A regular meeting of the Board of Trustees of the Nebraska State College System was convened in Room 1507 of the State Capitol, City of Lincoln, County of Lancaster, State of Nebraska, on Thursday, February 26, 1998.

In compliance with the provisions of Neb. Rev. Stat. Section 84-1411, printed notice of this meeting was mailed to each member of the Board of Trustees and was posted in the Office of the Secretary of the Board. In addition, copies of such notice were sent to the Associated Press, Lincoln Journal Star, and Omaha World-Herald on February 17, 1998. We, each of us, hereby acknowledge due and sufficient service to the above, the foregoing notice of the time and place and object of said meeting, and agree to meet in said meeting at the time and place presented.

Board Members attending: Dr. Alfred Gigstad, Nebraska City
Ms. Frances Grimes, Grand Island
Mr. Rick Kolkman, North Platte
Ms. Sheryl Lindau, Wayne
Ms. Lee-Ellen Matzke, Sidney
Mr. Jeff Renner, Bellevue

Board Member absent:
Dr. Doug Christensen, Lincoln

Student Board Members participating:
Mr. Broch Muhs, Wayne State College
Ms. Kimberlee Nelsen, Chadron State College (via video conference at 9:25 a.m.)
Mr. Andrew Tynon, Peru State College

System Office Staff participating:
Dr. Carrol Krause, Executive Director
Dr. Donna Nelson, Associate Executive Director for Fiscal and Facilities Management
Dr. Larry Schultz, Associate Executive Director for Academic Affairs & Legal Services
Ms. Suzi Shugert, Public Relations/Information Director
Ms. Kim Rauscher, Administrative Assistant

Others attending:
Dr. Samuel Rankin, President, Chadron State College (via video conference at 9:25 a.m.)
Dr. Thomas Krepel, Sr. VP for Academic Affairs, Chadron State College (via video conference at 9:25 a.m.)
Mr. Ed Hoffman, Vice President for Administration, Chadron State College
Dr. Robert Burns, President, Peru State College
Dr. David Ainsworth, Vice President for Academic Affairs, Peru State College
Ms. Susan Udey, Vice President for Administration and Finance, Peru State College
Dr. Daryll Hersemann, Vice President for Student Services, Peru State College
Dr. Donald Mash, President, Wayne State College
Mr. Andy Soll, Vice President for Administration and Finance, Wayne State College
Mr. Curt Frye, Vice President and Dean of Students, Wayne State College
Ms. Lori Gottula, Falls City
Ms. Becki Propst, Peru
Mr. Bob Engle, Auburn

Press:
Ms. Karen Griess, Lincoln Journal Star

CALL TO ORDER
Mr. Kolkman, Chair, called the meeting to order at 8:00 a.m. A roll call was taken: Gigstad, Grimes, Kolkman, Matzke; Muhs and Tynon were present. Lindau and Renner arrived after roll call was taken. Christensen and Nelsen were absent.

EXECUTIVE SESSION
Ms. Grimes moved and Ms. Matzke seconded a motion to go into executive session at 8:00 a.m. for the purpose of discussing personnel and legal issues. Gigstad, Grimes, Kolkman, Matzke; Muhs and Tynon voted aye. Motion carried.

Ms. Matzke moved and Ms. Grimes seconded a motion to go out of executive session at 8:25 a.m. Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Muhs and Tynon voted aye. Motion carried.

CALL TO ORDER
Mr. Kolkman, Chair, called the public session to order at 8:35 a.m. A roll call was taken: Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Muhs and Tynon were present. Nelsen joined the meet via video-conference at 9:25. Christensen was absent.

APPROVAL OF THE AGENDA
Ms. Matzke moved and Ms. Grimes seconded a motion to amend the agenda to add the Chadron State College Distinguished Service Award Recommendations as item 5.B.(0) and to add the Peru State College Underground Storage Tank Replacement as item 5.B.(4a). Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Muhs and Tynon voted aye. Motion carried.

Ms. Matzke moved and Ms. Grimes seconded a motion to approve the amended agenda. Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Muhs and Tynon voted aye. Motion carried.

PUBLIC COMMENTS
None

APPROVAL OF MINUTES FROM THE JANUARY 6, FEBRUARY 2 AND FEBRUARY 10, 1998 MEETINGS
Mr. Renner moved and Ms. Lindau seconded a motion to approve the minutes of the January 6, February 2 and February 10 meetings. Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Muhs and Tynon voted aye. Motion carried.

NEW BUSINESS -- CONSENT AGENDA
Personnel Recommendations (attached to official minutes)
Fall Semester Personnel Summary (attached to official minutes)
Fall Enrollment Reports (attached to official minutes)
Fall Instructional Load Reports (attached to official minutes)
December Graduation Summary (attached to official minutes)
Non-Resident Scholars Reports

	Chadron	Peru	Wayne	Totals
Total # Out-of-State Students	483	206	670	1,359
Non-Resident Scholars Participants	253	95	130	478
States of Origin:  CO  IA  KS  MO  SD  WY  Other	40  3  3  0  66  141  0	1  43  27  22  1  1  0	6  110  1  0  12  1  0	47  156  31  22  79  143  0

1998 Scholarship Report
Information on the Board of Trustees Scholarship campaign for 1998 was shared with Board members. A total of 287 applications were received: 106 for Chadron, 31 for Peru and 150 for Wayne. This total is up from 286 in 1997, when the numbers were 112 for Chadron, 28 for Peru and 146 for Wayne.

