Board of Trustees Meeting - Massachusetts Maritime Academy

MASSACHUSETTS MARITIME ACADEMY
BOARD OF TRUSTEES MEETING
International Maritime Business Center
Two Hundred and Ninth Meeting of the MMA Board of Trustees
Thursday, 10 March 2011
PRESENT:
.
ABSENT:
Trustees Bullard, Covel, Duggan, Fields, Hammon, Jearld, Locke, Mattson, and Cadet Silvis
Trustee Heineman and Chairman Kelly
CALL TO ORDER
Vice Chairman Covel called the meeting to order at 9:06 a.m. The Board meets a quorum.
APPROVAL OF MINUTES
Vice Chairman Covel requested a motion to approve the Board of Trustees minutes from 09 December
2010. Trustee Bullard motioned to approve the Board of Trustees minutes from 09 December 2010 as
written, seconded, MOVED unanimously.
CHAIRMAN’S OPENING STATEMENT
Vice Chairman Covel welcomed the Trustees and administration and stated he will be acting Chairman for the
meeting today due to Chairman Kelly’s absence. He reported Chairman Kelly sends his regards to the Trustees
and administration. Vice Chairman Covel welcomed former Trustee Colonel William Sinnott and recapped
Colonel Sinnott’s five years of service (appointed in December 2005) to the MMA Board of Trustees. Colonel
Sinnott served as Chairman of Governance and Presidential Appraisal Process Committees. Vice Chairman
Covel thanked him from the Board of Trustees for his dedication, service, and hard work. President Gurnon
thanked Colonel Sinnott for his courage, dedication, and quiet persistence which was backed by knowledge,
strength, and his ability to provided leadership to move the Board forward. Colonel Sinnott stated it was a
pleasure to serve on the MMA Board of Trustees, and he commended the institution and the Board for giving
the young women and men at the Academy the tools to achieve to great levels. He stated he was honored to
serve on the Board of Trustees and thanked the administration, fellow Trustees, and the administrative staff for
their support and vision. Colonel Sinnott was presented with a Chelsea Clock.
Vice Chairman Covel welcomed Mr. Louis Ricciardi, Vice Chairman for the Board of Higher Education (BHE),
and a member of the Board of Trustees at Bridgewater State College. Mr. Ricciardi praised the Academy for
their dedication to the young women and men who attend the institution. He recapped the current vision project
the Board of Higher Education is currently working on in regards to graduate success rate; the need for remedial
high school education; and institution of public higher education rates. He discussed the metrics of the vision
project and stated Massachusetts Maritime Academy is doing a tremendous job. He thanked the administration
and Board for their high expectations of students and looks forward to working together.
Mr. Ricciardi reported that the Board of Higher Education will be meeting on 22 March 2011 to establish a
standing committee for Executive Compensation; he will be the Chairman for the committee who will establish
guidelines and clear job performance metrics to moving presidential compensation back to the local Board of
Trustees at the university level. He thanked RADM Gurnon for his dedication to public higher education.
Vice Chairman Covel then requested the President’s report.
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PRESIDENT’S REPORT
President Gurnon reported on the delays with the Pande Dining Hall renovations; the alternative dining servery
setup; and he thanked the students and families for their understanding of the construction delays. He reported
Sea Term 2011 was supremely successful and returned with all 596 cadets on board. He stated that it is a
dangerous and unforgiving environment on cruise and commended CAPT Thomas Bushy, Assistant
Commandant, Stephen Kelleher, cadet officers, and crew for a job well done.
President Gurnon reported on the status of the 5-year Strategic Plan:
4.1 Senior Staff meets weekly and communications are going well; 30% of the staff is female; and they are
targeting to improve diversity of senior staff.
4.2 Growth in student population continues with 315 deposits and a waiting list; the Academy is requiring
university status for enrollment; first year retention is currently 84%; four year graduation rate has fallen
slightly from 55% to 47% due to increase in the cost of public higher education; the Academy’s university
standards; and students graduating from high school are unprepared. Entering class diversity goals were
stretched to reach 12% female and 9% underrepresented populations; currently statistics are: females 8.5% and
underrepresented groups are at 7.5%. The President compared MMA to other Maritime Institutions and their
percentages of female and underrepresented groups were higher due to their sister schools combining
regimental and civilian statuses.
