Board of Regents 06 March 2014 Page 1 New Mexico Military

New Mexico Military Institute
Board of Regents
Open Meeting 13:00 06 March 2014
Jack Daniels Room, DLC, NMMI
DRAFT MINUTES
The Board of Regents of New Mexico Military Institute met at 13:00 on Thursday 06 March 2014 in the
Jack Daniels Room in the Daniels Leadership Center at New Mexico Military Institute.
Call to Order:
Mr. Jesse Eckel called the meeting to order.
Pledge of Allegiance
Regents Present:
Mr. Jesse Eckel; President
Mrs. Kea Riggs; Secretary,
COL Fermin Rubio; Vice President,
Mr. Steve Paternoster; Member.
Staff Present: MG Jerry Grizzle, COL David West, COL Judy Scharmer, LTC David Gray, Mr. Kent Taylor, LTC Jeff Savage,
BG Rick Geraci, BG Doug Murray, COL Rick Megahan.
ITEM 1
Approval of Agenda
Mr. Jesse Eckel called for a Motion to approve the Agenda as presented for the
06 March 2014 meeting.
COL Fermin Rubio made Motion to approve the Agenda as presented. Seconded by Mrs. Kea Riggs.
Motion carried: Mr. Jesse Eckel – For, Mrs. Kea Riggs – For, Mr. Steve Paternoster – For, COL Fermin
Rubio – For.
ITEM 2
Approval of 29 January 2014 Minutes
Mr. Jesse Eckel called for a Motion to approve the Minutes of 29 January 2014 as presented.
Mrs. Kea Riggs made Motion to approve the Minutes of 29 January 2014 as presented.
Seconded by COL Fermin Rubio. Motion carried: Mr. Jesse Eckel – For, Mrs. Kea Riggs- For,
Mr. Steve Paternoster – For, COL Fermin Rubio - For.
ITEM 3
Approval of Auction Inventory
COL Judy Scharmer (Chief Financial Officer) approached the Board of Regents regarding approval of the
auction inventory. She explained that New Mexico State Agencies are not allowed by law to dispose of
Board of Regents
06 March 2014
Page 1
fixed assets without approval from Board of Regents. A NM State Agency can only dispose of items
through a public auction, this being a transparent method of disposing of public assets. If the Regents
approve the inventory then the State of NM requires that list to be forwarded to the State Auditor then
30 days must pass before items can be disposed of via a public auction or via an open bid process. NMMI
has chosen to auction these items.
A list of fixed assets was placed in each Regent packet for the Regents to peruse. The total acquisition
cost is $1.6 million, however the net book value is $16 000 after depreciation. A Fixed Asset Committee
including LTC David Gray (Internal Auditor) did some specific testing and verified the majority of the
assets. In the Committee’s opinion, the list is materially stated as ‘correct’.
Mr. Paternoster asked if the assets will be disposed of in lots. COL Scharmer confirmed that yes they
would be. Steve then mentioned that he sees items that would be ideal for the YMCA and asked if, due
to his position as Regent member there would be a conflict of interest. COL Scharmer explained that
there would be no conflict of interest as it is a public auction.
MG Grizzle asked if NMMI can eliminate the need to do this periodically. COL Scharmer commented that
last year the capitalization threshold was raised from $1 000 to $ 5 000 which will now eliminate a lot of
the small items. Any items of a less than $5 000 value can now be disposed of by the school as is deemed
fit. COL Scharmer answered in the affirmative to Mr. Eckel’s question as to whether NMMI will hire an
auctioneer.
Mr. Jesse Eckel called for a Motion to approve the auction inventory. Motion made by COL Fermin
Rubio. Seconded by Mrs. Kea Riggs. Motion carried: Mr. Steve Paternoster – For, Mr. Jesse Eckel – For,
Mrs. Kea Riggs – For, COL Fermin Rubio - For. Motion approved with all in favor.
ITEM 4
Approval of student fee insurance
Currently NMMI cadets have to have proof of health insurance and have to purchase accident insurance.
