1701 East Front Street Traverse City, MI 49686

(231) 995-1010 trustees@nmc.edu

Board of Trustees www.nmc.edu/trustees

Meeting Agenda Monday, September 24, 2012

at NMC Oleson Center, Rooms A& B at 5:30 p.m.

I. GENERAL BUSINESS A. Call to Order B. Roll Call C. Pledge of Allegiance D. Review and Approval of Agenda to include additions, deletions, or rearrangements

II. REPORTS

E. Employee of the Semester—Aaron Beach, Director of Human Resources F. Enrollment Report—Chris Weber, Vice President for Enrollment Management and

Student Services G. Financial Report—Vicki Cook, Vice President of Finance and Administration H. Scholarship Report—Rebecca Teahen, Executive Director of Resource Development/

Chris Weber Vice President for Enrollment Management and Student Services I. Foundation Report—Doug Bishop, Board Representative J. Legislative Issues Report— Timothy Nelson, President

III. UPDATES

K. Board Chair Update—Robert Brick, Chair L. President’s Update—Timothy Nelson, President

IV. DISCUSSION ITEMS

M. Capital Outlay—State of Michigan Annual 5-Year Plan—Vicki Cook, Vice President of Finance and Administration

V. PUBLIC INPUT

VI. CONSENT ITEMS (Pursuant to Policy A-105.00 Consent Agenda Items) These items will be adopted as a group without specific discussion. When approving the meeting agenda, any board member may request that a consent agenda item be moved to the regular agenda for discussion or questions. Recommend that the following items be approved:

N. Minutes of the August 27, 2012, meeting and September 17, 2012, study session O. Contributions for August 2012 P. Summary Report for General Fund Accounts as of August 31, 2012

Northwestern Michigan College provides lifelong learning opportunities to our communities.

1701 East Front Street Traverse City, MI 49686 (231) 995-1010 trustees@nmc.edu

Board of Trustees http://www.nmc.edu/trustees/

September 24, 2012 Meeting Agenda Page 2

Posted Friday, September 21, 9:00 a.m.

VII. ACTION ITEMS

Q. MCACA Grant Application(Pursuant to Policy A-106.00 Finance) Recommend that the Board of Trustees of Northwestern Michigan College authorize the Dennos Museum Center through its Executive Director to apply to the Michigan Council for Arts and Cultural Affairs for an operational support grant in the amount of up to $30,000 to provide funding for its activities that take place between January 1 and September 30, 2013, with the application due October 1, 2012.

R. Best Practices Resolution (Pursuant to Policy A-106.00 Finance) Recommend adoption of presented Best Practices Resolution certifying that Northwestern Michigan College has met 4 of 5 best practices in each category as defined in Section 230 of Michigan Public Act 201 of 2012.

S. Planning and Resource Guidelines (Pursuant to Policy A-106.00 Finance) Recommend approval of Planning and Resource Guidelines for 2013-2014 as presented.

T. Strategic Goals (Pursuant to Policy A-106.00 Other) Recommend approval of Board of Trustee Level Strategic Goals as presented.

VIII. ADJOURNMENT

Upcoming Board Meeting Dates: Meetings are held at 5:30 p.m., unless otherwise noted. All board meetings are open to the public.

October 22, 2012, Oleson Center November 26, 2012, Oleson Center December 17, 2012, Oleson Center (3rd Monday due to holiday) January 28, 2013, Oleson Center February 25, 2013, Oleson Center March 18, 2013, Oleson Center (3rd Monday due to spring break) April 22, 2013, Oleson Center May 20, 2013 Oleson Center (3rd Monday due to holiday) June 24, 2013, Great Lakes Campus Room 112 (5:00 pm start)

Office of Human Resources

To: Tim Nelson, President From: Marguerite Cotto, Vice President for Lifelong and Professional Learning

Aaron Beach, Director of Human Resources Date: September 17, 2012 Subject: Employee of the Semester, Summer 2012 ____________________________________________________________________________ NMC Employee of the Semester Kay Hall, Office Manager – Auxiliary Services, has been selected as the NMC Employee of the Semester for summer 2012. Kay has displayed the values of Northwestern Michigan College as described below. Our actions are governed by the highest degree of ethics, integrity and personal responsibility, exhibited through transparency, openness and trust. Kay Hall took the initiative a couple of years ago to ask the question, “Why doesn’t NMC have a presence in the Cherry Festival Parade?” This question led to a yearly entry in the parade. She has worked with the Marketing Department to set the theme and organize the participants. She promotes participation in the parade so that a variety of programs are represented each year. This takes a great amount of tenacity and organization, and she does this each year with plenty of patience and a great big smile. Exhibits a learning focus, both as a learner and an educator: NMC’s entry for the parade has focused on NMC programs. It promotes our programs and students have taken great pride in being able to present their area of interest. Exhibits foresight, and collaborates with others: The organization of the parade entry takes a great deal of collaboration among the various departments. Kay has set the theme each year and works with the departments to help showcase each area. NMC’s presence in the Cherry Festival parade has led to a greater awareness of our programs and a sense of community pride within the NMC organization For being selected as the Employee of the Semester, Kay will receive a framed certificate acknowledging her selection, a $25 gift certificate to a local restaurant, and a reserved parking spot for fall semester. c. Board of Trustees Nominator Personnel File

MEMO Enrollment Management & Student Services _____________________________________________________________________________ To: Tim Nelson, President From: Chris Weber, VP for Enrollment Management & Student Services Date: September 18, 2012 Subject: Enrollment Update – Fall 2012 Fall 2012 The total number of students for FA2012 enrollment on September 4, 2012 (Count Day) was 4,847. MACRAO (Michigan Association of Collegiate Registrars and Admissions Officers) reported Michigan Community Colleges FA2012 total enrollment data remained parallel to enrollment statistics for 2008 or 2009. In comparison to 2011, enrollment at all 28 Michigan Community Colleges was lower by 1% (GRCC) to 16 % (Mott CC). NMC’s enrollment was lower by 6% compared with FA2011. We had anticipated a decline in enrollment that fell between the 2008 (4,564) and 2009 (5,074) enrollments. New students for FA2012 were 1,520 or 5% lower than 2011 registrants at 1,595. Prior admits were lower by 27 students compared to this category in 2011; they were similar in number compared with 2009. Students continuing from SP2012 numbered at 2,656 or 7% lower than those that continued from SP2011; however, they were 75 higher than those that continued from SP2009. FA2012 returning students continued to decrease by 5% compared with FA2011. The new ventures with area high schools (Early College and Concurrent Enrollment) positively impacted enrollment by 111 students: Early College – TBAISD (Eng) 25 Early College – TBAISD (Acct) 12 Early College – MTA (Calc 1) 12 Concurrent Enr – GR Academy (Spanish) 10 Concurrent Enr – Suttons Bay (Chem 101) 27 Concurrent Enr – TCAPS (Calc III) 25 Although total enrollment was lower than the previous fall, there were a number of academic areas that experienced at least a 5% increase in credit hours and they are listed below: Aviation – Flight 29.2% Aviation – Ground 14.9% Business – Marketing 5.0% Construction Tech – Carpentry 11% Construction Tech – Electrical / Electronics Tech 15.8%

