1701 East Front Street

Traverse City, MI 49686

(231) 995-1010

trustees@nmc.edu

Board of Trustees www.nmc.edu/trustees

Meeting Agenda Monday, March 24, 2014

at NMC Oleson Center, 1881 College Drive

5:00 p.m. Board Dinner with SGA in Room 112

5:30 p.m. Regular Meeting in Rooms A & B

I. GENERAL BUSINESS

A. Call to Order

B. Roll Call

C. Pledge of Allegiance

D. Review of Agenda and Approval of Additions, Deletions, or Rearrangements

II. REPORTS

E. Student Government Association Presentation

F. Enrollment Report—Chris Weber, Vice President for Enrollment Management and

Student Services

G. Financial Report—Vicki Cook, Vice President of Finance and Administration

H. Foundation Report—Kennard Weaver, Board Representative

I. MCCA Board of Directors Meeting Report—Kennard Weaver and Ross Childs, NMC

Representatives

J. Legislative Issues Report— Timothy Nelson, President

III. UPDATES

K. Board Chair Update—Doug Bishop, Chair

L. President’s Update—Timothy Nelson, President

IV. DISCUSSION ITEMS

V. PUBLIC INPUT

VI. CONSENT ITEMS (Pursuant to Policy A-105.00 Consent Agenda Items)

These items will be adopted as a group without specific discussion. When approving the

meeting agenda, any board member may request that a consent agenda item be moved to the

regular agenda for discussion or questions.

Recommend that the following items be approved:

M. Minutes of the February 24, 2014, meeting

N. Contributions for February 2014

Northwestern Michigan College provides lifelong learning

opportunities to our communities.

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1701 East Front Street

Traverse City, MI 49686

(231) 995-1010 trustees@nmc.edu

Board of Trustees http://www.nmc.edu/trustees/

March 24, 2014 Meeting Agenda

Page 2

Posted Friday, March 21, 2014, 9:00 a.m.

VII. ACTION ITEMS

O. New Policy A-104.00 Board of Trustees Video Recording of Meetings (Pursuant to

Policy A-106.00 Other)

Recommended approval of new Board Policy A-104.00 Board of Trustees Video

Recording of Meetings as presented, on a second-reading basis.

P. Aircraft Purchase (Pursuant to Policy A-106.00 Finance)

Recommend approval for administration to end lease of a Cessna 172 RG aircraft and

purchase two Single Engine Complex Aircraft not to exceed $295,000 to be funded from

the Aviation Capital Reserve Fund.

Q. Line of Credit Renewal (Pursuant to Policy A-106.00 Finance)

Recommend authorization for renewal of the $2 million line-of-credit with Fifth Third

Bank.

R. West Hall Roof (Pursuant to Policy A-106.00 Finance)

Recommend authorization for administration to enter into a contract with Arrow Roofing

to install new roof on West Hall in the amount of $76,178, plus $7,618 contingency, for a

total project budget of $83,796 to be funded through the FY 2014 Plant Fund budget.

VIII. REVIEW OF FOLLOW-UP REQUESTS

Confirm requests made by the Board that require administrative follow-up for information to be

provided to Board at a later date.

IX. ADJOURNMENT

Upcoming Board Meeting Dates: All board meetings are open to the public.

April 21, 2014, Parsons-Stulen Room 101, 2600 Aero Park Drive

May 19, 2014, University Center Room 215, 2200 Dendrinos Drive (3rd Monday due to holiday)

June 23, 2014, Great Lakes Campus Room 112, 715 E. Front Street

July 28, 2014, Great Lakes Campus Room 112, 715 E. Front Street

August 25, 2014, Great Lakes Campus Room 112, 715 E. Front Street

September 29, 2014, Oleson Center, 1881 College Drive

October 27, 2014, Oleson Center, 1881 College Drive

November 24, 2014 Oleson Center, 1881 College Drive

December 15, 2014, Aero Park Laboratories, 2525 Aero Park Drive (3rd Monday due to holiday)

January 26, 2015, Oleson Center, 1881 College Drive

February 23, 2015, Oleson Center, 1881 College Drive

March 23, 2015, Oleson Center, 1881 College Drive

April 27, 2015, Parsons-Stulen Room 101, 2600 Aero Park Drive

May 18, 2015, University Center Room 215, 2200 Dendrinos Drive (3rd Monday due to holiday)

June 22, 2015, Great Lakes Campus Room 112, 715 E. Front Street

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SGA Members and Staff Advisors Attending March 24, 2014 Board Dinner and Meeting 

   

Ryan Byers, President

Elizabeth Fiator, Vice President

Kalizya Nseluka, Secretary

Jonathon J. Breithaupt, Treasurer

Howard Countryman

Richard J. Gray

Erica Kison

Alex Krejci

Nate Lentz

Derek Roush

Jim Thomas

Lisa Thomas - Advisor

Emily Magner – Advisor

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                MEMO Office of Admissions  _________________________________________________________________________________________  

To: Tim Nelson, President Chris Weber, VP for Enrollment Management & Student Services From: Cathryn Claerhout, Director of Admissions Date: March 14, 2014 Subject: Enrollment Update – Summer/Fall 2014 _________________________________________________________________________________________ 

Summer 2014 Enrollment Registration statistics indicate a projected 4% decrease in total enrollment compared with SU2013. Final numbers will be available from the Records & Registration Office after Count Day which occurs June 18, 2014. Enrollment for SU2014 stands at 849 students as of this date, with a projection of 1,273 students. Admission applications show an increase of 7% (438) over last year at this point in time (410) and a slight increase in new admits (277) over last year at this point in time (270).  Projections for new admits continue to increase 1% (554). Students retained from Spring shows a decrease of 18% (666). Projections for students retained from Spring show a decrease of 5% (855). Four New Student Orientation sessions for potential summer students are scheduled starting April 11, 2014 and continue through June 6, 2014. Each Orientation has multiple sessions that can accommodate up to a total 600 new and transferring students to NMC. New transfer students are now required to attend New Student Orientation to comply with a Federal mandate - Campus SaVe Act. New Student Orientation has added 4 sessions dedicated specifically to transfer students, although they may attend any session that fits their schedule. Statistics (Resources: Digital Dashboard – Same Date Comparison SU2011-2013 with Projection for SU2014) Summer 2011 2012 2013 2014 (Proj-2014) New Students Registered 74 69 47 72 286 Prior Admits Registered 34 16 12 5 1 SP Students Registered for SU 1,052 849 853 732 855 Returning Students Registered 199 172 141 118 132 Average Credit Hrs/student 5.93 5.73 5.71 5.37 5.05 Contact Hrs 6.37 6.13 6.04 5.71 5.32 Total Headcount 1,359 1,106 1,053 927 1,274 Tuition Revenue 1,004,556 825,989 866,709 786,704 966,605

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(Resources: Digital Dashboard – Same Date Comparison Fall 2011-2014 with Projection for FA2014) 2011 2012 2013 2014 (Proj-2014)

Inquiries 464 431 520 497 970 Admissions Applications 352 353 435 460 811 Admits 313 313 282 287 551 Fall 2014 Enrollment Registration for current students for Fall semester began on March 6, 2014. To date students retained from Spring semester is showing a decrease of 13% (1,048) compared to last year point in time. (1,205) Admissions applications show an increase of 23% (1,700) over last year point in time (1,385). New admits show an increase as well of 10% (897) over last year point in time (816). Total headcount is showing a decrease of 16% (1,149) this is due to the new mandate that all new students must attend orientation. The first orientation scheduled is April 11, 2014. Statistics (Resources: Digital Dashboard – Same Date Comparison Fall 2011-2013 with Projection for FA2014) Fall 2011 2012 2013 2014 (Proj-2014) New Students Registered 0 0 55 45 1,748 Prior Admits Registered 0 0 5 3 88 SP Students Registered for SU 0 0 1,205 1,048 2,313 Returning Students Registered 0 0 95 53 503 Average Credit Hrs/student 0.00 0.00 10.10 10.22 9.65 Contact Hrs 0.00 0.00 12.30 12.59 10.83 Total Headcount 0 0 1,360 1,149 4,652 Tuition Revenue 0 0 2,316,897 2,356,868 7,068,091 (Resources: Digital Dashboard – Same Date Comparison FA 2011-2014 with Projection for FA 2014)

2011 2012 2013 2014 (Proj-2014) Inquiries 3,780 4,231 4,224 4,166 7,103 Admissions Applications 1,248 1,167 1,385 1,700 3,632 Admits 873 826 823 897 2,542 High School Penetration In Grand Traverse County, NMC is averaging 40% of the market share of the graduating senior class 2013. 359 students from GTC enrolled out 905 (40%). Of the 359 students 65 are former dual enrollment students (18%).

