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1701 East Front Street
Traverse City, MI 49686
(231) 995-1010
Board of Trustees www.nmc.edu/trustees
Meeting Agenda Monday, March 21, 2016
at NMC Hagerty Center, 715 E. Front Street
5:00 p.m. Dinner with Student Government Association – Room D
5:30 p.m. Regular Meeting – Room C
I. GENERAL BUSINESS
A. Call to Order
B. Roll Call
C. Pledge of Allegiance
D. Review of Agenda and Approval of Additions, Deletions, or Rearrangements
II. REPORTS (Most reports are also provided to the Board in their materials packet, which can be
accessed on the nmc.edu Board of Trustees website.)
E. Student Government Association Presentation—SGA members
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. MCCA Board of Directors Spring Meeting Report—Chris Bott, Board Representative
I. Building and Site Committee Report—Ross Childs, Chair
J. BBQ Board Report—Marilyn Dresser, Board Representative
K. Foundation Report—Kennard Weaver, Board Representative
L. Legislative Issues Report—Timothy Nelson, President
III. UPDATES
M. President’s Update—Timothy Nelson, President
N. Board Chair Update—Kennard Weaver, Chair
IV. DISCUSSION ITEMS
O. FY17 Budget Update—Vicki Cook, Vice President of Finance and Administration
V. PUBLIC INPUT
Request forms for public input are available at the meeting location. Any individual of the
public may speak for up to three (3) minutes. The Board will not receive public input from
individuals unless they are present at the meeting. The Board will take public remarks into
consideration, but will not comment at time of input.
Northwestern Michigan College provides lifelong learning
opportunities to our communities.
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1701 East Front Street
Traverse City, MI 49686
(231) 995-1010 [email protected]
Board of Trustees http://www.nmc.edu/trustees/
March 21, 2016 Meeting Agenda
Page 2
Posted Friday, March 18, 2016, 9:00 a.m.
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:
P. Minutes of the February 22, 2016, regular and closed meetings
VII. ACTION ITEMS
Q. Line of Credit Renewal (Pursuant to Policy A-106.00 Finance)
Recommend authorization for renewal of the $2 million line-of-credit with Fifth Third
Bank.
R. Sodexo Contract Extension (Pursuant to Policy A-106.00 Finance)
Recommend authorization for administration to enter into a three-year contract extension
with Sodexo for facility management services in the amount of $528,064 per year,
effective March 21, 2016 through February 28, 2019, to be funded through the Campus
Services general fund budget.
S. Bond Resolution (Pursuant to Policy A-106.00 Finance)
Recommend adoption of Resolution Authorizing Issuance and Sale of Bonds as presented
for capital improvements to College facilities.
T. Closed session (Pursuant to Policy B-106.00 Other)
Recommend that the Board convene in closed session as permitted by Section 8(c) of the
Open Meetings Act, MCL 15.268(c), to discuss strategy connected with the negotiation
of collective bargaining agreements between the College and the Michigan Education
Association. (Roll Call Vote)
U. Reconvene Regular Meeting (Pursuant to Policy A-106.00 Other)
Recommend the closed session adjourn and the open session of the regular meeting be
reconvened.
(Roll Call)
VIII. REVIEW OF FOLLOW-UP REQUESTS
Confirm requests made by the Board that require administrative follow-up for information to be
provided to the Board at a later date.
IX. ADJOURNMENT
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1701 East Front Street
Traverse City, MI 49686
(231) 995-1010 [email protected]
Board of Trustees http://www.nmc.edu/trustees/
March 21, 2016 Meeting Agenda
Page 3
Posted Friday, March 18, 2016, 9:00 a.m.
Upcoming Board Meeting Dates: All board meetings are open to the public.
April 25, 2016 - Oleson Center Room A/B, 1881 College Drive
May 23, 2016 - Oleson Center Room A/B, 1881 College Drive
June 27, 2016 - Great Lakes Campus Room 112, 715 E. Front Street
July 25, 2016 - Great Lakes Campus Room 112, 715 E. Front Street
August 22, 2016 - Great Lakes Campus Room 112, 715 E. Front Street
September 26, 2016 - Oleson Center Room A/B, 1881 College Drive
October 24, 2016 - Oleson Center Room A/B, 1881 College Drive
November 21, 2016 - Oleson Center Room A/B, 1881 College Drive (3rd Monday)
December 19, 2016 - Oleson Center Room A/B, 1881 College Drive (3rd Monday)
January 23, 2017 - Oleson Center Room A/B, 1881 College Drive
February 27, 2017 - Oleson Center Room A/B, 1881 College Drive
March 20, 2017 - NMC Hagerty Center, Great Lakes Campus, 715 E. Front Street (3rd Monday)
April 24, 2017 - Oleson Center Room A/B, 1881 College Drive
May 22, 2017 - Oleson Center Room A/B, 1881 College Drive
June 26, 2017 - Great Lakes Campus Room 112, 715 E. Front Street
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SGA Members and Staff Advisors Attending March 21, 2016 Board Dinner and Meeting
Edris Fana – Aviation, SGA President
Caleb Kase – Mechanical Engineering, SGA Vice President
Peter Foulkrod – Political Science, SGA Treasurer
Anna Montgomery – Education, SGA Secretary
Guilherme Tasso – Engineering Technology/UAS, SGA PR & Marketing Coordinator
Diego Jacho – Civil Engineering, Water Resources
Joaquin Diaz- Industrial Engineering
Prajakta Nivargi – Business Administration & Management
Clive Kagande – Aviation
Lisa Thomas – SGA Advisor
Mara Penfil – SGA Advisor
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MEMO Office of Admissions _________________________________________________________________________________________
To: Tim Nelson, President Chris Weber, VP for Enrollment Management & Student Services From: Cathryn Claerhout, Director of Admissions Date: March 14, 2016 Subject: Enrollment Update – Summer/Fall 2016 _________________________________________________________________________________________
Summer 2016 Enrollment for SU2016 stands at 807 students as of this date. Admission applications show an increase of 14% (532) over last year point in time (459) and a 16% increase in new admits (287). Students retained from spring shows a decrease of 2% (632). Final numbers will be available from the Records & Registration Office after Enrollment Report Day, which occurs June 19, 2016. Three New Student Orientations (NSO) are scheduled starting April 8, 2016 continuing through June 9, 2016. Each NSO has multiple sessions that can accommodate up to 660 new and transferring students to NMC. Sessions in April are full and sessions in May are filling quickly. Statistics (Resources: Digital Dashboard – Same Date Comparison SU2013-2016) Summer 2013 2014 2015 2016 New Students Registered 46 67 76 85 Prior Admits Registered 14 5 5 5 SP Students Registered for SU 830 709 645 632 Returning Students Registered 136 120 74 85 Average Credit Hrs/student 5.70 5.40 5.55 5.41 Contact Hrs 6.04 5.75 5.95 5.82 Total Headcount 1026 901 800 807 Tuition Revenue 845,733 766,732 753,520 781,927
(Resources: Digital Dashboard – Same Date Comparison SU 2015-2016) 2015 2016
Inquiries 641 135
Admissions Applications 459 532
Admits 241 287
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Fall 2015 Registration for fall semester begins March 16, 2016. Admission applications and admits for fall are all trending ahead of last year point in time.
(Resources: Digital Dashboard – Same Date Comparison FA 2015-2016)
2015 2016
Inquiries 3640 4517
Admissions Applications 2052 2234
Admits 1111 1245
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Northwestern Michigan College
Fiscal Year 2015-2016
Year-End Projections
As of March 9, 2016
YTD FY2016 Acual
FY15 FY16 FY16 Over/(Under) Projected Over/(Under)
Actual Budget @ 2/29/2016 Budget @ 3-8-16 Projected Comments
Revenue
Local Sources
Tuition & Fees 51 23,526,466 24,834,033.00 17,186,640 (7,647,393) 22,960,351 (1,873,682) Fall/Spring tuition & fees, EES tuition/fees, WSI workshops/training, and Flight fees
Property Taxes 51 9,530,648 9,763,411 8,783,287 (980,124) 9,763,411 - Total Local Sources 33,057,114 34,597,444 25,969,927 (8,627,517) 32,723,762 (1,873,682) State Sources 53 10,497,117 9,195,100 5,157,589 (4,037,511) 9,246,700 51,600 Add'l state aid for retirement contribution
Federal Sources 54 618,400 524,000 326,669 (197,331) 718,400 194,400 GLMA fuel (offest in fuel expense); Perkins grant
Private Sources 55 469,536 375,000 213,343 (161,657) 403,775 28,775 Foundation funds for WSI equipment
Investment and Interest Income 57 284,516 274,000 283,980 9,980 371,623 97,623 Realized gain for bonds
Unrealized gain/(loss) on investments 57 335,596 - - - - -
Other Sources 59 439,911 298,250 331,547 33,297 449,600 151,350 GLMA program, NJTP fees, collection of old accounts, Lobdell's sales
Total Revenue 45,702,190 45,263,794 32,283,054 (12,980,740) 43,913,860 (1,349,934)
Expenses
Salaries 61 21,207,348 21,916,532 14,041,931 (7,874,601) 21,596,637 (319,895) Adjunct/overload/students
Benefits 65 10,594,081 9,505,515 6,165,615 (3,339,900) 9,064,696 (440,819) Healthcare cots; Retirement/FICA for wage savings
Purchased Services 71 2,286,644 2,316,558 1,405,818 (910,740) 2,308,023 (8,535) Increase in legal fees for negotiations and audit fees; reduction in contracted services
Supplies & Materials 72 3,009,632 2,899,990 1,684,232 (1,215,758) 3,004,798 104,808
Add'l for Int'l trips & GLMA fuel-both offset in revenue; savings in postage, office supplies, and aviation fuel, less $50,000 of COAT to be spent in capital line.
Internal Services 73 104,806 80,995 18,123 (62,872) 38,400 (42,595) Decrease in internal charges for events
Other Expenses 74 1,984,287 1,856,773 1,235,623 (621,150) 1,961,525 104,752 Finance charges and property tax refunds; savings in Native waiver, and equipment rentals
Institutional Expenses 75 1,784,265 1,735,684 1,105,393 (630,291) 1,685,684 (50,000)
Maintenance & Renovation 76 1,381,708 1,533,128 852,573 (680,555) 1,498,927 (34,201)
Reduced for budget spent on capital items (expense added to capital line); small savings in equipment maintenance
Professional Development 77 659,287 769,012 383,772 (385,240) 621,963 (147,049) Savings in professional development and travel
Capital Outlay- small expenditures 79 687,709 262,941 210,767 (52,174) 369,122 106,181
2 WSI capital items covered by foundation funds, WSI, grounds, and music equipment offset by reductions in supply line items, increase by $50,000 for COAT items budgeted in supplies (7200's) .
