A regular meeting of the Board of Trustees of the Nebraska State College System was convened in Room 1510 of the State Capitol, City of Lincoln, County of Lancaster, State of Nebraska, on Friday, May 15, 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 May 6, 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. Doug Christensen, Lincoln
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
Student Board Members participating:
Ms. Angela Hunke, Chadron State College
Mr. John Funkhouser, Peru State College
Ms. Deanna Badura, Wayne 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
Dr. Thomas Krepel, Sr. VP for Academic Affairs, Chadron State College
Dr. Robert Burns, President, Peru State College
Dr. Susan Udey, Vice President for Administration and Finance, Peru State College
Dr. Donald Mash, President, Wayne State College
Dr. Jo Taylor, Vice President for Academic Affairs, 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
Mr. Bill Beavers, Revenue Bond Financial Consultant, Ameritas Investment Corporation
Others attending Public Session only:
Dr. Daryll Hersemann, Vice President for Student Services, Peru State College
Dr. Joyce Hardy, Dean of Math & Science, Chadron State College
Ms. Kim Nelsen, former Chadron State College student trustee
Ms. Misti Munson, former Peru State College student trustee
Mr. Peter Claussen, former Board of Trustee member
Dr. David Powers, Executive Director, Coordinating Commission for Postsecondary Education
Ms. Patsy Martin, Information Specialist, Coordinating Commission for Postsecondary Education
Ms. Carna Pfeil, Fiscal Officer, Coordinating Commission for Postsecondary Education
Dr. John Ingram, Research Officer, Coordinating Commission for Postsecondary Education
Mr. Larry Scherer, Consultant, Coordinating Commission for Postsecondary Education
Mr. Phil Hovis, Legislative Fiscal Affairs
Ms. Shari Knoerzer, Policy Research Office
Mr. Ryan Junck, Senator Floyd Vrtiska=s Office
Ms. Nancy Donovan
Ms. Margareta Knopik, Assistant to the Director of Continuing Education, Peru State College
Ms. Lilly Blase
Ms. Tara Kreklau, Academic Advisor/Women=s Basketball Coach, Peru State College
Ms. Erin Sayer, Director of Residence Life, Peru State College
Mr. Joseph Kincaid, Assistant Professor of Mathematics, Peru State College
Ms. Lori Gottula, former Peru State College employee
Ms. Sabra Pegler, parent of a Peru State College student
Ms. Vivian Davis
Dr. Spencer Davis, Professor of History, Peru State College
Dr. Anthony McCrann, Associate Professor of English, Peru State College
Mr. Thomas Ediger, Professor of Music, Peru State College
Dr. Charles (Chet) Harper, Professor of Speech/Theatre, Peru State College
Mr. John Davis, Peru State College graduate
Dr. William Snyder, Professor of Business, Peru State College
Dr. Lester Russell, Professor Emeritus, Peru State College
Ms. Pam Williams, Student Support Services Intervention Coordinator, Peru State College
Press:
Mr. Larry Peirce, Lincoln Journal-Star
Ms. Jena Janovy, Omaha World-Herald
Ms. Staci McKee, AP Lincoln
Mr. Kevin O=Hanlon, AP Lincoln
Mr. Bill Wolf, Auburn News
Ms. Shiloh Woodman, KPTM TV
Mr. Kevin Ridley, KOLN-KGIN TV
Mr. Doug Walker, KOLN-KGIN TV

CALL TO ORDER
The meeting was called to order at 8:40 a.m. A roll call was taken: Gigstad, Grimes, Kolkman, Lindau; and Funkhouser were present.

WORK SESSION
The Physical Plant Subcommittee held a work session to hear presentations from each of the campuses on their capital construction project priorities.

RECESS -- TEACHING EXCELLENCE AWARD LUNCHEON
Board members adjourned to attend the Teaching Excellence Award Luncheon honoring Dr. Patricia Cruzeiro, Associate Professor of Education, Chadron State College.