2013 – HS Penetration

Grads Attending

NMC Grads

Attending NMC

Grads Attending

NMC Grads

Attending NMC

High School / County Jun-10 Aug-10

Jun-11 Aug-11 Jun-12 Aug-12 Jun-13 Aug-13

Grand Traverse Academy 56 13 23% 37 16 43% 32 17 53% 34 13 38%

Kingsley 130 59 45% 125 36 29% 114 53 46% 107 55 51%

St. Francis 75 26 34% 75 20 27% 75 24 32% 70 22 31%

Traverse City Central 358 168 47% 352 123 35% 378 131 34% 288 108 38%

Traverse City West 440 205 47% 433 177 41% 411 164 40% 378 141 37%

Traverse City Christian 20 8 40% 17 10 59% 25 11 44% 17 12 71%

TCHS 17 14 82% 41 10 24% 86 15 17% 11 8 73%

Subtotal Grand Traverse Co.

1096 493 49% 1080 392 36% 1121 415 37% 905 359 40%

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Dual Enrollment We know that our dual enrolled students are much more likely than the average high school student to enroll at NMC after graduation. For that reason, we continue to actively recruit dual enrolled students and have made this a focus for group visits to campus. We continue to see strong numbers of dual enrolled students. This year we welcomed 454 dual enrolled students, along with 203 early college students. NMC values its partnerships with our local high schools and received good feedback from a recent article in the Record Eagle regarding a dual enrolled student who has completed her associate degree while still in high school. (Adapted from the NMC Blog) Three years ago, as a freshman at Traverse City Central High School, Jami Chung decided to take a summer math class at NMC, in order to enroll in calculus during her sophomore year. Her counselor, Don Freed, suggested that rather than just one class, she take a few more. Maybe even enough to earn her associate’s degree while still in high school, in fact. Back then, Chung was planning on medical school, so getting a head start on college credits sounded appealing. She took Freed’s advice and enrolled in a few more classes at NMC. Enough to earn her associate’s degree while still in high school, in fact. Now 17, Chung was awarded both her high school diploma and her associate’s from NMC in January. But a funny thing happened to the daughter of a doctor’s med school plans on the way to her diploma and degree. “Three years later I am no longer sure of that path,” Chung said. “Trying to get this associate’s degree exposed me to classes and experiences I wouldn’t have had otherwise.” She cited two NMC classes as particularly pivotal: Underwater Archaeology with Mark Holley, and World Literature with Michael Emerson. Freed, now retired from Central, said during his 15-year career Chung was the fourth student who simultaneously earned a high school diploma and an NMC degree. He said he’s a “big proponent” of dual enrollment. Earning a degree like Chung may be rare, but by taking even a few college classes in high school, many students can trim their tuition bill later. “It was a good opportunity for some students to make sure they continue on a college track,” Freed said.

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Admissions Supplemental Information MCAN The Michigan College Access Network (MCAN) mission is to increase college readiness, participation and completion in Michigan, particularly among low-income students, first-generation college going students, and students of color. MCAN’s goal is to increase the percentage of Michigan residents with high-quality degrees or credentials to 60% by the year 2025. NMC’s Director of Admissions, Cathryn Claerhout, is an active part of a Local College Access Network (LCAN) that is currently impacting the region along the US131 corridor. The schools involved include; Kalkaska, Mancelona, Forest Area, Alba, Bellaire and Central Lake. NMC, along with the LCAN, participated in the Michigan College Application Week from November 4-8. This is a national initiative with a goal to provide every graduating high school senior the opportunity to apply to college during the school day and hours. NMC was a prime supporter of this initiative and waived the application fee during this week to all area high schools. The LCAN schools had 100% participation from their high school seniors in Kalkaska, Mancelona, Forest Area and Central Lake. NMC received over 450 applications the week of November 4-8, the largest amount seen during that period in several years. NMC also has been following up with area high schools, providing the next step to the enrollment process, by offering free Financial Aid workshops in all area high schools. To date Financial Aid and Admissions have visited over 20 area high schools. Currently, the Director of Admissions has been asked by MCAN to sit on the College Application Week steering committee to represent community colleges in this important statewide effort. Admissions Visitation Program Individual/Family visits Changes have been implemented to increase efficiency and effectiveness of campus visits. In the past, admissions specialists met one-on-one with prospective parents and students in counseling sessions. This was both time consuming and not a wise use of limited recruiting resources. We also offered a daily walking tour of campus which could be scheduled at any time Monday through Friday, 8:00 a.m. to 5:00 p.m. Each year we averaged 300 prospective students and their families visiting campus. Using best practice methods and the leveraging the strength of personal contact with prospects, Admissions has retooled the format of the personalized visit to accommodate the limited time frame of a daily visit. The web site has been revised to include online sign up available 24 hours per day, 7 days per week. The Admissions Team established a quota of 12-15 visitors each day and personalized the visit to include a standardized presentation, tour of campus, and a meal in our cafeteria, as well as meetings arranged with specific department areas where requested. An evaluation system has also been implemented to ensure quality and consistency of the visit experience.

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Upon a visitor’s arrival, Admissions staff advises students of their status if they have applied and if there are discrepancies or deficiencies in the application, how to resolve them to ensure timely processing. On a rotating schedule, admissions team members deliver a comprehensive presentation of NMC followed by a campus tour led by student ambassadors, and lunch with an admissions specialist. The goal and final portion of the tour day includes having the prospective students and their families fill out a survey and, if not done already, an application for admission. It is through the survey that the admissions team is able to modify courses of action to reflect the needs/desires of visitors. Since revising the tour program in the summer of 2013, we have had over 1500 visitors and are now tracking these students for the end result – enrollment. Group visits Group visits have taken on a transformation as well. Again, admissions staff utilized the NMC web site and provided times and dates available and sign up is available 24/7. We now capture all prospective student information from all groups before they arrive. Group tours have a structured NMC presentation with a walking tour of campus and, depending on the group, bus stops to other NMC campus destinations. These tours also include evaluations on their specific tours days so that we can capture areas of opportunities and share it with other areas at NMC. Our numbers for group tours have increased significantly. The current month of March we have had over 900 students visit our campus! Listed below are the groups and numbers from each area high school. Traverse City West High School – 800+ (entire 9th and 10th grade classes) Boyne City High School – 35 students Grayling High School – 50 seniors SEEDS – 45 6th graders YouVisit – virtual tour NMC’s virtual tour, located on our home page, allows us to reach prospective students – wherever they are – and offer them the next best thing to being on our campus. The virtual tour is fully integrated across our website, Facebook page, and mobile devices, and helps to generate inquires, increase physical campus visits, conversion rates and much more. Our virtual campus visits feature realistic online walking tours with rich media, video content and 360-degree panoramic views. Interactive and three dimensional, the virtual campus visits offer much more than traditional “virtual tours.” Delivered in three different languages, Mandarin Chinese, Spanish and Portuguese, we will be able to recruit more effectively internationally and allow students from other nations and with other first languages to “see” NMC for themselves and become familiar with our campus before coming to visit in person.

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______________________________________________________________________________

To: Timothy J. Nelson, President

From: Vicki Cook, VP Finance and Administration

Date: March 14, 2014

Subject: Summary Report for the General Fund as of February 28, 2014

The attached reports summarize the financial results for the General Fund as of February 28,

2014; the eighth month of the fiscal year. This period represents 67% of the year.

Month End Results

The month end reports are interim and not a reflection of actual year-end results. The timing

of revenue and expenses fluctuates throughout the year and will affect year end results. A

detailed projection of year end results is provided under a separate memo.

The general fund ended the month with an excess of revenue over expenses in the amount of

$5,943,862. Revenue increased by 5% when comparing February 2014 to February 2013.

