly build community and enhance reputation.  I am also pleased to note that the grand opening for the convocation center will be held in conjunction with Move‑In Day and the Huskie Bash, again underscoring the fact that this wonderful arena is dedicated to the enjoyment of our students and the community in which they live.  There is no doubt that the convocation center will also be a big boost to our Athletic program.  But I must say that the progress we have seen over the past year in Athletics is deserving of its own recognition, apart from the soon‑to‑be new address.  We saw major championships in football and volleyball, and we saw huge progress in both men’s and women’s basketball.  I mention these achievements again today because I want to emphasize how strongly we feel, as a board, about the contributions of athletics to campus life and university identity.  We are proud of you and we wish you every success this fall – Go Huskies!  This Board has always felt that athletics and academics are not on opposite planes.  They do compliment each other, and I think they are also part of the wonderful four years that the participating athletes spend on this campus.

Finally, I want to mention a subject that is near and dear to my heart and that is the first‑ever conference on Latino Educational Attainment that we held about six months ago in Naperville.  I have taken the opportunity in the past to talk about how pleased I was with the response to that event, but I want to underscore again today how proud I am to be associated with a university that is actually working to be part of the solution to a challenge facing all of higher education.  A number of themes emerged from that conference, and they will be used to outline our second conference next year.  One of the themes that was repeated over and over again by many people who attended our first event was that Latino students, many of them the first in their families to attend college, really thrive in environments that support and celebrate their culture.  We have worked hard to create that environment all over our campus, but at NIU, we have also supported and maintained a very active Latino Center on campus.  Today, I am very proud to introduce to you the new Director of University Resources for Latinos (URL), Dr. Sylvia Fuentes.  I can tell you from my own experience here as an undergraduate that the kind of support URL provides really does make a difference.  So thank you, Dr. Fuentes, and thanks to your predecessor, Dr. George Guittierez, and to all of the staff who create and maintain such a supportive environment for our Latino students.

With that, ladies and gentlemen and fellow members of the Board, I thank you again for your support and for the trust you have once again extended to me as your Board Chair.  I will do my best on your behalf, to continue to make NIU the university of choice for our region.

And, lastly, for all of the gestures and prayers that you have provided to me and to my wife, Pat, I am truly grateful.

I want to welcome University Advisory Committee representatives who may be present this morning:  Dr. Suzanne Willis, Dr. Dan Griffiths, Dr. Dolly Jones, Dr. James Lockard, Ms. Beverly Espe and Ms. Judy Burgess.

I must say, Dr. Willis said, that I am looking forward to the time when I do not have to say how much we appreciate President Peters’ leadership in difficult financial times.  But we do appreciate it, and we know how difficult it has been.  We are certainly looking forward, as I believe he is, to when this whole situation will turn around.  The things that he has done to meet the current crisis are consistent with what it seems to be, namely, a short‑term problem.  So, we are doing short‑term things to meet a short‑term problem and not damaging the long‑term future of the university.  We all appreciate that very much.  Chair Sanchez thanked Ms. Willis and stated that the relationship that has developed with UAC, thanks to its initial genesis with Trustee Siegel as Board Chair, has been extraordinary, and we Trustees look forward to that relationship growing as we move forward.

Chair Sanchez welcomed Senator Brad Burzynski to the Board meeting and thanked him for all the help he has given NIU.  It has been a tough budget year, one of the toughest in the last 30 years for higher education, the Chair said, and we have been cut deeply.  Brad has worked with this Board and the administration this year to mitigate those budget cuts to the greatest extent possible.  He has helped us protect Barsema Hall’s equipment line in the state’s capital budget this year, and we are going to need his help again next year with the Stevens Building, which has been waning on the capital list for several years and needs a push.  Senator Burzynski, we would welcome your perspective on the budget situation.

