6/11 Special BOT Meeting – Post 5

Attorney: I think I might respectfully suggest a change to the amendment because it requires the authority of the signature. I think we need only the authority period.

Mazzochi: I’ll amend my motion to remove the word signatory.

Roll call: Wozniak, Birt, McGuire: no, all others yes. Motion passes.

Attorney: one more point: there was some discussion on the retainer of $100,000.  After discussion today with Trustee Wozniak, we looked at it and Alix Partners has agreed to reduce their retainer to $15,000. It shows good faith. This brings this in line with the retainer for Schiff Hardin. This retainer is coming before the board, but the difference is the other one did not.

Hamilton: We’re gonna do the second round of comments.

Wozniak: is there a cap or no?

Attorney: the cap is on the retainer.

McGuire: But total cost will be higher. We have no cap.

Attorney: Oh, it’ll go higher than that.

Bernstein: we have to have these positions filled. We were put in a difficult situation. The former VP of Finances puts us in this position. He should have pursued safety. You do that through diversification. When you put 30% of your funds in one investment, it’s not diversification. And in addition, the place where he put the 30% was not safe. If Alix Group can leave us with a set of sound policy, that alone will be worth that. The radio station, I asked the former financial officials, “did you do anything to look at procedures and protect the rest of the college?” but nothing was done, and that was a gross dereliction of duty. That’s all I have to say.

Roark (student trustee): The point of the new board is to correct mistakes in a respectful manner.

Birt: No further comment.

Napolitano: We’re in the process of reviewing a budget and I want to see the $5 tuition reduction and 5% property tax reduction. I want to see what Alix Group will do with that. The timeline could be affected.

Mazzochi: I am in favor of retaining them and if the members of this board had taken a fraction of the interest to what the administration had done, we would not be in this situation. They nitpick at Alix Partners when they should have been paying attention. If anyone asks for information, that information should be provided promptly, properly, and readily.

McGuire: We are financially healthy thanks to the administration. For 5 months, we were out of compliance. It’s not quite as bad as it seems. The money we lost, 6% of that had been returned already. If we are at a loss at the end, we have insurance. That’s the worst case scenario.

Hamilton: Motion to approve item 9,

Attorney reads the motion (to retain Alix Partners).

Moved and seconded.

Roll call: Wozniak, Birt, McGuire, no, all others yes. Motion passes.