MINUTES
THE BOARD OF DIRECTORS OF THE
KANSAS UNIVERSITY ALUMNI ASSOCIATION
FRIDAY, MAY 9, AND SATURDAY, MAY 10, 2014
ADAMS ALUMNI CENTER
Present:Jeff Kennedy, Chair
John W. Ballard III
Luke B. Bobo
Aaron R. Brinkman
Donald R. Brada
James E. Bredfeldt
Kevin E. Carroll
Paul L. Carttar
Ray D. Evans, Immediate Past Chair
Marci K. Deuth
Debi Dennis Duckworth
Gregory E. Ek
John H. Jeter
Shelle Hook McCoy
Douglas C. Miller
Debbie Foltz Nordling
Camille Bribiesca Nyberg, Chair-Elect
Richard E. Putnam
Lori Anderson Piening
Mark C. Randall
Scott R. Seyfarth)
Jerry D. Skillett
Larry D. Stoppel
Brenda Marzett Vann
Jeff L. Wolfe
Kevin J. Corbett, President
Tim Brandt, Director, Adams Alumni Center
Michael W. Davis, Senior Vice President for Alumni and Student Programs and Membership
Brad Eland, Assistant Director of Kansas Programs
Emily Ellison, Alumni Programs Coordinator for Operations
William S. Green, Senior Vice President for Information Systems
Bryan E. Greve, Senior Vice President for Hospitality Services
Teri Harris, Director of Membership
Kelsey Hill, Alumni Programs Coordinator for National Programs
Paige Pendarvis Hofer, Coordinator for Student Programs
David Johnston, Director of Internet Services and Marketing
JaceyKrehbiel, Alumni Programs Coordinator
Michelle Miles Lang, Assistant Director of Kansas
Programs
Lynn Loveland, Assistant Director of Kansas Programs- Wichita
Joy Larson Maxwell, Director of Legacy Relations
Jodi Nachtigal, Controller
Dwight S. Parman, Senior Vice President for Finance and Human Resources
Heath Peterson, Assistant Vice President for Alumni and
Student Programs
Jennifer Jackson Sanner, Senior Vice President for Communications and Corporate Secretary
Laura Stephens, Assistant Director for Hospitality Services
Angela RiffeyStorey, Associate Development Director for the Alumni Association at KU Endowment
Dan Storey, Staff Photographer and Videographer
Stefanie Shackelford, Vice President for Alumni Records
Tegan Thornberry, Membership Coordinator
Susan Younger, Creative Director
Absent:Jill Simpson Miller
Betsy Winetroub, Assistant Director of Kansas City Programs
CALL TO ORDER:
Mr. Kennedy called the meeting to order at 1:30 p.m. and asked for a motion to approve the minutes the meeting held February 7-8, 2014. Mrs. McCoy made the motion, seconded by Dr. Bredfeldt, and the Board unanimously approved the February minutes.
EXECUTIVE COMMITTEE REPORT:
Mr. Kennedy said the bulk of the committee’s discussion would be covered in reports from the Finance and Audit committees and the executive session later in the day. He emphasized the importance of the upcoming online survey of Board members, which would be sent in the next week, and he urged all members to share their opinions and return their surveys promptly. The Executive Committee will discuss the survey results at its summer meeting and share all necessary information at the September general meeting of the Board, he said.
AUTHORIZATION OF ACCOUNT SIGNATURES AND BORROWING:
Mr. Miller made a motion, seconded by Dr. Brada, to authorize the signatures of Mr. Corbett, Mr. Parman and Mr. Greve on all checking, savings and investment accounts during 2015 fiscal year. The motion carried unanimously. Mr. Miller’s second motion called for the authorization of Mr. Corbett and Mr. Parman to borrow as much as $50,000 if necessary during the 2015 fiscal year, and to use as much as $50,000 from the Life Membership Reserve Fund after consulting with the chair of the Board or the chair of the Finance Committee. This motion, seconded by Dr. Bredfeldt, also passed unanimously.
