Approved
NORTHERN MICHIGAN UNIVERSITY
BOARD OF TRUSTEES
Minutes of the Regular Session
of
A formal session of the Board of Trustees of Northern Michigan University was held on Thursday, July 12, 2012, in Cohodas Hall, at Northern Michigan University, Marquette, Michigan. The meeting was convened at 8:00 a.m. in the Board of Trustees Room, 602 Cohodas, by Chair Brian D. Cloyd.
Trustees present included:
Brian D. Cloyd, Chair Jon G. LaSalle H. Sook Wilkinson (via phone)
Stephen F. Adamini L. Garnet Lewis Gilbert L. Ziegler
Stephen L. Gulis, Jr. Richard M. Popp David S. Haynes, ex officio
Senior staff and counsel present included:
Catherine L. Dehlin, General Counsel
Paul L. Lang, Provost and Vice President for Academic Affairs
R. Gavin Leach, Vice President for Finance and Administration and Treasurer of the Board
Theresa Nease, Executive Assistant to the President and Secretary of the Board
Ms. Michelle Kimball, President of UAW Local1950, addressed the Board regarding the financial plight of some members of UAW Local 1950. She thanked the administration for the progress at the bargaining table, said the union recognizes the budget constraints put upon the University by the State and inflation, and said UAW Local 1950 believes they have already done their share in the concessions.
Mr. Jon Barch, President of UAW Local 2178, addressed the Board regarding the fairness of compensation at NMU and requested that the Board be open to other health care plan options. He reviewed employee compensation history from the Administrative/Professional union members’ perspective and requested that the University make compensation increases for workers the focal point of the current and future budget prioritization discussions, which will lead to increased employee satisfaction and productivity.
Prof. Michael Andary, President of the NMUFA Union, spoke in support of the other bargaining units. He said the NMU-FA have settled their contract with the University. They accept the contract, but are not satisfied with the results. They hope to continue to work with the administration through good and bad times. He requested that the University consider putting part of the surplus the University has seen each year towards investing in employees as he believes employees are the number one piece of the puzzle that makes the University thrive.
Mr. Jeff Smith, President of the AFSCME Union, addressed the Board regarding concerns the members of their local have about the future of AFSCME workers at NMU, the future of collective bargaining, declining health care benefits, declining employee morale, and declining wages. He asked that the Board of Trustees support the workers as the workers have supported the University for many years.
Dr. Ronald Sundell, President of the AAUP, addressed the Board regarding fairness and equity issues for AAUP members. He said employees need to feel valued and be adequately compensated in both salary and benefits. He reviewed data on NMU faculty workload in relation to current compensation levels and expressed the need to increase total compensation in order to keep up with NMU’s peer institutions. He stated that funds are clearly available to correct this issue as NMU has had a budget surplus each year. The University has funds available and needs to start investing not only in bricks and mortar but in NMU’s most valued resource – faculty and staff.
Chair Cloyd thanked members of the faculty and staff in attendance and said on behalf of the Members of the Board of Trustees how truly they are appreciated for their work and dedication. The faculty and staff are critical to the success of the University.
NMU DISPLAY INTRODUCTION
Ms. Melissa Matuscak, DeVos Museum Director/Curator, described the faculty and student artwork as well as artwork from the museum’s permanent art collection displayed in the President’s Office reception area. The theme of the display is artists that are inspired by the history and natural beauty of the area. Her hope is that this display will be a reminder of the mission of the University and be an inspiration to continue that mission. She encouraged the Board to stop by the Museum to see the current display.
Mr. Daniel Truckey, Beaumier Museum Director, described the historical display in the Board of Trustees meeting room and in the President’s Office reception area. He thanked his student assistant, Steven Glover, for selecting the artifacts for the display. He also thanked Dr. Russ Magnaghi as he is responsible for the University having the articles for display as he collected things over the years from various offices and people.