Senator Burzynski made the following comments:

It is a pleasure to be here with you today.  If anyone here caught Manny’s comments on tape, what a great commercial for Northern Illinois University – his heartfelt comments about where he has come from.  That is the message that needs to get out not only to this community but also to this region.  It certainly is getting out in Springfield, so I do appreciate that Manny.  I appreciate the fact that you are allowing me to talk a little bit about my perspective on what occurred in Springfield, in the last six months in particular, and even going back a little further than that.

Certainly, we have always heard “It was the best of times, it was the worst of times.”  Well, this was just “…the worst of times.”  And when we take a look at what has happened this year in Springfield with our revenue projections, this is the first time in 47 years that we have actually seen a decrease in general revenue funds from one year to the prior year, and that is just unheard of.  So, you can see what is occurring in the state.  To put that in perspective, in January, we had a $91 million shortfall from January a year ago; an $89 million shortfall in revenues from a year ago in February; in March, $149 million less was collected in the state than in March a year ago; in April, about $36 million; May is the worst with $224 million less in revenues for the month of May than in May of last year; and in June this year, we are projecting about a $120 million shortfall.

We passed a budget that actually had a yearend balance of about $810 million to try and cover last year’s spending.  But if you take a look at the revenue we had in May and June and the fact that we are going to have to make that up in FY03, you are actually looking at a yearend balance of about $470 million in the state’s coffers.  So, while we have been faced with some tough times, we have made some tough decisions in the last month.  The Governor’s Memorial Day budget was set at about $22 billion, and we actually lowered that in Veto Session last week.  And that is important to note because everybody asks, “Why can’t you just make across‑the‑board cuts in the state’s budget?”  We have about a $53 billion state budget.  Out of that, about $25‑$26 billion is what we call our general revenue funds, monies that come in from sales taxes, income taxes, etc.  That is the money that we can actually make decisions about.  However, out of that, only about $7.5 to $8.0 billion is available for us to make those cuts in because of contractual agreements and spending priorities that have been set that we have no control over.  All of these state cuts we are talking about had to come out of about $7.5 to $8 billion worth of funds.  A lot of people thought we should increase the general tax and state income tax.  Many of us have the philosophy that you do not increase taxes when you are in a recession because it does not do anything to help build the economy back up.

As for the impact on Northern Illinois University, I just quickly wanted to indicate that I appreciate the way the Board, President Peters and Dr. Williams have reacted and tried to deal with the issues here at NIU.  I have to tell you that a lot of my colleagues in Springfield are extremely jealous of the working relationship that you all have here at Northern and the way you have been able to conduct your business and try to find a way to deal with these issues with minimal damage to programs.  It is a good feeling for me that my colleagues are looking at Northern and wishing that their universities had been able to respond in that fashion.  When we went back for Veto Session last week, the Senate took 234 individual roll calls in one day on budget items, something that is unheard of.  I do not think in the history of the State of Illinois, we have ever done that before, and it certainly was not an easy thing to do.

One of the things we wanted to do was try and maintain basic, sound funding for not only higher education, but for elementary and secondary education too.  We were able to do that, with minimal damage.  Looking at elementary and secondary In particular, we were able to look at printouts throughout the state relative to not only state aid to schools but also local and federal contributions.  We feel comfortable that the majority of school districts in the state of Illinois will be at or above last year’s level of funding when they are addressing this year’s budget, and that was very important for us as well.

Again, I would like to commend the Board, President Peters and everyone else for the work that you have done here at Northern.  As I walk around this campus and see the new buildings going up, the new programs, the new faces on campus – and there are a lot of those – it brings a sense of awe to me.  I am very proud and honored to represent this university and this institution in Springfield.

Trustee Siegel asked Senator Burzynski to comment on what changes he has seen in Springfield with respect to NIU’s influence and the changes in the perception of NIU by the legislature in the last six‑plus with an independent governing board.

