UNIVERSITY OF WEST ALABAMA
BOARD OF TRUSTEES MEETING
DECEMBER 1, 2003

TAKEN BY: MARGO NETTLES BRYAN
NOTARY PUBLIC AND COURT REPORTER
P R O C E E D I N G S
MR. MINUS: Okay. We'll call
the meeting to order. I'm going to call
the role.
Mr. Watkins?
MR. WATKINS: Present.
MR. MINUS: Dr. Oliveira?
DR. OLIVEIRA: Present.
MR. MINUS: Mr. Smith?
MR. SMITH: Here.
MR. MINUS: Mr. Duke?
MR. DUKE: Here.
MR. MINUS: Mr. Spree?
MR. SPREE: Here.
MR. MINUS: Mr. Keahey?
MR. KEAHEY: Here.
MR. MINUS: Mr. Minus?
Here. Mr. Bunn? Mr. Saad? Dr. Umphrey? Mr. Hamrick? Ms. Hardaway? A quorum being present, we will start the meeting.
I'm gone first let Mr. Watkins explain to the Board why we don't have a court reporter today.
MR. WATKINS: We've got criminal court going this week and we did not have a court reporter, so we had to get Margo to come and be the court reporter. So at the judge's order, she is now in court. She will not be here.
MR. MINUS: I talked to the gentleman on the camera and he said (inaudible) enough to keep up today and he's gone furnish me a copy of it and I can give that to Ms. Bryan and she can translate from the video if that's acceptable to everybody?
MR. SPREE: Do you need to move up some?
MR. MINUS: Do you need to move up some or are you okay there? All right.
In reviewing the minutes from the December 3rd board meeting, I failed to see were we approved the September 8th minutes. Do I have a motion to approve the September 8th board minutes?
MR. SMITH: So moved.
MR. WATKINS: Second.
MR. MINUS: Motion has been made by Mr. Smith, seconded by Mr. Watkins. Any discussion? All in favor say aye.
ALL MEMBERS: Aye.
MR. MINUS: All opposed? The September minutes have been approved. That brings us to the September 30th minutes, which all of you have copies. I need a motion of approval for the September 30th meeting.
MR. SMITH: So moved.
MR. MINUS: Mr. Smith makes a motion.
MR. WATKINS: Second.
MR. MINUS: Mr. Watkins seconded it. Any discussion? All in favor say aye.
ALL MEMBERS: Aye.
MR. MINUS: All opposed? The ayes have it.
First thing on the agenda is the examiner's report and I have some copies of that for y'all. Thad, would you mind passing those around for me?
The Board asked the governor to ask the Department of Public Accountants to come in, the public examiners or whatever they call it, to come in and tell us exactly what we did on the September 30th meeting as far as the budget revenue figures. As y'all recall, we were doing (inaudible) that particular date and I had told the Board that if we had to come back in to make adjustments we would do so.
So I asked the examiners two -- three questions. Number one, whether the budget was balanced; number two, whether it was legal to transfer funds from reserve auxiliary over to the general fund; and number three, was the budget prudent and responsible. I would like to briefly just go over what the examiners came up with.
Mr. Noland came up with a shortfall of $348,823 and we were aware off 250,000. If y'all recall, we authorized the president at his discretion to move over 250,000 from auxiliary to the general fund. So we were aware off that 250,000. The question became that other $98,000. Based on the examiner's report, I our total shortage, our total shortage was $187,000. That is considerably different than Mr. Noland's figure and about 60, $70,000 less than what we were estimating here at our September 30th board meeting. And I want to tell you how the examiners got to that figure.
Number one, on the 15 and a half percent increase for graduate students, the examiners used a figure of $918,000.
Our finance people here used a figure of $957,000. The 39,000 smaller made by the university -- this is directly from the auditor's report -- appears to be a reasonable assumption. What the university said is that because we raised tuition 15 and a half percent on graduate students we would have less quarterly hours, less hours, less people, whatever to generate that
income. So what he's saying is if you raise their tuition, you lose students. It amounted to about 4 percent. And the auditors even though they came in $39,000 higher than the university, the auditors felt like that was a reasonable estimate on the university's part.
