Staff and Guests Attending Meeting Lists are on file in the District Office.

YAVAPAI COLLEGE DISTRICT GOVERNING BOARD Approved Minutes of Regular Meeting Tuesday, January 12, 2010 NAU/YC Regional University Campus 7351 East Civic Circle Drive, Room 141 Prescott Valley, AZ 86314 Recorded Board meetings may be viewed in the Tri-City area on Cable Channel 13 on Wednesdays at 3:00 a.m. and 10:00 p.m. Members Present: Dr. Patricia McCarver, Chair Dr. Dale Fitzner, Board Member Mr. Herald Harrington, Secretary & Spokesperson Mr. Charles Leon, Board Member Mr. Ray Sigafoos, Board Member Staff and Guests Attending Meeting Lists are on file in the District Office. 1. Call to Order - Procedural 2. Chair McCarver called the Yavapai College District Governing Board meeting to order at 1:00 p.m. 3. Pledge of Allegiance - Procedural The Pledge was led by Mr. Sigafoos. 4. Welcome to Guests and Staff - Procedural Chair McCarver welcomed all guests and staff present. The newly-hired Sergeant of Northern Arizona Regional Training Academy (NARTA), Sergeant James Edelstein, was recognized. 5. Approval of December 11, 2009 Regular Board Meeting Minutes Decision Chair McCarver noted a nonsubstantive correction to Item No. 14 of the draft minutes. Dr. David Jones, should read Dr. David Young. Mr. Harrington moved, seconded by Dr. Fitzner, to approve the December 11, 2009 Regular Board Meeting minutes as corrected. Motion carried unanimously.. 6. Adoption of Agenda Decision Mr. Harrington moved, seconded by Mr. Sigafoos, to adopt the agenda. Motion carried unanimously. 7. Open Call Procedural Ruth Wicks, newly-appointed President of Greater Verde Valley Chapter of Yavapai College Foundation, informed the Board that the Chapter is doing well. Linda Buchanan, their newly hired part-time employee, just received an endowment of $1,000 of unrestricted funds. Ms. Wicks plans to attend future board meetings and update the Board members of the Chapter s progress on a regular basis. 8. Consent Agenda Heading 9. Acceptance of Transfers and Other Expenditures Months of November and December 2009 Receipt 10. Receipt of Report on Revenues and Expenditures November 2009 Receipt Page 1

11. Adoption of Resolution 2010-#01, Authorizing Board Chair and Board Secretary to Declare Official Intent on Behalf of the District with Respect to Reimbursement from Proceeds of Tax-Exempt Bonds Pursuant to Treasury Regulations Section 1.150-2 Discussion and Decision Chair McCarver requested that Item No. 11 Adoption of Resolution 2010-#01, Authorizing Board Chair and Board Secretary to Declare Official Intent on Behalf of the District with Respect to Reimbursement form Proceeds of Tax-Exempt Bonds Pursuant to Treasury Regulation Section 1.150-2-Discussion and Decision, be removed from the consent agenda for discussion. Mr. Leon moved, seconded by Mr. Sigafoos, to approve the Consent Agenda excluding Consent Agenda Item No. 11, which was removed for discussion and decision. Motion carried unanimously. Discussing Item No. 11, Mr. Lynch, Executive Vice President of Finance and Administrative Services, reported that the Board passed a similar resolution in 1999, but that that resolution was never signed by the Board Chair and Secretary. Bond counsel advised that this document be reapproved and signed. By approving this resolution, the College may make expenditures with the intent that such expenditures will be reimbursed from the proceeds of a tax-exempt bond. This would also apply to any lease-purchase expenditures. The Declaration of Intent will be signed by the Controller of the College as needed. Mr. Sigafoos moved, seconded by Dr. Fitzner, to adopt Resolution 2010-#01, Authorizing Board Chair and Board Secretary to Declare Official Intent on Behalf of the District with Respect to Reimbursement from Proceeds of Tax-Exempt Bonds Pursuant to Treasury Regulations Section 1.150-2. Motion carried unanimously. 12. Information - Heading 13. Information from the President Reports: Federal and State Legislative and Lobbying Efforts, Northern Arizona University/Yavapai College Regional University Project by Dr. Susan Johnstad and other Related Issues Information Dr. Horton reported on the following topics: Federal and State Legislative and Lobbying Efforts Dr. Horton reported that he attended a meeting with Governor Brewer on December 17, 2009. She asked that agency heads implement a plan for reducing expenditures by 15% and indicated that she could request a reduction of salaries by 5%. Yavapai College is not subject to those required reduction provisions because it is not a state agency; however, since the State is in a cash-flow crisis, it is expected that the College s quarterly payments will be deferred. During the Board Retreat this morning, the Board discussed strategies of how to deal with zero State financial support. Those discussions will be recapped under Agenda Item No. 27. During the Board Retreat, the Board received training from Jim Rock, Vice President of Parry, Romani, DeConcini & Symms, on how to Work with Washington D.C. to raise federal funding. On December 16, 2009, Chair McCarver and Dr. Horton traveled to Washington D.C. and met with Senators McCain and Kyl, who have submitted letters in support of the College s $3.7 million allied health grant proposal. Congresswoman Kirkpatrick was asked to support the Northern Arizona University/Yavapai College Regional University project. Northern Arizona University/Yavapai College Regional University Project by Dr. Susan Johnstad Dr. Susan Johnstad, NAU/YC Campus Executive Officer, presented the plan and priorities for NAU/YC s newest partnership, the regional university (refer to Board packet, pg. 37). This project was established to address the State of Arizona s initiative to increase the number of Page 2