The Affordable Care Act of 01 January 2012 along with the health insurance proposed by the current
vendor leads the annual premium to be $1295 from the current $337. There would be an increase in
benefit to cover a certain level of benefit, for example, prescription drugs. This led to COL Scharmer
reflecting as to why NMMI is mandating cadets to have health insurance. International students are not
required to have the insurance. Administration has decided to put the following recommendation for
approval to the Regents; To eliminate the proof of health insurance policy and to eliminate accident
insurance – in lieu of this, COL Scharmer asks that the Regents approve tuition refund insurance with the
intention to protect a family’s financial interest if, for example, a cadet withdraws within a semester.
The situation now is that the semester fees have to be paid in full even if a cadet withdraws early.
Mr. Paternoster asked COL Scharmer if the aforementioned situation is the source of most of the bad
debt. COL Scharmer confirmed yes and that the tuition refund insurance would be a hedge against most
of the bad debt. An analysis of the first semester of 2013 displayed that $93 000 of bad debt was
incurred by those who withdrew early. In the event of tuition refund insurance with an unpaid balance
NMMI will receive 50% of the remaining amount of the tuition portion.
Board of Regents
06 March 2014
Page 2
Some of the benefits include the fact that the tuition refund insurance premium will not exceed
$267.00, and the financial burden on the family will not increase.
COL Rubio asked how many National Guard members are students at NMMI. B Rick Geraci responded
with between 45 and 55. COL Rubio explained that NG members have TriCare which is really
inexpensive. MG Grizzle said that there are a lot of individual circumstances but the idea here is to get
out of the health insurance market. BG Geraci commented that he had a discussion with NMMI’s on
site healthcare manager the content of which revealed that her nurses deal with insurance issues 25%
of their time rather than medical matters. This new recommendation will improve the care of cadets.
COL Rubio asked how NMMI would educate parents that insurance is their responsibility. BG Geraci
stated that there will be a portion devoted to an explanation of medical care within the initial parent
pack.
Mr. Paternoster commented that this recommendation is the only way of handling the health insurance
situation and is a great vehicle to reduce the bad debt.
Mr. Jesse Eckel called for a Motion to approve student fee insurance. Motion made by
COL Fermin Rubio. Seconded by Mrs. Kea Riggs.
Motion carried: Mr. Steve Paternoster – For, Mr. Jesse Eckel – For, Mrs. Kea Riggs – For,
COL Fermin Rubio - For. Motion carried with all in favor.
ITEM 5
Approval of Age Waiver
LTC Jeff Savage approached the Board of Regents with an age waiver request. The cadet in question
turned age 22 just before matriculating. His details were stored within the Regents folders.
Mr. Paternoster queried the ACT composite score of 18 – LTC Savage stated that this was the minimum
score but was deemed to be about average. There was no further discussion.
Mr. Jesse Eckel called for a Motion to approve the age waiver. Motion made by
Mrs. Kea Riggs. Seconded by COL Fermin Rubio.
Motion carried: Mr. Steve Paternoster – For, Mr. Jesse Eckel – For, Mrs. Kea Riggs – For,
COL Fermin Rubio - For. Motion carried with all in favor.
ITEM 6
Approval of Gene Hardman memorial plaque
COL David West approached the Board of Regents for approval of a Gene Hardman memorial plaque for
the tennis courts. Mr. Paternoster commented that the late Eugene Hardman was a contemporary of
Roger Staubach at The Institute and was a really good guy.
Mr. Jesse Eckel called for a Motion to approve the memorial plaque. Motion made by
Mrs. Kea Riggs. Seconded by COL Fermin Rubio.
Motion carried: Mr. Steve Paternoster – For, Mr. Jesse Eckel – For, Mrs. Kea Riggs – For,
COL Fermin Rubio - For. Motion carried with all in favor.