Total Expenses 43,699,767 42,877,128 27,103,848 (15,773,280) 42,149,776 (727,352)
Transfers
Plant Fund 1,099,647 1,499,647 - (1,499,647) 1,499,647 - GLMA Equipment Fund (478,865) - - (10,000) (10,000) Expense in contracted services
Technology Fund 400,000 500,000 - (500,000) 400,000 (100,000) Reduce transfer to Technology fund
Facility Fee 40,000 40,000 - (40,000) 40,000 - Plant Fund- debt service 3,899 - - - - - Aviation Plant Transfer for Tach hours 415,637 360,000 186,994 (173,006) 340,000 (20,000) Reduced due to reduction in flight hours
Loan Funds transfer 15,372 - (54,978) (54,978) - - COAT carry forward to FY15 (29,500) - - - - - Strategic projects 250,000 250,000 - (250,000) 250,000 - Funds for Transformation 50,000 50,000 - (50,000) 50,000 - Approved use of reserves to suppport new positions - (283,709) - 283,709 (184,110) 99,599 GLMA fuel reserves - - (75,000) (75,000) Use of FY15 MARAD fuel funds in FY16
GLMA transfer (25,000) 25,000 (25,000) - Alumni transfer (16,500) 16,500 (16,500) - Indirect Grant Revenue & Program support (18,297) (115,865) (2,982) 112,883 (115,865) -
Total Expenses & Transfers 45,447,660 45,135,701 27,232,882 (17,902,819) 44,302,948 (832,753)
Net Revenue before Program Reserves 254,530 128,093 5,050,172 4,922,079 (389,088) (517,181)
Funds reserved for Specific Programs 126,368 (125,000) - 125,000 (75,400) 49,600 Purchases in program specific reserved funds
Net Revenue after Program Reserves 380,898 3,093 5,050,172 5,047,079 (464,488) (467,581)
NMC definition of the term "Projection" is a forecast of year-end revenues & expenses (not accounting definition)
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Tim Nelson <[email protected]>
MCCA Weekly Board Update | Report 314 | March 14, 20161 message
Michigan Community College Association <[email protected]> Mon, Mar 14, 2016 at 6:19 AMReply-To: [email protected]: [email protected]
[Report #314 | March 14, 2016]
FROM YOUR ASSOCIATION PRESIDENT...
It was great to see so many of you at the MCCA Spring Board mee ng atWashtenaw Community College last week. A special thanks to PresidentRose Bellanca, and the Washtenaw Community College Board ofTrustees for providing such a wonderful venue, great food, andinforma ve entertainment. For those who were not able to a end, wewill be sending out the slide deck from our keynote speaker, Dr. PeterBahr this week. Have a great week, everyone. ‐- Mike Hansen
New...Michigan Community College Leadership Institute: Embracing thereality that within 10 years, 80% of current community college CEOs plan to retire,a steering committee has been working with a consultant, Lead Star (who hasworked with Facebook and Google and many other private/public organizations) tolaunch the new Michigan Community College Leadership Academy. In order to beeligible for this prestigious 9-month cohort program, candidates must beoutstanding men and women, identified and nominated by theirpresident/chancellor as emerging leaders (department chair or director level,and aspire for the presidency). The inaugural cohort will launch on September2016. Please nominate your candidate(s) by April 1 by emailing Adriana Phelan([email protected]).
Reminder...MCCA Membership Survey: The MCCA has developed a survey instrument tomeasure Board sa sfac on with the Associa on. We invite members of the MCCA Boardof Directors (the president and trustee delegate from each college) to complete the surveyat https://www.surveymonkey.com/r/9ZXLLZF. We thank the Board in advance for your
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me in comple ng the survey by April 1.
Did You Know?
Source: Babson Survey Research Group (2016), 215 Online Report Card: TrackingOnline Education in the United States; and WICHE Coopera ve for Educa onalTechnologies (2016) WCET Distance Education Enrollment Report 2016.
State & Legislative Matters
Subcommi ees Review Budget Recommenda ons: Only two more commi ee hearingsare planned in both the House and Senate Subcommi ees on Community Colleges priorto their "decision‐making" mee ng where they will report their recommenda ons to thefull appropria ons commi ee, which is expected the last week of March. The House willhold a hearing on March 15 in Lansing on early/middle college programs, dualenrollment, transfer, and the Michigan New Jobs Training Program. The Senate will hold ahearing on the campus of Kirtland Community College on Friday, March 18 and willhearing tes mony from students at Kirtland and Alpena Community Colleges, and get achance to tour the mobile "Fab Lab" provided by North Central Michigan College.
Workgroup on Tax Capture & Revenue Genera on: On March 11, MCCA staff par cipatedin the first of several workgroups the administra on is convening to review and makerecommenda ons on the following aspects of Tax Increment Financing (TIF's): tax captureand spending boundaries; TIF plan approval process; county and other taxing jurisdic onsability to opt‐out; automa c ability to capture new millages; and ability to generaterevenue sources other than TIF. Future mee ngs will take place yet this spring.
Transfer of the Associate Degree Task Force: As reported last week, the task force aimedat improving full transfer of the associate degree has completed its work and submi edthe report to the Legislature. Although the task force has agreed that par cipa on in nextsteps will be voluntary, it is clear this issue remains cri cal to legislators, who have alreadyexpressed an interest in requiring a report on further progress by March 2017.
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Special Elec ons Fill Three Vacancies: The presiden al primary this week also served asthe general elec on for three House of Representa ve districts that had been vacant since2015. In the 75th House District, a por on of the City of Grand Rapids, Democrat DavidLaGrand beat Republican Blake Edmonds. In the 80th House District, which includesthree‐quarters of Allegan County, Republican Mary Whiteford beat Democrat DavidGernant. And in the 82nd House District, Lapeer County, Republican Gary Howell beatDemocrat Margaret Guerrero DeLuca. The three new Representa ves will likely join theircolleagues this coming week a er the elec on result is cer fied, and will serve par alterms, ending January 1, 2017.
Bills to Watch: A quick reference of all the bills relevant to community collegesintroduced in the 2015 Legislative Session (which carry over to the 2016 session)is available on the MCCA website.
National News
AACC Federal Legisla ve Update Webinar (March 31 at 3pm): Learn what you need toknow about this year's legisla ve and regulatory agenda including federal funding, thePell Grant program, Higher Educa on Act and Perkins CTE Act reauthoriza ons, newover me rules, Department of Educa on rulemakings, and more. Register here.
Challenge to Gainful Employment Regula ons Rejected: The Associa on of Private SectorColleges and Universi es (APSCU), which prevailed in its challenge of the first GainfulEmployment Rule of 2010, met a different fate regarding the suit it brought against ED's2014 Gainful Employment regula ons. The federal appellate court agreed with the rulingof the trial court denying APSCU's claim that the regula on was arbitrary and capricious.The court also upheld the rule's repor ng and disclosure requirements.
What is the impact on community colleges? According to AACC, the impact of thisruling on community colleges is negligible as all cer ficate programs subject to theGE metric are expected to pass and the disclosure and repor ng requirementshave been in place since the regula on was first promulgated.
New Educa on Secretary: On March 9, the Senate Commi ee on Health, Educa on,Labor, and Pensions voted to confirm current Ac ng Secretary John B. King, Jr. as USSecretary of Educa on. Prior to serving as Ac ng Secretary, King served as principal senioradvisor at the Department of Educa on, and also as chief execu ve officer of the StateEduca on Department and as president of the University of the State of New York.
MCCA Centers for Excellence News
Center for Student Success Update
Reminder...Register for the Guided Pathways Ins tute + Michigan Student SuccessNetwork Mee ng (April 21‐22 hosted by Washtenaw Community College): The two‐dayGuided Pathways Ins tute with all 23 par cipa ng colleges is at Washtenaw Community
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College on April 21‐22, 2016. The theme of this mee ng is "Serving UnderpreparedLearners in a Guided Pathways Context." Guided Pathways Colleges can register up to 6team members for one or both days of the mee ng. All other colleges may register up to 4team members for Friday only. Click here to register. Please contact Jenny Schankerwith any ques ons.
Encourage Registrars and IR staff to a end CEPI Data Repor ng Webinars: Pleaseencourage your staff to join the MCSS and the Center for Educa onal Performance andInforma on (CEPI) for a webinar focused on UIC collec on, STARR data collec on, and theMI School Data website. Administrators across colleges and universi es are responsible foraspects of data repor ng to CEPI. It is increasingly important for colleges to reportcomplete informa on to CEPI as they use data for statewide repor ng and metrics. Theagenda includes: (1) Reques ng Unique Iden fica on Codes at approximately 10‐10:45 or1‐1:45; (2) STARR Data Collec on Process at approximately 10:45‐11:30 or 1:45‐2:30; and(3) Using data on MISchoolData.org at approximately 11:30‐Noon or 2:30‐3:00. In order toregister, click on one of the dates available for the webinar: March 22 from 1-3pm, June 3
from10-12am, and July 19 from 1-3 pm. Contact Erica Orians with ques ons.
Michigan Colleges Online
Achieving the Dream Open Educa onal Resources (OER) Degree Ini a ve Applica on:This OER ini a ve aims to involve faculty in using open educa onal resources to redesigncourses and degree programs. The Community College Consor um for Open Educa onalResources (CCCOER) is a partner with Achieving the Dream on this Ini a ve. Between 20and 30 community colleges will be selected to par cipate in a three‐year effort toimplement OER Degree programs. Deadline is April 8. See the OER Degree Initiativepage or email ques ons to [email protected].
Webinar...Access from DAY ONE: How Openstax Free Textbooks Can Remove Barriers forYou and Your Students (March 15 from noon to 1 pm): OpenStax provides free,peer‐reviewed textbooks, which means students have immediate access ‐‐ no sign‐inrequired! OpenStax currently carries textbooks for Physics, Sociology, Biology, Anatomy &Physiology, Sta s cs, Math, Economics, Chemistry, History, and Psychology, and will bedeveloping addi onal books in math, science, and government over the next couple ofyears. Click here to register.
Webinar...How to create a successful free textbook ini a ve at your college (March 29from noon to 1 pm): Colleges and universi es across the United States are saving studentsmillions of dollars in textbook costs by adop ng Open Educa onal Resources (OER). Howare they accomplishing this? Click here to register.
Webinar...ReadSpeaker ‐ Cloud‐based Assis ve Technologies for Educa on (March 22from 2‐3 pm): ReadSpeaker provides a text‐to‐speech service that integrates directly intoyour LMS and will dynamically read out and highlight online content. Aligning with UDL,ADA and QM guidelines, ReadSpeaker enhances the learning experience for all studentsand is an assist for those who are for example dyslexic, ESL, learning disabled, ADHD,
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non‐tradi onals and poor readers. Click here to register.
2016 ITC Distance Educator Leadership Academy Now Accep ng Applica ons (July 21 ‐23, Ashville, NC): Incorpora ng hands‐on and scenario‐based experiences under theguidance of na onally‐recognized eLearning champions, the Academy will build on theAACC's six designated leadership competencies to expand leadership skills. Read moreinforma on and apply here.
Michigan New Jobs Training Program
MNJTP By The Numbers: ‐ Number of Projected New Jobs Supported by Exis ng MNJTP Agreements: 14,632 ‐ MNJTP Contracts to Date: 127 ‐ Par cipa ng Community Colleges: 19
Five community colleges are currently in the process of developing/finalizing MNJTPagreements with employers crea ng new jobs ($2.5 million in training funded by MNJTP).Ten colleges are ac ve in the queue and are considering whether they are moving forwardin developing a project.