Now that all of our state universities are working with independent boards, I see a different thought process in Springfield with the majority of my colleagues, Senator Burzynski said.  With the advent of the separate governing system for our state universities, it has given each university the opportunity to shine and to develop what they think their mission should be, not only on a regional basis, but a statewide and national basis.  My personal opinion is that Northern has done that better than any other university in the state.  I think the fact that the NIU Trustees have taken an active role in visiting Springfield, making contact with legislators, and impressing upon the legislature the importance Northern has here in northern Illinois, in particular, as it reaches out into the Chicagoland community, has been a tremendous asset.  That helps me sell this university.

Your lobbyist in Springfield and your Governmental Affairs Division with Kathy Buettner and Ken Zehnder, the Senator said, have done a great job of creating an awareness of what Northern is all about.  President Peters certainly is well thought of, and he came into the state when a lot of our universities were looking at changes in presidencies. He has done a tremendous job of enhancing Northern’s visibility as well as the legislature’s understanding of Northern and its mission.  All of those things working together has helped.

Trustee Boey commented that most of the Board of Trustees, if not all, had spoken to Senator Burzynski recently on the priorities of the university and the absolute importance of some of those items that the university had to have in the dark days of the budget discussion.  You gave us your word that you would do your best for us, and you were successful.  I want to thank you for your success in that endeavor.

We all thank you, Senator Burzynski, and Representative Wirsing for all your help, Chair Sanchez said.  We are so fortunate to be blessed with that kind of leadership in Springfield.

It is always bittersweet, when individuals who have contributed so much to the growth and excellence of NIU announce their departure President Peters said, but I would like to recognize a few individuals at this time.  This is the last Board Meeting for Dean Jerry Zar of the Graduate School.  I cannot think of anyone who has had more of an impact on this institution than Dean Zar.  So, Jerry, on behalf of the whole university community, I want to thank you.  Also, leaving the university, President Peters said, is our Director of International Programs, Manfred Thullen.  Dean Thullen has greatly enhanced our International Programs, and he will be missed.  Dr. Williams recognized Mr. Judd Baker, Director of Holmes Student Center, who is retiring after 13 years with the university.  Down through the years, the Board has met in this facility, Dr. Williams said, so you already have seen the success of Judd’s leadership and his efforts to provide for us in Holmes Student Center.  We are very pleased with the great job that Judd has done, and we wish him well.  I also want to recognize Ms. Diana Strink, our Assistant University Budget Officer, who works on all of the budgets from all of the units and colleges throughout the university, balancing the $260 million mentioned earlier to make sure that when we come to the end of the fiscal year, we can pay our bills.  Diana has served our institution for over 27 years.  When we get down to the kinds of rescissions and types of balancing acts that we have to go through in these times, Dr. Williams said, it is Diana who does that work.  She has done a tremendous job, and we also wish her well in her retirement.

This is kind of a bittersweet thing, Chair Sanchez said, your loss will be felt.  The best to all of you as you move on. 

PUBLIC COMMENT

The Chair asked Board Parliamentarian Kenneth Davidson if any members of the public had registered a written request to address the Board in accordance with state law and Board of Trustees Bylaws.  Mr. Davidson noted that no timely requests had been received for public comment at that Board meeting.

REPORTS OF BOARD COMMITTEES AND BOARD LIAISONS

Executive Committee

There was no report from the Executive Committee.

Academic Affairs, Student Affairs and Personnel Committee

Committee Chair Barbara Vella reported that the Academic Affairs, Student Affairs and Personnel Committee met on Thursday, March 7.  Items brought for approval by the Board of Trustees are:  a request for a new undergraduate Minor in Nutrition, Dietetics and Hospitality Administration; requests for a new Emphasis in Manufacturing Systems and a Specialization in Pedagogy and Curriculum Development in Physical Education; a request to delete four specializations in the master’s program – Specialization in Sport Management, Specialization in Curriculum Leadership, Specialization in Outdoor Education and Specialization in Secondary Education; the appointment of the Dean of the College of Education.  The last item brought for action is a request to move submission of tenure and promotion recommendations to the Board of Trustees from March to June in order to facilitate the evaluation process.  Three information items will be presented:  North Central evaluation accreditation, which was last done in 1994; 2002 faculty emeritus recognition; and the university’s report on programs and centers, which were reviewed by the academic planning counsel for 2001‑2002.