NOMINATING COMMITTEE REPORT:
Mrs. Nyberg, committee chair, reported that the group met April 17. Those attending in addition to Mrs. Nyberg included Mr. Carroll, Mrs. McCoy, Mr. Putnam, Mr. Wolfe and Mr. Kennedy. As chair of the national Board, Mr. Kennedy served as an ex-officio member and did not vote.
The committee reviewed the qualifications of 11 nominees, mindful of the Association’s need for representation in key geographic areas, including New York, Florida, north central Kansas and southwest Kansas. With the pending conclusions of five-year terms and recent moves of Board members, these areas currently lack representation, Mrs. Nyberg said, adding that after Mrs. Nordling ends her term June 30, the Board would include only seven women.
Mrs. Nyberg explained that each Nominating Committee member was assigned to interview the nominators recommending each candidate. After discussion, the committee selected a slate of five alumni to be considered individually by the Board for five-year terms beginning July 1, 2014:
Carrie Coulson, b’02, l’05, New York City
Cory Lagerstrom, c’94, g’98, l’98, Mission Hills
Cindy EmigPenzler, c’81, m’85, Lawrence
Al Shank, b’77, Liberal
Tim Trump, b’80, l’83, Tulsa, Oklahoma
Mrs. Nyberg asked committee members to provide comments on each nominee to supplement the brief biographies Mr. Corbett had sent to Board members.
Mr. Putnam introduced the nomination Ms. Coulson, a Life Member who lives in New York City and was nominated by former Board member Brad Korell. Ms. Coulson has volunteered for the New York Chapter for more than six years and currently serves on the local chapter board. She also has participated in student recruitment. She is a partner at Park Madison Partners. Mr. Ballard endorsed Ms. Coulson, saying she would be a good fit for the Board.
Mr. Seyfarthmade the motion to approve Ms. Coulson as a new member of the Board. Mr. Ballard seconded the motion, and the Board unanimously elected Ms. Coulson.
Mr. Wolfe introduced the nomination of Mr. Lagerstrom, who is the former president of Frontier Wealth Management, LLC, and is starting a new wealth management firm. For the Association, Mr. Lagerstrom, nominated by former Kansas City Chapter president Brian King, is a Life Member and a Presidents Club member. Mr. Lagerstrom led the Kansas City Chapter as president and chaired the Rock Chalk Ball. He also has served on the Chancellors Club advisory board. Mr. Wolfe said that Mr. Lagerstrom had fulfilled nearly every volunteer role in Kansas City, and he won the Mildred Clodfelter Alumni Award in 2010 for his longtime service to KU.
Dr. Brada made the motion to elect Mr. Lagerstrom to the Board. Mr. Carroll seconded the motion, which passed unanimously.
Mr. Davis introduced his nominee Dr. Penzler, a Life Member and an ophthalmologist with KresiePenzler, PA, in Topeka. She has supported the Kansas Honors Program and served on the Audio-Reader board. She and her husband, Craig, a’82, are Presidents Club members and members of the Williams Educational Fund for Kansas Athletics.
Dr. Bredfeldt made the motion to elect Dr. Penzler to the Board. Mr. Wolfe seconded the motion, and Mrs. Penzler was unanimously elected.
Mrs. McCoy introduced the nomination of Mr. Shank, a Life Member who was nominated by Mrs. Nordling. Mr. Shank, a 1991 Mildred Clodfelter award winner, has coordinated the local Kansas Honors Program event since 1978 and participated in Jayhawks for Higher Education. He has helped lead the Southwest Chapter and volunteered for KU Endowment and Kansas Athletics. Mrs. Nordling said she had relied on Mr. Shank, president of his own insurance firm, and his wife, Donna, assoc., a former chair of the Kansas Board of Regents, as vital resources and advisers on a wide range of subjects, especially the promotion of KU and higher education in southwest Kansas. They are Presidents Club members.
Mr. Seyfarth made the motion to elect Mr. Shank to the Board. Seconded by Dr. Brada, the motion passed unanimously.
Mr. Davis introduced another of his nominees, Mr. Trump, an attorney and partner at Conner & Winters LLP in Tulsa. Mr. Kennedy commented that he has heard many favorable comments from fellow attorneys regarding Mr. Trump. As a Life Member, Mr. Trump has helped establish the Association’s new Tulsa Chapter, and he has assisted KU with student recruitment. He is a donor to the Presidents Club and the School of Law. He is originally from Salina.
