Board of Regents Meeting
June 11-13, 2002»
Butrovich Building»
University of Alaska Fairbanks Campus
Fairbanks, Alaska

»»PUBLIC COMMENT INFORMATION

PUBLIC TESTIMONY WILL BE HEARD IN TWO SESSIONS: TUESDAY AFTERNOON FROM APPROXIMATELY 2:00 P.M. - 3:00 P.M. AND THURSDAY MORNING FROM APPROXIMATELY 8:00 A.M. TO 9:00 A.M. in the Regents' Conference Room 109, Butrovich Building. »Sign-up sheets will be available prior to both meetings.

Comments are limited to three minutes per individual. Written comments are accepted and will be distributed to the Board of Regents and President Hamilton following the meeting.

AGENDA REFERENCES

Full agendas with references are sent to all University of Alaska campus libraries. For further information, please call the Board of Regents' Office at 474-7908 or e-mail SYBOR@alaska.edu.

MEETING SCHEDULE

Times for board meetings are subject to modification within the June 11-13, 2002 timeframe.

Tuesday, June 11, 2002

12:00 noon - 1:00 p.m.»
Lunch will be provided in the Regents' Conference Room 109.

1:00 p.m. - 2:00 p.m.»
Full Board will meet in Room 109 for the President's Report and miscellaneous presentations.

2:00 p.m. - 3:00 p.m.»
Full Board will meet in the Room 109 to hear public testimony.

3:00 p.m. - 6:00 p.m.»
Human Resources Committee will meet in the Room 109.

3:00 p.m. - 6:00 p.m.»
Facilities and Land Management Committee will meet in the Sherman Carter Conference Room 204.

Wednesday, June 12, 2002

8:00 a.m. - 1:00 p.m.»
Full Board will meet in joint session with the State Board of Education and Early Development in Room 109. Lunch will be provided for participants.

1:00 p.m. - 5:00 p.m.»
Academic and Student Affairs Committee will meet in Room 109.

1:00 p.m. - 5:00 p.m.»
Finance and Audit Committee will meet in the Sherman Carter Conference Room 204.

6:00 p.m. - 7:30 p.m.»
President and Mrs. Hamilton will host a reception at the President's Residence for invited guests.

Thursday, June 13, 2002

8:00 a.m. - 9:00 a.m.»
Full Board will meet in the Room 109 to hear public testimony.

9:00 a.m. - 10:00 a.m.»
Planning and Development Committee will meet in Room 109.

10:00 a.m. - 12:00 noon»
Full Board will meet in Room 109. An Executive Session is scheduled as one of the last items of business and is expected to last approximately one hour.

12:00 noon»
Adjourn - a lunch will be provided in Room 109.

Messages can be left at the Board of Regents' Office: 474-7908, fax: 474-6342. Messages should indicate that they are for participants in the Board of Regents' meeting.

»

AGENDAS

Agenda»
Board of Regents»
Meeting of the Full Board»
Tuesday-Thursday, June 11-13, 2002»
Room 109 Butrovich Building, UAF Campus
Fairbanks, Alaska

Tuesday, June 11, 2002 - 1:00 p.m.

I. » »Call to Order»»

II. »»Adoption of Agenda

MOTION

"The Board of Regents adopts the agenda as presented.

I. Call to Order
II. Adoption of Agenda
III. Approval of Minutes
IV. President's Report
V. Approval of Resolutions of Appreciation

A. Regent Mark Begich
B. Regent Joseph Hardenbrook
C. Regent Marlene Johnson
D. Registrar Ann Tremarello

VI. Legislative Report

VII. Public Testimony (June 11, 2002 at approximately 2:00 p.m.)

VIII. Joint Meeting with State of Alaska Board of Education and Early Development

IX. Public Testimony (June 13, 2002 at approximately 8:00 a.m.)

X. Consent Agenda

A. Academic and Student Affairs Committee

1. Approval of Academic Degree Programs at University of Alaska Anchorage

a. Certificate in Pharmacy Technology
b. Associate of Applied Science in Radiologic Technology
c. Bachelor of Arts in Early Childhood Education
d. Master of Public Health in Public Health Practice

2. Approval of Addition and Deletion of Academic Programs at the University of Alaska Fairbanks

a. Deletion of Master of Arts, Elementary Education
b. Deletion of Bachelor of Education
c. Addition of Certificate in Health Care Reimbursement
d. Addition of Master of Software Engineering

3. Approval of University of Alaska Fairbanks Policies on the Appointment and Evaluation of Faculty
4. Approval of Re-establishment of School of Education at the University of Alaska Anchorage

B. Facilities and Land Management Committee

1. Approval of the University of Alaska Fairbanks Campus Master Plan
2. Approval of Project and Schematic Design for University of Alaska Fairbanks Arctic Health Research Building Laboratory Revitalization
3. Approval of Project and Schematic Design for University of Alaska Fairbanks West Ridge Utilidor Extension Project»
4. Approval of the FY04 Capital Budget Request Guidelines
5. Authority to Accept Old Fairbanks Courthouse and Fairbanks Parking Structure from the State of Alaska
6. Authority to Approve Economic Development Agency Land Covenant at Fort Yukon
7. Naming of Facilities (Revenue & Marketing)

C. Finance and Audit Committee

1. Approval of FY2003 Student Government Budgets
2. Acceptance of the FY03 Capital Budget Appropriations
3. Acceptance of the FY03 Operating Budget Appropriations and Approval of the FY03 Operating Budget Distribution Plan
4. Approval of FY04 Operating Budget Request Guidelines
5. Authorization of General Revenue Bond Sale
6. Authorization for Interim Funding for Capital Projects
7. Approval of Revised June 19, 1998 Plan for Use of Stampede Mine Proceeds

D. Human Resources Committee

1. Approval of Temporary Transition Salary Grid for Implementation of a Classification System

E. Approval of Revisions to Industrial Security Resolution
F. Approval of Standards for Board of Regents' Special Recognition

XI. New Business and Committee Reports

A. Academic and Student Affairs Committee
B. Facilities and Land Management Committee
C. Finance and Audit Committee
D. Human Resources Committee
E. Planning and Development Committee

XII. Alaska Commission on Postsecondary Education Report

XIII. UA Foundation Report

XIV. Future Agenda Items

XV. Board of Regents' Comments

XVI. Executive Session

XVI. Adjourn

This motion is effective June 11, 2002."

III.»Approval of Minutes

MOTION #1

"The Board of Regents approves the minutes of its regular meeting of March 7-8, 2002 as presented. This motion is effective June 11, 2002."

MOTION #2

"The Board of Regents approves the minutes of its special meeting of April 15, 2002 as presented. This motion is effective June 11, 2002."

MOTION #3

"The Board of Regents approves the minutes of its emergency meeting of May 7, 2002 as presented. This motion is effective June 11, 2002."

IV.»President's Report

The President's Report will include recognition of "Make Students Count" awardees, introduction of the new Faculty Liaison, Eva Kopacz, and updates regarding issues of importance to the University of Alaska.

V.»Approval of Resolutions of Appreciation

A.»Regent Mark Begich

WHEREAS, Mark Begich served with distinction as a member of the University of Alaska Board of Regents from May 2001 when Governor Tony Knowles appointed him to a regular eight-year term; and

WHEREAS, Mark Begich has long been active in local and state government, and served as a Municipality of Anchorage Assemblyman for ten years; and

WHEREAS, Mark Begich worked as a special assistant to Anchorage Mayor Tony Knowles from 1984 until 1987, and later served as a staff aide to Rep. Dave Donley and Sen. Pat Rodey; and

WHEREAS, Mark Begich has served the Board of Regents as Chair of the Planning and Development Committee, and as a member of the Facilities and Land Management Committee, the Academic and Student Affairs Committee, and as a Board of Regents' representative on the Alaska Commission on Postsecondary Education; and

WHEREAS, Mark Begich earlier served as a member and chair of the Alaska Commission on Postsecondary Education, and was instrumental in bringing the student loan corporation out of debt to its present situation where the program is paying dividends to the state; and

WHEREAS, Mark Begich's appointment to the Board of Regents was terminated when the Alaska State Legislature, by failing to vote, did not confirm gubernatorial appointments to four state boards, including the Board of Regents; and

WHEREAS, the Board of Regents deeply regrets the loss of Mark Begich from the Board of Regents where his service, experience and expertise have been invaluable to the board's deliberations; and

NOW, THEREFORE, BE IT RESOLVED that the Board of Regents of the University of Alaska takes official recognition of Mark Begich's contributions to the University of Alaska and the State of Alaska; and

BE IT FURTHER RESOLVED that the Board of Regents extends to Mark Begich its gratitude for his unfortunately abbreviated service to the Board of Regents and extends its best wishes for his continued success; and

BE IT FURTHER RESOLVED that this resolution be appropriately engrossed and conveyed to Mark Begich, with a copy to be incorporated into the official minutes of the June 11-13, 2002, meeting of the Board of Regents.

MOTION

"The Board of Regents approves the Resolution of Appreciation for Regent Mark Begich. This motion is effective June 11, 2002."

B.»Regent Joseph Hardenbrook

WHEREAS, Joseph Hardenbrook served with distinction as the student member of the University of Alaska Board of Regents from May 2001 when Governor Tony Knowles appointed him to a regular term of two years for the student regent; and

WHEREAS, Joseph Hardenbrook, as a National Merit Scholar at the University of Alaska Fairbanks, has been active in student government throughout his academic career; and

WHEREAS, Joseph Hardenbrook represented student concerns to the university administration and elected officials as speaker of the Coalition of Student Leaders and Senate Chair of the Associated Students of UAF; and

WHEREAS, Joseph Hardenbrook has also served as a student assistant to the university's budget office, and has been a member of the University's College Bowl team, the UA Museum Assessment Project Committee and the Fairbanks Chamber of Commerce UA Committee; and

WHEREAS, Joseph Hardenbrook is a strong advocate for student concerns about issues facing the Board of Regents, and has served as a member of both the Academic and Student Affairs and Facilities and Land Management Committees; and

WHEREAS, Joseph Hardenbrook's service to the Board of Regents was terminated when the Alaska State Legislature, by failing to vote, did not confirm gubernatorial appointments to four state boards, including the Board of Regents; and

WHEREAS, the Board of Regents deeply regrets the loss of Joseph Hardenbrook from the Board of Regents where his enthusiasm and experience have been invaluable to the board's deliberations; and

NOW, THEREFORE, BE IT RESOLVED that the Board of Regents of the University of Alaska takes official recognition of Joseph Hardenbrook's contributions to the University of Alaska, and congratulates him on his graduation from UAF on May 12, 2002; and

BE IT FURTHER RESOLVED that the Board of Regents extends to Joseph Hardenbrook its gratitude for his unfortunately abbreviated service to the Board of Regents and extends its best wishes for his continued success; and

BE IT FURTHER RESOLVED that this resolution be appropriately engrossed and conveyed to Joe Hardenbrook, with a copy to be incorporated into the official minutes of the June 11-13, 2002, meeting of the Board of Regents.

MOTION

"The Board of Regents approves the Resolution of Appreciation for Regent Joseph Hardenbrook. This motion is effective June 11, 2002."

