meeting agenda - nmc · per board policy a-100.00 board of trustees bylaws section 1.c.ii., this...

1701 East Front Street

Traverse City, MI 49686

(231) 995-1010

[email protected]

Board of Trustees www.nmc.edu/trustees

Meeting Agenda Monday, January 23, 2017

at NMC Oleson Center, 1881 College Drive

5:30 p.m. Regular Annual Meeting

I. GENERAL BUSINESS

A. Call to Order

B. Oath of Office for Trustee Chris Bott

C. Oath of Office for Trustee Michael Estes

D. Roll Call

E. Pledge of Allegiance

F. Review of Agenda and Approval of Additions, Deletions, or Rearrangements

G. Annual Meeting Business (Pursuant to Policy A-100.00 Board of Trustees Bylaws)

i. Reading of Notice and Proof of Service

ii. Report of Secretary—Ross Childs, Secretary

iii. Report of Treasurer—President Timothy J. Nelson

iv. Verification of Residential Address

v. Conflict of Interest Disclosure Statement

vi. Board Officer Election Process

Recommend approval of 2017 Board Officer Election Process as presented.

vii. Election of Officers

Nomination and election of officers by approved process.

viii. Committee Appointments by Chair

ix. Regular Board Meeting Dates

Recommend approval of regular board meeting dates through June 2018 as

presented.

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.)

H. Employee of the Semester—Mark Liebling, Executive Director of Human Resources

I. Program Focus—Living & Learning Community Program and Bio-Medical Equipment

Technician Specialization—Ed Bailey, Director of Technical Academic Area

J. Faculty Report—Math 120, Exploring Real-World Mathematics—Deb Pharo,

Science/Math Academic Chair, and Mary Burget, Science/Math Instructor

K. Enrollment Report—Todd Neibauer, Vice President for Student Services & Technologies

L. Financial Report—Vicki Cook, Vice President of Finance and Administration

Northwestern Michigan College provides lifelong learning

opportunities to our communities.

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(231) 995-1010 [email protected]

Board of Trustees http://www.nmc.edu/trustees/

January 23, 2017, Meeting Agenda

Posted Friday, January 20, 9:00 a.m.

M. Foundation Report—Rebecca Teahen, Executive Director for Resource Development and

Foundation

N. Fellows Nominating Committee Report—Ross Childs, Committee Chair

O. Legislative Issues Report—Timothy Nelson, President

III. 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.

IV. UPDATES

P. President’s Update—Timothy Nelson, President

Q. Board Chair Update—Board Chair

V. DISCUSSION ITEMS

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:

R. Minutes of the December 19, 2016, regular meeting

S. Minutes of the January 11, 2017, special retreat and closed meetings

VII. ACTION ITEMS

T. Appointment of Fellows (Pursuant to Policy A-106.00 Other)

Recommend that Ross and Brenda Biederman be appointed Fellows of Northwestern

Michigan College with all honors and privileges pertaining thereto.

U. Board Level Strategic Goals (Pursuant to Policy A-106.00 Other)

Recommend approval of FY17 Board of Trustee Level Strategic Goals as presented.

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(231) 995-1010 [email protected]

Board of Trustees http://www.nmc.edu/trustees/

January 23, 2017, Meeting Agenda

Posted Friday, January 20, 9:00 a.m.

V. Special Liquor License (Pursuant to Policy A-106.00 Other)

Recommended adoption of resolution authorizing the organization through its duly

authorized officers, make application to the Liquor Control Commission for a Special

License for a Wine Auction to be in effect on Friday, February 24, 2017, at the

Northwestern Michigan College Hagerty Center at Great Lakes Campus, 715 E. Front

Street, Traverse City, Grand Traverse County, Michigan.

W. New Jobs Training Programs Contracts (Pursuant to Policy A-106.00 Finance)

Recommend authorization for administration to enter into a contractual agreement under

the terms of the New Jobs Training Program (NJTP) for the following companies

1. TentCraft Inc.

2. eFulfillment Service

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

Upcoming Board Meeting Dates: All board meetings are open to the public.

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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Holly Gorton <[email protected]>

Annual Meeting Notice1 message

Holly Gorton <[email protected]> Fri, Jan 13, 2017 at 5:32 PMTo: Board of Trustees <[email protected]>

Trustees:

Per Board Policy A-100.00 Board of Trustees Bylaws section 1.c.ii., this email is notification of the 2017 annual meeting of theNorthwestern Michigan College Board of Trustees to be held each year on the first regular meeting date in January. The logistics ofthe meeting follow:

Date: January 23, 2017

Time: 5:30 p.m.

Location: NMC Oleson Center, Rooms A and B

1881 College Drive


The purpose of this meeting includes the election of officers, approval of regular board meeting dates, and committee assignmentsfor the upcoming year of 2017.

Holly Gorton

Executive Assistant to the President and the Board of Trustees

FOIA Coordinator

President's Office

Tanis Building

Email: [email protected]

Phone: (231) 995-1012

BOARD MEMBER ALERT: This email is not for interactive discussion purposes. The recipient should not forward it to anyother individual or copy a reply to other board members.

Northwestern Michigan College Mail - Annual Meeting Notice https://mail.google.com/mail/u/0/?ui=2&ik=58f7295e7c&view=pt&sear...

1 of 1 1/13/2017 5:33 PM

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Members for group Board of Trustees

Email address Nickname Group statusEmail statusEmail preferencePosting permissionsJoin year

[email protected] Chris Bott member email allowed 2015

[email protected] dbishop member email allowed 2014

[email protected] Diana Fairbanks Lawsonmember email allowed 2014

[email protected] Holly owner email allowed 2013

[email protected] Kristina Jackson member email allowed 2015

[email protected] kchilds member email allowed 2014

[email protected] kweaver member email allowed 2014

[email protected] Lynne Moritz member email allowed 2016

[email protected] Marilyn Dresser member email allowed 2015

[email protected] Michael Estes member email allowed 2016

[email protected] Rachel Johnson member email allowed 2016

[email protected] Tim Nelson member email allowed 2013

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Northwestern Michigan College Board of Trustees

Regular Annual Meeting January 23, 2017


Report of Secretary The 2016 Northwestern Michigan College Board of Trustees Annual Meeting minutes were

approved on February 22, 2016, and are available online at the 2016 Trustee Meeting Materials

& Minutes website (https://www.nmc.edu/about/board-of-trustees/minutes/2016/012516-board-

minutes.pdf).

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Northwestern Michigan College

Board of Trustees

Regular Annual Meeting

January 23, 2017


Report of Treasurer

The annual financial audit for Northwestern Michigan College for the fiscal year ending June 30,

2016, was accepted by the NMC Board of Trustees on October 24, 2016, and is available online

at the NMC Audit Reports website (https://www.nmc.edu/departments/finance-

administration/audits/audit-nmc-2016.pdf).

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https://www.nmc.edu/departments/finance-administration/audits/audit-nmc-2016.pdf

https://www.nmc.edu/departments/finance-administration/audits/audit-nmc-2016.pdf

To: Board of Trustees

From: Kennard Weaver, Chair


Subject: Officer Elections Procedure The NMC Board of Trustees has no Nominating Committee, and our bylaws make no provision for one. In the past, our Chair has nominated a slate of officers and the Trustees have voted on that slate at the January meeting for each year. For 2017, I propose that we follow the attached procedure for nominating and electing officers. This will allow our Trustees to consider various candidates from among the Trustees before the meeting, and to be prepared to make nominations and vote at the meeting. The method is consistent with Roberts Rules of Order, and permits greater participation by all Trustees in the nominating and voting for officers. During the year 2017, our Policy Committee can review this process and make recommendations to the Board for consideration for the 2018 elections. Roberts Rules of Order permits several methods for nominating and electing officers, and they can all be reviewed by the Policy Committee. The attached process will be considered for approval by the Board during the annual meeting of the Board of Trustees on January 23, 2017, prior to nominating and electing officers.

MEMO Board of Trustees

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2017 Board Officer Election Process Pursuant to Board Policy A-100.00 our January meeting of the Board of Trustees will include the Annual Meeting, during which officers for the next calendar year are to be elected. Section 4 of A-100.00 lists the officers and their primary duties. Part of A-100 is set forth below. The process for nominations and elections is based on Roberts Rules of Order.

4) Officers.

a) Chairperson. The Chairperson of the Board of Trustees shall be selected by the members of the Board. The Chairperson shall preside over all meetings of the Board of Trustees. The Chairperson shall ensure that the Board's Bylaws and established rules are followed and that the Board and its standing or ad hoc committees are fulfilling their stated responsibilities. The Chairperson shall represent the Board as appropriate in various public relations functions. An individual may not serve more than three (3) consecutive years as Chairperson. In times of unique challenge to the Board, the Chair may be elected for up to two (2) additional consecutive one-year terms by a vote of no less than five of the seven members of the Board.

b) Vice Chairperson. A Vice Chairperson shall be chosen by the membership of the Board. The Vice Chairperson shall perform the duties and exercise the powers of the Chairperson during the absence or disability of the Chairperson.

c) Secretary. The Secretary shall be chosen from the membership of the Board. The Secretary shall, by affixing his or her signature, attest to the accuracy of the Board meeting minutes and shall ensure that the Board's records are maintained in an appropriate manner. The Secretary shall authorize all notices required by statute, bylaw or resolution. The Secretary shall perform such other duties as may be delegated by the Board of Trustees. The President or the President's designee shall serve as Assistant Secretary to assist the Secretary in the performance of his or her duties.

d) Treasurer. The Board of Trustees shall elect a Treasurer of the Board from its membership who will perform duties in connection with the finances of the College as may be required by the Board. The Board may direct the President to designate a chief financial officer as custodian of the funds who shall report to the President and maintain full and accurate accounts and fiscal procedures.

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Process for Election of Officers Nominations

The current Chair will ask for nominations for Chair, and he will preside over those nominations and the voting for Chair. The newly-elected Chair will then preside over nominations and voting for each successive officer until all officers are elected.

Nominations don't need a second or support. Any Trustee can nominate himself or herself. Each Trustee should offer only one nomination for each position. Since our NMC bylaws prohibit any person signing a document in more than one

capacity, any Trustee who has been newly elected should not be nominated for another office.

Nominees do not have to leave the room during the nominations, when the vote is taken, or when the vote is counted.

The Chair may continue presiding, even if he or she is one of the nominees for the office. Any Trustee may rise and decline the nomination during the nominating process. Nominations will be taken for successive offices in the order they're listed in the bylaws.

Voting

Nominations for each office will be followed by the election for that office. This allows Trustees to consider the election results of each election before proceeding to the election of another office. The Chair will take nominations from the floor for one office, and when no further nominations are forthcoming, Trustees will vote for that office. Election votes will be cast by roll call. Committees

Our NMC bylaws provide that the Chair shall appoint Trustees to Board committees. When the officer election is complete, the Chair may then proceed to appoint Trustees to the committees and the Board Chair shall designate the Chair of each committee. Succession

Election to an office of the Board does not imply that subsequent elections will follow in any line of succession. Election to each office is a new decision each year, made by the Trustees as they decide to vote in the best interests of NMC.

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NORTHWESTERN MICHIGAN COLLEGE

Board Meeting Dates January 2017 through June 2018

(Fourth Monday of each month except where noted)

Regular Meetings begin at 5:30 p.m. unless otherwise noted.

2017

January 23, 2017 - Oleson Center Room A/B, 1881 College Drive


March 20, 2017 - NMC Hagerty Center, Great Lakes Campus, 715 E. Front Street


May 22, 2017 - Oleson Center Room A/B, 1881 College Drive

June 26, 2017 - Great Lakes Campus, Room 112, 715 E. Front Street

July 24, 2017 - Great Lakes Campus, Room 112, 715 E. Front Street

August 28, 2017 - Great Lakes Campus, Room 112, 715 E. Front Street

September 25, 2017 - Oleson Center Room A/B, 1881 College Drive

October 23, 2017 - Oleson Center Room A/B, 1881 College Drive

November 20, 2017 - Oleson Center Room A/B, 1881 College Drive (3rd Monday)

December 18, 2017 - Oleson Center Room A/B, 1881 College Drive (3rd Monday)

2018

January 22, 2018 - Oleson Center Room A/B, 1881 College Drive


March 19, 2018 - NMC Hagerty Center, Great Lakes Campus, 715 E. Front Street (3rd Monday)


May 21, 2018 - Oleson Center Room A/B, 1881 College Drive (3rd Monday)

June 25, 2018 - Great Lakes Campus, Room 112, 715 E. Front Street

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Office of Human Resources

To: Tim Nelson, President From: Marguerite Cotto, Vice President of Lifelong and Professional Learning

Mark Liebling, Executive Director of Human Resources Date: January 6, 2017 Subject: NMC Employee of the Semester, Fall 2016 ____________________________________________________________________________ Rob Dreer, Assistant Chief-Unmanned Aircraft Systems Instructor– Aviation, has been selected as the NMC Employee of the Semester for fall 2016. Rob has displayed the values of Northwestern Michigan College as described below. Each of us will strive to exceed expectations for quality and service in all that we do.

Rob’s positive, can-do attitude is displayed in his responses to requests from the semester:

I can take point. No problem. I can be there. Count me in. I’ve got it. Absolutely! Happy to do it; I love my job! Don’t worry about it, I’ve got this.

Learning is at the center of all we strive to achieve. It is the foundation upon which an enlightened

citizenry and a dynamic community are built and is a lifelong process in which we are all engaged. We will exhibit foresight by monitoring the changing world around us and taking actions today that

prepare us to meet future needs of our communities. We will seek others who share our vision and values, and collaborate with them on behalf of our

communities.

Rob was called upon a number of times to act as a subject matter expert while we developed courses and curriculum with MSU. Rob continuously amazed our group, not only with his knowledge of unmanned aircraft systems [UAS], but with his uncanny knowledge which industries could utilize UAS.

One brilliant example occurred during a survey of courses that NMC Aviation hosted for MSU Program Coordinators from around the state. This 2-day session was designed to introduce our UAS training capabilities to potential MSU partners in Turf Management, Surveying, Agriculture, GIS, and Geography.

