10-2-92minutes

Board of Regents

OFFICIAL MINUTES

Board of Regents' Meeting
October 2, 1992
Fairbanks, Alaska

Regents Present :

Robert F. Williams, President

Morris Thompson, Vice President

Susan A. Stitham, Secretary - arrived at 11:40 a.m.

Eric Forrer

Sharon D. Gagnon

Joseph R. Henri

Michael P. Kelly

Tim Lamkin

Lew Williams, Jr. - arrived at 12:09 p.m.

Jerome B. Komisar, Executive Officer & President of the University of Alaska

Regents Absent :

Mark H. Helmericks, Treasurer

Virginia W. Breeze

In Attendance :

Donald F. Behrend, Chancellor, University of Alaska Anchorage

Marshall Lind, Chancellor, University of Alaska Southeast

Joan Wadlow, Chancellor, University of Alaska Fairbanks

William R. Kauffman, Vice President and General Counsel

Luis Proenza, Acting Vice President for Academic Affairs & Research

Wendy Redman, Vice President for University Relations

Brian Rogers, Vice President for Finance

Jeannie D. Phillips, Regents' Affairs Officer

Jim Lynch, Associate Vice President for Finance

'Nanne Myers, Assistant Vice President for Academic Affairs

Patty Kastelic, Executive Director, Human Resources

Gerald Neubert, Executive Director, Facilities Planning & Construction

Marsha Hubbard, Director, Budget Development

Robert Miller, Director, Public Affairs

Donna Chantry, President, General Assembly

1. Call to Order

Board President Williams called the meeting to order at 9:03 a.m. on October 2, 1992.

2. Adoption of the Agenda

Regent Henri moved, seconded by Regent Forrer and passed unanimously that:

PASSED AS AMENDED

"The Board of Regents adopts the agenda as amended (*).

1. Call to Order

2. Adoption of the Agenda

3. Approval of the Minutes

* 3a. General Assembly Report (moved from 6a)

* 3b. Executive Session (added)

* 3c. Tudor Centre Property (added)

4. Chancellors' Status Reports

5. Administrative Status Reports

6. Comments

7. University Focus

8. Approval of Degree Recipients

9. Executive Session

10. Consent Agenda

a. Committee of the Whole

(1) Acceptance of the FY94 Operating Budget Request

(2) Acceptance of the FY94 Capital Budget Request

b. Committee of the Whole - Information and Other Items

(1) 1993-94 Tuition Levels

c. Academic and Student Affairs Committee

(1) Approval of Associate of Applied Science Degree Program in Paralegal Studies at the University of Alaska Fairbanks

d. Academic and Student Affairs Committee Report - Information and Other Items

(1) Discussion of FY93 Plans and Agenda of the Academic & Student Affairs Committee

(2) Report on Intercollegiate Athletics

(3) Report on Student Management of Student Facilities

(4) Report on Analysis of Instructional Workloads

e. Finance, Facilities, and Land Management Committee

(1) Revision to Regents' Policy 05.09 - Risk Management and Environmental Health and Safety

(2) Advance College Tuition Program

* (3) Revenue Bonds Resolution (moved to 14b)

(4) Option to Purchase Land in Downtown Palmer

(5) Chena Ridge Residential Subdivision Development

(6) University of Alaska Fairbanks Doyon House - Approval of Site Selection and Consultant

(7) University of Alaska Fairbanks Duckering Building Seismic Corrections - Approval of Schematic Design and Authority to Bid and Award a Contract

(8) University of Alaska Fairbanks Duckering Roof Replacement and Fume Hood Upgrade - Approval of Schematic Design and Authority to Bid and Award a Contract

(9) University of Alaska Fairbanks Residence Hall Security Improvements - Approval of Schematic Design and Authority to Bid and Award a Contract

(10) Increase in Student Activity Fee at the University of Alaska Anchorage - Anchorage Campus

f. Finance, Facilities, and Land Management Committee Report - Information and Other Items