C.»Regent Marlene Johnson

WHEREAS, Marlene Johnson served with distinction as a member of the University of Alaska Board of Regents from May 2001 when Governor Tony Knowles appointed her to a regular eight-year term of office; and

WHEREAS, Marlene Johnson is an Alaska Native, born and raised in Hoonah, and is one of the founding board members of the Sealaska Corporation, serving as chair of the board from 1982 until 1992; and

WHEREAS, Marlene Johnson also serves on the Commercial Fishery Entry Commission, a post to which she was appointed in 1996; and

WHEREAS, Marlene Johnson has also been a member of the advisory council for the University of Alaska's School of Fisheries and Ocean Sciences since
1992; and

WHEREAS, Marlene Johnson has been active in the Huna Totem Corporation, Tlingit and Haida Central Council, and Rural CAP, and was named Citizen of the Year by the Alaska Federation of Natives in 1995; and

WHEREAS, Marlene Johnson was named to the Rural Governance and Empowerment Commission in 1998; and

WHEREAS, Marlene Johnson has served the Board of Regents as Chair of the Academic and Student Affairs Committee, and as a member of the Human Resources and Planning and Development Committees; and

WHEREAS, Marlene Johnson's appointment to the Board of Regents was terminated when the Alaska State Legislature, by failing to vote, did not confirm gubernatorial appointments to four state boards, including the Board of Regents; and

WHEREAS, the Board of Regents deeply regrets the loss of Marlene Johnson from the Board of Regents where she has been a strong advocate for expansion of university services to rural Alaska, and where her life's experiences, her commitment to public service and her parliamentary expertise have been invaluable to the board's deliberations; and

NOW, THEREFORE, BE IT RESOLVED that the Board of Regents of the University of Alaska takes official recognition of Marlene Johnson's contributions to the University of Alaska and the State of Alaska; and

BE IT FURTHER RESOLVED that the Board of Regents extends to Marlene Johnson its gratitude for her unfortunately abbreviated service to the Board of Regents and extends its best wishes for her continued success; and

BE IT FURTHER RESOLVED that this resolution be appropriately engrossed and conveyed to Marlene Johnson, with a copy to be incorporated into the official minutes of the June 13, 2002, meeting of the Board of Regents.

MOTION

"The Board of Regents approves the Resolution of Appreciation for Regent Marlene Johnson. This motion is effective June 11, 2002."

D.»Registrar Ann Tremarello

WHEREAS, Ann Tremarello has served the University of Alaska Fairbanks with distinction from 1957 to 2002 in collegiate admissions and records; and

WHEREAS, Ann Tremarello's association with the university began in 1953 when she was a first-year student of accounting and management, earning her degree in business administration in 1957; and

WHEREAS, Ann Tremarello has provided countless students with the guidance they needed to navigate all the requirements for successful registration and ultimately graduation from the university; and

WHEREAS, Ann Tremarello's dedication to students is legendary because she has always demonstrated by her words and actions a firm commitment to enhancing their experiences as students of the University of Alaska; and

WHEREAS, Ann Tremarello successfully oversaw the reorganization of UAF's Admissions and Records Department to better serve the needs of the students and the institution and has long been the administrator of the documentation of all the degrees awarded by the University of Alaska Fairbanks; and

WHEREAS, in nearly a half century of outstanding service to higher education and the University of Alaska Fairbanks, Ann Tremarello has seen enrollment grow from less than 400 students to nearly 9,000 students; and

WHEREAS, Ann Tremarello has had a major role in helping students achieve their own personal goals, and has overseen the graduation of thousands of students, many of whom remain in Alaska and contribute daily to the quality of life in the 49th state; and

WHEREAS, UAF Chancellor Marshall Lind has conferred upon Ann Tremarello the title of Registrar Emerita of the University of Alaska Fairbanks;

NOW, THEREFORE, BE IT RESOLVED that the Board of Regents of the University of Alaska takes official recognition of Ann M. Tremarello's remarkable and lengthy service to the University of Alaska and to higher education in the State of Alaska, and extends to her this resolution of recognition and appreciation; and

BE IT FURTHER RESOLVED that this resolution be appropriately engrossed and conveyed to Ann Tremarello with a copy to be incorporated into the official minutes of the June 11-13, 2002, meeting of the Board of Regents.

MOTION

"The Board of Regents approves the Resolution of Appreciation for Registrar Emerita Ann Tremarello. This motion is effective June 11, 2002."

VI.»Legislative Update

Ann Ringstad, director of Government Relations, will give an update on the recently completed legislative session and its impacts on the University of Alaska.

VII.»Public Testimony»[Scheduled for approx. 2:00 p.m.]

Comments are limited to three minutes per individual. Written comments are accepted and will be distributed to the Board of Regents and President Hamilton by the Board of Regents' Officer following the meeting.

[RECESS until 8:00 a.m. on Wednesday, June 12, 2002.]

WEDNESDAY, JUNE 12, 2002

VIII.»Joint Meeting with State of Alaska Board of Education and Early Development

The Board of Regents will meet in joint session with the State of Alaska's Board of Education and Early Development. A separate agenda has been prepared for this meeting and is included with the agenda packet. The Full Board will recess after this meeting until Thursday, June 13, 2002, at approximately 8:00 a.m.

THURSDAY, JUNE 13, 2002

IX.»Public Testimony»[Scheduled for approx. 8:00 a.m.]

Comments are limited to three minutes per individual. Written comments are accepted and will be distributed to the Board of Regents and President Hamilton by the Board of Regents' Officer following the meeting.

X.»Consent Agenda»[Will begin following committee meetings]

MOTION

"The Board of Regents approves the recommendations as stated below. This motion is effective June 13, 2002."

A.»Academic and Student Affairs Committee

1.»Approval of Academic Degree Programs at University of Alaska Anchorage»- Reference 10

MOTION

"The Board of Regents approves the following academic degree programs at the University of Alaska Anchorage:

1. Certificate in Pharmacy Technology
2. Associate of Applied Science in Radiologic Technology
3. Bachelor of Arts in Early Childhood Education
4. Master of Public Health in Public Health Practice

This motion is effective June 13, 2002."

2.»Approval of Addition and Deletion of Academic Programs at the University of Alaska Fairbanks»- Reference 11

MOTION

"The Board of Regents deletes the following academic degree programs at the University of Alaska Fairbanks:

1. Deletion of Master of Arts, Elementary Education
2. Deletion of Bachelor of Education

The Board of Regents further approves the following academic degree programs at the University of Alaska Fairbanks:

1. Addition of Certificate in Health Care Reimbursement
2. Addition of Master of Software Engineering

This motion is effective June 13, 2002."

3.»Approval of University of Alaska Fairbanks Policies on the Appointment and Evaluation of Faculty»- Reference 12

MOTION

"The Board of Regents approves the revisions made to the University of Alaska Fairbanks Policies on Faculty Appointment and Evaluation as presented. This motion is effective June 13, 2002."

4.»Approval of Re-establishment of School of Education at the University of Alaska Anchorage

MOTION

"The Board of Regents re-establishes the School of Education at the University of Alaska Anchorage. This motion is effective June 13, 2002."

B.»Facilities and Land Management Committee

1.»Approval of the University of Alaska Fairbanks Campus Master Plan»- Reference 1

MOTION

"The Board of Regents approves the UAF Campus Master Plan for the University of Alaska Fairbanks as presented. This motion is effective June 13, 2002."

2.»Approval of Project and Schematic Design for University of Alaska Fairbanks Arctic Health Research Building Laboratory Revitalization»- Reference 2

MOTION

"The Board of Regents approves the project and schematic design for the Arctic Health Research Building Laboratory Revitalization Phase I Project with a total project cost not to exceed $2,387,000, but that the project not be awarded until the vice president for finance confirms the availability of funds. This motion is effective June 13, 2002."

3.»Approval of Project and Schematic Design for University of Alaska Fairbanks West Ridge Utilidor Extension Project»- Reference 3

MOTION

"The Board of Regents approves the project and schematic design for the University of Alaska Fairbanks West Ridge Utilidor Extension as presented, and authorizes the university administration to bid and award contracts not to exceed a total project cost of $7.0 million, subject to availability of funds as determined by the vice president for finance. This motion is effective June 13, 2002."

4.»Approval of the FY04 Capital Budget Request Guidelines»- Reference 4

MOTION

"The Board of Regents adopts the guidelines for the FY04 Capital Budget Request as presented. This motion is effective June 13, 2002."

5.»Authority to Accept Old Fairbanks Courthouse and Fairbanks Parking Structure from the State of Alaska

MOTION

"The Board of Regents approves the acceptance at no cost, other than transaction costs, the real estate known as the Old Fairbanks Courthouse and the Courthouse Parking Garage and, without limitation, authorizes the director for the University of Alaska Land Management Office to execute any and all documents necessary to apply for, acquire, and maintain ownership or other interests in the Old Fairbanks Courthouse and Courthouse Parking Garage. This motion is effective June 13, 2002."

6.»Authority to Approve Economic Development Agency Land Covenant at Fort Yukon»- Reference 5

MOTION

"The Board of Regents acknowledges the restrictions imposed by the proposed EDA Land Covenant and authorizes the director for the University of Alaska Land Management Office to execute the Land Covenant as set forth in Reference 5 or as it may be modified at the discretion of the director. This motion is effective June 13, 2002."

7.»Naming of Facilities (Revenue & Marketing)»- Reference 6

MOTION

"The Board of Regents authorizes the UAA administration to continue with the Nerland Agency Strategy and proceed with negotiations for a building naming sponsor for the UAA Sports Complex. President Hamilton or designee shall approve any final proposal prior to any corporate sponsorship agreement being executed. This motion is effective June 13, 2002."

C.»Finance and Audit Committee

1.»Approval of FY2003 Student Government Budgets»- Reference 13

MOTION

"The Board of Regents approves student government fees and budgets as presented in Reference 13, and authorizes the vice president for finance to review, modify, and approve fees and budgets for those student governments not included in Reference 13, and to approve requests for increased expenditure authority for all student government organizations. This motion is effective June 13, 2002."

2.»Acceptance of the FY03 Capital Budget Appropriations»- Reference 14

MOTION

"The Board of Regents accepts the FY03 Capital Budget Appropriation as presented. This motion is effective June 13, 2002."

3.»Acceptance of the FY03 Operating Budget Appropriations and Approval of the FY03 Operating Budget Distribution Plan»- Reference 15

MOTION #1

"The Board of Regents accepts the FY03 Operating Budget Appropriations as presented. This motion is effective June 13, 2002."

MOTION #2

"The Board of Regents approves the FY03 Operating Budget Distribution Plan as presented. This motion is effective June 13, 2002."

4.»Approval of FY04 Operating Budget Request Guidelines»- Reference 16

MOTION

"The Board of Regents approves the FY04 Operating Budget Request Guidelines as presented. This motion is effective June 13, 2002."

5.»Authorization of General Revenue Bond Sale

MOTION #1

"The Board of Regents approves the 'University of Alaska Anchorage Community and Technical College Center Project' at a total project cost not to exceed $14.0 million, $14.0 million of which shall be funded with university general revenue bond proceeds. This motion is effective June 13, 2002."

MOTION #2

"The Board of Regents approves the 'Juneau Readiness Center/UAS Joint Facility (Juneau) Project' at a total project cost not to exceed $15.388 million, $5.470 million of which shall be funded with university general revenue bond proceeds. This motion is effective June 13, 2002."

MOTION #3

"The Board of Regents approves the 'UAF West Ridge Research Building and Related Science Facilities Project' at a total project cost not to exceed $10.0 million, $8.0 million of which shall be funded with university general revenue bond proceeds. This motion is effective June 13, 2002."

MOTION #4

"The Board of Regents adopts the bond resolution for University of Alaska General Revenue Bond Series K as presented. This motion is effective June 13, 2002."

6.»Authorization for Interim Funding for Capital Projects»- Reference 17

MOTION #1

"The Board of Regents directs the administration to request the State Bond Committee of the State of Alaska to make a Declaration of Intent to Issue Reimbursement Bonds for all University of Alaska projects within HB528 that President Hamilton may elect to identify. This motion is effective June 13, 2002."

MOTION #2

"The Board of Regents:

1. authorizes and directs the administration to negotiate with Wells Fargo Bank, or other bank selected at the discretion of the vice president for finance;

2. arranges interim financing for the UAA Ecosystems and Biomedical Health Facility in the amount of $4.85 million and such other projects in such other amounts as President Hamilton may approve as warranting interim funding in order to maintain programmatic momentum or advanced construction schedules;

3. authorizes the vice president for finance or designee to execute any and all documents required by Wells Fargo Bank or other bank in order to secure such interim financing(s), and

4. authorizes the officers of the Board of Regents to execute and attest to any and all resolutions approved by the General Counsel that may be required by Wells Fargo Bank or other bank as if such resolutions were before the Board of Regents for its consideration on June 12 through June 13, 2002.

This motion is effective June 13, 2002."