The second is on nonresident fees. As y'all recall, I think Dr. Holland, we had 75 or 80 kids this year who qualified for in-state tuition over out-of-state tuition who met the residence requirements. So the auditor says that we're
gone have $462,000 coming in from the nonresident students. The finance people here estimated it at $419,000. The difference between that is $41,000. The assumption that the finance people made was that we would have more people becoming eligible for in-state tuition, so they were conservative in the $41,000. And the auditors felt like that was -- that was a reasonable assumption also.
The final difference -- and these are major differences, now. The rest of them were kind of trivial. This was the major difference. The final difference is on the waste management tax. The auditors came up with $399,000. The finance people at the university used 302,000. The auditor's comment on that was the university's estimate is the same as last year's estimate and it appears this is one area that a little cushion is built into the budget.
So if we take -- if we take what we did with the $250,000 and transfer it, if Dr. Holland decides to do that. I know he had reservations about that and add only the waste tax, add only the waste tax money, which is what the auditors are saying appears to be a cushion, then we are within our 250,000 range that we've authorized to move over.
The Chair has no opinion on out-of-state or loss of credit hours by aduate students by raising tuition. I think in my judgment those two assumptions by the university were very reasonable. But if we do take -- disregarding those and if we take the difference between the waste management tax that the examiners gave us and the difference in what the finance people
estimated, that would still bring us within the 250, $251,000 range that we had agreed on at our September 30th meeting. If the finance people are too conservative, then we could be as low as $187,000 instead of the 250.
The second question we asked was can we transfer funds from surplus over to the general fund and the answer to that is -- whether the transfer of funds from the surplus to the general fund is legal and appropriate. That's the question. The answer is it is not illegal to spend surplus as anticipated by this budget. If it is appropriate or if expenses should be cut, there's a decision to maybe be made by the university and the board of trustees. So they're telling us that it's okay to do that if we decide to do that.
The final question was the budget prudent and responsible. And their answer is -- whether the budget is prudent and responsible. That's the question. I'm not sure that it was prudent to give pay raises effective October 1st, 2003; however, other than this, the budget appears to be responsible. So I, me personally am very pleased with the report. I
understand that Dr. Holland has problems and rightfully so if you read his letter that he wrote to us about moving the excess 250,000 from auxiliary over. We could be looking at problems there in the future. I think the Board acted in that manner thinking that we were gone be facing horrendous tuition increases in the upcoming year. I think that's what the Board was
trying to do.
Also, if y'all recall, we raised $50, I believe, on dorm fees which was using the university's estimate of $50,000 a year. That would generate $50,000 a year. And we did that to replenish the auxiliary fund of 250,000 if the
administration decides to move it over. So we put in place a method to -- which actually, I guess, was a tuition increase. It was an increase anyway. We put in place a method to replenish the 250 if the administration so decides to move it over. Are there any questions on that? All right.
The next item on our agenda was committee reports and it's my understanding that no committee met this morning.
Okay. Then we'll go into the other item, item number six, which is other, and I'm going to turn it over to Dr. Holland if he has have any comments or information he wants to share with the Board.
DR. HOLLAND: I have a few items. Some of them are just notices and reminders. One, of course, is commencement is December the 13th. We anticipate 218 graduates. Congressman Artur Davis is going to be the speaker at that commencement.
And I think Kaye has already written you asking each of you if you can attend and encouraging you to attend and participate.
Also some other activities. In the area of work force development, last year we had a fast track program on campus that provided necessary skills to individuals in this area who worked in the automotive industry or in the backup service industries in this area, and we have been asked again just right before the holidays by the governor's office and Bill Taylor at Mercedes to offer that course on our campus. We had has two classes last year and those graduates have done very well and are working either for Mercedes or Phifer Wire and places like that and we will be ready in January to offer the program again.
Also on under work force development on February the 6th, we will have a leadership summit here on the campus which is sponsored in corporation with the Commission of East Mississippi and West Alabama. The conference is to address the economic development needs of this area. Congressman Davis is going to speak at the summit, Governor Riley will speak at that summit and governor elect Haley Barbour of Mississippi will also speak at the summit. This is February the 6th. We anticipate about 300 to 350 business and community leaders from this region of the Black Belt. We'll get more information out on this as this develops.
