April 2017 Meeting Minutes

Board of Trustees Meeting Minutes

April 13, 2017


The Northark Board of Trustees met in regular session Thursday, April 13, 2017 in the Bennie Ellis Board Room.  Chair Jane Adair called the meeting to order at 3 p.m. Trustees Jane Adair, Scott Miller, David Evans, Don Tomlinson, Sara Jo Fendly, R.G. Earnest, and Chris McNew were present. Trustees Kirk Campbell and Bill Lovell were absent.


Northark personnel attending included Dr. Randy Esters, Dr. Donna Wood, Don Sugg, Dr. Rodney Arnold, Tavonda Brown, Ricci Dillon, Melissa Bray, Jackson Murray, David Zirkle, Micki Somers, Cindy Mayo, Cherie Conner, Nell Bonds, Charla Jennings, Laura Berry, Kris Greening, and Trish Villines. Bennett Horne represented the Harrison Daily Times. Russell Larrimore was also in attendance.


Approval of Agenda: Chair Adair asked for a motion to approve the agenda with the modification that Executive Session be moved after the Regular Reports. Trustee Miller made a motion to approved the modified Agenda which was seconded by Trustee Fendley and passed unanimously.


Regular Reports:

Finance Report:  Don Sugg provided the finance report, which indicated that Education and General Revenues were trending above budget and expenses were in line with the previous year. It was noted that state income will remain the same as last year but there is a difference in the timing of the distribution of the funds. He stated that expenses appeared above the prior fiscal year because of the timing of an additional payroll in comparison to last year. However, by the end of fiscal year, the expenses should align with the previous year. The Auxiliary Fund is trending to break even, once the Student Activity Fee income is transferred.


Foundation Report: Dr. Arnold discussed gave the quarterly foundation report. He reported Northark Foundation assets at $6,844,202 as of and revenue of $1,213,405 as of February 28, 2017. He stated the foundation board would have new officers soon. He discussed the donation to help with the microbiology summer workshops and the purchase of a concession trailer for both the foundation and the College. Dr. Arnold stated that the NJCAA Div II Basketball tournament was a success. He reported that the Foundation has purchased acreage above the baseball field and that Vicki Vowell and Marcus Jones would be recognized at Evening on the Plaza.


President’s Report: Dr. Esters asked Jackson Murray to discuss the planned Thailand trip. Dr. Esters reported the recent grant award of $200,000 to increase networking and cybersecurity programs. He discussed plans for the summer microbiology workshop and the partnership with the Buffalo National River. Dr. Esters discussed the MOU signing with ASU-Mountain Home, NAPHE’s award as the nonprofit of the year, and summer community education courses. Other campus activities were discussed. He reviewed the policies being presented in the Consent Agenda.


Executive Session: Trustee McNew made a motion to move into Executives Session, which was seconded by Trustee Evans and passed. The Trustees met in Executive Session. Trustee Don Tomlinson made a motion to reconvene in Executive Session, which was seconded by Trustee Miller and Fendley and passed. Chair Adair requested a motion to add the President’s Contract to the agenda under new business. The motion was made by Trustee Tomlinson and seconded by Trustee Miller.


Approval of Consent Agenda: Chair Adair requested a motion to approve the Consent Agenda which included March Regular Meeting Minutes, Institutional & Finance Policies including – Contract & Agreement Review; Delegation of Contracting Authority; Official Functions; Donation of Items & Services to the College; Financial Management of Technical Services. The Consent Agenda also included Sarah Bing in the Replacement Position – Assistant Director of Community Education and High School Relations and Tavonda Brown in the restructured Position – Dean of Students Curriculum Changes Ratification. Trustee Evans made a motion to approve the Consent Agenda as presented. The motion was seconded by Trustee Earnest and passed unanimously.


New Business:

President’s Contract: Trustee Miller discussed that the Board of Trustees had completed the Presidential Evaluation. The Board proposed to extend the current contract through June 30, 2020. Trustee Miller also stated that the Board offered Dr. Esters a 3.23% raise to his base salary but Dr. Esters declined. Dr. Esters noted that he preferred to receive the same $500 base salary raise all other employees would be awarded. Trustee Tomlinson moved to extend the president’s contract as discussed. The motion was seconded by Trustee Fendley and passed unanimously.