7.»Approval of Revised June 19, 1998 Plan for Use of Stampede Mine Proceeds - Reference 18

MOTION

"The Board of Regents authorizes the administration to deposit all proceeds from the sale of the Stampede Mine to an endowment for the benefit of the Geological Engineering and Mining Engineering programs. The earnings of the endowment shall be expended as described in proposals approved by the dean of the School of Mineral Engineering and the UAF Provost. This motion is effective June 13, 2002."

D.»Human Resources Committee

1.»Approval of Temporary Transition Salary Grid for Implementation of a Classification System

MOTION

"The Board of Regents approves the modified Base and Geographic Differential Schedules for Regular Exempt and Nonexempt Staff as presented, to go into effective on July 14, 2002. This motion is effective June 11, 2002."

E.»Approval of Revisions to Industrial Security Resolution»- Reference 21

The President and selected members of the university administration are routinely designated by the Board of Regents to handle any duties and responsibilities relating to classified information in connection with contracts with the Department of Defense and other federal agencies. These individuals are given an extensive security screening and are the only members of the administration, including the Board of Regents, to have access to classified information. The university has received similar security clearances since the mid-1950s. Execution of the resolution allows regents and other members of the administration to be exempted from security clearance procedures.

The resolution is identical to resolutions previously passed except for a change in names of members of the Board of Regents and executive staff.

The President recommends that:

MOTION

"The Board of Regents approves the Industrial Security Resolution, as revised to reflect the change in membership of the Board of Regents and executive staff, and authorizes the Chair and Secretary of the Board of Regents to sign the resolution. This motion is effective June 13, 2002."

F.»Approval of Standards for Board of Regents' Special Recognition

At the April 15, 2002 meeting of the Board of Regents, the following standards were discussed, modified, and unofficially approved for adoption:

Board of Regents' Special Recognition

Categories of Awards

1. Meritorious Achievement

Awarded to students, faculty, administrators, alumni, or staff for:
a. outstanding academic, athletic, intellectual achievement that brings credit to the university; or
b. unusual and uncompensated improvement in the role or mission of the university.

2. Extraordinary Financial Contribution

Awarded to any person or institution who voluntarily:
a. makes a major financial contribution to the university or University of Alaska Foundation;
b. donates objects of special or unusual value;»
c. enhances the ability of the university to initiate new or greatly expand existing university functions.

Procedures and Requirements

1. Each chancellor may furnish to the president at least annually a list of names of persons meeting the above qualifications.

2. The president shall submit from those names the ones the president deems worthy of recognition by the Board of Regents.

3. After notice to the board, the board may select one or more individuals to receive the Board of Regents' Special Recognition Award.

4. An affirmative vote of at least 8 votes is required for each selection.

5. No more than 12 awards may be made within any calendar year.

6. All names shall be kept confidential until selection and announcement by the Board of Regents.

The President recommends that:

MOTION

"The Board of Regents adopts the standards for the 'Board of Regents' Special Recognition' awards. This motion is effective June 13, 2002."

XI.»New Business and Committee Reports

A. Academic and Student Affairs Committee

B. Facilities, and Land Management Committee

C. Finance and Audit Committee

D. Human Resources Committee

E. Planning and Development Committee

XII.»Alaska Commission on Postsecondary Education Report

A report will be given by members representing the Board of Regents on the Alaska Commission on Postsecondary Education.

XIII.»UA Foundation Report

A report will be given by members representing the Board of Regents on the UA Foundation Board of Trustees. The board will also discuss the public campaign to approve the general obligation bond package and the Speakers Bureau.

XIV.»Future Agenda Topics

XV.»Board of Regents' Comments

XVI.»Executive Session

MOTION

"The Board of Regents goes into executive session at _________ A.D.T in accordance with the provisions of AS 44.62.310 to discuss matters the immediate knowledge of which would have an adverse effect on the finances of the university related to:
- Litigation
- Labor Relations including collective bargaining discussion concerning ongoing and upcoming negotiations
- Land Transactions
- Contract Negotiations
The session will include members of the Board of Regents, President Hamilton, General Counsel Parrish, and such other university staff members as the president may designate and will last approximately _____ hour(s). Thus, the open session of the Board of Regents will resume in this room at approximately _______ A.D.T. This motion is effective June 13, 2002."

(To be announced at conclusion of executive session)

The Board of Regents concluded an executive session at _____ A.D.T. in accordance with AS 44.62.310 discussing matters the immediate knowledge of which would have an adverse effect on the finances of the university. The session included members of the Board of Regents, President Hamilton, General Counsel Parrish, and other university staff members designated by the president and lasted approximately ______ hour(s).

»

XVII. »Adjourn

Agenda»
Board of Regents»
Human Resources Committee»
Tuesday, June 11, 2002; *3:00 p.m. - 6:00 p.m.
Room 109 Butrovich Building, UAF Campus
Fairbanks , Alaska

Committee Members:»
Frances H. Rose, Chair»
Kevin O. Meyers
Brian D. Rogers
Joseph E. Usibelli, Jr.
Chancy Croft, Board Chair

I. »»Call to Order

II. »Adoption of Agenda

MOTION

"The Human Resources Committee adopts the agenda as presented.

I. Call to Order
II. Adoption of Agenda
III. Human Resources Update

A. Human Resources External Review
B. Health Care
C. Classification System

IV. Full Board Consent Agenda

A. Approval of Temporary Transition Salary Grid for Implementation of a Classification System

V. New Business
VI. Executive Session Regarding Labor Relations Issues
VII. Future Agenda Items
VIII. Adjourn

This motion is effective June 11, 2002."

III. »»Human Resources Update

An update on Human Resource issues and projects is scheduled and will include:

A.»Human Resources External Review

A team of three outside human resources experts met extensively with staff, management and human resource professionals across the system to assess services delivered and system improvements needed. A report is pending from this review team. The report will be presented at the September 2002 Board of Regents' meeting.

B.»Health Care

The University of Alaska system now mirrors national trends in health care costs. Costs for both UA2000 and the traditional plans have escalated and/or remained high. Chief cost drivers are: 1) more people covered on the plans due to system growth; 2) higher average number of claims per employee (more consumption); 3) higher average claims cost (inflation in medical costs); and 4) high claims impact. Employee costs related to our plans affect the total compensation package, reducing the net value of salary increases.

This briefing will provide current data on both plans and outline the issues facing the university and its faculty and staff.

C.»Classification System

Work on the Information Systems job group, which represents about 10 percent of all staff positions, is complete. Implementation of the four job families and levels, as well as allocation of positions to these levels, is scheduled for mid-July consistent with the payroll cycle.

There are no special funds allocated to fund this project. MAU's will absorb implementation costs. Given the 4.1% FY03 staff increase allocated in the budget (2.6% for steps plus 1.5% for grid); the system can only accommodate a low-cost implementation. Cost containment for this project can be accomplished with transition steps preceding each salary grade. This adjustment requires board approval.

Staff members have voiced support for the classification study but concern about the transition steps. To respond to those concerns, executive staff have met to review additional structural options designed to mitigate these concerns. Details regarding the structure and this action will be provided in this briefing.

IV.»Full Board Consent Agenda

A.»Approval of Temporary Transition Salary Grid for Implementation of a Classification System

In accordance with Regents' Policy 04.05.040, "the Board of Regents must approve salary structures…or adjustments to the structures." A proposed modification the Base Salary Schedule for Regular Exempt and Nonexempt Staff is inserted in the agenda. This modification establishes a temporary Transition Grid to support a phased implementation of the new classification system. The grid will apply to each occupational group on the effective date of implementation. Transition steps will be added to schedules with geographic differentials consistent with the model for the base schedule.

The President recommends that:

MOTION

"The Human Resources Committee recommends that the Board of Regents approve the modified Base and Geographic Differential Schedules for Regular Exempt and Nonexempt Staff as presented, to go into effective on July 14, 2002. This motion is effective June 11, 2002."

V.»New Business

VI.»Executive Session Regarding Labor Relations Issues

This motion is provided in the event an executive session is needed to discuss audit matters.

MOTION

"The Human Resources Committee of the Board of Regents goes into executive session at _________ A.D.T in accordance with the provisions of AS 44.62.310 to discuss matters the immediate knowledge of which would have an adverse effect on the finances of the university related to audit matters. The session will include members of the Board of Regents, President Hamilton, General Counsel Parrish, Executive Director Jacobs, and such other university staff members as the president may designate and will last approximately _____ hour(s). Thus, the open session of the Human Resources Committee will resume in this room at approximately _______ A.D.T. This motion is effective June 11, 2002."

(To be announced at conclusion of executive session)
The Human Resources Committee of the Board of Regents concluded an executive session at _____ A.D.T. in accordance with AS 44.62.310 discussing matters the immediate knowledge of which would have an adverse effect on the finances of the university. The session included members of the Board of Regents, President Hamilton, General Counsel Parrish, Executive Director Jacobs, and other university staff members designated by the president and lasted approximately ______ hour(s).

VII. »Future Agenda Items

VIII. »»Adjourn

Agenda»
Board of Regents»
Facilities and Land Management Committee»
Thursday, March 7, 2002; *3:00 p.m. - 6:00 p.m.
Sherman Carter Conference Room, Butrovich Building»
University of Alaska Fairbanks Campus
Fairbanks, Alaska

Committee Members:»
Elsa Froehlich Demeksa, Chair»
Michael J. Burns
Joe J. Thomas
Chancy Croft, Board Chair

I. »»Call to Order

II. »»Adoption of Agenda

I. Call to Order
II. Adoption of Agenda
III. Full Board Consent Agenda

A. Approval of the University of Alaska Fairbanks Campus Master Plan
B. Approval of Project and Schematic Design for University of Alaska Fairbanks Arctic Health Research Building Laboratory Revitalization
C. Approval of Project and Schematic Design for University of Alaska Fairbanks West Ridge Utilidor Extension Project»
D. Approval of the FY04 Capital Budget Request Guidelines
E. Authority to Accept Old Fairbanks Courthouse and Fairbanks Parking Structure from the State of Alaska
F. Authority to Approve Economic Development Agency Land Covenant at Fort Yukon
G. Naming of Facilities (Revenue & Marketing)

IV. Ongoing Issues

A. UA Wide Planning Matrix - Regents' Retreat Focus Areas
B. Status Report on University Investments in Capital Facilities, Construction in Progress, and Other Projects

V. New Business

A. Approval of Schematic Design for University of Alaska Fairbanks Arctic Health Fire Sprinklers Project
B. Approval of Project Agreement for University of Alaska Anchorage's Community and Technical College Center

VI. Future Agenda Items

A. FY04 Capital Budget Report Progress
B. Report on IT External Review
C. Consider Policy Addressing IT
D. UA Land Management Strategic Plan
E. TVC Master Planning & CIP Development
F. UAA Master Planning & CIP Development
G. UAS Master Planning & CIP Development
H. Information on the Cost of University Buildings
I. External Review of Facilities

VII. Adjourn

This motion is effective June 11, 2002."

III.»Full Board Consent Agenda

A.»Approval of the University of Alaska Fairbanks Campus Master Plan»- Reference 1

BACKGROUND
The last Master Plan for the UAF Campus was completed in 1991. The plan offered a future vision of the campus without providing any short-term solutions to begin the implementation of the plan. In June 1997, the Board of Regents adopted a policy that requires that each major administrative unit have a campus master plan. That plan is to "identify the existing and preferred campus land uses, buildings, landscape and open space features, and pedestrian and vehicular circulation systems."

In 1998, the chancellor appointed a 15-member UAF Master Planning Committee to lead the master planning efforts for the campus. A consultant team was selected in the fall of 2000; work began on the campus master plan in January 2001.

PROJECT SCOPE
Given the then current direction of Regents' Policy, the consultant team, in concert with the UAF Master Planning Committee, derived a list of goals for the UAF Campus Master Plan. The planning team interviewed representatives from most UAF units to get a sense of the collective vision for the campus. In May 2001, the initial version of the future campus plan was presented for community input. Both the public and campus communities were involved in the process. Surveys, meetings, three open houses and, most uniquely, a community photography project, that collected comments about campus through photos, were utilized.