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____________________________________________________________________________

To: Marguerite Cotto

Cc: Amy Burns Heather Robinson

Keith Kelly Jason Slade

From: Ed Bailey


Subject: Engineering Technology Program Update

This document is intended to provide an update on the program enhancements within the Engineering

Technology AAS degree program.

Biomedical Equipment Technician Specialization

Effective Fall 2017 NMC will begin offering a new Biomedical Equipment Technician specialization, within

the Engineering Technology AAS Degree. This degree specialization is designed to provide students with the

in-depth knowledge of the high technology equipment used in hospitals, clinics and medical facilities.

Graduates of this programs would be responsible for the safety inspections, preventive maintenance,

calibration, troubleshooting, equipment repair, and the training of hospital personnel in the safe and proper use

of this specialized medical equipment. This new specialization would augment the seven other existing degree

pathways (Unmanned Aerial Systems, Marine Technology, Robotics & Automation, Unmanned Ground

Vehicles, Computer Technology, Photonics and Electronics). This new degree specialization is being

developed in conjunction with Munson Medical Center and the hospital’s desire to have a trained workforce.

Munson has committed to support the program with technical expertise, instructors, internship opportunities

and program recruitment. The McLaren Northern Michigan Hospital network has also expressed a strong

interest in this program and graduates.

Wages & Employment Trends for this degree program are outlined below (Source O*NET)

Employment (2014) 48,000 employees

Projected growth (2014-2024) Average (5% to 8%)

Projected job openings (2014-2024) 11,500

Wages & Employment Trends – Salary information

There are no regional Colleges or Universities offering this degree pathway and the only other Community

Colleges in the State of Michigan offering this type of program are Muskegon, Schoolcraft and Wayne County

Community College. This degree pathway continues to reinforce the role of NMC as the regions center for

technical training.

MEMO

Technical Division

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of 2

Living / Learning Community

Starting Fall 2017 students in the Engineering Technology programs will have an opportunity to be part of a

Living-Learning community. Living-Learning Communities are defined as student residential communities

with a shared academic or thematic focus. These communities are characterized by programs in which students

live together in the same on campus residence location, share academic experiences, have access to resources

provided directly to them within the residence hall. Living-Learning communities are not new NMC campus

but this will be a first time offering for students in the Engineering Technology program. Enrollment in the

program for the first year will be capped at 16 and have a cost of approximately $500.00 per student. This fee

will cover all expenses associated with the early move-in week experiences. These experiences will include a

day of UAS training at Yuba, ROV and sonar training on West Bay, local industry tours and student

workshops. The program is being led by Amy Burn, Experiential Learning Coordinator and supported by

existing staff within the Technical Division and Residence Halls.

Curriculum Updates

Effective Fall 2017 several curriculum changes will take place within the Engineering Technology programs,

these changes are the result of feedback from the programs Advisory Board, recent graduates and the ABET

accreditation process. Outlined below is a summary of these changes;

1. Integration of newer microcontroller technologies and the “Internet of Things” concept into the

robotics courses, aligning these classes with the latest generation of technology on unmanned systems

platforms.

2. Integration of more project based learning and principles of project management in the second year

classes.

Please let me know if you have any questions on this information.

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Office of Human Resources

During the survey, Rob gave a general presentation on NMC, UAS, and some projects we had been involved with to date. In a room filled with MSU leadership from a myriad of industries, Rob started fielding questions that both humbled and amazed us.

In addition to the questions regarding UAS, Rob very graciously started answering questions and stirring conversation about subjects he knew -- Land surveying regulations, pesticide spray applications, turf management industry standards, trends in GIS, etc. There wasn’t a single question posed from our MSU colleagues that Rob couldn’t answer. And he not only answered the questions, he made recommendations on best practices, what we should be doing as educators, and how the next generation of technology might change the entire process. Rob was simply impressive.

Immediately, after the meeting, we pulled Rob aside, and asked him how he was suddenly a subject matter expert in all of these industries. Rob had 2 answers:

First, he had spent weeks prior researching and learning about the different industries that would be represented at this survey. He explained that he believed in what we were doing and that he wanted to be able to answer any possible questions or challenges that the group may pose.

Second, Rob said he loves to learn as much as he loves to teach. This is not only his job , but it’s his passion, and he didn’t think twice about spending countless hours in preparation.

This is just one example of our Assistant UAS Chief, Rob Dreer, has gone above and beyond to support NMC’s mission. His dedication to our school is solid and unwavering, and commitment to learning inspires those around him to push themselves This past semester, Rob played a critical role is solidifying the partnership between Michigan State University and NMC Aviation.

For being selected as the Employee of the Semester, Rob will receive a framed certificate acknowledging his award along with a check for $150.00.

c. President’s Council

Board of Trustees Alex Bloye Personnel File

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MEMO Enrollment Services _________________________________________________________________________________________

To: Timothy J. Nelson, President Todd Neibauer, VP for Student Services & Technologies From: Pamela Palermo, Associate Dean of Enrollment Services Date: January 17, 2017 Subject: Enrollment Services Update – Spring/Summer Semester 2017 _________________________________________________________________________________________

SPRING 2017

Spring 2017 started January 13, 2017. Students have been in our offices adding, dropping, and switching classes during the 100% refund period. Our official Count Day is January 24, 2017. We are currently estimated to finish down 4.8% which is within our budgeted projections. New Student Enrollment There are 797 newly admitted students registered for the spring semester; this includes “regular”, Early College, and Dual Enrolled students. This is 39 less students than this time last year. Our overall headcount is also currently down to 3,782. The overall decrease of students is consistent with other community colleges across the State according to MACRAO report data which shows an overall 6.2% decline among reporting schools.

STATISTICS Spring Projections from 1/17/2017 – Same date comparisons

Spring Spring Spring Spring

2014 2015 2016 2017

Admits 1,065 1,088 1,108 1,154

Admits Registered 791 851 837 797

Prior Admits Registered 26 92 13 26

Retained from Fall 3,274 3,133 2,899 2,777

Re-Admitted Students 311 237 244 182

Average Credit Hours 9.51 9.30 9.26 9.28

Average Contact Hours 10.75 10.55 10.53 10.59

Total Headcount 4,403 4,313 3,993 3,782

Total Credit Hours 41,894 40,119 36,957 35,085

Total Contact Hours 47,330 45,498 42,056 40,067

Tuition 6,671,444 6,908,557 6,756,609 6,913,539

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______________________________________________________________________________ To: Timothy J. Nelson, President From: Vicki Cook, VP Finance and Administration Date: January 16, 2017 Subject: Summary Report for the General Fund as of December 31, 2017 The attached reports summarize the financial results for the General Fund as of December 31, 2016. The sixth month represents 50% of the year. Month End Results The month end reports are interim and not a reflection of actual year-end results. The timing of revenue and expenses fluctuates throughout the year and will affect year end results. The general fund ended the month with an excess of revenue over expenses in the amount of $2,252,938. Revenue increased by 2% when comparing December 2016 to December 2015. Expenses decreased by 2% when comparing December 2016 to December 2015. Revenue (letters refer to the attached General Fund summary) A. Tuition and Fees revenue: Tuition and fees represent a 2% increase from those of December

2015. The increase is reflective of activities in GLMA and New Jobs training workshops revenue along with changes in tuition rates. For Fall 2016, the budget was set at 42,193 billing hours for budgeted revenue of $7,267,567. Actual billing hours are at 43,398 hours for total tuition revenue of $7,538,266. This is an overage of $270,699.

B. Property Taxes: Tax revenue is recorded as payments are received. We budgeted for an increase over the previous fiscal year.

C. State Sources began in October with receipt of the first state aid payment. D. Federal Sources, which consist primarily of the MARAD grants, are not expected to be

received until May 2017 and are restricted for the operations of Great Lakes Maritime Academy.

E. Actual year-to-date investment income recorded for fiscal year 2017 reflects interest income and realized gain.

F. Both Private Sources and Other Sources are timing and event dependent.

MEMO Administrative Services

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Expenses G. Salary and benefits are consistent with budget H. Professional development is above budget due to timing of events and membership

payments. All other expenses are under budget at this time. I. Capital outlay is timing related. Capital Outlay reflects expenditures budgeted through the

allocation of COAT dollars, BBQ funds and Culinary Capital fund.

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Summ Gen Fund Dec 16.xlsxfor internal use only 1/16/2017 4:21 PM Page 1 of 1

Unaudited

2016-2017 YTD % ofFunds Accounts Adjusted Budget Activity Annual Budget

TOTAL GENERAL FUND50 Revenues

Tuition and Fees 23,364,192 13,456,794 57.60% A Property Taxes 9,929,134 5,027,248 50.63% B Other Local 0 0 *Local Sources 33,293,326 18,484,042 55.52%State Sources 9,318,088 3,154,000 33.85% CFederal Sources 524,000 177,901 33.95% DPrivate Sources 375,000 121,268 32.34% FInvestment Income 274,000 142,470 52.00% EOther Sources 392,270 207,826 52.98% F

Total Revenues 44,176,684 22,287,507 50.45%60 Labor

Salaries & Wages 21,456,217 10,485,526 48.87% GBenefits 9,226,173 4,467,743 48.42% G

Total Labor 30,682,390 14,953,269 48.74%70 Expenses

Purchased Services 2,408,324 1,064,365 44.20% HSupplies & Materials 3,114,383 1,316,404 42.27% HInternal Services 80,895 27,845 34.42% HOther Expenses 1,669,103 753,925 45.17% HInstitutional Expenses 1,766,374 698,884 39.57% HMaintenance & Renovation 1,541,540 633,518 41.10% HProf Develop, Travel & Events 580,149 317,531 54.73% HCapital Outlay 65,570 117,927 179.85% I

Total Expenses 11,226,338 4,930,399 43.92%

Total Expenditures 41,908,728 19,883,668 47.45%80 Transfers

Transfers 2,263,782 150,901 6.67%Total Transfers 2,263,782 150,901 6.67%

Total Expenditures and Transfers 44,172,510 20,034,569 45.36%Net Revenues over (under) Expenditures 4,174 2,252,938


Summary Report for General Fund AccountsFiscal Year 2017, Period 06

Month end reports are interim and not a reflection of year end results.

Month end reports are interim and not a reflection of year end results.

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Northwestern Michigan CollegeComparative Statement

December 2016 to November 2016General Fund Activity Only

Difference between current month and previous month

Revenue Yr. To Date Yr. To Date Month of Month of Explanation31-Dec-16 30-Nov-16 31-Dec-16 30-Nov-16

Tuition and Fees 13,456,794 12,087,415 1,369,379 2,615,779 November had 4 weeks of tuition, December had 2 weeks; flight fees higher in November

Property Taxes 5,027,248 4,448,228 579,020 187,765 Timing of winter tax collections

State Sources 3,154,000 2,070,667 1,083,333 1,035,334 Add'l one-time retirement contribution of $48,000 received in December

Federal Sources 177,901 177,901 - 177,901 MARAD fuel reimbursement received in November

Private Sources 121,268 121,268 - 4,426 Timing of Foundation support

Investment Income 142,470 118,705 23,765 24,136 Consistent with prior month

Other Sources 207,826 172,738 35,088 45,825 Lobdell's sales higher in November

Total Revenue 22,287,507 19,196,921 3,090,586 4,091,165

Expenses

Salaries and Wages 10,485,526 8,492,781 1,992,745 1,852,285 December higher for faculty calendar 2016 contractual payment settlement

Benefits 4,467,743 3,678,972 788,771 745,832 Benefits associated with faculty contract settlement raise payout

Purchased Services 1,064,365 876,006 188,359 172,858 Timing of advertising costs and audit fees

Supplies & Material 1,316,404 1,088,927 227,477 155,605 December higher due to timing of supply purchases for fuel and postage

Internal Services 27,845 17,577 10,268 6,714 December higher for internal charges

Other Expenses 753,925 640,029 113,896 138,377 December less in Native waiver

Institutional Expenses 698,884 567,585 131,299 172,401 Timing of utility payments and snowplowing less in December

Maintenance & Renovation 633,518 528,896 104,622 91,594 Facility maintenance higher in December

Prof Develp, Travel, & Events 317,531 266,760 50,771 63,283 Timing of professional development events and memberships

Capital Outlay 117,927 115,604 2,323 26,438 $2,475 Water Studies magnetometer (Marine Magnetics) and -$152 reclassification of EPS expense

Total Expenditures 19,883,668 16,273,137 3,610,531 3,425,386

Transfers 150,901 75,766 75,135 - Quarterly aviation transfer in December

Net Revenues over/(under) 2,252,938 2,848,018 (595,080) 665,779

Month end reports are interim and not a reflection of final year end results.