Humanities – Humanities 5.3% Humanities – Visual Com Arts 10.8% Maritime – Deck 5.9% Maritime – Naval Science 14.3% Phys Ed – Outdoor Sports 9.5% Science & Math – Engineering 19.5% Social Science – Child Dev 5.3% Social Science – Criminal Justice 6.9% Social Science – Economics 9.0% Technical – Automotive Tech 17.8% Technical – Welding Process Tech 6.5% Students participated in New Student Orientations at an excellent rate in preparation for FA2012 and paced near the same as last year at 1490 students (1512 for FA2011). In addition to New Student Orientation, students had several beginning of the semester opportunities to engage with other students, campus faculty and staff and community members through events such as Pinepalooza. This event featured 40 NMC and Traverse City organizations and was held on September 11. Over 1,000 students reviewed on campus and off campus services and resources they could access for themselves or as potential options to give back to NMC or the community. Digital Dashboard Statistics (Resource: Records & Registration – Final Count 9/4/12) 2008 2009 2010 2011 2012 New Students Registered 1,505 1,667 1,747 1,595 1,520 Prior Admits Registered 76 88 100 109 82 SP 2012 Students Registered 2,377 2,581 2,882 2,854 2,657 Returning Students Registered 603 737 710 618 589 Average Credit Hrs / student 9.89 10.08 9.98 9.83 9.64 Total Headcount 4,564 5,074 5,440 5,176 4,847 Tuition Revenue $5,564,920 $6,523,085 $7,198,097 $7,021,710 $6,785,660 Headcount by Residency 2008 2009 2010 2011 2012 Grand Traverse Residents 2,443 2,759 2,973 2,860 2,692 Service Area 1,370 1,517 1,629 1,459 1,343 Other Counties 638 694 724 745 670 Non-Michigan 83 79 93 101 117 International 27 22 21 11 24 VLC – all 3 3 0 0 1 Spring 2013 SP2013 enrollment projections indicate a 4% decrease in enrollment from SP2012.

______________________________________________________________________________

To: Timothy J. Nelson, President

From: Vicki Cook, VP Finance and Administration

Date: September 19, 2012

Subject: Summary Report for the General Fund as of August 31, 2012

The attached reports summarize the financial results for the General Fund as of August 31, 2012;

the second month of the new fiscal year. This period represents 16.7% of the year.

Month End Results

The general fund ended the month with an excess of revenue over expenses in the amount of

$630,059. Revenue decreased by 7% when comparing August 2012 to August 2011 primarily

related to tuition and fees. Expenses increased by 6% when comparing August 2012 to August

2011 due, in part, to timing of contracts and capital outlay purchases.

Revenue (letters refer to the attached General Fund summary)

A. Tuition and fees revenue: Tuition and fees represent an 8% decrease from those of August

2011. For Fall 2012 the budget was set at 56,560 billing hours for budgeted revenue of

$7,244,230. Actual billing hours are at 52,512 hours for total tuition revenue of $6,787,885.

This is a shortfall of $456,345. The shortfall in revenue will be primarily absorbed in the

reduction of adjunct contracts of approximately $350,000. The net result is a $106,000

shortfall. Additional savings in expenses will be identified throughout the year.

B. Property Taxes: The collection of summer property taxes began in July. Currently, property

tax revenue decreased 2% from the same period last year. This decrease was budgeted for in

fiscal year 2013.

C. State Sources begin in October with receipt of the first state aid payment.

D. Federal Sources, which consist primarily of the MARAD grants, are not expected to be

received until May 2013.

E. Investment income is slightly over budget which is consistent with this time last year.

Interest earnings fluctuate with investment levels, which is dependent on the timing of cash

flows and the movement of money into and out of investment vehicles.

F. Both Private Sources and Other Sources are timing and event dependent. The decrease for

Fiscal Year 2013 is due to Lobdell’s being closed this summer.

MEMO

Administrative Services

S:\Administrative Services\Board of Trustees\FY2013\09.24.12\Financials\GF Memo_Sept 2012.docx

Expenses

G. The cost of salaries has declined by 3% from last year. Benefit costs has declined by 6%

from last year. Both items are within the budgeted amount.

H. All other expenses are at or under budget at this time with the exception of capital.

I. Capital Outlay reflects expenditures budgeted through the allocation of COAT dollars, the

Plant Fund, BBQ funds, contingencies, and reserve related to Maritime. These are timing

dependent based on need. The major purchase of the Maritime simulator is the primary

reason for the large capital expense this month.

Unaudited

2012-2013 YTD % of

Funds Accounts Adjusted Budget Activity Annual Budget

TOTAL GENERAL FUND

50 Revenues

Tuition and Fees 23,435,844 3,542,595 15.12% A

Property Taxes 9,105,051 1,337,269 14.69% B

Other Local 0 0 *

Local Sources 32,540,895 4,879,864 15.00%

State Sources 8,713,500 -6 0.00% C

Federal Sources 524,000 0 0.00% D

Private Sources 277,000 0 0.00% F

Investment Income 358,000 60,165 16.81% E

Other Sources 298,250 46,557 15.61% F

Total Revenues 42,711,645 4,986,580 11.67%

60 Labor

Salaries & Wages 20,876,819 2,034,397 9.74% G

Benefits 8,645,887 752,952 8.71% G

Total Labor 29,522,706 2,787,350 9.44%

70 Expenses

Purchased Services 2,106,764 310,887 14.76% H

Supplies & Materials 2,878,780 353,198 12.27% H

Internal Services 60,045 7,420 12.36% H

Other Expenses 1,810,568 156,395 8.64% H

Institutional Expenses 1,731,479 154,456 8.92% H

Maintenance & Renovation 1,171,926 172,611 14.73% H

Prof Develop, Travel & Events 676,595 96,933 14.33% H

Capital Outlay 304,223 353,186 116.09% I

Total Expenses 10,740,380 1,605,086 14.94%

Total Expenditures 40,263,086 4,392,435 10.91%

80 Transfers

Transfers 2,290,693 -35,914 -1.57%

Total Transfers 2,290,693 -35,914 -1.57%

Total Expenditures and Transfers 42,553,779 4,356,522 10.24%

Net Revenues over (under) Expenditures 157,866 630,059

Northwestern Michigan College

Summary Report for General Fund Accounts

Fiscal Year 2013, Period 02

Summ_Gen_Fund_Aug_12(1).xlsx

for internal use only 9/18/2012 11:34 AM Page 1 of 1

Northwestern Michigan College

Comparative Statement

August 2012 to July 2012

General Fund Activity Only

Difference between current month and previous month

Revenue: Yr. To Date Yr. To Date Month of Month of Explanation

31-Aug-12 31-Jul-12 31-Aug-12 31-Jul-12 August

Tuition and Fees 3,542,595 2,621,063 921,532 2,621,063 July included 4 weeks of summer tuition and fall fees; August included 1

week of summer and 1 week of fall tuition

Property Taxes 1,337,263 264,116 1,073,147 264,116 Summer property tax collections rec'd in August.

State Sources - - - -

Federal Sources - - - -

Private Sources - - - -

Investment Income 60,165 30,042 30,123 30,042 Consistent with prior month

Other Sources 46,557 10,493 36,064 10,493 Fall payment plan fees collected in August.

Total Revenue 4,986,580 2,925,714 2,060,866 2,925,714

Expenses

Salaries and Wages 2,034,397 748,415 1,285,982 748,415 Faculty contracts in August.

Benefits 752,952 295,330 457,622 295,330 Faculty contracts in August.

Purchased Services 310,887 121,297 189,590 121,297 Timing of contract payments based on services.