Finance, Facilities and Operations Committee

Committee Chair Boey reported that the Finance, Facilities and Operations Committee met on June 6.  At that meeting, Trustee Boey said, we considered and approved recommendations for Fiscal Year 2004 budget guidelines; Fiscal Year 2003 contracts and agreements for items such as NIU Foundation services, document services, copier and controller system and Huskie Bus service; capital improvement projects and related items, including budget for the convocation center, family violence center basement build‑out and equipment, and chilled water West Campus infrastructure improvement items.  The Committee received the following reports:  periodic report of transactions in excess of $100,000; periodic report on investments; Fiscal Year 2003 appropriated budget update; campus chilled water project; Altgeld Hall project; and a final report and presentation on the Founders Library project.   Most of these items are included in the President’s Report for Board approval at today’s meeting.

Legislation, Audit and External Affairs Committee

Committee Chair Siegel reported that the Legislation, Audit and External Affairs Committee met on May 28 in DeKalb.  Trustee Skoien was present via teleconference.  Due to the lack of a quorum, we were unable to hold an official committee meeting, but we proceeded with an informational meeting.  The legislative session was a challenge, Trustee Siegel said.  I personally contacted 20 members of the legislature, and other members of the Committee were involved in similar endeavors.  I want to thank the members of this committee for efforts above and beyond the call of duty and to also thank those other members of the Board of Trustees who fought hard to protect NIU’s budget.

Kathy Buettner gave a detailed overview of the status of NIU’s FY03 operating and capital budgets, which were, at that point, still pending before an overtime session of the General Assembly.  Key substantive legislation pending in Springfield was discussed, including a report on the passage of legislation to extend the 30‑and‑out provisions of the SURS system.

Ms. Buettner reported that the university would be hosting a reception to present awards for Distinguished Service to Higher Education to Congressman Donald Manzullo and IRS Commissioner Charles O. Rossotti on May 30 in Rockford to recognize their assistance on obtaining relief for higher education from the unfunded federal mandates contained in the Taxpayer Relief Act of 1997.  Their actions and passage of new clarifying federal legislation saved over $100 million for higher education – costs our students will not have to bear.

Forwarded by the Committee were several honorary resolutions with a recommendation for approval.  The Committee heard a report on the FY01 Financial and Compliance Audit released by the Auditor General’s Office late this spring.  I am pleased to report that NIU had no repeat findings this year, Trustee Siegel said, and that the tuition waiver accountability problem has been cleared to the satisfaction of the auditors.  NIU has reached full compliance with tuition waiver policies set by the IBHE and this Board of Trustees.

The Committee also discussed the possibility of adding forensic accountants to the internal auditing staff and several possible new legislative initiatives.

We had intended to go into Executive Session in our meeting, Trustee Siegel said.  However, since we lacked a quorum, I met with several people after the meeting and will report on that to the Board in its Executive Session.  With our Committee membership at four, a quorum requires us to have three of the four members in attendance.  In the past, with three members, we needed only two Trustees in attendance.  I noted that outside of administrative, supporting staff and deans, there were no visitors in attendance at the Committee meeting.  It appears that we have more visitors attending our Committee meetings when they are held in Hoffman Estates.  Since it appears that more visitors attend our meetings in Hoffman Estates, and it is easier for the members, as the Committee is now constituted, to hold those meetings in Hoffman Estates, Trustee Siegel said, unless there is a pressing reason to have meetings in DeKalb, our future meetings will be held in Hoffman Estates.

Illinois Board of Higher Education

There was no report from the Illinois Board of Higher Education.