The community input was incorporated into the draft master plan in the fall of 2001. Input continued to be gathered in meetings with the UA Statewide Administration, the Faculty Senate, the UA Board of Regents, and others. A final open house was held on December 5, 2001.

The Master Planning Committee and distinct individual working groups, within the Master Planning Committee, were intimately involved in both the planning process and the writing of the plan. The individual working groups contributed written sections to the plan, as well as significant edits to the multiple drafts. This high level of involvement in the overall process ensured that the plan reflected the unique characteristics and identity of the UAF campus.

The UAF Campus Master Plan will provide an excellent framework for planning the physical environment of the campus. The Master Planning Committee also fully understands the need for this document to be a "living" document. The Board policy recognizes that "master planning is a continuous process that does not end with the approval of the original plan. Campus master plans will be revised in response to changes in educational objectives, teaching techniques, new technologies, regulatory mandates, and expected funding."

The UAF Campus Master Plan lists 25 actions with specific steps that should be taken to implement this plan. Some steps must begin immediately to ensure that the ongoing growth of the campus meets the guidelines and goals of the Campus Master Plan. Campus plans for signage and landscaping must be drafted to provide specific direction to the continuing growth and change on the campus. A plan must be developed for completion of the Tanana Loop Road if UAF is to realize its goal to improve circulation and parking. Design guidelines for an overall campus design are needed to unify the physical environment of the campus.

CONSULTANT
Wallace Roberts & Todd, LLC, San Francisco, in conjunction with Bezek Durst Seiser, Anchorage, were selected as the planning team consultants utilizing the formal UAF consultant selection process.

SCHEDULE»
Project Approval - December 2000
Presentation to full Board of Regents - November 2001
Board Approval of the UAF Master Plan - June 11, 2002

Follow-on studies of campus space capacity, space standards, and space needs are underway. Master planning efforts are underway for UAF's Tanana Valley College and other community campuses. The committee will be briefed on progress in these areas in the future.

The President recommends that:

MOTION

"The Facilities and Land Management Committee recommends that the Board of Regents approve the UAF Campus Master Plan for the University of Alaska Fairbanks as presented. This motion is effective June 11, 2002."

B.»Approval of Project and Schematic Design for University of Alaska Fairbanks Arctic Health Research Building Laboratory Revitalization - Phase I»- Reference 2

BACKGROUND
Within the "New Business" section of the agenda, the administration is seeking schematic approval for a prerequisite construction project that installs sprinklers in this building. That work must be completed before any revitalization can proceed.

The 111,400 square foot Arctic Health Research Building has been in service since 1967. This project affects 5,700 feet, 860 feet of which is currently unfinished garage space. The building currently houses several research programs (EPSCoR, BRIN, COBRE), the School of Agriculture and Land Resource Management, and the State Virology Labs. The research programs located within the building are being hampered with below standard facilities and are at the same time experiencing exponential growth. To help accommodate the growing programs, UAF has identified several spaces within the building that should be renovated into modern, efficient lab space. The space designated for renewal is currently used for fieldwork staging and laboratory supply storage. In June 2001, the consulting firm of Bezek Durst Seiser, Inc. performed a planning study and produced a cost estimate that was the basis for an FY03 Capital Budget Request. Revitalization of this storage area will provide a modest amount of critical laboratory space and maintain UAF's current research momentum.

PROJECT SCOPE
The scope of this project includes all design and construction work required to remodel an existing 4,840 net square foot laboratory storage area and an 860 net square foot garage. Three new labs will be constructed within the area that will include new fume hoods and new perimeter and island workbenches. All new work areas will be provided with complete lab services including gas, air, vacuum, de-ionized water, 120 volt outlets, and communication ports. In the existing garage, a series of nine environmental chambers used to grow different plant and animal cultures will be placed into a new, fully ventilated room. The project will be designed and constructed to meet all current ADA guidelines by installing an accessible fume hood in one of the labs and new ramp into the rear entry of the building. The cost of this work is approximately $345 per gross square foot.

CONSULTANT
The Anchorage design team of Bezek Durst Seiser, Inc. has been hired to perform design work for this project.

FUNDING
With the approval of Vice President Beedle, the design work for the Arctic Health Research Building Laboratory Revitalization Project proceeded in FY02 to expedite the project completion time. The General Obligation Bond authorized by the legislature includes $2.250 million to complete Phase I. Including campus funds to get to bid-ready documents, the total project cost is $2.387 million.

SCHEDULE
Design Complete - June 14, 2002
Bid Award - November 15, 2002 (pending funding)
Phase I Construction Complete - approximately 8 months later

The President recommends that:

MOTION

"The Facilities and Land Management Committee recommends that the Board of Regents approve the project and schematic design for the Arctic Health Research Building Laboratory Revitalization Phase I Project with a total project cost not to exceed $2,387,000, but that the project not be awarded until the vice president for Finance confirms the availability of funds. This motion is effective June 11, 2002."

C.»Approval of Project and Schematic Design for University of Alaska Fairbanks West Ridge Utilidor Extension Project»- Reference 3

BACKGROUND
A recent accreditation review commended the University of Alaska Fairbanks for its academic programs and strategic planning. The review, however, did cite some deficiencies with regard to the quality, function, and quantity of the biology facilities. To assess these needs, UAF completed a Program/Concept Study for an approximate 155,300 gsf Biological and Computational Sciences Facility to be located on the West Ridge next to the Arctic Health Research Building. The Concept Study pointed out that current laboratory space is not sufficient to meet the teaching and research challenges of the recently funded health care and environmental science initiatives, and that the existing utility systems are at capacity and could not support a building of this size. The recommended solution is to extend the utilidor, including all utilities, from behind the Natural Sciences Facility to a new intertie with the existing West Ridge utilidor in front of the O'Neill Building.

PROJECT SCOPE
The West Ridge Utilidor Extension is routed along the West Ridge to provide all major utilities to the site for the new facility and within easy reach of the West Ridge building sites identified in the UAF Master Plan as well as adding to the capacity/redundancy of existing facilities. A 2,700 linear foot concrete utilidor will be built from the Natural Sciences Facility to the proposed location of the new Biological and Computational Sciences Facility. Along the way, a branch will run to the O'Neill Building and connect to the existing utilidor for critical capacity/redundancy for the entire West Ridge Complex. The new utilidor will provide steam, cooling water, drinking and fire protection water, reverse osmosis water, laboratory air, electrical, data, and phone service.

CONSULTANT
Bezek Durst Seiser, Inc. of Anchorage was selected as the design consultant utilizing the formal consultant selection process.

FUNDING
To expedite the bid-readiness of the project, the Regents authorized in February 2002 the expenditure of $400,000 in Series I Bond proceeds and related third-party receipts. The $6.6 million needed for construction of this project is within the $21.5 million UAF Biological and Computational Sciences Facility General Obligation Bond funding authorized by the legislature. The total project cost is $7.0 million.

SCHEDULE»
Project Approval - February 13, 2002
Schematic Approval - June 13, 2002
Award Construction Contract - November 2002 (pending funding)
Construction Complete - Summer 2004 (pending funding)

The President recommends that:

MOTION

"The Facilities and Land Management Committee recommends that the Board of Regents approve the project and schematic design for the University of Alaska Fairbanks West Ridge Utilidor Extension as presented, and authorizes the university administration to bid and award contracts not to exceed a total project cost of $7.0 million, subject to availability of funds as determined by the vice president for finance. This motion is effective June 11, 2002."

D.»Approval of the FY04 Capital Budget Request Guidelines»- Reference 4

Joe Beedle, vice president for Finance, and Pat Pitney, director of Budget and Institutional Research, will review the FY04 Capital Budget Request Guidelines.

The Facilities and Land Management Committee is asked to approve the FY04 Capital Budget Request Guidelines. A copy of the guidelines is included in Reference 4. There are significant changes from the guidelines used to develop UA's FY03 Capital Budget Request.

The process is designed around the Board's desire for a multi-year approach to capital planning and requests. FY04 serves as a transition to full implementation of a 6-year plan, which will be completed in the FY05 request process.

During the transition year, MAUs are requested to provide detailed abstract, rationale, and justification sections for campus project requests for consideration in FY04, FY05, and FY06. Less detailed information is required for project requests for consideration between FY07 and FY09. After this transition year, the goal is to have detailed capital request/plan information for each fiscal year from FY05-FY10.

Some time will be spent discussing the implications of establishing a specific target amount for the capital request and reasonable estimates of legislative funding. Also implicit in the FY04 Guidelines is the success of the General Obligation bond package, which will be discussed in the acceptance of the FY03 capital budget appropriation.

Starting with the upcoming request process, MAU project requests will be submitted via the web. This will ensure that request information can be augmented for consistency in future years, rather than having to be recreated.

Five project categories are included in the guidelines:

1. Life, Safety, Code, ADA
2. Essential Renewal and Replacement of Instructional and Telecommunications Equipment
3. Renewal and Renovation
4. New Construction
5. Land/Property Acquisition

Included in the request guidelines is a page containing a brief description of the project evaluation criteria.

The President recommends that:

MOTION

"The Facilities and Land Management Committee recommends that the Board of Regents adopt the guidelines for the FY04 Capital Budget Request as presented. This motion is effective June 11, 2002."

E.»Authority to Accept Old Fairbanks Courthouse and Fairbanks Parking Structure from the State of Alaska

BACKGROUND
On June 8, 2001, the Board of Regents directed the administration to continue to investigate the costs and timetables associated with the expansion of TVC's programs and pursue leasing or acquiring the Old Fairbanks Courthouse and Parking Facility, subject to Board review and approval of the terms of the lease or acquisition and renovation costs. Since that time, the university has been investigating TVC's space needs, potential facilities to meet TVC's needs, and estimating costs.

TVC FACILITIES PROGRAM PLAN
UAF hired CB Bettisworth and Co., along with DeJong and Associates, to assess TVC's space needs and prepare a Facilities Program Plan. The consultants met with TVC faculty and staff, Fairbanks North Star Borough and School District personnel, UAF Facilities Services and Space Management personnel, and Fairbanks community members to establish program space and facility needs. The plan established that, separate from space within the Hutchison Career Center (30,000 sf exclusive use space plus 40,000 sf shared use space), TVC will need approximately 41,659 gross square feet (gsf) of space within the next three years, and approximately 34,945 gsf of additional space in 5-10 years, for a total Year 2012 need of approximately 76,604 gsf of non-Hutchison space. TVC currently occupies approximately 36,000 gsf of space in the Chena Building and Old University Park Building. The courthouse is approximately 78,000 gsf.

RENOVATION COST ESTIMATE
UAF hired CB Bettisworth and Company, Inc. to develop a detailed cost estimate for renovating the Old Fairbanks Courthouse to meet TVC's needs. Based upon the assumptions that all facility deficiencies previously identified for the Alaska Court System would be corrected and that the facility would be reconfigured to meet TVC's planned uses, the total project cost is estimated at $13 million if work is funded in FY03.

UAF has value-engineered a $9.5 million capital solution to meet TVC's needs. This amount includes the costs of moving TVC into the courthouse ($1.5 million) and the costs to renovate the facility for TVC's planned use ($8 million). If the university does not receive the capital funding for renovating the facility, TVC could move into the courthouse with minimal remodeling for approximately $1.5 million. Maintenance and operating costs for the courthouse are estimated at approximately $400,000 per year. Campus and TVC operating funds would be used to pay the maintenance and operating expenses.

The General Obligation Bond authorized by the legislature includes $2.0 million to complete move-in and very modest make-ready renovations.

OTHER SPACE OPTIONS/SOLICITATION OF INTEREST
On August 3, 2001, the university received a proposal from a private developer offering to construct a 30,000 square foot addition to the Tanana Valley Campus's existing Chena Building facility.

In March 2002, UAF advertised a Solicitation of Interest (SOI) to ascertain if there were any other options that should be considered. A total of seven letters of interest were received. Three responses expressed an interest in meeting TVC's space needs by renovating existing facilities or constructing new facilities. The four remaining responses were letters of interest requesting to be included in future solicitations. None of the responses included costs, except for one that restated the August 3, 2001 offer. That process demonstrated that there could be other options to meet TVC's needs, but all required substantial capital dollars and/or a commitment of substantial operating fund increases before any progress could be made. The Old Fairbanks Courthouse appears to be the only viable solution given operating and capital budget constraints.