Supplies & Material 353,198 157,620 195,578 157,620 Increase related to fall semester start.

Internal Services 7,420 (436) 7,856 (436) Charges for various departments for start of semester.

Other Expenses 156,395 56,162 100,233 56,162 Timing of payments related to fall semester.

Institutional Expenses 154,456 38,300 116,156 38,300 Annual planned maintenance work.

Maintenance & Renovation 172,611 48,139 124,472 48,139 Timing of contract payments.

Prof Develp, Travel, & Events 96,933 56,257 40,676 56,257 Timing of professional development/travel

Capital Outlay 353,186 - 353,186 -

$271,950 GLMA Simulator, $19,975 Piano for music, $27,684, Fitness

center equipment, $13,694, X-ray mannequin, $17,262 Data Tech

equipment, $2,620 Library books.

Total Expenditures 4,392,435 1,521,085 2,871,350 1,521,085

Transfers (35,914) - (35,914) -

Net Revenues over/(under) 630,059 1,404,629 (774,570) 1,404,629

Northwestern Michigan College

Comparative Statement

August 2012 to August 2011

General Fund Activity Only

Difference between August 2012 and August 2011 (GENERAL FUND)

Revenue: Yr. To Date Yr. To Date INCRE/DECRE. Percentage Explanation

31-Aug-12 31-Aug-11 Difference

Tuition & Fees 3,542,595 3,855,858 (313,263) -8%Timing of recognized Summer tuition revenue. Fall

enrollment declined.

Property Taxes 1,337,263 1,364,471 (27,208) -2% Property tax was budgeted to be lower.

State Sources - - - 0%

Federal Sources - - - 0%

Private Sources - - - 0%

Investment Income 60,165 60,635 (470) -1% Consistent with prior month

Other Sources 46,557 64,804 (18,247) -28% Lobdell's not open Summer '12

Total Revenue 4,986,580 5,345,768 (359,188) -7%

Expenses

Salaries and Wages 2,034,397 2,096,204 (61,807) -3% Lower in FY13 and consistent with budget

Benefits 752,952 798,383 (45,431) -6% Decrease related to wages.

Purchased Services 310,887 361,631 (50,744) -14% Decrease in Security Contract.

Supplies & Material 353,198 311,740 41,458 13% Timing of annual payments.

Internal Services 7,420 1,099 6,321 575% Fall opening events.

Other Expenses 156,395 176,786 (20,391) -12% Timing

Institutional Expenses 154,456 158,163 (3,707) -2% Consistent with prior year

Maintenance & Renovation 172,611 97,076 75,535 78% Timing of payment for ITS software contract.

Pro. Develop, Travel & Events 96,933 92,738 4,195 5% Timing of professional development and travel

Capital Outlay 353,186 41,342 311,844 754%Purchase of GLMA capital equipment funded by MARAD

and timing of COAT items

Total Expenditures 4,392,435 4,135,161 257,273 6%

Transfers (35,914) (50,174) 14,260

Net Revenues over/(under) 630,059 1,260,782 (630,723)

DATE: September 19, 2012 TO: NMC Board of Trustees, Tim Nelson, President;

Stephen Siciliano, Vice President, Educational Services; Chris Weber, Vice President Enrollment Management and Student Services

FROM: Rebecca Teahen, Executive Director, NMC Foundation and Resource

Development; Pam Palermo, Director of Financial Aid

RE: NMC Foundation Scholarship Report Fiscal Year 2012

The purpose of this memo is to highlight scholarship availability and financial aid activity for fiscal year 2012, ending June 30, 2012.

NMC FOUNDATION SCHOLARSHIPS

2009-2010

2010-2011

2011-2012

Amount Available To Award $689,998

Unduplicated Headcount

Unduplicated Headcount/ Total # of

unduplicated students for the

year $742,092 Unduplicated

Headcount

Unduplicated Headcount/ Total # of

unduplicated students for

the year $693,081

Unduplicated Headcount/ Total # of

unduplicated students for

the year Amount Offered $677,053 528 7.66% $654,279 557 7.91% $655,678* 564 Amount Accepted

$677,053

528 7.66% $654,279 557 7.91% $651,478 557**

Amount Disbursed

$675,193

526 7.64% $633,118 554 7.87% $645,428 552

Notes: * The majority of remaining $37,403 not awarded in FY2012 are Adopt-a-Student Scholarship funds, which are left

unrestricted (not endowed) to allow flexibility in responding to emerging un-met need (such as gap funding when the Michigan Nursing and Promise Scholarships were de-funded).

** Some students did not submit required thank you note which explains difference between # offered vs # accepted. Highlights:

This past year the financial aid department, with assistance from IT and Resource Development: • Established new requirement that students write thank you notes to donors prior to scholarship

award being disbursed. • Revised the searchable scholarship database • Activated scholarship applications (with the ability to deactivate when the scholarships have been

awarded for the year) • Redesigned the financial aid area of the webpage to better promote NMC scholarships and the

search engine • Scanned all donor agreements for easy viewing by departments • Work with departments to standardize processes and applications • The three departments continue to work together to improve processes to best serve students and

provide best possible stewardship of charitable scholarship funds.

s:\president\board\meeting materials\2012\092412\h. fy-2012 annual scholarship report.3.docx

EXTERNAL SCHOLARSHIPS

2009-2010 Unduplicated Headcount

Unduplicated Headcount/ Total # of

unduplicated students for the

year

2010-2011 Unduplicated Headcount

Unduplicated Headcount/ Total # of

unduplicated students for

the year

2011-2012 Unduplicated Headcount

Unduplicated Headcount/ Total # of

unduplicated students for

the year

Amount Disbursed

$245,805 187 2.72% $258,371 191 2.71% $289,975 209 3.13%

ALL FINANCIAL AID - includes Federal, States and Institutional

2009-2010 Unduplicated Headcount

Unduplicated Headcount/ Total # of

unduplicated students for

the year

2010-2011 Unduplicated Headcount

Unduplicated Headcount/ Total # of

unduplicated students for

the year

2011-2012 Unduplicated Headcount

Unduplicated Headcount/ Total # of

unduplicated students for

the year

Amount Offered $38,374,088 4,537 65.91% $46,932,533 4693 66.68% $51,058,102 4662 69.76%

Amount Accepted $24,128,929 3,682 53.49% $28,223,191 4126 58.62% $28,167,484 3842 57.49%

Amount Disbursed $23,343,897 3,673 53.36% $27,580,264 3792 53.88% $27,827,843 3840

57.46%

***Percentages for all 3 charts are based off the total number of unduplicated students for the year.

(2009-10/6884; 2010-11/7038; 2011-12/6683)

___________________________________________________________________________ To: The Board of Trustees and President Timothy J. Nelson

From: Rebecca Teahen, Executive Director for Resource Development

Date: September 17, 2012

Subject: Foundation Update for September 2012

• The Annual Campaign for 2012-13 has begun! Co-Chairs are Sara Harding, head of

communications and marketing strategy and public relations for FIM Group and its subsidiaries, and Steve Rawlings, Regional Manager for DTE and an NMC alumnus. Please join us in thanking this year’s Matching Gift Donors: American Waste, Fifth Third Bank, Ford Insurance, H.Cox & Sons, Huntington Bank, Jordan Exploration, NMC Foundation Board, NMC Retirees, Noverr Family, Art & Mary Schmuckal Family Foundation, TBA Credit Union, and the Utopia Foundation. WTCM/WCCW has joined us this year as well as a media sponsor. The Annual Campaign Kickoff will be held October 12 at Lobdell’s – A Teaching Restaurant.