(1) Report on FY93 Insurance Coverages

(2) Policy on Unfair Competition: UA/Private Sector

g. Human Resources Committee Report - Information and Other Items

(1) Discussion of FY93 Plans and Agenda of the Human Resources Committee

(2) Overview of the University of Alaska Position Classification System

(3) Overview of the University of Alaska Health Plan Program

11. Report from Ad Hoc Committee on Board of Regents' Assessment and Bylaws

12. Report from Board of Regents' Representatives on the Alaska Commission on Postsecondary Education

13. Regents' and Presidents' Comments

14. Other Items of Concern to the Board of Regents

* A. Approval of Honorary Doctoral Degree Recipient (added)

* B. Revenue Bonds Resolution (moved from 10e(3))

* C. White River Timber Property (added)

* D. Fish & Game and Lab Building Developments in Anchorage (added)

* E. Fairbanks North Star Borough and Fairbanks North Star Borough School District Property (added)

* F. Alaska Pacific University Property (added)

15. Adjourn

This motion is effective October 2, 1992."

3. Approval of the Minutes

Regent Thompson moved, seconded by Regent Henri, and passed unanimously that:

PASSED

"The Board of Regents approves the minutes of the June 12, 1992 and August 21, 1992 Board of Regents' meetings. This motion is effective October 2, 1992."

3b. General Assembly Report (moved from 6A)

Ray Highsmith, outgoing President of the General Assembly, introduced the new President of the General Assembly, Donna Chantry, to the Board of Regents.

Donna Chantry reported on upcoming General Assembly bylaw changes, thanked the Board for their cooperation in working with the General Assembly.

3c. Executive Session (added)

Regent Thompson moved, seconded by Regent Henri, and passed unanimously that:

PASSED

"The Board of Regents goes into executive session in accordance with the provisions of AS 44.62.310 to discuss matters relating to land acquisition/use, this topic being a subject the immediate knowledge of which would have an adverse effect on the finances of the university. The session shall include members of the Board of Regents, President Komisar, Associate General Counsel Neumayr, and such other university staff members as the President may designate and shall last approximately thirty minutes. Thus, the open session of the Board shall resume in this room at approximately 9:30 a.m. A.D.T. This motion is effective October 2, 1992."

The Board of Regents went into an executive session at 9:15 a.m.

The Board of Regents returned to public session at 9:42 a.m.

Board President Williams announced that the Board of Regents had just ended an executive session in accordance with the provisions of AS 44.62.310 to discuss matters relating to land acquisition/use, this topic being a subject the immediate knowledge of which would have an adverse effect on the finances of the university.

3d. Tudor Centre Property (added)

Regent Henri moved, seconded by Regent Gagnon, and passed unanimously that:

PASSED

"The Board of Regents authorizes the administration to offer up to $6.1 million for purchase of the Tudor Centre property, funds to be paid from bond proceeds. This motion is effective October 2, 1992."

4. Chancellors' Status Reports

Joan Wadlow, chancellor, University of Alaska Fairbanks, thanked the Board for participating in the Deferred Maintenance Tour; announced the appointments of Dr. Gordon Hegal as the Dean of the College of Liberal Arts, and Hollis Hall as Director of the Cooperative Extension Service; reported on summer activities at UAF including the Summer Arts Festival, dedication of the new harp, various conferences held on the UAF campus including the Second International Mining Symposium, the Arctic Conference, and the Senate Select Committee on Intelligence meeting. Chancellor Wadlow reported on exchange program activities; fall enrollment increases; a possible name change from School of Career and Continuing Education to Tanana Valley Campus; the possibility of moving the Department of Mathematical Sciences and Computer Science to the School of Engineering; equity seminars held on campus and recommendations coming out of those seminars. Chancellor Wadlow also invited the Board to attend the open house at the Geophysical Institute.