EXECUTIVE SESSION
Ms. Matzke moved and Ms. Grimes seconded a motion to go into executive session at 1:30 p.m. for the purpose of discussing personnel and legal issues. Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, and Renner voted aye. Motion carried.

Ms. Matzke moved and Dr. Christensen seconded a motion to go out of executive session at 2:45 p.m. Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, and Renner voted aye. Motion carried.

CALL TO ORDER
Mr. Kolkman, Chair, called the public session to order at 2:55 p.m. A roll call was taken: Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Hunke, Funkhouser, and Badura were present.

APPROVAL OF THE AGENDA
Dr. Christensen moved and Ms. Matzke seconded a motion to approve the agenda. Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Hunke, Funkhouser, and Badura voted aye. Motion carried.

PUBLIC COMMENTS
Mr. Kolkman took a moment to welcome the three new student trustees for 1998-99. He challenged them to learn and share with the Board issues of interest to the students on the campuses.

Ms. Sabra Pegler, the parent of a Peru State College student, addressed the Board expressing her opposition to the proposed move of the college to Nebraska City.

Ms. Pam Williams, an alumni of Peru State College and current staff member, read the following statement into the record in support of Dr. Robert Burns that had been signed by 38 individuals:
"We, the undersigned faculty and staff at Peru State College, disagree with the recent actions taken by a group of Peru State College faculty union members to destroy the administration of Dr. Robert Burns, President of Peru State College. We believe a campaign of misinformation and distortion of facts has been waged against Dr. Burns and his administration.
"We thank Dr. Burns for his eight years of leadership at our college. We applaud his dignity under pressure. We wish the very best in the future for Dr. Burns and his gracious wife, Pat. We celebrate the accomplishments at our college during his tenure, with Pat at his side. We recognize these accomplishments which include the following:
"Dr. Burns came to the college when it was around a million dollars in debt. The college was denied local credit and had to buy paint one gallon at a time. Under Dr. Burns' leadership the college is now on a sound financial basis. Proper financial procedures and guidelines are in place to govern and monitor college finances.
"Dr. Burns has, over the last six years, invested millions in college generated, non-tax money, to renovate and upgrade the college facilities, including new sidewalks, roofs, equipment to run the Physical Plant, and desks and equipment for offices.
"Dr. Burns has kept technology up to date: new computers added to faculty and staff offices, computer labs brought up to date, and Internet and e-mail access for all.
"Dr. Burns promoted the information age for research in the library and across the campus with electronic full-text journal articles and world wide web resources.
"Dr. Burns expanded campus self-governance greatly by creating faculty, professional staff, and support staff senates.
"Dr. Burns introduced "special" programming by setting aside money to bring divergent groups to campus to promote multi-cultural awareness.
"Dr. Burns expanded classes at off-campus sites and distance education to enable non-traditional place-bound students to earn a college degree.
"Dr. Burns created new positions as part of the permanent budget. These were in support and professional staff areas, as well as building a strong faculty.
"Dr. Burns made the decisions necessary to bring the college from bankruptcy to the sound vibrant institution it is today.
"The undersigned wish to express our support and appreciation of Dr. Burns. Many faculty and staff have expressed agreement but feel they cannot sign a letter of support because of fear of retribution on campus and from the surrounding communities."
Mr. John Davis, a recent graduate of Peru State College, spoke to the Board regarding the possible reassignment or termination of Dr. David Ainsworth, Vice President of Academic Affairs, and Dr. Robert Burns, President of Peru State College.

Mr. Joe Kincaid, Assistant Professor of Mathematics, Peru State College, expressed his concern regarding the replacement of trees removed on the campus and the flying of the American flag around the clock unless it has proper lighting.

APPROVAL OF MINUTES FROM THE APRIL 8, 1998 MEETING
Ms. Matzke moved and Ms. Grimes seconded a motion to approve the minutes of the April 8 meeting. Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Hunke, Funkhouser, and Badura voted aye. Motion carried.

NEW BUSINESS -- CONSENT AGENDA
Personnel Recommendations (attached to official minutes)
Grant Applications
CSC--Chadron Education Partnerships
Funding Source: Corporation for Public Broadcasting/NCATE
Amount Requested: $4,412.00
Funding Period: 1/98 -12/98
This grant application is for funding for software training for pre-service students and public school teachers on the GIS software package.