Mr. Carroll made the motion to elect Mr. Trump to the Board. Mr. Miller seconded the nomination, and members unanimously elected Mr. Trump.
To continue the election process for the 2014-’15 year, Mr. Kennedy nominated Mrs. Nyberg to lead the Association as national chair. Mr. Miller seconded the motion, which passed unanimously, followed by applause for Mrs. Nyberg.
On behalf of the Nominating Committee, Mr. Kennedy nominated Mr. Putnam to serve as the 2014-’15 chair-elect. Mr. Seyfarth seconded the motion, and the Board unanimously elected and applauded Mr. Putnam.
Mr. Kennedy also explained that three Executive Committee members, Mr. Evans, Mrs. Nordling and Mr. Miller, would leave the Board at the conclusion of their terms June 30. He said the Nominating Committee had recommended Mr. Carroll, Mrs. McCoy and Mr. Wolfe to succeed them. Mr. Evans moved for the election of the three. Dr. Bredfeldt seconded the motion, and the Board unanimously approved Mr. Carroll, Mrs. McCoy and Mr. Wolfe as new Executive Committee members for 2014-’15.
AUDIT AND FINANCE COMMITTEE REPORTS:
Mr. Miller shared highlights of the April 16 Audit Committee meeting, which included an educational session by Jeff Davis, KU Endowment’s senior vice president for finance and treasurer, on investment policies and practices. Several members of the Finance Committee participated in the session via telephone.
Mr. Miller also reported the recent resignation of longtime Audit Committee member Rob Chestnut, who had changed careers and could no longer devote time to the group. According to the Association’s bylaws, three members of the Audit Committee must be current members of the Board, and two must come from outside the Board. Mr. Miller asked that the Board ratify Mr. Kennedy’s appointment of Sandra Hanson Miller (no relation) a CPA practicing in Lawrence, to the Audit Committee. She would serve with fellow non-Board member Jeff Morrison of Lawrence. Mrs. McCoy made a motion to ratify Mrs. Miller’s appointment. Dr. Jeter seconded the motion, which passed unanimously.
The Audit Committee also met with the Association’s independent auditors from Mize Houser; the firm has proposed a 2.8 percent increase in the fees for conducting the current fiscal year audit. Mr. Parman explained that although the Association has contracted with Mize Houser for a number of years, the firm assigns new partners to work with the Association every seven years. By acclamation, the Board approved the continuing agreement with Mize Houser.
Mr. Miller also reported that the Audit Committee had received no “whistle-blower” reports from within the Association.
From the Finance Committee, Mr. Parman reported that the group had reviewed and approved the financial statements as of and for the nine-month period ending March 31, 2014, which showed net income from operations of $92,480 on a modified cash basis, compared to a budgeted loss of $131,704 before capital expenditures, creating a positive variance of $224,184. The positive variance through nine months of the year is gratifying, Mr. Parman said, because in recent years the Association’s financial statements for the same period have often shown negative variances, which improve later in the spring as a result of successful fundraising at the Rock Chalk Ball in late April.
The committee also reviewed and approved the operating budget $5.643 million for fiscal year 2015, which represents a 3.79 percent increase over the current fiscal year. Members also discussed the Association’s insurance coverage and premiums, which remain unchanged pending a meeting with insurance broker IMA of Kansas. In addition, Mr. Parman shared with the committee a tentative five-year plan for capital improvements that he and Mr. Brandt had prepared at Mr. Miller’s request. As a general guide for future budget forecasts, the plan did not warrant formal approval.
FUNDRAISING REPORT:
Mrs. Storey distributed copies of her report, which highlighted a record year of gifts to the Association. Membership in the Presidents Club has climbed to 476, she said, and the organization received an anonymous planned gift of $20 million (an additional $5 million is committed to KU scholarships). She also announced a lead gift from Mr. Ek and his wife, Debby, to create a Diverse Student Internship Program for the Association.