• On September 4, we hosted a great event celebrating the first year of success of the Global

Opportunities Fund. Students, faculty, and staff shared their personal - global – experiences made possible as a result of scholarships through this fund. Video clips will be posted to our website soon.

• Kathy Cole, Westwind Consulting, completed on-site visits with Foundation Board members and executive staff last week. Kathy is assessing strengths and opportunities to improve the long term success of the Foundation/Resource Development as we work to secure resources to support NMC’s strategic agenda. We are working to schedule phone interviews with trustees. Kathy’s full report & recommendations will be presented at the December Foundation Board meeting.

• For your calendars: o September 26, 6:00pm: Lobdell’s Scholarship Dinner o September 27, 6:00pm: Fellows Dinner o October 5, 6:00pm: Great Lakes Great Chefs o October 17, 7:30am: Foundation Finance & Audit Committee meeting o October 23, 7:00pm: Commitment Induction Ceremony o October 24, 7:00am: Foundation Board meeting

MEMO Resource Development

State & Legislative Matters

Bill Tracking Matrix: For a quick reference of all the active bills impacting community colleges, please go to http://www.mcca.org/content.cfm?m=36&id=36&startRow=1&mm=0 Millage Elections: The House Redistricting and Elections Committee held a second hearing on HB 5219 (Knollenberg), which would require any millage ballot question that would provide an “increase in revenue” to be on the November even year ballot. The MCCA Legislative Committee raised a number of concerns about the bill; in addition to taking away from local control, HB 5219 could create the very real possibility that an unsuspecting college could have a millage up for renewal in an odd year and would then have to operate for some length of time with no millage. In addition, “increase in revenue” raises a number of questions about the bill’s scope. Rep. Knollenberg has circulated a bill substitute that would allow these elections to take place in either August or November of the even or odd year, and would allow a current millage that is expiring to come up for renewal at any time, however the committee has not yet taken any action on HB 5219. For the full text and legislative analysis of HB 5219 as introduced, please click here. Retiree Investment Options: The Senate Higher Education and Retirement Appropriations Subcommittees took testimony on SB 1142 (Pavlov), which would extend the automatic contribution arrangements in the Federal Pension Protection Act to Michigan’s tax-exempt employers, including colleges and universities. The change would allow Michigan employers to enroll their newly hired employees in a defined contribution plan automatically with proper notice to the employee about what the default investment choices are if an employee does not affirmatively make a retirement investment decision. Current law requires these employees to make an “affirmative election” before an employer may defer compensation. SB 1142 would not apply to MPSERS employees, who already have such a policy, but would apply to any optional retirement plan (ORP) that involves employee contributions. For the full text and legislative analysis of SB 1142, please click here. Veterans Check-off: The House Education Committee took testimony on September 12 on HB 5317 (Goike), which would require community colleges to include on their application a question about whether the applicant has any military affiliation that might qualify the person for benefits. Committee members noted that the bill should be amended to include an effective date that allows colleges time to make changes and still remain in compliance. For the full text and legislative analysis of HB 5317, please click here. Energy Efficiency Improvements: The House Energy and Technology Committee reported out HB 5727 (Haveman), which would allow governmental units to enter into performance contracts for energy efficiency improvements. At this point, the sponsor intends the bill to apply only to state departments

MCCA WEEKLY BOARD UPDATES

[Report #143 September 17, 2012]

0099//1177//22001122 MMCCCCAA WWeeeekkllyy BBooaarrdd UUppddaattee -- 2

and agencies, and then to extend the financing mechanism to other local governments including community colleges as early as next spring once the process is better established. For the full text and legislative analysis of HB 5727 as introduced, please click here. Civilian Conservation Corps: A package of five bills has been introduced that would modernize the Michigan Civilian Conservation Corps. Senate Bills 1261 – 1265 (various) call for emphasizing public-private partnerships and would include colleges, universities, private companies, and nonprofit organizations. The bills, which the Senate Natural Resources, Environment, and Great Lakes Committee took up on September 13, would expand the scope of participation for Michiganders in their late teens and early 20s, including broadened work training programs. For the legislative analysis of all five bills, please click here. Reporting Requirements: The Senate Reforms, Restructuring, and Reinventing Committee posted a hearing for next week on two bills that increase reporting requirements for community colleges. House Bill 5196 (McMillin) would require public employers, including community colleges, to report to the Department of Technology, Management, and Budget (DTMB) by June 1 of each year on the number of employees and the total annual wages and cost of benefits, broken down by job classification. The bill would also require employers to report the terms of severance payments. House Bill 5274 (McMillin) would require public entities, including community colleges, to prepare a list of all contracts at least $25,000 in value. The bill would require colleges to either post the information on their own website or submit the list to DTMB for posting. Public entities would be required to update contract information monthly. For the full text of HB 5196 and analysis, please click here. For the full text of HB 5274 and analysis, please click here. Legislative Committee: As discussed at the Summer Board Meeting, agendas and minutes from Legislative Committee meetings will be available to the full MCCA Board via BoardBook. To access documents beginning with those from the September 7 call, please click here.

MCCA Initiatives Update

Center for Student Success Update Accelerated Learning Project Opportunity: We are excited to announce that the Community College of Baltimore County has been awarded a grant from the Kresge Foundation to support and expand its innovative developmental writing program in Michigan. As part of the grant activities, CCBC will work closely with the Michigan Center for Student Success to provide training and technical support for colleges interested in implementing the ALP program in their developmental writing courses. To learn more about ALP, we invite interested faculty and academic administrators to attend a webinar on Friday, September 21 from 2:30-4:00. Please use this link to register: https://www2.gotomeeting.com/register/788551538 After viewing the webinar, colleges who are interested in more information are invited to attend a meeting with Peter Adams and Susan Gabriel on Friday, September 28, 2012. This meeting will take place at the Kellogg Center in East Lansing at 2:15 p.m. (immediately following the conclusion of the

0099//1177//22001122 MMCCCCAA WWeeeekkllyy BBooaarrdd UUppddaattee -- 3

Student Success Summit). You do not need to register for or attend the summit to participate in this meeting. Please contact Jenny Schanker (jschanker@mcca.org) with questions. 2012 Student Success Summit Agenda: Registration for the 2012 Summit is now closed and we are expecting nearly 400 people to attend the two-day event representing all 28 community colleges as well as partners from K-12, public universities, the business community, and state government. The Summit will be held at the Kellogg Hotel & Conference Center at Michigan State University in East Lansing. The Summit will begin at 11:30 am on September 27th (with registration opening at 10:30am) and conclude on September 28th by 1:30pm. This event will feature national expertise and emerging best practices in Michigan including presentations from 18 Michigan community colleges on range of issues related to student success. The keynote speaker for this year’s Summit is Dr. Vincent Tinto from Syracuse University and author of Leaving College and Completing College. A nearly-final agenda for the 2012 Student Success Summit can be found by clicking here. Please direct questions about the Summit to Chris Baldwin (cbaldwin@mcca.org) or Jenny Schanker (jschanker@mcca.org). Virtual Learning Collaborative Update Professional Development (Webinars) Available Via MCCVLC:

• September 19th and 25th at noon: EasyBib – Information Literacy Skills • September 26th at noon: SmarterMeasure – A Look at the New Analytics • October 2nd at noon: Softchalk in the Cloud • October 9th at noon: Carnegie Mellon Online Learning Initiative – An Introduction • October 23rd at noon: Carnegie Mellon Online Learning Initiative – The Courses

For more information and to register online, please go to http://www.mccvlc.org/~staff/events/ MCCVLC Next Generation Taskforce: The Taskforce (chaired by Daniel Phelan, President, Jackson Community College) will be presenting its recommendations to the Presidents Committee on September 20, and to the MCCA Board of Directors at the October 4/5 meeting at Delta College. The Taskforce identified three main outcomes to guide the project and the next generation of the MCCVLC: (1) increase market share; (2) increase quality; and (3) enhance collaboration to increase competitive positioning.