Grant Applications and Awards
CSC--NE Consortium for Service Learning
This grant application would provide funding for the implementation of a service-learning experience into the existing Environmental Management course. The experience is achieved by direct application of knowledge built core courses.

CSC--Eisenhower Professional Development Program
This grant application would assist school districts, through the Science and Math Learning Center, which are required to utilize a cooperating unit in order to receive their DDE funds. This cooperating arrangement has been in effect since 1988.

Funding Source:	Nebraska State Department of Education for U.S. Department of Education
Amount Requested:	$27,180
Funding Period:	10/1/97 - 9/30/98

Restrictions are imposed by regulation on claiming indirect costs.

CSC--Eisenhower Professional Development Program
This grant award is made on the above grant application.
Amount Awarded: $27,180

WSC--Empowering K-12 and College Teachers to Integrate Internet Tools in Classroom Instruction
This grant award will provide funding for a pilot project to train K-12 and college classroom instructors on the Internet tools that could be integrated into classroom instruction. The project is given the acronym AT.I.A.R.A. @ to identify the five steps of the project: Training, Implementation, Reflection, and Advancement.

WSC--Nebraska Writing Project Rural Initiatives
This grant award will fund the development of a Northeast Nebraska extension of the Nebraska Writing Project through Wayne State College, centered in summer institutes during 1998. Additional funding is anticipated to continue the project through two additional years.

Operating Expenditure and Financial Reports (attached to official minutes)

Contracts and Change Orders
CSC--Hildreth Parking Lot

PSC--Park Avenue

WSC--Connell Hall

 WSC--Rice/Carlson

WSC--Studio Arts Change Order #1

LB309 Allocations
Chadron State College

Acceptance of $490,120 for renovation of the Burkhiser Technology Complex
Allocation Date 11/25/97
Allocation Amount: $490,120.00
College Contribution 225,511.50
Total Project Cost* $715,631.50

This allocation is approximately 2 of the project cost. It is anticipated an allocation will be made for the remaining project cost in FY98/99.

Wayne State College
Retrieval of $1,275 for study of the expansion joint problem at Benthack Hall
Allocation Date 8/1/94
Allocation Amount: $2,550.00
Retrieval Amount:     1,275.00
Total Project Cost:  $1,275.00

LB309 Status Reports (attached to official minutes)
Revised 1998-99 LB309 Requests (attached to official minutes)
Campus Physical Plant Reports (attached to official minutes)
Fall Occupancy/Income Reports (attached to official minutes)
Contingency Maintenance Reports (attached to official minutes)
Revenue Bond Expenditure Reports (attached to official minutes)

Ms. Grimes moved and Mr. Renner seconded a motion to approve the Consent Agenda. Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Muhs and Tynon voted aye. Motion carried.

SUBCOMMITTEE AGENDA
Academic Affairs, Student Life & Personnel Subcommittee (Lee-Ellen Matzke, Chair)
Preliminary Notification of New Academic Programs
Ms. Matzke moved and Ms. Grimes seconded a motion to approve the following list to be submitted as the Preliminary New Program Notification List to the Coordinating Commission for Postsecondary Education:

Chadron State College
No new programs currently under consideration
Peru State College
No new programs currently under consideration
Wayne State College
Nebraska State College System proposal for system programs (Spanish, Social Work and others).
Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Muhs and Tynon voted aye. Motion carried.

Due to complications with the video conferencing network, the two remaining Academic agenda items were delayed until representatives from Chadron State College were available.

Business Affairs Subcommittee-Budget (Jeff Renner, Chair)
Deficit Requests, Governor=s Recommendation

A status report on the Board of Trustee=s Deficit Request for 1997-99 submitted to the Governor on October 17, 1997, was shared with Board members as follows:

STATUS REPORT - 1997-99 DEFICIT REQUEST
Item Requested	Amount Requested    1997-98              1998-99	Governor=s Recommendation  1997-98                     1998-99	Appropriations Committee Recommendation  1997-98                     1998-99
Health insurance increase  (submitted 1/28/98)	$168,691	(Governor=s deficit recommendations were submitted to the Legislature before notification of the health insurance rate increase was received by the System Office.)	Unknown at this time
CSC and WSC -- installation and equipping of Technology Classrooms	$ 38,000        $145,000	$ 0                               $ 0	Unknown at this time
WSC --  3 FTE additional faculty	$145,800	$ 0	Unknown at this time
PSC --  2 FTE Campus Security Officers	$ 55,652          $ 55,652	$ 55,652                 $ 55,652	Unknown at this time
Board of Trustees/Colleges--  Restoration of LB 9 funds returned to state to undertake fire and life safety projects on the three campuses	$532,900	$ 0	Unknown at this time
TOTALS	$ 93,652        $1,048,043	$ 55,652                   $ 55,652	Unknown at this time

Business Affairs Subcommittee--Physical Plant (Fran Grimes, Chair)
Wayne State College, Connell Hall Renovation Project Bid
Ms. Grimes moved and Mr. Renner seconded a motion to approve the construction contract with Beckenhauer Construction, Inc. of Norfolk, NE for it=s total bid of $2,784,600 to renovate Connell Hall on the Wayne State College campus. Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Muhs and Tynon voted aye. Motion carried.