4.3 Graduate programs are going well; NEASC visit is scheduled for April 2011; USCG audit will be
conducted in November 2011; tenure-track faculty hiring is going well to offset growing enrollment and
retirements; continuing to promote Energy management minor; ABET engineering program submitted to all
college committee governance; exchange programs are going well with Shanghi Maritime University and
Panama; Shanghi Maritime University exchange program has been expanded to include Marine Safety and
Environmental Protection major with an additional 5 cadets enrolled (15 cadets/per semester); Dalian Maritime
University has agreed to two years of study in Dalian, China, and final two years of program at MMA (20
students/each year). Dalian students will pay out of state international rates; and the Academy is exploring a
similar program with the University of the Virgin Islands.
4.4 ABS Information Commons project is continuing ahead of schedule and under budget; ADA elevator
project is in progress; training rooms, cardiovascular; and locker rooms are complete; and decentralization of
the Power Plant is moving forward for the repurpose of existing buildings. The Massachusetts State College
Building Authority (MSCBA) acquired the Beachmoor property for $1,600,000.00; the note will be repaid by
cadet housing and parking along with the Camps & Conferences department soliciting for events.
Vice Chairman Covel requested the status on funds to bring the Beachmoor up to current codes. CAPT Francis
McDonald reported that Phase I costs are: MSCBA funded $50,000.00 for furniture; $25,000.00 for fiber-optics
upgrade; and the Academy has expenses of approximately $15,000.00 - $20,000.00 in Academy labor to bring
the building up to building codes. Phase II will be assessed and planned after the first season of events hosted
this summer.
4.5 Academy continues to move forward on renewable and sustainability projects. Discussion ensued
regarding: T. S. Kennedy life expectancy of 25 more years; loss of $800,000.00 earmark for a nuclear powered
simulator; pursuing of grants and processes; steam, gas, and motor licenses; American College and University
Presidents’ Climate Control Plan (ACUPCC); nuclear versus steam energy; and carbon neutral market.
4.6 MMA financial oversight continues to hit targets; maintaining rainy day fund; remaining vigilant with cost
of operations; FY11 budget will be in the black; and MMA continues to have the lowest price compared to
other Massachusetts state universities. Updated financial result will be posted to the dashboard.
4.7 Fundraising will increase total performance with investors but is a struggle; two potentially large donor
gifts will not come through; this year fundraising priorities will not hit targets.
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4.8 Continue to increase effectiveness of emergency preparedness with two drills conducted this year; another
drill scheduled for 24 March 2011; and MMA staff has continued to improved awareness of procedures and
training.
4.9 Measuring student outcomes continues.
4.10 The Academy has identified and reorganized departments (Division of Graduate and Continuing
Education, Boat Donations, and Camps & Conferences) who will make great contributions to add to revenues.
Discussion ensued regarding the Fredrickstad. CAPT Thomas Bushy reported the Fredrickstad is on the market
for charter or sale for $1,200,000.00; available to sell in April; and the Academy is willing to negotiate prices,
and lease agreements.
REPORTS FROM CAMPUS CONSTITUENTS
Regimental Commander
Academic Year 2010/2011 Regimental Commander Executive Officer 1/C Jonathan White reported that the
regiment is in good standing; Sea Term 2011 was successful returning with 596 cadets; Spring semester started
27 February 2011; senior license cadets are studying for Coast Guard License Exams which will take place in
May; application process has started for cadet leadership; fifteen (15) Shanghai Maritime University (SMU)
students have arrived at MMA for spring semester; sixteen (16) MMA cadets have arrived safely at Shanghai
Maritime University for spring semester; cadet leadership is looking forward to the NEASC visit; and Change
of Command is 25 May 2011.
Discussion ensued utilizing outside sources for preparing for Coast Guard Exams.