CSC--NBDC 1998
Funding Source: US Small Business Administration through UNO subcontract
Amount Requested: $51,000.00
Funding Period: 1/1/98 - 12/31/98
Grant will require State Matching Funds: $10,000 for travel, supplies, consultants, graduate assistant and office expenses.
Grant will require In-Kind Funds: faculty release time, use of office space, use of telephone system and equipment
Grant will fund 1.25 existing positions
This grant application is for funding for the continuation of the Nebraska Business Development Center at Chadron State College for 1998. Funding will provide for the Director and a full-time assistant=s salary and benefits, consulting fees, travel, supplies and other operational expenses. (Program has been in place at Chadron since 1977.)

WSC--Student Support Services (S.T.R.I.D.E.)
Funding Source: US Department of Education
Amount Requested: $184,250
Funding Period: 10/1/98 - 9/30/99
Grant will include Indirect Cost Funds for the College's use
Grant will fund 4.13 FTE existing positions
This grant application is for funding to continue the STRIDE (Students Taking Responsibility in Development and Education) Office at Wayne State. The College has received an award for a project period of 5 years (10/1/97-9/30/02), and this is an application for the funding for the second year of this project period.

Grant Awards
CSC--Chadron Education Partnership
Funding Source: Corporation for Public Broadcasting/NCATE
Amount Awarded: $4,412.00
Funding Period: 1/98 -12/98
This grant award will provide funding for software training for pre-service students and public school teachers on the GIS software package.

CSC--Wetland Education: Lake Pontchartrain
Funding Source: Lake Pontchartrain Basin Foundation
Amount Awarded: $25,000.00
Funding Period: 3/1/98 - 11/30/98
Grant includes Indirect Cost Funds for the College's use: $2,800 for sponsored program development.
Restrictions imposed by regulation on claiming indirect costs.
This grant award will provide funding for information and resources about wetlands and upland habitats from a geographic perspective through workshops and the Internet for Shall Beach and the Mississippi River Gulf Outlet, Lake Pontchartrain, Louisiana. The grant offers four workshops that provide basic ecological concepts, technological skills and methods of interpretation necessary for assessing wetland and upland habitat change. Workshops on cut channel and hurricane effects on wetlands using aerial photography, satellite imagery, wetland maps, and introduce traditional mapping technology into the classroom.

CSC--NBDC 1998
Funding Source: US Small Business Administration through UNO subcontract
Amount Awarded: $51,000.00
Funding Period: 1/1/98 - 12/31/98
Grant will require State Matching Funds: $10,000 for travel, supplies, consultants, graduate assistant and office expenses.
Grant will require In-Kind Funds: faculty release time, use of office space, use of telephone system and equipment
Grant will fund 1.25 current positions
This grant award will provide funding for the continuation of the Nebraska Business Development Center at Chadron State College for 1998. Funding will provide for the Director and a full-time assistant's salary and benefits, consulting fees, travel, supplies and other operational expenses. (Program has been in place at Chadron since 1977.)

Contracts and Change Orders
Chadron State College--Contracts
Location on Campus: Armstrong Gymnasium
Contracted Work: Bathroom repairs
Contract Amount: $42,190.00
Fund Source: Task Force for Building Renewal
Contractor: Ainsworth-Benning Construction of Spearfish, SD
Architect: Rex Peterson of Rushville, NE
Location on Campus: Burkhiser Technology Complex
Contracted Work: Entrance repairs
Contract Amount: $32,360.00
Fund Source: Task Force for Building Renewal
Contractor: Ainsworth-Benning Construction of Spearfish, SD
Architect: Rex Peterson of Rushville, NE
Chadron State College--Change Order
Location on Campus: Stadium Concession/Washroom Building
Number & Description: CO1--Modifications to electrical service
Change Order Amount: $2,038.00
Fund Source: Chadron State College Foundation
Contractor: Woodland Construction of Chadron, NE
Architect: Rex Peterson of Rushville, NE

