A regular meeting of the Board of Trustees of the Nebraska State College System was convened at the Burnham Yates Conference Center-Cornhusker Hotel, City of Lincoln, County of Lancaster, State of Nebraska, on Tuesday, January 6, 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 December 23, 1997. 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 (arrived at 10:00 a.m.)
Dr. Doug Christensen, Lincoln

Student Board Members participating:
Mr. Broch Muhs, Wayne State College
Ms. Kimberlee Nelsen, Chadron State College
Ms. Jessica Damrow for 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
Dr. Robert Burns, President, Peru State College
Dr. Donald Mash, President, Wayne State College
Mr. Ed Hoffman, Vice President for Administration, Chadron 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. 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
Ms. Carna Pfeil, Coordinating Commission for Postsecondary Education
Ms. Patsy Martin, Coordinating Commission for Postsecondary Education
Mr. Mike Wemhoff, Coordinating Commission for Postsecondary Education
Mr. Ron Withem, University of Nebraska
Mr. Phil Hovis, Legislative Council
Mr. Dave Wagaman, Legislative Fiscal
Senator David Maurstad, District #30, Beatrice
Ms. Esther Divney, City Councilwoman, Peru
Ms. Ardith Wininger, Peru
Mr. Dick Stich, Mayor of Peru
Ms. Sabra Pegler, Lincoln
Ms. Shelley and Mr. David Cygan, Lincoln
Ms. Sheila Rhodus
Ms. Michele White
Mr. Dwight Wininger, SBW Consulting
Mr. Paul Korslund, Mayor of Beatrice
Mr. Gerald Carnes
Mr. Jud Douglas III
Mr. Doug Friedli, President of Otoe County Bank
Ms. Nancy Hoch, President of River Country Industrial Development Corp., Nebraska City
Mr. Dale Miller, Kirkham Michael Consulting Engineers, Omaha
Mr. Al Hottovy, Kirkham Michael Consulting Engineers, Omaha
Mr. Lloyd Castner, Kirkham Michael Consulting Engineers, Omaha
Mr. Rich Gardner, The Renaissance Design Group, Omaha
Mr. William Scully
Ms. Linda Smith, President of Gage County Economic Development Corporation
Mr. Larry Keslar, Chairman of the Gage County Economic Development Board and Manager of the First National Bank of Omaha--Beatrice Branch
Dr. Jack Huck, President of Southeast Community College
Mr. Dennis Headrich, Southeast Community College--Beatrice Campus
Dr. Stephen Joel, Superintendent of Beatrice Public Schools
Ms. Lori Gottula
Mr. Bruce Cutshall
Ms. Janice Crose
Mr. Roger Larsen, NSEA
Ms. Lillian Schottenhamel, Peru
Mr. Dan Swanson, Nebraska City
Ms. Bernice Patterson, Peru
Ms. Catherine Crose Nannen
Mr. Ron Witt
Mr. Paul Fell
Mr. Otto Rath
Mr. Bill Thurman
Mr. James Thurman
Mr. Bill Beavers
Ms. Margie Thurman
Mr. Dale Hoverty, Nebraska City
Ms. Nadine Fahrlander
Ms. Linda Meyer
Mr. Joseph Kincaid
Mr. Steve Lewis
Ms. Phyllis Davenport Rosenquist, Peru
Mr. Lyle McKercher, Peru
Mr. Lester Russell
Ms. Wanda Brown
Ms. Evelyn Neve
Ms. Dorothy Stepan

Press:
Ms. Jena Janovy, Omaha World-Herald
Ms. Karen Griess, Lincoln Journal Star
Mr. Larry Peirce, Lincoln Journal Star
Mr. Keith Ludden, Nebraska Public Radio
Ms. Karen Shanahan, Nebraska City News-Press
Mr. Jack Ruff, Associated Press
Mr. Jack Wang, KOLN-KGIN TV
Mr. Darrell Wellman, Auburn Newspapers
Ms. Debbie Bean, KNCY-Radio, Nebraska City
Mr. Tom Vint, Associated Press
Ms. Suzanne Deyo, KETV
Mr. Andrew Ozaki, KETV
Mr. Tom Roberts, KLKN TV
Mr. Doug Kennedy, KWBE Radio, Beatrice

CALL TO ORDER

Mr. Kolkman, Chair, called the workshop to order at 8:10 a.m. A roll call was taken: Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke; Muhs, Nelsen and Damrow were present. Renner was absent.