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Northwestern Michigan CollegeComparative Statement

December 2016 and December 2015General Fund Activity Only

Difference between December 2016 and December 2015 (GENERAL FUND)

Revenue Yr. To Date Yr. To Date INCRE/DECRE. Percentage Explanation31-Dec-16 31-Dec-15 Difference

Tuition & Fees 13,456,794 13,172,599 284,195 2%FY2017 higher in fall tuition, vessel housing, and training/workshops revenue

Property Taxes 5,027,248 4,711,056 316,192 7% Budgeted increase in property tax revenue and timing of tax collections

State Sources 3,154,000 3,113,033 40,967 1% Budgeted increase in annual appropriations

Federal Sources 177,901 199,898 (21,997) -11% MARAD fuel reimbursement less during FY17

Private Sources 121,268 115,137 6,131 5% Timing of Foundation support

Investment Income 142,470 237,426 (94,956) -40% FY16 had large $97,623 realized gain on bond

Other Sources 207,826 239,551 (31,725) -13%Reimbursements received in Sept 2015 from MARAD for shipyard drydock hotel & per diems; NJTP grant administrative fees higher in FY17

Total Revenue 22,287,507 21,788,699 498,807 2%

Expenses

Salaries and Wages 10,485,526 10,409,765 75,761 1%Student and supplemental wages higher in FY17 partially offset by adjunct and overload

Benefits 4,467,743 4,473,376 (5,633) 0% Consistent with previous year

Purchased Services 1,064,365 1,108,328 (43,963) -4% Timing of contractual payments

Supplies & Material 1,316,404 1,374,293 (57,889) -4%

Less for fuel, postage, and electronic resources due to timing. Additional expense in supplies from change in capitalization of library books (reduction in capital expense to offset this)

Internal Services 27,845 1,042 26,803 2572%FY2017 less for Training services internal revenue for Lean program; timing of posting for joint offerings revenue

Other Expenses 753,925 945,185 (191,260) -20%

Savings in aviation helicopter rentals, property tax refunds and non-professional development travel & events offset in part by higher Native American Tuition Waiver expense

Institutional Expenses 698,884 789,275 (90,391) -11% Timing of utility, aviation insurance payments, and snow removal

Maintenance & Renovation 633,518 666,917 (33,399) -5% Timing of contractual payments

Pro. Develop, Travel & Events 317,531 313,108 4,423 1% Timing of professional development events and travel

Capital Outlay 117,927 156,499 (38,572) -25% COAT, BBQ funded item, and Culinary Capital fund expense

Total Expenditures 19,883,668 20,237,788 (354,120) -2%

Transfers 150,901 132,016 18,885 Loan fund and aviation transfers; grant indirect revenue

Net Revenues over/(under) 2,252,938 1,418,896 834,042



21

Northwestern Michigan CollegeSummary by Program

December 2016General Fund Activity Only

Revenue Percent 2016-17 Yr. To Date Percent ofof Total Annual Budget 31-Dec-16 Total Spent Definition

Tuition & Fees 53% 23,364,192 13,456,794

Property Taxes 22% 9,929,134 5,027,248

State Sources 21% 9,318,088 3,154,000

Federal Sources 1% 524,000 177,901

Private Sources 1% 375,000 121,268

Investment Income 1% 274,000 142,470

Other Sources 1% 392,270 207,826

Total Revenue 100% 44,176,684 22,287,507

Expenses

Instruction 31% 13,078,252 8,444,063 42% Produce educational change in a learner or group of learners; includes both credit and non-credit offerings

Information Technology 7% 2,963,607 1,276,203 6% Provide technology to benefit instructional activities and the institution as a whole

Public Service 1% 229,162 112,117 1% Provide public with unique resources and respond to community needs or solve community problem

Instructional Support 17% 7,034,632 3,179,101 16% Support instructional programs

Student Services 13% 5,469,414 2,302,481 12% Contribute to well-being of students and their intellectual, cultural, & social development

Institutional Administration 20% 8,356,303 2,522,598 13% Provide for organizational effectiveness and continuity; day-to-day functioning and long-range viability

Plant Operations and Maintenance 11% 4,777,357 2,047,106 10% Maintain existing facilities, provide utility and safety services, and plan/design future facilities

Total Expenditures 100% 41,908,728 19,883,668 100%

Transfers 2,263,782 150,901

Net Revenues over/(under) 4,174 2,252,938



22

______________________________________________________________________________ To: Timothy J. Nelson, President From: Vicki Cook, VP Finance and Administration Date: January 16, 2017 Subject: Analysis of July 1, 2016 through December 31, 2016 and Projections for FY17

Year End Result We are now half way through FY17. Attached are our projections for FY17 operations based on the trends occurring through the first half of the year. Projected Year End Results After analyzing the first six months of FY17, we are projecting a net gain in the amount of $52,834. It is important to note that this is a preliminary estimate. This estimate will change throughout the remainder of the year. Below are explanations for the major variances from budget. Revenue Tuition and Fees: Tuition and Fees revenue is expected to be over budget by approximately $315,400 for FY17. The increase is directly related to higher than budgeted enrollment for credit and courses, additional Maritime cruise and New Jobs Training workshop revenue. Changes that could still affect the final revenue number include Aviation flight fees, Training revenue and summer tuition. Property Taxes: Property Taxes in this first analysis are projected to end the year at budget. We will have a final property tax revenue number by March and will make an adjustment with the receipt of the final payment from Grand Traverse County. State Sources: State Sources will be over budget by $48,000. The revenue increase is a onetime payment toward MPSERS costs. Federal Sources: Federal Sources include MARAD funds and Perkins administrative revenue. MARAD funds will increase for fuel purchases and an additional expense will be recognized. Investment Income: Investment income is projected to be at budget.

MEMO Administrative Services

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Other Sources: The remaining revenue lines are expected to be at budget or slightly higher than budgeted. The increases include; administrative fee revenue from New Jobs Training Act grants, purchasing card rebates and increased collection of previously written off accounts. Expenses Salaries and Benefits: Salaries are expected to be over budget by $279,000. This is due to the settlement of the Faculty contract and increases that were paid for FY2016 and FY2017. Adjunct Faculty contracts and supplemental wages are trending higher than anticipated. We will be working with individual departments to look for savings in these areas. Benefits will be higher than budgeted due to faculty salary increases. The estimate for Adjunct Faculty contracts and related benefits could have an impact on the final year end number. Purchased Services: Contractual agreements to employment firms for staffing has increased purchased services. Savings in other departments may reduce the actual year end expense. Supplies/materials: Increases in the budget include GLMA fuel purchases which has corresponding additional revenue and the recording of library book purchases as an expense instead of a capital outlay expenditure. Other Expenses: Reduction in this category include a new agreement with Fifth Third that reduces our finance charges and a reduction in non-professional development travel. Institutional Expenses: Institutional expenses are estimated to be at budget. Heating and electrical use could impact the final year end expense. Professional Development: The current trend estimates that we will be at budget. Executive staff are reviewing current comments and have asked managers to reduce out of state professional development travel. . Capital Outlay: Capital Outlay is projected to be slightly over budget due to the purchase of equipment through BBQ funding and culinary specific purchases. The purchases have a corresponding revenue to cover the over budget expenses. Transfers Transfers are estimated to at budget.

24

Northwestern Michigan CollegeFiscal Year 2016-2017Year-End Projections

As of December 31, 2016

FY2017 Acual FY16 FY17 FY16 Projected Over/(Under)

Actual Budget @12/31/16 @12/31/16 Projected CommentsRevenueLocal Sources

Tuition & Fees 51 23,044,782 23,364,192.46 13,456,794 23,679,593 315,400 Fall tuition, vessel housing, workshops/training

Property Taxes 51 9,817,952 9,929,134 5,027,248 9,929,134 - Total Local Sources 32,862,734 33,293,326 18,484,042 33,608,726 315,400 State Sources 53 9,246,700 9,318,088 3,154,000 9,366,088 48,000 Add'l retirement payment

Federal Sources 54 718,298 524,000 177,901 687,101 163,101 MARAD fuel

Private Sources 55 515,824 375,000 121,268 393,820 18,820 BBQ funded items

Investment and Interest Income 57 386,175 274,000 142,470 274,000 - Unrealized gain/(loss) on investments 57 340,638 - - - - Other Sources 59 513,275 392,270 207,826 423,233 30,963 Lobdell's, NJTP administrative fees

Total Revenue 44,583,644 44,176,684 22,287,507 44,752,968 576,284

ExpensesSalaries 61 21,915,598 21,456,217 10,485,526 21,735,378 279,161 Faculty salaries and supplemental wages

Benefits 65 9,434,142 9,226,173 4,467,743 9,317,319 91,146 Taxes/retirement on salaries overage

Purchased Services 71 2,347,170 2,408,324 1,020,533 2,495,934 87,610 Increase for Aviation staffing, Munson Surgical Technology program, Philosphy staffing

Supplies & Materials 72 2,895,797 3,114,383 1,316,404 3,170,267 55,884 GLMA fuel offset in federal funding, library book expense moved from capital expese

Internal Services 73 66,274 80,895 27,845 80,895 -

Other Expenses 74 1,826,556 1,669,103 753,925 1,650,490 (18,613) Reduction of finance charges and non-professional development travel

Institutional Expenses 75 1,674,021 1,766,374 698,884 1,766,374 - Maintenance & Renovation 76 1,313,425 1,541,540 633,518 1,541,540 - Professional Development 77 653,823 580,149 317,531 580,149 -

Capital Outlay- small expenditures 79 321,881 65,570 117,927 117,927 52,357

BBQ funded item (offset in private sources, Culinary specific program expense (offset in transfers), secure cloud access, offset in part by movement of library book expense to supplies expense

Total Expenses 42,448,689 41,908,728 19,839,836 42,456,273 547,545

TransfersPlant Fund 1,499,647 1,199,647 1,199,647 - GLMA Equipment Fund (93,326) - -

Technology Fund 400,000 400,000 400,000 -

Facility Fee 40,000 40,000 40,000 - Aviation Plant Transfer for Tach hours 362,722 340,000 210,062 340,000 - Loan Funds transfer (4,520) - (55,058) - - Strategic projects 250,000 250,000 250,000 - Funds for Transformation 50,000 50,000 50,000 - GLMA fuel reserves (184,110) - - -

GLMA equipment reserve transfer (25,000) - - - Alumni transfer (16,500) - - - Indirect Grant Revenue & Program support (21,661) (115,865) (4,104) (115,865) -

Total Expenses & Transfers 44,705,940 44,072,510 19,990,737 44,620,055 547,545

Net Revenue before Program Reserves (122,297) 104,174 2,296,770 132,914 28,740

Funds reserved for Specific Programs 246,356 (100,000) - (80,080) 19,920 Transfer for Culinary equipment

Net Revenue after Program Reserves 124,059 4,174 2,296,770 52,834 48,660

NMC definition of the term "Projection" is a forecast of year-end revenues & expenses (not accounting definition)

25

____________________________________________________________________________

To: Vicki Cook, VP Finance and Administration From: Cheryl Sullivan, Controller Date: January 14, 2017 Subject: Realized and Unrealized Investment Gains & Losses for FY17 Second Quarter Historically the college’s investments have balanced receiving the highest investment returns with maximum security while also meeting cash flow needs. The college is also limited to the investments it may make under the Michigan Community College Act No. 331. For many years, the college has invested in Fannie Mae and Freddy Mac bonds as their debt is secured by the federal government. While the market value of the bond holdings can fluctuate, the college opts instead to hold them until maturity or until the bonds are called by the issuer, therefore always receiving par value of the bonds back. The only time the college would sell a bond would be to lock in and realize a gain. As an additional hedge against rising interest rates, many of the bonds that the college currently invests in are step-bonds, which means the interest rates steps up over the duration of the bond’s life. While fiscal year 2016 had some large fluctuations during the year on bond market values, the college ended the year with $340,638 of unrealized gains on their bond portfolio. Please note that all of these gains during fiscal 2016 were unrealized, paper gains. Some of the volatility from the prior fiscal year is still present in the current bond market for fiscal year 2017 with the first six months resulting in unrealized losses of $299,312. The decrease in the market value of the bonds on the college’s books is a required accounting entry only, and does not reflect the par value that the college will receive at maturity or call of the bonds. As the college holds its bonds until the bonds are called by the issuer or the bonds mature, these unrealized gains and losses will not impact the college’s bond portfolio. During fiscal year 2016, a Federal Home Loan Bank bond was called resulting in a realized gain of $97,623. The bond had been purchased during July 2013 at a significant discount. Total realized gains for fiscal year 2016 were $99,921. For the first six months of fiscal year 2017, realized gains were $2,000.

MEMO

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NMCBonds Held12/31/2016

Date Maturity Amount Bond interest InterestPurch Date Name Paid Amount paid at purch Rate Notes

5/3 Bank3/1/2016 2/26/2021 FNMA 1,000,000$ 1,000,000$ 139$ 1.000% steps up to 1.25% 2/2017; 2% 2/2018; 2.75% 2/2019; 3.5% 2/2020

4/28/2016 4/28/2021 FHLM 1,000,000$ 1,000,000$ 1.000% steps up to 1.125% 4/2017; 1.25% 10/2017; 1.50% 4/2018; 2% 10/2018; 2.50% 4/2019; 3% 10/2019; 4% 4/2020; 5% 10/2020

4/28/2016 4/28/2031 FNMA 2,000,000$ 2,000,000$ 2.250% steps up to 2.75% 4/2020; 3% 4/2023; 3.50% 4/2025; 4% 4/2027; 4.50% 4/2029

5/25/2016 5/25/2021 FHLB 1,500,000$ 1,500,000$ 1.000% steps up to 1.25% 5/2018; 1.75% 11/2018; 2.25% 5/2019; 2.75% 11/2019; 3.75% 5/2020; 4.75% 11/2020

8/15/2016 8/15/2031 FHLB 1,500,000$ 1,500,000$ 2.000% steps up to 2.25% 8/2021; 2.75% 8/2024; 3.50% 8/2026; 4.25% 8/2027; 5% 8/2028; 6% 8/2029; 7% 8/2030

8/24/2016 8/24/2028 FHLB 1,000,000$ 1,000,000$ 1.500% steps up to 2% 8/2019; 3% 8/2022; 4% 8/2025

9/20/2016 9/20/2021 FHLB 1,000,000$ 1,000,000$ 1.000% steps up to 1.25% 9/2018; 1.75% 3/2019; 2.25% 9/2019; 3% 3/2020; 3.75% 9/2020; 4.50% 3/2021

10/25/2016 10/25/2024 FHLB 1,000,000$ 1,000,000$ 1.250% steps up to 1.50% 10/2019; 2% 10/2020; 2.50% 10/2021; 3% 10/2022; 4% 4/2023; 6% 10/2023; 8% 4/2024

10/27/2016 10/27/2028 FHLB 1,000,000$ 1,000,000$ 1.500% steps up to 2% 10/2019; 2.50% 10/2022; 3% 10/2025; 4% 4/2026; 6% 10/2026; 8% 4/2027; 10% 10/2027

11/23/2016 11/23/2020 FHLM 1,300,000$ 1,300,000$ 1.000% steps up to 1.125% 11/17; 1.25% 2/18; 1.375% 5/18; 1.5% 8/18; 1.625% 11/18; 1.75% 2/19; 2% 5/19; 2.25% 8/19; 2.5% 11/19; 2.75% 2/20; 3% 5/20; 3.25% 8/20

Totals 12,300,000$ 12,300,000$ 139$

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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


Subject: Foundation Update

Fund Raising – a “check” on FY17 goals

To date, $169,667 has been raised for the Annual Fund; our goal is $275,000. This is 50% above what had been raised to date in FY16! To date, 390 donors have supported the annual fund, 8% above FY16.