Marshall Lind, chancellor, University of Alaska Southeast, reported on UAS - Juneau campus fall semester enrollment drops due to lack of housing on campus and high housing costs in Juneau; he also reported that enrollments were up at the Sitka Campus; congratulated Donna Chantry, a UAS employee, on becoming the new General Assembly president; and announced the receipt of the Verna Carrigan endowment for scholarships and support of library services.

Beverly Beeton, provost and vice president for academic affairs, University of Alaska Anchorage (speaking on behalf of Chancellor Donald F. Behrend), reported on the UAA annual "Spirit Day"; a new program developed by the Journalism and Public Communication department for high school students interested in the media; current exchange program activities; professional development programs; a review of the successful faculty convocations held at UAA; the Justice Center's recent report on crime statistics; the near completion of the UAA classroom building; and accreditation activities in the BA for Social Work, the AAS in Nursing, and the Certificate in Paralegal programs.

5. Administrative Status Reports

Brian Rogers, vice president for finance, reported on the acquisition of the Tudor Centre property; the successful defense contract audit; Statewide Finance organizational changes; and the Board of Regents' travel accident policy.

Wendy Redman, vice president for university relations, reported on preliminary legislative activities. Vice President Redman reported that there would be a full legislative report at the December meeting since many legislative issues would be subject to analysis after the November 2 elections were held.

Luis Proenza, vice president for academic affairs and research, reported on his recent trips to Washington, D.C. promoting federal relations with the University of Alaska.

6. Comments

A. General Assembly (moved to 3A)

B. Alumni

Sybil Skelton urged the Board to consider telecommunications for reaching students throughout the state of Alaska

C. University/College Councils

Roy Barton, UAA Council member, expressed his concern regarding the lack of funding for UAA and urged the Board to separate tuition from other general funds received from the legislature.

D. Faculty and Staff

Len Smiley, UAA faculty senate president, reported on the status of the Senate's review of the Kaludis report and assured the Board that their comments would be forwarded to President Komisar in the very near future.

David Spell, UAF faculty senate president-elect, thanked the Board for taking the time to visit the UAF campus deferred maintenance problems; and urged the Board to remember that excellence in education is the goal for UAF.

John D'Armand, UAS Music Department faculty member, spoke against the plan to discontinue the German program at UAF.

Victoria Moessner, UAF Foreign Language Department faculty member, urged the Board to reinstate the German program at UAF.

E. Students

Elsie Compton, UAF student, urged the Board to reinstate the German program at UAF.

Sarah Holzman, UAF student, spoke against the elimination of the German program, and reported on the failure of staff members to notify the students of this intent.

Logan Moore, UAF student, asked the Board to reverse Chancellor Wadlow's decision to eliminate the German program at UAF.

Chris Jenkins, UAF student, asked that the Board set a specific time during the Board of Regents meetings for comments so that those who want to speak do not have to wait; and encouraged the Board to approve a Master's degree in Social Work (MSW).

Jodi Lamoreaux, UAF student, also asked that the Board give their approval for the MSW at either UAF or UAA.

Hugh Walker, UAF student, expressed his desire to obtain an MSW in order to more effectively help his fellow Alaska Natives.

Brian Brubaker, ASUAF representative, spoke on the elimination of the German program, and urged the Board to seriously look at the state of the UAF housing shortage.

F. Public

Sharon Smoyer urged the Board to adopt a Master's degree program in Social Work.

7. University Focus

Vice President Proenza introduced a new series of focused reports on activities throughout the system. The focus is intended for Board members and staff to gain an appreciation of activities that distinguish the University of Alaska.

Gunter Weller, director of the Center for Global Change and Arctic System Research, gave a presentation on the Center's activities and how they augment the missions of the University of Alaska and University of Alaska Fairbanks, as well as assist national and international efforts in the area of global change.

8. Approval of Degree Recipients

Regents' Policy 10.01.02 requires annual approval by the Board of Regents of degree and other formal awards conferred in the preceding academic year. An official listing of these awards was available for regents' inspection at the October 1-2, 1992 Board of Regents meeting.