MOMENT IN NMU HISTORY
Dr. Russell Magnaghi, University Historian, presented on the legend of Ms. Ethel Carey. Ms. Carey came to NMU from Cadillac, MI as Dean of Women in January of 1924. She was hired by President Munson. According to Mr. Don Bottom there was a romantic interest as well. Ms. Carey remained as Dean of Women until her retirement in 1956. President Munson was concerned about improving the University and the State Board of Education was concerned about moral standards of teachers so they put the job into Ethel Carey’s hands. As a result, she came across as an “evil witch of the north.” There was a dress code – women could not wear pants on campus nor could they wear red dresses as they were inflammatory. When the students were dancing in the 20s and 30s Ethel Carey would come with a ruler and keep them one foot apart. This was the standard for the whole country at the time. She monitored who students brought as a date, and she knew everyone in town. Personal grooming was also a concern. There were no dorms, and there was a whole list of regulations for curfew in boarding houses on the east side of Marquette. Red Christmas lights were not allowed in buildings--all had to be green and gold. When the evening came along the fraternity brothers would come over and change all the lights to red. However, Ethel Carey was concerned about students. Once a student had not been seen on campus for awhile, and she and Mr. Bottom tracked him down in his boarding house. It turned out he was suffering from meningitis. She and Mr. Bottom brought him to the hospital. She had the legacy of being evil, but many students enjoyed her and a lot of positive things happened. She was rather vain, and at first
Dr. Magnaghi was not able to find her death notice. She didn’t want people to know when she had died. He finally tracked it down in the town of Fenton and found she had died in 1962.
PRESIDENT’S REPORT
President Haynes welcomed Dr. Paul Lang as Provost and Vice President for Academic Affairs. Applause followed. Dr. Haynes recognized the work of the Search Committee and said they did an outstanding job.
President Haynes welcomed and recognized Mr. Forrest Karr, Athletic Director and Special Assistant to the President. Applause followed.
Discussions continue between NMU and Duke LifePoint. NMU will submit a letter of support to the Attorney General. Academic and service programs and facilities use continue to be the topics of the discussions.
He announced that NMU would be the first in Michigan to offer a pure in-state tuition program to out-of- state veterans. NMU sent a team from ROTC to a Job Fair in Detroit sponsored by The United States Secretary of Veterans Affairs. Dr. and Mrs. Haynes hosted the Head of Michigan Veteran’s Affairs at their home during a visit to Marquette.
The University is considering turning the Carillon area in front of the University Center into a veteran’s memorial. Donors are currently being solicited as the hope is to have benches and a plaque installed in the park area. The Barracks Boys sign and the Veteran’s rock currently reside in this area.
President Haynes announced a gift of a parcel of land (140 acres east of town near the NMU Golf Course) to NMU from Dr. John English. The land will be used for faculty and student research.
NMU is moving into a new hockey league as the CCHA is disbanding. President Haynes and Forrest Karr recently attended a meeting to discuss the new league. They have been asked to work with the league to bring a playoff game to Grand Rapids to ensure Michigan gets into the rotation. Efforts continue to market the GLIAC sports around the league and to bring new members into the league.
President Haynes announced a new “Roads Scholar Tour” that will bring a NMU presence to five major cities in the Upper Peninsula. The first visit will be to Iron Mountain on August 14 and will involve taking faculty members, students, coaches, athletes, and members of the administration on the University bus. Visits will be conducted at the various high schools and businesses and the evening will culminate with a reception for area community leaders and NMU alums. These tours will be used for recruiting, marketing, developing relationships, and fund raising.
President Haynes has been working with Dr. Paul Lang, Mr. Robert Eslinger, and Dr. Tawni Ferrarini on the development of a current Economic Impact Study. The study will outline how NMU and the people of NMU impact local business and the cultural quality of the area. The study will be distributed to the Board at the September meeting.
President Haynes said he is working with Mr. Forrest Karr on reestablishing a game day presence on campus for all NMU sports. Meetings continue with downtown business people to discuss the possibility of closing down Third Street and having businesses have their products available outside prior to the games. The first football game is September 6. It is the hope to have some of this in place by that time.
President Haynes presented pictures of the NMU presence in the 4th of July parades in Ishpeming and Marquette. He thanked Ms. Deanna Hemmila, Director of Community Corporate Relations, for organizing this event. 116 NMU faculty, staff and students participated in the Marquette parade and 77 participated in the Ishpeming parade.
FOCUS DISCUSSION
Budget and Tuition Discussion
Mr. Adamini reviewed the discussion held on Wednesday at the Finance Committee meeting.
A. To increase the Fiscal Year 2011-12 Board approved resident undergraduate tuition and fee rate by $147.70 per semester or from $4,207.02 to $4,354.72 per semester ($295.40 per year; from $8,414.04 to $8,709.44 per year)
B. No increase in the Fiscal Year 2011-12 $225 One-time Student Athletic fee.
C. To increase the Fiscal Year 2011-12 Board approved non-resident undergraduate tuition and fee rate by $231.70 per semester.