Wayne State College--Contracts
Location on Campus: Parking Lot 10
Contracted Work: Professional Services for parking lot expansion
Contract Amount: $8,957.00
Fund Source: Contingency Maintenance
Contractor: Olsson Associates of Lincoln, NE
Location on Campus: Rice Auditorium
Contracted Work: Professional Services for parking lot expansion
Contract Amount: $8,587.00
Fund Source: Contingency Maintenance
Contractor: Olsson Associates of Lincoln, NE
Location on Campus: US Conn Library
Contracted Work: Equipment and installation for ITV Distance Learning Classroom
Contract Amount: $32,487.00
Fund Source: NEB*SAT Appropriation
Contractor: Cytek Media Systems of Topeka, KS
Location on Campus: Campus Grounds
Contracted Work: Administration services for chilled water pump/piping relocation
Contract Amount: $3,000.00
Fund Source: Task Force for Building Renewal
Contractor: Alvine Associates of Omaha, NE
Location on Campus: Student Center Dining Room
Contracted Work: Professional services for nine small renovation projects
Contract Amount: $27,670.00
Fund Source: Contingency Maintenance
Contractor: Zenon Beringer Mabry/Partners of Omaha, NE
Location on Campus: Student Center
Contracted Work: Professional services for landscaping
Contract Amount: $7,320.00
Fund Source: Contingency Maintenance
Contractor: The Big Muddy Workshop of Omaha, NE
Location on Campus: Streets and Parking Lots
Contracted Work: Professional services for study of paving overlay costs
Contract Amount: $2,500.00
Fund Source: Revenue Bond Operations
Contractor: Olsson Associates of Grand Island, NE

LB309 Allocations
Peru State College
1. Acceptance of $34,200 for emergency repair of steam line between the Power Plant and the Al Wheeler Activity Center.
Allocation Date: 3/31/98
Allocation Amount: $34,200
College Contribution: $3,800
Total Project Cost: $38,000
2. Acceptance of $6,000 for emergency repair of Administration north stairwell.
Allocation Date: 4/22/98
Allocation Amount: $6,000
College Contribution: $1,500
Total Project Cost: $7,500

Capital Construction Reports
Campus Physical Plant Reports
Revised 1997-98 Revenue Bond Operating Budgets

Dr. Christensen moved and Mr. Renner seconded a motion to approve the Consent Agenda. Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Hunke, Funkhouser, and Badura voted aye. Motion carried.

SUBCOMMITTEE AGENDA
Academic Affairs, Student Life & Personnel Subcommittee
Lee-Ellen Matzke, Chair

Program Review Recommendations
Ms. Matzke moved and Ms. Grimes seconded a motion to approve the program review recommendations relating to each degree program and forward report to the Nebraska Coordinating Commission for Postsecondary Education as follows:

Chadron State College:
Family & Consumer Science -- continue bachelors degree
Information Management Systems -- continue bachelors degree
Psychology -- continue bachelors degree
Educational Media (supplemental report) -- continue bachelors degree with monitoring
Airway Science (information only; no action required)
Human Services (information only; no action required)

Peru State College:
Art (supplemental report) -- continue bachelors degree with monitoring

Wayne State College:
Family & Consumer Science -- continue bachelors degree
Food Service Management -- discontinue major; continue as an option within an existing comprehensive degree
Early Childhood -- continue bachelors degree
Interdisciplinary Studies -- continue bachelors degree with monitoring
Psychology -- continue bachelors degree

Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Hunke, Funkhouser, and Badura voted aye. Motion carried.

Insurance Renewals
Ms. Matzke moved and Dr. Gigstad seconded a motion to authorize the Executive Director to secure the necessary insurance coverages needed in the System in the most cost effective manner. Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Hunke, Funkhouser, and Badura voted aye. Motion carried.