Dr. Krause reviewed the current role and mission statements for Peru State College, including the statutory assignment, Coordinating Commission Comprehensive Plan statement and the Board of Trustees= mission statement.

Dr. Burns discussed areas that have been identified as academic program enhancements for Peru State College. These include: Management Information Systems, Special Education, Educational Technology, Criminal Justice, Bachelor of Technology, and Biology.

Dr. Krause then shared information with Board members on the demographic profile of southeastern Nebraska, noting projected population growth and decline in the counties located in the Peru State College service region. He also shared information on enrollment trends at Peru State College. He further noted that the cost per student at Peru State College is higher than the cost per student at either Chadron or Wayne State College because of lower enrollment.

Discussion then turned to the cost of renovating the existing facilities and the estimated cost of new construction. Renovation costs have been estimated by The Schemmer Associates at $21,310,810 (state-owned facilities total $13,271,245 and revenue bond facilities total $8,030,565). New construction costs are estimated to be $35,069,066 (state-owned facilities total $21,933,188 and revenue bond facilities total $13,1335,878).

Dr. Krause encouraged the Board members to consider both the renovation of existing facilities and the construction of new facilities in light of the value added to the students= educational experience.

RECESS

Communities responding to the Request for Information on the possible relocation of Peru State College were given time to make their presentations to the Board.

The proposal submitted by Beatrice was presented by Ms. Linda Smith, President of the Gage County Economic Development Corporation. Other speakers included Mr. Larry Keslar, Senator David Maurstad, Mayor Paul Korslund, Dr. Steve Joel and Dr. Jack Huck.

The proposal submitted by Nebraska City was presented by Ms. Nancy Hoch, President of the River Country Industrial Development Corporation and Mr. Rich Gardner of the Renaissance Design Group.

The proposal submitted by Peru was presented by Dr. Esther Divney, City Councilwoman, with comments by Mr. Jud Douglas.

RECESS 12:20 - 1:30

CALL TO ORDER

Mr. Kolkman, Chair, called the meeting to order at 1:40 p.m. A roll call was taken: Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Muhs, Nelsen and Damrow were present.

EXECUTIVE SESSION

Ms. Grimes moved and Mr. Renner seconded a motion to go into executive session at 1:40 p.m. for the purpose of discussing personnel and legal issues. Ms. Grimes moved and Dr. Gigstad seconded a motion to go out of executive session at 2:00 p.m.

APPROVAL OF THE AGENDA

Ms. Grimes moved and Ms. Matzke seconded a motion to amend the agenda, moving item 5B) Discussion of Options for Obtaining Funds for Facilities for Peru State College at Peru or Another Location to be item 6B4 under the sub-committee agenda. Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Muhs and Nelsen voted aye. Motion carried. Mr. Renner moved and Ms. Grimes seconded a motion to approve the agenda as amended. Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Muhs and Nelsen voted aye. Motion carried.

PUBLIC COMMENTS

Mr. Steve Lewis, a Peru alum from Lexington, stated his support for leaving Peru State College in Peru.

Mayor Dick Stich of Peru read a letter from the City Council of Plattsmouth opposing the relocation of Peru State College and a letter from Mayor Hal Daub of Omaha expressing his support of Peru State College.

Dr. Esther Divney reported that a pledge of $3 million for Peru State College had just been received.

Mr. Joe Kincaid, mathematics instructor, raised questions about the statistics being used by the Board.

Ms. Phyllis Davenport Rosenquist, a Peru native and current adjunct instructor, expressed her opposition to the relocation of Peru State College.

Ms. Nancy Hoch thanked the Board for inviting Nebraska City to make a presentation as a possible host site for the relocation of Peru State College.