Center for Global Ini a ves
Opportunity to Partner with Peruvian Automo ve Associa on (AAP): AAP is looking tosign an agreement with a U.S. educa onal ins tu on with a strong automo ve educa onal program. See the 2015-12-23 PROJECT INSTITUTE AAP 2015 for moreinforma on. To apply, please send your completed applica on to William Toerpeat [email protected]. Use this link to access the applica on: Peruvian Automotive Association Webinar Application.
Costa Rica/Community College Educa on Fair:The U.S. Commercial Service andEduca onUSA are organizing an educa on fair designed for U.S. community colleges.Par cipa ng colleges will network with students in their last two years of secondaryschool from over 80 private schools during the two day event. The fair will be on April20‐23, 2016. Deadline to register is March 18. Click here to find more details, a tenta vei nerary, and registra on instruc ons.
Corporate Cultural Exchange Program: Carol Stax Brown provided the PresidentsCommi ee with an update on the development of the Corporate Culture Exchange (CCX)program. This project‐based course, which will be offered through Michigan CollegesOnline, will provide students with a pla orm to work in cross‐cultural virtual teams totackle workplace challenges iden fied by global corporate partners. CCX will be alow‐cost, high impact vehicle to build global competencies. CCX is loosely based on aglobal business consul ng module offered through the UNC‐Greenville to advancedbusiness and MBA students. See http://x-culture.org/ for a short video on that program.Please contact Carol for further inquiries and comments ([email protected]).
Community Colleges in the News
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Jackson College President Dan Phelan quoted on The Wall Street Journal article onColleges Lock Horns Over Nursing Programs. Also, Phelan's new book Unrelen ng Change,Innova on, and Risk: Forging the Next Genera on of Community Colleges hit the standslast week.
Mid Michigan Community College was selected as one of twenty community collegesna onally for the 'Right Signals' creden aling ini a ve. The colleges will work together toiden fy and develop a model for recognizable creden aling to serve students, collegesand employers na onally (see Community College Daily article).
Upcoming Events
Please click here to see all upcoming 2016 MCCA events.
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Northwestern Michigan College
Board of Trustees
Building and Site Committee Minutes March 9, 2016
Founders Hall, 1701 E. Front Street, Traverse City, MI
The meeting was called to order by Chair Ross Childs at 8:30 a.m.
Members Present: Ross Childs, Chris Bott, Kennard Weaver
Others Present: President Timothy Nelson, Vicki Cook, Holly Gorton
Vicki Cook, Vice President of Finance and Administration, reviewed financing options for the
upcoming capital outlay projects recommended by NMC’s current bond counsel Stauder, Barch
and Associates.
Option 1 would take advantage of the current low interest rate and include the housing, new
library, museum expansion and infrastructure projects. The West Hall project will not move
forward until 2017, upon completion of the state funding request decision process. Option 2
would only finance the housing and museum expansion projects in 2016, with plans to finance
the library, infrastructure and West Hall projects in 2017 at an anticipated higher interest rate.
Option 1 would provide an estimated savings on yearly payment of approximately $55,000 due
to the lower interest rate currently available.
Following discussion, Ross Childs made a motion, supported by Chris Bott, to take a
recommendation to the full Board at their March 21, 2016, meeting to approve the first option to
finance the housing, museum, new library and infrastructure upgrades in 2016, holding off on the
West Hall project until 2017.
There was a brief discussion pertaining to bond counsel firms and Vice President Cook will
research other potential firms for legal services and future financing. The firm of Public
Financial Management (formerly Stauder, Barch and Associates) has been researched and used
by NMC in the past. Administration will also explore potential federal grants that may be
available for veteran housing, per suggestion made.
The meeting adjourned at 9:00 a.m.
Recorded by Holly Gorton, Executive Assistant to the President and Board of Trustees
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To: The NMC Board of Trustees and President Tim Nelson
From: Diana Fairbanks, Executive Director of Public Relations
Date: March 14, 2016
Subject: NMC Barbecue Report The sixty-first annual NMC Barbecue will be held on Sunday, May 22, 2016 from 11 a.m. to 5 p.m. at the main campus. Tickets prices are $6 in advance and $8 day of, and may be purchased now online at nmc.edu/bbq. Tickets will also be available starting in early April at most local financial institutions, from members of the BBQ Board, at the Dennos Museum Center, the Traverse City Area Chamber of Commerce, both Oleson’s Food Store locations and also through sales by representatives of this year’s funded projects. This year the BBQ Board has approved more than $41,000 in funds towards NMC projects including a G1000 Basic Aviation Training Device, playground equipment for the apartments and daycare center, equipment and library resources for the new Surgical Technology Program, support for the Dennos Museum’s Art Banner Project, Scholarship Open sponsorship, a new drive for the observatory telescope, and shipwreck research support in Northport Harbor for Nautical Archaeology. Returning attractions from last year include the car show and the Tae Kwon Do Club demonstrations. New this year will be the addition of Aikido and Judo Club demonstrations to the Tae Kwon Do demonstrations. Featured this year will be a special expanded dedication to veterans commemorating the 50th anniversary of the Vietnam War. The Veterans Coalition will assist in this veterans-focus including a presence in the opening ceremony, and an expanded Veterans Tent with memorabilia. As always, there will be games for the kids, a chance to have your photo taken with Chip the faux buffalo, exhibits from NMC programs, free admission to the Dennos Museum, open classroom exhibits, and of course great food, continuous entertainment and much, much more. See you at the NMC Barbecue: Sunday, May 22!
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1701 East Front Street, Traverse City, MI 49686 231-995-1021
MEMO
Resource Development
To: The Board of Trustees and President Timothy J. Nelson
From: Rebecca Teahen, Executive Director for Resource Development
Date: March 17, 2016
Subject: Foundation Update for March 2016
Fund Raising – a “check” on FY16 goals
To date, $191,091 has been raised for the Annual Fund; our goal is $250,000. We are up
14.6% in revenue and up nearly 12% in number of donors over FY15.
In June, 2015, the overall fundraising goal for FY16 was set at 1,500,000 excluding events
and bequests. At the February, 2016 Foundation Board meeting, that goal was adjusted to
4,525,000 including cash, new pledges, and planned gifts. The inclusion of planned gifts is
an important difference in the way our progress toward goal will be calculated from this
point forward.
Total dollars raised to date (FY16):
$3,919,135 Total received (including the Annual Fund and new pledges)
+ $1,459 Cash received through bequest gifts
= $3,920,594 Raised toward new FY16 goal of $4,525,000
+ $221,546
$4,142,140
Gross event revenue vs goal of $250,000
Total of gifts + events
Foundation Initiatives
Staff and Foundation board committees are working through review and revision of the
Foundation’s policies.
The annual Taste of Success event to benefit the Great Lakes Culinary Institute was a great
success. More than 300 guests attended the event to raise nearly $90,000 was raised to
support student scholarships and the culinary program.
Meetings and Events for your calendars:
Foundation Executive Committee meeting – Thurs., 4/7/16 at 8:00 am, Founders Hall
Foundation Finance & Audit Committee – Wed., 4/22/16 at 7:30 am, Founders Hall.
Foundation Board meeting – Wed., 4/27/16 at 7:30 am (breakfast at 7:00), Hagerty Center.
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MCCA WEEKLY BOARD UPDATE
[Report #314 | March 14, 2016]
FROM YOUR ASSOCIATION PRESIDENT... It was great to see so many of you at the MCCA Spring Board meeting at Washtenaw Community College last week. A special thanks to President Rose Bellanca, and the Washtenaw Community College Board of Trustees for providing such a wonderful venue, great food, and informative entertainment. For those who were not able to attend, we will be sending out the slide deck from our keynote speaker, Dr. Peter Bahr this week. Have a great week, everyone. -- Mike Hansen
New...Michigan Community College Leadership Institute: Embracing the reality that within 10 years, 80% of current community college CEOs plan to retire, a steering committee has been working with a consultant, Lead Star (who has worked with Facebook and Google and many other private/public organizations) to launch the new Michigan Community College Leadership Academy. In order to be eligible for this prestigious 9-month cohort program, candidates must be outstanding men and women, identified and nominated by their president/chancellor as emerging leaders (department chair or director level, and aspire for the presidency). The inaugural cohort will launch on September 2016. Please nominate your candidate(s) by April 1 by emailing Adriana Phelan ([email protected]).
Reminder...MCCA Membership Survey: The MCCA has developed a survey instrument to measure Board satisfaction with the Association. We invite members of the MCCA Board of Directors (the president and trustee delegate from each college) to complete the survey at https://www.surveymonkey.com/r/9ZXLLZF. We thank the Board in advance for your time in completing the survey by April 1.
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Did You Know?
Source: Babson Survey Research Group (2016), 215 Online Report Card: Tracking Online Education in the United States; and WICHE Cooperative for Educational Technologies (2016) WCET Distance Education Enrollment Report 2016.
State & Legislative Matters
Subcommittees Review Budget Recommendations: Only two more committee hearings are planned in both the House and Senate Subcommittees on Community Colleges prior to their "decision-making" meeting where they will report their recommendations to the full appropriations committee, which is expected the last week of March. The House will hold a hearing on March 15 in Lansing on early/middle college programs, dual enrollment, transfer, and the Michigan New Jobs Training Program. The Senate will hold a hearing on the campus of Kirtland Community College on Friday, March 18 and will hearing testimony from students at Kirtland and Alpena Community Colleges, and get a chance to tour the mobile "Fab Lab" provided by North Central Michigan College.
Workgroup on Tax Capture & Revenue Generation: On March 11, MCCA staff participated in the first of several workgroups the administration is convening to review and make recommendations on the following aspects of Tax Increment Financing (TIF's): tax capture and spending boundaries; TIF plan approval process; county and other taxing jurisdictions ability to opt-out; automatic ability to capture new millages; and ability to generate revenue sources other than TIF. Future meetings will take place yet this spring.
Transfer of the Associate Degree Task Force: As reported last week, the task force aimed at improving full transfer of the associate degree has completed its work and submitted the report to the Legislature. Although the task force has agreed that participation in next steps will be voluntary, it is clear this issue remains critical to legislators, who have already expressed an interest in requiring a report on further progress by March 2017.
Special Elections Fill Three Vacancies: The presidential primary this week also served as the general election for three House of Representative districts that had been vacant since 2015. In the 75th House District, a portion of the City of Grand Rapids, Democrat David LaGrand beat Republican Blake Edmonds. In the 80th House District, which includes three-quarters of Allegan County, Republican Mary
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Whiteford beat Democrat David Gernant. And in the 82nd House District, Lapeer County, Republican Gary Howell beat Democrat Margaret Guerrero DeLuca. The three new Representatives will likely join their colleagues this coming week after the election result is certified, and will serve partial terms, ending January 1, 2017.
Bills to Watch: A quick reference of all the bills relevant to community colleges introduced in the 2015 Legislative Session (which carry over to the 2016 session) is available on the MCCA website.