Student Government Association
Academic Year 2010/2011 SGA Sea Term Representative1/C Cadet Robinson reported he is pleased and proud
of the accomplishment of the SGA. SGA maintained a strong presents Sunday at sea with liberty days and
Vegas night; junior class ring dance is 05/21 at the Seaport Hotel, Boston; senior dance preparations are in
process; and Emery Rice Day will be a very competitive intercompany competition ending the day with a well
known comedian. Over the course of the semester, projects to be completed include: a dress white jacket rental
program; permanent storage facility for bikes, kayaks, and other equipment; and continuing the social programs
to provide events every week throughout the term. The SGA budget for FY12 will be presented in May.
STRATEGIC INFORMATION REPORTS
Chairman Report
Vice Chairman Covel requested President Gurnon to report on the history of the Emery Rice Scholarship
funding. President Gurnon reported that the Academy is presenting a motion to the Board of Trustees to decline
funding from Foundation for Emery Rice Scholarships to assist Foundation in building their endowment. The
Academy funds scholarships, Enterprise Magazine, and staff. Discussion ensued regarding the Foundation
endowment and funding. Vice Chairman Covel requested to continue the discussion at the Finance Committee
scheduled for 1300 today.
Vice Chairman Covel requested a motion to approve Chairman-FY11-03 to decline to submit a request
for funds from the Massachusetts Maritime Academy Foundation for Academic Year 2011/2012. Trustee
Bullard motioned to approve Chairman-FY11-03 to decline to submit a request for funds from the
Massachusetts Maritime Academy Foundation for Academic Year 2011/2012 as written, seconded,
MOVED unanimously.
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Education Committee
Committee Chair Jearld welcomed Trustee Jacqueline Fields to the Board.
Committee Chair Jearld requested a motion to approve Education-FY11-03 to consider approving and
accepting Honorary Degree Recipients for Commencement 18 June 2011. Trustee Fields motioned to
approve Education-FY11-03 to consider approving and accepting Honorary Degree Recipients for
Commencement 18 June 2011 as written, seconded, MOVED unanimously.
Committee Chair Jearld reported the Education Committee unanimously approved Education-FY11-04
to consider approving title changes from Dean to Vice President for the positions of Dean of Enrollment
Management and Dean of Advancement as written at its 24 February 2011 meeting.
Committee Chair Jearld reported on 24 February 2011 Committee Day meeting: the ABS Information
Commons is scheduled to be completed in June 2011; NEASC is on schedule with the visiting team to visit 3 –
6 April 2011; NEASC has requested to meet with the Board of Trustees the evening of 3 April 2011 beginning
at 5:00 p.m. in the International Maritime Business Center followed by a social hour and dinner beginning at
6:00 p.m.; the Board of Trustees will meet with the NEASC team for a second meeting on Monday, 04 April
2011 at 9:00 a.m.; the ABET proposal is on schedule to be submitted to governance in the spring and positive
response is anticipate; ABET report will be ready for Board of Trustees vote in June; spring enrollment is the
highest enrollment in history at MMA; a representative from Dalian Maritime University will be on-campus for
half of the spring 2011 semester researching the possibility of a joint degree program; student faculty ratio is 14
to 1; the Maritime Academy Council (MAC) is sending a formal letter to Coast Guard Headquarters with regard
to policy changes of Coast Guard exams, these changes could negatively affect maritime academy cadets; and
CAPT Bradley Lima was part of the US delegation representing the maritime academies; Norway presented
their position paper at the IMS ST-42 meeting in London on 24 – 28 January 2011 challenging the United States
position on sea service equivalencies; the IMO-STW42 Chair tabled the issue.
Trustee Bullard requested a show of hands for the Trustees present as to who will be attending the NEASC
meetings. All Trustees present will plan on attending. Trustee Bullard also requested an update on the “return
on investment” regarding the study of salaries of graduates. CAPT Lima stated a report will be presented on
Committee Day in May.