baccalaureate degrees. Both institutions are working together to build fresh and relevant bachelor degree programs. An annual tuition rate for fall 2010 of $4,500 (a blend between community college and university rates) will be proposed to Arizona Board of Regents for approval. The intent is to keep the annual rate attractively low and allow students to move through the program at an accelerated rate. Other Related Topics Dr. Horton reported that Human Resources went live this week with the Banner Enterprise Resource Planning (ERP) system and thanked all those involved for their efforts. 14. President s Monthly Summary, and College Highlights January 2010 Information and/or Discussion Dr. Horton encouraged all to review the monthly summary and highlights in the Board packet, pgs. 39 and 40. 15. Update from Academic Affairs Faculty Development, Textbooks, and Inspector General s Report on the Higher Learning Commission Information and/or Discussion Dr. Goswami, Vice President of Academic Affairs/Provost, updated the Board on the following topics: Faculty Development Stacey Hilton, Manager of Technology Enhanced Learning Services (TELS), reported on the fourth annual Winter Institute 2009, which was held on December 15 & 16, 2009 and attracted approximately 131 full-time and adjunct faculty and staff participants (refer to Board Packet handout Winter Institute 2009). The first institute was offered during the summer of 2006 and has experienced continued success. Textbooks Dr. Goswami reported that the College is making progress in creating a textbook rental program. Plans for implementation of this rental program with the Bookstore will be presented at the March 2010 Board meeting. Inspector General s Report on the Higher Learning Commission The Inspector General of the U.S. Education Department has issued a harsh assessment of the Higher Learning Commission of the North Central Association of Colleges and Schools, one of the nation s six regional accreditors, recommending that the Secretary of Education consider limiting, suspending, or terminating the organization s status. The unusual action is in response to the Office of Inspector General s examination of the Commission s standards for measuring credit hours and program length. The office completed similar reports for two other regional accreditors in recent weeks, but has not recommended that the Secretary consider taking any action against either of those groups. 16. Federal Financial Aid Availability and Scholarships at Yavapai College Information and/or Discussion Vikki Gill, Director of Financial Aid, presented updated information on scholarships and federal financial aid availability as requested at the December 2009 Board meeting (refer to Board packet, pgs. 42 46). Currently, the College sets aside approximately 25 percent of the additional revenues generated from tuition increases for additional need-based financial aid. The Board requested information regarding the following question: If this percentage from tuition did not go into the institution s scholarship pool for FY2010-2011, what would be the impact on Page 3