National News
AACC Federal Legislative Update Webinar (March 31 at 3pm): Learn what you need to know about this year's legislative and regulatory agenda including federal funding, the Pell Grant program, Higher Education Act and Perkins CTE Act reauthorizations, new overtime rules, Department of Education rulemakings, and more. Register here.
Challenge to Gainful Employment Regulations Rejected: The Association of Private Sector Colleges and Universities (APSCU), which prevailed in its challenge of the first Gainful Employment Rule of 2010, met a different fate regarding the suit it brought against ED's 2014 Gainful Employment regulations. The federal appellate court agreed with the ruling of the trial court denying APSCU's claim that the regulation was arbitrary and capricious. The court also upheld the rule's reporting and disclosure requirements. What is the impact on community colleges? According to AACC, the impact of this ruling on community colleges is negligible as all certificate programs subject to the GE metric are expected to pass and the disclosure and reporting requirements have been in place since the regulation was first promulgated.
New Education Secretary: On March 9, the Senate Committee on Health, Education, Labor, and Pensions voted to confirm current Acting Secretary John B. King, Jr. as US Secretary of Education. Prior to serving as Acting Secretary, King served as principal senior advisor at the Department of Education, and also as chief executive officer of the State Education Department and as president of the University of the State of New York.
MCCA Centers for Excellence News
Center for Student Success Update
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Reminder...Register for the Guided Pathways Institute + Michigan Student Success Network Meeting (April 21-22 hosted by Washtenaw Community College): The two-day Guided Pathways Institute with all 23 participating colleges is at Washtenaw Community College on April 21-22, 2016. The theme of this meeting is "Serving Underprepared Learners in a Guided Pathways Context." Guided Pathways Colleges can register up to 6 team members for one or both days of the meeting. All other colleges may register up to 4 team members for Friday only. Click here to register. Please contact Jenny Schanker with any questions.
Encourage Registrars and IR staff to attend CEPI Data Reporting Webinars: Please encourage your staff to join the MCSS and the Center for Educational Performance and Information (CEPI) for a webinar focused on UIC collection, STARR data collection, and the MI School Data website. Administrators across colleges and universities are responsible for aspects of data reporting to CEPI. It is increasingly important for colleges to report complete information to CEPI as they use data for statewide reporting and metrics. The agenda includes: (1) Requesting Unique Identification Codes at approximately 10-10:45 or 1-1:45; (2) STARR Data Collection Process at approximately 10:45-11:30 or 1:45-2:30; and (3) Using data on MISchoolData.org at approximately 11:30-Noon or 2:30-3:00. In order to register, click on one of the dates available for the webinar: March 22 from 1-3pm, June 3
from10-12am, and July 19 from 1-3 pm. Contact Erica Orians with questions.
Michigan Colleges Online
Achieving the Dream Open Educational Resources (OER) Degree Initiative Application: This OER initiative aims to involve faculty in using open educational resources to redesign courses and degree programs. The Community College Consortium for Open Educational Resources (CCCOER) is a partner with Achieving the Dream on this Initiative. Between 20 and 30 community colleges will be selected to participate in a three-year effort to implement OER Degree programs. Deadline is April 8. See the OER Degree Initiative page or email questions to [email protected].
Webinar...Access from DAY ONE: How Openstax Free Textbooks Can Remove Barriers for You and Your Students (March 15 from noon to 1 pm): OpenStax provides free, peer-reviewed textbooks, which means students have immediate access -- no sign-in required! OpenStax currently carries textbooks for Physics, Sociology, Biology, Anatomy & Physiology, Statistics, Math, Economics, Chemistry, History, and Psychology, and will be developing additional books in math, science, and government over the next couple of years. Click here to register.
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Webinar...How to create a successful free textbook initiative at your college (March 29 from noon to 1 pm): Colleges and universities across the United States are saving students millions of dollars in textbook costs by adopting Open Educational Resources (OER). How are they accomplishing this? Click here to register.
Webinar...ReadSpeaker - Cloud-based Assistive Technologies for Education (March 22 from 2-3 pm): ReadSpeaker provides a text-to-speech service that integrates directly into your LMS and will dynamically read out and highlight online content. Aligning with UDL, ADA and QM guidelines, ReadSpeaker enhances the learning experience for all students and is an assist for those who are for example dyslexic, ESL, learning disabled, ADHD, non-traditionals and poor readers. Click here to register.
2016 ITC Distance Educator Leadership Academy Now Accepting Applications (July 21 - 23, Ashville, NC): Incorporating hands-on and scenario-based experiences under the guidance of nationally-recognized eLearning champions, the Academy will build on the AACC's six designated leadership competencies to expand leadership skills. Read more information and apply here.
Michigan New Jobs Training Program
MNJTP By The Numbers: - Number of Projected New Jobs Supported by Existing MNJTP Agreements: 14,632 - MNJTP Contracts to Date: 127 - Participating Community Colleges: 19
Five community colleges are currently in the process of developing/finalizing MNJTP agreements with employers creating new jobs ($2.5 million in training funded by MNJTP). Ten colleges are active in the queue and are considering whether they are moving forward in developing a project.
Center for Global Initiatives
Opportunity to Partner with Peruvian Automotive Association (AAP): AAP is looking to sign an agreement with a U.S. educational institution with a strong automotive educational program. See the 2015-12-23 PROJECT INSTITUTE AAP 2015 for more information. To apply, please send your completed application to
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William Toerpe at [email protected]. Use this link to access the application: Peruvian Automotive Association Webinar Application.
Costa Rica/Community College Education Fair:The U.S. Commercial Service and EducationUSA are organizing an education fair designed for U.S. community colleges. Participating colleges will network with students in their last two years of secondary school from over 80 private schools during the two day event. The fair will be on April 20-23, 2016. Deadline to register is March 18. Click here to find more details, a tentative itinerary, and registration instructions.
Corporate Cultural Exchange Program: Carol Stax Brown provided the Presidents Committee with an update on the development of the Corporate Culture Exchange (CCX) program. This project-based course, which will be offered through Michigan Colleges Online, will provide students with a platform to work in cross-cultural virtual teams to tackle workplace challenges identified by global corporate partners. CCX will be a low-cost, high impact vehicle to build global competencies. CCX is loosely based on a global business consulting module offered through the UNC-Greenville to advanced business and MBA students. See http://x-culture.org/ for a short video on that program. Please contact Carol for further inquiries and comments ([email protected]).
Community Colleges in the News
Jackson College President Dan Phelan quoted on The Wall Street Journal article on Colleges Lock Horns Over Nursing Programs. Also, Phelan's new book Unrelenting Change, Innovation, and Risk: Forging the Next Generation of Community Colleges hit the stands last week.
Mid Michigan Community College was selected as one of twenty community colleges nationally for the 'Right Signals' credentialing initiative. The colleges will work together to identify and develop a model for recognizable credentialing to serve students, colleges and employers nationally (see Community College Daily article).
Upcoming Events
Please click here to see all upcoming 2016 MCCA events.
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NORTHWESTERN MICHIGAN COLLEGE
BOARD OF TRUSTEES
MINUTES
Monday, February 22, 2016
at Oleson Center, 1881 College Drive
CALL TO ORDER—Chair Kennard R. Weaver called the regular meeting to order at 5:30 p.m.
ROLL CALL Trustees present: Chris M. Bott, Robert T. Brick, K. Ross Childs, Marilyn Gordon Dresser (arrived
at 5:50 pm), Kennard R. Weaver
Trustees absent: Douglas S. Bishop, Steven G. Rawlings
Also present: President Timothy J. Nelson, Jerry Achenbach, Michael Anderson, Lisa
Blackford, Shawn Burks, Betsy Coffia, Alison Collins, Marguerite Cotto, Susan
DeCamillis, Jessica Dewitt, Jerry Dobek, Stephen Drake, Brandon Everest, Diana
Fairbanks, Lynn Geiger, Holly Gorton, John Hagen, Jo Hendrix, Mike Jacobson,
Tony Jenkins, Keith Kelly, Carol Ann Laverne, Mark Liebling, Deirdre Mahoney,
Mella McCormick, Todd Neibauer, Ryan Nugent, Peter Payette, Paul Perry, Deb
Pharo, Jean Rokos, Stephen Siciliano, Mike Skarupinski, Barbara Smith, Cheryl
Sullivan, Mike Surgalski, Lisa Thomas, Mike Torre, Joe VanderMeulen, Linda
Walter, Beckie Wooters
REVIEW OF AGENDA—The agenda was accepted as presented.
REPORTS
Program Focus—Alumni Update—Betsy Coffia, Director of Alumni Relations, presented progress
report on the NMC Alumni Relations Program, which was implemented 10½ months ago to build
NMC pride, support student success, provide alumni benefits, grow database infrastructure and
integrity, and encourage alumni giving. Coffia shared about the 100+ visits with NMC alumni,
including Robert Tanis, son of NMC’s first president Preston Tanis. She also spoke about current
and prospective student outreach initiatives, and the alumni steering committee that meets bi-
monthly. Coffia addressed questions of the Board, who expressed their appreciation of her progress
with the program.
Enrollment Report—Vice President Stephen Siciliano referenced the enrollment report provided
with meeting materials, indicating a 7% enrollment decline for spring semester compared with
spring 2015, placing NMC in the middle of community colleges in the state with regard to
enrollment change statistics. Siciliano shared that NMC Admissions is offering a series of student
events called Explore Your Major for prospective students exploring career options within specific
academic areas. In response to question, Vice President Siciliano explained the need for increased
housing despite the declining enrollment.
Financial Report—Vicki Cook, Vice President of Finance and Administration, provided the
monthly summary report for the General Fund as of January 31, 2016. She noted that year end
projections show a negative balance at this time, but many expenses are soon coming to an end for
the year. There were no questions from the Board.
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Northwestern Michigan College February 22, 2016
2
Foundation Report—Kennard, Board Representative, referenced the written Foundation Update for
February included in the meeting materials, and asked Rebecca Teahen, Executive Director for
Resource Development and Foundation, to provide oral report. She noted the current status of
fundraising activity, that Foundation gift acceptance policies were being reviewed, and that
nominations are being accepted for the 2016 Outstanding Alumni award. Teahen thanked everyone
for the successful Taste of Success held February 19.
Legislative Issues Report/President’s Update—President Timothy Nelson shared that NMC’s
capital outlay project request to the state had be prioritized at number 3 and included in the
Governor’s budget. He then explained the remaining legislative approval process of the state budget
and capital outlay projects, along with the Governor’s budget process. Nelson also noted the
increased number of community colleges with on-campus housing, which has led to increased
enrollment. President Nelson asked trustees to thank our legislators and continue encouragement of
NMC’s capital outlay project throughout the approval process, and reminded the Board of the
upcoming Legislative Roundtable on February 26. Nelson noted both past and upcoming federal
and state legislative visits and shared that the state superintendent has a goal to make Michigan a top
educational state.
UPDATES
President’s Update—President Timothy Nelson updated the Board on the current Pell Grant
experiment including high school students, and the increasing pressure at both national and state
level to generate more college credit in the high school setting.
Board Chair Update—Chair Kennard Weaver reviewed the process of selecting a capital outlay
legislative consultant and the success of that relationship.
