Prior to the official call to order of the meeting of the Board of Directors, Lander Medlin introduced Dr. A. Lee Fritschler, Assistant Secretary for Postsecondary Education, who spoke to the Board concerning some of the major shifts in postsecondary education that he and the Department of Education anticipate during the next several years.

The major issues were:
Teacher quality and the shortage of qualified teachers
Access to higher education (tuition tax deduction legislation, etc.)
Distance learning and the Internet (will affect facilities in many ways). Are we going to have a new form of degree granting institution or organization?
International education
A lively and interactive question and answer session occurred thereafter.

Now freed from some of its operational responsibility for managing financial aid*, the Department of Education has embarked on some new projects. One of them involves the organizing of 75 focus groups to gather information and feedback for the Department. The creation of a website was also part of the project. They asked people simple questions such as, "What should the Department of Education be focusing on in the next five years?" From the feedback the Department of Education receives, it will formulate an agenda for the federal government's role and involvement in higher education for the next five years.

Prior to the official convening of the meeting, Maggie Kinnaman, President, gave a short but excellent presentation on leadership.

Maggie Kinnaman, President, officially opened the meeting of the Board of Directors; welcomed everyone; and thanked them for their active participation and involvement as a Board member.

Motion (Besspiata): To accept the consent agenda. Seconded (Reuck): Motion passed unanimously.

The consent agenda consisted of the following: Approval of Minutes (Tab 1); Professional Leadership Center (PLC) Report (Tab 2); Finance Report (Tab 3); President's Report (Tab 4); Immediate Past President's Report (Tab 5); President-Elect's Report (Tab 6); Executive Vice President's Report (Tab 7); Vice President for Educational Programs Report (Tab 8); Vice President for Information Services Report (Tab 9); Vice President for Professional Affairs (Tab 10); Reports of the Regions (Tab 11); and Standing & Ad Hoc Committees and Task Force Reports (Tabs 12 - 20)

Phil Cox reported that the minutes from both Board meetings and the Executive Committee Meetings in June 1999 were approved via e-mail. He reminded new members that there is an expectation that members will go to the Website and review for approval.

A. STRATEGIC PLAN (Draft Four)
President, Maggie Kinnaman and Lander Medlin

Maggie Kinnaman, Gary Reynolds, Phil Cox, and Lander Medlin reviewed the strategic plan as formulated and distributed to the full Board via e-mail in December 1999. Maggie Kinnaman asked the members if they had had sufficient time to review or digest the strategic plan (draft four). Mike Reuck asked for a simple explanation of the strategic plan.

Maggie stated that the strategic plan is a tool that will provide focus, structure, and continuity to the accomplishment of APPA's overarching goals. Further, we should be able to both qualitatively and quantitatively measure whether we are achieving those goals.

It was suggested that the final draft incorporate a stronger emphasis on recognition.

Motion (Rice): That the Board of Directors adopt the strategic plan as presented and that it be reviewed annually by the Board of Directors. Seconded (Christenson): Motion passed unanimously.

Doug Christensen reviewed the three components of the new PLC:

THE PLC ADVISORY COUNCIL STRUCTURE

The advisory council would consist of a total of eleven members with 3 APPA appointed reps on a three-year rotating basis and the senior APPA member as the chair. We would meet at APPA's annual meeting to keep costs low. The other organizations would pick up their own expenses except waiving the annual meeting registration.

Their main responsibility is to advise the three Vice Presidents and their committees (Education, Professional Affairs, and Information Services) on the three components of the leadership academy, (such as curriculum modifications, viable research projects, future research needs, and qualified fellows candidates, etc.) for further recommendations and/or approval to the Board, as required.

Doug asked for feedback from the Vice Presidents and the Board. Jack Colby said that Doug and his group have really responded to the comments to integrate the advisory council into the existing structure and governance.

President Kinnaman will establish an ad hoc committee to establish the PLC Advisory Council for the next year.

Doug thanked the Board for their long-standing support to bring this important program to fruition. The Board in turn thanked Doug Christensen, Bill Daigneau, Pete van der Have, and Jack Hug for their dedicated effort on this project.

Maggie Kinnaman, chair of the SAM Task Force, gave a presentation on the new look of the SAM Model as it has been revamped and revitalized to include overall qualitative descriptions and various performance indicators against "balanced score card" perspectives, and steeped in the Baldridge criteria. The task force recommended completion of a comprehensive survey and a substantial revision of the current book. Although the proposed cost for both is substantial, no Board action nor motion was deemed necessary as the cost will be borne as "cost of production" to be recouped from future book sales.