students? Ms. Gill highlighted information on FY 2009-2010 Scholarship Allocation History, Federal Aid Applicants, Pell Grant and Total Aid History. Since the College has a strong institutional scholarship pool, she stated that if the full amount from tuition increase went toward operations of the College to preserve programs and services for the 2010-2011 year without any increase in the amount of financial aid available, students would likely continue to receive the aid they need. The system has a pathway in which students in need of financial aid will be assisted. Seventy percent of students who actually file for federal grant applications receive money that does not need to be repaid. 17. Board Education/Strategic Thinking and Planning Heading 18. Annual Review of Ethical Standards and Training and Completion of Annual Conflict of Interest Declarations - Information Lynne Adams, Board Counsel from Lewis and Roca, L.L.P., conducted training on ethical standards, particularly on the conflict of interest rules and statutes that govern Board Members conduct. (Refer to powerpoint presentation, Board packet, pgs. 49 60). It was requested that each Board member complete the Annual Conflict of Interest Declaration and submit to the Executive Assistant to the Board by January 31, 2010, to be shared and reviewed at the February 2010 regular Board meeting. 19. Monitoring Reports - Heading 20. Receipt of President s Monitoring Report Policy 2.0 Global Executive Limitations - Monitoring Dr. Horton reported that Yavapai College has a culture of integrity and high-ethical standards. One hundred per cent of full-time employees fulfilled the ethics training requirement for FY 2009. For current employees, the College has moved ethics training requirements from a oneyear cycle to a two-year cycle. In addition to Ethics training, the College requires all employees to have Preventing Sexual Harassment training every year (refer to Board packet, pg. 62). Dr. Horton reported compliance with Policy 2.0 Global Executive Limitations. 21. Board Self-Evaluation RE: Policy 3.1 Governing Focus and Style and Policy 3.7 Cost of Governance - Monitoring Chair McCarver stated that all five members reported compliance with Policy 3.1 Governing Focus, and four Board members reported compliance with Policy 3.7, but one Board member wanted more information on Policy 3.7.1.2, which is related to an audit or third party monitoring of organizational performance. That issue was discussed during the Board retreat today. 22. Short Recess Procedural Chair McCarver requested the meeting recess at 2:09 p.m; meeting reconvened at 2:21 p.m. 23. Ownership Linkage Heading 24. Election of Board Officers Chair and Secretary, if Requested, and Board Member Liaison Committee Appointments for 2010 Discussion and/or Decision Chair McCarver stated that Board Chair and Secretary, were elected last year for two-year terms; however, the Board can elect a new Chair and Secretary every January. Mr. Sigafoos moved, seconded by Mr. Leon, that Dr. McCarver and Mr. Harrington continue to serve their second year of a two-year term as Chair and Secretary. Motion carried unanimously. Chair McCarver announced that Board Member Liaison Committee appointments for 2010 will remain the same: Mr. Sigafoos, Foundation Liaison; Dr. Fitzner, Arizona Association for Page 4

District Governing Boards (AADGB) Representative; Mr. Leon, Yavapai Combined Benefits Trust Representative and Frank D Angelo, Alternate; and Mr. Harrington, Board Spokesperson. 25. Reports from Board Liaisons Arizona Association for District Governing Boards (AADGB); Yavapai College Foundation, and Yavapai Combined Trust Information Arizona Association for District Governing Boards (AADGB) Dr. Fitzner reported the next AADGB meeting is scheduled for Thursday, January 14, 2010 at Maricopa Community College District offices at 10:00 a.m. There will be an election of officers. They are working on distributing their new board manuals and encouraging districts to submit nominations for Association of Community College Trustees 2010 Annual Awards. Dr. Fitzner submitted the Arizona Community College Trustee trimester report. Foundation Report - Mr. Sigafoos was not able to attend the December Foundation Board meeting. Mr. Steve Walker, Vice President of College Development/Foundation, reported that for the first six months of FY 2009-2010, the Foundation is way ahead in terms of total Foundation fundraising versus its revenue goal. They have received $250,000 for scholarships. Two auxiliaries have recently been established: Friends of Verde Art and Friends of Music. Due to Mr. Sigafoos unavailability for the January Foundation meeting scheduled for tomorrow, January 13, 2010, Dr. McCarver will attend. Yavapai Combined Trust - Mr. Leon reported the next meeting is scheduled for January 22, 2010 at Prescott City Hall at 9:30 a.m. Ms. Rose Hurley, Director of Human Resources, reported that the Combined Trust is anticipating a 5% increase as opposed to the forecasted 15% increase for next year; the trend for this year is good; reserves are good; and their balance is better than it has been for the last three years. 26. Policy Issues Heading 27. Recap and Potential Additional Discussion of the Annual Board Retreat Topics: FY 2010-2011 Preliminary Budget Planning Assumptions, Board Self-Assessment Results-2009, and Training Session, Working with Washington - Information and/or Decision Chair McCarver summarized the following topics discussed during the Board Retreat: Board Self-Assessment Results 2009 Board members discussed the results of the Board s Self-Evaluation for 2009, focusing on areas of improvement for 2010. The Board agreed that their overall performance was good (refer to Board Retreat packet, pgs. 5 11). The Board took action during the Retreat on the following two areas of focus for 2010. 1. Community Relations For several years, the Board has, with the assistance of administration, conducted open forums to gather input from community members, faculty and staff on particular subjects in connection with the Board s Policy 3.7.1.3 Ownership Linkage and Other Costs. The Board voted at the Retreat to reach out to the community by giving brief presentations to various community groups, e.g. Rotary, city council, etc. The College President and staff will work to develop a structured presentation that Board members can use and that will focus on issues such as educating and promoting the NAU/YC project and gathering general feedback about College performance. Refer to Board Retreat minutes of January 12, 2010 for additional information. Page 5