National Matters

National News/Reports Florida Considering a Statewide Online University Option: The Florida University System Board is weighing their options for addressing the increased demand for higher education in the state, and they are considering several online options. While there is significant interest in creating a 13th university in the system that is completely online, the Board is also looking at an online portal that connects to the existing online courses across the state. The benefit of developing an online portal is the cost effectiveness of expanding existing degree-granting capabilities rather than creating a whole new

0099//1177//22001122 MMCCCCAA WWeeeekkllyy BBooaarrdd UUppddaattee -- 4

institution. This may sound familiar – because it was the strategy proposed in 1996 with the start of the Michigan Community College Virtual Learning Collaborative. For the full article, please go to http://chronicle.com/article/Florida-Ponders-Opening-an/134482/?cid=at&utm_source=at&utm_medium=en A good article in USA Today arguing that college may never be the same. The industry has operated more or less along the same business model for a long time…the MOOCS (massively open online courses) represent a rapidly developing and emerging change. For the article, please go to http://www.usatoday.com/news/nation/story/2012/09/12/college-may-never-be-the-same/57752972/1

Community Colleges in the News

Community College Times article highlights Jackson Community College’s expanded international focus and partnership in U.S.-Brazil Connect (“Bringing international experiences to rural colleges”). For the article, please go to http://www.communitycollegetimes.com/Pages/Foreign-exchange-programs-give-students-a-broader-perspective.aspx The Kalamazoo Promise was featured in The New York Times in the Sunday edition (highlights Kalamazoo Community College). The program tests how place-based development might work when education is the first investment. For the article, please go to http://www.nytimes.com/2012/09/16/magazine/kalamazoo-mich-the-city-that-pays-for-college.html?_r=2&hpw Two Michigan community colleges (Macomb Community College and Lake Michigan College) are participating in a national initiative, the Benefits Access for College Completion – a three-year, $4.84 million initiative funded by the Ford Foundation, the Kresge Foundation, Lumina Foundation, and the Open Society Foundations. BACC will help low-income students connect to coordinated income supports, including child care subsidies and food assistance. For the article, please go to http://detroit.cbslocal.com/2012/09/11/two-michigan-community-colleges-in-national-access-pilot/ Statewide News/Reports Encouraging Message from Governor Snyder to Community Colleges: Having the right kind of talent is more critical to the long-term success of a business than taxes and regulations, Governor Rick Snyder said, but the state has been more focused in recent years on boosting college graduation without putting equal emphasis on technical training. The Governor, speaking at the West Michigan Policy Forum, emphasized the need for effective acceleration strategies from high school into college and said he would call a summit of education and business executives together early in 2013 to look at the issues involving talent development. For the article, please go to http://www.mlive.com/news/grand-rapids/index.ssf/2012/09/gov_snyder_schools_must_supply.html

0099//1177//22001122 MMCCCCAA WWeeeekkllyy BBooaarrdd UUppddaattee -- 5

Upcoming Events for 2012 Calendar • Presidents Committee, MCCA office – September 20, 2012 from 9am-2pm • MCCA Board of Directors, hosted by Delta College – October 4 & 5, starting with reception/dinner

on Thursday (4th) at 6pm, with the meeting on Friday (5th) from 8am-3pm • ACCT Annual Leadership Congress, Boston MA – October 10 – 13, 2012 • Michigan Delegation Breakfast at ACCT Congress: Thursday, October 11, 7am-8:30am (Sheraton

Boston Hotel, Berkley Room, 3rd Floor) • Presidents Committee, MCCA office – November 8 from 9am-2pm • MCCA Executive Committee, MCCA office – November 16, 2012 from 10am-1pm • For the 2013 MCCA Calendar, please go to

http://www.mcca.org/uploads/fckeditor//file/MCCA_2013_Meeting_Schedule.pdf

NORTHWESTERN MICHIGAN COLLEGE BOARD OF TRUSTEES

MINUTES Monday, August 27, 2012

NMC Great Lakes Campus Room 112 at 5:00 pm

CALL TO ORDER—Chair Robert Brick called the meeting to order at 5:00 p.m. ROLL CALL Trustees present: Robert Brick, K. Ross Childs, Cheryl Gore Follette, Walter “Jay” Hooper,

William Myers, Susan Sheldon Trustees absent: Douglas Bishop Also present: President Timothy J. Nelson, Gerard Achenbach, Ed Bailey, Aaron Cook, Vicki

Cook, Marguerite Cotto, Andy Dolan, Tanya Fair, Holly Gorton, Emily Magner, Craig Mulder, Susan Odgers, Paul Perry, Rebecca Teahen, Stephen Siciliano, Cheryl Sullivan, Kennard Weaver, Jim White

APPROVAL OF AGENDA – A request was made to change the order of reports by moving the Aircraft Purchase to be the first report. On a motion by Ross Childs, supported by Bill Myers, the revised agenda was approved by unanimous vote. REPORTS Aircraft Purchase—Marguerite Cotto, Vice President for Lifelong and Professional Learning, referred to the information included in the board materials that provided the final purchase details of the Cessna aircraft, which the board approved at their July 23 meeting. She referred further comments and questions to Aaron Cook, Director of Aviation. Cook shared that the purchased aircraft was an excellent buy and met the needs of NMC’s aviation program. There were no questions of the board pertaining to the purchase. Master Plan—Vicki Cook, Vice President of Finance and Administration, introduced Tom Mathison, of TowerPinkster, and Dan Wagner, of Gourdie-Fraser, to present a facilities master plan update. They presented some concepts pertaining to all NMC campuses that they felt addressed the needs of the college that had been conveyed. Some questions of the board were addressed and suggestions and comments noted. The board was assured that the educational component has been very much a part of ongoing discussions. President Nelson asked the board to submit further questions and comments to the President’s Office and half of the upcoming board study session will be spent on review and discussion of various master plan options, provided with preliminary costs. Enrollment Report—Stephen Siciliano, Vice President for Educational Services, reported on enrollment, explaining that that tuition revenue will be lower than projected due to enrollment numbers. The 2009 enrollment was being used as the benchmark due to the unusual high enrollment spike resulting from the economic conditions. A comparison of other state community colleges shows much higher drops in enrollment, up to 12%, as compared to our projected 6% decrease. Siciliano noted that the economy is beginning to improve, which causes enrollment to drop. He shared that the final enrollment number will not be known until the official count day of September 4. There was some discussion as to the impact of financial aid eligibility on enrollment, as well as increased and targeted recruitment efforts.