CHENA BUILDING/DOWNTOWN CENTER
TVC currently occupies approximately 22,000 net square feet in the Chena Building at a lease cost of $123K per year plus utilities, operating, and maintenance costs of $154K per year. The Chena Building lease expires in 2011, with options to renew. The university retains the option to purchase the property at a discount to fair market value. The downtown community and city representatives have requested that UAF not mothball the facility. It is preferable that TVC move their entire Chena Building operation into the courthouse. In that event, UAF would use the Chena Building to house other UAF programs until an alternative user can be identified for lease or sale acceptable to the landlord (City of Fairbanks). In the event that funds from the General Obligation Bonds are not available next spring, TVC could continue occupancy of the Chena Building and use space within the courthouse "as-is" to meet their expansion needs only. In that event, the remaining courthouse space could be used in essentially as-is condition to accommodate other UAF programs that have immediate space needs. Some of the UAF programs with space needs that might be met with either core-city space include KUAC, Continuing and Distance Education, Interior Aleutians Campus, and the University Press. Some of the above would require substantial refurbishments prior to occupancy.

OLD FAIRBANKS COURTHOUSE & PARKING STRUCTURE OWNERSHIP STATUS
The Alaska Housing Finance Corporation owns the Old Fairbanks Courthouse. The City of Fairbanks and the State Office Building have some ongoing occupancy interests in and needs for portions of the garage. The Department of Natural Resources owns the Fairbanks Parking Structure. The Department of Transportation wants out of the maintenance responsibilities associated with the property, primarily the Courthouse. The Department of Natural Resources is concerned that transferring the Old Fairbanks Courthouse and/or the parking garage to the university may affect the state/university land selection process. The university administration is working with the Governor's Office, Alaska Housing Finance Corporation, the Department of Natural Resources, and the Department of Administration to resolve these concerns and to develop methods for transferring these facilities to the university.

The President recommends that:

MOTION

"The Facilities and Land Management Committee recommends that the Board of Regents approve the acceptance at no cost, other than transaction costs, the real estate known as the Old Fairbanks Courthouse and the Courthouse Parking Garage and, without limitation, authorize the director for the University of Alaska Land Management Office to execute any and all documents necessary to apply for, acquire, and maintain ownership or other interests in the Old Fairbanks Courthouse and Courthouse Parking Garage. This motion is effective June 11, 2002."

F.»Authority to Approve Economic Development Agency Land Covenant at Fort Yukon»- Reference 5

On December 6, 2001, the Finance, Facilities, and Land Management Committee approved the project and the schematic design for the UAF Yukon Flats Career Training Center Expansion Project at a cost not to exceed $1.56 million. The Yukon Flats Career Training Center project will be funded by a grant from the Economic Development Administration (EDA) for $1,200,000 plus a $360,000 campus match. The only bid received was for $2.3 million.

The project scope has two major elements. The first is the construction of an approximate 2,000 sf addition to the existing facility, including raising the existing building four feet to match the floor elevation of the addition. The second element is to provide housing for ten students.

Because the university initiated the grant, it cannot reduce the scope of the project without providing additional assurances to the EDA. If the university executes a Land Covenant (Reference 5), the EDA will release the grant funds to the university to complete as much of the original project scope as possible.

The proposed Land Covenant provides that, with minor exceptions, the university will not change the use, sell, lease, mortgage or allow liens to be placed upon the property without EDA's prior written consent. Even with consent, EDA may require that the university reimburse the EDA for its fair share of such proceeds as stated in federal regulations. The Land Covenant will be in effect for fifteen (15) years. The University of Alaska Fairbanks plans to continue use of this property for its current educational purposes into the foreseeable future. As such, the proposed Land Covenant would not cause any negative impacts for the university. The University of Alaska Facilities Inventory provides an adjusted value of $1.18 million for the existing Fort Yukon improvements, so a worst-case scenario would be that the federal agency would be entitled to receive approximately one-half of any proceeds from any sale, lease, or mortgage.

Regents' Policy 05.11.05 requires that the Board shall approve real property transactions that require the subordination of the university's interest in real property.

The President recommends that:

MOTION

"The Facilities and Land Management Committee recommends that the Board of Regents acknowledge the restrictions imposed by the proposed EDA Land Covenant and authorize the director for the University of Alaska Land Management Office to execute the Land Covenant as set forth in Reference 5 or as it may be modified at the discretion of the director. This motion is effective June 11, 2002."

G.»Naming of Facilities (Revenue & Marketing)»- Reference 6

BACKGROUND
The University of Alaska Anchorage Athletic Department is a vibrant part of the Alaskan community. UAA Athletics provides one of the school's strongest links to the community, offering nine (9) varsity sports consisting of Men and Women's Basketball, Women's Gymnastics, Men's Hockey, Men and Women's Cross Country Run, Men and Women's Alpine Ski, Men and Women's Nordic Ski and Women's Volleyball. Hockey competes at the Division I level as a member of the Western Collegiate Hockey Association (WCHA) and all other sports compete at the NCAA Division II level. Plans are in place to move Women's Gymnastics to the Division I level for the 2003 season.

In addition to the sports programs, the Athletic Department organizes and manages major sporting events including the Mayor's Midnight Sun Marathon, the Carrs/Safeway Great Alaska Shootout, and the Nye Frontier Hockey Classic. UAA also provides facilities for more than 70 community events each year.

Approximately 150 students are served directly by UAA's varsity sports. Recreational and intramural programs involve the entire campus community both directly and indirectly.

Without the current level of sponsorship revenues, approximately $965,000 per year, UAA would simply be unable to fund these athletic programs. Due to the limited nature of funding, it is imperative that UAA pursue sponsorship dollars through all feasible means.

Sponsorships involving the naming of a sports facility on college campuses are not a new concept. A partial list of building naming sponsorships currently in force is listed below, a more complete list can be found in Reference 6:

1. Bank of America Arena - University of Washington
2. Continental Airlines Arena - Seton Hall University
3. Coors Event Center - University of Colorado
4. Firestone Field House - Pepperdine University
5. Marriott Center - Brigham Young University
6. MCI Center - Georgetown University
7. Midwest Wireless Center - Minnesota State»
University - Mankato
8. Pepsi Arena - Siena College
9. Pepsi Softball Stadium - Furman University
10. SaveMart Center - Cal State University at Fresno
11. Value City Arena - Ohio State University
12. Wells Fargo Arena - Arizona State University
13. Cox Arena - San Diego State

In November 2001, UAA issued a request for solicitation to select a naming rights consultant/agent for the UAA Sports Center. The intent was to select a firm with relevant experience in generating building sponsorship revenues for benefit of the athletic departments of universities. The objective is to improve the level of funding for athletics while enhancing overall institutional values and strengthening its ties to the community. UAA believes pursuing this avenue is consistent with its current marketing/branding concept, the UAA 2005 Goals, and UAA's Mission.

The Athletic Department, the Nerland Agency and UAA administration worked together to develop a suitable prospect list to minimize the potential that this new program would conflict with current plans and to ensure that our sponsors have equal access to the opportunity should they desire.

The Nerland Agency has created a strategy that assures this agenda will bring in new dollars and not replace funds from current partner sponsorships.

Highlights of Strategy

To secure a sponsoring firm aligned with institutional values, and to maximize the value of a title sponsorship for the UAA Sports Center facility.
» Evaluate and select potential sponsors. Companies that are based in Alaska or who have a significant presence in Alaska are given priority. Avoid "trade-off" situations by not seeking sponsors whose presence would cause a current Seawolf corporate sponsor to consider withdrawing.
» Develop customized, high impact presentations (Reference 6). Presentations will be individualized for each potential sponsor, and issues relevant to the sponsor's business and market environment will be addressed in our presentations. Signage is the most visible element; a mock photo composite will be shown (Reference 6) that identifies the potential sponsor's logo on the building, marquee, internal signage, etc. To quantify the impact of this sponsorship, an exposure analysis is also developed.
» Coordinate implementation for maximum impact. The addition of building signage and other graphics will be carefully coordinated with the announcement of the sponsorship. Additionally, a communications plan to ensure that the sponsor's name is appropriately used.
» Lay the foundation for sponsorship of a new on-campus athletic facility.»
» Screen firms to ensure a demonstrated commitment to the university and organizational values aligned with the institution.

Proposed Outcomes

UAA would make 100 percent of the sponsorship funds available to its Athletic Department. The additional funds may be used by the Athletic Department to enhance scholarships and per diem for team travel where UAA lags behind most opponents, and help with start-up costs for a new sport required by NCAA regulations.

Any agreement and its signatory will be approved in accord with Regents' Policy.

Naming and Use of Campus Facilities

Current Board of Regents' Policy 05.12.07 does not specifically address a temporary naming of a facility aligned with corporate sponsorship. The proposal for sponsorship is common practice for university sports facilities but would not be adopted or used for other UAA buildings. UAA proposes that it continue with the Nerland Agency strategy, enter into negotiations with prospective sponsors, and seek President Hamilton's approval prior to executing a corporate sponsorship agreement for the building naming rights.

The President recommends that:

MOTION

"The Facilities and Land Management Committee recommends that the Board of Regents authorize the UAA administration to continue with the Nerland Agency Strategy and proceed with negotiations for a building naming sponsor for the UAA Sports Complex. President Hamilton or designee shall approve any final proposal prior to any corporate sponsorship agreement being executed. This motion is effective June 11, 2002."

IV.»Ongoing Issues

A.»UA Wide Planning Matrix - Regents' Retreat Focus Areas

Vice President Beedle will review with the committee the "hexagon of needs" focus issues developed during the regents' retreat and request input for modification and future approval.

This is an information item only; no action is required.

B.»Status Report on University Investments in Capital Facilities, Construction in Progress, and Other Projects- Reference 7

Campus officials will discuss the status of various construction projects.

This is an information item only; no action is required.

V.»New Business

A.»Approval of Schematic Design for University of Alaska Fairbanks Arctic Health Fire Sprinklers Project»- Reference 8

BACKGROUND
The 111,400 gross square foot Arctic Health Research Building has been in service since 1967 and currently houses several research programs (EPSCoR, BRIN), the School of Agriculture and Land Resource Management, and the State Virology Labs. The research programs located within the building are experiencing exponential growth and are quickly running out of space to perform vital experiments. To help accommodate the growing programs, UAF has identified several spaces within the building that should be renovated into modern, efficient lab space. However, before any revitalization can begin, the university fire marshal is requiring that a fire suppression system be installed in the affected areas due to numerous uncorrected code citations within the building. Sprinklers are the most cost-effective solution.

On February 13, 2002, the Finance and Audit and the Facilities and Land Management Committees approved the two-phased project for providing sprinklers throughout the building in the amount of $1,500,000, approximately $13 per square foot. You may recall that only $778,000 is available and that, for that amount, UAF is completing the schematic for sprinklers in the entire building and installing them in approximately one-half the building, in the highest priority areas as shown Reference 8. So long as the balance of the funding is secured by May 2003, both phases remain on track at $1.5 million.

PROJECT SCOPE
The scope of this project includes all design and construction work required to provide sprinklers in the Arctic Health Building. The work will be broken into two phases.

Phase I project scope includes:
» installation of a new NFPA compliant sprinkler system throughout the first floor and portions of the basement within the Arctic Health Research Building (approximately 55,000 net square feet);
» installation of electronic valves that will activate a fire alarm within the building if water begins to flow in the sprinkler system; and
» removal of asbestos in areas affected by the new pipe installation.

Phase II project scope includes:
» installation of a new NFPA compliant sprinkler system throughout the second floor, portions of the basement, and the entire State Virology Lab area within the Arctic Health Research Building (approximately 44,000 net square feet);
» installation of electronic valves that will activate a fire alarm within the building if water begins to flow in the sprinkler system; and
» removal of asbestos in areas affected by the new pipe installation.

CONSULTANT
The Fairbanks design team of USKH, Inc. has been hired to perform design work for this project.