FY17 total dollars raised are as follows:

$ 3,553,395 Total received (including Annual Fund, pledges, and documented planned gift intentions) raised toward goal of $3,350,000

+ $ 189,042 Gross event revenue vs goal of $250,000

$ 3,742,437 Total of gifts + events – Over goal!

Foundation Initiatives

The Campaign Steering Committee, with approval from the Foundation Board Executive Committee, has selected Credo as our strategic marketing partner to support campaign communications.

Nominations are now being accepted for the 2016 Outstanding Alumni award. Please let us know which of our outstanding NMC alumni you’d recommend!

Meetings and Events for your calendars:

Taste of Success culinary fundraising event – Friday, 2/24/17 at 6:30 pm at the Great Lakes Campus. Buy your tickets today at www.nmc.edu/culinary

Foundation Finance and Audit Committee meeting – Wed., 2/15/17 at 7:30 am, Founders Hall.

Foundation Board meeting – Wed., 2/22/17 at 7:30 am (breakfast at 7:00), Oleson Center.

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Board of Trustees

Fellows Nomination Committee Minutes

December 19, 2016 NMC Oleson Center, 1881 College Drive


The Fellows Nomination Committee meeting was called to order by committee chair Ross Childs

at 5:15 p.m.

Present: Ross Childs, Robert Brick, Tim Nelson, Holly Gorton

Absent: Marilyn Dresser

The Committee met to make a selection for 2017 Fellow. Received nominations were reviewed

and discussed. It was the consensus of committee members to recommend Ross and Brenda

Biederman as the 2017 Fellows of Northwestern Michigan College for appointment by the full

Board at their January 23, 2017, meeting. Holly Gorton noted that Marilyn Dresser had

supported the nomination to her via phone earlier that day.

President Timothy Nelson will notify the Biedermans and ask for their acceptance of the award.

The President’s Office will then follow up with them to schedule a dinner in their honor.

The committee meeting adjourned at 5:20 p.m.

Recorded by Holly Gorton, Executive Assistant to the President and Board of Trustees.

29

MCCA Lansing Legislative Summit on January 25, 2017: Please join us for this hands-on advocacy day for community colleges to bring presidents, trustees, senior administrators, and students to Lansing. Please begin making appointments to meet with your legislators as part of the Summit. To register for the event at no cost, please click here.

STATE LEGISLATIVE HIGHLIGHTS

Lame Duck Session Briefing: The MCCA was tracking the following bills during the lame duck session. Although these bills passed one chamber, they were not finalized and will need to be reintroduced next session to have any chance of becoming law:

House Bill 4182: Requires members of a public body to be physically present in order to participate and vote in a meeting under the Open Meetings Act.

House Bill 5578: Addresses the use of “dark stores” as comparable properties to lower property tax valuations.

House Bills 5851 – 5856: Increases reporting requirements for tax increment finance entities and create penalties for noncompliance.

Senate Bill 3: Repeals the prevailing wage requirement for state funded construction projects.

Senate Bill 999: Creates a Promise Zone for the City of Flint.

Senate Bill 1026: Addresses tax increment financing and increases reporting.

Governor Signed the Noncontiguous Annexation Bill: On December 22, Governor Snyder signed into law House Bill 4265 (Price), which would allow for noncontiguous annexation to a community college district. Many thanks to all those who saw this bill through to passage – our sponsor Representative Price, Senate Education Committee Chair Senator Phil Pavlov, and all the colleges and supporters who came to testify in committee. HB 4265 is now Public Act 374 of 2016.

Bills to Watch: A quick reference of all the bills relevant to community colleges is available here. Please contact Mike Hansen or Erin Schor with questions.

FEDERAL LEGISLATIVE HIGHLIGHTS

AACC/ACCT Joint National Legislative Summit: Registration is now open for the Joint AACC/ACCT National Legislative Summit on February 13-16 in Washington, DC. If attending the Summit, please plan to join the MCCA for this year’s Michigan Delegation Breakfast on Wednesday, February 15 from 7:30 AM – 8:45am at the Marriott Wardman Park Hotel (Wilson A room). Please RSVP directly to Michelle Taylor at the MCCA ([email protected]; 517-372-4350). As usual, MCCA staff will schedule meetings

MCCA MONTHLY UPDATE TO BOARDS OF TRUSTEES

[Report #41 January 09, 2017]

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http://www.cvent.com/events/lansing-legislative-summit/event-summary-c662b26f59044496b20ce089d48f8736.aspx

http://www.legislature.mi.gov/(S(w0hyddnekwhtvnb3jdafqaef))/mileg.aspx?page=getObject&objectName=2015-HB-4182

http://www.legislature.mi.gov/(S(ho0wfzhlyumbddvnvu5yfgqr))/mileg.aspx?page=getObject&objectName=2016-HB-5578

http://www.legislature.mi.gov/(S(woightlao2wyxqq0kl2qfwyg))/mileg.aspx?page=getObject&objectName=2016-HB-5851

http://www.legislature.mi.gov/(S(3vp1rn5y5l4cze3avcrqabhm))/mileg.aspx?page=getObject&objectname=2015-SB-0003

http://www.legislature.mi.gov/(S(ompzts5x2ptlj0idz1qop5qs))/mileg.aspx?page=getObject&objectName=2016-SB-0999

http://www.legislature.mi.gov/(S(upawvtiyrl0uvazxrcsa0au2))/mileg.aspx?page=getObject&objectName=2016-SB-1026

http://www.legislature.mi.gov/(S(20oqkzpyvtwjmqyp0ig51oic))/mileg.aspx?page=getObject&objectName=2015-HB-4265

http://www.mcca.org/content.cfm?m=121&id=121&startRow=1&mm=0

mailto:[email protected]


http://www.acct.org/events/2016-national-legislative-summit

http://www.acct.org/events/2016-national-legislative-summit

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with our US Senators on Wednesday, February 15. Please remember to schedule a time for your college to meet with your US Representatives as well. Community College Agenda for The Trump Administration: As the new administration of President-elect Donald J. Trump develops its higher education policies, the American Association of Community College presents its vision of how the federal government can help community colleges fulfill their mission of building a stronger America by providing high-quality education and related programs.

MCCA CENTERS OF EXCELLENCE

MICHIGAN CENTER FOR STUDENT SUCCESS (MCSS)

MCSS to Receive Grant from The Charles A. Dana Center to Support Mathematics Pathways Work: The funds will be used to develop a Michigan Math Pathways digital handbook, support convenings, and provide stipends for the community college and university co-leads for the Math Pathways Summit on June 28 at Michigan State University. Michigan has been participating in the Dana Center’s Math Pathways to Completion initiative, along with 5 other states, since early 2016. See more information here. MCSS Hosts Annual Michigan Student Success Network Virtual Meeting on February 3: The MCSS is hosting the annual Michigan Student Success Network Virtual meeting on February 3. The theme for this virtual meeting focuses on engaging faculty and teaching and learning. Registration information is available on the MCSS website. MICHIGAN COLLEGES ONLINE (MCO) Open Educational Resources (OER) Repository: The MCO has launched an OER Repository for colleges to collect and share openly available resources. Colleges have begun reporting their OER usage this past Fall 2016 semester. In most cases, the OER usage was an open textbook that replaced a commercial textbook and provided savings for students. Most open textbooks are digital and widely available online, however, if students wish to have a paper version there is a nominal cost for the printing. During the Fall 2016 semester there were 120 courses that utilized open textbooks at 14 community colleges providing an estimated savings of $1,523,200 to 15,232 students. See the full report here. MICHIGAN NEW JOBS TRAINING PROGRAM (MNJTP) MNJTP By The Numbers: MNJTP is an economic development program which authorizes community colleges to temporarily capture the state income tax withholding associated with newly hired workers to pay for training. Contact Adriana Phelan with any questions.

16,656 projected new jobs are being supported by MNJTP agreements.

152 contracts to date, serving 134 participating employers.

21 community colleges participate in the program.

31

http://echo4.bluehornet.com/ct/91799727:TKlBtrbJN:m:1:2201947771:82C5A18F54FB0EC18EEE9500AFA3AE6E:r

http://www.mcca.org/uploads/ckeditor/files/RM%40RT%20Recommendations_Final.pdf

he%20theme%20for%20this%20virtual%20meeting%20focuses%20on%20engaging%20faculty%20and%20teaching%20and%20learning.

https://www.oercommons.org/hubs/mco

http://www.mccvlc.org/~staff/content.cfm?ID=295



BOARD OF TRUSTEES

MINUTES

Monday, December 19, 2016

at Oleson Center, 1881 College Drive

CALL TO ORDER—Chair Kennard R. Weaver called the regular meeting to order at 5:31 p.m.

ROLL CALL Trustees present: Douglas S. Bishop, Chris M. Bott, Robert T. Brick, K. Ross Childs, Marilyn

Gordon Dresser (5:43 p.m.), Rachel Johnson, Kennard R. Weaver

Trustees absent: None

Also present: President Timothy J. Nelson, Vicki Cook, Marguerite Cotto, Stephen Drake,

Richard Dresser, Joy Evans, Brandon Everest, Diana Fairbanks, Holly Gorton,

Nancy Gray, Bronwyn Jones, Kyle Kaminski, Keith Kelly, Colin Kreh, Mark

Liebling, Mella McCormick, Kyle Morrison, Todd Neibauer, Paul Perry, Stephen

Siciliano, Cheryl Sullivan, Melissa Sprenkle, Brian Sweeney, Rebecca Teahen,

Keith Weber

REVIEW OF AGENDA—The agenda was accepted as presented.

REPORTS

Building and Site Committee Report—Committee Chair Ross Childs provided an update on the

work of the Board Building and Site Committee in the materials. Vice President Vicki Cook then

introduced representatives of the architect firm Stantec who then made a presentation that had been

made to the selection committee who reviewed proposals received for the West Hall innovation

center and library project. Questions of the Board were addressed during and following the

presentation. President Nelson shared that this group has a great deal of experience with state

funded educational facilities and was exemplary in demonstrating a planning and design process that

would engage members of the college and community to develop what should become a

transformative academic learning space and libraries. He provided an overview of the planning

phase of this project, which is a crucial component in designing a building for variable use and

flexibility to meet the needs of experiential learning into the future.

Faculty Report—National Hunger and Homelessness Awareness Week (NHHAW) Project—

Brandon Everest, Social Sciences, and Melissa Sprenkle, Communications Instructor, presented on

the NHHAW Interdisciplinary Service Learning Project. They shared about the benefits to students

that go through this type of experiential learning, and how it leads to higher outcomes. A series of

activities and events were highlighted, which included a SNAP Challenge and Walk for Health, as

well as visiting many areas and places that exposed them to the life of homeless individuals.

Students also partnered with other area organizations and NMC student learning projects to

provide cross-disciplinary opportunities. Students kept journals and developed outreach sharing

through social media. The instructors are seeing great results in the learning and experiences shared

by the students following a service learning project, and they shared their excitement in the pursuing

experiential learning as a student-centered goal for the institution. Questions of the Board were

addressed following the presentation.

32

Northwestern Michigan College December 19, 2016

2

Enrollment Report—Todd Neibauer, Vice President for Student Services & Technologies,

provided an update on enrollment services for the 2017 spring/summer semester. He highlighted

that new student numbers are ahead of last year at this time. In response to a question, Neibauer

explained that projections take into consideration past enrollment trends in addition to numbers

compared to same time last year. He reviewed some of the initiatives that have been implemented

by various student services areas to increase new student registration, as well a retaining current

students.

Financial Report—Vicki Cook, Vice President of Finance and Administration, provided the

Summary Report for the General Fund as of November 30, 2016, in the meeting materials packet. In

response to a question received, Cook reported on specific areas of increased tuition by providing

more detail on those areas that have resulted in increased tuition revenue.

Foundation Report—Rebecca Teahen, Executive Director for Resource Development and

Foundation, provided the Foundation Report and highlighted that the total gifts raised to date were a

very positive accomplishment for this time of year.

Legislative Issues Report—President Timothy Nelson shared that not much action occurred in the

lame-duck session that would impact on community colleges. He referred to the MCCA update

report in the meeting materials, and reviewed some activity following the date of that report

including the bills that did not pass, but are expected to be brought back in the new year. One of

those of particular interest is bill 992 Unmanned Aerial Systems Act that will create a regulatory

framework for the utilization of the unmanned aerial systems. NMC will be want to be very

involved in the development of this bill due to its extensive experience in that area. Nelson

anticipates an interesting year in terms of legislative activity, and reminded the Board that he was re-

appointed as the chair of the MCCA Legislative Committee.

PUBLIC INPUT—There was public input offered by Stephen Drake.

.

UPDATES

President’s Update—President Timothy Nelson, shared sad news of the death of Bob Rudd, an

outstanding chemistry instructor at NMC for 35 years from 1963 to 1998. He was a constant

presence in his volunteer work for NMC and many other community organizations. Nelson also

thanked trustees for their service over the past year.

Board Chair Update—Chair Kennard Weaver, mentioned that he had attended an NMC Policy

Council meeting and was pleased to witness the process of comments taken seriously and

incorporated into adopted policy. He was very impressed with the processes of the Council.

DISCUSSION ITEMS—None

CONSENT ITEMS—On a motion by Doug Bishop, seconded by Ross Childs, the following items

were approved by a unanimous vote as a group without discussion:

Minutes of the November 21, 2016, regular and closed meetings

Minutes of the December 12, 2016, special meeting

33


3

ACTION ITEMS

Board Policies—On a motion by Doug Bishop, seconded by Chris Bott, the Board adopted the

following Policy Committee recommendations on a second-reading basis:

Amended Board Policy A-100.00 Board of Trustees Bylaws

Amended Board Policy A-102.00 Board of Trustees Governing Style

Board Policy A-102.01 Conflict of Interest with no changes after review

The motion passed with a unanimous vote.

Resolutions of Appreciation—On a motion by Ross Childs, seconded by Doug Bishop, the Board

adopted resolutions of appreciation to Bob Brick and Steven Rawlings in recognition of their

dedicated services and significant contributions to the Northwestern Michigan College Board of

Trustees. The motion passed with a unanimous vote.