Northwestern Michigan College August 27, 2012

2

Financial Report— Vicki Cook, Vice President of Finance and Administration, referred to the Financial Summary Report for the first month of the new fiscal year provided in the meeting materials. She noted that the tuition and fees revenue figure was for summer semester only. The board had no questions. Foundation Report— Susan Sheldon, Board Representative on Foundation Board, referred to the report provided in the meeting materials. She explained that the annual campaign has begun, chaired again by Steve Rawlings and Sara Harding, with a goal of $450,000 and a focus on retention. Sheldon asked for 100% participation from the NMC Board. Also highlighted was the success of the 2012 NMC Scholarship Open, hosting 242 golfers and projected revenue to provide $59,341 for scholarships. Also noted, was a change in venue for the 2013 Scholarship Open to the Grand Traverse Resort. Sheldon concluded her report with a reminder of the Global Opportunities Fund Picnic at the Hagerty Center on September 4. Legislative Issues Report—President Timothy Nelson provided an MCCA update in the meeting materials and stated that the Senate and House did concur and pass the MPSERS reform bill on August 15. Therefore, most of the budgeted additional $500,000 NMC expenditure will not occur, depending on the proposed plans chosen by employees. Nelson shared his hope that the Community College Baccalaureate legislature will be taken up again during the lame duck session after the November election. UPDATES Board Chair Update—Chair Robert Brick stated his concern regarding the international water level and his hope that NMC’s Water Studies Program will have opportunities to impact the critical issue of saving the Great Lakes and regional water resources, as well as provide job opportunities in that area. He concluded by expressing that he hopes everyone had a good summer.

President’s Update—President Timothy Nelson shared that his fall opening conference presentation was available on the web for viewing, as well as being available on DVD. He thanked Bill Myers, Doug Bishop, and Ross Childs for their attendance at opening conference. President Nelson also shared that a September board study session would be scheduled. Trustee Ross Childs commented on the many great college accomplishments reported at opening conference. DISCUSSION ITEMS—None PUBLIC INPUT—There was no public input. CONSENT ITEMS—On a motion by Cheryl Follette, seconded by Jay Hooper, the following items were approved:

• Minutes of the July 23, 2012, meeting • Contributions for July 2012 • Summary Report for General Fund Accounts as of July 31, 2012

ACTION ITEMS Year-end Transfer—On a motion by Bill Myers, supported by Susan Sheldon, administration was authorized to transfer the FY12 year-end excess revenue over expenses with $100,000 to the

Northwestern Michigan College August 27, 2012

3

Technology Fund and remaining funds to the Plant Fund, following the close of the FY12 financial audit. ADJOURNMENT—The meeting adjourned at 6:45 p.m. Recorded by Holly Gorton, Executive Assistant to the President and Board of Trustees. SIGNED

Robert T. Brick, Chair ATTESTED

William D. Myers, Vice President

NORTHWESTERN MICHIGAN COLLEGE BOARD OF TRUSTEES

MINUTES Monday, September 17, 2012

NMC Oleson Center CALL TO ORDER—Chair Robert Brick called the meeting to order at 8:15 a.m. ROLL CALL Trustees present: Douglas Bishop, Robert Brick, K. Ross Childs, Cheryl Gore Follette, Walter

“Jay” Hooper, William Myers, Susan Sheldon Trustees absent: None Also present: President Timothy J. Nelson, Holly Gorton, Jerry Achenbach, Vicki Cook,

Marguerite Cotto, Andy Dolan, Darby Hiller, Craig Mulder, Karen Ruedinger, Stephen Siciliano, Rebecca Teahen, Chris Weber, Troy Wilson

APPROVAL OF AGENDA – On a motion by Cheryl Follette, supported by Ross Childs, the agenda was approved by unanimous vote. PUBLIC INPUT—There was no public input. DISCUSSION ITEMS Planning and Resource Guidelines—The current Planning and Resource Guidelines for 2012-2013 were reviewed and discussed in preparation of board approval of 2013-2014 guidelines at their regular September meeting. President Timothy Nelson reminded the board that the college is currently in the process of conducting a classification and compensation study, which could influence a change in item 3 of the guidelines. In response to a question, Nelson explained that a significant structural change or change in the college’s strategic direction is something that could necessitate a change in the guidelines. Other discussion included assurance that the guidelines provide for flexibility in personnel resources, adequate professional development resources, and that reserves appear to be adequate. No changes were recommended and the same guidelines will be presented at the September 24 board meeting for approval for the 2013-2014 fiscal year. Board of Trustees Level Strategic Goals—A revised set of Board of Trustees Level Strategic Goals with annotated targets, resulting from college planning and evaluation processes, were presented for review and discussion. Vice President Stephen Siciliano addressed a question about efforts being made to improve learner success by explaining that two new AQIP projects have been established, Redesigning the Learning Experience and Enhancing Developmental Education, that specifically target learner success. There was discussion on ways that NMC addresses the issues of childcare and transportation as drivers to the success of women learners. Vice President Vicki Cook stated that she is a member of the local Great Start Collaborative group working toward regional solutions to address these issues, and she will keep the board apprised of the outcomes of that group. A metric will be added to the Learner Success Goal to address the childcare issue. There was also some discussion on the status of the national and international expertise goal metric of value-added agriculture initiatives. Several initiatives were identified and felt to merit the allocation of resources, including the co-generation initiative that will be added to the metric because of the importance to allocate revenue. The board expressed interest in receiving reports on numbers as these select initiatives are incubated. There was also conversation about the intent of the national and international expertise goal, which is to prepare students for success in a global marketplace.

Northwestern Michigan College September 17, 2012

2

Revisions will be made to the Board of Trustees Level Strategic Goals according to these discussions and will be presented to the Board for approval at their September regular meeting. Campus Master Plan—Documentation was presented to the board to begin providing a process to enable the board to prioritize projects for approval at the regular board meeting in October. The state capital outlay plan submittal deadline is November 1, 2012, and at least one project will be identified for approval to submit with that plan. The board still feels that a student learning center holds a high priority. President Nelson explained that, while not yet in effect, there are proposed changes to the state funding request process that would require architectural drawings to be submitted with requests. There was continued discussion on the concept of a campus community center to encompass a student learning center, library, study areas, and fitness center to create a destination for learning and build a campus community to allow more students to remain on campus. Nelson also indicated there are several ongoing conversations with community members regarding potential partnerships that will also inform the campus master planning prioritization process, along with NMC’s strategic directions. This may also influence the parking situation, which means that additional parking options will continue to be explored as well. The board will be provided with information pertaining to the community partnership conversations, as well as more defined project cost estimates to best inform their prioritization and approval process. There will be board approval required at the October 22 board meeting on at least the project selected for the state funding request submittal. ADJOURNMENT—The meeting adjourned at 9:50 a.m. Recorded by Holly Gorton, Executive Assistant to the President and Board of Trustees. SIGNED