Discussion ensued regarding retention of freshmen class. CAPT Lima reported the Academy has had the
highest retention rate to date; 320 freshmen are enrolled for spring courses with 24 new cadets who went
through spring orientation; and 71 freshmen declared Marine Engineering major and 58 declared Facility
Engineering major signifying a shift in majors. Discussion continued regarding Coast Guard exams process and
steam versus diesel licenses.
CAPT Lima reported that 40% of freshmen classes need remedial math. Mr. Ricciardi stated the BHE will meet
in March with an agenda item to discuss high schools to require four years of math to get into public
universities. He stated studies have shown that students with four years of math will graduate with university
status from high school.
Trustee Fields requested qualitative data with students who have academic concerns. RADM Gurnon reported
graduation and retention rates of underrepresented groups and women are high. Trustee Fields stated that
would be an attractive reason for underrepresented groups to attend MMA.
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Governance Committee
Committee Chair Bullard reported on 24 February 2011 Committee meeting. He reviewed the Board of
Trustees self-evaluation and requested that the form be e-mailed by the Academy to him so he may distribute to
Trustees and collect data prior to the NEASC visit. Trustee Hammon requested a statement on the selfevaluation
to describe how the members of the Board of Trustees are appointed.
Committee Chair Bullard motion to amend and approve Governance-FY-03 to consider the
recommendation from the Governance Committee to adopt the Board of Trustees Self-evaluation
substantially described in the form attached, seconded, MOVED unanimously
Committee Chairman Bullard reported that the Presidential Appraisal Process has been streamlined and the
timeline has been changed. Trustee Heineman chaired the Presidential Appraisal Process Committee and has
sent out the documents to the committee. The process starts 15 April 2011 when the President submits his selfevaluation
to the Board and ends 01 July 2011 with a formal report submitted to the Commissioner Freeland,
Board of Higher Education.
Committee Chairman Bullard reported Chairman Kelly appointed Trustees Bullard, Hammon, and Mattson to
the Ad hoc Nominating Committee. Committee Chairman Bullard will send out the standard form with current
committee assignments and will report in June.
The Bylaws Committee will report at Committee Day on 26 May 2011.
Facilities & Marine Operations Committee
Committee Chair Locke thanked CAPT Thomas Bushy and his staff for safely bringing back 596 cadets. CAPT
Bushy stated the credit goes to department heads, Chief Mate Ford, Chief Engineer, and Assistant Commandant
Kelleher.
Committee Chair Locke reported on 24 February 2011 Committee Day: he recapped capital projects;
decentralization will start in May; Pande Dining Hall delays, once complete it will be an asset; security lighting
and safety issues are being addressed regarding the distance of the Beachmoor facility from the rest of the
campus; MMA will host twelve events, six weddings this summer. The steering system and the Reverse
Osmosis Watermaker were working well on board ship during sea term; and the building of the Simulation
Technology department continues.
CAPT Bushy announced the new manned model will be commissioned on 06 May 2011.
Student Life and Athletics Committee
Committee Chair Mattson reported on Committee Day: 596 cadets returned safely from sea term where they
visited Vera Cruz, Bridgetown, and San Juan; discipline issues were minimal and CAPT Rozak reported the
Senior Officers did a great job; Spring Semester Orientation began on 22 February 2011 with incoming cadets
and 15 Chinese students from SMU. 104 athletes were added to the honor roll, highest number in three years
with spring numbers expected to exceed; cadet participation in athletics is at 28.6% for varsity and 40% for
intramural/club sports; veteran status indicator is included in acceptance letters; female and underrepresented
applications are at the same number as last year; deposited numbers for both groups are up slightly and the
deposit fee has increased to $400.00. Welcome Aboard event is scheduled for 02 April 2011; Emery Rice
Scholarship interviews were conducted on 05 March 2011; and the MMA Parents’ Association raised ten (10)
$1,000.00 scholarships for sea term.
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CAPT Stevenson reported current status of applications and deposits: 869 applications have been received; 81
from females; 70 from underrepresented groups; 482 appointment letters have been sent with 319 deposits
received (27 deposits are from females and 25 deposits are from underrepresented groups).
Discussion ensued regarding the increase in enrollment for public education with regards to facilities space;
underrepresented groups; families are investing in public higher education; and the prestigious Hall of Black
Achievement awards presented at Bridgewater State College.
Audit Committee
Committee Chairman Covel reported on Committee Day: O’Connor & Drew Certified Public Accountants
addressed the Audit Committee and reported the state audit was clean with no issues.
Committee Chairman Covel requested Mr. Michael Joyce, Vice President of External Relations and Finance to
give background regarding Audit-FY11-01 to consider delegating to the President (or his designee) the
authority to enter into a three (3) year contract with O’Connor a & Drew Certified Public Accountants. Mr.
Joyce gave a brief overview of the process and stated net savings will be approximately $100,000.00 to enter
into this new agreement.
Committee Chair Covel requested a motion to approve Audit-FY11-01 to considering delegating to the
President (or his designee) the authority to enter into a three (3) year contract with O’Connor & Drew
Certified Public Accountants. Trustee Silvis motioned to approve Audit-FY11-01 to considering
delegating to the President (or his designee) the authority to enter into a three (3) year contract with
O’Connor & Drew Certified Public Accountants, seconded, MOVED unanimously.
Committee Chair Covel reported he reviewed the Academy hiring processes for the past fiscal year with CAPT
Francis McDonald and Ms. Elizabeth Benway, Director of Human Resources. He reported he found no issues
or problems, policies have been followed, and he was satisfied that applicants were getting their fair access and
considerations. He stated that the review will always be open and if there are any further concerns to direct
them to the Audit Committee. RADM Gurnon stated he had no concerns regarding the hiring audit because
policies were executed correctly.
Finance Committee
Committee Chair Duggan reported on Finance Committee Day meeting: FY11 budget was discussed; Morgan
Stanley and Eaton Vance investors reported on MMA investments; and strategic growth in regards to financial
aid needs (the average aid provided in Massachusetts is 62%; MMA is providing 54%).
Committee Chair Duggan requested a motion to approve Finance-FY11-03 to consider approving and
accepting the attached Credit Card Policy. Trustee Bullard motioned to approve Finance-FY11-03 to
consider approving and accepting the attached Credit Card Policy, seconded, MOVED unanimously.
Committee Chair Duggan requested a motion to approve Finance-FY11-04 to consider delegating to the
President should the Orientation mini Cruise be added to Orientation 2012, the authority to authorize a
one-time $145.00 increase in the FY12 Orientation Fee for incoming cadets. Vice Chairman Covel
motioned to approve Finance-FY11-04 to consider delegating to the President should the Orientation
mini Cruise be added to Orientation 2012, the authority to authorize a one-time $145.00 increase in the
FY12 Orientation Fee for incoming cadets, seconded, MOVED unanimously.
Committee Chair Duggan requested a motion to approve Finance-FY11-05 to consider authorizing and
approving a tuition and fee increase of up to 4% for the Academic Year 2011/2012 for Undergraduate,
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Continuing Education courses, and Graduate Programs. Vice Chairman Covel motioned to approve
Finance-FY11-05 to consider authorizing and approving a tuition and fee increase of up to 4% for the
Academic Year 2011/2012 for Undergraduate, Continuing Education courses, and Graduate Programs.
seconded, MOVED unanimously.
RADM Gurnon reported that even though we require students to live on campus, have a mandatory sea term,
purchase uniforms, sea bags, and laptops, MMA still has the lowest tuition and fees in the public university
system. Trustee Bullard requested the return on investments regarding graduates salaries for May Committee
Day and expressed it will be a useful tool in recruiting students.
Discussion continued regarding financial aid and meeting the needs of students. Raising financial aid will be
helpful with the Academy’s diversity recruitment. Trustee Silvis added to the discussion that due to the
regiment, students who do not qualify for financial aid have student loans and can’t work part-time jobs to
supplement tuition and fee costs. Mr. Ricciardi added that Bridgewater State College wrestles with the same
issues: keeping value with excellent education and permitting access to a great education to families in need.