FY2017-2018 Tuition, Mandatory Fees and Miscellaneous Fees: Based on the specific studies and resulting proposals by the respective area leaders and program personnel, the President’s Cabinet, the College Advisory Council and the Vice President of Finance & Administration supports the findings and recommends the following tuition and fee increases for FY2017-2018 (beginning with the Fall 2017 Term): In-District Residency $3.00, In-State Residency $4.00, Out-of-State/Continuous County Residency $5.00, Out-of-State Residency $6.00, Technology Fee 2:00, Technical Program Fee $10.00 and Welding Fee $5.00.  Additionally, it is proposed that a Late Registration Fee of $25.00 be implemented for any new registration after classes have started. It is projected that approximately $356,787 will be generated by these increases. Trustee McNew made a motion to approve the tuition and fees and Trustee Earnest seconded. The motion passed unanimously.


FY2017-2018 Proposed Operating Budget: Don presented information on the FY17-18 proposed budget which included of three (3) main operating funds (Educational & General, Auxiliary and Debt Retirement), total overall projected income is $16,214,298 and total overall expenditures and net transfers is $16,182,586, resulting in a projected overall net gain of $31,712. This total includes $88,683 for $500 salary increases for all full-time employees, $13,000 for the full-year effect of raising the part-time instructor pay rate to $550 per course credit hour and $14,640 for full-time faculty rank and promotion pay increases.  Also included is a new Economic & Community Development Director position.  The projected salary, associated benefit expense and a modest operating budget for this initiative totals $85,763. 


Other items within the E & G expenditure budget include Allied Health Simulation Lab expense of $66,976, debt service of $142,000 toward the energy retrofit project loan, a slight increase for travel spread over 70 departments totaling $23,757, and $25,929 for a federally required Acculog System. The proposed Auxiliary Fund revenue budget for FY2017-2018 totals $1,469,700 after transfers.  Projected Bookstore Sales volume is down but with projected sales and rental revenue of $1,262,800 and budgeted Operations and Cost of Sales Expense at $1,074,185, the Bookstore is projected to generate a net profit of $188,615 or 14.9% of sales.  The total Athletic expense budget is $337,080 and student activities and related expense budget is $50,710.  The Auxiliary Fund expense budget also includes $30,000 for the Copy Center.  The overall Auxiliary Fund expense budget totals $1,505,990 which results in a projected overall net operating decline of -$36,290.  This decline will be covered by the Auxiliary projected beginning Fund Balance of $240,000.


Capital funding is comprised of millage receipts, a remaining balance from the Energy Bank Loan and prior period reserves. Total projected funding is $1,203,997.  Total budgeted expenditures include Debt Service for the two 2012 Bond Issues and proposed Capital Master Plan outlays.  The proposed Master Plan outlays include $30,000 for Information Technology, $15,000 for Instruction and $523,034 for Facilities. Trustee Tomlinson noted that he would prefer the expense request to include some equipment for the Heavy Equipment Program but that he planned to vote in favor of the proposal. Trustee Miller made a motion to approve the budget as presented. The motion was seconded by Trustee Evans and passed unanimously.


Commencement Awards Recommendation: Trustee Evans—Chair of the Commencement Awards Committee—discussed that the Committee recommended two Board of Trustees Award for the 2017 Commencement.  The first recommendation was to present the individual award to Mr. Dale Garner. The second recommendation was to present a Northark Partnership Award to Pace Industries. Trustee Evans also stated that the president had recommended Mr. Jim Sprott to receive the Presidential Citation. Trustee Evans made a motion to accept the recommendations as presented, which was seconded by Trustee Miller and passed.


May Meeting Date Change: Chair Adair stated that there was a conflict with the regularly scheduled May board meeting date and requested a motion to move the May meeting to May 18 at 3 p.m. Trustee McNew made a motion to approve the date change as stated. The motion was seconded by Trustee Earnest and passed unanimously. The meeting will take place in the First Federal Bank Room.


Board Comments:

There being no further business, Chair Adair requested a motion to adjourn. Trustee Earnest made a motion, which was seconded by Trustee Miller, and passed. The meeting adjourned at 4:30 p.m.

Chair Adair                                                                                  Submitted by: Trish Villines