Under economic development activities, you are familiar with the West Alabama Regional Alliance which we work with very closely. It's an alliance of five counties: Greene, Hale, Marengo, Perry, and Sumter. And beginning in January, we will have a web page for that alliance and an 800 number that we will service that will -- the web page and 800 number will bill directly to the tourism and recreational sites and attempt to develop that aspect of the committee. We have Marengo County up on the web site. Hopefully before December the 13th when we leave for our break all five counties will be up and this will be available on the web, and the 800 number will be answered by -- handled through Mr. Monk's office.
Also under economic development, and I think I mentioned this last time, we are working with Shelton State to offer a truck driving school here on campus. There's a tremendous need in this area and we're working closely with McElroy Trucking in Cuba and Suttles Trucking of Demopolis to meet the needs of those lines as well as others. Shelton State will provide the instructor. McElroy Trucking will provide the truck. Suttles will provide the gasoline and we will provide the administrative assistance and the facility on the campus for them to teach it.
There are two other activities, though, that we're working on and ultimately these, I think, will have a tremendous impact in this area. April the 19th through the 24th will be the first Sucarnoochee folk-like festival here on campus. This is a festival that will highlight the folk life of the Black Belt. It will promote the contributions of four women in particular who are associated with this institution and four women who are in the Alabama Women's Hall of Fame and that's Julia Tutwiler, Ruby Pickens Tartt, Martha Young, and Geneva Mercer. And that five-day festival will highlight folk music in this area, the blues in this area, art demonstrations such as weaving and basket making, pottery, the tour of historic churches in Livingston. Katherine Tucker Windham will present a special program on Ms. Julia. There will be ghost tours at night in the streets of Livingston, if you're familiar with the ghosts in Livingston. But this is something that we think will promote the cultural, the heritage and culture of this area. We will start this year and expand it each year. We've worked very closely with Mayor Tom Tartt and Aubrey Ellis, who is with the county commission. They've been very, very supportive. Another project that really kind of grew out of this, we have -- we started working on a project to expand the university archives and to preserve the history of this institution. And it grew beyond that and brought in a consultant.
We had a grant to do that. And we are ready now to start the preliminary work on what is called the culture and heritage museums of the Black Belt. Once again working with the city and the county and ultimately expand it into five or six counties. We plan to start collecting, preserving, interpretting the natural history of the Black Belt, it's people, the native Americans, the African-Americans, the culture and the history of this area and the culture and history of the university.
We have a steering committee that's working on it now. We need to expand that into the five-county areas. We do want to include and work closely with the Coleman Center and the programs in Demopolis and in Eutaw to begin with. We think that this will highlight this area and also give us and attempt to show our heritage and preserve it for this area. But those are the main items I had. Any questions on those?
MR. MINUS: Thank you, Dr.Holland. I want to go back to one area and then we'll open it up to any questions from board members, and if we have none, we will -- Mr. Watkins will be able to get back to court.
I want to comment on the auditor's report about the statement he made on pay raises. I'm not sure that it was prudent to give pay raises. I'm as guilty as anybody about this. This Board did not give pay raises. We've got 97, 100 full-time faculty people here roughly.
DR. HOLLAND: 87, yeah.
MR. MINUS: I think it was 27 individuals that received pay raises. And as y'all know, those were longevity or --
DR. HOLLAND: Promotions.
MR. MINUS: Promotions or whatever. (inaudible) I think.
DR. HOLLAND: Enhanced.
MR. MINUS: (inaudible) So the fact is we did not give pay raises and if you go and get a doctor's degree instead of a masters degree or something like that. So, you know, the faculty did not get pay raises. And I wrote a letter to the Department of Public Examiners explaining the situation about the -- what he called pay raises. Again, those 27 individuals out of 97 received those because of being here a certain number of years or because they increased their degrees or because some became department heads or chairs or deans or whatever and just got promotions. So I did qualify that with the Department of Public Examiners. I took exception to that, but as the gentleman told me, the exception was noted. So I don't know what that means. All right.
We're gone turn it over now to anybody whose got any questions towards the Board or Dr. Holland or any committee chairman. We had committees set up to meet today and it's my understanding none of them met. So Dr. Holland has assured me in the future that he's gone give committees some responsibilities and so they can become a little more active in our process. I told him today that it was very difficult for me to, the Chair, to accept criticism that our committee system doesn't work when nobody gives the committees anything to do. And then if I do it, then you hear educators greatest fear, micromanage. So we have not held these committee meetings because of those reasons, but Dr. Holland and myself have talked about that and feel strongly, both of us, that the committees do need to get involved and take an active interest in the university. Mr. Smith?