Board of Regents
06 March 2014
Page 3
Mr. Jesse Eckel called for a motion to move to a Closed Executive Session. Motion made b y COL Rubio
and seconded by Mrs. Riggs. Motion carried with all in favor.
ITEM 7
Approval to move to Closed Executive Session for the purpose of the evaluation of
Superintendent/President and Internal Auditor
The only matters discussed in the closed meeting were those matters stated in the
agenda. No votes were taken during the closed session. Mr. Jesse Eckel entertained
a motion from the chair to emerge from the Closed Executive Session.
Motion made by COL Rubio, Seconded by Mrs. Kea Riggs. Motion carried –COL Fermin Rubio – For, Mrs.
Kea Riggs – For, Mr. Jesse Eckel – For, Mr. Steve Paternoster - For.
Mr. Jesse Eckel called the open meeting back to order. Mr. Jesse Eckel conducted a roll call
vote to return from Executive session. Vote carried in full by Regents. Motion carried.
ITEM 8
Renewal of Superintendent/President and Internal Auditor employment contracts
The Board of Regents returned from the Closed Executive session and Mr. Jesse Eckel called the open
meeting back to order. Mr. Eckel called for a motion to recommend contracts for
Superintendent/President and Internal Auditor be extended . Motion made by Mrs. Kea Riggs.
Seconded by COL Fermin Rubio.
Motion carried: Mr. Steve Paternoster –For, Mr. Jesse Eckel-For, Mrs. Kea Riggs -For,
COL Fermin Rubio-For.
ITEM 9
Regent Committee Assignments approval
Mr. Jesse Eckel commented that he and his fellow Regents had reviewed the 9 different standing
committees and viewed them as too excessive. Thus there is a proposal as follows;
2014 NMMI Regent Committee Assignments
Executive Committee – MG Jerry Grizzle
Chairperson – Mr. Jesse Eckel Member – COL Fermin Rubio
Support Services (I.S. Admissions Facilities) – COL David West
Chairperson – COL Fermin Rubio Member – New Regent
Finance & Audit – COL Judy Scharmer
Chairperson – Mr. Jesse Eckel
Member - Mrs. Kea Riggs
Board of Regents
06 March 2014
Page 4
Cadet Life – BG Rick Geraci
Chairperson – Mr. Steve Paternoster
Member – Mrs. Kea Riggs
Academics - BG Doug Murray
Chairperson - Mr. Steve Paternoster
Member – COL Fermin Rubio
Athletics – COL Reggie Franklin
Chairperson – New Regent
Member – Mr. Jesse Eckel
The initial suggestion was to have Mr. Steve Paternoster as member to The Finance and Audit
Committee. A discussion ensued where Mr. Paternoster suggested that Mr. Eckel take on a protégé
to this committee to take on knowledge of Finance & Audit. Mr. Eckel asked for a recommendation.
Mr. Paternoster made a recommendation as to Mrs. Kea Riggs.
Mr. Jesse Eckel called for a Motion to approve the committee assignments as modified. Motion made
by Mr. Steve Paternoster. Seconded by Mrs. Kea Riggs.
Motion carried: Mr. Steve Paternoster – For, Mr. Jesse Eckel – For, Mrs. Kea Riggs – For,
COL Fermin Rubio - For. Motion carried with all in favor.
ITEM 10
Superintendent update
MG Grizzle stated that the Knowles Scholarship fund will receive $1 362 800 should Governor Martinez
sign off as ‘approved’ by Wednesday March 12 at 1200. It is still an annual challenge for NMMI to
have the Knowles scholarship as a line item at the Legislature and NMMI continues to work on this.
There are 191 Knowles scholars. 97 of whom are on the Commandants/Deans/Superintendents List
with a GPA of 3.0 or better. 164 of the 191 are classed as being in good standing academically and in
the corps.
MG Grizzle has the initiative of filming the recipients of the scholarships and have the 191 around the
flagpole declaring their thanks to the legislators. There will also be a written communication to the
legislators and Mrs. Riggs asked that NMMI include the ACT scores within the communication.