D. To increase the Fiscal Year 2011-12 Board approved resident graduate tuition rate by $15 per credit hour.
E. To increase the Fiscal Year 2011-12 Board approved nonresident graduate tuition rate by $21 per credit hour.
F. To increase the Fiscal Year 2011-12 Board approved MBA graduate tuition rate by $21 per credit hour.
Discussion followed. President Haynes and Mr. Leach presented on the analysis of the key factors that went into the tuition setting process. (Addendum # 1).
Trustee Adamini said the Board does not like to increase tuition, but the State’s share of the University’s budget is currently 40%, which is down from 68% in the 1980s and 85-95% in the 1960s. He said we all recognize the value in general to society to having an educated population, and he truly believes the public shares the obligation to provide a quality to education to all people, not just to those who can afford it. The University has been consistently able to provide a very high quality product at a very affordable price. The University is doing its fair share and more in seeing that the people are getting a quality education at an affordable price.
Trustee Popp agreed. He recognized the University for being efficient. He thanked the Finance Committee, President Haynes, and Vice President Leach for laying out the facts and data so clearly. The review of clear facts and data will result in the best possible solution that the Board can determine.
Trustee Ziegler raised concerns about student debt and the increasing costs of higher education. He is wondering how many first generation college graduates will have that opportunity in the future.
Trustee LaSalle expressed frustration about the impact on students and families and said this is a society issue and one that will not be solved by the NMU Board of Trustees. Those societies that invest in their human resources through education for their people will be the countries that lead the world in the future. The United States is one of the few free countries that graduate their students with debt. Every year he has been on the Board tuition has been increased because the State has contributed less. He would like to say no increase to tuition, but then employees get laid off and programs get cut. This will devalue the cost of tuition.
Trustee Wilkinson said she appreciates the great work of the staff, faculty, and administration is doing at NMU to keep costs of higher education down. NMU is doing its best to keep education affordable. She challenged that it is also up to the public and parents to think about what commitment they are making to ensure their children are receiving the best education possible. The proposed increase is a reasonable amount to continue the University’s mission.
Trustee Cloyd pondered the difference between state and private institutions stating that it is difficult to tell the difference these days. In 1972 when the state was providing 72% of the funding it was easy to tell the difference. He said the Board needs to do what they have to do to make sure they are protecting the interests of this institution.
Aye Nay
Stephen F. Adamini
Brian D. Cloyd
Stephen Gulis, Jr.
Jon G. LaSalle
L. Garnet Lewis
Richard M. Popp
H. Sook Wilkinson
Gilbert L. Ziegler
The motion was thus approved with 7 for the motion and 1 against.
RECONVENE -- Chair Cloyd reconvened the meeting at 9:55 a.m.
ASNMU REPORT
Mr. Ben Stanley, President of the ASNMU, updated the Board on ASNMU activities. (Addendum #2)
President Haynes, Board Chair Cloyd, and Vice Chair LaSalle previously met with Mr. Stanley and discussed communication. President Haynes will be meeting with representatives of the ASNMU, three vice presidents and representatives from Student Affairs to further discussion the issue. They will come back to the Board with a set of joint recommendations.
COMMITTEE REPORTS
Executive
Mr. LaSalle, Chair of the Executive Committee, reported on the meeting held on Wednesday,
July 11, 2012. A copy of the report is appended to these minutes. (Addendum #3)
The Board took the following action:
Trustee Gulis asked for clarification that this policy would only be in effect for the duration of time when the current individuals are in their positions. Trustee LaSalle agreed stating that the policy would only be appropriate when the Vice President and President are spouses. Chair Cloyd said the Board will continue to look at best practices of the Board of Trustees and the University Foundation.
It was moved by Trustee LaSalle, seconded by Trustee Lewis, and unanimously supported by the Board to approve a budget of $52,000 for Kaye House roof repairs as recommended by the Vice President for Finance.
It was moved by Trustee LaSalle and seconded by Trustee Lewis to approve the Interim Presidential Employment Agreement dated May 15, 2012.
Mr. LaSalle distributed a summary of the Agreement and discussion followed.