Universities Civil Service Merit Board

Board Liaison Barbara Giorgi Vella reported that the Board of Directors of the Universities Civil Service Merit Board met and approved the selection of Tom Morelock as director of the commission.  Tom Morelock has been with NIU for the last four years as Director of Operations in Human Resource Services.  He has been responsible for several areas in Human Resource Services, including the records, employment, labor relations and operating staff functions.  He is also a member of several NIU campus committees related to employee relations and the PeopleSoft Human Resource Information System.  He previously served at Illinois State University as a labor relations specialist, at the Board of Regents Chancellor’s Office as assistant vice chancellor for human resource administration, and in the private sector in various capacities.  The Merit Board found Mr. Morelock’s extensive background in human resources, particularly with the civil service, made him an ideal candidate for this position.  He had a wonderful resume, she said, and we were very pleased that accepted the appointment.  We look forward to the fact that we will have a colleague at the commission.

Northern Illinois University Foundation

NIU Foundation Liaison Robert Boey deferred to the President of the Foundation, Ms. Mallory Simpson, for the Foundation report.  With ten days left in our fiscal year, Ms. Simpson said, we are working very hard on some final initiatives for this year.  It has been a productive and successful year for the Foundation and Development program, and we expect to receive some additional gifts in the next ten days.  A major Foundation‑sponsored event is being held at Ravinia on Sunday, hosting major donors and potential donors.  I would like to publicly thank Chair Sanchez for the wonderful reception he hosted recently at Naperville Country Club for about 70 donors and potential donors.  One of our primary objectives was to build pride in NIU, she told the Chair, and I think we accomplished that objective.

Throughout the year, we have had about 700 major donors and potential donors attend a variety of events designed to excite them about the quality of NIU, Ms. Simpson said.  These things will build and expand in the future.  Last Friday the Foundation Board of Directors had an especially lively discussion on a number of issues relating to development, marketing and alumni involvement, and the board approved a number of measures to help position the Foundation and the university for a very bright future.  The board, she said, particularly gave President Peters a very clear and strong message about their solid support for his leadership.

We have secured several major new commitments since the last meeting, Ms. Simpson reported.  Most of these major commitments are designated by donors for very specific projects – priorities that have been identified; they do not come in with unrestricted nature.  A total of $330,000 in commitments has been received for naming rooms in Barsema Hall, including a recent pledge of $150,000 from Caterpillar.  There has been an impact on our gift commitments due to the economy and the stock market.  Recently a number of donors we had expected to make commitments to Barsema Hall have had to defer those decisions.  The intention is there and the commitments will be made, but they are postponing because of economic conditions.  The final payment of Dave and Linda Nelson’s $250,000 gift to name the VIP Suite in the convocation center was received last week.  We have two extraordinary new donors to the Tri‑County Community Health Center, she said.  Douglas Roberts, through his Douglas Roberts Trust, has committed $250,000 to go an into endowment for Tri‑County in addition to a $14,000 expendable gift.  John Bass, director of estate and gift planning, has secured from David Lehman a commitment for $1.5 million from his estate to go into the endowment for Tri‑County and a commitment of $20,000 a year for the remainder of his life for expendable purposes for Tri‑County.  We are very pleased with these extraordinary results.

We should soon be receiving the balance of Dennis and Stacey Barsema’s pledge for Barsema Hall, Ms. Simpson stated.  With that gift, our total of gifts received to date this year is about $11.2 million.  We are planning the dedication of Barsema Hall, the only completely privately funded new building at a public university in the state of Illinois, for September 23.  I want to, from the development perspective, thank the Board of Trustees, President Peters, Ms. Buettner, Dr. Williams and Senator Bursynski and Representative Wirsing for working so hard to protect the state’s commitment for the FF&E, which has allowed us to keep our promise to the Barsemas.  We have set a goal for ourselves and our relationship with the Barsemas to exceed their expectations in every aspect of their relationship with the university, and this is allowing us to do that.  We recently shared with the Barsemas an article about the controversy in an institution in Ohio over the construction of a new College of Business building and the disappointment of donor.  The Barsemas sent us back an e‑mail that said I hope you know how impressed we are with the management of the leadership of Northern Illinois University and particularly, the very special care and attention, Eddie, you have given the project.  So, they are happy.