FUNDING
$778,000 Phase I is funded with capital funds from previous appropriations for deferred maintenance and the Regents' approved expenditure plan for Series I Bond Proceeds and related third-party reimbursements.

SCHEDULE
Project Approval - February 13, 2002
Design Complete - May 17, 2002
Bid Award - June 21, 2002
Phase I Construction Complete - November 30, 2002
Other Phases Bid and Construction - dependent upon funding

The President recommends that:

MOTION

"The Facilities and Land Management Committee approves the Schematic Design for the Arctic Health Fire Sprinkler Project with a total project cost not to exceed $1,500,000. Phase I will proceed through construction. Subsequent work will proceed when the vice president for finance determines that adequate funds exist. This motion is effective June 11, 2002."

B.»Approval of Project Agreement for UAA's Community and Technical College Center»- Reference 9

At its March 8, 2002 meeting, the Board of Regents approved the purchase of approximately 90,000 sf of the University Center Mall and adjacent property in Anchorage, Alaska, subject to legislative appropriation for acquisition and essential improvements, approval of the purchase agreement by general counsel and the vice president for finance, and approval of the Project Agreement and detailed cost breakdown by the Facilities & Land Management Committee.

The campus has completed its program use/assessment and will present details to the committee. The working copy of the Project Agreement for the University Center is also shown in Reference 9, defining the limits of the project scope and budget. More detailed information will be reviewed with the committee.

Approval of the motion will allow the administration to execute a purchase contract and the turnkey refurbishments to proceed by the owner. The administration has prepared the requisite bond resolution for review by the Finance and Audit Committee and approval by the Board of Regents.

The President recommends that:

MOTION

"The Facilities and Land Management Committee approves the Project Agreement and detailed cost breakdown for the UAA Community and Technical College Center as presented, and authorizes the vice president for finance and the chair of the Facilities and Land Management Committee to approve any modifications thereto, and authorizes the university administration to execute a purchase agreement not to exceed $14.0 million, subject to availability of funds as determined by the vice president for finance. This motion is effective June 11, 2002."

VI.»Future Agenda Items

A. FY04 Capital Budget Report Progress
B. Report on IT External Review
C. Consider Policy Addressing IT
D. UA Land Management Strategic Plan
E. TVC Master Planning & CIP Development
F. UAA Master Planning & CIP Development
G. UAS Master Planning & CIP Development
H. Information on the Cost of University Buildings
I. External Review of Facilities

VII. »Adjourn

AGENDA
Joint Meeting
between
State Board of Education & Early Development
and
University of Alaska Board of Regents
Wednesday, June 12, 2002; 8:00 a.m. - 1:00 p.m.
Regents' Conference Room 109 Butrovich Building
University of Alaska Fairbanks Campus
Fairbanks, Alaska

8:00 AM - Joint Meeting with University of Alaska Board of Regents
The State Board of Education & Early Development and the University of Alaska Board of Regents work together on issues concerning preparing students for secondary education, and teacher preparation for Alaska's schools.

8:00 AM - 20/20 Overview
Eric Wohlforth, chair of the Board of Directors of the Alaska Humanities Forum, and Skye Rubadeau with Alaska 20/20, will provide an overview of the 20/20 process and what progress has been made/challenges uncovered since the initial 20/20 meeting in Anchorage in 2001, as the group moves toward culmination in 2003.

8:30 AM - 20/20 and EED Template Discussion
EED has developed a response and recommendations document framed by the 20/20 meeting, Tolerance Commission meeting, Native Education Summit, and its meeting with Native leaders. 20/20 provides a framework for the presentation of this paper and next steps for leadership groups involved in education.

9:30 AM - Teacher Retention Study
Dr. Bill McDiarmid will present the final results of this important study and the boards will discuss their respective and joint roles in improving the retention rate of teachers in Alaska.

10:30 AM Status Discussion
Status of items of importance to both boards, including:
--NCATE
--Math and Reading Endorsements
--New Bachelors in Early Childhood Education
--Special Education Endorsements and Delivery
--Associate of Arts degrees for Teacher Aides
--GO Bond Speakers Bureau
--SB 86

11:30 AM - Next Steps to be taken jointly

12:30 PM - Lunch

Agenda»
Board of Regents»
Academic and Student Affairs Committee»
Wednesday, June 12, 2002; *1:00 p.m. - 5:00 p.m.
Room 109 Butrovich Building
University of Alaska Fairbanks Campus
Fairbanks, Alaska

Committee Members:»
Frances H. Rose
Joe J. Thomas
Chancy Croft, Board Chair

I. »»Call to Order

II. »»Adoption of Agenda

MOTION

"The Academic and Student Affairs Committee adopts the agenda as presented.

I. Call to Order
II. Adoption of Agenda
III. Full Board Consent Agenda

A. Approval of Academic Degree Programs at University of Alaska Anchorage

1. Certificate in Pharmacy Technology
2. Associate of Applied Science in Radiologic Technology
3. Bachelor of Arts in Early Childhood Education
4. Master of Public Health in Public Health Practice

B. Approval of Addition and Deletion of Academic Programs at the University of Alaska Fairbanks

1. Deletion of Master of Arts, Elementary Education
2. Deletion of Bachelor of Education
3. Addition of Certificate in Health Care Reimbursement
4. Addition of Master of Software Engineering

C. Approval of University of Alaska Fairbanks Policies on the Appointment and Evaluation of Faculty
D. Approval of Re-establishment of School of Education at the University of Alaska Anchorage

IV. Ongoing Issues

A. Update on the External Review of UA Academic Administration
B. Update on E-Student Services: Web-based Financial Aid
C. Update on Systemwide Transcript and Degree Verification Service
D. Update on Accreditation Activities
E. Update on Rasmuson Endowed Chair in Economics at the University of Alaska Anchorage
F. Discussion on the North Pacific Fisheries Computer Model
G. Discussion on Distinguished and University Professors

V. New Business
VI. Future Agenda Items
VII. Adjourn

This motion is effective June 12, 2002."

III.»Full Board Consent Agenda

A.»Approval of Academic Degree Programs at the University of Alaska Anchorage»- Reference 10

Reference 10 contains the program summaries for each of the following degree program proposals. The provosts will be available to answer any questions.

1. Certificate in Pharmacy Technology
2. Associate of Applied Science in Radiologic Technology
3. Bachelor of Arts in Early Childhood Education
4. Master of Public Health in Public Health Practice

The President recommends that:

MOTION

"The Academic and Student Affairs Committee recommends that the Board of Regents approve the following academic degree programs at the University of Alaska Anchorage:

1. Certificate in Pharmacy Technology
2. Associate of Applied Science in Radiologic Technology
3. Bachelor of Arts in Early Childhood Education
4. Master of Public Health in Public Health Practice

This motion is effective June 12, 2002."

B.»Approval of Addition and Deletion of Academic Programs at the University of Alaska Fairbanks»- Reference 11

Reference 11 contains the program summaries for the new degree program proposals. A representative from the UAF Provost Office will be available to answer any questions regarding the new programs and the programs proposed for deletion.

1. Deletion of Master of Arts, Elementary Education
2. Deletion of Bachelor of Education
3. Addition of Certificate in Health Care Reimbursement
4. Addition of Master of Software Engineering

The President recommends that:

MOTION

"The Academic and Student Affairs Committee recommends that the Board of Regents delete the following academic degree programs at the University of Alaska Fairbanks:

1. Deletion of Master of Arts, Elementary Education
2. Deletion of Bachelor of Education

The Academic and Student Affairs Committee further recommends that the Board of Regents approve the following academic degree programs at the University of Alaska Fairbanks:

1. Addition of Certificate in Health Care Reimbursement
2. Addition of Master of Software Engineering

This motion is effective June 12, 2002."

C.»Approval of University of Alaska Fairbanks Policies on the Appointment and Evaluation of Faculty»- Reference 12

These policies had not been revised since 1997 and were in need of revision to reflect current procedures and collective bargaining agreement language. A representative from the UAF Provost Office will be available to answer questions from committee members.

The President recommends that:

MOTION

"The Academic and Student Affairs Committee recommends that the Board of Regents approve the revisions made to the University of Alaska Fairbanks Policies on Faculty Appointment and Evaluation as presented. This motion is effective June 12, 2002."

D.»Approval of Re-establishment of School of Education at the University of Alaska Anchorage

Provost Chapman will provide information regarding the decision to re-establish the School of Education at the University of Alaska Anchorage. Regents' Policy provides that the Board of Regents approves the establishment and elimination of schools and colleges at the University of Alaska.

The President recommends that:

MOTION

"The Academic and Student Affairs Committee recommends that the Board of Regents re-establish the School of Education at the University of Alaska Anchorage. This motion is effective June 12, 2002."

IV.»Ongoing Issues

A.»Update on the External Review of UA Academic Administration

Dr. Terrence MacTaggart, chair of the external review committee, will present the review committee's report and respond to questions from the Academic and Student Affairs Committee.

B.»Update on E-Student Services: Web-based Financial Aid

Mike Sfraga, Director, Program Development, and Saichi Oba, Manager, UA Banner Student Implementation, will provide an update on the University's online financial aid services. Students can now view financial aid awards, check eligibility, and access information regarding their UA accounts via the web. This service is the latest in a continued strategy to enhance UA's overall online student services that include web-based registration, unofficial transcripts, student fees/charges, payment gateway, semester grades, and a UA-wide distance education gateway.

C.»Update on Systemwide Transcript and Degree Verification Service

Mike Sfraga, Director, Program Development, and Ann Tremarello, UAF University Registrar Emerita, will provide an update on the UA Transcript Express project. Transcript Express provides students and alumni 24-hour official transcript request services in a responsive and cost-effective manor. Director Sfraga and Registrar Tremarello will also provide an overview of a joint UA - National Student Clearinghouse degree verification project.

D.»Update on Accreditation Activities

The provosts will update members of the committee regarding institutional and programmatic accreditation activities at their campuses.

E.»Update on Rasmuson Endowed Chair in Economics at the University of Alaska Anchorage

Provost Chapman will update the committee on the status of the Rasmuson Endowed Chair in Economics.

F.»Discussion on the North Pacific Fisheries Computer Model

Craig Dorman, vice president for Research, will lead a discussion regarding the North Pacific Fisheries Computer Model.

G.»Discussion on Distinguished and University Professors

Regents' Policy 04.04.04.e.1 states:

Distinguished and University Professors. Tenured appointment as Distinguished Teaching Professor, Distinguished Research Professor, Distinguished Service Professor or University Professor may be given by action of the Board of Regents on recommendation of the faculty and concurrence of the chancellor and the president.

Committee members will discuss timelines and criteria for making such appointments.

V. »New Business

VI.»»Future Agenda Items

VIII. »»Adjourn

Agenda
Board of Regents
Finance and Audit Committee
Wednesday, June 12, 2002; *1:00 p.m. - 5:00 p.m.
Sherman Carter Conference Room, Butrovich Building
University of Alaska Fairbanks Campus
Fairbanks, Alaska

Committee Members:
Joseph E. Usibelli, Jr., Chair»
Michael J. Burns
Elsa Froehlich Demeksa
Kevin O. Meyers
Brian D. Rogers
Chancy Croft, Board Chair

I.»Call to Order

II.»Adoption of Agenda

I. Call to Order
II. Adoption of Agenda
III. Full Board Consent Agenda

A. Approval of FY2003 Student Government Budgets
B. Acceptance of the FY03 Capital Budget Appropriations
C. Acceptance of the FY03 Operating Budget Appropriations and Approval of the FY03 Operating Budget Distribution Plan
D. Approval of FY04 Operating Budget Request Guidelines
E. Authorization of General Revenue Bond Sale
F. Authorization for Interim Funding for Capital Projects
G. Approval of Revised June 19, 1998 Plan for Use of Stampede Mine Proceeds

IV. Ongoing Issues

A. Status Report on State Funded Capital Appropriations
B. Review of Recently Completed Audits
C. Audit Status Report
D. Report on Title IX Compliance

V. New Business

A. Approval of the FY2003 Annual Audit Plan

VI. Executive Session

VII. Future Agenda Items

A. ASTF 2002 Funding Shortfall
B. UA Wide Planning Matrix-Regents' Retreat Focus Areas
C. Status Report on Bond Financing
D. Student Tuition and Fees
E. FY04 Budget Progress Report

VIII. Adjourn

This motion is effective June 12, 2002."