2. Independent Monitoring The Board does a lot of monitoring, but a lot of the information it relies upon is internal data received from the College and administration. Board members believe there needs to be process in place to gather information from an outside source that isn t necessarily familiar with the structure. During the Retreat, the Board voted to direct the President to identify a company that performs independent monitoring and report back to the Board. This company would contract directly with the Board and report findings directly to them; areas of focus have not yet been determined. There will be a recap of these areas at the August 2010 Board retreat, and the Board plans to evaluate the status of each of these initiatives during the December 2010 Board self-evaluation process. FY 2010-2011 Preliminary Budget Planning Assumptions Mr. Lynch presented a brief recap of Monitoring Report for Executive Limitations, Policy 2.4- Financial Planning and Budgeting December 2009, which was originally presented at the December Board meeting (refer to Board Retreat packet, pgs. 13-23). He also discussed some additional information and updated figures for budget considerations (refer to Board Retreat handout). Administration was requesting authorization to use some of the Board s contingency funds if needed based on the current assumption of a 15% or more reduction of State aid for FY 2010-2011, with the understanding that in addition, the College would move forward with a plan to cut expenses. Mr. Sigafoos moved, seconded by Dr. Fitzner, to authorize administration to use up to $1 million from the College s general contingency fund and up to $537,867 from the College s plant contingency fund as needed to address a budget shortfall in FY 2010-11. Motion carried unanimously. Working with Washington Mr. Jim Rock, Vice President of Parry, Romani, DeConcini & Symms, presented a training on how to work with the federal government to acquire federal funding support for the allied health grant proposal and the NAU/YC project (refer to Board Retreat following handouts: Congressional Appropriations Process and Case Studies in Congressionally Directed Earmarks). Because of the State s budget crisis, the College s governmental focus will be on federal funding; however, it is the Board s intent to address at the December 2010 Board Retreat how they can become more effective and influential lobbyists for funds at the State level. 28. Other Information Heading 29. Correspondence to the Board Receipt None was received. 30. Dates and Places of Future Meetings Discussion and/or Decision January 12, 2010 Tuesday, Board Retreat, 8:30 a.m. ; Regular Board Meeting, 1:00 p.m. at Northern Arizona University/Yavapai College, Prescott Valley Facility February 16, 2010, Tuesday, 1:00 p.m. Prescott Campus March 9, 2010 - Tuesday, 1:00 p.m. Northern Arizona University/Yavapai College, Prescott Valley Facility April 20, 2010 - Tuesday, 1:00 p.m. Sedona Center for Arts and Technology May 11, 2010 - Tuesday, 1:00 p.m. Verde Valley campus June 15, 2010 - Tuesday, 1:00 p.m. Prescott Campus Page 6

July No Meeting August 10, 2010 - Tuesday, 1:00 p.m. Chino Valley Campus September 14, 2010 - Tuesday, Planning Workshop 10:30 a.m.; Regular Board meeting, 1:00 p.m. Prescott Campus October 12, 2010 - Tuesday, 1:00 p.m. - TBD November 9, 2010 - Tuesday, 1:00 p.m. TBD December 14, 2010 - Tuesday, Annual Board Retreat - 9:00 a.m. ; Regular Board meeting 2:00 p.m. Prescott Campus It was recommended to make the following changes to the Dates and Places of Future Meetings: Since Chair McCarver is not able to attend the February 16, 2010 Board meeting, Mr. Harrington will chair the meeting. Mr. Sigafoos requested that the May 11, 2010 Board meeting be changed to May 18 2010. Board members will check calendars to confirm availability for June 15, 2010 Board meeting. Mr. Sigafoos, moved, seconded by Mr. Harrington, to convene into Executive Session Pursuant to A.R.S. 38-431.03(A)(3),(A)(4) to receive legal advice regarding lawsuit about electrical issues on Prescott Campus. Motion carried unanimously. Executive Session convened at 2:55 p.m. 31. Executive Session Pursuant to A.R.S. 38.431.03(A)(3),(A)(4) Receive Legal Advise RE. Lawsuit about Electrical Issues on Prescott Campus Procedural 32. Possible Action as a Result of Executive Session Decision Regular session reconvened at 3:15 p.m. Mr. Harrington moved, seconded by Mr. Sigafoos, that legal counsel proceed as instructed in Executive Session. Motion carried unanimously. 33. Adjournment of Regular Meeting Procedural Mr. Harrington moved, seconded Mr. Sigafoos, that the meeting be adjourned. The motion carried unanimously. Meeting adjourned at 3:18 p.m. Respectfully submitted: /S/ Date Approved: February 16, 2010 Marilyn Yetter, Recording Secretary Reviewed by Attorney Lynne Adams /S/ Dr. Patricia McCarver, Chair /S/ Mr. Herald Harrington, Board Secretary Board agenda, packet materials, handouts from meeting are on file in the District Office and posted on the College website: www2.yc.edu. The mission of Yavapai College is to provide cost-effective, convenient learning opportunities for the diverse populations of Yavapai County. Page 7