Preferred Provider Option to Health Insurance Coverage
Ms. Matzke moved and Ms. Grimes seconded a motion to approve a preferred provider plan as an additional option under the existing medical and dental plans offered by the Board of Trustees. This coverage is to be made available on September 1, 1998 for those employees who are interested in obtaining medical and dental coverage from a preferred provider organization. Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Hunke, Funkhouser, and Badura voted aye. Motion carried.

1998-99 Salary Recommendations
Ms. Matzke moved and Ms. Grimes seconded a motion to approve the 1998-99 salary recommendations as submitted by the System Executive Director and College Presidents with the exception of Dr. David Ainsworth of Peru State College, which will be handled as a separate item. Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Hunke, Funkhouser, and Badura voted aye. Motion carried.

Policy and Procedural Manual--Policy 4500
Ms. Matzke moved and Ms. Grimes seconded a motion to give first-round approval of the following revised Policy 4500--Distinguished Service Awards. Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Hunke, Funkhouser, and Badura voted aye. Motion carried.

Request for Reassignment by President Robert Burns, Peru State College
Ms. Lindau moved and Dr. Christensen seconded a motion to approve the request for reassignment by Robert Burns, President of Peru State College, during the final year of his employment contract. Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Hunke, Funkhouser, and Badura voted aye. Motion carried.

Reassignment of Vice President of Academic Affairs, Peru State College
Mr. Renner moved and Ms. Grimes seconded a motion to authorize the Executive Director to enter into an agreement with Dr. David Ainsworth, Vice President of Academic Affairs at Peru State College, whereby in exchange for Dr. Ainsworth's resignation effective June 30, 1998, he will receive a sum not to exceed eight-thousand one-hundred and twenty dollars ($8,120) for which he will release any and all claims including any claim for an additional year of service. Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Hunke, Funkhouser, and Badura voted aye. Motion carried.

Operating Budget Guidelines
Mr. Renner moved and Ms. Grimes seconded a motion to approve the 1999-2001 operating budget guidelines as follows:
* Health Insurance - 10% increase each year
* Operations - 3% increase each year
* Tuition Remissions - Adjustment to funding base in current budget to allow each State College to fully implement the tuition waivers authorized in Board Policy 3400
* 1% of their General Academic Instruction budget for the 1998-99 Fiscal Year for Instructional Technology
Also approve the following Areas of Emphasis for the State College System:
* Improvement of Instruction
* Support for Students
* Collaboration with Other Educational Institutions
* Enhancement of Facilities Management
Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Hunke, Funkhouser, and Badura voted aye. Motion carried.

Cash Fund Adjustments
Mr. Renner moved and Ms. Matzke seconded a motion to approve the requests from Wayne State College to make the following Cash Fund Adjustments to its 1997-98 Operating Budget: $240,000. Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Hunke, Funkhouser, and Badura voted aye. Motion carried.

Distribution of Deficit General Funds for 1997-98 and General/Cash Funds for 1998-99
Mr. Renner moved and Ms. Matzke seconded a motion to approve allocation of deficit funds for FY 1997-98 in the amount of $38,000 to Chadron State College for distance learning equipment as appropriated in LB 1108; and to approve the following allocation of funds for FY 1998-99 as appropriated to the State College System in LB 387, 389 and 1108:

DISTRIBUTION OF FUNDS FOR FISCAL YEAR 1998-99

Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Hunke, Funkhouser, and Badura voted aye. Motion carried.

State of Nebraska Credit Card Agreement
Information was shared with Board members on the State of Nebraska Credit Card Agreement approved by the Legislature and signed into law by the Governor as Legislative Bill 70 which authorizes the use of credit, charge and debit cards for payments to state agencies, county government entities, municipal government entities and other political subdivisions. All three colleges have applied for participation in the State's contract and, by Fall 1998, will be accepting and processing Visa and MasterCard credit cards under that agreement.

Policy and Procedural Manual--Policy 7012
Mr. Renner moved and Ms. Grimes seconded a motion to give first-round approval of new Policy 7012--Lease-Purchase Agreements. Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Hunke, Funkhouser, and Badura voted aye. Motion carried.