PUBLIC INPUT—There was public input offered by Janet Lively, Deirdre Mahoney, Steven
Drake, Jessica Dewitt, Michael Emerson, Jerry Dobek, Mella McCormick, Nancy Gray, Mike
Skarupinski, Mike Torre, Ryan Nugent, Lisa Blackford, Brandon Everest, Debra Pharo, Tony
Jenkins, and Barbara Smith.
DISCUSSION ITEMS—None
CONSENT ITEMS—On a motion by Chris Bott, supported by Ross Childs, the following items
were approved by a unanimous vote as a group without discussion:
Minutes of the January 25, 2016, regular and closed meetings
Minutes of the February 1, 2016, Board retreat
ACTION ITEMS
Social Host Responsibility Month—Bob Brick made a motion, supported by Chris Bott, to adopt a
resolution to proclaim that April 2016 is Social Host Responsibility Month. The motion passed with
a unanimous vote.
Accounting Certificate Program—Chris Bott made a motion, supported by Bob Brick, to approve
a new Certificate of Achievement Level II in Accounting as presented, effective fall semester 2016.
The motion passed with a unanimous vote.
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Northwestern Michigan College February 22, 2016
3
Firewall Replacement—Ross Childs made a motion, supported by Bob Brick, to authorize
administration to enter into a contract with Secant Technologies for the purchase and installation of a
replacement firewall system in the amount of $77,843.00, plus a 10% contingency, for a total project
budget of $85,628.00, to be funded from the Technology Plant Fund. The motion passed with a
unanimous vote.
Owner’s Representative Contract—Chris Bott made a motion, supported by Bob Brick, to
authorize administration to enter into a contract with Plant Moran CRESA in the amount of
$182,000 as Owner’s Representative to support the Dennos Museum addition and student residential
housing project, to be funded from the Auxiliary fund. The motion passed with a unanimous vote.
Closed session—Ross Childs made a motion, supported by Chris Bott, that the Board convene in
closed session as permitted by Section 8(c) of the Open Meetings Act, MCL 15.268(c), to discuss
strategy connected with the negotiation of collective bargaining agreements between the College and
the Michigan Education Association. The motion passed with the following roll call vote: Yes—
Marilyn Dresser, Ross Childs, Bob Brick, Chris Bott, Kennard Weaver; No—none; and the Board
went into closed session at 6:54 p.m.
Reconvene Regular Meeting—Bob Brick made a motion, supported by Chris Bott, to adjourn the
closed session and reconvene the open session. The motion passed with the following roll call vote:
Yes—Chris Bott, Ross Childs, Bob Brick, Marilyn Dresser, Kennard Weaver; No—none; and the
regular open session reconvened at 7:58 p.m.
REVIEW OF FOLLOW-UP REQUESTS—Confirmed requests made by the Board that require
administrative follow-up for information to be provided to the Board at a later date.
ADJOURNMENT—The meeting adjourned at 8:00 p.m.
Recorded by Holly Gorton, Executive Assistant to the President and Board of Trustees.
SIGNED
Kennard R. Weaver, Chair
ATTESTED
K. Ross Childs, Secretary
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____________________________________________________________________________
To: Timothy J. Nelson, President
Vicki Cook, Vice President of Finance and Administration
From: Cheryl Sullivan, Controller
Date: March 8, 2016
Subject: Renewal of Fifth Third Line-of-Credit
Recommendation
Authorize the renewal of the Fifth Third Line-of-Credit.
Background
Northwestern Michigan College has a $2 million dollar line-of-credit with Fifth Third bank. To
date, the College has not drawn upon the line of credit. Fifth Third requires an annual renewal by
the Board of Trustees. The College has had a line-of-credit with Fifth Third bank since 2007. We
have never drawn on the account.
MEMO
Administrative Services
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____________________________________________________________________________
To: Tim Nelson
From: Vicki Cook, Vice President of Finance and Administration
Date: March 14, 2016
Subject: Sodexo Facilities Management Contract – Three Year Extension
Board Authorization Requested
Authorize a three year contract extension with Sodexo for facility management services in the
amount of $528,064. The contract extension would be effective March 21, 2016 and run until
February 28, 2019. The funding source for this contract is contained in the appropriate annual
E&G expenses budgeted within Campus Services.
Background/Scope
An RFP with a scope of this magnitude requires a significant amount of time to conduct. NMC
will have two large construction projects this year. While this is occurring it is important to
maintain the current management structure to answer question and make recommendations based
on current operations.
Additionally, Sodexo has maintained reasonable contract increases in the past and kept the
contract flat for the last year. Therefore, this recommendation is presented to the Board with a
request to approve this contract for three additional years.
The overall performance of the Sodexo personnel has been outstanding and resulted in an overall
improvement in the quality of the facilities at the College. On a cost versus services provided and
benefits received basis, this contract is value added to NMC. The contract does contain a
provision for cancellation by either party, at any time, upon 60 days written notice.
Recommendation
Board authorization request for a three year contract extension with Sodexo for facility
management services in the amount of $528,064.
Funding Source
The funding source for this contract is contained in the General Fund.
MEMO
Administrative Services
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Board of Trustees Northwestern Michigan College
RESOLUTION AUTHORIZING ISSUANCE AND SALE OF BONDS
A RESOLUTION TO PROVIDE FOR:
Issuance of up to $20,890,000 of Bonds for capital improvements to College facilities;
Bonds to be a first budget obligation of College, secured by College’s full faith and credit;
Vice President of Finance and Administration authorized to sell Bonds to the lowest bidder without further Board Resolution.
WHEREAS, Northwestern Michigan College (the “College”) is a community college district operating under the Community College Act of 1966, Act 331, Public Acts of Michigan, 1966, as amended (“Act 331”); and
WHEREAS, Section 122(b) of Act 331 authorizes the board of a community college district to issue bonds to pay for various capital improvements to be made or acquired with regard to community college facilities, subject to the provisions of the Revised Municipal Finance Act, Act 34, Public Acts of Michigan, 2001, as amended (“Act 34”); and
WHEREAS, the College intends to acquire and construct various capital improvements to College facilities and sites including, but not limited to, construction of student housing, an addition to the Dennos Museum Center, expansion of West Hall for library services, and general capital improvement projects including energy savings projects, security upgrades, and HVAC upgrades at the Great Lakes Campus, the University Center Campus and the Parsons-Stulen Building (collectively, the “Capital Improvements”); and
WHEREAS, the College determines to authorize bonds in an aggregate amount not-to-exceed $20,890,000 (the “Bonds”) to pay for all or a portion of the costs of the Capital Improvements; and
WHEREAS, the Board of Trustees wishes to authorize the Vice President of Finance and Administration of the College (the “Authorized Officer”) to sell and deliver and receive payment for the Bonds without the necessity of the Board of Trustees taking further action.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. Community College Facilities Bonds. The College shall issue its Bonds in the aggregate principal amount of not to exceed Twenty Million Eight Hundred Ninety Thousand Dollars ($20,890,000) for the purpose of defraying costs of the Capital Improvements, including capitalized interest in an amount to be determined at the time of sale by the Authorized Officer and payment of legal, engineering, financial and other expenses incident thereto. The Bonds
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shall be designated as the 2016 COMMUNITY COLLEGE FACILITIES BONDS (General Obligation - Limited Tax). The aggregate principal amount shall be determined by the Authorized Officer at the time of sale thereof.
2. Bond Details. The Bonds shall be registered as to principal and interest and shall be in the denomination of $5,000 or integral multiples of $5,000 not exceeding for each maturity the maximum principal amount of such maturity, dated as of the date of delivery thereof or such other date as may be determined at the time of sale of the Bonds, and numbered as determined by the Transfer Agent (defined below).
The Bonds shall mature as serial bonds or term bonds on the dates and in the amounts as shall be determined at the time of sale of the Bonds, provided, however, that the final maturity shall not be due later than 22 years after the date of delivery of the Bonds. The Bonds shall bear interest at a rate or rates to be determined at the time of sale of the Bonds, payable on such initial interest payment date as shall be determined at the time of sale of the Bonds, and semi-annually thereafter on the dates determined at the time of sale of the Bonds.
The Bonds may be issued in book-entry-only form through The Depository Trust Company in New York, New York (“DTC”), and the Authorized Officer is authorized to execute such custodial or other agreement with DTC as may be necessary to accomplish the issuance of the Bonds in book-entry-only form and to make such changes in the form of the Bonds within the parameters of this Resolution as may be required to accomplish the foregoing. As long as Bonds are held in book-entry form by DTC, payment shall be made in the manner prescribed by DTC. Otherwise, the principal of the Bonds shall be payable upon presentation and surrender at such bank or trust company to be designated as registrar and transfer agent for the Bonds (the “Transfer Agent”) by the Authorized Officer, and interest shall be paid, by check drawn on the Transfer Agent mailed to the registered owner at the registered address, as shown on the registration books of the College maintained by the Transfer Agent, or other method of payment to the registered owner which conforms with market practice at the time of payment. Interest shall be payable to the registered owner of record as of the fifteenth day of the month prior to the payment date for each interest payment. The date of determination of the registered owner for purposes of payment of interest as provided in this paragraph may be changed by the College to conform to market practice in the future. Notwithstanding the foregoing, if the Bonds are held in book-entry form by DTC, payment shall be made in the manner prescribed by DTC.
The Authorized Officer is authorized to execute an agreement with the Transfer Agent on behalf of the College. The College may designate a new Transfer Agent by notice mailed to the registered owner of each of the Bonds at such time outstanding not less than sixty (60) days prior to an interest payment date.
The Bonds shall be subject to optional redemption and, if term bonds are issued, mandatory redemption, prior to maturity, as determined at the time of sale of the Bonds. If the College calls Bonds for redemption prior to maturity then official notice of redemption shall be given by the Transfer Agent on behalf of the College, unless waived by any registered owner of Bonds to be redeemed, and shall conform to the requirements set forth in the Bond being redeemed. Such notice shall be dated and shall contain at a minimum the following information: original issue date; maturity dates; interest rates; CUSIP or certificate numbers (and in the case
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of partial redemption) the portion to be called; the redemption date; the redemption price or premium; the place where Bonds called for redemption are to be surrendered for payment; and that interest on Bonds or portions thereof called for redemption shall cease to accrue from and after the redemption date. In addition, further notice shall be given by the Transfer Agent in such manner as may be required or suggested by regulations or market practice at the applicable time, but no defect in such further notice nor any failure to give all or any portion of such further notice shall in any manner defeat the effectiveness of a call for redemption if notice thereof is given as prescribed herein.
The Bonds shall be signed by the manual or facsimile signatures of the Chair and Secretary of the Board of Trustees of the College. No Bond authorized under this resolution shall be valid until authenticated by an authorized representative of the Transfer Agent, provided that if at least one of the signatures on the Bonds is a manual signature then the Bonds do not need to be authenticated if authentication is not required by the purchaser of the Bonds. The Bonds shall be delivered to the Transfer Agent for authentication and be delivered by the Transfer Agent to the purchaser in accordance with instructions from the Authorized Officer upon payment of the purchase price for the Bonds in accordance with the purchase contract for the Bonds. If the Bonds are not held in book-entry form then executed blank bonds for registration and issuance to transferees shall, as necessary, be delivered to the Transfer Agent for safekeeping.