Peru State College, Underground Storage Tank Replacement
Ms. Grimes moved and Mr. Renner seconded a motion to authorize award of a contract with Tony=s Cement Work, Inc. of Lincoln and Shirley Environmental of Nebraska City at a cost of $182,000 plus a unit price for removal and disposal of contaminated soil at $99.00 per cubic yard and a unit price for removal of contaminated fuel oil, gasoline and/or water at $4.60 per gallon to replace three small fuel oil and three small gasoline underground storage tanks with two larger tanks at Peru State College. Funds are provided through LB 388, which was enacted to meet governmental mandates. Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Muhs and Tynon voted aye. Motion carried.

Business Affairs Subcommittee--Revenue Bond (Al Gigstad, Chair)
Appointment of Audit Firm
Dr. Gigstad moved and Ms. Grimes seconded a motion to approve renewal of the agreement with KPMG Peat Marwick to provide revenue bond auditing services for fiscal year 1997-98 for a total fee of $16,250 which includes estimated out-of-pocket expenses of $4,750. Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Muhs and Tynon voted aye. Motion carried.

INFORMATION ITEMS
State of Legislative Bills
LB 976 (Wehrbein) to direct the Board of Trustees of the Nebraska State Colleges to provide a plan regarding Peru State College as amended. A hearing was held on February 17 and, as of today=s meeting, the bill has been tabled by the Appropriations Committee.

LB 1100 (Lynch) to provide for deferred maintenance repair, renovation, and construction projects; to change provisions related to capital construction; to provide for appropriation of funds. This bill would provide $5.9 million per year for paying off revenue bonds for the most urgently needed maintenance and repair costs on college campuses. The University of Nebraska system would get $5.5 million and the State Colleges would receive $400,000. Matching funds would be required from the institutions. A hearing was held on February 3 and the Appropriations Committee has voted to send LB 1100 to the floor for debate. Dr. Krause gave the Board notice that a request for a $1.00 increase per credit hour in the Capital Improve Fee would most likely come before them at an upcoming meeting in order to provide the matching funds required by the LB 1100.

LB 1138 (Vrtiska) to appropriate funds to the Board of Trustees of the Nebraska State Colleges. This hearing was also held on February 17. The Appropriations Committee has voted to advance LB 1138 to the floor for debate.

Academic Affairs, Student Life & Personnel Subcommittee (Lee-Ellen Matzke, Chair)
Chadron State College Distinguished Service Award Recommendations
Ms. Matzke moved and Ms. Grimes seconded a motion to approve the Distinguished Service Award Recommendations as submitted by Chadron State College. Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Muhs, Nelsen and Tynon voted aye. Motion carried.

Chadron State College, Presidential Appointment
Ms. Matzke moved and Mr. Renner seconded a motion to appoint Dr. Tom Krepel, currently serving as Senior Vice President for Academic Affairs at Chadron State College, as interim President effective July 1, 1998, at a salary rate of $110,000. Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Muhs, Nelsen and Tynon voted aye. Motion carried. Mr. Kolkman invited Dr. Krepel to make some comments.

INFORMATION ITEMS -- continued
Presidents and Student Trustee Reports
Ms. Nelsen, Chadron Student Trustee, reported that the campus had observed the National Eating Disorder Week with various activities. She also commented that the Campus Activities Board (CAB) was in the process of reviewing budget requests.
Dr. Rankin reported in the on-going strategic planning process being done at Chadron State. Focus groups are looking at areas for possible growth.
Mr. Tynon, Peru Student Trustee, stated that the Student government has become more active since recent legislation regarding Peru State College. He also reported that the trip to Australia by the criminal justice class was a huge success.
Dr. Burns complimented the faculty, staff and students of Peru State College for their continued efforts to provide an excellent educational experience while the future of Peru State is debated by the Legislature. He also announced that many high school students would be on campus during the coming month for Business Day, History Day and the Quiz Bowl.
Mr. Muhs, Wayne Student Trustee, expressed his concern regarding LR 319 CA (Vrtiska) to make the State College Board an elected body, specifically regarding the suggestion that the student body president of each college shall serve as the student trustee to the Board. He sent a letter to Senator Vrtiska expressing his concern over time commitment to serve as student body president and as student trustee. He also reported that the selection process has begun for the 1998-99 Student Trustee and Student Senate elections would be held soon.
Dr. Mash reported that the Studio Arts Building project is progressing, with a target opening this fall. The Connell Hall Renovation project is to begin in May; and a two-way interactive classroom is now in operation at Wayne State College. In addition, a dedication ceremony is planned for the Life Long Learning Center in Norfolk.

ADJOURNMENT -- The meeting was adjourned at 9:45 a.m.