Capital Construction Priorities for LB1100 Funds
Ms. Grimes moved and Mr. Renner seconded a motion to approve the campus capital construction priorities as submitted by the State Colleges and authorized in section 6(3) of LB 1100:

Chadron State College
* Deferred maintenance, repair and renovation of Administration Building -- $742,000
* Deferred maintenance, repair and renovation of Memorial Hall -- $530,000
* Deferred maintenance, repair and renovation of Math and Science Building -- $325,420
* Deferred maintenance, repair and renovation of Old Library -- $848,000
* Deferred maintenance, repair and renovation of Reta King Library -- $340,260
Total estimated cost -- $2,785,680

Peru State College
* Deferred maintenance, repair and renovation of Library -- $4,541,057
* Deferred maintenance, repair and renovation of Hoyt Science Hall -- $3,570,700
* Deferred maintenance, repair and renovation of Old Gymnasium -- $997,658
* Deferred maintenance, repair and renovation of Power Plant -- $519,258
Total estimated cost -- $9,628,673

Wayne State College
* Deferred maintenance, repair and renovation of Broadcast Studio -- $185,000
* Deferred maintenance, repair and renovation of Hahn Administration Building -- $285,000
* Deferred maintenance, repair and renovation of Memorial Stadium -- $1,645,000
* Deferred maintenance, repair and renovation of Ramsey Theatre -- $285,000
* Deferred maintenance, repair and renovation of Rice Auditorium -- $170,000
* Deferred maintenance, repair and renovation of Telecommunications Classroom s-- $150,000
Total estimated cost -- $2,720,000

System wide
* Miscellaneous Fire and Life Safety
* Miscellaneous Energy Conservation
* Miscellaneous Deferred Repair
* Miscellaneous Americans with Disabilities Act Projects
* Miscellaneous Asbestos Removal Projects
Total estimated cost -- $9,902,622

Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Hunke, Funkhouser, and Badura voted aye. Motion carried.

Distribution of LB1108 Deficit Funds for Capital Construction Projects
Ms. Grimes moved and Ms. Matzke seconded a motion to approve the following distribution of general funds from LB1108 for fire and life safety and ADA projects on each campus:
Chadron State College -- $185,076
Peru State College--$150,436
Wayne State College --$191,904
Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Hunke, Funkhouser, and Badura voted aye. Motion carried.

Sector Initiatives for Capital Construction Budget Requests
Ms. Grimes moved and Dr. Gigstad seconded a motion to approve the following Sector Initiatives for the State College System for use in developing the 1999-2001 biennial capital construction budget request:

The State Colleges will designate capital construction projects that will
* Allow the campuses to more efficiently manage their space resources while enhancing their academic mission more effectively, including the renovation of space in order to incorporate changing instructional methodology and to provide for installation of state-of-the-art equipment.
* Construct or renovate facilities with the primary functions of supporting the campus physical plant and utility systems.
Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Hunke, Funkhouser, and Badura voted aye. Motion carried.

Policy and Procedural Manual--Policies 8028, 8031, 8037, 8065 and 8066
Ms. Grimes moved and Mr. Renner seconded a motion to give first-round approval of the following new policies:
8028--Facilities; Leasing or Renting On-Campus Space
8037--Facilities; State College Building Renewal Assessment Fund
and give first-round approval of the following revised policies:
8031--Facilities; Energy Conservation
8065--Capital Construction; Contracts; Approvals
8066--Capital Construction; Contracts; Professional Consulting Services
Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Hunke, Funkhouser, and Badura voted aye. Motion carried.