Regent Lamkin moved, seconded by Regent Henri, and passed unanimously that:

PASSED

"The Board of Regents approves the list of degree recipients for the summer and fall of 1991 and the spring of 1992. This motion is effective October 2, 1992."

9. Executive Session

Regent Thompson moved, seconded by Regent Kelly, and passed unanimously that:

PASSED AS AMENDED

"The Board of Regents goes into executive session in accordance with the provisions of AS 44.62.310 to discuss matters relating to litigation and land acquisition/use, these topics being subjects the immediate knowledge of which would have an adverse effect on the finances of the university; and honorary degree awards, this topic being a subject which might tend to prejudice the reputation and character of a person or persons. The session shall include members of the Board of Regents, President Komisar, Associate General Counsel Neumayr, and such other university staff members as the President may designate and shall last approximately two hours. Thus, the open session of the Board shall resume in this room at approximately 2:30 p.m. A.D.T. This motion is effective October 2, 1992."

The Board of Regents went into executive session at 12:30 p.m.

The Board of Regents returned to public session at 2:15 p.m.

Board President Williams announced that the Board of Regents had just ended an executive session in accordance with the provisions of AS 44.62.310 to discuss matters relating to litigation and land acquisition/use, these topics being subjects the immediate knowledge of which would have an adverse effect on the finances of the university; and honorary degree awards, this topic being a subject which might tend to prejudice the reputation and character of a person or persons.

10. Consent Agenda

a. Committee of the Whole

(1) Acceptance of the FY94 Operating Budget Request

The administration presented its recommendations regarding the FY94 Operating Budget. The Committee of the Whole accepted the recommendations with the addition of an amendment to move the item on UAS Student Assessment from Priority 3 to Priority 2.

(2) Acceptance of the FY94 Capital Budget Request

The administration presented its recommendations regarding the FY94 Capital Budget. The Committee of the Whole accepted the Alternative 1 recommendations with the additions of amendments to Item F.16, increasing the amount to $10,100,000 and Item F.19, increasing the amount to $2,800,000.

Regent Forrer moved, seconded by Regent Henri, and passed unanimously that:

PASSED AS AMENDED

"The Board of Regents approves the recommendations of the Committee of the Whole as amended. This motion is effective October 2, 1992."

b. Committee of the Whole - Information and Other Items

(1) 1993-94 Tuition Levels

Regents' Policy 05.10.01(L) provides that "the university administration will annually, at the first regular meeting of the Board of Regents occurring after September, report to the regents the average of the three prior years' percentage increases in the Higher Education Price Index (HEPI)." It further provides that "the administration may report to the regents its recommendations on other factors . . . which the administration believes should be considered by the regents in setting tuition levels." Regent action on any administration recommendations would be slated for the February 25-26, 1993 meeting.

The administration presented introductory information on the HEPI and other factors which the administration believes requires an increase of 10 percent (from $58 to $64 per credit hour) with no increase in consolidated fee levels.

c. Academic and Student Affairs Committee

(1) Approval of Associate of Applied Science Degree Program in Paralegal Studies at the University of Alaska Fairbanks

The School of Career and Continuing Education (SCCE) and the Political Science Department at UAF have developed an AAS program in paralegal studies in response to the demonstration of need for such training within the community. The goals of the program are to provide a fundamental education in the vocabulary and process of the paralegal profession as well as to develop skills in computation, communication, and human relations. The program has been designed in consultation with agencies and private law offices employing paralegals in the Fairbanks area and with schools offering such programs. Job entry training at the AAS level was chosen for the program in order to guarantee that graduates have been provided the general education skills which have proven crucial to success in the profession. The curriculum follows guidelines established by the American Bar Association and the National Federation of Paralegal Associations and conforms to the accreditation standards of the Northwest Association of Schools and Colleges. Graduates will thus be able to compete in the marketplace locally as well as nationally.