Tri‑County Healthcare is probably the best kept secret in the surrounding three counties, Trustee Boey said.  Tri‑County is a health service center for people who cannot afford their own private doctors for themselves and their children.  This is the only major center I know of in three counties that the poor can go to for health care.  The center is staffed by doctors who are either in semi‑retirement or retirement who care enough to donate their services.  It is really an important health care center for the three counties in the area.  They were in danger of going out of business, he said, and with that would go the health care for all those people.  So, these donations were very important.

We sometimes take for granted the wonderful work and stewardship that our Foundation leadership provides us, Chair Sanchez commented.  With the budgetary constraints we have, thank goodness we have the wonderful success that Mallory, her team and even her boss participate in and support, because we are the beneficiaries. 

EXECUTIVE SESSION

Chair Sanchez asked for a motion to close the public meeting to conduct an executive session to discuss the following subject authorized by the Illinois Open Meetings Act:  litigation and risk management matters as generally described under §2(c)(11) and (12) of the Open Meetings Act, property matters as generally described under §2(c)(5) and (6) of the Open Meetings Act and Executive Session Minute matters are generally described under §2(c)(21) of the Open Meetings Act. 

Trustee Siegel so moved, seconded by Trustee Skoien.  A roll call vote of the Trustees to recess to Executive Session was unanimous.

BOARD OF TRUSTEES MEETING RECONVENED

Chair Sanchez reconvened the public meeting of the Board of Trustees at approximately 11:52 a.m.

PRESIDENT'S REPORT NO. 31

University Recommendations Forwarded by the Board committees

Action Items

Agenda Item 9.a.(1) – Fiscal Year 2004 Budget Guidelines

Many serious items have been approved here, Dr. Peters said, and we appreciate that.  I would like to comment on a few of them.  Even though we are still struggling with the FY03 budget, it is time to set the standards for the Fiscal Year 2004 budget, and you have approved those guidelines.  I want to note that it is my priority, the priority of the campus and the Board’s priority that the top priority for the university be our salary package for faculty and staff, which is set at five percent.

Agenda Item 9.a.(2) – Fiscal Year 2003 NIU Foundation Professional Services

Agenda Item 9.a.(3) – Fiscal Year 2003 Document Services Copier and Controller System

Consent Agenda Items.

Agenda Item 9.a.(4) – Convocation Center Furniture, Fixtures and Equipment Budget Authorization

Through diligent work on the part of Athletics and the convocation center group, President Peters said, we have raised in the range of a $1.1 million dollars to help with the operations and acquisition of furniture in the convocation center.  With that and with some revenues that will be reaped from bond investment, we will be able to set the equipment budget at 6.4 percent without affecting one dime of student fees.

Agenda Item 9.a.(5) – Family Violence Center Basement Build‑Out and Equipment - Capital Project Update

Agenda Item 9.a.(6) – West Campus Chilled Water Distribution and Cooling Towers – Performance Contract

Agenda Item 9.a.(7) – West Campus Infrastructure Improvements

Agenda Item 9.a.(8) – Holmes Student Center Ballroom Roof Replacement – Capital Project Approval

Agenda Item 9.a.(9) – Huskie Bus Contract

Agenda Item 9.a.(10) – Request for a New Minor

Agenda Item 9.a.(11) – Request for a New Emphasis and a New Specialization Within Degree Programs

Agenda Item 9.a.(12) – Request to Delete Specializations

Consent Agenda Items.

Agenda Item 9.a.(13) – Appointment of the Dean of the College of Education

Another item the Academic Affairs, Student Affairs and Personnel Committee had endorsed, and you have approved is the appointment of our newest dean, Dean Christine Sorensen of the College of Education.  The President recognized Dean Sorensen. 

Agenda Item 9.a.(14) – Request to Move Submission of Tenure and Promotion Recommendations to the Board of Trustees from March to the June Board Meeting

Consent Agenda Items.