MR. SMITH: Mr. Chairman, I want to go on record with a strong exception to the special committee report from the SACS committee that came out of this campus and held two days of meetings and has been properly documented and responded to by an attorney. And if that doesn't get SACS' attention, we'll do whatever is necessary to do on that. I just want to go on record that this is probably the biggest piece of junk that I've ever read in my life as far as a special committee report. Dr. Holland, I want you to understand my feelings on that and this ain't gone be the end of it. Enough said.
MR. MINUS: Dr. Oliveira.
DR. OLIVEIRA: I was just raising my hand because I had spoken to Ms. Lena Hardaway about meeting with the students here because I live across the state and she'd promised that she was going to speak with and meet with Mr. Buckalew and also with the student government. And I haven't been able to catch up with her to find out if she has. (inaudible) her office each time I've come to meetings and she's been unavailable. Today she was in a staff meeting when I stopped. But I wanted Mr. Buckalew and I wanted Dr. Holland to know that if students feel they need to speak with us about anything, you know, they can call me. If they want me to, I'll come. But Ms. Hardaway had said because she is right here that she would make herself available. And if she hasn't been on campus, she really need to. You probably (inaudible) needs to make sure she gets to some of these meetings.
MR. MINUS: Thank you. Any other questions? Mr. Spree.
MR. SPREE: Yes, sir. First of all, I want everybody in this room to know that anything I say I haven't rehearsed it with anybody, so nobody knows what I'm going to say. (inaudible) But let's talk about the report of special committees. I've got four pages here. I'm not bragging on myself, but I spent the last two Sundays and Saturday afternoons sitting down writing and I wrote 25 pages addressing these four pages and I find it very irresponsible (inaudible) the integrity of this board, what we stand for. It's embarrassing to me to get to a position that we have to take your deposition. It's embarrassing. Now I don't know where all this is going to end, but you need to help put an end to it.
Now, when you took that deposition, did you have this in your possession, this four-page report?
DR. HOLLAND: No.
MR. SPREE: You did not have it in your possession?
DR. HOLLAND: Not that I know of.
MR. SPREE: You didn't know anything about it?
DR. HOLLAND: Well, we got, you know, the draft report.
MR. SPREE: This preliminary, did you have it?
DR. HOLLAND: I probably saw the draft report. I did not have the complete report.
MR. SPREE: But you had the draft report. Mr. Gallion asked you some questions about it. You don't remember?
DR. HOLLAND: Well, I don't remember the specific questions from that report, no.
MR. SPREE: Well --
MR. KEAHEY: Mr. Chairman, I've got to go to court. It appears that we're -- we need to go into executive session
(inaudible) --
MR. SPREE: No. I just want to ask about this. This is public. It's been made public.
MR. KEAHEY: Mr. Chairman, there's a legal matter spending. I think it's improper at this time to go any
further.
MR. MINUS: Do you want -- (inaudible)
MR. SPREE: I want to know the answer.
MR. MINUS: The motion has been made to go into executive session. Is there a second?
MR. DUKE: Second.
MR. MINUS: Mr. Duke seconds it. All in favor say aye.
ALL MEMBERS: I.
MR. MINUS: All opposed? If you people will excuse us for a few minutes, please.
(EXECUTIVE SESSION)
MR. MINUS: The Board is going to stand in recess. We will reconvene on January 19th, 10:30 at this student union building. Yes, ma'am.
DR. OLIVEIRA: Sorry to interrupt. I should have done this at the beginning of the meeting. I'd like to thank the university for its kindness and its expressions, condolences to my family in the death of my mother. I really appreciate it and it's really sweet of you.
MR. MINUS: Thank you, Doris. The Board will recess and we will reconvene on January 19th, 2004 at 10:30 a.m.
here.

C E R T I F I C A T E

STATE OF ALABAMA)
JEFFERSON COUNTY)

I hereby certify that the above and foregoing minutes were taken down by me in stenotype, and the minutes were transcribed by means of computer-aided transcription, and that the foregoing represents a true and correct transcript of the minutes given by said people upon said board meeting. I further certify that I am neither of counsel nor of kin to the parties to the action, nor am I in any way interested in the result of said cause.

____________________________
MARGO NETTLES BRYAN

My commission expires
May 4, 2004