Mr. Popp asked for clarification on the third year of the appointment. Mr. LaSalle said the third year would be a sabbatical year for President Haynes. This scenario assumes a new president being hired around July 1, 2014. The third year of President Haynes’s contract would commence July 1, 2014 and would be a sabbatical year. However, he would be available the first half of that year to the new president and Board as needed. The second part of the year would be on full sabbatical in preparation for his return to the classroom. This contract has a three-year duration and ends June 30, 2015.
Trustee Ziegler asked if a three-year contract is unusual. Trustee LaSalle said it is not unusual, and presidential contracts run from a one-year agreement to an evergreen contract. A three-year contract was developed to fit NMU.
Trustee Ziegler asked when a presidential search would be started. Trustee LaSalle said it is up to the Board to decide when to start the search. It was agreed to hire an interim president for a few years and at some point in the future if the Board wishes to find a new president, a search will be commenced. Trustee Cloyd said it was a common understanding that the Board will commence a search for a new president at the start of the next year.
Trustee Wilkinson (via phone call) requested that the handout be read for her benefit. Trustee LaSalle said the points of the contract include:
1.) Duration of Agreement: This is a three-year agreement terminating June 30, 2015. The third year would be a sabbatical year for President Haynes.
2.) Compensation: The same wages and benefits paid to President Wong.
3.) Granting of Tenure: Tenure is granted in the Department of Political Science and Public Administration.
4.) General: All other terms are the same as current and past presidential employment agreements including amendments.
Trustee Gulis said he is assuming internal and external legal review was done. Trustee LaSalle said Cathy Dehlin, General Counsel, worked on behalf of the Board of Trustees and the Executive Committee also hired outside counsel with specific expertise in higher education employment contracts.
Trustee Adamini said he’d like to make it clear that the reason he will be voting no on the motion is more directed at the process than the individual. He is not here today suggesting the appointment of David Haynes be terminated. He has some questions and would be prepared to vote for this contract if the Board were to commence the search for a new president immediately during this academic year. He expressed concern that if another president is hired in the third year, President Haynes will still be paid for the third year. If he only serves for two years, it is like getting paid a year and a half salary for each of the two years. He also expressed concern that this would put constraint on a future Board who may be reluctant to hire a new president when that third year NMU would be paying two presidents. He is concerned there was no discussion at a public meeting prior to the press release announcing Dr. Haynes for the position, and the NMU Board of Trustees bylaws are clear that decisions need to be made at a public meeting. He said he is not saying that anyone is at fault or there was any bad intention. Unfortunately, the Board did not permit stakeholders of the University to give their comments. He said he believes that due to the manner in which the process went Dr. Haynes is unfortunately burdened with the perception by a large number of people in the general public and stakeholders of the University that the hiring decision was based on personal relationships and friendships. He would prefer to approve an Interim contract and start a search immediately. He would hope Dr. Haynes would put his name in for the position, and if successful, then he would not be burdened by the perception that this is a decision that was made by the Board without public discussion, behind closed doors, and based on his friendship rather than his qualifications.
Trustee Popp agreed the manner in which the communication happened didn’t do the Board any favors, and yet he is extremely comfortable with the vote on May 15 that the Board did the right thing in hiring President Haynes. He said much has been accomplished since Dr. Haynes was appointed president. In the end, there is no evidence to the contrary, and he believes this appointment and contract are the right thing for the University.
When asked to summarize his comments, Trustee Adamini said under the Constitution of Michigan the Board of Trustees has two jobs: to control the expenditures and hiring of the president. He said this is an important thing, and he expressed dismay about the limited time for discussion of this topic on the agenda.
Trustee Adamini said the Board did not do proper vetting on this appointment. He believes there are still some inconsistencies and a possible conflict of interest in Dr. Haynes’s contracts with NMU and Steelcase for lobbyist duties.
Trustee Popp asked how starting the search now would make a difference. Trustee Adamini said he doesn’t believe the Board received input in the decision from other stakeholders. If the Board starts the search immediately, the Board begins to hear what stakeholders are looking for. If the search confirms the Board selected the best person for the position, then the perception that he got the position based on friendships would be removed.
Trustee Gulis said he hasn’t heard from Dr. Haynes that the Board put a huge burden on his shoulders. The burden the Board has is doing what is best for the University. He is concerned if a contract for Interim President is not signed, there will not be anyone running the University on a day-to-day basis.