3. Full Faith and Credit Pledge for Payment of Bonds. The College expressly and irrevocably pledges its full faith and credit for the prompt and timely payment of the principal of and interest on the Bonds, and the Bonds shall be payable, as a first budget obligation, from the general fund of the College. The College shall levy annually ad valorem taxes on all the taxable property in the community college district of the College in the amount which, taking into consideration estimated delinquencies in tax collections, shall be fully sufficient to pay the principal and interest on the Bonds, provided, however, that if at the time of making any such tax levy there shall be other legally available funds for the payment of principal of and interest on the Bonds, including student housing rental revenue, then credit therefor may be taken against the levy for payment of the Bonds. The levy shall be subject to constitutional and statutory tax rate limitations.
4. Bond Form. The Bonds shall be substantially in the following form with such changes as may be necessary to conform the Bonds to the final terms of sale:
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[FORM OF BOND TO BE COMPLETED AFTER BOND SALE]
UNITED STATES OF AMERICA STATE OF MICHIGAN
COUNTY OF GRAND TRAVERSE
NORTHWESTERN MICHIGAN COLLEGE 2016 COMMUNITY COLLEGE FACILITIES BOND
(General Obligation - Limited Tax)
Interest Rate Date of Maturity Date of Original Issue CUSIP
Registered Owner:
Principal Amount:
NORTHWESTERN MICHIGAN COLLEGE, State of Michigan (the “College”) acknowledges itself to owe and for value received hereby promises to pay to the Registered Owner specified above, or registered assigns, the Principal Amount specified above, in lawful money of the United States of America, on the Date of Maturity specified above, unless prepaid prior thereto as hereinafter provided, with interest thereon (computed on the basis of a 360-day year consisting of twelve 30-day months) from the Date of Original Issue specified above or such later date to which interest has been paid, until paid, at the Interest Rate per annum specified above, first payable on [date] and semiannually thereafter. Principal of this bond is payable at [Transfer Agent], or such other transfer agent as the College may hereafter designate by notice mailed to the registered owner hereof not less than sixty (60) days prior to any interest payment date (the “Transfer Agent”). Interest on this bond is payable by check or draft mailed by the Transfer Agent to the person or entity who or which is as of the 15th day of the month prior to each interest payment date, the registered owner, at the registered address.
This bond is one of a series of bonds of even Date of Original Issue, aggregating the principal sum of $[principal amount] for the purpose of acquiring and constructing various capital improvements. This bond was issued under and in pursuance of the provisions of Act 331, Public Acts of Michigan, 1966, as amended, and certain resolutions of the Board of Trustees of the College.
The Bonds are a full faith and credit limited tax obligation of the College, and for the prompt payment of the principal and interest thereon, the College has pledged that it shall annually, as a first budget obligation, levy sufficient ad valorem taxes on all taxable property in the community college district of the College subject to applicable constitutional and statutory limitations.
Bonds of this issue maturing on or prior to [date] are not subject to redemption prior to maturity.
Bonds or portions of bonds in multiples of $5,000 of this issue maturing on or after [date] shall be subject to redemption prior to maturity without a premium, at the option of the College,
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in such order as the College shall determine and within any maturity by lot, on any date on or after [date] at par plus accrued interest to the date fixed for redemption.
[MANDATORY REDEMPTION]
[The bonds maturing [date] and [date] (the “Term Bonds”) are subject to mandatory sinking fund redemption by lot prior to maturity on [date] in the years and amounts set forth below, at a price equal to 100% of the principal amount to be redeemed, plus accrued interest to the date of redemption.
Term Bonds due [date] Term Bonds due [date]
Redemption Dates Principal Amounts
Redemption Dates
Principal Amounts
[date] [amount] [date] [amount][date] [amount] [date] [amount]
[The principal amount of Term Bonds to be redeemed on the dates set forth above shall be reduced, in the order determined by the College, by the principal amount of Term Bonds of the same maturity which have been previously redeemed (other than as a result of a previous mandatory redemption requirement), or purchased or acquired by the College and delivered to the Transfer Agent for cancellation; provided, that each such Term Bond has not previously been applied as a credit against any mandatory redemption obligation.]
If less than the full amount of an outstanding bond is called for redemption, the Transfer Agent upon presentation of the bond called in part for redemption shall register, authenticate and deliver to the registered owner a new bond in the principal amount of the portion of the original bond not called for redemption.
Notice of redemption shall be given to each registered owner of bonds or portions thereof to be redeemed by mailing such notice not less than thirty (30) days [and not more than sixty (60) days] prior to the date fixed for redemption to the registered owner at the address of the registered owner as shown on the registration books of the College. Bonds shall be called for redemption in multiples of $5,000, and bonds of denominations of more than $5,000 shall be treated as representing the number of bonds obtained by dividing the denomination of the bonds by $5,000, and such bonds may be redeemed in part. The notice of redemption for bonds redeemed in part shall state that, upon surrender of the bond to be redeemed, a new bond or bonds in the same aggregate principal amount equal to the unredeemed portion of the bonds surrendered shall be issued to the registered owner thereof with the same interest rate and maturity. No further interest on bonds or portions of bonds called for redemption shall accrue after the date fixed for redemption, whether the bonds have been presented for redemption or not, provided funds are on hand with the Transfer Agent to redeem the bonds or portion thereof.
Any bond may be transferred by the person in whose name it is registered, in person or by his duly authorized attorney or legal representative, upon surrender of the bond to the Transfer Agent for cancellation, together with a duly executed written instrument of transfer in a form approved by the Transfer Agent. Whenever any bond is surrendered for transfer, the Transfer Agent shall authenticate and deliver a new bond or bonds, in like aggregate principal
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amount, interest rate and maturity. The Transfer Agent shall require the bondholder requesting the transfer to pay any tax or other governmental charge required to be paid with respect to the transfer. The Transfer Agent shall not be required to issue, register the transfer of, or exchange any bond during a period beginning at the opening of business 15 days before the day of the mailing of a notice of redemption of bonds selected for redemption and ending at the close of business on the day of that mailing.
It is hereby certified and recited that all acts, conditions and things required to be done, exist and happen, precedent to and in the issuance of this bond and the series of bonds of which this is one, in order to make them valid and binding obligations of the College have been done, exist and have happened in regular and due form and time as provided by law, and that the total indebtedness of the College, including this bond and the series of bonds of which this is one, does not exceed any constitutional or statutory limitation.
[This bond is not valid or obligatory for any purpose until the Transfer Agent’s Certificate of Authentication on this bond has been executed by the Transfer Agent.]
IN WITNESS WHEREOF, the College, by its Board of Trustees has caused this bond to be signed in the name of the College by the [facsimile] signature of the Chair and to be countersigned by the [facsimile] signature of the Secretary of the Board of Trustees, all as of the Date of Original Issue shown on the face of this bond.
NORTHWESTERN MICHIGAN COLLEGE By [Bond to be signed by Chair of Board]
Chair Countersigned: By [Bond to be signed by Secretary of Board]
Secretary
[INSERT STANDARD FORM OF AUTHENTICATION CERTIFICATE AND ASSIGNMENT]
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5. Debt Retirement Fund. The Authorized Officer is authorized and directed to open a separate depository or trust account with a bank or trust company for the Bonds to be designated as the 2016 COMMUNITY COLLEGE FACILITIES BONDS DEBT RETIREMENT FUND (the “Debt Retirement Fund”). The Debt Retirement Fund may be pooled or combined with other debt retirement funds for issues of bonds of like character as provided by Act 34, Public Acts of Michigan, 2001, as amended or other state law. An amount sufficient to assure timely payment of the principal of and interest on the Bonds shall be transferred from the general fund of the College, or other funds legally available therefor, into the Debt Retirement Fund. In addition, a portion of the proceeds of sale of the Bonds may be deposited to the Debt Retirement Fund as provided in Section 7 of this Resolution. The moneys deposited in the Debt Retirement Fund shall be used solely for the purpose of paying the principal of and interest on the Bonds and, as may be necessary, to rebate arbitrage earnings, if any, to the United States Department of Treasury as required by the Internal Revenue Code.
The College may provide for the payment of principal of any of the Bonds issued as term bonds through the purchase of such Bonds in the open market at a price not greater than that payable on the next redemption date in order to satisfy all or part of the next succeeding scheduled mandatory redemption.
In the event a deposit of trust is made of cash or direct obligations of the United States or obligations the principal of and interest on which are guaranteed by the United States, or a combination thereof, the principal of and interest on which, without reinvestment, come due at times and in amounts sufficient to pay at maturity or irrevocable call for earlier optional or mandatory redemption, the principal of, premium, if any, and interest on the Bonds, after verification of such sufficiency, this Resolution shall be defeased and the owners of such Bonds shall have no further rights under this Resolution except to receive payment of the principal of, premium, if any, and interest of the Bonds from the cash or securities deposited in trust and the interest and gains thereon and to transfer and exchange Bonds as provided herein.
6. Construction Fund. Upon sale of the Bonds, the Authorized Officer is authorized and directed to create a fund designated as the 2016 COMMUNITY COLLEGE FACILITIES BONDS CONSTRUCTION FUND (the “Construction Fund”), for the deposit of proceeds of sale of the Bonds as provided in Section 7 of this Resolution. Except for investment pending disbursement and as hereinafter provided, the moneys in the Construction Fund shall be used solely and only to pay costs of the Capital Improvements as such costs become due and payable, the costs of the issuance of the Bonds, and, as may be necessary, to rebate arbitrage earnings, if any, to the United States Department of Treasury as required by the Internal Revenue Code. In the event it is not necessary to use all or any portion of the moneys in the Construction Fund for acquisition and construction of the Capital Improvements, such moneys may be expended for any purpose for which bonds may be issued under Section 122 of Act 331 upon approval of such expenditure by this Board of Trustees.
7. Deposit of Bond Proceeds. Upon receipt of the proceeds of sale of the Bonds, the accrued interest and premium, if any, shall be deposited in the Debt Retirement Fund and used to pay interest on the Bonds on the first interest payment date, provided, however, that at the discretion of the Authorized Officer, all or a portion of any premium received upon delivery of the Bonds may be deposited in the Construction Fund. In addition, capitalized interest in an
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amount to be designated by the Authorized Officer shall be deposited to the Debt Retirement Fund. The remaining proceeds of the Bonds shall be deposited in Construction Fund.
8. Tax Matters. The College shall not invest, reinvest or accumulate any moneys deemed to be proceeds of the Bonds pursuant to the Internal Revenue Code in such a manner as to cause the Bonds to be “arbitrage bonds” within the meaning of the Internal Revenue Code. The College hereby covenants that, to the extent permitted by law, it will take all actions within its control and that it shall not fail to take any action as may be necessary to maintain the excludability of interest on the Bonds from gross income for federal income tax purposes, including but not limited to, actions relating to the rebate of arbitrage earnings, if applicable, and the expenditure and investment of Bond proceeds and moneys deemed to be Bond proceeds, all as more fully set forth in the Non-Arbitrage and Tax Compliance Certificate to be delivered by the College.