University Reports Forwarded from the Board Committees

Information Items

Agenda Item 9.b.(1) – Periodic Summary Report of Transactions in Excess of $100,000

Agenda Item 9.b.(2) – North Central Association Accreditation

Agenda Item 9.b.(3) – 2002 Faculty Emeritus Recognition

Agenda Item 9.b.(4) – 2001-2002 Program Review Summary

Consent Agenda items.

Items Directly from the President

Agenda Item 9.c.(1) – Summary of Grant and Contract Awards

Agenda Item 9.c.(2) – Property Acquisition

Agenda Item 9.c.(3) – Policy Statement Concerning Privacy of Protected Health Info

Consent Agenda items.

CHAIR'S REPORT NO. 22

Agenda Item 10.a. – Resolution – Student Trustee Alejandro Alaniz

This resolution honors Alex Alaniz, our outstanding and outgoing Student Trustee, Chair Sanchez said.  I want to personally thank you, Alex, for your leadership and outstanding service to this Board of Trustees.  You have been a valued member of this Board and an excellent representative for the students.  Their viewpoints have been heard because of your insight and perspective, and you did an outstanding job.  Chair Sanchez asked for a motion to approve the Resolution honoring Alex Alaniz’s contributions to the Board.  Trustee Boey so moved, seconded by Trustee Skoien.  The motion was approved.

RESOLUTION

WHEREAS Public Act 89-4 created a body politic and corporate known as the Board of Trustees of Northern Illinois University to operate, manage, control and maintain Northern Illinois University in accordance with the rights, powers and duties vested by law in such Board; and

WHEREAS Alejandro (Alex) Alaniz was elected by his constituents at Northern Illinois University to represent their interests and has faithfully served the Board of Trustees of Northern Illinois University as its eighth Student Trustee; and

WHEREAS in said position, Mr. Alaniz capably and honorably discharged those duties and responsibilities while at the same time keeping in the mind the interests of all of the people of the State of Illinois in addition to the well-being of Northern Illinois University; and

WHEREAS Mr. Alaniz has demonstrated devotion to, cooperation with, and support for the Board, Northern Illinois University, and the faculty, staff, and student personnel of same; and

WHEREAS the Board of Trustees and Northern Illinois University have received the benefit of his helpful insights which have been of special worth; and

WHEREAS the Board of Trustees wishes to officially express its appreciation for the many far-reaching contributions by Mr. Alaniz to all of the above-mentioned interests of this Board,

NOW THEREFORE LET IT BE RESOLVED that the Board of Trustees of Northern Illinois University in formal meeting herein assembled, extends its grateful appreciation to Mr. Alejandro (Alex) Alaniz for his outstanding and loyal service.

BE IT FURTHER RESOLVED that this RESOLUTION be presented to Mr. Alaniz and a copy of this document be placed in the official files of this Board as a part of the permanent record of the great State of Illinois and as a lasting tribute to the performance and accomplishments of Mr. Alejandro (Alex) Alaniz. 

Adopted in a regular meeting assembled this 20th day of June, 2002.

                    BOARD OF TRUSTEES OF

             NORTHERN ILLINOIS UNIVERSITY

                      Manuel Sanchez, Chair

Attest:         Robert T. Boey, Secretary

Student Trustee Alaniz made brief remarks as follows:

It was an honor and a privilege to serve as Student Trustee here at Northern Illinois University.  Through my years here, I have been fortunate to get to know a lot of people.  Former Student Trustees such as Nolan Davis, James Barr, and this year, I am extremely fortunate to know my successor.  That is something I will remember forever.  I am very excited for Mr. Jesse Perez.  I am confident of his ability to serve on the Board of Trustees, and I know he will do an excellent job.