APPROVAL OF MINUTES FROM THE DECEMBER 10, 1997 MEETING

Dr. Gigstad moved and Ms. Grimes seconded a motion to approve the minutes of the December 10, 1997 meeting. Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Muhs and Nelsen voted aye. Motion carried.

OLD BUSINESS

Status Report of MGT Recommendations

Dr. Krause distributed the December status report of MGT recommendations to the Board. Recommendations with December 31 deadlines have been addressed and are discussed in the document. He asked that Board members review the status report and direct any questions to the System Office. The next status report will be due June 30.

CONSENT AGENDA

Personnel Recommendations (attached to official minutes)
Grant Applications and Awards (included in official minutes)
Contracts and Change Orders (included in official minutes)
LB309 Allocations (included in official minutes)
Campus Physical Plant Reports (attached to official minutes)
Quarterly Capital Construction Reports (attached to official minutes)

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

SUBCOMMITTEE AGENDA

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

1998-2003 System-wide Academic Calendar

The system-wide academic calendars for 1993-2003 were distributed for information.

Business Affairs Subcommittee--Physical Plant
Fran Grimes, Chair

Wayne State College/Northeast Community College Lease Agreement

Ms. Grimes moved and Mr. Renner seconded a motion to approve the Wayne State College/Northeast Community College lease agreement at a cost of $10.50 per square foot or $6,930 plus $2,310 annually for operating costs. Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Muhs and Nelsen voted aye. Motion carried.

Business Affairs Subcommittee--Revenue Bond
Al Gigstad, Chair

Wayne State College, Connell Hall Resolution

Dr. Gigstad moved and Ms. Grimes seconded a motion to approve a Resolution to change the ADefinitions@ section in the Wayne State College Series 1988 Bond Resolution to delete any reference to the third floor faculty apartments located in Connell Hall as one of the revenue bond facilities providing revenue support to the Wayne State College revenue bond program. Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Muhs and Nelsen voted aye. Motion carried.

Business Affairs Subcommittee--Physical Plant
Fran Grimes, Chair

Discussion of Options for Obtaining Funds for Facilities for Peru State College at Peru or Another Location

Board members discussed the three proposals presented by Beatrice, Nebraska City and Peru for the relocation or renovation of Peru State College. Following discussion, Ms. Grimes moved and Ms. Matzke seconded a motion that the Board of Trustees seek Legislative approval for statutory changes in reference to the location of Peru State College to allow relocation of the institution to Nebraska City. Further, an appropriation of $16,000,000 for state resources be requested for construction of new facilities. It is understood that additional construction costs for the state-supported facilities would be off-set by community contributions of a minimum of $8,000,000. Legislative approval will also be requested to issue revenue bonds for construction of student service facilities. Christensen, Gigstad, Grimes, Kolkman, Lindau, Matzke, Renner; Muhs and Nelsen voted aye. Motion carried.

INFORMATION ITEMS

Executive Director, Presidents and Student Trustee Reports

Ms. Jessica Damrow, Peru State College Student Senate President, spoke on behalf of Student Trustee Andy Tynon. She relayed Mr. Tynon=s disappointment at not being able to attend the meeting.

Dr. Burns reminded the Board that spring semester begins January 12 and students and faculty would soon be returning to the camps.

Ms. Nelsen also mentioned that classes do not begin at Chadron until next week, so she had little to report. She did announce her recent engagement to be married.

Dr. Rankin highlighted the Chadron State College forensic team, which had a very successful fall term. He also reported on a recent donation of Mari Sandoz artifacts and records that will be placed in the newly remodeled library.

Mr. Muhs had little to report from Wayne State College, but did announce his recent marriage.

Dr. Mash reported that the faculty at Wayne State College would be returning for in-service training on January 12 to begin the new semester.

Dr. Krause informed Board members that the on-campus interviews for a new president at Chadron State College will take place later in January. Preliminary dates for finalist interviews with the Board in Lincoln were set for February 9 and 10.

He also asked that Board members interested in attending the April 18-21 Association of Governing Boards Conference in Nashville, Tennessee contact the System Office so arrangements can be made.

ADJOURNMENT -- The meeting was adjourned at 3:10 p.m.