9. Financial Advisor. The College requests Public Financial Management, Inc. (the “Financial Advisor”), to continue to serve the College as Financial Advisor for the Bonds.
10. Bond Counsel. The College requests Miller, Canfield, Paddock and Stone, P.L.C. to continue to serve as bond counsel with respect to the Bonds. The Board of Trustees of the College acknowledges that Miller Canfield represents many municipal bond underwriters, banks, and financial institutions in connection with matters unrelated to issuance by the College of the Bonds, and requests Miller Canfield to continue as bond counsel notwithstanding representation by Miller Canfield, in matters unrelated to the Bonds, of potential purchasers of or underwriters for the Bonds or co-managers or selling group members.
11. Notice of Sale. The Authorized Officer shall fix a date of sale for the Bonds and publish a Notice of Sale in The Bond Buyer, New York, New York, or such other newspaper as may fulfill the requirements of Act 34, Public Acts of Michigan, 2001, as amended. The Notice of Sale shall be in substantially the following form with such revisions as may be recommended by the Financial Advisor and Bond Counsel:
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OFFICIAL NOTICE OF SALE
$20,890,000* (Subject to adjustment as described below)
NORTHWESTERN MICHIGAN COLLEGE County of Grand Traverse, State of Michigan
2016 COMMUNITY COLLEGE FACILITIES BOND (General Obligation - Limited Tax)
BID OPENING: Bids for the purchase of the above bonds (the “Bonds”) will be publicly opened and read by Northwestern Michigan College or their agent on [date] at [time], Eastern Time.
SEALED BIDS for the purchase of the Bonds will be received at the Office of the Vice President of Finance and Administration in West Hall located on the main campus of Northwestern Michigan College, 1701 E. Front Street, Traverse City, Michigan 49686, and also at the office of the Municipal Advisory Council of Michigan, Buhl Building, 535 Griswold, Suite 1850, Detroit, Michigan 48226.
FAXED BIDS, signed by the bidder, may be submitted by members of the Municipal Advisory Council of Michigan to MAC at fax number (313) 963-0943 or by any bidder to the College at fax (231) 995-1681 Attention: Vicki Cook; provided that faxed bids must arrive before the time of sale and the bidder bears all risks of transmission failure.
ELECTRONIC BIDS: Electronic bids will be received by Bidcomp/Parity as agent of the undersigned. Further information about Bidcomp/Parity, including any fee charged, may be obtained from Bidcomp/Parity, Anthony Leyden or Client Services, 1359 Broadway, Second Floor, New York, New York 10018, (212) 849-5021. If any provision of this Official Notice of Sale shall conflict with information provided by Bidcomp/Parity, as the approved provider of electronic bidding services, this Official Notice of Sale shall control. No change of the dated date will be allowed for the computation of the winning bid.
Bidders may choose any means or location to present bids but a bidder may not present a bid in more than one location or by more than one means. The College will award or reject bids on the date of the bid opening.
BOND DETAILS: The Bonds will be registered bonds of the denomination of $5,000 or integral multiples thereof up to the amount of that maturity, originally dated as of the date of delivery thereof (currently anticipated to be [date]), and will bear interest from their date payable on November 1, 2016, and semiannually thereafter.
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Subject to adjustment as described below, the Bonds will mature on May 1 of each year, as follows:
Year
Principal Amount Year
PrincipalAmount
Year
PrincipalAmount
2018 $405,000 2025 $ 900,000 2032 $1,165,000 2019 725,000 2026 935,000 2033 1,210,000 2020 755,000 2027 970,000 2034 1,260,000 2021 780,000 2028 1,010,000 2035 1,305,000 2022 810,000 2029 1,045,000 2036 1,350,000 2023 840,000 2030 1,085,000 2037 1,405,000 2024 870,000 2031 1,125,000 2038 940,000
MATURITY AND PURCHASE PRICE ADJUSTMENT: The aggregate principal amount of this issue as shown in this Notice of Sale is believed to be the amount necessary to provide adequate funds for various capital improvements and to pay transactional costs. The College reserves the right to decrease the aggregate principal amount of the bonds by not more than $1,050,000 after receipt of the bids and prior to final award. Such adjustment, if necessary, will be made in increments of $5,000, will not exceed $75,000 per maturity, and may be made in any maturity. The purchase price of the bonds will be adjusted proportionately to the decrease in issue size and in such manner as to maintain as comparable an underwriter spread as possible to the winning bid, but the interest rates specified by the successful bidder for all maturities will not change. The successful bidder may not withdraw its bid as a result of any changes made within these limits.
INTEREST RATE AND BIDDING DETAILS: The Bonds shall bear interest at a rate or rates not exceeding 5.00% per annum, to be fixed by the bids therefor, expressed in multiples of 1/8 or 1/20 of 1%, or both. The interest on any one bond shall be at one rate only and all Bonds maturing in any one year must carry the same interest rate. THE INTEREST BORNE BY BONDS MATURING IN ANY ONE YEAR SHALL NOT BE LESS THAN THE INTEREST RATE BORNE BY BONDS MATURING IN THE PRECEDING YEAR. The difference between the highest and lowest interest rate on the Bonds shall not exceed 3.00% per annum. No proposal for the purchase of less than all of the Bonds or at a price less than 99.00% or more than 105% of their par value will be considered. In submitting a bid for the Bonds, the bidder agrees to the representation of the College by Miller, Canfield, Paddock and Stone, P.L.C. as bond counsel.
OPTIONAL PRIOR REDEMPTION: Bonds of this issue maturing in the years 2018 to 2026, inclusive, shall not be subject to redemption prior to maturity. Bonds or portions of Bonds in multiples of $5,000 of this issue maturing in the years 2027 to 2038, inclusive, shall be subject to redemption prior to maturity, at the option of the College, in such order of maturity as the College shall determine and within any maturity by lot, on any date on or after May 1, 2026, at par and accrued interest to the date fixed for redemption.
TERM BOND OPTION: Bidders shall have the option of designating the bonds as serial bonds or term bonds or both. If a bidder designates bonds as term bonds, the principal requirements
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shown above for the designated years (as adjusted if necessary as described under the section captioned “MATURITY AND PURCHASE PRICE ADJUSTMENT”) shall represent a mandatory redemption requirement for a term bond or a term bond maturity as designated by the bidder. In any event, the above principal amounts (as adjusted) shall be represented by either serial bond maturities or mandatory redemption requirements or a combination of both. If the winning bidder does not designate bonds as term bonds, then all maturities shall be serial maturities. Any such designation must be made within 24 hours of the opening of bids for the bonds.
If the term bond option is selected, then the principal amount of the term bonds of a maturity to be redeemed on the dates set forth above may be reduced by the principal amount of the term bonds of the same maturity which have been previously redeemed or called for redemption (other than as a result of a mandatory redemption) or purchased or acquired by the College and delivered to the transfer agent. The College may satisfy mandatory redemption requirements by the purchase and surrender of term bonds in lieu of the calling of such term bonds for redemption.
NOTICE OF REDEMPTION: Notice of redemption of any bond or portion thereof shall be given by the transfer agent at least thirty (30) days prior to the date fixed for redemption by mail to the registered owner at the registered address shown on the registration books kept by the transfer agent. No further interest on a bond or portion thereof called for redemption shall accrue after the date fixed for redemption, whether presented for redemption or not, provided funds are on hand with the transfer agent to redeem the bond or portion thereof. In case less than the full amount of an outstanding bond is called for redemption, the transfer agent, upon presentation of the bond called for redemption, shall register, authenticate and deliver to the registered owner of record a new bond in the principal amount of the portion of the original bond not called for redemption.
AWARD OF BONDS - TRUE INTEREST COST: The Bonds will be awarded to the bidder whose bid produces the lowest true interest cost determined in the following manner: the lowest true interest cost will be the single interest rate (compounded on [date] and semi-annually thereafter) necessary to discount the debt service payments from their respective payment date to [date] in an amount equal to the price bid. [Date] is the anticipated date of delivery of the Bonds. In the event there is an election to exercise the Term Bond option, true interest cost shall be calculated by applying the interest rate of such Term Bonds to each mandatory sinking fund redemption for such Term Bonds.
BOOK-ENTRY ONLY: The Bonds will be issued in book-entry only form as one fully registered bond per maturity and will be registered in the name of Cede & Co., as bondholder and nominee for The Depository Trust Company (“DTC”), New York, New York. An authorized agent of DTC will act as securities depository for the Bonds. Purchase of the Bonds will be made in book-entry only form, in the denomination of $5,000 or any integral multiple of $5,000, and bondholders will not receive certificates representing their interest in Bonds purchased. The book-entry only system is described further in the preliminary Official Statement for the Bonds. It will be the responsibility of the purchaser to obtain DTC eligibility. Failure of the purchaser to obtain DTC eligibility shall not constitute cause for a failure or refusal by the purchaser to accept delivery of and pay for the Bonds.
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TRANSFER AGENT AND REGISTRATION: Principal shall be payable at the designated corporate trust office of [Transfer Agent], or such other transfer agent as the College may hereafter designate by notice mailed to the registered owner of record not less than 60 days prior to any interest payment date. As long as The Depository Trust Company or its nominee, Cede & Co., is the bondholder, payments will be made directly to DTC. Disbursement of such payments to the DTC Participants is the responsibility of DTC and disbursement of such payments to the beneficial owners of the Bonds is the responsibility of the DTC Participants and Indirect Participants as described in the preliminary Official Statement for the Bonds. Interest shall be paid by check or draft mailed to the registered owner of record as shown on the registration books kept by the transfer agent as of the 15th day of the month prior to an interest payment date. The Bonds will be transferred only upon the registration books of the College kept by the transfer agent.
PURPOSE AND SECURITY: The Bonds are being issued to acquire and construct various capital improvements pursuant to the provisions of Act 331 of Public Acts of Michigan of 1966, as amended. The Bonds constitute full faith and credit limited tax general obligations of the College and are a first budget obligation of the College. The College has the obligation to levy sufficient ad valorem taxes annually on all taxable property in the College district; any such tax levies, however, must be subject to existing statutory and constitutional tax rate limitations. The rights or remedies of bondholders may be affected by bankruptcy, insolvency, fraudulent conveyance or other laws affecting creditors’ rights generally, now existing or hereafter enacted, and by the application of general principles of equity, including those relating to equitable subordination.
GOOD FAITH: A good faith deposit in the form of a certified or cashier’s check drawn upon an incorporated bank or trust company, or wire transfer, in the amount of 2% of the par amount of the Bonds payable to the order of the College Treasurer, will be required of the successful bidder. THE SUCCESSFUL BIDDER IS REQUIRED TO SUBMIT ITS GOOD FAITH DEPOSIT TO THE COLLEGE AS INSTRUCTED BY THE COLLEGE NOT LATER THAN NOON, EASTERN TIME, ON THE NEXT BUSINESS DAY FOLLOWING THE SALE. The good faith deposit will be applied to the purchase price of the Bonds. In the event the purchaser fails to honor its accepted bid, the good faith deposit will be retained by the College. No interest shall be allowed on the good faith deposit. The good faith check of the successful bidder will be cashed and payment for the balance of the purchase price of the Bonds shall be made at the closing.