Motion (Reynolds): To recess meeting until Saturday morning. Seconded (Rubertone): Motion passed unanimously.

RECESS

Phil Cox reported on the By-Laws committee meeting which took place on the previous morning.

Recognition of State/Local Chapters Phil Cox and Lander spoke about the state and local chapters and their requests to fall under APPA's exemption status and use APPA for services (labels, materials, web links, presentations, attendance, etc.). Technically, the local/state chapters are recognized by the regions. APPA will continue to provide services. No formal action(s) deemed necessary at this time.
Recommendation for By-Law Change

The purposes of the Association, subject to the limitations of Article XVIII hereof, are to act as a non-profit corporation whose purposes are educational and charitable as defined in Section 501 (c) (3) of the Internal Revenue Code of 1986, as amended, and include, but are not limited to developing and maintaining high standards in administration, care, operation, planning, and development of facilities used by institutions of higher education; to promoting professional ideals and standards to better serve the objectives of higher education; and to engage in such other related activities as may be desirable or required to fulfill the purposes and objectives of the Association.

Seconded: The motion was passed unanimously.

The Board approved placing this proposed change to the by-laws on the spring ballot for voting by the members.

A proposal to establish an individual membership category was discussed. Because of some of the predicted difficulties that could arise vis a vis Affiliate and Business Partner memberships, it was the consensus that further consideration was needed before proposing such a change to membership. The definition of individual members needs great clarity and discussion among the regions.

An idea was discussed about establishing a dues matrix for business partners that would adjust dues amounts according to business size or volume. There was reluctance to pursue this without first testing the concept with some of our business partners.

Pete van der Have stated that Jim Demarest had to withdraw his name as a candidate at this time given his recent job change. There will be two positions with only one candidate. He feels this sends the wrong message(s). He would like to reconvene the Nominating Committee during lunch. The Board agreed.

FINANCE:

Phil Cox reiterated that we refinanced the mortgage on APPA's headquarters office from a 30 year to a 15 year mortgage at 7.5%. This move saved the association close to one million dollars over the life of the mortgage. Also, Chong-Hie Choi saved APPA $24,000 - $28,000 by avoiding the pre-financing closing penalty by the previous mortgage holder.

Lander gave highlights of the status of this fiscal year's (1999-2000) revenues and expenses. APPA is still on target to achieve its $94,000 in cash reserves plus an additional $64,000 over budget and targeted reserves. Last year (1998-99) APPA ended the year with a $385,000 surplus. $165,000 was put in cash reserves.

The following items are contributing to APPA's positive projections:

The strategic target for revenue is 3% above expenses based upon Board policy introduced a year ago. One third of our revenue base is derived from membership dues and the other two thirds from non-dues revenue generating programs such as publications and educational programs.

Lander gave a short presentation of a comparative summary with APPA's peer CHEMA organizations. The graphs covered such areas as: total revenue; dues as a percentage of total revenue; number of institutional members; number of corporate members; conferences as a percentage of total revenue; education programs as a percentage of total revenue; the average conference fee; number of conference attendees; exhibitor fees; publications as a percentage of total revenue; staff size; revenue per staff.

Lander asked that if the Board would like other data points, please do not hesitate to ask and APPA will see that it is available.

Opportunities for APPA include conference exhibitor fees, increased sponsorships, publications sales and support.

The American Society for Association Executives (ASAE) produces similar informational reference/data points. Given a similar budget amount and size operation, there are three operational ratios that are interesting to point out:

1) Salary Cost Total Expenses (APPA = 23.63%; ASAE Median = 31.2%, Average = 29.5%) 2) Total Income Total Staff (APPA = $221,454; ASAE Median = $135,213, Average = $157, 842) 3) Personnel Expenses (Salary & Benefits) Total Income (APPA = 28.9%; ASAE Median = 34.1%, Average = 29.4%)

BUDGET:

Lander then focused on a summary of the 2000-2001 budget. She highlighted the most significant shifts by both program area and line item revenue/expense amounts as:

Lander explained the importance of a strategically targeted surplus to protect the association from unforeseen circumstances. The association wants to do what many people need to do in their personal lives. This approach is in the association's best interests in both the short and long term.

Board Policy approved in July 1998 (San Jose Annual Meeting) established two cash reserve targets: 25% of the operating budget; and, 10% of the value of APPA's building, equipment, furniture and fixtures. The total estimated average target at any given time is approximately $950,000 - $1,000,000.