Expenses increased by 4% when comparing February 2014 to February 2013.

Revenue (letters refer to the attached General Fund summary)

A. Tuition and Fees revenue: Tuition and fees represent a 6% increase from those of February

2013. For spring 2014 the budget was set at 50,290 billing hours for budgeted revenue of

$6,986,914. Actual billing hours are at 46,545 hours for total tuition revenue of $6,538,308.

This is a shortfall of $448,606. We anticipate a slight increase in property taxes and a

decrease in bad debt and adjunct contracts to help offset this shortfall.

B. Property Taxes: Tax revenue is recorded as payments are made. The increase is related to

timing of payments. In February, we received the final payment from Winter Tax collection.

In April, we will receive our final payment from Grand Traverse County. The overall

increase for the fiscal year is expected to be 1.5% over the previous fiscal year.

C. State Sources began in October with receipt of the first state aid payment. In November we

received our annual payment for strategic values and a payment towards MPSERS unfunded

liability. The MPSERS payments have a corresponding payment to the State. After

discussions with our auditors, the payment and expense related to unfunded liability will be

recorded in a restricted fund. Consistency in recording of expenses by community colleges is

important for ACS comparison. Since these payments are restricted, it is better to reflect

them in the restricted fund rather than the general fund.

D. Federal Sources, which consist primarily of the MARAD grants. In February we received

$1,000,000 through Heritage Act. These funds will be used for capital equipment and

strategic projects for Great Lakes Maritime Academy.

MEMO

Administrative Services

9

S:\Administrative Services\Board of Trustees\FY2014\03.24.14\FINANCIALS MONTHLY\GF Memo_03.07.14.docx

E. Actual year-to-date investment income recorded for fiscal year 2014 reflects interest income

only. Previous fiscal years included both realized and unrealized income. Since we hold our

bonds to maturity, the unrealized gain or loss would not have an impact on our investment

assets.

F. Both Private Sources and Other Sources are timing and event dependent.

Expenses

G. Salary and benefit changes correspond with budgeted compensation plans and approved new

positions.

H. All other expenses are at or under budget at this time with the exception of Other Expenses

and Capital outlay. The Board of Trustees approved differential scholarships for students

that were previously enrolled in programs that differential tuition rates impacted the cost to

attend in FY 14. The cost of the Differential Scholarships was over the budgeted amount.

I. Capital outlay is timing related we expect this to be at budget. Capital Outlay reflects

expenditures budgeted through the allocation of COAT dollars, the Plant Fund, BBQ funds,

or contingencies.

10

Unaudited

2013-2014 YTD % ofFunds Accounts Adjusted Budget Activity Annual Budget

TOTAL GENERAL FUND

50 Revenues

Tuition and Fees 23,534,931 16,621,431 70.62% A Property Taxes 9,309,578 8,573,363 92.09% B Other Local 0 0 *Local Sources 32,844,508 25,194,795 76.71%State Sources 8,838,600 4,957,900 56.09% CFederal Sources 524,000 1,174,718 224.18% DPrivate Sources 277,000 158,242 57.13% FInvestment Income 358,000 130,287 36.39% EOther Sources 310,450 166,879 53.75% F

Total Revenues 43,152,558 31,782,821 73.65%

60 Labor

Salaries & Wages 21,139,133 13,676,832 64.70% GBenefits 8,951,098 5,542,999 61.93% G

Total Labor 30,090,232 19,219,831 63.87%

70 Expenses

Purchased Services 2,161,469 1,345,552 62.25% HSupplies & Materials 2,916,909 1,621,237 55.58% HInternal Services 78,990 43,304 54.82% HOther Expenses 1,603,981 1,220,364 76.08% HInstitutional Expenses 1,727,379 1,120,824 64.89% HMaintenance & Renovation 1,201,799 718,145 59.76% HProf Develop, Travel & Events 725,813 346,441 47.73% HCapital Outlay 307,265 239,775 78.04% I

Total Expenses 10,723,605 6,655,644 62.07%

Total Expenditures 40,813,836 25,875,476 63.40%

80 Transfers

Transfers 2,302,246 -36,517 -1.59%Total Transfers 2,302,246 -36,517 -1.59%

Total Expenditures and Transfers 43,116,082 25,838,959 59.93%

Net Revenues over (under) Expenditures 36,476 5,943,862

Northwestern Michigan College

Summary Report for General Fund Accounts

Fiscal Year 2014, Period 08

Month end reports are interim and not a reflection of expected year end results.

Summ Gen Fund_Feb_2014.xlsx

for internal use only 3/14/2014 1:58 PM Page 1 of 1

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Northwestern Michigan CollegeComparative Statement

February 2014 to January 2014General Fund Activity Only

Difference between current month and previous month

Revenue Yr. To Date Yr. To Date Month of Month of Explanation

28-Feb-14 31-Jan-14 28-Feb-14 31-Jan-14 2014

Tuition and Fees 16,621,431 14,660,599 1,960,832 1,676,410 Recognized full month of spring tuition in February

Property Taxes 8,573,363 6,736,009 1,837,354 2,029,543 Timing of payments received

State Sources 4,957,900 3,980,200 977,700 977,699 Consistent with prior month

Federal Sources 1,174,718 174,718 1,000,000 - MARAD Heritage funding received in February

Private Sources 158,242 149,050 9,192 60,579 Timing of Foundation support

Investment Income 130,287 116,069 14,218 14,561 Consistent with prior month

Other Sources 166,879 147,535 19,344 17,796 Lobdell's

Total Revenue 31,782,821 25,964,181 5,818,640 4,776,589

Expenses

Salaries and Wages 13,676,832 11,867,954 1,808,878 1,629,757 Spring adjunct faculty contracts

Benefits 5,543,000 4,630,407 912,593 653,334 Health Savings Account (HSA) funding for 2014

Purchased Services 1,345,552 1,215,012 130,540 133,217 Consistent with prior month

Supplies & Material 1,621,237 1,376,414 244,823 132,244 Course Supplies

Internal Services 43,304 39,654 3,650 2,935 Consistent with prior month

Other Expenses 1,220,364 1,083,722 136,642 178,796 Spring tuition differential scholarship was paid in January 2014

Institutional Expenses 1,120,824 964,554 156,270 263,426 Snowplowing and heating fuel

Maintenance & Renovation 718,145 615,889 102,256 64,692 Timing of contractual payments

Prof Develp, Travel, & Events 346,441 296,370 50,071 25,309 Timing of professional development/travel

Capital Outlay 239,775 229,181 10,594 14,262 Library Books $3,094, Date sources for Mitel phone system $7,500Total Expenditures 25,875,476 22,319,159 3,556,317 3,097,973

Transfers (36,517) (36,517) - - Net Revenues over/(under) 5,943,862 3,681,538 2,262,323 1,678,616

Month end reports are interim and not a reflection of final year end results.

Month end reports are interim and not a reflection of final year end results.

12

Northwestern Michigan CollegeComparative Statement

February 2014 to February 2013General Fund Activity Only

Difference between February 2014 and February 2013 (GENERAL FUND)

Revenue Yr. To Date Yr. To Date INCRE/DECRE. Percentage Explanation

28-Feb-14 28-Feb-13 Difference 2014

Tuition & Fees 16,621,431 15,670,478 950,953 6% Increase in fall and spring tuition; increase in flight fees

Property Taxes 8,573,363 8,382,394 190,969 2% Budgeted increase in property taxes

State Sources 4,957,900 4,842,150 115,750 2% Budgeted increase in state appropriations

Federal Sources 1,174,718 697,810 476,908 68%MARAD equipment and fuel funding in FY13; rec'd 1st installment of funding for FY14 in Dec. 13 and $1M Heritage Funds in February 2014

Private Sources 158,242 141,066 17,176 12% Increase in Foundation support

Investment Income 130,287 213,624 (83,337) -39% FY14 recognizing interest income only

Other Sources 166,879 182,133 (15,254) -8% Decrease in payment plan fees and facility rentals

Total Revenue 31,782,821 30,129,656 1,653,165 5%

Expenses

Salaries and Wages 13,676,832 13,297,972 378,860 3% Approved salary plans and new positions

Benefits 5,543,000 5,372,565 170,435 3% Health benefits and benefits related to new positions

Purchased Services 1,345,552 1,237,755 107,797 9% Timing of payments

Supplies & Material 1,621,237 1,590,322 30,915 2% Fuel and printing

Internal Services 43,304 24,985 18,319 73% Timing of payments

Other Expenses 1,220,364 882,490 337,874 38% Differential tuition scholarship new in FY14, recruiting expenses

Institutional Expenses 1,120,824 1,030,698 90,126 9% Snow removall, heating fuel, and electric

Maintenance & Renovation 718,145 652,041 66,104 10% Timing of payments

Pro. Develop, Travel & Events 346,441 333,236 13,205 4% Timing of professional development & travel

Capital Outlay 239,775 512,048 (272,273) -53% FY13 higher for GLMA simulator purchase

Total Expenditures 25,875,476 24,934,111 941,362 4%

Transfers (36,517) (41,689) 5,172

Net Revenues over/(under) 5,943,862 5,237,234 706,628

Month end reports are interim and not a reflection of final year end results.

Month end reports are interim and not a reflection of final year end results.

13

______________________________________________________________________________

To: Timothy J. Nelson, President

From: Vicki Cook, VP Finance and Administration

Date: March 17, 2014

Subject: Analysis of July 2013 through February 2014 and Projections for FY14 year end

result

This memo is intended to provide a summary of the major changes in projections from the

February 2014 report.

Projected Year End Results

The current projections show a net loss of $160,136. It is important to note that this is a

preliminary estimate. This estimate will change throughout the remainder of the year.

Below are explanations of the major changes from the previous month report.

Summary of Significant Changes from Prior Month

Tuition and Fees

Reduction in Spring tuition after drop and add. Offset

by increase in Flight fees

-$121,595

$144,364

Federal Sources Addition of funds from Heritage Act $1,000,000

Salaries Adjunct wages $115,000

Benefits Related to wages and additional healthcare estimate $161,600

Purchased Services Contractual contracts related to surveys and

advertising expenses $48,200

Other Expenses Differential Tuition and travel reduced $55,000

Transfers Aviation tac hours related to additional revenue $23,000

Funds Reserved Heritage Act revenue $1,000,000

As we finalize year end results, any additional revenue in property taxes will help offset the

projected loss. Areas that we could see savings in expenses to offset the remaining loss include

adjustment to the technology fund transfer to align with actual fees collected, savings in supplies

and professional development.

MEMO

Administrative Services

14

Northwestern Michigan College

Fiscal Year 2013-2014

Year-End Projections

Compare February to March

2014 2014 2014

NMC definition of the term "Projection" is a forecast of year-end revenues & expenses (not accounting definition) Description of Changes

February March Changes Comparison February to March

RevenueLocal Sources Tuition & Fees 51 22,441,046 22,463,815 22,769 Reduction in spring tuition offset by increase in flight fees

Property Taxes 51 9,309,578 9,309,578 - Total Local Sources 31,750,624 31,773,393 22,769 State Sources 53 8,868,682 8,868,682 -

Federal Sources 54 618,400 1,618,400 1,000,000 MARAD Heritage FundsPrivate Sources 55 291,719 296,719 5,000 Foundation BBQ FundingInvestment and Interest Income 57 270,000 270,000 - Unrealized gain/(loss) on investments 57 - - - Other Sources 59 297,950 300,051 2,101 Lobdell's & surplus salesTotal Revenue 42,097,375 43,127,244 1,029,869

ExpensesSalaries 61 20,643,391 20,758,418 115,027 Spring adjunct/overloadBenefits 65 8,466,552 8,628,171 161,619 Medical expensePurchased Services 71 2,345,484 2,297,284 (48,200) Contractual agreements Supplies & Materials 72 2,700,322 2,697,822 (2,500) ITS softwareInternal Services 73 78,990 78,990 - Other Expenses 74 1,761,981 1,707,081 (54,900) Differential scholarships & non-professional dev. travelInstitutional Expenses 75 1,727,379 1,727,379 - Maintenance & Renovation 76 1,178,799 1,178,799 - Professional Development 77 695,013 695,013 - Capital Outlay- small expenditures 79 415,460 415,460 - Total Expenses 40,013,371 40,184,417 171,046

TransfersPlant Fund 999,647 999,647 - Plant Fund Support of Simulator - Technology Fund 600,000 600,000 - Facility Fee 40,000 40,000 - Plant Fund- debt service 46,929 46,929 - Aviation Plant Transfer for Tach hours 306,532 329,532 23,000 Increase in flight feesLoan Funds transfer - - - Lease payments - - - Strategic projects 250,000 250,000 - Funds for Transformation 50,000 50,000 - FY13 surplus in support of scholarships (189,000) (189,000) -

Indirect Grant Revenue & Program support (62,650) (62,650) - Total Expenses & Transfers 42,054,829 42,248,875 194,046

Net Revenue before Program Reserves 42,546 878,369 835,823

Funds reserved for Specific Programs (38,505) (1,038,505) (1,000,000) GLMA reserved Heritage funds

Net Revenue after Program Reserves 4,041 (160,136) (164,177)

NMC definition of the term "Projection" is a forecast of year-end revenues & expenses (not accounting definition)

15

Northwestern Michigan College

Fiscal Year 2013-2014

Compare Budget to Year End Projections

NMC definition of the term "Projection" is a forecast of year-end revenues & expenses (not accounting definition)

2013 2014 2014 2014

Actual Budget Projection Over/(Under) Explanation

Budget Comparison Budget to YE Projections

RevenueLocal Sources Tuition & Fees 51 21,680,447 23,534,931 22,463,815 (1,071,116) Fall, Spring, and Summer tuition & fees

Property Taxes 51 9,196,051 9,309,578 9,309,578 - Total Local Sources 30,876,497 32,844,508 31,773,393 (1,071,116) State Sources 53 9,036,469 8,838,600 8,868,682 30,082

Federal Sources 54 982,206 524,000 1,618,400 1,094,400 Add'l MARAD fundingPrivate Sources 55 578,882 277,000 296,719 19,719 BBQ purchase and funding for commitment program Investment and Interest Income 57 196,253 358,000 270,000 (88,000) Budget included unrealized activity on investments Unrealized gain/(loss) on investments 57 (732,732) - - - Other Sources 59 329,396 310,450 300,051 (10,399) Total Revenue 41,266,971 43,152,558 43,127,244 (25,314)

ExpensesSalaries 61 20,406,064 21,139,212 20,758,418 (380,794) Savings in open faculty positions, student wages, and supplemental wages Benefits 65 8,740,440 8,951,098 8,628,171 (322,927) MPSERS and FICA Purchased Services 71 2,028,050 2,161,469 2,297,284 135,815 Contractual agreements for services, early collegeSupplies & Materials 72 2,648,828 2,916,909 2,697,822 (219,087) Postage classroom supplies & fee related expensesInternal Services 73 51,190 78,990 78,990 -

Other Expenses 74 1,437,202 1,603,981 1,707,081 103,100 Tuition differential scholarship (supported by FY13 surplus); savings in native waive, tuition discount expense, and property tax refunds

Institutional Expenses 75 1,612,916 1,727,379 1,727,379 - Maintenance & Renovation 76 1,118,538 1,201,799 1,178,799 (23,000) Maintenance of equipmentProfessional Development 77 642,803 725,813 695,013 (30,800) Savings in planned travel

Capital Outlay- small expenditures 79 935,940 307,265 415,460 108,195 GLMA equipment (supported by reserved funds); BBQ item (revenue above)Total Expenses 39,621,971 40,813,915 40,184,417 (629,498)

TransfersPlant Fund 1,100,437 999,647 999,647 - Plant Fund Support of Simulator (125,000) - Technology Fund 500,000 600,000 600,000 - Facility Fee 40,000 40,000 40,000 - Plant Fund- debt service 46,929 46,929 46,929 - Aviation Plant Transfer for Tach hours 291,102 306,532 329,532 23,000 Loan Funds transfer - - - - Lease payments 45,177 - - - Strategic projects 250,000 250,000 250,000 - Funds for Transformation 50,000 50,000 50,000 - FY13 surplus in support of scholarships - - (189,000) (189,000) For differential scholarships