Foundation Board Appointments—On a motion by Chris Bott, seconded by Doug Bishop, the

Board approved reappointments of Mark Lundmark, Jayne Mohr, Kerm Campbell, Steve Fisher,

Diana Milock, Juliette Schultz, and Jim Weigand to three year terms on the Foundation Board

commencing January 2017 and expiring December 2019; and new Emeritus Members for the term of

life: Dan Good, Jay Hook, and Terry Malone. The motion passed with a unanimous vote.

Architect Contract—On a motion by Rachel Johnson, seconded by Ross Childs, the Board

authorized administration to enter into a contract with the architectural firm Stantec for

programming services, schematic design, and budget estimating phase of the West Hall Renovation

and Innovation Center and the new Library projects in the amount not to exceed $252,800 to be

funded by the plant fund. The motion passed with a unanimous vote.

Student Housing Furniture—On a motion by Rachel Johnson, seconded by Doug Bishop, the

Board authorized administration to enter into a contract with Brill Company as the furniture vendor

for the North Hall housing project in the amount of $254,158 to be funded by the 2016 bond fund.


Dennos Museum Center VAV System—On a motion by Doug Bishop, seconded by Ross Childs,

the Board authorized administration to enter into contracts for the VAV system in the Dennos

Museum project, as follows, to be funded by private donations and 2016 bond proceeds.

Spence Brothers General Conditions $ 16,708

Ritsema Associates 9A Drywall, Acoustical &

Insulation

$ 8,513

National Coatings 9C Painting $ 6,960

D & W Mechanical 22A Mechanical $248,892

Isenhart Electric 26A Electrical $ 300

Spence Brothers Construction Management Fee $ 10,647

Change Contingency $ 26,616

Fire Suppression Contingency $ 1,500

Total VAV Alt#1 Cost $320,136


34


4

Housing Software—On a motion by Doug Bishop, seconded by Chris Bott, the Board authorized

administration to enter into contract with StarRez, a hosted management system, at an initial cost of

$38,500 and an ongoing cost of $7,665 to be funded by the auxiliary housing budget. The motion

passed with a unanimous vote.

Server Replacement—On a motion by Ross Childs, seconded by Doug Bishop, the Board

authorized administration to enter into a contract with Frontier Computer for the purchase of eight

replacement network servers for $55,992 to be funded by the technology plant fund. The motion

passed with a unanimous vote.

New Jobs Training Programs Contracts—On a motion by Doug Bishop, seconded by Chris Bott,

the Board authorized administration to enter into a contractual agreement under the terms of the New

Jobs Training Program (NJTP) for the following companies

1. Adaptive Counseling and Case Management LLC

2. Electro-Optics Technology Inc.

3. Materne North America Corp.

4. Plascon Inc.

5. Norcross Company dba Preston Feather Building Centers

6. Skilled Manufacturing Inc.


Native American Grant Application—On a motion by Rachel Johnson, seconded by Marilyn

Dresser, the Board authorized administration to submit application for the 2% grant from the Grand

Traverse Band of Ottawa and Chippewa Indians video gaming revenue as presented. The motion

passed by unanimous vote.

New Contract for Blackbaud’s Raisers and Financial Edge—On a motion by Bob Brick,

seconded by Doug Bishop, the Board authorized administration to enter into a three-year contract

with Blackbaud for the purchase, implementation, training and support of the NXT database

software at a total cost of $135,675 to be funded by the General Fund Resource Development

operating budget. Motion passed with a unanimous vote.

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.

President Timothy Nelson thanked Steve Rawlings and Bob Brick for their wonderful service to the

College and their families for sharing them with the College.

ADJOURNMENT—The meeting adjourned at 7:36 p.m.


SIGNED

Kennard R. Weaver, Chair

ATTESTED

K. Ross Childs, Secretary

35


BOARD OF TRUSTEES

MINUTES

Wednesday, January 11, 2017

at NMC Hagerty Center Room C, 715. E. Front Street

CALL TO ORDER—Chair Kennard R. Weaver called the special retreat meeting to order at

10:37 p.m.

ROLL CALL Trustees present: Douglas S. Bishop, Chris M. Bott, K. Ross Childs, Marilyn Gordon Dresser

(10:47 a.m.), Michael Estes (10:48 a.m.), Rachel Johnson, Kennard R. Weaver

Trustees absent: None

Also present: President Timothy J. Nelson, Vicki Cook, Marguerite Cotto, Richard Dresser,

Diana Fairbanks, Holly Gorton, Kristy Jackson, Kyle Kaminski, Lynne

Moritz, Mark Liebling, Todd Neibauer, Stephen Siciliano, Rebecca Teahen

REVIEW OF AGENDA—The agenda was accepted as presented.

DISCUSSION ITEMS

MCCA Update—Michael Hansen, MCCA President, attended this portion of the meeting to

discuss the Michigan community college governance structure, the role of the Michigan

Community College Association (MCCA), and legislative issues. Hansen explained that

Michigan is unique, as it is one of four states where community colleges are autonomous without

state governance authority. Michigan community colleges have independent, local control

outlined in the state constitution with the Community College Act. The president is the only

employee of the board in a policy board model, where the board sets the ends policies with the

president being responsible for the means policies. Hansen emphasized the benefit and

importance to protect this structure. He also shared the importance of maintaining accreditation

status, and that the Higher Learning Commission (HLC) can, and has, sanctioned community

college boards for actions that have overreached and interfered with academic operations of the

college. Hansen stated that the importance of a high performing policy board cannot be

understated.

Hansen presented on the role of the MCCA as the primary advocate for Michigan's 28 public

community colleges with a mission to provide leadership on issues affecting member colleges,

improve their image and credibility, foster collaboration among the community colleges and

stakeholders, and provide in-service training for trustees, presidents and stakeholders. He noted

that NMC President Nelson is the chair of the MCCA Legislative Committee because his

colleagues want him has chair, and thanked the NMC Board for allowing Nelson to be active in

MCCA. Hansen reviewed some specific legislative accomplishments for community colleges

where MCCA has played an active role.

36

Northwestern Michigan College January 11, 2016

2

Michael Hansen explained that student success is another nation-wide community college

initiative that MCCA plays an active role in. He noted the shift from open access to student

success and the resulting regulatory and budget implications. State and federal funding is

decreasing while student success and completion requirements are increasing. Performance

funding complicates the mission and the Board will have to determine the balance of open access

and student success.

Hansen discussed potential changes in regulatory requirements and funding levels with a new

federal administration and addressed questions of the Board. He shared that MCCA and

President Nelson would keep the Board informed and seek input on positions to take. The Board

emphasized what a good job Michael Hansen does, and how important it is for trustees to

advocate with local legislators. They believe MCCA works actively to be involved in the

solution to issues and that the state appreciates that. The Board also noted how effective the

MCCA professional development sessions have been for NMC trustees who have attended.

Board Level Strategic Goals—President Timothy Nelson provided background and an

overview of the recommended Board Level Strategic Goals, and then reviewed each goal and set

of targets.

Vice President Stephen Siciliano reviewed the target of implementation of documented

assessment of academic learning outcomes and addressed questions of the board. Siciliano

explained that computer software is being utilized for this assessment and outcome documenting.

President Nelson explained the process for the state funded West Hall innovation center project

and shared about the use of a focus group to accomplish the design phase, which is board goal

B2. The Board made a suggestion to include community representation into that phase and

Nelson asked that they send recommendations to him. There was a brief discussion pertaining to

the college decision-making process for recommended new programs. President Nelson

explained that the Board Building and Site Committee oversees the building projects currently

underway, so those were not included in the goals. The accreditation process required in goal B4

was briefly discussed, as well as the plan to provide a globalization report to the Board on a

scheduled basis.

Rebecca Teahen, executive director for resource development and foundation, reviewed goal B7

regarding Resource Development and Foundation plans for expansion of revenue opportunities

and philanthropy plans, including building connections with NMC alumni. She included

discussion of a potential campaign timeline, components of building a case for support, and ways

that trustees could help by sharing of NMC stories, attending events, and giving.

Board’s Responsibility—Chair Kennard Weaver reviewed the history of college leadership

roles, noting the comparison with the growth of the organization leading to the current policy

governance structure as recommended by the American Association of Community Colleges

(AACC) and the Association of Community College Trustees. Weaver also provided an

overview of policy governance.

PUBLIC INPUT—There was no public input offered.

37

Northwestern Michigan College January 11, 2016

3

ACTION ITEMS

Closed session—Doug Bishop made a motion, seconded by Ross Childs, that the Board adjourn

the open session and consider in closed session (pursuant to Subsection 8[a] of the Michigan

Open Meetings Act) the mid-year performance evaluation of the president, per his request for a

closed session. The motion passed with a unanimous vote and the Board went into closed

session at 2:00 p.m.

Reconvene Regular Meeting—Doug Bishop made a motion, seconded by Marilyn Dresser, to

adjourn the closed session and reconvene the open session. The motion passed with a unanimous

vote; and the regular open session reconvened at 3:05 p.m.

REPORTS

Presidential Mid-year Performance Review Report—President Timothy J. Nelson reported

that his mid-year performance evaluation had occurred during the closed session. He shared that

a number of the trustees would like clarification of the definition of student success, and the

metrics used. He noted that faculty had asked a similar question during professional

development day the previous fall. Nelson explained that both he and the Board are concerned

about the culture of the college in lieu of the recent contract negotiations and working clarifying

leadership roles. The issue of communications was also discussed by the president and Board

and Nelson had requested to receive questions from the Board in writing, if they felt not to have

been responded to. President Nelson shared that he typically responds to questions of individual

trustees by responding back to the full Board with both the question and response. He stated the

college had communication with various audiences and he is working on an improved

communications plan with a completion goal of 90 days to have it included in the budget

process. President Nelson concluded by stating both he and the Board are proud of all the people

who work at NMC, as well as the support of community members.

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 3:08 p.m. by unanimous vote on a motion by

Ross Childs, seconded by Doug Bishop.


SIGNED

Kennard R. Weaver, Chair

ATTESTED

K. Ross Childs, Secretary

38

Northwestern Michigan College Fellows Nomination

Submitted December 12, 2016

Name of Nominees: Ross and Brenda Biederman Ross and Brenda Biederman have supported NMC with personal philanthropic gifts since 1994 and through the Biederman Foundation since 1987. The name is familiar, as Ross's father, Les, is credited with founding Northwestern Michigan College. In that sense, the Biederman family has supported NMC since 1951. The Foundation has given nearly $700,000 and provides support for student scholarships on an annual basis. Currently supporting approximately 25 students per year, the Biederman scholarship funds have transformed hundreds of lives. Beyond their charitable giving, the Biedermans have always supported NMC and many other community organizations by leveraging the reach of their radio stations. They have consistently provided in-kind advertising as an effective way to support the causes they care about and which make our community a better place to live. Yet that is not all. Ross and Brenda are, in the words of President Timothy J. Nelson, an "empowering couple." They have integrated community service into their everyday lives. Ross is currently serving as a member of our Campaign Steering Committee. Brenda recently served with Susie Janis on a "Get 'er Done" committee to complete languishing fundraising efforts throughout the community. These are just a few examples of the many initiatives Ross and Brenda have supported philanthropically and through their personal service. Their leadership empowers others, individuals and organizations, to achieve great things in our region. Ross and Brenda will continue to be recruited for all meaningful community initiatives because they are generous, kind, and committed to our community. NMC is one of many organizations that have benefited from their caring for decades. It is time now to recognize them as Fellows of NMC.

Rebecca M. Teahen, CFRE Executive Director for Resource Development & NMC Foundation

39

Northwestern Michigan College FY15 – FY18 Strategic Plan Page | 1

Version Date: 01-06-2017

○ Proposed Start ●Actual Start Δ Proposed Completion Actual Completion

Key Results, Goals, and Targets (Points of Contact and Current Board Levels Goals)

FY15 FY16 FY17 FY18 Lead Contact

LEARNER SUCCESS (SD1, IE1, IE2, IE3)

B1

GOAL: Develop and implement an integrated and aligned learning outcomes system that includes the articulation of and means of documenting learning outcomes, assessments, results, and actions for improvement at the course, program, and institutional levels; and employability of occupational graduates.

B1.T1. ● TARGET: By July 2017, full implementation of a systematic and aligned process for the identification and assessment of academic learning outcomes with documented evidence for actions to improve performance on the learning outcomes.

●

Δ

Siciliano, Evans,

Assessment Team

B1.T2. ● TARGET: By July 2018, document results of actions taken to improve learning performance. Siciliano, Evans,

Assessment Team

B2 GOAL: Complete the design of 21st century learning space centered in West Hall project.

B2.T1. ● TARGET: Complete schematic design by April 2017.

● Δ Cook

B3 GOAL: Identify and implement tools for assessing and analyzing student success initiatives.

B3.T1. ● TARGET: Implementation of tool by fall of FY18.

● Δ Neibauer

NATIONAL AND INTERNATIONAL EXPERTISE (SD2)

B4 GOAL: NMC will pursue national/international program level accreditations.

B4.T.1. ● TARGET: Successfully achieve HLC accreditation reaffirmation. ● Δ Siciliano, Evans

LIFELONG RELATIONSHIPS (SD4)

B5 GOAL: NMC will expand community awareness efforts both externally and internally.

B5.T1. ● TARGET: Conduct, analyze, and prepare a report of the Community Attitude and Awareness Survey results. ●Δ Evans

B5.T2. ● TARGET: Develop, adopt and execute an integrated marketing and communications plan.

●Δ Fairbanks

NMC Board of Trustees Level Strategic Goals FY15 – FY18

40

Northwestern Michigan College FY15 – FY18 Strategic Plan Page | 2

Key Results, Goals, and Targets (Points of Contact and Current Board Levels Goals)

FY15 FY16 FY17 FY18 Lead Contact

TRANSCRIBE LEARNING (SD5)

B6 GOAL: Document instructional process for international joint degree recognition for NMC.

B6.T1. ● TARGET: Comprehensive globalization report to Board.

● Δ Cotto

FISCAL THRIVEABILITY (IE3, IE5)

B7 GOAL: NMC will develop and implement a budget plan that includes expansion of revenue opportunities along with operational efficiencies to assure fiscal thriveability.