I would like to thank all the Board members for devoting so much time to the Board.  These women and gentlemen are extremely busy, always on the run, but they always find time to devote to our university.  On behalf of all the students here at Northern Illinois University, I would like to thank you all.  Also, serving on this Board was a great learning experience that cannot be learned in a classroom.  I learned many things and met a lot of new people.  It was a wonderful time in my life.  I would like to thank everybody for that.  Unfortunately, the budget cuts stressed me out a little bit.  That was the only thing, if I could change something, that I would change – and I am sure most of us would.  So, on behalf of the students here at NIU, I would like to thank President Peters for his leadership and for his dedication in upholding the standards of our education here.  He always keeps in mind the quality of education for students, and we appreciate it.  Last, but not least, I would like to recognize and thank my family.  My mother, Dr. Sylvia Fuentes, is the new director of the URL, and I would like to thank her for all her love and support.

The Board of Trustees has been extremely fortunate from day one in the kind of representation and quality we have had in our Student Trustees, Trustee Boey said.   I am proud to say that you fit right in line with the same kind of quality students, and that allows us to do our work extremely well.  Thank you for all the help you have given us, and good luck.

Echoing both Trustee Siegel’s and Trustee Boey’s comments, Chair Sanchez said, for seven years, we have had some of the finest ambassadors serve on this Board of Trustees.  You wore that banner in a very appropriate fashion, and the students should be proud.  I know your family is, and you should be proud yourself of the way you conducted yourself and the way you represented the student body here.  My heartfelt congratulations on a job well done, he said, and your future is going to be determined by the wonderful foundational skills that you secured here.  Thank you very much.

On behalf of the staff and the university, President Peters said, it has been a pleasure.  You are quite representative of the great student leadership we have here at Northern Illinois University.

Agenda Item 10.b. – Executive Session Minutes Release

The Illinois Open Meetings Act requires public bodies to review the minutes of their executive sessions on a semiannual basis and determine what parts of the minutes they should make available to the public because they no longer require confidential treatment.  Upon review and advice of the Board’s Parliamentarian, Mr. Ken Davidson, who is also our Corporation Counsel, Chair Sanchez said, I recommend that the Board approve no additional release from confidentiality of any of the previously unreleased sections of the executive session minutes at this time.  Those sections which are still subject to confidentiality, together with sections from subsequent meetings, will be considered again in six months.  Chair Sanchez asked for a motion to approve this review and determination as stated in the meeting materials.  Trustee Siegel so moved, seconded by Trustee Skoien.  The motion was approved.

Agenda Item 10.c. – Oath of Office – New Student Trustee

Now, Chair Sanchez said, I would like to welcome our new Student Trustee, Jesse Perez.  Jesse is the second elected Student Trustee for the University.  He has served the Student Association as its Chief of Staff.  He has also served as President of Sigma Lambda Beta Fraternity; Vice President, Order of Omega; Founder, Association for the Latino Movement and Accreditation; and is a current Member of the City of DeKalb Liquor Commission.  Jesse has earned his B.S., Operations, Management and Information Systems from Northern Illinois University, is currently a student-at-large seeking acceptance into the MBA Program at NIU.  His awards and honors include Director of University Programming and Activities Leadership Award; NIU Senior Leadership Award; NIU Leadership Institutional Tuition Waiver; NIU Community Service Recognition; Alpha Phi Alpha Best Student Leader Award; Who’s Who Among Students in American Universities and Colleges; and Nicholas Ryan Academic Scholarship Recipient.

We are delighted to have you join the Board this year, the Chair said.  Your service in student and community government and experience on campus has provided you with a depth of knowledge that will be a tremendous asset to this Board.  This Board takes the opinions and counsel of the Student Trustee very seriously, he said, and I want you to know that I am looking forward to working with you next year as are my fellow Trustees.

Chair Sanchez then administered the oath of office to Mr. Perez for his position as NIU Student Trustee to be effective as of July 1, 2002, as follows.

I, Jesse Perez, do solemnly swear that I will support the Constitution of the United States, the Constitution of the State of Illinois and the laws thereof, and that I will faithfully discharge the duties of Student Trustee for the Board of Trustees of Northern Illinois University to the best of my ability.

Mr. Perez made the following comments: