Minutes of the Meeting of the State Board of Trustees

BOARD MINUTES

JUNE 14, 2007

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MINUTES OF THE MEETING OF THE STATE BOARD OF TRUSTEES

IVYTECHCOMMUNITY COLLEGE OF INDIANA

INDIANAPOLIS, INDIANA

JUNE 14, 2007

Chairman William R. Goins called the June 14, 2007, regular meeting of the State Board of Trustees to order at 12:30 p.m. in Suite 6 & 7 at the Sheraton Indianapolis Hotel and Suites, 8787 Keystone Crossing, Indianapolis, Indiana.

A.ROLL CALL:

Secretary Marvin E. Foote called the roll and the presence of a quorum was announced. The following State Trustees were present:

Mr. William R. Goins, Chair

Mr. Jesse R. Brand, Vice Chair

Mr. Marvin E. Foote, Secretary

Mr. Joseph T. Bumbleburg

Ms. Leigh A. Duckwall

Mr. John P. Griffin

Mr. Lee J. Marchant

Mr. Mark J. Neff

Mr. Norman E. “Ned” Pfau, Jr.

Ms. Martie Rivas-Ramos

Mr. V. Bruce Walkup

Ms. Linda E. White (via phone)

Ms. Kaye H. Whitehead

Trustees unable to attend the meeting:

Mr. Lawrence R. Foster, Jr.

B.NOTICES OF MEETINGS MAILED AND POSTED:

Secretary Marvin E. Foote confirmed that notices of the June 14, 2007, regular meeting were properly mailed and posted.

C.APPROVAL OF BOARD MINUTES:

Chairman William R. Goins directed the trustees’ attention to the minutes of the April 19, 2007, regular board meeting and the May 30, 2007, special board meeting. Trustee Martie Rivas-Ramos made the motion to approve the minutes of the April 19, 2007, regular meeting and the May 30, 2007 special board meeting as submitted. Trustee John P. Griffin seconded the motion, and the motion was carried unanimously.

BOARD MINUTES

JUNE 14, 2007

D.STATE OF THE COLLEGE:

Chairman Goins called on President Gerald I. Lamkin for the President’s Report.

President Lamkin called on Chuck Harris, Vice President for Development, for a report on the LamkinCenter. Vice President Harris said that Ivy Tech Foundation partnered with Central Office and Region 8-Central Indiana on April 22 to honor President Lamkin as part of the annual April in Paris event. Over $75,000 was netted for this joint function with $48,000 committed to the LamkinCenter. It was a wonderful event to recognize President Lamkin on his retirement, and we appreciate those who helped support the event. Vice President Harris directed the trustees to the brochure in their folders that highlights the purposes of the Lamkin Center: jumpstart and develop new distance education courses and programs that are desperately needed and review instructional delivery systems to make sure they are efficient and effective at delivering our programs throughout the state. The Center will help faculty prepare classrooms so they are able to integrate technology into their curriculum, and help train faculty in using that technology. In total, we are at a little over $1.4 million in support for the LamkinCenter. We owe much thanks to the largest and most consistent donor to Ivy Tech—the State of Indiana, and particularly the Indiana General Assembly, with a $1 million appropriation for the LamkinCenter. We have also worked with all 14 regions that are doing something innovative related to the goals of the LamkinCenterin their own regions. Ivy Tech Foundation is providing a matching fund, and as a result of that partnership, there is another $300,000 of support for either regional projects or the LamkinCenter centrally. Vice President Harris joked that if one of the state trustees is inclined to set up the first endowed chair at Ivy Tech for $1.5 million, he would be happy to help structure that gift. On a serious note, he expressed hope that the first endowed chair at Ivy Tech will be for the Director for the LamkinCenter.

President Lamkin called on Jeff Fanter, Executive Director of Marketing and Communications, for a marketing update. Mr. Fanter directed the trustees to their folders for copies of newspaper articles from around the state concerning the recent regional visits of President-elect Snyder and President Lamkin. Mr. Fanter also said that a special video honoring President Lamkin was put together for the April in Paris event, and he played the 10-minute video for everyone in attendance. Concluding his remarks, Mr. Fanter said that the trustees have witnessed with this video and the video played at the President’s Awards Dinner last night the telling of the Ivy Tech story around the state. He said that his goal is to tell the Ivy Tech story around the country: Our new marketing campaign rolls out in October and we will get more aggressive with our media relations efforts.

At this, his last Board of Trustees meeting, President Lamkin took a few moments to summarize his 39 years of service with Ivy Tech. He said that Ivy Tech has gone through many focus studies, and the name that everyone recognizes is “Ivy Tech.” He said that he has not missed a state trustee meeting or Foundation board meeting in the 24 years he has been president, and before that, he never missed a regional board meeting as a regional administrator. He suffered a stroke, had broken bones, and has lived through the Indianapolis Star exposés, but he still found ways to attend meetings. He commented that he is proud of new president Tom Snyder. President Lamkin identified several regional board chairs who were in attendance. He called on Region 8 Board Chair, Ural Smith, for comments on behalf of all regional board members. Mr. Smith said that he was pleased to be part of the activities today. He said that President Lamkin’s career at Ivy Tech has been outstanding and he has clearly demonstrated his leadership in the communities. He said that he feels proud that the College is moving ahead in the same direction that the state board has set forward. He knows that President Lamkin will continue to do great things for the communities. President Lamkin said that the regional boards are the “main street” of Ivy Tech. He also applauded the chancellors, vice presidents, and the staff of Ivy Tech. He said that they are wonderful people. As he takes another path with Ivy Tech, he will write the history of Ivy Tech. Helping him do this is Bill DuBois, former Ivy Tech employee. He said he will also work with the new president and the Ivy Tech Foundation. He said that he and his wife, Louise, and their family appreciate the opportunity that the College and Foundation have given them over the past 39 years. As he departs this position, he leaves us what he has tried to convey as president: he is for the students—always has been and always will. The students should take pride in themselves and know that the sky is the limit. He thanked all of the current and former state and regional trustees of Ivy Tech. He said he takes pride in becoming the first president emeritus of Ivy Tech. He said that when he started his career at Ivy Tech in 1967, the mayor of Indianapolis—Dick Lugar—introduced him to the building trades. For the last 39 years, the building trades have had representation on the Ivy Tech Board of Trustees, and he presented a pin to Trustee Foote, the last building trades representative to serve as a state trustee. He said that he does not say goodbye, but rather auf Wiedersehen!, which means “I’ll see you later.” He concluded his remarks by saying that Ivy Tech is his life.

Trustee Bumbleburg read aloud in its entirety Resolution Number 2007-38, Appointment of Gerald I. Lamkin as President Emeritus of IvyTechCommunity College of Indiana, and moved for its approval. Trustee V. Bruce Walkup seconded the motion, and the trustees showed their approval by standing. The motion carried unanimously.

Trustee Bumbleburg presented President Lamkin with the signed and framed resolution. Chairman Goins thanked President Lamkin for everything he has done and thanked his family for everything they have endured.

E.TREASURER’S REPORT:

Chairman Goins called on Bob Holmes, Vice President for Finance/Treasurer, for the Treasurer’s Report.

Treasurer Bob Holmes said that we have completed 11 months of the 2006-07 fiscal year and we will begin the year-end closeout process in about three weeks. He said that it will be a challenge this year as we begin implementation of the finance module of the new Banner software system at the same time we do the closeout of the old fiscal year. As we near the end of 2006-07, it has been another good year for Ivy Tech. A year ago, after going to meet with the rating analysts in New York City, we received our first AA- credit report from Fitch Ratings and Standard and Poor rated us at A+ and improved our outlook from stable to positive. Since that time, we have had another year of strong enrollment growth and a successful legislative session. Our College financial position has continued to improve as well. Our general fund revenues are up $19 million versus the same time last year. This growth is primarily due to our enrollment growth, as student fee revenue increased nearly $15 million. State appropriations this year are up $5 million. Other revenue is down by about $300,000 as increases in investment income have been offset by declines in overhead recovery, insurance refunds, and other miscellaneous revenue. Expenditures have increased by about $16 million this year from last year, and we continue to have a positive spread of about $3 million this year. The majority of the expenditure increase is for salary and benefits, which are up about $14 million, as a result of the 3% and 4% salary pools last year for staff and faculty, respectively, andthe addition of new faculty and staff added to serve our students. Supplies and expenses and other expenses have grown by about $1.9 million, which includes legal expenses which exceeded our budget. Interim Counsel Bill Riggs provided a full explanation to the trustees in Executive Session. Several capital projects are currently underway totaling $140 million. They are either in the midst of or nearing completion. All of those are on track to finish within the budget as well. When they are all in service, they will have a significant impact on both the quality and quantity of our academic space. Vice President Holmes called for questions, and there were none. Trustee Foote moved that the Treasurer’s Report be approved. Trustee Kaye H. Whitehead seconded the motion, and the motion carried unanimously.

F.COMMITTEE REPORTS:

Item 1Reporting for the Executive Committee, Chairman Goins reported that no Executive Committee meeting has been held since the Board last met.

Chairman Goins asked Trustee Lee J. Marchant to present Resolution Number 2007-20. Trustee Marchant explained that the terms of certain regional trustees are due to expire on June 30, 2007. In accordance with state statute, three nominations for each region trustee vacancy have been submitted by each of the regional boards for the state board of trustees’ consideration. Trustee Marchant moved to approve Resolution Number 2007-20, Appointment and Reappointment of Regional Trustees, for eight regions and the respective names set forth in the attachment to the resolution. Trustee Bumbleburg seconded the motion, and the motion carried unanimously.

Item 2Chairman Goins called upon Trustee Norman E. Pfau, Jr. for the Budget and Finance Committee Report. Trustee Pfau presented the following resolutions for approval.

Resolution Number 2007-21, Approval of the College 2007-08 Fiscal Year Internal Operating Budgetapproves the internal operating budget for the College for the 2007-2008 fiscal year. The general fund unrestricted operating revenue estimate for the 2007-2008 fiscal year, as recommended by the administration, totals $291,885,582. The Vice President for Finance and Treasurer, as directed by the President, shall affect a reduction or increase to these budget allocations as necessary in order to maintain a balanced budget for the fiscal year. Such action may occur whenever it is determined that budgeted revenue is not being collected as has been projected, or to adjust for a significant shift in enrollment between regions or sites, or to adjust for changes in other income.

Resolution Number 2007-22, Renewal of Custodial Services Contract,Region 5authorizes Region 5 to enter into the first two-year renewal option period for the term July 1, 2007, through June 30, 2009, when the initial period of the existing custodial services agreement with MJV Group expires on June 30, 2007. The Region 5 Board of Trustees recommended approval of the contract renewal option proposal at the May 31, 2007, meeting. The contract renewal option with MJV Group will not exceed $302,268 for the services to be performed at the Kokomo location buildings, the HolmanBuilding in Peru, and the Logansport campus.

Resolution Number 2007-23, Approval of Cleaning Services Contract, Region 7 approvesa contract for Region 7 for custodial services with C. T. Enterprises, Inc. d.b.a. TBM Building Services for an initial two year period, fiscal years 2007-2008 and 2008-2009, with an option to renew and extend the contract for four additional one year terms when the current contract for cleaning services ends on June 30, 2007. C. T. Enterprises, Inc. d.b.a. TBM Building Services submitted the lowest and best bid in accordance with College procedures and applicable law and the Region 7 Board of Trustees approved the awarding of the contract at the May 17, 2007, meeting. A contract will be awarded to C. T. Enterprises, Inc. d.b.a. TBM Building Services not to exceed $267,384 annually for a total cost of $534,768, with escalation clauses available to the vendor upon approval by the College at each renewal option period.

Resolution Number 2007-24, Approval of Custodial Services Contract, Region 12 grants approval forRegion 12 to contract for custodial services with ABM Janitorial Services for the 2007-2008, 2008-2009, and 2009-2010 fiscal years when the current two-year custodial contract expires on June 30, 2007. ABM Janitorial Services submitted the lowest and best bid in accordance with College procedures and applicable law, and the Region 12 Board of Trustees recommended acceptance of the contract proposal at the May 17, 2007, meeting. A contract will be awarded to ABM Janitorial Services not to exceed $939,240 plus extra annual services provided during the year at the hourly rate bid.

Resolution Number 2007-25, Approval of Security Services Contract, Region 12 grants approval for Region 12 to contract for security services with Security Enforcement, who submitted the lowest and best bid in accordance with College procedures and applicable law, for the three fiscal year periods 2007-2008 through 2009-2010 when the current contract expires on June 30, 2007. The Region 12 Board of Trustees recommended accepting the contract proposal at the May 17, 2007, meeting. A contract will be awarded to Security Enforcement not to exceed $265,371 plus extra annual services provided during the year at the hourly rate bid.

Resolution Number 2007-26, Approval of Contract for College Forms and Paper Supplies authorizes and approves the contracts for Region 8 to make available to the college-wide student and administrative areas the supply of College forms and paper supplies annually. Region 8 conducted the bidding process in accordance with College procedures, and Welsh & Associates provided a bid meeting the required specifications for the amount of $252,687 for a one year period beginning July 1, 2007 through June 30, 2008. Pricing for any additional orders subsequent to the initial order will be increased or decreased based on the price indexing within the standards of the market. The Region 8 Board of Trustees recommended the approval of the contract at the June 4, 2007, meeting. A contract will be awarded to Welsh & Associates for the amount of $252,687 to provide the necessary forms and paper supplies, storage for undelivered stock, and direct reorder on-line through the Internet as needed by each College location.

Resolution Number 2007-27, Approval of a Contract for Regional Bookstore Operation Services, Region 1. Trustee Pfau said that the resolution was withdrawn.

Resolution Number 2007-28, Approval to Purchase Furniture for the NewAcademicBuilding in Valparaiso Phase II, Region 1 authorizesRegion 1 to furnish the Phase II new academic building in Valparaisoas it is scheduled to be occupied in February, 2008. The region solicited bids during Phase I of the construction in accordance with College policy and has evaluated the offerings and selected its preferred vendors. KI was selected to provide furniture for classrooms, offices, and common areas for Phase 1 and they guaranteed pricing for furniture in Phase II to not exceed a 5% increase in price per unit. The Region 1 Board of Trustees voted to recommend the use of KI as the primary vendor for Phase II furniture on March 8, 2007. A blanket purchase order will be issued to KI not to exceed $500,000 for Phase II furniture.

Trustee Pfau made the motion to approve these seven resolutions, and Trustee Walkup seconded the motion. The motion carried unanimously.

Trustee Pfau reported that the Budget and Finance committee also discussed consumable fees for the new fiscal year and the biennial budget request for 2007-09 during their meeting this morning.