B7.T1. ● TARGET: Implement foundation business plan to increase philanthropy for the college.

● Δ Teahen

B7.T2. ● TARGET: Implement a preliminary business model for Extended Education which addresses a sustainable funding strategy.

● Δ Cotto, Cunningham

B7.T3. ● TARGET: Successfully complete State Capital Outlay Project process. ● Δ Cook

Definitions/Key: Discovery, Incubate, Accelerate – These terms reference key steps in the DIA Innovation Model (Gina O’Connor, 2005) that NMC has adopted. Each of these stages of radical innovation

reflect competencies. Discovery is about exploration – the creation, recognition, elaboration, and articulation of opportunities – with an outcome that is actionable within the Decision Making process – an Idea Summary at a minimum. Incubation is about experimentation, piloting – evolving the opportunity into a business proposition. Acceleration is about full implementation – ramping up the business to stand on its own.

Curriculum Map - Maps program outcomes to specific courses (I.e. Dental Assisting program map) Impactful Practices – Is a preferred alternative to what is more commonly referred to as “best practices”. Thriveability – To grow in a sustainable way. B1.T1 – This coding reflects a notation for referencing the Board Level Goals. “B” stands for Board and “T” for Target. Therefore “B1_T1” is the Board Goal #1, Target #1. Portfolio A,B,C –

Portfolio A = Academic offerings of the college priced at traditional community college rates. Portfolio B = Offerings of the college’s programs and services that can be priced outside the traditional rate system and can be marketed to individuals who may not be normally

served by the traditional community college. These learners include those coming beyond our traditional service area and who are seeking state, national and international credentials based on the college’s specialty areas.

Portfolio C = Offerings utilizing intellectual property that may be related to college offerings but are held by partner organizations. The partners work together to market offerings as Portfolio C.

41

http://www.productgenesis.com/archive/Organization_Structures_DIA_Model_OConnor_EIG.pdf

MEMO

Resource Development

To: The Board of Trustees and President Timothy J. Nelson

From: Fred Laughlin, Director of Great Lakes Culinary Institute

Rebecca Teahen, Executive Director for Resource Development


Subject: Special License for Taste of Success event

February 24, 2017, will mark the 23rd annual fundraiser held on behalf of the Great Lakes Culinary Institute. Formerly known as the Tasters Guild Event and Auction, this evening raises significant scholarship support each year and last year was rebranded as “A Taste of Success.”

Action Requested

As we did in 2016, we are requesting Board of Trustee approval to file with the State of Michigan for a special events wine auction license for February 24, 2017, which would allow a broader range of activities to be carried out as part of the Taste of Success event.

Rationale

Under the leadership of event committee chair Don Coe, we have seen a significant uptick in support for the Taste event, with an increase in participation from both area winery associations, WOMP (Wineries of Old Mission Peninsula) and LPVA (Leelanau Peninsula Vinters Association), the Michigan Brewers Guild, and several other community organizations. We also now receive increased and upgraded donations from individuals and businesses to support the activities associated with this event. Under the College’s current liquor license, we are restricted in how we can use wine offered for the event and with the special event wine auction license, we can more freely utilize wine donations and can allow patrons to leave the premises with unopened wine purchased as part of the silent auction and during the event.

Background

The process of receiving special event licenses was regularly followed prior to NMC opening the Hagerty Center and having a long-term license. The Board of Trustees last approved a special event license for last year’s Taste event. Upon Board of Trustees approval, staff will complete the application process as quickly as possible to ensure the license is in place for the event. We thank you for your consideration and look forward to a tremendously successful event.

42

1

Lifelong& ProfessionalLearning

To: Timothy J Nelson, President From: Marguerite Cotto, V.P. Date: January 18, 2017 Subject: NJTP – New & Extended Contract Authorization We are pleased to submit for Board authorization two training agreements under the provisions of the Michigan New Jobs Training Program. Company profiles are included in the packet. This application cycle includes on extension to an existing contract, and the introduction of a new area employer.

Agreements include:

Extension of agreement to TentCraft, Inc. New agreement for eFullfillment Service.

These agreements extend to 502 the total of new jobs meeting NJTP criteria to date. Contracts after January 1, 2017 are benchmarked at the new minimum wage threshold. Thank you.

44

1

MICHIGAN NEW JOBS TRAINING AGREEMENT Amendment No. 4

PART I

This amendment between Northwestern Michigan College and TentCraft, Inc., dated January 23, 2017, amends the previous Agreement dated May 23, 2016. This Agreement increases the budget from $325,000 to $383,750. 1. “College” means Northwestern Michigan College of Traverse City, Michigan. Notices, requests, or other

communications directed to the College under this Agreement shall be addressed as follows:

Finance Cheryl Sullivan, Controller Northwestern Michigan College 1701 East Front Street Traverse City, MI 49686 [email protected] 231-995-1147

TrainingLisa Rollin, Grant Coordinator Northwestern Michigan College 1701 East Front Street Traverse City, MI 49686 [email protected] 231-995-2005

2. “Employer” means TentCraft,Inc. of Traverse City, Michigan. Notices, requests, or other communications directed to the Employer under this Agreement shall be addressed as follows:

Rob Hanel People Manager TentCraft, Inc. 2322 Cass Road Traverse City, MI 49686

3. The Employer certifies that the number of jobs on its payroll in Michigan as of October 15, 2013, the date of the Preliminary Agreement, was 25 and that the highest number of jobs on its payroll in Michigan in the last 12 months prior to the date of the Preliminary Agreement was 25.

4. The Employer agrees that the New Jobs Credit from Withholding paid by the Employer to the College for Program Costs will begin as employees are hired.

5. The effective date of this Agreement shall be December 16, 2013 (the “Effective Date”).

6. The term of this Agreement shall be five (5) years, expiring December 15, 2018; provided that this Agreement shall not terminate and the obligations, representations, warranties, covenants, and agreements of the Employer hereunder shall continue until the Program Costs have been paid in full as provided herein.

7. This Agreement dated August 25, 2014, amends the previous Agreement of December 16, 2013.

8. This Agreement dated April 20, 2015, amends the previous Agreement of December 16, 2013, and August 25, 2014.

9. This Agreement dated May 23, 2016, amends the previous Agreements of December 16, 2013; August 25, 2014; and April 20, 2015. This Agreement increases the budget from $200,000 to $325,000.

10. This Agreement dated January 23, 2017, amends the previous Agreements of December 16, 2013; August 25, 2014; April 20, 2015; and May 23, 2016.

The provisions of Part II and Part III of this Agreement are hereby approved and incorporated in full by reference.

47

2

MICHIGAN NEW JOBS TRAINING AGREEMENT PART II

EXHIBIT A

Estimated Budget

1.

Training

$ 333,696

2.

Administrative Fee

$ 50,054

TOTAL

$ 383,750

Final Costs

1.

Training

$_______________.

2.

Administrative Fee

$_______________.

TOTAL

$_______________.

Acknowledged this 23rd day of January, 2017.

_________________________ _________________________

Matt Bulloch, President Timothy J. Nelson, President TentCraft Inc. Northwestern Michigan College

48

3

EXHIBIT B Tentative Training Program

I. Overview

A. Estimated number of new jobs: 25 @ $12.95 or higher B. Expected date by which new jobs will be filled: 06/15/15 C. Estimated costs of training: $ 333,696 D. Expected beginning date of training: 01/01/14 E. Expected ending date of training: 12/15/18

II. Description of Training

Lean Manufacturing Overview

Lean Office Overview

Lean Manufacturing Champion

Lean Office Champion

Train-the-Trainer

Leadership Skills

Excel

CPR

Hoshin Planning

Six Sigma

49

4

EXHIBIT C

Employer Projections of Payroll and New Jobs Credit

12-Month Period Ending Estimated Gross Wages

Estimate of New Jobs

Credit From Withholding Fees

12/31/2014 $ 1,805,882 $ 76,750 $ 10,011

12/31/2015 $ 1,805,882 $ 76,750 $ 10,011

12/31/2016 $ 1,805,882 $ 76,750 $ 10,011

12/31/2017 $ 1,805,882 $ 76,750 $ 10,011

12/31/2018 $ 1,805,882 $ 76,750 $ 10,011

Note: Although the term of this Agreement is five (5) years, the amount of payroll taxes diverted hereunder may not exceed the total amount of the budget. The College will work with the Employer and the Michigan Department of Treasury to ensure taxes in excess of the required amounts are not diverted but rather are forwarded directly to the State of Michigan by the Employer.

50

13

IN WITNESS WHEREOF the College and Employer have caused this Agreement to be duly executed all as of the Effective Date.


Name:

Timothy J. Nelson

Title: President

Date: 01/23/17

TENTCRAFT, INC.

Name:

Matt Bulloch

Title: President

Date: 01/23/17

51

1

MICHIGAN NEW JOBS TRAINING AGREEMENT

PART I

1. “College” means Northwestern Michigan College of Traverse City, Michigan. Notices, requests, or other

communications directed to the College under this Agreement shall be addressed as follows:

Finance Cheryl Sullivan, Controller Northwestern Michigan College 1701 East Front Street Traverse City, MI 49686 [email protected] 231-995-1147

TrainingLisa Rollin, Grant Coordinator Northwestern Michigan College 1701 East Front Street Traverse City, MI 49686 [email protected] 231-995-2005

2. “Employer” means eFulfillment Service of Traverse City, Michigan. Notices, requests, or other communications directed to the Employer under this Agreement shall be addressed as follows:

Merry Hawley Human Resources Manager eFulfillment Service 807 Airport Access Road Traverse City, MI 49686

3. The Employer certifies that the number of jobs on its payroll in Michigan as of January 12, 2017, the date of the Preliminary Agreement, was 106 and that the highest number of jobs on its payroll in Michigan in the last 12 months prior to the date of the Preliminary Agreement was 106.

4. The Employer agrees that the New Jobs Credit from Withholding paid by the Employer to the College for Program Costs will begin as employees are hired.

5. The effective date of this Agreement shall be January 23, 2017 (the “Effective Date”).

6. The term of this Agreement shall be five (5) years, expiring January 22, 2022, provided that this Agreement shall not terminate and the obligations, representations, warranties, covenants, and agreements of the Employer hereunder shall continue until the Program Costs have been paid in full as provided herein.

The provisions of Part II and Part III of this Agreement are hereby approved and incorporated in full by reference.

52

2

MICHIGAN NEW JOBS TRAINING AGREEMENT PART II

EXHIBIT A

Estimated Budget

1.

Training

$ 28,696

2.

Administrative Fee

$ 4,304

TOTAL

$ 33,000

Final Costs

1.

Training

$_______________.

2.

Administrative Fee

$_______________.

TOTAL

$_______________.

Acknowledged this 23th day of January, 2017.

_________________________ _________________________

Jordan Lindberg, Executive Vice President Timothy J. Nelson, President eFulfillment Service Northwestern Michigan College

53

3

EXHIBIT B Tentative Training Program

I. Overview

A. Estimated number of new jobs: 4 @ $15.58 or higher B. Expected date by which new jobs will be filled: 05/01/17 C. Estimated costs of training: $ 28,696 D. Expected beginning date of training: 03/01/17 E. Expected ending date of training: 12/31/21

II. Description of Training

Lean Manufacturing Champion

Quality Systems

Lean Practitioner

54

4

EXHIBIT C

Employer Projections of Payroll and New Jobs Credit

12-Month Period Ending Estimated Gross Wages

Estimate of New Jobs

Credit From Withholding Fees

12/31/2017 $ 155,294 $ 6,600 $ 861

12/31/2018 $ 155,294 $ 6,600 $ 861

12/31/2019 $ 155,294 $ 6,600 $ 861

12/31/2020 $ 155,294 $ 6,600 $ 861

12/31/2021 $ 155,294 $ 6,600 $ 861

Note: Although the term of this Agreement is five (5) years, the amount of payroll taxes diverted hereunder may not exceed the total amount of the budget. The College will work with the Employer and the Michigan Department of Treasury to ensure taxes in excess of the required amounts are not diverted but rather are forwarded directly to the State of Michigan by the Employer.

55

5

MICHIGAN NEW JOBS TRAINING AGREEMENT

PART III

An agreement to provide for:

The creation of a New Jobs Training Program between the College and the Employer.

The creation of a Project Fund to be used to pay the costs of the training Program.

The capture of New Jobs Credit from Withholding from employees in New Jobs.

The use of New Jobs Credit from Withholding to pay Project Costs.

The issuance of Bonds to finance the costs of the Project.

This New Jobs Training Agreement (the “Agreement”) made and entered into as of the Effective Date, between the College and the Employer, under the following circumstances:

A. Pursuant to the New Jobs Training Programs codified in Chapter 13 of the Community College Act of 1966, Act 331, Public Acts of Michigan, 1966, as amended (“Act 331”), the College and the Employer have determined to enter into this Agreement for purposes of establishing a project to educate and train certain persons employed by the Employer in new jobs.

B. The College and the Employer each have full power and authority to authorize, execute, and deliver this Agreement.

C. When duly executed and delivered, this Agreement will be will be a legal, valid, and binding obligation of the College and of the Employer enforceable in accordance with its terms.

NOW, THEREFORE, in consideration of the mutual covenants and benefits set forth below, it is agreed by the parties hereto as follows:

ARTICLE I DEFINITIONS

Section 1.1 “Act” means the New Jobs Training Programs codified in Chapter 13 of the Community College Act of 1966, Act 331, Public Acts of Michigan, 1966, as amended.

Section 1.2 “Bonds” means Bonds or Notes of the College issued pursuant to the Act to pay all or part of the Program Costs pursuant to this Agreement.

Section 1.3 “Debt Service” means the payment of the principal of and interest on and redemption premium, if any, on Bonds issued pursuant to this Agreement.

Section 1.4 “New Job” means a full-time job in this state that meets all of the following:

(i) Except as provided in subparagraph (ii) or (iii), is a new, existing, or expanding business of an employer.

(ii) Is not a job of a recalled worker, a replacement job, or any other job that existed in the employer's business within the one-year period preceding the date of the Agreement.