Indirect Grant Revenue & Program support (10,564) (115,865) (62,650) 53,215 Wellnes wages/benefits in restricted fundsTotal Expenses & Transfers 41,810,052 42,991,158 42,248,875 (742,283)

Net Revenue before Program Reserves (543,081) 161,400 878,369 716,969

Funds reserved for Specific Programs 661 (125,000) (1,038,505) (913,505) GLMA equipment

Net Revenue after Program Reserves (542,420) 36,400 (160,136) (196,536)

NMC definition of the term "Projection" is a forecast of year-end revenues & expenses (not accounting definition)

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____________________________________________ _______________________________ To: The Board of Trustees and President Timothy J. Nelson

From: Rebecca Teahen, Executive Director for Resource Development

Date: March 14, 2014

Subject: Foundation Update for March 2014

Fund Raising – a “check” on our progress toward FY14 goals

o The Annual Fund Campaign for 2013-14 is well on its way to the goal of $200,000 for unrestricted & general scholarship funds. To date, we have received approximately $123,697. A mailing to “lapsed” donors is underway. A mailing to prospective donors will be sent the first week of April.

o Results for total dollars raised are moving slowly with approximately $885,389 raised during this fiscal year which means we are approximately 51% toward our goal of $1,764,335.

Events o The annual Taster’s Guild Auction was a success raising over $100,000 (gross)! Proceeds

benefit scholarships for Great Lakes Culinary Students. o A recommendation for this year’s Outstanding Alumni award has been submitted to the

President. Stay tuned for a public announcement. o Nominations are now being accepted for NMC Fellows. Please send your nominations to the

President’s Office by April 2, 2014. o Planning has begun for the 2014 NMC Scholarship Open! Register online at nmc.edu/golf

for this great event Thursday, August 7 at the Grand Traverse Resort & Spa.

Campaign Planning o The Foundation board weighed in once again on potential elements of a comprehensive

campaign at their February meeting. NMC Executive Staff will continue to refine the priorities and projected costs for further review and discussion by both boards. It is our goal to have a draft case for support produced in June.

o Foundation board feedback also indicates a need to strengthen public relations and marketing efforts as we prepare for a major fundraising effort.

For your calendars:

o This year’s annual Scholarship Luncheon will be held April 11. o The next Foundation Finance & Audit Committee meeting will be April 16 in Founders

Hall. o The next Foundation Board meeting will be April 23 at the University Center.

MEMO Resource Development

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REPORT ON SPRING MEETING OF THE BOARD OF DIRECTORS OF MCCA – March 13, 14, 2014 The Board of Directors of MCCA met at Southwestern Michigan Community College on March 13 and 14, 2014. Ross Childs and Kennard Weaver were present representing NMC. The keynote speaker was Sandy Baum, who spoke on college access, college pricing, student aid policy, student debt, affordability, and other aspects of higher education finance. Her Power Point presentation is available in the Board Book on the MCCA website, and contains interesting details on student debt which are often reported in the media by using the most extreme examples of debt incurred. There are many students who obtain two- or four-year degrees without incurring any debt or with far lower debt than the amounts frequently reported. Sandy Baum’s model should be examined to evaluate whether or not our local NMC default data is typical. MCCA should gather data from all 28 Community Colleges regarding students who receive Pell grants, any abuses, and determine default rates taking into consideration the 3 year calculations and 4 year transfer students that arrive with substantial debt. That data may be more applicable to NMC than national averages. A motion to approve the MCCA budget and dues increase was approved. After a presentation by Michael Hansen, a motion to approve the assessment request to support the Michigan Center for Student Success was also approved. The Center will continue to raise funds to cover half of its budget, and member colleges will be asked to provide the balance each year. Mike Hansen and Erin Schor provided a legislative update on these items:

(1) Tuition restraint, which MMCA opposes. It appears that these proposals will be slowed down and may be eventually stopped. Tuition restraint should continue to be opposed as it is the only revenue source that is established by locally elected representatives.

(2) Personal property tax reform, which MCCA endorses. This is a framework for replacing the revenue we have lost by the repeal of the business personal property tax, and although it is cumbersome and convoluted, appears to accomplish that goal. It is likely to be enacted.

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(3) In-district tuition levels for all veterans, which would have reduced revenues for community colleges and would not have benefited many individual veterans since they receive tuition reimbursement from the federal government. The effect would be to take from Michigan community colleges and give to the federal government. MCCA opposes this, and the proposal may be defeated, but it is by no means certain that it will fail.

(4) The Optional Retirement Act of 1967 should be amended to delete the language “on a full-time basis” because of the unequal treatment of part-time and adjunct faculty.

The State-wide branding campaign- “You’ve got this”- was than reviewed. Examples of ads, which may include the names of local MCCA member colleges for their service area, were presented. This would be supported by contributions from individual colleges, apportioned one-half by an equal amount from each one one-half by an amount based on the size of the college. Most of the MCCA members have agreed to pay the support, but it may not be universal. A walking tour of Southwestern Michigan College principal buildings was led by tour guides, including their four new dormitories, Library and Learning Center, and Student Activities Center. There are well-informed and qualified SMC personnel who will be valuable resources for NMC in planning buildings and programs to carry out its Capital Plan in the next few years. SMC people in the dormitories and the Student Center have offered to meet with us and help us make decisions in our planning. They have learned from their experiences many lessons which will inform our decisions.

There will be an MCCA session for college trustees held in Traverse City this summer, with useful information available to us. Look for announcements on dates and subject matter in the next few months. It appears that many trustees like to attend meetings in Traverse City. Kennard R Weaver

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MCCA WEEKLY BOARD UPDATE [Report #217 | March 17, 2014]

FROM YOUR ASSOCIATION PRESIDENT... It was good to see many of you last week at the Spring Board of Director's meeting at Southwestern Michigan College. Thanks again to the Board and staff at the College for making the meeting not only productive and informative, but also very enjoyable. The week starts with St. Patrick's Day, which reminds us to reflect on the comforting words of the Irish Blessing: May the road rise to meet you, may the wind be always at your back, may the sun shine warm upon your face, may the

rain fall soft, upon your fields. And until we meet again, may he hold you in his hands. Have a great week everyone. - Mike Hansen, MCCA President

State & Legislative Matters

MCCA Legislative Update: For the March 2014 legislative update provided to the MCCA Board of Directors at the Spring meeting last week, please click here.

MCCA Legislative Priorities: Please click here to view MCCA's 2014 Legislative Priorities.

FY 2014-2015 Budget: The final hearings for the Fiscal Year 2014 -2015 Appropriations process will take place on Monday, March 17, with the Senate subcommittee meeting at West Shore Community College. Both the House and Senate subcommittees are expected to report their recommendations out to the full Appropriations Committees during the last full week of March. As a reminder, more detailed summary documents on the executive budget recommendation are available on the MCCA website.

Personal Property Tax Reform: Last week, the House Tax Policy Committee took testimony but did not vote on a package of bills that amend the personal property tax reforms passed in 2012. With certain limitations, Senate Bills 821 - 830 call for 100% reimbursement for all taxing jurisdictions - including community colleges - based on a dynamic formula that gradually shifts from reimbursing for actual losses to funding the current location of industrial and manufacturing property. The State would cover reimbursements by shifting

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part of the Use Tax to a Local Community Stabilization Fund, paid for by expiring business tax credits and an Essential Services Assessment on exempt property. The Committee is expected to vote on SB's 821 - 830 next week. A more detailed analysis is available on the MCCA website.

Governor's Education Summit: Scheduled for Thursday, April 24 at the Kellogg Conference Center at Michigan State University. For more information and to register, please click here. On a related note, the Governor's Economic Summit is taking place today and tomorrow at the DeVos Place Convention Center in Grand Rapids.

Bills to Watch: A quick reference of all the bills relevant to community colleges introduced in the 2013 - 2014 Legislative Session is available on the MCCA website.