Contracts and Change Orders
Ms. Grimes moved and Mr. Renner seconded a motion to approve the following contracts and change orders as provided by the State Colleges:
Wayne State College--Contracts
Location on Campus: Benthack Hall
Contracted Work: ADA renovations -- elevator replacement and restroom modification
Contract Amount: $141,624.00
Fund Source: Building Renewal Task Force
Contractor: Otte Construction, Inc. of Norfolk, NE
Architect: Schemmer Associates of Omaha, NE
Location on Campus: Five Campus Buildings
Contracted Work: ADA renovations -- ramps, restrooms, chair lift, entrances
Contract Amount: $152,348.00
Fund Source: Building Renewal Task Force
Contractor: Otte Construction, Inc. of Norfolk, NE
Architect: Schemmer Associates of Omaha, NE
Location on Campus: Campus Grounds
Contracted Work: Relocation of chilled water pumps and piping serving Connell Hall and Peterson Fine Arts Buildings
Contract Amount: $95,000.00
Fund Source: Building Renewal Task Force
Contractor: Kvidera Company of Sioux City, IA
Architect: Alvine & Associates of Omaha, NE

Wayne State College--Change Orders
Location on Campus: Connell Hall
Number & Description: CO-1: Asbestos Abatement as part of total building renovation
Change Order Amount: $44,838.00
Fund Source: Capital Construction Appropriation (LB386)
Contractor: Beckenhauer Construction Inc. of Norfolk, NE
Consultant: Professional Services Industries, Inc. of Omaha, NE

Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Hunke, Funkhouser, and Badura voted aye. Motion carried.

Peru State College, Library Program Statement Update
Ms. Grimes moved and Mr. Renner seconded a motion to approve the revised schedule and budget sections for the 1996 Peru State College Library Addition/Renovation program statement. Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Hunke, Funkhouser, and Badura voted aye. Motion carried.

Wayne State College, Ramsey Theatre Program Statement
Ms. Grimes moved and Ms. Matzke seconded a motion to receive the Wayne State College Ramsey Theatre renovation and expansion program statement as prepared by the architectural firm of Alley Poyner Architecture of Omaha, Nebraska. Michael Alley and Dan Reinhardt, representatives of Alley Poyner, gave a brief presentation of the program statement provided to Board members. Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Hunke, Funkhouser, and Badura voted aye. Motion carried.

Chadron State College, Miller Hall Project Revised Bid
Ms. Grimes moved and Dr. Christensen seconded a motion to accept the bid of $1,941,323 for the General Construction Contract for the renovation of Chadron State College's Miller Hall, as submitted by Fuller Construction of Chadron, NE and authorize Chadron State College to enter into an agreement using the State's Master Lease Program to provide funds for a portion of the project's equipment. Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Hunke, Funkhouser, and Badura voted aye. Motion carried.

Designation of Bond Counsel for LB1100 Bonds
Dr. Gigstad moved and Mr. Renner seconded a motion to appoint the firm of Cline, Williams, Wright, Johnson & Oldfather as Bond Counsel for the activities related to the LB1100 bond issuance at a fee not-to-exceed $15,000. Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Hunke, Funkhouser, and Badura voted aye. Motion carried.

Contracts and Change Orders
Dr. Gigstad moved and Mr. Renner seconded a motion to approve the following contracts and change orders as provided by the State Colleges:

Chadron State College -- Contracts
Location on Campus: Parking Lot southwest of corner of campus
Contracted Work: Parking Lot Improvements -- group C
Contract Amount: $63,775.00
Fund Source: Contingency Maintenance
Contractor: Fuller Construction of Chadron, NE
Architect: Bahr, Vermeer & Haecker of Lincoln, NE

Wayne State College -- Contracts
Location on Campus: Student Center Dining Room
Contracted Work: Renovation -- HVAC/Electrical/Fire Sprinklers
Contract Amount: $88,882.00
Fund Source: Contingency Maintenance
Contractor: RaDec Construction of Hartington, NE
Architect: Zenon Beringer Mabry of Omaha, NE
Location on Campus: Student Center Dining Room
Contracted Work: Renovation -- Flooring/Casework/Tray Accumulator
Contract Amount: $91,766.50
Fund Source: Contingency Maintenance
Contractor: RaDec Construction of Hartington, NE
Architect: Zenon Beringer Mabry of Omaha, NE
Location on Campus: Student Center Dining Room
Contracted Work: Renovation -- Doors/Walls/General
Contract Amount: $90,241.50
Fund Source: Contingency Maintenance
Contractor: RaDec Construction of Hartington, NE
Architect: Zenon Beringer Mabry of Omaha, NE

Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Hunke, Funkhouser, and Badura voted aye. Motion carried.