56

6

(iii) Is not a job that is part of an employer's business operation located in a municipality in this state, if that job existed in a business operation or a substantially similar business operation of the employer formerly located in another municipality in this state, the employer moved that business operation or substantially similar business operation to its current location, and the employer closed or substantially reduced that former business operation or substantially similar business operation.

(iv) Results in a net increase in employment in this state for that employer.

(v) The wage paid for the job is equal to or exceeds 175 percent of the state minimum hourly wage rate in effect as of the Effective Date ($15.58 per hour).

Section 1.5 “New Jobs Credit from Withholding” or “Jobs Credit” means the New Jobs Credit from Withholding, established in Section 163 of the Act, MCL 389.163, paid to the College by the Employer pursuant to Article IV of this Agreement.

Section 1.6 “Program Costs” means all necessary and incidental costs of providing Program Services for the Project and shall include an administrative fee of 15 percent of the aggregate amount paid under this Agreement. Attached hereto as Part II Exhibit A and incorporated herein by reference is an estimated budget relating to the Project.

Section 1.7 “Program Services” for the Project are as tentatively set forth on Part II Exhibit B attached hereto and incorporated herein by reference.

Section 1.8 “Project” shall consist of this training arrangement to provide Program Services pursuant to this Agreement with respect to employees to be employed by the Employer in New Jobs at the Project Site.

Section 1.9 “Project Fund” means a special fund of the College established for the payment of Program Costs as provided in Section 3.1 and for no other purpose.

Section 1.10 “Project Site” means the Employer’s business address named in Part I attached hereto and incorporated herein by reference, where the New Jobs will be created.

Section 1.11 “Resolution” means the Resolution or Resolutions authorizing the issuance of New Jobs Training Bonds adopted by the College in connection with the Project.

Section 1.12 “Training” means the Program Services exclusive of administrative fees for the New Jobs Training Program and the College’s legal fees.

Other terms used in this Agreement shall have the meanings set forth in the Act.

ARTICLE II PROJECT: PROGRAM SERVICES

Section 2.1 The College agrees to provide the Program Services to the extent of funds available for that purpose in the Project Fund. It is understood and agreed that the Employer and the College will cooperate in the coordination and programming of the specific expenditures and of the Project within the guidelines set out in this Agreement and Part II, Exhibits B and C. The College may, in its discretion, subcontract with other entities or persons to provide all or part of the Training. It is understood and agreed that the Training set forth on Part II, Exhibit B is tentative and is subject to change and further development, within the budget for the Project, upon the mutual written agreement of the College, acting through its authorized officer, and the Employer.

Section 2.2 The College and Employer agree that all necessary and incidental costs, including but not limited to Program Costs and Debt Service, if any, and related costs may be paid from New Jobs Credit from Withholding, to be received or derived from new employment resulting from the Project. The College and the Employer further agree that title to training equipment acquired as part of Program Services, if any, shall vest with the College.

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Section 2.3 The College may revise or expand the Training from time to time as may be mutually agreed between the parties; provided that no revision shall be made which would change the Project to purposes other than those purposes permitted by the Act.

Section 2.4 Employer certifies that the number of jobs, including formerly existing jobs, on its payroll in Michigan is as set forth in Part I of this Agreement.

Section 2.5 As part of the Program Services, the Employer shall pay to the College an administrative fee of 15 percent of the aggregate amount paid under this Agreement. The College shall retain that portion of the administrative fee representing 14 percent of the aggregate amount paid under this Agreement for its administrative expenses and the remaining sum representing 1 percent of the aggregate amount paid under this Agreement shall be paid by the College to the Michigan Community College Association (the “MCCA”) to cover certain costs of the MCCA with respect to administration, coordination, and reporting requirements for new jobs training agreements, including this Agreement.

ARTICLE III PROJECT FUND

Section 3.1 The College shall open a separate depository account or create a separate Project Fund on the books of the College to facilitate the funding of this Agreement. The College shall deposit into the Project Fund (i) funds on hand of the College, (ii) tuition, student fees, or special charges received by the College for the Project, (iii) training funds received by the College from the Employer (other than New Jobs Credit from Withholding) intended as direct payment for the Project, and (iv) proceeds of the Bonds issued for the Project pursuant to Article VI. All sums held in the Project Fund shall be used solely and only for payment of costs of the Project.

ARTICLE IV NEW JOBS CREDIT FROM WITHHOLDING

Section 4.1 The Employer and the College hereby acknowledge and agree that the costs of the Project are to be paid from New Jobs Credit from Withholding which shall be based on salary and wages paid to employees of the Employer in the New Jobs.

Section 4.2 This Agreement is entered into upon the expectation that, as set forth in Part II, Exhibit C, sufficient funds from New Jobs Credit from Withholding will be generated to pay the Program Costs. Part II, Exhibit C sets forth the minimum annual amount of New Jobs Credit from Withholding or tuition and fee payments to be paid for Program Costs. Employer’s projections of gross wages to be paid to employees in New Jobs covered by this Agreement are set forth in Part II, Exhibit C attached hereto.

Section 4.3 Part II, Exhibit B sets forth the estimated number of employees in New Jobs to be trained, the expected beginning and ending date of the training to be provided, the estimated costs, the training that will be provided, and the expected date by which the number of New Jobs will be filled.

Section 4.4 The Employer shall each month for each employee in a New Job pay the amount required to be deducted and withheld by the Employer under section 703 of the income tax act of 1967, 281 PA 1967, MCL 206.703, to the College in the same manner as the Employer returns and pays withholding payments to the Revenue Division of the Department of Treasury.

Section 4.5 The Employer agrees to certify to the Department of Treasury all New Jobs Credit from Withholding paid to the College pursuant to this Agreement and shall provide any other information reasonably requested by the Department of Treasury.

Section 4.6 Upon receipt of New Jobs Credit from Withholding and other funds received pursuant to this Article, if any, the College shall deposit said funds into a special fund designated as the Project Receipt Fund and used exclusively for the purposes of reimbursing the College for Program Costs.

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Section 4.7 The College agrees to certify to the Michigan Department of Treasury, at the end of each calendar quarter, the amount of New Jobs Credit from Withholding that the Employer has remitted to the College in said quarter. In addition, the College agrees to satisfy all reporting requirements to the Department of Treasury as set forth in the Act.

Section 4.8 The Employer agrees to provide the College at least quarterly during the term of this Agreement with payroll and such other records as the College may reasonably request with respect to all employees in New Jobs in sufficient detail to permit the College to review and confirm the wages paid to said employees; timing of payments, deductions, and withholdings from income tax for purposes of generated New Jobs Credit from Withholding; and dates of employment.

ARTICLE V REIMBURSEMENT OF EMPLOYER TRAINING EXPENSES

Section 5.1 The Employer has consented to pay for all training conducted under this Agreement for remuneration of all expenses incurred by the College including but not limited to assessment; instruction; training materials and manuals; required equipment; evaluation; and other related costs. The College will not require payment from the Employer, nor is the Employer obligated to prepay, any College administrative costs incurred as a result of this Agreement except for the administrative fee of 15 percent required by Section 2.5 of this Agreement. Section 5.2 The College agrees to periodically submit invoices to the Employer delineating all anticipated expenses related for the ensuing training period. These invoices will include costs and fees associated with providing training to meet expectations established in the approved Training Plan. Unless the Employer disputes the invoiced amount in good faith, the Employer agrees to remit, in full, the total amount listed on the invoice within thirty (30) days of its receipt. If the Employer disputes any portion of the invoiced amount in good faith, the Employer shall pay the disputed portion as required under this Section 5.2 and provide written notice to the College describing the Employer’s reason(s) for disputing the balance of the invoice. The Employer and College shall promptly meet to discuss and resolve such dispute. Upon completion of each training period, the College shall provide documentation to the Employer evidencing the actual costs and expenses incurred.

Section 5.3 The Employer may, with the College’s prior written approval, directly incur certain training expenses. The Employer is required to submit to the College copies of all invoices, receipts, records, and any additional data necessary to describe all expenses it incurred and paid, if any, for purposes of providing the training as outlined in the Training Plan.

Section 5.4 If training is provided by an entity or person other than the College, the College shall add a project management fee of twenty (20) percent to the total cost of Training.

ARTICLE VI NEW JOBS TRAINING REVENUE BONDS: SECURITY

Section 6.1 If Bonds are issued to finance or refinance all or a part of the Project, then the provisions of this Article shall apply.

Section 6.2 The College may irrevocably pledge the New Jobs Credit from Withholding, and the Project Receipt Fund into which the withholdings are paid, for the payment of the principal of and interest on bonds issued by the College to finance or refinance the Project in whole or in part. The Employer acknowledges and agrees that the College may issue bonds for this Project in conjunction with and as a single issue, or as multiple series of bonds, to finance multiple projects of the College pursuant to new jobs training agreement(s) entered into between the College and other employers. The Employer’s obligations, covenants and representations set forth herein are not and shall not be conditioned on the issuance of Bonds identifiable or specifically attributable to this Project.

Section 6.3 The College and the Employer agree that the receipts from the New Jobs Credit from Withholding and the Project Receipt Fund into which the same are paid may be irrevocably pledged by the College for the

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payment of the Debt Service. If Bonds are to be issued, a tentative payment schedule for the Bonds shall be attached to this Agreement. Following issuance and sale of the Bonds a final payment schedule, if different from the attached schedule, shall be prepared using the actual rates of interest and maturities for the Bonds. Such final payment schedule, if prepared, shall become a part of this Agreement without further action by the Employer or the College and shall supersede the schedule attached hereto. A copy of such final payment schedule shall be provided to the Employer.

Section 6.4 The term of this Agreement shall coincide with the period of time over which the Bonds mature and the Program Costs are deferred; provided, that this Agreement shall not terminate and the obligations, representations, warranties, covenants and agreements of the Employer hereunder shall continue until the Bonds, if any, issued in connection with the Project shall have been paid in full.

Section 6.5 The Bonds will be issued pursuant to a Resolution adopted by the Board of Trustees of the College in the aggregate principal amount, bearing interest (at a rate to be determined at the time the Bonds are authorized to be issued), maturing, and being redeemable as set forth in the Resolution.

Section 6.6 The proceeds from the sale of the Bonds shall be paid to the College and deposited in the Project Fund or other fund established by the College. The Project Fund shall be used only for purposes of the Project. Pending disbursements for Program Services and Program Costs, the proceeds so deposited in the Project Fund, together with any investment earnings thereon, shall be subject to a lien in favor of the holders of the Bonds as provided in the Resolution authorizing the Bonds.

Section 6.7 The College agrees to use its best efforts to sell and issue the Bonds, and the Employer agrees to cooperate with the College to provide necessary financial information in connection with the marketing and sale of the Bonds.

ARTICLE VII COVENANTS, REPRESENTATIONS, AND WARRANTIES

Section 7.1 Representations of the College. The College represents that (i) it is a community college duly organized and validly existing under the Act, (ii) it has full power and authority pursuant to the Act to enter into this Agreement, and to execute, deliver, and perform its obligations under this Agreement, and (iii) it has full power and authority pursuant to the Act to carry out and consummate all actions required to be taken by it in connection with the activities contemplated in this Agreement.

Section 7.2 Representations, Warranties, and Covenants of Employer. Employer represents, warrants, and covenants that:

(a) The Employer is duly organized and validly existing under the laws of the State of Michigan and is duly qualified, authorized, and licensed to do business in the State of Michigan.

(b) The Employer it has full power and authority to enter into the Agreement.

(c) The Employer has duly authorized, by all necessary action, the execution, delivery, and due performance of the Agreement

(d) There is no action, suit, proceeding, inquiry, or investigation pending before any court or before or by any public board or body, nor, to the knowledge and information of the Employer, threatened against or affecting the Employer, and to the best of the knowledge and information of the undersigned is there any basis therefor, wherein an unfavorable decision, ruling, or finding that would materially adversely affect the activities contemplated by or the validity of this Agreement.

(e) There is no litigation or proceeding pending, or to the knowledge of Employer threatened, against the Employer or any other person affecting in any manner whatsoever the right of the Employer to execute the Agreement or to otherwise comply with its obligations under the Agreement.

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(f) Each of the jobs covered by this Agreement is a New Job as that term is defined in the Act and each of the employees to be trained under this Agreement will be employed directly by the Employer.

(g) The Employer’s projections of the annual gross wages to be paid by the Employer to employees in the New Jobs covered by this Agreement are accurately depicted on Part II, Exhibit C based on current expectations of the Employer.

(h) All training and services provided pursuant to this Agreement constitute the Program Services as that term is defined in the Act and qualify for funding from the New Jobs Credit from Withholding.

(i) Employer knowingly assumes the obligation under this Agreement to pay the Program Costs in the event the sources of payment described in Section 4.6 are not sufficient to satisfy the Program Costs in full, and the Employer shall also pay the Training costs for any Non-Eligible Employees.

(j) Employer agrees to hold the College harmless and to reimburse the College for any Program Costs, Training costs, or other costs or expenses related to this Agreement which are determined to be ineligible to be paid for with New Jobs Credit from Withholding by any order of the State of Michigan, any agency therefor, or a court of competent jurisdiction, including the College’s costs and expenses (including, without limitation, reasonable attorneys, and consultant fees) in responding to or defending any claim, demand, audit, action, or suit questioning the use of New Jobs Credit from Withholding.

ARTICLE VIII EVENTS OF DEFAULT

Section 8.1 Events of Default. Each of the following shall be an “event of default”:

(a) The Employer shall fail to pay, advance, or deposit any amount required to be made by the Employer on or prior to the date on which such payment, advancement, or deposit is due and payable and continuing for more than five (5) business days thereafter.

(b) The Employer shall fail to observe and perform any representation, term, or condition contained in this Agreement, if such failure continues for a period of twenty (20) days after notice of such failure is given to the Employer by the College, or for such longer period as the College may agree to in writing; provided, that if the failure is other than the payment of money and is of such nature that it cannot be corrected within the applicable period, such failure shall not constitute an event of default so long as the Employer institutes a curative action plan approved by the College within the applicable period and diligently pursues such action plan to completion and cures such default within sixty (60) days thereafter.