III.»Full Board Consent Agenda

A.»Approval of FY2003 Student Government Budgets»- Reference 13

Regents' Policy 09.07.05 requires student government organizations to submit annual budgets, including the amount of any mandatory student government fees, to the Board of Regents for approval. The student government activity fees proposed at all campuses are the same as the prior year.

As of this writing, not all student government budgets are ready for presentation to the Board. Because the Board of Regents is not scheduled to meet again until September 2002, the administration recommends that the vice president for finance be authorized to modify and approve the FY2003 student government budgets and related fees. Pat Pitney, director of Budget and Institutional Research, will be available to answer questions regarding the student government budgets.

Management would also entertain consideration to change the policy to eliminate Board of Regents' required approval and establish such authority with the student coalition and the vice president for finance.

The President recommends that:

MOTION

"The Finance and Audit Committee recommends that the Board of Regents approve student government fees and budgets as presented in Reference 13, and authorize the vice president for finance to review, modify, and approve fees and budgets for those student governments not included in Reference 13, and to approve requests for increased expenditure authority for all student government organizations. This motion is effective June 12, 2002."

B.»Acceptance of the FY03 Capital Budget Appropriations»- Reference 14

Vice President Beedle and Director Pitney will present a summary of the FY03 capital budget appropriations and a proposed distribution plan. The university's FY03 capital request included $221.8 million in general funds and $50.2 million in non-general fund authority. The Alaska Legislature appropriated $2.9 million in general funds and $17.2 million in non-general fund authority to university projects in the regular capital budget.

There were three pieces of legislation dealing with capital requests:

1. The legislature appropriated $2.9 million in general funds and $17.2 million in non-general fund authority to university projects in the regular capital budget.

2. The legislature included $19.4 million in projects for the university in legislation that provides for possible reimbursement of debt used in financing the University Center (UAA) and the Joint-Use Facility (UAS) projects. Approval of the actual reimbursement of debt is contingent on approval of subsequent legislatures.

3. The legislature also included $61.7 million for UA projects in a $236.8 million general obligation bond package for education and museum facilities. Authorization of the bond is contingent on majority approval of voters in the November 2002 general election.

Reference 14 includes an overview of approved projects by source bill and a comparison of the Board of Regents' request to the three pieces of legislation. At the time of this writing, Governor Knowles has not signed these bills into law.

The President recommends that:

MOTION

"The Finance and Audit Committee recommends that the Board of Regents accept the FY03 Capital Budget Appropriation as presented. This motion is effective June 12, 2002."

C.»Acceptance of the FY03 Operating Budget Appropriations and Approval of the FY03 Operating Budget Distribution Plan»- Reference 15

President Hamilton, Vice President Beedle, and Director Pitney will be available to discuss the legislative appropriations and the proposed distribution plan. The FY03 budget plan to be presented will contain an overview of the current budget distribution and the FY03 distribution plan. A summary of the FY03 budget appropriation approved by the Alaska Legislature with a summary of changes from the FY02 operating budget and the Board's FY03 budget request is included in Reference 15.

The Board of Regents' FY03 operating budget request included a $17 million general fund increment and a non-general fund receipt authority increment of $50.6 million. The legislature appropriated a net increase of $8 million in state funding sources and the full non-general fund receipt authority of $50.6 million. The net funding increase of $8 million includes a net $5.7 million in general fund (including the replacement of ASTF and ACPE funding with general fund) and $2.3 million in funding from the Alaska Science and Technology Foundation endowment corpus.

The administration will present a proposed distribution plan for the general fund appropriation. At the time of this writing, Governor Knowles has not signed the state operating budget legislation. The proposed distribution plan is being developed and will be hand-delivered at the meeting. The operating distribution plan options being considered are consistent with the following priority:

To support Alaska's economic development and diversification for the state of Alaska by:
» Maintaining base level programs and services.
» Provide appropriate direction for campuses to:
1. Recruit and retain more Alaskan students through comprehensive enrollment planning.
2. Build enrollment in programs critical for state workforce demand and economic progress.
3. Build and refine programs in campus areas of excellence specified by BOR priorities.
4. Maximize efficient and quality academic programs and administrative service delivery.
» Maintaining highest accountability standards.

The President recommends that:

MOTION #1

"The Finance and Audit Committee recommends that the Board of Regents accept the FY03 Operating Budget Appropriations as presented. This motion is effective June 12, 2002."

MOTION #2

"The Finance and Audit Committee recommends that the Board of Regents approve the FY03 Operating Budget Distribution Plan as presented. This motion is effective June 12, 2002."

D.»Approval of the FY04 Operating Budget Request Guidelines»- Reference 16

President Hamilton and Pat Pitney, director of Budget and Institutional Research, will lead the Finance and Audit Committee in a discussion of the university's FY04 Operating Budget Request Guidelines. The proposed operating budget guidelines will be distributed at the meeting. The operating guidelines have been revised based on Board of Regents input in March and in consultation with the SAC and the Chancellors.

Reference 16 includes President Hamilton's tuition adjustment notice of April 15, 2002. The discussion will include the budget development process and the role of the Finance and Audit Committee in the request process including important dates.

The committee is asked to recommend approval of the operating budget request guidelines.

The President recommends that:

MOTION

"The Finance and Audit Committee recommends that the Board of Regents approve the FY04 Operating Budget Request Guidelines as presented. This motion is effective June 12, 2002."

E.»Authorization of General Revenue Bond Sale»Reference Bound Separately

Preliminary draft materials are provided in the separately bound reference. A separate later mailing is expected to provide updated reference materials. The updated reference will contain an index to the materials.

Vice President Beedle and Assistant Vice President Dickinson will discuss:

1. How bond issues have been traditionally structured and options that better position the university for future debt issues;

2. Uncertainties relating to future reimbursements by the legislature under HB528 and a debt structure whereby the university can minimize the impact of anything less than 100 percent reimbursement; and

3. Ways which the university might jump-start projects slated for fall vote as part of the General Obligation Bonds.

After this presentation and a period for questions, the administration will discuss each of the several action items necessary to authorize the bond sale.

The administration is seeking authorization from the Board of Regents to sell general revenue bonds for several capital projects. As with all bond sales, the administration and Financial Advisor Dan Kaplan, will review the potential present value savings to be had through refunding (refinancing) existing debt. Preliminary refunding savings are identified in the reference. Total debt issue being proposed is $34.5 million, approximately $32.0 million of that for new projects, and approximately $2.5 million in refunding bonds. Please note that all these amounts are slightly higher than the current market figures reflected in the reference. The requested authorization is for higher amounts to ensure that the bonds can be sold in the event that the market moves higher between now and the anticipated mid-July sale date.

As discussed during previous briefings regarding debt capacity, FY02 debt service is $7.0 million. This drops to $6.4 million annually in FY03 through FY08, with a sharp drop to $4.4 million in FY09 and for several years thereafter. The proposed new money issue for "UAF's West Ridge Research Building and Related Science Facilities" is being structured to wrap around that sharp drop. The effect of this approach versus level debt service is shown in the reference. While the maturity for the new debt does not exceed 75 percent of the useful life of any of the new facilities, for the UAF project only, we are asking for a one-time waiver of Regents' Policy 05.04.02.D. "Each debt issue, or homogeneous group of debt issues, shall have a level or declining debt service schedule." Other projects will have level debt service.»

Several related time-sensitive projects are either unfunded, subject to future legislative action to pay related debt service, or within the General Obligation Bond not due for a vote until Fall 2002. All amounts are shown in dollars to be deposited into the acquisition or construction fund:

UAA Community and Technical College Center - $14,000,000»note 1
Juneau Readiness Center/UAS Joint Facility (Juneau) - $5,470,000»note 1
UAF West Ridge Research Building and Related Science Facilities - $8,000,000»
Total U of A Bond Plan (into construction fund) - $27,470,000
(resulting in a new money bond sale of $33.0 million)

UAF West Ridge Research Building - $2,000,000»note 2
UAA Ecosystems and Biomedical Health Facility - $4,850,000»note 2
UAA Community and Technical College Center - Phase 2
(In lieu of renting adjacent space in unfinished condition) - $4,000,000
Related Time Sensitive Projects - $38,320,000

Note 1: Subject to future legislative funding of annual debt service
Note 2: Subject to affirmative popular vote regarding state GO Bonds

To put the proposed UA Bond Plan in perspective, a full discussion of the financial impacts of debt service and costs of operations is shown in the reference.

Please note that the Fairbanks project is described as "UAF's West Ridge Research Building and Related Science Facilities." This will provide spending flexibility in the event that both the $2.0 million in federal funding and the $2.0 million General Obligation Bond are successful.

The board is being asked to approve "projects" because the names provided under HB528 are slightly different than the project names approved in previous action by the board. A description of each project is found in the Preliminary Official Statement.

To provide an additional cushion in the event of the legislature's failure to appropriate the anticipated annual debt service due for FY04, the bonds are being structured with capitalized interest through January 1, 2004 for the UAA project and October 1, 2004 for the UAS project. This requires a slightly larger bond issue, but significantly reduces the risk of financial hardship.

Assuming that the Finance and Audit Committee recommends that the Board of Regents approve the proposed bond sale, the next agenda item will address possible interim funding for other capital projects.

The appropriate resolutions for the Board of Regents, Supplemental Indenture, and Notice of Sale have been prepared by bond counsel (Wohlforth, Vassar, Johnson & Brecht) and are presented in the reference, as is the Preliminary Official Statement prepared by the administration. The reference also contains tables showing "Estimated Debt Service" and "Sources and Uses of Bond Proceeds."

Vice President for Finance Joe Beedle and Assistant Vice President John Dickinson will be available to discuss the bond resolution and answer any questions presented by the Finance and Audit Committee.

The President recommends that:

MOTION #1

"The Finance and Audit Committee recommends that the Board of Regents approve the 'University of Alaska Anchorage Community and Technical College Center Project' at a total project cost not to exceed $14.0 million, $14.0 million of which shall be funded with university general revenue bond proceeds. This motion is effective June 12, 2002."

MOTION #2

"The Finance and Audit Committee recommends that the Board of Regents approve the 'Juneau Readiness Center/UAS Joint Facility (Juneau) Project' at a total project cost not to exceed $15.388 million, $5.470 million of which shall be funded with university general revenue bond proceeds. This motion is effective June 12, 2002."

MOTION #3

"The Finance and Audit Committee recommends that the Board of Regents approve the 'UAF West Ridge Research Building and Related Science Facilities Project' at a total project cost not to exceed $10.0 million, $8.0 million of which shall be funded with university general revenue bond proceeds. This motion is effective June 12, 2002."

MOTION #4

"The Finance and Audit Committee recommends that the Board of Regents adopt the bond resolution for University of Alaska General Revenue Bond Series K as presented. This motion is effective June 12, 2002."

F.»Authorization for Interim Funding for Capital Projects»- Reference 17

As discussed during an earlier agenda item, $61.7 million in University of Alaska capital projects are within the General Obligation Bond package that the legislature has authorized to be put to a popular vote.

The IRS allows bond proceeds to be used to reimburse expenditures made prior to the bond sale so long as the issuing agency makes a Declaration of Intent to Issue Reimbursement Bonds no later than 60 days after the expenditure. It is standard practice for the university to make such declarations once the Regents indicated likelihood that bonds might be used for funding purposes. However, only the issuing agency, i.e., the State Bond Committee of the State of Alaska, can make such a declaration for the $61.7 million. Deven Mitchell, chief staff person for the State Bond Committee, has expressed a willingness to arrange for such a declaration for the benefit of the university.

The administration has arranged for flexile increments of market rate tax-exempt interim financing with no payments due until July 15, 2003, backed by the full faith and credit of the university. Such financing would only be utilized for constructing the highest priority projects and further design work on those that would benefit from additional work in order to position them to save a construction season. It is proposed that President Hamilton be granted authority to determine which projects would utilize the interim financing and in what amounts, and that he keep the board informed via the Friday Fax.