Trustee Cloyd said there has been a lot of discussion about relationships and friendships. He puts a lot of value on relationships he has with people. Thirty-five years ago he hired the president of Steelcase, Inc. He was a friend then and now. Many times the new president called him into his office and gave him constructive criticism on one thing or another, and he has appreciated that. He has known Dr. Haynes for 30 years, and he has been a friend for about 10 years. During that 10 year period Dr. Haynes reported to him and the President as the lobbyist and there have been times he has done the same thing with Dr. Haynes. He said they moved on and got the job done. It was considerable sacrifice on the part of Steelcase, Inc. that Dr. Haynes left his relationship with them to take the president position at NMU. It increased Mr. Cloyd’s responsibilities significantly and changed the relationship they had with legislators in Lansing. His support for Dr. Haynes was what he considered in the best interest of the University.
Trustee LaSalle spoke to concerns about input from stakeholders in the academic and larger area communities. During the history of NMU there has not been a search in the hiring of the interim president and action was taken by the Board of Trustees within half days, if not hours, after the resignation of the previous president. We have had comprehensive searches, and the Board is contemplating doing that sometime in the future. Those searches did involve stakeholders in the community and alums. This is not that kind of search. We have known that President Wong’s time at NMU was probably limited as the average tenure of a president is five to six years. The Board anticipated that they would be confronted with a situation of a resignation of the president and discussed succession planning and who would be a good person to step into the presidency to keep things moving. There were several pressing matters at hand, and he thinks the Board found that person in NMU’s ranks and chose him for the right reasons due to what he knows about the internal workings and external environment that impacts NMU. That person was the right choice for a good number of the Board of Trustee members. He can think of no good substantial reason not to approve the contact.
Trustee Lewis moved and Trustee Gulis seconded a motion to Call the Question
On a roll-call vote, the Board voted as follows:
Aye Nay
Mr. Adamini
Mr. Cloyd
Mr. Gulis
Mr. LaSalle
Dr. Lewis
Mr. Popp
Dr. Wilkinson
Mr. Ziegler
The motion failed with five for the motion and three against.
Trustee Adamini said he too values friendships and he has no problem with friends wanting to see other friends do well. Trustee Cloyd said his point is that Dr. Haynes was not selected based on friendship. Trustee Adamini said there is that perception out there, and no one has identified any other candidate for the position. If it was a choice, who did the Board not choose over him? At no time during a public meeting did the Board discuss who else is being considered. He believes that when Dr. Roy was appointed Interim President it was not a three-year contract and the search was started immediately.
Aye Nay
Stephen F. Adamini
Brian D. Cloyd
Stephen Gulis, Jr.
Jon G. LaSalle
L. Garnet Lewis
Richard M. Popp
H. Sook Wilkinson
Gilbert L. Ziegler
The motion carried with six for the motion and two against
Chair Cloyd thanked the Board for the discussion as he knows it is a difficult topic.
Trustee Adamini called to be recognized for a Point of Personal Privilege. Chair Cloyd recognized Trustee Adamini. Trustee Adamini said he wants to assure Dr. Haynes that he hopes him every success in the world. Although he disagrees with the manner in which he was hired, he is now NMU’s president and every success he has means it is a success for this University. He bears him no ill will and will do whatever he can to help him.
Academic Affairs
Dr. Lewis, Chair of the Academic Affairs Committee, reported on a meeting held on July 11, 2012. A copy of the report is appended to these minutes. (Addendum #4)
Mr. Adamini, Chair of the Finance Committee, reported on the meetings held on July 3, 2012 and
July 11, 2012. Copies of the reports are appended to these minutes (Addendums #5 and #6).
APPOINTMENT OF AD HOC NOMINATING COMMITTEE
Chair Cloyd announced the appointments to the Ad Hoc Nominating Committee as follows:
Chair: Dr. H. Sook Wilkinson
Members: Mr. Brian D. Cloyd
Mr. Jon G. LaSalle
The Committee will make a recommendation of Chair and Vice Chair for 2013 at the September 2012 meeting.
It was moved by Trustee LaSalle, seconded by Trustee Lewis and unanimously supported by the Board of Trustees to approve the Formal Recommendations.
ANNOUNCEMENT OF INFORMAL/CLOSED SESSION TO BE HELD IN CONNECTION WITH THE THURSDAY-FRIDAY, SEPTEMBER 20-21, 2012 MEETING OF THE BOARD
President Haynes made this announcement for the public record.
Chair Cloyd adjourned the meeting at 11:04 a.m.
Respectfully submitted,
___________________________________
Theresa M. Nease
Secretary of the Board