Robert T. Brick, Chair ATTESTED

Douglas S. Bishop, Secretary

Page 1 of 1

Fund DescriptionTotal # of

GiftsReceived

NewOutright

Gifts

New PledgeBalances*

Payments onPrior Pledges Gift Type Total

2012 NMC Scholarship Open 116 $10,836.99 $500.00 $5,350.00 Temporarily Restricted $16,686.99Nick Adamski Memorial Scholarship 1 $1,000.00 $0.00 $0.00 Temporarily Restricted $1,000.00Auto Tech Program 1 $10.00 $0.00 $0.00 Temporarily Restricted $10.00NMC Barbecue 2 $270.00 $0.00 $0.00 Temporarily Restricted $270.00Dental/Health Services 1 $150.00 $0.00 $0.00 Temporarily Restricted $150.00Dennos Museum Operations Endowment 3 $3,600.00 $0.00 $0.00 Permanently Restricted $3,600.00Dennos Museum Center 6 $1,225.79 $0.00 $100.00 Temporarily Restricted $1,325.79EES College for Kids Program 1 $100.00 $0.00 $0.00 Temporarily Restricted $100.00EES College for Kids Scholarships 2 $100.00 $0.00 $0.00 Temporarily Restricted $100.00General Unrestricted 10 $2,850.00 $15,000.00 $1,900.91 Unrestricted $19,750.91GLMA Program 1 $7,000.00 $0.00 $0.00 Temporarily Restricted $7,000.00GLMA Simulator Fund 19 $5,080.00 $0.00 $0.00 Temporarily Restricted $5,080.00Global Fundraiser 3 $10,020.00 $0.00 $0.00 Temporarily Restricted $10,020.00Global Opportunities Scholarship 6 $560.00 $0.00 $0.00 Temporarily Restricted $560.00Kathleen Guy Commitment Endowed Scholarship 1 $0.00 $0.00 $333.67 Permanently Restricted $333.67Hagerty Center Clearing Fund 1 $1,664.00 $0.00 $0.00 Temporarily Restricted $1,664.00International Affairs Forum Program 52 $8,775.00 $0.00 $0.00 Temporarily Restricted $8,775.00Komesu Memorial Art Fund 1 $25.00 $0.00 $0.00 Temporarily Restricted $25.00Osterlin Library 1 $200.00 $0.00 $0.00 Temporarily Restricted $200.00Lobdell Teaching Restaurant Scholarship 14 $750.00 $2,250.00 $250.00 Temporarily Restricted $3,250.00Mary Lee Lord Zonta Scholarship 1 $2,500.00 $0.00 $0.00 Permanently Restricted $2,500.00NMC Non-Discretionary-Named Student Scholarship 90 $96,479.00 $0.00 $0.00 Temporarily Restricted $96,479.00Gordon Niemi Memorial Scholarship 1 $0.00 $200.00 $0.00 Temporarily Restricted $200.00Peggy A. Pronger Nursing Scholarship 1 $25.00 $0.00 $0.00 Permanently Restricted $25.00Terrapin Networks Scholarship 1 $0.00 $0.00 $1,000.00 Temporarily Restricted $1,000.00WNMC Radio 11 $190.00 $375.00 $1,175.00 Temporarily Restricted $1,740.00Zonta Opportunity for Change Scholarship 1 $9,000.00 $0.00 $0.00 Temporarily Restricted $9,000.00

Grand Totals: 348 $162,410.78 $18,325.00 $10,109.58 $190,845.36

*Reports pledge balance. Any payments received during the month on prior pledges are reported under Payments on Prior Pledges. This report reflects monthly activity only; it is not a cumulative report.

Northwestern Michigan CollegeGift Summary by Fund

August 2012 Contributions

MEMO

To: Tim Nelson, President From: Gene Jenneman, Director Re: MCACA Grant Application Date: September 8, 2012 The Dennos Museum Center will be applying to the Michigan Council for Arts and Cultural Affairs for an Operational Support grant in the amount of $30,000.

The grant request is due October 1, 2012 and requires an authorization from the governing board of the museum to apply. Hence we need a resolution of approval to apply from the NMC Board of Trustees at its September 24, 2012 meeting.

The Board of Trustees of Northwestern Michigan College authorizes the Dennos Museum Center through its Executive Director to apply to the Michigan Council for Arts and Cultural Affairs for an operational support grant in the amount of up to $30,000 to provide funding for its activities that take place between January 1 and September 30, 2013, with the application due October 1, 2012.

Please include this on the Board agenda. We technically have a past Board resolution that allows the College to apply for grants as needed, but this will make it a cleaner application process as we have to provide a specific date of authorization.

With an operating budget of over $1 million in expenditures between combined Dennos and College operational funds for the museum’s operation, we can apply for between $20 and $30 thousand in this current grant cycle.

PLANNING AND RESOURCE GUIDELINES: 2013-2014 1 – Strategic and Financial Planning The budget is a financial plan for the priorities of the institution. The budget proposed to the Board of Trustees for adoption should reflect the Strategic Plan and the area operational plans, as approved through the College’s shared governance process. 2 – Tuition and Fees Tuition and fees should be considered within the context of the most reasonable estimates of State, local, and private support, and projected expenses to support the College’s plans, and projected enrollment and unique program characteristics. Tuition should balance the goal of affordable access to learning opportunities with the goal of high quality service levels for NMC offerings. Regular tuition increases should be considered as a means to sustain this portion of the revenue mix, while minimizing the year-to-year increases. Fees should be reviewed regularly and increases considered when the cost elements to which they contribute increase. Our in-district students will pay less than out-of district students because the College receives local tax support from Grand Traverse County residents. In some cases, there may be rates in excess of the general tuition and fees. 3 – Salaries and Benefits Equity Northwestern Michigan College is committed to attracting and retaining a quality workforce. Equity in salary and benefits is part of the NMC culture and should be expressed within a total compensation package. As part of that package, salary and benefits for faculty, administrative/professional, technical/paraprofessional and support staff should be equitable when compared to the appropriate peer group of community colleges and/or service area employers, in accordance with NMC’s compensation policies. 4 – Professional Development Maintaining and improving the knowledge and skills of the faculty and staff is an investment in the future. Funds should be appropriated annually in the budget for that purpose. Approximately 2.25% of general fund salaries and wages should be appropriated annually in the budget for that purpose. 5 – Faculty and Staff Composition The college should balance the full-time and part-time composition of faculty and staff to assure continuity and commitment while maintaining flexibility to implement strategic directions and complete its strategic initiatives in a timely and effective manner. To enhance smooth transition of personnel, the college has established a contingency for implementing succession decisions.

6 – Technology, Capital Equipment, Maintenance and Renovation Providing a quality education requires investment in classroom equipment, facilities, and infrastructure. The annual budget should provide for regular maintenance, replacement/upgrade, growth and contingency funding. 7 – Debt Service Debt Service obligations must be included in the budgeting process at 100% of their current costs.

8 – Reserves The budget should include an appropriate allocation for reserves. The following reserves should be monitored annually. The Board will approve transfers to the appropriate reserve fund balances.

A – Working Capital Reserves A fiscally sound organization should have adequate reserves for emergencies and unanticipated cash flow needs. Northwestern Michigan College funds should maintain a Working Capital Reserve of 10 - 15% of annual budgeted expenditures not included in reserves B through G. B – Medical Insurance Transition Reserve The medical and dental coverage for College employees is self-funded. The Insurance Reserve was established to provide employee benefits during a transition time if fully insured medical and dental insurance were adopted. Northwestern Michigan College should maintain a reserve equal to 15% of annual claims and administration costs for medical/dental coverage. C – Reserve For Unexpected Medical and Non-Medical Costs This is a reserve for dramatic fluctuations in medical, and non-medical costs (e.g. term life insurance, long term disability, and worker’s compensation) that are significantly beyond prudent predictions. The College should maintain funds equal to the difference between the calculated maximum aggregate claims and expected claims plus three (3) months of non-medical costs. D – Fund for Transformation The Fund for Transformation was established for the purpose of responding to emerging opportunities and changes. A fund balance equal to approximately 2% of General Fund budgeted expenses should be maintained. E – Physical Plant Major Maintenance A minimum of 2% of the appraised replacement value-new of the College’s physical assets, including buildings, building equipment, and built-in fixtures, should be invested or maintained in a fund for major maintenance, renovation, or replacement of those assets. This should be calculated as the total of major plant maintenance expenditures, operating budget maintenance expenditures on physical plant, and the Plant Fund balance. F – Reserve For Unexpected Fluctuation In Energy Costs This is a reserve for dramatic fluctuations in energy costs that are significantly beyond prudent predictions. The reserve is equal to 10% of the College’s annual budget for the total energy bill. G – Reserve For Any Future Reduction in State Appropriation Revenue This is a reserve for any future reduction in State appropriation revenue. The amount to maintain is 25% of annual State Appropriation.