The President recommends that:

MOTION #1

"The Finance and Audit Committee recommends that the Board of Regents direct the administration to request the State Bond Committee of the State of Alaska to make a Declaration of Intent to Issue Reimbursement Bonds for all University of Alaska projects within HB528 that President Hamilton may elect to identify. This motion is effective June 12, 2002."

MOTION #2

"The Finance and Audit Committee recommends that the Board of Regents:

1. authorize and direct the administration to negotiate with Wells Fargo Bank, or other bank selected at the discretion of the vice president for finance;

2. arrange interim financing for the UAA Ecosystems and Biomedical Health Facility in the amount of $4.85 million and such other projects in such other amounts as President Hamilton may approve as warranting interim funding in order to maintain programmatic momentum or advanced construction schedules;

3. authorize the vice president for finance or designee to execute any and all documents required by Wells Fargo Bank or other bank in order to secure such interim financing(s), and

4. authorize the officers of the Board of Regents to execute and attest to any and all resolutions approved by the General Counsel that may be required by Wells Fargo Bank or other bank as if such resolutions were before the Board of Regents for its consideration on June 12 through June 13, 2002.

This motion is effective June 12, 2002."

G.»Approval of Revised June 19, 1998 Plan for Use of Stampede Mine Proceeds»- Reference 18

In February 1998, the Board of Regents approved the sale of the university's interest in the Stampede Mine site to the National Park Service at a selling price of $300,000. Consistent with federal legislation authorizing the sale, the Board determined that proceeds from the sale would be held for the benefit of the UAF School of Mineral Engineering (SME) and expended in accordance with a plan to be approved by the Board.

The plan called for half the receipts, $150,000, to be put in the Foundation for stipends to be issued in the summertime for students to go to the mining site, including payment of transportation and food costs. The other half would be expended to fix up existing facilities at Golden Zone, to do a reconstruction of sorts for $150,000 under a long-term lease-to use the Golden Zone property instead of the Stampede site for teaching in the School of Mineral Engineering.

Unfortunately, negotiations to lease the Golden Zone mine proved unsuccessful. Management now requests that all proceeds from the sale of the Stampede Mine be deposited into the Foundation to benefit the originally targeted programs and provide the flexibility needed to cope with changing conditions.

The President recommends that:

MOTION

"The Finance and Audit Committee recommends that the Board of Regents authorize the administration to deposit all proceeds from the sale of the Stampede Mine to an endowment for the benefit of the Geological Engineering and Mining Engineering programs. The earnings of the endowment shall be expended as described in proposals approved by the dean of the School of Mineral Engineering and the UAF Provost. This motion is effective June 12, 2002."

IV.»Ongoing Issues

A.»Status Report on State Funded Capital Appropriations»- Reference 19

Vice President Beedle will review with the committee the Status Report on State Funded Capital Appropriations, including expenditure summaries for direct appropriations and those funded through AHFC. This is an information item only; no action is required.

B.»Review of Recently Completed Audits

Ben Shilling, Internal Audit director, will review with the Finance and Audit Committee recently completed audits and answer any questions members of the committee may have. This is an information item; no action is necessary.

C.»Audit Status Report
Strike through items - have been removed from the plan.
Italic items»- have been completed or are in progress.

FY2002 Annual Audit Plan

KPMG External Audit Support:

Year-end cutoff
Inventory observation
Cash disbursements & bank transfers
Cash depositories
Auxiliary fund analysis
Unexpended plant fund additions

Audits and Projects:

University of Alaska Fairbanks:
Bookstore
Interior Aleutians Campus Business Office
Departmental Cash Receipts
Departmental ProCard
UA Press
Grant and Contract Services»
Follow-up Audits

University of Alaska Southeast:
Departmental Cash Receipts
Grants and Contract Services
Ketchikan Campus Business Office
Follow-up Audits

University of Alaska Anchorage:
College of Health, Education & Social Welfare - Professional and Continuing Education
Departmental Audit
Departmental Cash Receipts»
Departmental ProCard
Prince William Sound Community College
Kenai Campus Business Office
Follow-up Audits

EDP Reviews:
Security
Data Integrity»
Software Licensing

Function and System Reviews:
Banking Activities
Research Compliance

Internal Audit Reports & Activities:

Final Reports Issued:

UAA Grant and Contract Services - May 2002
Our tests and observations indicate that the Grants and Contracts Department is functioning well. Areas we identified as needing attention included grant reporting, billing, and the allowance for doubtful accounts calculation. Some problems in these areas were associated with the lack of a fully functional grant and contract module in Banner. The Grants and Contracts Department has not been maintaining a grants receivable aging report. Without this report, it is difficult for the office to follow-up on delinquent accounts or to estimate an accurate allowance for doubtful contracts. A research accounting module that also assists in scheduling and monitoring the status of grant reporting requirements would provide more control over the reporting process. Recent Banner upgrades are anticipated to have much of the features needed to assist in the solution to these problems. Until the features from these upgrades are fully realized, other means need to be implemented to resolve these issues.

UAA PWSCC - May 2002
Our tests and observations performed during this review identified a number of areas for improvement including: business office and bookstore cash receipts, cash disbursements, and travel. We also made recommendations regarding regular and routine maintenance of PWSCC facilities and the inadequate FY01 fund balance in the bookstore.

UAA Department Use of the ProCard - May 2002
Overall, the ProCard process appears to be functioning well, however, increased attention needs to be given to users of the cards. Management attention is primarily needed to reinforce proper card usage, maintenance of supporting documentation, timely and proper reconciliation completion, and timely review by supervisors.

UAA CHESW PACE - May 2002
Management attention is needed in the process of creating and delivering professional development courses at UAA. The current process does not effectively meet the continuing education goals of UA or the needs of the course sponsors and students. UA goals for continuing education are evidenced by the creation of UA Corporate Programs as well as comments made by the president calling for an expansion of continuing education for teachers and school administrators. Course sponsors and students were obtaining some of their continuing education from non-UAA sources, not because UAA wasn't capable of delivering, but because timely course delivery was hindered by inefficiencies in UAA's course approval process. Items related to but not justified by deficiencies in the process included last minute course cancellations, falsification of records, and unacceptable cash handling in the PACE department. The impacts of these deficiencies included inaccurate record keeping, foregone revenue, and damage to the university's image.

UA Press - May 2002
Management attention is needed in the organizational structure and operation of the UA Press. The organizational structure and an informal method of handling personnel matters has led to an inefficient use of human resources, resulting in high turnover and delays in work production. The organizational structure lacked a clear supervisory position to oversee day-to-day activities. Personnel decisions, including job assignments and salary agreements, were made verbally without interaction with Human Resources. At the time of our review, personnel from the provost's office were assisting in the management of the department to ensure the work continues to get done following a significant number of employee resignations. Other concerns include insufficient workflow management and deficient controls in the areas of cash handling and accounts receivable.

UAF Departmental Cash Receipts - May 2002
The audit made recommendations to improve controls in the Registrar's Office, the Geophysical Institute, Wood Center, Theatre Box Office, and the Museum. The control weaknesses included inadequate deposit reconciliation and cash register operating controls, untimely deposits, handling of checks received in the mail, petty cash procedures, and inadequate controls over change funds.

Work in Progress:

SW Program Change Control
SW Banking Services
UAA Departmental Cash Receipts
UAA Small Business Development Center
UAA Bookstore
UAA Kenai
UAF IAB
UAF Warehouse Recharge Center
UAF Kuskokwim Campus
UAF Follow Up
UAF Polar Express
UAF ProCard
UAF Bookstore
UAS Ketchikan
UAS ProCard and Cash Receipts
UAS Grants & Contracts
UAS Travel

Management Requested Investigations:

UAF Coal Hauling
UAF AFES
Nome Campus
UAF Cost of Water Production

State Legislative Audit Reports & Activities:

Work in Progress
Legislative Audit is working on an audit of our RIP participation from FY97 through FY99. This spring they were on site at UAA and UAF. The university is only a part of their overall audit of the state's RIP. Their goal is to be able to prepare a "Report Card" for the legislature on the merits of the RIP. We have not received any comments from the auditors since they were on site other than to provide additional information.

Federal Audit Reports & Activities:

Work in Progress:
--The Defense Contract Audit Agency (DCAA) conducted a review of our fringe benefit costs for FY01 in May. No report has been issued yet.

External Audit Reports & Activities:

Final Reports Issued:
--University of Alaska FY01 Federal Financial Reports - These reports contained clean opinions and no findings or questioned costs.
--KUAC FY01 Financial Statements and CPB Reports - These reports also contained clean opinions.
--University of Alaska FY01 Management Letter

Work in Progress:
Interim work on the FY02 audit will begin the week of June 10, 2002.

D.»Report on Title IX Compliance

Ben Shilling, director of Internal Audit, will review with the Finance and Audit Committee work that has been conducted on the UAA and UAF campuses regarding compliance with Title IX and gender equity in athletics.

This is an information item; no action is necessary.

V.»New Business

A.»Approval of the FY2003 Annual Audit Plan»- Reference 20

Ben Shilling, director of Internal Audit, will present to the Finance and Audit Committee for approval the annual audit plan for FY2003, which is included as Reference 20. Regents' Policy 05.03.01.D - Internal Audit reporting states:

The director of internal audit, in conjunction with the Regents' external auditors, shall annually present a complete audit plan for the university to the Board of Regents' Finance and Audit Committee for review and approval.

The Internal Audit Department's annual audit plan includes providing agreed-upon audit support to the university's independent auditors, KPMG. Other external audit coverage will also be discussed with the committee, including expected federal and state audit activity.

The President recommends that:

MOTION

"The Board of Regents' Finance and Audit Committee approves the annual audit plan for fiscal year 2003 as presented. This motion is effective June 12, 2002."

VI.»Executive Session

This motion is provided in the event an executive session is needed to discuss audit matters.

MOTION

"The Finance and Audit Committee of the Board of Regents goes into executive session at _________ A.D.T in accordance with the provisions of AS 44.62.310 to discuss matters the immediate knowledge of which would have an adverse effect on the finances of the university related to audit matters. The session will include members of the Board of Regents, President Hamilton, General Counsel Parrish, Internal Audit Director Shilling, and such other university staff members as the president may designate and will last approximately _____ hour(s). Thus, the open session of the Finance and Audit Committee will resume in this room at approximately _______ A.D.T. This motion is effective June 12, 2002."

(To be announced at conclusion of executive session)

The Finance and Audit Committee of the Board of Regents concluded an executive session at _____ A.D.T. in accordance with AS 44.62.310 discussing matters the immediate knowledge of which would have an adverse effect on the finances of the university. The session included members of the Board of Regents, President Hamilton, General Counsel Parrish, Internal Audit Director Shilling, and other university staff members designated by the president and lasted approximately ______ hour(s).

VII.»Future Agenda Items

A. ASTF 2002 Funding Shortfall
B. UA Wide Planning Matrix-Regents' Retreat Focus Areas
C. Status Report on Bond Financing
D. Student Tuition and Fees
E. FY04 Budget Progress Report

VIII.»Adjourn

Agenda
Board of Regents
Planning and Development Committee
Thursday, June 13, 2002; *9:00 a.m. - 10:00 a.m.
Regents' Conference Room 109, Butrovich Building
University of Alaska Fairbanks Campus
Fairbanks, Alaska

Committee Members:
Brian D. Rogers, Chair
Elsa Froehlich Demeksa
Kevin O. Meyers»
Chancy Croft, Board Chair

I.»Call to Order

II.»Adoption of Agenda

MOTION

"The Planning and Development Committee approves the agenda as presented.

I. Call to Order
II. Adoption of Agenda
III. Discussion regarding Strategic Planning 2009
IV. New Business
V. Future Agenda Items
VI. Adjourn

This motion is effective June 13, 2002."

III. »Discussion regarding Strategic Planning 2009

President Hamilton and members of the committee will discuss the current status and the adoption of a timeline to accomplish the goal of adopting a strategic plan by December 2002.

IV.» »»New Business

V.» »»Future Agenda Items

VI. »Adjourn