National & Federal Legislative Matters

Proposed Gainful Employment Regulations Released: The U.S. Department of Education (ED) released a Notice of Proposed Rulemaking on its package of accountability regulations for so-called gainful employmentprograms, which include all non-degree, Title IV eligible programs at community colleges. In a nutshell, ED would kick vocational programs out of the federal student aid program if they don't satisfy two different standards relating to student loan debt:

First Standard: A program must produce graduates whose estimated loan payments each year do not consume more than 20% of their discretionary income (or 8% of their total income).

Second Standard: A program must keep the share of former students who default on their loans below 30%. What's Next for the Proposed Rules: As soon as the new proposal is published in the Federal Register (in the next several days), it will kick off a 60-day public comment period that will be followed by another White House review of the impact of the regulations. Final regulations are planned to be issued by November, going into effect on July 2015. See article in Inside Higher Ed and The Chronicle of Higher Education.

Federal Student Loan Cohort Default Rates: See AACC's bulletin outlining issues related to federal student loan defaults. Unfortunately, more community college students are borrowing and default rates continue to increase.

Debit Cards and Student Aid: The US Department of Education Office of Inspector General (IG) has issued a report this week on third-party servicer use of debit cards to deliver Title IV funds. The IG report raised concerns regarding student privacy, fees paid by students, and

21

institutional management of third-party servicers. This report will likely be referenced by negotiators during the next round of "negotiated rulemaking" on program integrity and improvement. That meeting is set to take place March 26 - 28. This letter contains comments submitted by the community college negotiators on the subject of cash management. The full IG report may be viewed here.

MCCA News

MCCA Board of Directors Spring Board Meeting: Thank you to Southwestern Michigan College for hosting the MCCA Board of Directors for the Spring meeting this past Friday, March 14. Following a presentation by Dr. Sandy Baum from the Urban Institute on a range of higher education finance issues (for Dr. Baum's PowerPoint, please click here) and a tour of SMC's campus, the Board took a number of important actions during the business meeting (all documents in the Board packet are available on BoardBook):

Michigan Center for Student Success Proposal for Sustainability: Board

approved the Center's sustainability proposal for funding half of the Center's total budget with an annual assessment to the colleges. The structure of the assessment would be similar to the MCCA dues with a base amount for each college plus a graduated sum based on the size of the institution. For the MCSS sustainability proposal, please click here.

MCCA Budget: Board approved a 12% dues increase applied across the board to each college, and also the creation of a taskforce to examine the funding mechanism(s) for the Association and provide a recommendation for implementation in the next fiscal year. Taskforce to report back to the Board at the Fall meeting.

o For the 2014-15 budget request, please click here. o For the 2014-15 dues changes, please click here.

Governmental Accounting Standards (GASB) 68: As previously reported, an

accounting rule issued by the Governmental Accounting Standards Board (GASB) will require, beginning in 2015, that all educational entities that participate in a defined benefit plan must account for each individual entity's portion of the unfunded accrued liability of the entire plan, on that entity's balance sheet. The MCCA staff was directed to pursue a number of options to mitigate the impact of this new directive. For the update on what the MCCA has done so far regarding GASB 68, please click here. The Board approved the following recommendation by the MCCA Legislative Committee: "MCCA staff should remain engaged and aware on the issue,

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and be prepared to offer assistance to member colleges."

Statewide Marketing/Branding Campaign for Community Colleges: Board was provided an update on the statewide marketing campaign. For the campaign briefing presentation, please click here. The MCCA is aiming to reach a final tally of participating colleges by the end of the week. The marketing/PR leads at the colleges are scheduled to meet with Interact Communications on March 28 to begin implementation discussions. For the brand concept, please click here.

MCCA Centers for Excellence News

Center for Student Success Update

April 11th Michigan Student Success Network Meeting: The next meeting of the Michigan Student Success Network (MSSN) will take place on Friday, April 11th at Lake Michigan College - Bertrand Campus. The theme for this meeting will be on "Using Financial Aid to Promote Student Success." The target audience for this meeting is financial aid and student services staff, but individuals from other departments/divisions of the colleges are also welcome. For more information and to register, please click here.

Reading Apprenticeship Seminar Slated for May: We are providing an opportunity for Michigan faculty members from all disciplines to attend a three-day Reading Apprenticeship Seminar May 20th through 22nd at Northwestern Michigan College. The Michigan Center for Student Success is able to offer this opportunity at a discounted rate of $450 per person. Attendance at this same seminar in California would cost $1250 per person. We have the necessary commitment from at least 25 attendees to run the seminar, but there are more spaces available (a total of 40 spaces are available). For more information, please click here. Please contact Jenny Schanker with questions.

Virtual Learning Collaborative Update

Michigan Colleges Online (MCO) Project Update: The Michigan Colleges Online Advisory Board had an opening due to the retirement of Gary Wheeler. Cameron Brunet-Koch, president of North Central Community College, has agreed to join the Board and oversee the work of the MCO Initiative.

Webinar...Guiding Your Students to a Great Start (April 9 from noon-1pm): Students who underestimate the time and effort needed to successfully complete an online course tend to drop out or under-perform. Macomb Community College has implemented five initiatives to help reduce drop rates and increase student success, which have received overwhelming positive feedback from students and faculty. Presenters include Carl

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Weckerle, Director, Instructional Technology & Virtual Learning, and Tom Bradley, Instructional Technology Specialist at Macomb Community College. To register, please click here.

Webinar...OER Impact Research Findings (April 9 from 2-3pm): Webinar on the impact of open educational resources on student outcomes and faculty, and student feedback from institutions using OERs across the country. Host for this webinar is the Community College Consortium for Open Educational Resources. No pre-registration necessary, please click here on day of webinar to login to the cccconfer.org system.

Michigan New Jobs Training Program

Mott Community College has finalized two new Michigan New Jobs Training Program (MNJTP) agreements with employers creating new jobs: Eberspaecher North America (50 new jobs) and TG Fluid Systems (25 new jobs). For the updated statewide funding queue, please click here. MNJTP by the numbers:

73 employers are being served by the MNJTP to date. 11,268 new jobs will receive training supported by MNJTP funding. 14 colleges have signed agreements, with new colleges currently developing

agreements.

Center for Global Initiatives

Landing Recruitment Webpage for International Students on MCCA Website: MCCA staff has started working on the development of a landing page for international students hosted on the MCCA website. This will be yet another point of entry for interested international students to learn more about Michigan's community colleges, with information about programs, services, athletics, student housing options etc. The website would highlight offerings and capabilities from each college, along with appropriate links for interested students to apply to individual colleges.

The MCCA has been in discussions with CCID (Community Colleges for International Development) to kick off a pilot of Michigan schools interested in utilizing the CCID System of Comprehensive Internationalization. CCID is a non-profit consortium of mainly two-year colleges whose primary mission is international development. CCID has developed a comprehensive, research-based tool to help institutions establish a baseline of activity and strategic goals for internationalization. Please click here for an overview of the System of Comprehensive Internationalization. Please contact Adriana Phelan for more information.

Community Colleges in the News

Kalamazoo Valley Community College's Board of Trustees voted to ban use of tobacco and e-cigarettes on campus. For the article, please click here.

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Wayne County Community College District's men's basketball team won the e MCCAA Division II Championship. The district will represent Region 12 in the National Championship on March 18-22.

There have been recent articles regarding declining enrollment at community colleges. For example, see article in the Detroit Free Press.