Approved November 2011

To: Timothy J. Nelson, President

From: Dr. Darby Hiller, Executive Director for Institutional Effectiveness

Subject: Board of Trustees-Level Strategic Goals

Date: September 19, 2012

At the Board of Trustees’ September Study Session (September 17, 2012), the Board reviewed

recommended Board-level strategic goals, discussed the Board’s strategic priorities, and offered feedback on the goals. Attached are the goals and metrics, dated 9-19-2012. The revisions as suggested by the Board of Trustees and in subsequent meetings of the executive staff are highlighted. These top level strategic goals reflect priorities from the strategic plan for FY13. We are requesting Board approval of these goals and metrics. Next Steps We are continuing to implement the planning process by synthesizing the feedback from the Board, executive staff, and other college leaders into a strategic plan for FY14. The department leaders throughout the college will use the strategic plan to develop operational plans. The official kickoff for FY14 operational planning will be the first week in November at the Leadership Group meeting. Central to improving our aligned planning process this year is to systematize our “check” function on the progress on goals. This will include a mid-year check on the Board-level strategic goals early in 2013.

MEMO Office of Research, Planning and Effectiveness

FY’13 NMC Board of Trustees Level Strategic Goals 1 | P a g e

©Northwestern Michigan College

Version: 20120919a Changes Highlighted

STRATEGIC GOALS METRICS/TARGETS

Learner Success (SD#1)

B1. NMC will improve learner success in terms of persistence and completion. (Institutional Effectiveness #1)

1. Incubate and accelerate, as determined, impactful practices identified and/or designed by the “Redesigning the Learning Experience” and “Enhancing Developmental Education” AQIP Action Projects. (Metrics included on Attachment A)

2. Evaluate learner childcare needs through partnership with the Great Start Collaborative Intitiative

B2. All learners will be able to document their intercultural learning experiences. (Strategic Direction #1)

Incubate a co-curricular learning “certification” by June 2013 in order for learners to track and provide evidence for intercultural and service learning experiences.

Financial Thriveability

B3. NMC will develop and implement a budget plan that includes expansion of revenue opportunities along with operational efficiencies to assure fiscal thrivability. (Strategic Direction #2; Institutional Effectiveness #5)

1. By December 2012, evaluate the future for Headlee reinstatement. 2. By December 2012, approve Campus Master Plan. 3. FY14 budget will include Portfolio B plan components. 4. FY14 budget will be based on multi-year Enrollment Plan (size and composition). 5. By June 2013, evaluate the future of power plant co-generation for NMC energy

needs and technician programming. (Metrics included on Attachment A)

National and International Expertise (SD#2)

B4. NMC will incubate partnerships resulting in developing national and international expertise in select areas. (Strategic Direction #2)

1. Develop an incubation plan and allocate resources in the FY14 budget for: a. Value-added agriculture initiatives b. Entrepreneurism initiatives c. International initiatives d. Allied Health initiatives e. Early College and other credit acceleration programs

2. Complete National-level accreditation for Nursing Program by June 2014 3. Develop a Bachelor’s Degree in Applied Maritime Technologies implementation plan

by June 2013

Networked Workforce (SD#3)

B5. NMC will evaluate the employee classification and compensation systems and make adjustments as required. (Institutional Effectiveness #4)

Complete review and adjustments, as necessary, to the employee classification and compensation systems in time to inform FY14 budget.

FY’13 NMC Board of Trustees Level Strategic Goals 2 | P a g e

©Northwestern Michigan College

STRATEGIC GOALS METRICS/TARGETS

B6. NMC will increase institutional leadership capacities needed to implement the strategic plan. (Institutional Effectiveness #5)

1. By June 2013, as part of NMC’s succession plan, NMC will have 25% of positions with documented processes in place in to assure the transfer and safeguarding of organizational knowledge.

2. By June 2013, the Talent III action project team will: • Accelerate Leadership Development in four key areas for all formal leaders

(directors, managers, chairs, etc.) a. Handling difficult situations b. Managing transformational change c. Risk assessment management d. Measuring results

• Accelerate the new Employee Performance PDCA process for all non-faculty staff • Incubate alignment between Workforce Planning and Recruitment/Selection

processes with the Competency Model

(Metrics included on Attachment A)

Attachment A. Northwestern Michigan College BOT-Level Metrics 2012-2013 (version 20120919a )

B1. NMC will improve learner success in terms of student persistence and completion.Fall 2008 Fall 2009 Fall 2010 Fall 2011 2014 Goal*

1 College-level Course Persistence (all grades-Ws)/(all grades) 87.0% 90.2% 90.9% 90.7% 92.0%2 College-level Course Enrollee Success Rate (2.0 and above)/(all grades) 76.9% 76.6% 77.2% 77.6% 78.3%3 College-level Course Completer Success (2.0 and above)/all grades - Ws) 88.4% 85.0% 84.9% 85.6% 87.1%4 Fall to spring persistence (all currently enrolled less dual enrolled, grads) 73.3% 78.1% 78.1% 75.9% 77.0%

B2.

B3.

Actual FY2009

Actual FY2010

Actual FY2011

Projected FY2012

Target FY2013

1 Primary ratio target ratio (fiscal strength) 0.26 0.27 0.31 0.36 0.2-0.42 Composite financial index; Compares unrestricted net assets to total expenses 1.93 3.32 3.05 2.87 3.0-5.03 Net Income Ratio; Net assets/total revenue 0.13% 5.36% 3.29% 2.00% > 0

B4.(Process Measure - Evaluation will indicate complete or incomplete)

B5.

B6.

Spring 2009 Spring 2010 Spring 2011 Spring 2012 Target 2013Employee Engagement Index (11 survey items on engagemenet); % maximum possible score (55pts) 74.7% 85.5% 85.5% 90%Employee agreement on likelihood to recommend NMC to a friend 86.2% 87.6% 89.0% 90%

Learner Success

Financial Thrivability

International Competence

Networked Workforce

All learners will be able to document their intercultural learning experiences. (Process measure - Evaluation will indicate complete or incomplete)

*Note: Goals 1 through 3 above are set at 3 year average of national peers at the 75 percentile. Goal 4 target is set at 3 year average of national peers at the 90th percentile. NCCBP Source.

B6 Metric 2 will be process measures - Evaluation will indicate complete or incomplete plus the following.

NMC will develop and implement a budget plan that includes expansion of revenue opportunities along with operational efficiencies to assure fiscal thrivability.

NMC will incubate partnerships resulting in developing national and international leadership competencies in select areas.

NMC will evaluate the employee classification and compensation systems and make adjustments as required. (Process Measure - Evaluation will indicate complete or incomplete)NMC will increase institutional leadership capacities needed to implement the strategic plan.