There was much discussion about the budget request of 5% for staff salary increases. Staff are presently positioned slightly about the 50th quartile when compared to other similar positions across the association industry. Our target is to achieve salary ranges in the 75th quartile. It is a very competitive business and most important that APPA continues to offer salaries and benefits that are competitive to help us to retain good staff. The real issue is value to the membership.

There was also significant discussion surrounding the dues matrix. Lander stated that our highest vulnerability in the loss of schools has been those institutions with less than 4000 FTE/$25 million GIE. The proposed differential dues assessment was designed with this concern in mind. Also, there will be no additional increase in the dues for associate affiliate or for the international membership. A sliding scale approach has been used by APPA before and is also something that other CHEMA groups use as well. APPA may want to review the potential of a sliding scale for Associate memberships in the future.

Motion (Reynolds):That the dues matrix be adjusted to a 3% increase across the board. Seconded (van der Have): The motion passed with one abstention (Besspiata).

Given the slippage in the institutional membership rank, Phil Cox stated that if the association is serious about the work of the membership committee, then one meeting at the annual meeting is not adequate. He requested a permanent mid-year meeting as submitted in the BPR.

Motion (Besspiata): To accept the BPR for Membership Committee. Seconded (Reuck): The motion passed unanimously.

Motion (Rice): To accept the budget as proposed with the exception of the modifications to the dues matrix. Seconded (Reuck): Motion passed unanimously.

Pete van der Have reported that the slate of candidates for the official 2000 ballot (as of February 4, 2000):

Gary Reynolds, President-Elect, running unopposed.

James O. Roberts, Vice President for Educational Programs, running unopposed. The Committee will try to secure a second candidate to nominate along with Jim Roberts.

Motion (Reynolds): To accept approaching Hildo Hernandez to be on the ballot for Vice President of the Educational Programs Committee. Carol Trexler would be approached if Hildo cannot serve. If neither of them can serve, then Mike Besspiata would permit his name to be placed in nomination. Seconded (Reuck): One abstention (Besspiata), Motion passed.

Robert W. Bertram and Vicki DeWitt are nominated for Vice President for Information Services.

The following items were highlighted as part of the regional representatives discussions:

The Annual Meeting clearly targets higher level of officers; cost of travel may still be an issue affecting attendance; day rates could be a good tool to drawing more individuals locally; the spouses program needs to strengthened; the amount of food needs to increase; more inclusion of the local host committee in the meeting planning; and continuous improvement of the educational programming should be a focus.

Earl Smith wondered if we would lose membership attendance at our regional meeting if we co-located. (captures Earl's comments) He thought that the national meeting is not capturing the same feeling found at the regional meetings. Also, he speculated that maybe the small schools cannot afford the cost of the Annual Meeting. He felt that having day rates for the Annual Meeting and publishing them may improve accessibility to the Annual Meeting. Earl stated that the Annual Meeting appears to be geared towards a higher level of facilities officer. He also felt that there were better education sessions at the regional level.

Maurice Matthewson explained how AustralAsia co-locates. They have joined with ATEM for seven years. He thinks there is a huge advantage in getting larger numbers of attendees. He thinks the greatest benefit is the broad selection of papers/presentations.

Maggie Kinnaman thanked Mike Besspiata for his service as the Senior Regional Representative to the Executive Committee. She felt he has done a great job.

Jack Colby reported that the criteria is essentially finished for the FMEP and the Awards for Excellence (AFE). Lander is seeking some outside help to fold the new criteria into new brochures. Her desire is to have the materials available for distribution at the Annual Meeting.

An important point was made about the number of suppliers APPA tries to achieve in the Exhibit Hall. Because APPA has around 210 vendors, we have had to rent a convention center at $20,000 - $30,000. The result is not doing as much business with the hotel, fewer rooms, splitting members amongst hotels. Maybe APPA should cut down on the number of vendors and increase the price. There is also the ability to go after more big name speakers. The Board agreed that this approach of limiting the number of suppliers/exhibitors and focusing on the "one roof" and hotel, delivery system is a model to be pursued.

Gary Reynolds said that it will take time to implement the changes due to the contractual agreements.

APPA's Upcoming Annual Meetings

Motion (Reynolds): Staff to go ahead with co-location plans with NACUBO for 2003 and 2006 in Hawaii. Seconded (Rice): Motion passed unanimously.

MOTION (Reynolds): To adjourn the meeting. Seconded (Rice): Motion passed unanimously.

Maggie thanked everybody for his or her efforts.