TAX MATTERS: In the opinion of Miller, Canfield, Paddock and Stone, P.L.C., bond counsel, under existing law, assuming compliance with certain covenants, interest on the Bonds is excludable from gross income for federal income tax purposes as described in the opinion, and the Bonds and interest thereon are exempt from all taxation by the State of Michigan or by any taxing authority within the State of Michigan except inheritance and estate taxes and taxes on gains realized from the sale, payment or other disposition thereof.
NOT BANK QUALIFIED: The Bonds have not been designated as qualified tax exempt obligations for purposes of deduction of interest expense by financial institutions pursuant to the Internal Revenue Code.
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ISSUE PRICE CERTIFICATE: The successful bidder will be required to furnish prior to delivery of the Bonds, a certificate in a form acceptable to bond counsel as to the “issue price” of the Bonds within the meaning of Section 1273 of the Internal Revenue Code of 1986. Such certificate will include (i) for those maturities where 10% of each such maturity of the Bonds has been sold to members of the general public (excluding underwriters, brokers and dealers) prior to delivery of the Bonds, the price at which the first 10% of each such maturity was sold to members of the general public, and (ii) for those maturities where 10% of such maturity has not been sold to members of the general public (excluding underwriters, brokers and dealers) prior to delivery of the Bonds, an agreement by the successful bidder to provide bond counsel with the prices at which the first 10% of each such maturity is ultimately sold to members of the general public.
LEGAL OPINION: Bids shall be conditioned upon the approving opinion of Miller, Canfield, Paddock and Stone, P.L.C., attorneys of Lansing and Detroit, Michigan. The College will furnish the opinion at its expense to the purchaser of the Bonds at the delivery thereof. The fees of Miller, Canfield, Paddock and Stone, P.L.C., for services rendered in connection with such approving opinion are expected to be paid from bond proceeds. Except to the extent necessary to issue its approving opinion as to the validity of the Bonds, Miller, Canfield, Paddock and Stone, P.L.C. has not been requested to examine or review and has not examined or reviewed any financial documents, statements or materials that have been or may be furnished in connection with the authorization, issuance or marketing of the Bonds, and accordingly will not express any opinion with respect to the accuracy or completeness of any such financial documents, statements or materials.
DELIVERY OF BONDS: The College will furnish executed Bonds at its expense. Bonds will be delivered to an authorized agent of DTC on behalf of the purchaser at the expense of the College. The usual closing documents, including a certificate that no litigation is pending affecting the issuance of the Bonds, will be delivered at the time of delivery of the Bonds. If the Bonds are not tendered for delivery by twelve o’clock noon, Eastern Time, on the 45th day following the date of sale, or the first business day thereafter if said 45th day is not a business day, the successful bidder may on that day, or any time thereafter until delivery of the Bonds, withdraw its proposal by serving notice of cancellation, in writing, on the undersigned in which event the College shall promptly return the good faith deposit. Payment for the Bonds shall be made in immediately available funds.
CUSIP NUMBERS: CUSIP identification numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bonds nor any error with respect thereto shall constitute cause for a failure or refusal by the purchaser thereof to accept delivery of and pay for the Bonds. The CUSIP Service Bureau charge for the assignment of such numbers shall be the responsibility of and shall be paid for by the purchaser of the Bonds.
BOND INSURANCE AT PURCHASER’S OPTION: If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option of the bidder/purchaser, the purchase of any such insurance policy or the issuance of any such commitment shall be at the option and expense of the purchaser of the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of insurance shall be paid by the purchaser, except that, if the College has requested and received a rating on the Bonds from a rating agency, the College will
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pay for the requested rating. Any other rating agency fees shall be the responsibility of the purchaser of the insurance. FAILURE OF THE MUNICIPAL BOND INSURER TO ISSUE THE POLICY AFTER THE BONDS HAVE BEEN AWARDED TO THE PURCHASER SHALL NOT CONSTITUTE CAUSE FOR FAILURE OR REFUSAL BY THE PURCHASER TO ACCEPT DELIVERY OF THE BONDS FROM THE COLLEGE.
OFFICIAL STATEMENT: A preliminary Official Statement that the College deems to be final as of its date, except for the omission of information permitted to be omitted by Rule 15c2 -12 of the Securities and Exchange Commission, has been prepared and may be obtained from Public Financial Management, Inc., at the address and telephone listed below under the caption “REGISTERED MUNICIPAL ADVISOR.” The College will provide the winning bidder a final Official Statement, in electronic format only, within 7 business days from the date of sale so as to permit the underwriter to comply with Rule 15c2-12. Printed copies of the Official Statement will be supplied by Public Financial Management, Inc. upon request and agreement by the purchaser of the Bonds to pay the cost of the copies.
CONTINUING DISCLOSURE: As described more fully in the Official Statement, the College will execute and deliver prior to delivery of the Bonds a written continuing disclosure undertaking in order to enable the underwriters of the Bonds to comply with the requirements of Rule 15c2-12 promulgated by the Securities and Exchange Commission.
FURTHER INFORMATION: Further information regarding the bonds may be obtained from Public Financial Management, Inc., 3989 Research Park Drive, Ann Arbor, Michigan 48108. Phone: (734) 668-6688.
THE RIGHT IS RESERVED TO REJECT ANY OR ALL BIDS. In submitting a bid for the Bonds, the bidder represents that it is not an “Iran linked business” within the meaning of the Iran Economic Sanctions Act, Act 517 of the Public Acts of Michigan of 2012.
ENVELOPES containing the bids should be plainly marked “Proposal for Bonds.”
Vicki Cook Vice President of Finance and Administration Northwestern Michigan College Traverse City, Michigan
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12. Municipal Bond Ratings or Insurance. The Authorized Officer is hereby authorized to apply for one or more bond ratings for the Bonds in consultation with the Financial Advisor. If the Financial Advisor recommends that the College consider purchase of municipal bond insurance, then the Authorized Officer is hereby authorized and directed to negotiate with insurers regarding acquisition of municipal bond insurance, and, in consultation with the Financial Advisor, to select an insurer and determine which Bonds, if any, shall be insured.
13. Official Statement; Continuing Disclosure. The Authorized Officer is authorized to approve circulation of an official statement or other document describing the College, the Bonds, and the security for payment of the Bonds. The Authorized Officer is authorized to execute the official statement or other document authorized under this section and deliver it to the purchaser of the Bonds. The Authorized Officer is authorized to execute and deliver a written continuing disclosure undertaking in order to enable the purchaser of the Bonds to comply with the requirements of SEC Rule 15c2-12.
14. Sale of Bonds. The Authorized Officer is hereby authorized, on behalf of the College, to award sale of the Bonds to the bidder whose bid produces the lowest interest cost computed in compliance with the terms of the Notice of Sale as published.
If the Authorized Officer determines, based on the advice of the Financial Advisor, that due to market conditions a negotiated sale of the Bonds would enable the College to better market the Bonds, then it is determined to be in the best interests of the College to negotiate the sale of the Bonds, and the Authorized Officer is hereby authorized and directed on behalf of the College to negotiate sale of the Bonds to an underwriter, financial institution or other investor, and to accept an offer to purchase the Bonds without further resolution of this Board of Trustees.
The Authorized Officer is authorized to sign a certificate of award of sale, acknowledgement of offer to purchase the Bonds, purchase agreement, or other document agreeing to sell the Bonds on behalf of the College. The authorization to sell the Bonds includes, but is not limited to, determination of original principal amount of the Bonds; the prices at which the Bonds are sold; the date of the Bonds; the schedule of principal maturities of the Bonds and whether the Bonds shall mature serially or as term bonds; the provisions for early redemption including mandatory redemption of term bonds, if any; and the interest rates and payment dates of the Bonds.
The date of the final maturity of the Bonds shall not exceed the useful life of the Capital Improvements or 22 years, whichever is less. The true interest cost of the Bonds shall not exceed 5.00%. The purchase price for the Bonds, exclusive of any original issue discount or premium, shall not be less than 99% of the principal amount thereof. In making such determinations the Authorized Officer is authorized to rely upon data and computer runs provided by the Financial Advisor or the Municipal Advisory Council of Michigan. Approval of the matters delegated to the Authorized Officer under this resolution may be evidenced by execution of the certificate of award of sale, purchase agreement, or official statement.
15. Actions by Officers of the College. In the event that the Authorized Officer is not available at the time that it becomes necessary to take actions directed or authorized under this resolution, then the Controller, or another College official designated by the Authorized Officer
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or the President of the College, is authorized to take the actions delegated to the Authorized Officer by this Resolution. The officers, administrators, agents and attorneys of the College are authorized and directed to take all other actions necessary and convenient to facilitate issuance, sale, and delivery of the Bonds and expenditure of Bond proceeds, and to execute and deliver all other agreements, documents and certificates and to take all other actions necessary or convenient to complete the issuance, sale, and delivery of the Bonds and expenditure of Bond proceeds in accordance with this Resolution and payment of costs of issuance including but not limited to bond counsel fees, financial consultant fees, rating agency fees, costs of printing the Bonds and the preliminary and final official statements, publication of the Notice of Sale, and any other costs necessary to accomplish sale and delivery of the Bonds.
16. Conflicting Resolutions. All resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution are rescinded.
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I hereby certify that the foregoing is a true and complete copy of a resolution adopted by the Board of Trustees of Northwestern Michigan College, State of Michigan, at a Regular Meeting on Monday, March 21, 2016, and that public notice of said meeting was given pursuant to and in full compliance with Act No. 267, Public Acts of Michigan, 1976, and that minutes of the meeting were kept and will be or have been made available as required by said Act 267.
I further certify that Notice of this meeting was posted pursuant to the requirements of Section 308, Act 34, Public Acts of Michigan, 2001, as amended, not less than 18 hours prior to the meeting, in the form attached hereto as Exhibit A.
I further certify that the following Members were present at said meeting: ___________ ____________________________________________________________________________________________________________________ and that the following Members were absent: _____________________________________________.
I further certify that Member _________________ moved for adoption of said resolution and that Member _________________ supported said motion.
I further certify that the following Members voted for adoption of said resolution: ______ ___________________________________________________________________________________________________________ and that the following Members voted against adoption of said resolution: ________________________________________________.
__________________________________________ Secretary, Board of Trustees Northwestern Michigan College
26262751.1\065509-00008
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Exhibit A
Form of Notice pursuant to Section 308, Act 34, Public Acts of Michigan, 2001, as amended
MEETING NOTICE BOARD OF TRUSTEES
NORTHWESTERN MICHIGAN COLLEGE
At the Regular meeting of the Board of Trustees of Northwestern Michigan College to be held on Monday, March 21, 2016 at 5:30 p.m. Eastern Time, in the Hagerty Center located on the College’s Great Lakes Campus, 715 E. Front St. at Barlow Avenue in Traverse City, the Board of Trustees will consider issuance of a proposed bond issue which will contain a limited tax full faith and credit pledge of the College.
THIS NOTICE is given pursuant to the requirements of Section 308, Act 34, Public Acts of Michigan, 2001, as amended.
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