RADM Gurnon discussed FY12 budget will be adding $400,000.00 to financial aid to bring MMA’s total
contribution to aid up to $600,000.00. This would raise the percentage of aid from 54% to 56% and slightly
close the gap between MMA and other universities.
Committee Chair Duggan requested to discuss and approve Finance-FY11-06 to consider approving and
accepting the attached Investment Policy until the afternoon (1300 hours) Finance Committee meeting.
The Finance Committee is authorized to approve changes to the Investment Policy by a Board vote in
December 2010 (Chairman-FY11-01).
Committee Chair Duggan requested a motion to approve Finance-FY11-07 to consider delegating to the
President should the itinerary of Sea Term 2012 include a transit of the Panama Canal the authority to
authorize a one-time $250.00 increase in the FY12 Sea Term Fee per Sea Term cadet. Trustee Locke
motioned to approve Finance-FY11-07 to consider delegating to the President should the itinerary of Sea
Term 2012 include a transit of the Panama Canal the authority to authorize a one-time $250.00 increase
in the FY12 Sea Term Fee per Sea Term cadet, seconded, MOVED unanimously.
RADM Gurnon stated this motion gives the Sea Term Committee an option to transit the Panama Canal and to
do the “Shellback Ceremony.” Sea Term during good economic times rotates between Transatlantic;
Caribbean, and Panama Canal/Equator Crossing voyages. Mileage and oil prices factor into the Sea Term
Committees’ discussion.
Committee Chair Duggan requested a motion to approve Finance-FY11-08 to consider delegating to the
President the authority to authorize an increase of $25.00 for onsite and offsite cadet parking fees for
FY12 and future years. Vice Chairman Covel motioned to approve Finance-FY11-08 to consider
delegating to the President the authority to authorize an increase of $25.00 for onsite and offsite cadet
parking fees for FY12 and future years, seconded, all in favor: 8 votes yes; 1 vote no, MOVED by a
majority vote.
Discussion ensued regarding parking issues. Parking permits go into general funds; parking tickets go towards
scholarships. Trustee Silvis defended his student body constituents in regards to students who are not eligible to
receive financial aid or financial support of their parents take out student loans. The additional increases in
tuition and fees, lab fees, sea term fees, and parking fees have a financial impact on this group of students who
have loans.
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REPORTS FROM CAMPUS CONSTITUENTS
MMA Parents Association
No report.
MMA Foundation
Gary Lowe, Vice President of Advancement, reported on fundraising for FY11: some donors have not been able
to meet their original commitments but the department will invest in offering more return on investments for
donors by matching resources; more fundraising; and the cancellation of RADM Ball for FY12. Mr. Lowe
stated donors can donate online at the MMA website and can assign where the funds are used.
MMA Alumni Association
Trustee Mattson reported the membership drive is ongoing with providing 2011 graduates with a one year free
membership, an incentive for members to recruit; and alumni job board is growing. Upcoming events include:
Red Sox game; search for alumnus of the year; and Homecoming is scheduled for 16 September 2011.
AFSCME
Ms. Marissa Barros stated she had no report but would like to correct the agenda to reflect Mr. John Edwards as
the Unit II Steward.
APA
No report.
MSCA
No report.
PUBLIC COMMENT
None.
UNFINISHED BUSINESS
None.
NEW BUSINESS
None.
ADJOURNMENT
Vice Chairman Covel requested a motion to adjourn the 10 March 2011 Board of Trustees meeting at
12:43 p.m. Trustee Bullard motioned to adjourn the 10 March 2011 Board of Trustees meeting at 12:43
p.m., seconded, MOVED, unanimously.
.
_________________________
Richard Covel
Board of Trustees
Vice Chairman
_______________________
Colleen Ruggeri
Recording Secretary
Note: Next Committee Day meeting is 26 May 2011 (Bay State Conference Center).
Next Board of Trustees meeting 09 June 2011 (Bay State Conference Center).
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