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Contracts reveal cost to UNBC for presidents |
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Written by BERNICE TRICK
Citizen staff
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Friday, 04 July 2008 |
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CHARLES JAGO
Jago's monthly pay will be $21,667 (minus required deductions) compared to Cozzetto's monthly increment totalling $23,805, as stated in the resignation agreement between Cozzetto and UNBC that was also obtained by The Citizen.
According to Cozzetto's May 31 resignation agreement, the university "determined" that, despite his efforts, Cozzetto had difficulty in addressing "significant financial and structural challenges" faced by the university and that it was unreasonable and unfair to expect him to continue in the presidential appointment. Cozzetto agreed with the university's opinion.
Cozzetto's severance contract totalled $492,792 including one year's salary of $285,660 plus lost benefits totalling $57,132, plus $150,000 to surrender his academic appointment as a full professor with tenure.
The Citizen has also learned UNBC agreed to continue waiving tuition fees for Cozzetto's son for the purpose of completing the final three years of his undergraduate degree, if he wishes to remain. Although no amount was given, an average year of tuition at UNBC is $4,277.
Although Cozzetto's agreement did not detail what the "structural challenges" were, a number of faculty and management have left UNBC within the past two years, including: provost Howard Brunt (Victoria); vice-president business and finance Sharon Cochran (retired); vice-president research Max Blouw (Sir Wilfred Laurier University); Tom Berekoff, director of development (Alberta); director of facilities Godfrey Medhurst (retired); registrar Kathy Kielly (PEI); librarian Alison Nussbaumer (Lethbridge) and Bill Lynch is no longer the vice-chair of the board of governors.
When Cozzetto was appointed on July 1, 2006, he engaged consultants Leading by Design Inc. soon after to review the roles and responsibilities of senior positions reporting to the president and their associated organizational structures and recommend improvements to the university's budget planning process.
The consultants report, February, 2007, states:
"While UNBC has a balanced budget for 2006-07, it is not sustainable and that the growth in operating revenue would not be sufficient to cover normal inflation in salary and non-salary costs."
The report noted that to achieve that balanced budget, the university deferred its annual money targeted for equipment replacement to balance it, and found there was no contingency provision to deal with unfavourable variances in income and expenditures.
The consultants analysis found that UNBC's budget gap between annual income and expenditures would grow to $7.9 million, and the cumulative shortfall would reach $22.9 million by 2010-11, if not addressed.
The report points out that from about 2003 to 2007, staffing levels at UNBC had increased by 10 per cent, while full-time student enrollment remained about the same.
Consultants suggested that "with improved structures and processes, there should be opportunities to reduce spending in ways that would not compromise important services."
Consultants called UNBC "a flat organization consisting of a number of disconnected units, many quite small," which involved the president too much in issues and decisions.
Consultants saw this structure as interfering with the achievement of greater efficiencies and creation of a more integrated, campus-wide approach to planning and operations.
"While such a heavy reliance on central direction may have been appropriate in UNBC's early years, there is little support for continuing this mode of operation," the report said.
In summary, consultants said, "significant, broadly based organizational change is needed to create an efficient adaptable structure and enable UNBC to pursue its planning priorities."
The report stated the president and executive team members need to be able to focus on responsibilities central to their roles and other senior administrators need to move beyond their operational duties to assume meaningful leadership roles of importance to the entire university.
Jago's employment agreement gives him "all the authority, powers, duties and responsibilities associated with the offices of the president and vice-chancellor of the university under the University Act. It includes dealing with the Faculty Association, university policies, and all others that require the president to act.
Jago's contract states he will receive 1.75 vacation days or equal pay for each month he works as well as usual benefits like MSP, extended health, vision and dental.
Jago's term as UNBC president and vice-chancellor is from July 2, 2008 "until the earlier of the university's appointment of a new president or July 3, 2009."
Since Jago is involved in other organizations, he has agreed to "declare and remove himself from any situation with respect to advice, guidance and other related services in which he may have any real or perceived conflict of interest between the university and external agencies in which he may be involved."
The university can terminate the agreement for cause at any time without further obligation to Jago, the contract states.
Should Jago's term expire prior to hiring a new president, he has agreed to enter into any further agreements that may be required "to give full effect to the purpose."
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Last Updated ( Sunday, 07 September 2008 )
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