If approved by the Governor, NMMI will receive $153 000 from the severance tax bonds. This will
enable permanent turf to be installed on the infield of the baseball field.
If approved by the Governor, NMMI will receive $4 800 000 from general obligation bonds for the
renovation of Marshall Hall. If signed by the Governor, his will still need to go to a ballot in
November 2014 to be approved by the citizens.
Board of Regents
06 March 2014
Page 5
MG Grizzle remarked that with regard to severance tax bond and general obligation bond funding that
it can take several years from start to end for its life cycle – the example is Lusk Hall. This started with a
consideration of the renovation in 2009. The bonds were only approved by the citizens in 2011 and
passed in 2012 with the money for the renovation only received in 2013 and construction to end late
2014.
The cost comes in $500 000 under budget but the Lusk Hall inhabitants will be in 6 months
later than anticipated. Mr. Jesse Eckel enquired as to whether the contracts for the Portables can be
extended to take into account the later date to return to Lusk. Mr. Kent Taylor commented that the
contract for the Portables expires in October 2014 but he has held positive communications with the
owners and feels confident of a contract extension.
The renovation of Bates Hall has started with asbestos remediation occurring during Spring Break.
The Sally Port magazine has been issued and the producers of said magazine have been given the remit
of producing this twice a year. The Dispatches magazine was printed today with the producers of the
Dispatches having the remit of producing 6 of these a year (one every 2 months) – this magazine has an
audience of 25 000.
Graduation will take place on May 24 at Colt Field, the same venue as last year. Congressman Steven
Pearce will be the commencement speaker. MG James Laster (Chief of Staff SOCOM) is the
commissioning speaker. Phil Robertson of Duck Dynasty fame has been invited to be the Baccalaureate
Speaker.
The 3rd class speaker is Lance Benham and 1st class speaker is to be advised – the invitee would be the
first female speaker.
Trail Ride preparations are going well – the venue is the Brad Christmas Ranch in Wagon Mound, NM.
Dates – June 11 to 14.
Recruitment – Admissions are driving up the number of applications received - 30% of applicants end up
here at NMMI. The statistics reveal that we are 225 applications ahead of last year.
Retention efforts are going very well with ice cream socials; indeed 227 have already reapplied for next
year. MG Grizzle is in the midst of the recruiting cycle right now, taking in Oklahoma, Albuquerque,
Dallas, Fort Worth.
MG Grizzle concluded by referring to the Regents handbook and the response plan to an active shooter
situation. Mr. Paternoster commented that this is the best work he has ever seen and that this must
have great value to other administrators in the community. The Regents were then shown via DVTEL
the security cameras on campus which can now be accessed via a smartphone. MG Grizzle assured the
Regents that this was a great tool in recruitment as it comforts and reassures the parents regarding
security on campus. As an aside, the 1 to 1 computer initiative has also been tremendously well
received at recruiting events.
Board of Regents
06 March 2014
Page 6
ITEM 11
NMMI Safety Policy Review and Tour
With the Regents next due to receive a Tour of the TLA Command Post away from the meeting venue
and with no further actionable items COL David West suggested that the meeting be adjourned then the
tour can commence. Before adjourning Mr. Eckel confirmed the next meeting date of 30 April 2014.
Mr. Jesse Eckel called for a motion to adjourn the meeting. Motion made by Mrs. Kea Riggs. Seconded
by Mr. Steve Paternoster. Motion carried: Mr. Steve Paternoster – For, Mr. Jesse Eckel – For, Mrs. Kea
Riggs – For, COL Fermin Rubio - For. Motion carried with all in favor.
ITEM 12
Confirmation of next meeting
The next meeting date is 30 April 2014 at 1300.
---------------------------------------------------------------------------------------------------------------------------------------------------------------For the Board of Regents
____________________________
Jesse Eckel, President
ATTEST:
____________________________
Kea Riggs, Secretary/Treasurer
Board of Regents
06 March 2014
Page 7

Download Report