(c) The Employer, any guarantor of the obligations of the Employer to the College pursuant to this Agreement, a Person controlled by the Employer or Person in control of the Employer shall: (i) admit in writing its inability to pay its debts generally as they become due; (ii) have an order for relief entered in any case commenced by or against it under the federal bankruptcy laws, as now or hereafter in effect; (iii) commence a proceeding under any other federal or state bankruptcy, insolvency, reorganization or other similar law, or have such a proceeding commenced against it and either have an order of insolvency or reorganization entered against it or have the proceeding remain undismissed and unstayed for ninety (90) days; (iv) make an assignment for the benefit of creditors; or (v) have a receiver or trustee appointed for it or for the whole or any substantial part of its property.

(d) The Employer shall close or announce that it is closing its operations at the Project Site (unless such operations will be transferred to another facility in the state of Michigan and as a result the College will be entitled to receive the revenue from the sources set forth in Section 4.6 or receives assurance satisfactory to the College of the receipt by the College of payments to satisfy the obligations of the Employer).

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(e) The College determines from time to time that, for any reason, including but not limited to a work force reduction at the Project Site, sufficient realized or projected revenue from New Jobs Credit from Withholding will not be generated by the Project to enable the College to satisfy the Obligations.

(f) Any representation or warranty made by the Employer herein or any statement in any report, certificate, financial statement, or other instrument furnished in connection with this Agreement or with the sale of the Bonds shall at any time prove to have been false or misleading in any material respect when made or given.

(g) The Employer acts in a manner contrary to any provision of this Agreement or fails to act in a manner required by any provision of this Agreement and the College determines as a result of such act or failure to act that (1) there are not or will not be sufficient funds generated by the Project to enable the College to satisfy the costs of the Project and/or (2) that the security interest granted to the College pursuant to this Agreement is not perfected or that the College’s relative priority as a secured party has changed to the detriment of the College without its written consent.

(h) Any guarantor of the obligations of the Employer under this Agreement shall no longer own or control the Employer, such guarantor shall be dissolved, merged, or consolidated or such guarantor shall notify the College that it rejects or disavows the guarantor’s obligations to the College.

The exercise of remedies upon the occurrence of any event of default under subsection (c) above shall be subject to any applicable limitations of federal bankruptcy law affecting or precluding such exercise during the pendency of or immediately following any bankruptcy, liquidation, or reorganization.

Section 8.2 In the event of default by the Employer, the College may, without notice to Employer, withhold, suspend, or terminate the Training and the Program Services, and apply all or a part of any remaining funds budgeted for Training to the satisfaction of the Obligations. In addition, the College may take whatever other action at law or in equity may appear necessary or desirable to collect the payments and other amounts then due and thereafter to become due, or to enforce performance and observance of any other obligation or agreement of the Employer under this Agreement. Notwithstanding the foregoing, the College shall not be obligated to take any step which in its opinion will or might cause it to expend time or money or otherwise incur liability unless and until a satisfactory indemnity bond has been furnished to the College at no cost or expense to the College.

Section 8.3 Immediately upon the occurrence of an event of default, there shall be due from the Employer to the College such amount as will enable the College to presently satisfy the unpaid amount of the Obligations, including Debt Service on the Bonds. No demand or notice of the amount due immediately upon the occurrence of an event of default is or shall be required to fix the liability of Employer or the amount due from Employer. The amount due hereunder from the Employer shall be a debt of Employer to the College and the College may set off against the amount due from the Employer any debt or debts of the College to Employer.

Section 8.4 No remedy conferred upon or reserved to the College by this Agreement is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy now or hereafter existing at law, in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the College to exercise any remedy reserved to it in this Article, it shall not be necessary to give any notice, other than such notice as may be expressly required herein, nor shall it be necessary to make any declaration of an event of default other than such declaration as may be expressly required herein.

Section 8.5 In the event any agreement contained in this Agreement should be breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to be a waiver of any other breach hereunder.

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ARTICLE IX MISCELLANEOUS

Section 9.1 This Agreement may be executed in any number of counterparts, each of which shall be regarded as an original and all of which shall constitute but one and the same instrument.

Section 9.2 If any Section or provision of this Agreement shall be found invalid, that Section or provision shall be severable and the balance of the Agreement shall remain in full force and effect.

Section 9.3 This Agreement shall be governed under the laws of the State of Michigan.

Section 9.4 Amendments to this Agreement shall not be effective unless approved in writing by both parties.

Section 9.5 All notices, requests, or other communications under this Agreement shall be in writing and deemed given when delivered personally, upon the next business day if deposited with a nationally recognized over-night delivery service, or upon the third following business day, if deposited in the United States Mail with postage prepaid and sent by certified mail, return receipt requested, addressed as set forth in Part I of this Agreement.

Employer and the College may, by notice given hereunder, designate any further or different addresses or persons to which subsequent notices, requests, or other communications shall be sent.

Section 9.6 This Agreement shall inure to the benefit of and shall be binding in accordance with its terms upon the College, the Employer, and their respective permitted successors and assigns provided that this Agreement may not be assigned by Employer without the prior written consent of the College.

Section 9.7 This Agreement, including Part II Exhibits, constitutes the entire agreement between the College and the Employer with respect to the subject matter hereof and as such supersedes all previous negotiations, commitments, and understandings. Captions and the alignment of the Agreement are for convenience only and shall not be construed to modify the rights or obligations of the parties.

Section 9.8 This Agreement consists of Part I, Part II, and Part III and includes all attachments, appendices, and exhibits thereto all of which are hereby approved and incorporated in full by reference.

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IN WITNESS WHEREOF the College and Employer have caused this Agreement to be duly executed all as of the Effective Date.


Name:

Timothy J. Nelson

Title: President

Date: 01/23/17

EFULFILLMENT SERVICE

Name:

Jordan Lindberg

Title: Executive Vice President

Date: 01/23/17

64

MICHIGAN NEW JOBS TRAINING PROGRAM

TOTAL

COMPANY NAMEGRANT

NO.

NMC

ACCT #TRAINING

FINANC

ESUBTOTAL NMC (14%)

MCCA

(1%)

ADMIN

TOTALTOTAL

PRELIMINARY

AGREEMENTAPPLICATION AGREEMENT

EXPECTED

ENDCLOSEOUT

ACAT GLOBAL NJTP-050 25808 26,951$ -$ 26,951$ 3,773$ 270$ 4,043$ 30,994$ 04/03/13 04/03/13 04/22/13 04/30/20 70

ADAPTIVE COUNSELING AND CASE MANAGEMENT, LLCNJTP-xxx 25xxx 43,478$ -$ 43,478$ 6,087$ 435$ 6,522$ 50,000$ 05/23/16 12/19/16 12/18/21 3

AJD FOREST PRODUCTS NJTP-051 25809 27,826$ -$ 27,826$ 3,896$ 278$ 4,174$ 32,000$ 03/12/13 03/12/13 04/22/13 04/30/20 4

ARMOR EXPRESS NJTP-038 25803 80,870$ -$ 80,870$ 11,321$ 809$ 12,130$ 93,000$ 11/13/12 11/13/12 12/17/12 12/31/19 6

BRITTEN BANNERS, INC. NJTP-098 25819 222,587$ -$ 222,587$ 31,162$ 2,226$ 33,388$ 255,975$ 02/03/14 01/30/14 08/25/14 12/31/19 32

BRITTEN DÉCOR, INC. NJTP-xxx 25xxx -$ -$ -$ -$ -$ -$ -$ 12/04/14 01/14/15 04/20/15 05/31/20 07/27/16 0

BRITTEN METALWORKS, INC. NJTP-115 25xxx 43,478$ -$ 43,478$ 6,087$ 435$ 6,522$ 50,000$ 12/04/14 01/14/15 04/20/15 05/31/20 8

BRITTEN SERVICES, INC. NJTP-xxx 25xxx -$ -$ -$ -$ -$ -$ -$ 09/11/14 01/14/15 04/20/15 05/31/20 07/27/16 0

BRITTEN WOODWORKS, INC. NJTP-xxx 25xxx 60,870$ -$ 60,870$ 8,522$ 608$ 9,130$ 70,000$ 02/12/15 02/27/15 04/20/15 05/31/20 10

CENTURY EXTRUSION NJTP-032 25804 26,087$ -$ 26,087$ 3,652$ 261$ 3,913$ 30,000$ 11/08/12 12/03/12 12/17/12 12/17/17 5

CENTURY INC. NJTP-012 25802 218,166$ 7,592$ 225,758$ 31,606$ 2,258$ 33,864$ 259,622$ 08/25/10 08/24/10 02/28/11 12/18 40

CHERRY CAPITAL FOODS, LLC NJTPxxx 25xxx 39,130$ -$ 39,130$ 5,478$ 391$ 5,870$ 45,000$ 07/02/15 07/02/15 08/24/15 07/31/20 6

CHERRY REPUBLIC NJTP-052 25810 130,435$ -$ 130,435$ 18,261$ 1,304$ 19,565$ 150,000$ 01/07/13 01/07/13 04/22/13 04/30/20 10

EFULFILLMENT SERVICE NJTP-XXX 25xxx 28,696$ -$ 28,696$ 4,017$ 287$ 4,304$ 33,000$ 01/12/17 01/12/17 01/23/17 01/22/22 4

ELECTRO-OPTICS TECHNOLOGY INC. NJTP-010 25801 434,783$ -$ 434,783$ 60,870$ 4,348$ 65,217$ 500,000$ 03/08/10 02/26/10 12/15/10 12/14/18 21

ELMER'S CRANE AND DOZER, INC. NJTP-095 25820 186,956$ -$ 186,956$ 26,174$ 1,870$ 28,043$ 215,000$ 02/01/14 07/22/14 08/25/14 12/31/19 18

GRAND TRAVERSE SENIOR LIVING LLC NJTP-XXX 25821 52,174$ -$ 52,174$ 7,304$ 522$ 7,826$ 60,000$ 02/13/14 08/12/14 08/25/14 12/31/19 14

GREAT LAKES STAINLESS NJTP-053 25811 73,043$ -$ 73,043$ 10,226$ 730$ 10,956$ 83,999$ 01/16/13 01/16/13 04/22/13 04/30/20 8

HAGERTY NJTP-077 258XX 69,565$ -$ 69,565$ 9,739$ 696$ 10,435$ 80,000$ 10/15/12 11/25/13 12/16/13 12/31/18 31

HAYES MANUFACTURING NJTP-069 258XX 22,609$ -$ 22,609$ 3,165$ 226$ 3,391$ 26,000$ 11/12/13 11/12/13 12/16/13 12/31/20 3

IMM, INC. NJTP-XXX 25828 8,696$ -$ 8,696$ 1,217$ 87$ 1,304$ 10,000$ 03/01/16 03/31/16 05/23/16 04/30/21 2

INDUSTRIAL ARTS INSTITUTE NJTP-XXX 25829 9,239$ -$ 9,239$ 1,293$ 92$ 1,386$ 10,625$ 06/24/14 11/11/15 05/23/16 04/30/21 1

MATERNE NORTH AMERICA CORP. NJTP-074 25816 139,130$ -$ 139,130$ 19,478$ 1,391$ 20,870$ 160,000$ 06/26/13 11/27/13 12/16/13 12/31/18 17

MORAN IRON WORKS NJTP-039 25805 6,662$ -$ 6,662$ 2,470$ 176$ 2,646$ 9,308$ 11/26/12 11/26/12 12/17/12 12/17/17 11/22/16 8

NORTHWEST MICHIGAN SURGERY CENTER, LLCNJTP-xxx 28xxx 43,478$ -$ 43,478$ 6,087$ 435$ 6,522$ 50,000$ 04/22/15 07/14/15 08/24/15 07/31/20 5

PLASCON INC. NJTP-054 25812 60,871$ -$ 60,871$ 8,521$ 608$ 9,129$ 70,000$ 03/14/13 03/14/13 04/22/13 04/30/20 10

PRECISION EDGE SURGICAL PRODUCTS NJTP-034 25806 30,435$ -$ 30,435$ 4,261$ 304$ 4,565$ 35,000$ 10/12/12 10/12/12 12/17/12 12/16/17 18

PRESTON FEATHER BUILDING CENTERS NJTP-145 25830 69,565$ -$ 69,565$ 9,739$ 696$ 10,435$ 80,000$ 10/23/15 03/11/16 05/23/16 05/22/21 4

RJG INC. NJTP-136 25831 86,956$ -$ 86,956$ 12,175$ 870$ 13,044$ 100,000$ 04/11/16 04/22/16 05/23/16 04/30/21 8

SHORELINE FRUIT NJTP-035 25807 104,348$ -$ 104,348$ 14,609$ 1,043$ 15,652$ 120,000$ 04/14/11 05/20/11 12/17/12 12/31/17 25

SHORELINE POWER SERVICES NJTP-055 25813 295,663$ -$ 295,663$ 41,393$ 2,957$ 44,349$ 340,012$ 03/18/13 03/18/13 04/22/13 04/30/20 65

SKILLED MANUFACTURING INC. NJTP-072 25817 139,130$ -$ 139,130$ 19,478$ 1,391$ 20,870$ 160,000$ 10/18/13 12/05/13 12/16/13 12/31/18 13

STRATA DESIGN NJTP-XXX 25832 21,739$ -$ 21,739$ 3,043$ 217$ 3,261$ 25,000$ 10/19/12 04/25/16 05/23/16 04/30/21 4

TAMARACK HOLDINGS NJTP-XXX 25833 43,609$ -$ 43,609$ 6,105$ 436$ 6,541$ 50,150$ 01/01/16 12'31/15 05/23/16 04/30/21 4

TENTCRAFT INC. NJTP-070 25818 333,696$ -$ 333,696$ 46,717$ 3,337$ 50,054$ 383,750$ 10/15/13 11/12/13 12/16/13 12/15/18 25

TOTAL 3,180,921$ 7,592$ 3,188,513$ 447,928$ 31,993$ 479,921$ 3,668,435$ 502

ADMINISTRATION FEETRAINING COSTS NET NEW

JOBS TO BE

CREATED

DATES

1/19/201710:31 AM S:\President\BOARD\MEETING MATERIALS\2017\01.23.17 Annual Meeting\NJTP\NJTP AGREEMENTS-full list

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