Upcoming Events for 2014 Calendar

Phi Theta Kappa Awards Luncheon, Radisson Hotel Lansing - March 25 from 10:00 AM to 2:00 PM

AACC Annual Convention, Marriott Wardman Park, Washington DC - April 5 - 8 o Michigan Community College Association Breakfast at AACC, Marriott

Wardman Park (Room: Wilson B) - Sunday, April 6 from 7:00 AM to 8:00 AM Higher Learning Commission Annual Meeting, Chicago IL - April 11- 14 Community College Day, Capitol Building, Lansing - Thursday April 24 from 11:00

AM to 1:00 PM MCCA Presidents Committee, MCCA Office - Friday, April 25 from 9:00 AM to 1:00

PM MCCA Executive Committee, MCCA Office - Friday, May 30 from 10:00 AM - 1:00

PM MCCA Presidents Committee, Conference Call - Friday, June 20 from 9:00 AM - 1:00

PM New Trustee Orientation, Grand Traverse Resort, Traverse City - Tuesday, July 22

from 2:00 PM to 5:00 PM 2014 Summer Trustee Institute, Grand Traverse Resort, Traverse City - Wednesday,

July 23 from 9:00 AM to 3:30 PM 2014 Presidents Summer Institute, Northwestern Michigan College, Hagerty Center,

Traverse City - Tuesday, July 22 & Wednesday, July 23 from 8:00 AM to 12:00 PM on both days

MCCA Summer Conference, Grand Traverse Resort, Traverse City - Thursday, July 24 & Friday, July 25 with 8:00 AM start both days

MCCA Board of Directors, Grand Traverse Resort (Peninsula Room), Traverse City - Friday, July 25 from 7:30 AM to 9:00 AM

Michigan Community College Association 222 North Chestnut, Lansing MI 48933

http://www.mcca.org

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NORTHWESTERN MICHIGAN COLLEGE BOARD OF TRUSTEES

MINUTES Monday, February 24, 2014

NMC Oleson Center CALL TO ORDER—Acting Chair Kennard R. Weaver called the regular meeting to order at 5:35 p.m. ROLL CALL Trustees present: Robert T. Brick, K. Ross Childs, Susan K. Sheldon, Kennard R. Weaver

Trustees absent: Douglas S. Bishop, Cheryl Gore Follette, William D. Myers

Also present: President Timothy J. Nelson, Sara Budzik, Vicki Cook, Marguerite Cotto, Andy Dolan, Holly Gorton, Darby Hiller, Todd Neibauer, Stephen Siciliano, Rebecca Teahen, Anthony Rupard, Paul Perry, Cheryl Sullivan, Aaron Beach, Kyle Morrison, Michael Walton

APPROVAL OF AGENDA—On a motion by Susan Sheldon, supported by Ross Childs, the agenda was accepted as presented. REPORTS

Enrollment Report—Chris Weber, Vice President for Enrollment Management and Student Services, provided the enrollment report which presented a wrap-up of spring 2014 and a glance at summer and fall semesters. Financial Report—Vicki Cook, Vice President of Finance and Administration, provided the monthly summary report for the General Fund as of January 31, 2014, noting there have been no significant changes. Cook shared that work has begun on the FY15 budget and that unknowns for the near future include summer tuition, final property taxes, and health care costs which could be significant. Policy Committee Report—Susan Sheldon reported the Board Policy Committee had met on February 13, 2014, and received a presentation on equipment options from Vicki Cook and Kyle Morrison, Coordinator for Media and Instructional Technology. Sheldon noted that a first reading of a policy for recording meetings had been included in this meeting’s agenda as an action item. Morrison reviewed the recording equipment options and staffing requirements with the full Board. It was confirmed that the Board meeting materials would be available to the public for download on the NMC website and the written minutes would remain the official public record for meetings. Revenue/Funding Study Group—Kennard Weaver reported the Revenue/Funding Study Group had met on February 5, 2014, to look at significant sources of revenue and the amount of control NMC has over various revenue streams. There is initial work to be done in determining revenue streams required for operational and capital expenses. Weaver noted the Board supports continued architectural studies for master plan projects and this study group will advise on matching need with revenue sources.

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Northwestern Michigan College Monday, February 24, 2014

2

Foundation Report—Rebecca Teahen, Executive Director of Resource Development, noted the provided report contained an evaluation of the events process as discussed at the Board retreat in January. Teahen also shared information about the creation of an annual giving society, the “President’s Club,” which is a common strategy in higher education to improve donor stewardship. She also shared that the Foundation E-news is including alumni stories to demonstrate success to current and future donors, as well as future students. Director of Development Anthony Rupard presented updated fundraising metrics to the Board to illustrate year-to-date comparisons to the past fiscal year. He explained that, if Resource Development continues to sophisticate the donor plans, over the next couple of years the projection is that fundraising will grow 10% per year, outside of individual campaigns. Legislative Issues Report—President Timothy Nelson reported on bills SB745-747, that set parameters for concurrent enrollment programs, noting fundamental misunderstandings in the language being used regarding high schools offering college courses. NMC is working at the state and local levels to establish a delivery mechanism for high school students. The Board was encouraged to contact Senator Booher and other northern Michigan representatives and senators regarding the three bills which modify the Community College Act. In response to an inquiry about the Virtual Learning Collaborative, President Nelson explained that the MCCVLC had been renamed Michigan Colleges Online and has received a $1.1 million state allocation for implementation. He also shared that the U.S. Department of Education is revisiting the regulation for any college providing online education in another state to comply with the rules and regulations of that state, and a collaborative group is working on a state authorization reciprocity agreement proposal. UPDATES

Board Chair Update—Acting Chair Kennard Weaver, distributed a memo from absent Chair Douglas Bishop to the Board regarding the recent FOIA request, and asked that any additional relevant responses be provided to Holly Gorton by Tuesday, February 25, 2014. President’s Update—President Nelson reminded the Board they would host the Student Government Association for dinner and receive a presentation at their March 24, 2014, meeting. He also shared that MCCA would provide an update in March on their marketing proposal for community college branding. Nelson shared that he had given testimony before the Michigan House of Representatives Appropriations Subcommittee on Community Colleges on February 7, 2014, on the proposed FY 2014-2015 state budget. He explained that the Governor’s budget includes a 2.9% increase for NMC which is .6 of 1% of the operating budget; and the MPSERS contribution from the state for next year will be $800,000. He stated that NMC will need to prepare for the potential discontinuation of MSPERS support. President Nelson ended his update by asking trustees to please contact legislators about the proposed 3.2% tuition increase cap which applies to any in-state student and any fee that is paid by more than 50% of students. DISCUSSION ITEMS—None

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Northwestern Michigan College Monday, February 24, 2014

3

PUBLIC INPUT—No public input was received. CONSENT ITEMS—On a motion by Ross Childs, supported by Susan Sheldon, the following items were approved by a unanimous vote as a group without discussion:

Minutes of the January 16-17, 2014, Board retreat Minutes of the January 27, 2014, meeting Contributions for January 2014 Summary Report for General Fund Accounts as of January 31, 2014

ACTION ITEMS

April Meeting Date Change—On a motion by Robert Brick, supported by Susan Sheldon, the Board approved changing the date of the regular April Board of Trustees meeting from April 28 to April 21, 2014, with a unanimous vote. Amendment of Policy A-105.00—On a motion by Susan Sheldon, supported by Ross Childs, the Board approved the amendments to Board Policy A-105.00 Consent Agenda Items as presented, on a second-reading basis, with a unanimous vote. New Policy A-104.00 Board of Trustees Video Recording of Meetings—On a motion by Susan Sheldon, supported by Ross Childs, the Board approved new Board Policy A-104.00 Board of Trustees Video Recording of Meetings as presented, on a first-reading basis, with a unanimous vote. Grant Application to Rotary Charities—On a motion by Ross Childs, supported by Robert Brick, the Board authorized the NMC Foundation, through its Executive Director, to submit a grant application to Rotary Charities of Traverse City for one year of program funding as developed by NMC’s International Affairs Forum: Building Community Support for Global Outreach in the Grand Traverse Region – Case Study and First Step: China. Motion passed with a unanimous vote. REVIEW OF FOLLOW-UP REQUESTS—Confirmed requests made by the Board that require administrative follow-up for information to be provided to the Board at a later date. ADJOURNMENT—The meeting adjourned at 6:35 p.m. Recorded by Sara Budzik, President’s Office Administrative Coordinator. SIGNED

Kennard R. Weaver, Treasurer and Acting Chair ATTESTED

Susan K. Sheldon, Secretary

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Northwestern Michigan College