Mr. Davis thanked Mr. Ek, who has been a steadfast proponent of increasing diversity within the Association staff and has invested in a program that will raise the visibility of the Association among diverse groups on campus. In recent years, several of the Association’s student interns have moved into full-time positions after graduation, so by increasing the diversity of the interns, the Association ultimately can recruit more diverse staff members, Mr. Davis explained. Board members applauded Mr. Ek, who said he hoped other members would make their own gifts to help ensure that the Association continues to reflect the diverse KU community.
A staff team led by Mr. Peterson will develop the internship program and extend opportunities in both the alumni programs and communications departments of the Association, Mr. Davis said.
Mrs. Storey said the planned gift to the Association is among the largest commitments to KU Endowment’s Far Above campaign. Including that gift, the Association had raised $24,022,723, including $954,723 in cash, she added.
Mr. Kennedy praised Mr. Corbett and Mrs. Storey for securing the planned gift. Other alumni associations nationally have taken notice of the “transformative” gift, he said.
ALUMNI AWARDS REPORT:
Mr. Davis shared the recent decision of the Fred Ellsworth Medallion Selection Committee to award two medallions at the annual fall Board meeting dinner September 19. The two medalists are former national chair Jay Howard, j’79, of Austin, Texas, and Margaret Shirk, c’39, Lawrence, a longtime volunteer and former Association staff member. Mr. Howard led the effort to help improve KU student recruitment and create the Jayhawk Generations Scholarship for out-of-state legacy students. Mrs. Shirk helped organize and host countless Association reunions and other events through the years, and her family’s barn was the site of many parties for KU students.
Mr. Peterson announced the winners of the Dick Wintermote Volunteer of the Year for outstanding chapter leaders and the Mildred Clodfelter awards for KU volunteers who have served 10 years or more in their communities. Both groups will be featured in upcoming issues of Kansas Alumni magazine and on the Association’s website.
The 2014 Wintermote recipients are:
•Nick Kallail, d’94, l’07, Houston
•Philip Moran, e’80, Houston
•Chris Colyer, b’04, l’09, Phoenix
•Bevan Graybill, c’08, Oklahoma City
The 2014 Millie winners are:
•Dee Burrows Clifford, c’71, Reno, Nevada
•Warren Corman, e’50, Lawrence
•Kelly Finnerty, e’98, Minneapolis, Minnesota
•Leland Hansen, p’71, Hiawatha
CHANCELLOR’S REPORT:
Chancellor Bernadette Gray-Little discussed highlights from the 2013-’14 academic year, which was the third year of implementing the University’s strategic plan, Bold Aspirations, and the first year of the new undergraduate general education curriculum, the KU Core. She shared several examples of KU’s achievements and ongoing challenges:
• Fall 2013 marked the second straight year of growth in freshman enrollment and another record year in the average ACT scores of these new students.
• Graduate enrollment at the master’s level is becoming more challenging as online courses proliferate. KU now offers an online master’s degree curriculum in special education, ranked first in the nation among public universities.
• National rankings for the schools of Business, Law and Medicine saw double-digit increases, and every department in the School of Engineering improved in rankings.
• As part of the Far Above campaign, KU continues to seek support for graduate fellowships to help strengthen recruitment of graduate students.
• The Kansas Legislature funded the Health Education Building with $25 million in State General Fund-backed bonds, and in two weeks KU will announce a matching private gift. In addition, the University has earmarked $15 million from other sources to launch construction of the building, which will enable the School of Medicine to increase enrollment to help meet the state’s critical shortage of physicians.
• KU has recruited three renowned scholars to join the faculty as Foundation Professors, part of a program to help strengthen research and teaching to sustain KU’s membership in the prestigious Association of American Universities (AAU). The new faculty members are Christopher Beard in paleontology, David Roediger in American Studies and history, and William Picking in genetics and infectious diseases. Recruitment of nine additional Foundation Professors is underway.
Following her remarks, Chancellor Gray-Little answered questions from Board members, including Dr. Brada, who asked about KU’s recruitment of academic “all-stars” from Lawrence high schools. Acknowledging the tough competition for these students, she said KU recently hosted its third annual Top Scholars reception for local students. The event was well attended and helped demonstrate to these students that they can find a vastly different and broadening experience at KU, even though it is the “local” university.