INFORMATION ITEMS
Report on Coordinating Commission Study as required by LB1138
Dr. David Powers addressed the Board and gave a report on the Coordinating Commission's study of Peru State College as required by LB1138. A copy of the Request for Proposals was provided to each Board member along with an anticipated schedule:
Proposal due date -- May 20
Award of contract -- May 28
Contractor's presentation to the Commission -- June 11
Draft report due -- October 5
Final report due -- November 2
Final report submitted to the Governor and Legislature -- December 1
Dr. Powers also extended an open invitation to anyone interested in attending a public comments session of the Commission to be held at Peru State College the evening of June 10 when the contractor will make a presentation to the Commission.

Presidents and Student Trustees Reports
Ms. Hunke reported that a Chadron student body vote on the proposed revisions to the grading system failed, but turn-out for the vote was low. Students are beginning to make use of a 24-hour computer lab that was recently installed in the High Rise. She also reported that a Computer Code of Conduct is being reviewed and a designated driver program will soon be established.

Dr. Krepel stated that Chadron has just completed a good and productive academic year, which included the completion of a 5-year strategic plan. He reported that Dr. Rankin was recently recognized for his service to the college with a surprise event; and that the transition is progressing. He also expressed his appreciation to the Board for selecting Dr. Pat Cruzeiro as the 1998 Teaching Excellence Award winner.

Ms. Badura announced that Wayne State College had recently had its largest graduating class and summer classes are beginning. She also commented on Dr. Mash's resignation to accept the position of Chancellor at the University of Wisconsin-Eau Claire. The students are disappointed to see him leave Wayne State College, but wish him well.

Dr. Mash informed the Board that the renovation of Connell Hall began immediately following the spring commencement. The Studio Arts building renovation is progressing with completion scheduled for this fall. In addition, the south dining room will be closed for renovation this summer. He also announced that Wayne State College has been invited to join the Northern Sun Athletic Conference.

Mr. Kolkman stated that the Board is sorry to lose Dr. Mash to Wisconsin-Eau Claire. Dr. Mash responded that he is already experiencing withdrawal symptoms.

Mr. Funkhouser reported that the summer session at Peru State College is scheduled to begin June 3 and the students are ready to put the recent turmoil behind them and move on.

Dr. Burns offered several hints to Dr. Mash regarding his move and "winter survival" in Wisconsin.

AGB Report
Dr. Gigstad reported on his attendance at the Association of Governing Boards conference. He attended sessions regarding the responsibilities of governing boards and foundations, and the cooperation needed between the two entities. It was noted that, as state support for higher education decreases, the foundations are needing to provide more support.

Statement by the Board Chair
Mr. Kolkman then took some time to make a statement regarding the recent turmoil surrounding Peru State College and the racially insensitive remark by Dr. David Ainsworth. Mr. Kolkman expressed the need for more open and honest discussions, and stressed that there had been a breakdown in the campus procedure of reporting complaints. He felt there had also been a breakdown in sensitivity.
In an effort to address some of these issues, the Board plans the following two actions:
* The appointment of a task force to study policies and procedures on each of the three campuses, with the task force to be headed by a person with known experience in diversity issues; and
* The development of a diversity training program for implementation this fall with faculty, staff, administrators and students.
As a result, the Board hopes to educate employees and students within the State College System regarding diversity issues.

Appointment of Nominations Committee
Mr. Kolkman appointed Ms. Matzke and Ms. Lindau to serve as the Nominations Committee and report back at the June meeting.

EXECUTIVE SESSION
Ms. Matzke moved and Ms. Grimes seconded a motion to go into executive session at 5:00 p.m. for the purpose of discussing personnel issues. Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, and Renner voted aye. Motion carried.
Ms. Matzke moved and Dr. Christensen seconded a motion to go out of executive session at 5:50 p.m. Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, and Renner voted aye. Motion carried.

ADJOURNMENT -- The meeting was adjourned at 5:50 p.m.