Gift Summary by Fund

February 2014 Contributions

Fund Description

Total # of

Gifts

Received

New

Outright

Gifts

New

Pledge

Balances*

Payments

on

Prior

Pledges

code Gift Type Total

2013 NMC Scholarship Open 1 -$ -$ 2,000$ rsTemporarily Restricted 2,000$ AMICAE Scholarship 1 -$ -$ 100$ rsTemporarily Restricted 100$ Captain Ray Skelton Maritime Scholarship 2 200$ -$ -$ esPermanently Restricted 200$ Commitment Scholarships 1 4,641$ -$ -$ qePermanently Restricted 4,641$ Daniel R. Olson Memorial Art Scholarship 1 50$ -$ -$ esPermanently Restricted 50$ Dennos Museum Center 13 1,835$ -$ 25$ rsTemporarily Restricted 1,860$ Doris J. Bautch Maritime Scholarship 1 -$ -$ 1,000$ rsTemporarily Restricted 1,000$ F. W. "Bill" and Annette Sorensen Memorial Scholarship 1 350$ -$ -$ esPermanently Restricted 350$ General Unrestricted Funds 24 1,074$ 550$ 5,653$ urUnrestricted 7,276$ International Affairs Forum Program 7 495$ -$ 3,000$ pTemporarily Restricted 3,495$ Jaquish Journalism Scholarship 1 -$ -$ 50$ rsTemporarily Restricted 50$ John Lewis Veterans for Peace Scholarship 1 -$ -$ 1,000$ rsTemporarily Restricted 1,000$ Nick Adamski Memorial Scholarship 1 -$ -$ 1,000$ rsTemporarily Restricted 1,000$ NMC Barbecue 15 2,436$ -$ -$ rsTemporarily Restricted 2,436$ NMC Non-Discretionary-Named Student Scholarship 9 14,752$ -$ -$ rsTemporarily Restricted 14,752$ Tasters' Guild Auction Program 59 7,480$ 1,000$ 1,000$ pTemporarily Restricted 9,480$ Underwater Archeology Program 1 6,000$ -$ -$ pTemporarily Restricted 6,000$ WNMC Radio 16 300$ -$ 2,080$ pTemporarily Restricted 2,380$ Yen Yoga & Fitness Scholarship 1 -$ -$ 1,000$ rsTemporarily Restricted 1,000$

156 39,613$ 1,550$ 17,908$ 59,070$

156 Gift(s) listed151 Donor(s) listed*Reports pledge balance. Any payments received during the month on prior pledges are reported under Payments on Prior Pledges. This report reflects monthly activity only; it is not a

cumulative report.

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Board Policy A-104.00 Board of Trustees Process

BOARD OF TRUSTEES VIDEO RECORDING OF MEETINGS The Board of Trustees establishes video recording to be conducted at regularly scheduled Board of Trustee meetings, including its annual meeting, noticed and scheduled special meetings, and emergency meetings to the extent permitted by law. Strategic planning and retreat meetings of the Board, as well as committee meetings of the Board of Trustees, will not be covered by this policy. The following standards shall be established for video recording of meetings of the Board of Trustees:

1. Video recordings shall be established with technology as determined by the Vice President of Finance and Administration.

2. Video recordings shall be made available to the public within eight days after the meeting.

3. Video recordings shall be maintained in a manner consistent with the Records Retention and Disposition Schedule, Staff Policy D-506.04. It is the intent of the Board of Trustees that video recordings shall be retained for no longer than one (1) year from the date of first publication.

4. Video recordings shall serve only as an auxiliary method of providing public access to the business of the Northwestern Michigan College Board of Trustees, are not intended as public records, and shall not replace written minutes of the Board of Trustees as required by Board Policy A-100.00. For purposes of compliance with MCL 15.269 of the Open Meetings Act, written minutes maintained and approved by the Board of Trustees shall remain the official minutes of the Board, and the minutes shall be subject to all requirements as provided under MCL 15.269, and as may be amended.

The Vice President of Finance and Administration, in conjunction with appropriate staff, shall be responsible for the development and publication of any further procedures or guidelines that may be necessary to administer this policy effectively.

Initially adopted _________________________, 2014

SHRR 2881919v1

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1  

           

 

 

 

          Lifelong& ProfessionalLearning

    To: Tim Nelson, President From: Marguerite Cotto, V.P. Date: March 18, 2014 Subject: Recommendation to Authorize Aircraft Purchase Requested Action Requesting that the Board authorize the purchase of 2 single-engine, complex aircraft to meet FAA training requirements. Purchase not to exceed $295,000. Background  

Aaron Cook has outlined the background for the proposed purchase of two Piper Arrow aircraft to augment the NMC fleet. As has been our strategy in previous purchase requests, this authorization would allow NMC to identify and purchase the aircraft, and to report to the Board the outcome. Funding source The purchase will be funded through the Aviation Capital account which has a current fund balance of $ 296,318.59. Thank you.  

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NMC Aviation Memo

Memo  

To: Marguerite Cotto, VP Lifelong and Professional learning 

From: Aaron Cook, Director of Aviation 

Date: 17 March 2014 

Re: Aircraft Replacement Acquisition Complex Single Engine 

Request 

I would like to replace our Single‐Engine Complex Aircraft, Cessna 172 RG (end the current lease when replacement aircraft arrive) 

with 2 Single Engine Complex Aircraft (aircraft with retractable gear).  These aircraft will be purchased on the used market, most 

likely 2000 model year or newer Piper Arrows.  These are very common aircraft, which will allow for good part availability and 

manufacture support.  This purchase will not exceed $295,000 and will be funded from the Aviation Capital Reserve Account. That 

account currently has 296,318.59.  At the end of our current budget year we will be adding approximately $350,000 to the Aviation 

Capital Account. 

Background 

In 2011 the FAA changed some training requirements to allow the Multi‐Engine aircraft to be used in the Single‐Engine Commercial 

course to meet the Complex Aircraft requirement.  At that time we revised our Training Course Outline and gained approval from 

the Grand Rapids Flight Standards District Office to use this curriculum.  At that time our aircraft needs changed to include reducing 

to 1, Cessna 172RG (currently this aircraft is leased from Ms. Ann Rogers and used in the CFI Course). 

Current 

On 4 March 2014 the FAA notified me of a letter of Interpretation coming out of Washington DC that will not allow a student to use 

the Multi‐Engine aircraft in the testing of the Single‐Engine Course (although they will still allow them to be used in training).  This 

practice does not provide good pedagogy to use one type of aircraft in training and another on a test.   Adjustments need to be 

made in light of this change.  We still have a Cessna 172 RG in our fleet to partially meet the need but doing so creates issues.  The 

aircraft has approximately 12,000+ hours on the airframe and will not be able to support the demand.  Second is that with only one 

aircraft, we will not meet the demand or experience the needed reliability should an issue arise with prolonged maintenance.  

Additionally, if we kept the Cessna 172 RG and bought only one aircraft it would be different enough to cause standardization issues 

in training and maintenance.  To keep the fleet as consistent as possible, the operation remains streamlined and efficient. 

To add to the equation, we are seeing continuous growth year to year.  Fall 2014 is no different; we expect another 40% growth over 

the Fall 2013 class (increase of 15 students).  This growth is requiring more assets and this purchase will help provide some capacity 

to meet the demand. 

 

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____________________________________________________________________________ To: Timothy J. Nelson, President

From: Vicki Cook, Vice President of Finance and Administration

Date: March 14, 2014

Subject: Renewal of Fifth Third Line-of-Credit Recommendation Authorize the renewal of the Fifth Third Line-of-Credit. Background Northwestern Michigan College has a $2 million dollar line-of-credit with Fifth Third bank. To date, the College has not drawn upon the line of credit. Fifth Third requires an annual renewal by the Board of Trustees.

MEMO Administrative Services

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____________________________________________________________________________

To: Timothy J. Nelson, President

From: Vicki Cook, Vice President of Finance and Administration

Paul Perry, Director of Campus Services

Date: March 17, 2014

Subject: West Hall roof replacement

This document is intended to provide an overview and recommendation for the selection of a

provider for a new roof on the remaining three sections (12,362 sq. ft.) of West Hall.

Board Authorization Requested

Authorize the administration to enter into a contract with Arrow Roofing in the amount of

$83,796 (a contracted amount of $76,178 plus $7,618 contingency), to install roofs.

Background / Scope of Work

The scope of this project is to install three (3) roof sections.

Bid Analysis

The two qualified bidders are:

Firm Location Bid Contingency Total

Bloxsom Roofing Traverse City $83,480 $8,348 $91,828

Arrow Roofing Traverse City $76,178 $7,618 $83,796

Funding Source

The funding source is the fiscal year 2014 Plant Fund budget.

MEMO

Administrative Services

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