Portions of the curriculum and faculty are already in place. Four of the eleven required courses are presently offered by the Political Science Department, another by SCCE, and two others have been offered by SCCE as trial courses. A full-time political science faculty member will have oversight responsibility for the program, and appropriate adjunct faculty will be drawn from local practicing attorneys with experience working with paralegals. Current staff is adequate to provide administrative services. The program will be primarily housed within SCCE facilities, and will utilize the resources of the state's law library located in the courthouse. Resources will be reallocated within SCCE to cover the additional costs of providing current and new courses on a time schedule which will allow full-time students to complete the program in four semesters.

Coordination of this proposal between SCCE and the Political Science Department provides articulation for students seeking a baccalaureate.

UAS already offers an AAS in paralegal studies, and UAA a 60-credit hour certificate (31 credits in the major) which can stand alone or serve as a basis for further study toward a BA in Justice with a paralegal emphasis. Both of these programs are presently well enrolled and, respectively, have graduated 39 students in the last six years and nine in the last two (UAA instituted its program in 1989). Both UAS and UAA note the regional need for the program by students who are primarily already employed and place-bound, and neither see the UAF program as threatening to enrollments on other campuses. The rural campuses within UAF have also expressed a need for access to paralegal training.

This proposal is a result of UAF's ongoing planning activities for providing an array of programs which reflect student demand and efficient use of existing resources. Approval of this program will permit UAF to remain responsive to changing training needs of the existing as well as future workforce.

Regent Stitham moved, seconded by Regent Forrer, and passed unanimously that:

PASSED

"The Board of Regents approves the recommendations of the Academic and Student Affairs Committee as stated above. This motion is effective October 2, 1992."

d. Academic and Student Affairs Committee Report - Information and Other Items

(1) Discussion of FY93 Plans and Agenda of the Academic & Student Affairs Committee

President Komisar and Acting Vice President Proenza lead a discussion on possible FY93 plans and agendas for the Academic and Student Affairs Committee.

(2) Report on Intercollegiate Athletics

Members of the UAA and UAF athletic departments responded to the June 12, 1992 Board of Regents' request for a report on intercollegiate athletic programs provided by the University of Alaska Anchorage and the University of Alaska Fairbanks.

(3) Report on Student Management of Student Facilities

At the June 11, 1992 meeting, the Academic and Student Affairs Committee requested reports from UAA, UAF, and UAS regarding the extent of student management of student facilities. Reports from the campuses and a summary table were presented. These reports indicate that, while professional staff are responsible for the full and overall management of facilities, students generally have a significant voice in the management of facilities dedicated to student activities outside the classroom and of activities situated within these facilities. Representatives from each university were present and answered questions from Board members.

(4) Report on Analysis of Instructional Workloads

Vice President Proenza reported on the ongoing analysis of instructional workloads.

e. Finance, Facilities, and Land Management Committee

(1) Revision to Regents' Policy 05.09 - Risk Management and Environmental Health and Safety

Vice President Rogers recommended revisions to regents' policy concerning environmental health and safety which rephrases certain directives as policy statements and eliminates certain issues which can be more effectively addressed in university regulations and procedure manuals. There are frequent changes in federal and state environmental health and safety laws and regulations. To the extent practical, the routine changes will be reflected in university regulation rather than regents' policy.

This action also renumbers Policy 05.09. The entire chapter was contained in Policy 05.09.01. It was recommended that it be divided into three sections: Policy 05.09.01 - General Statement; Policy 05.09.02 - Risk Management; and Policy 05.09.03 - Environmental Health and Safety.

(2) Advance College Tuition Program

The Board of Regents adopted the Advance College Tuition (ACT) program in April 1991. Since that time, the ACT office has been established and has handled two dividend application cycles and helped thousands of Alaskans purchase prepaid tuition credits for future education. Bonnie Williams, director for ACT, provided the committee with a status report on the program.

In addition, the ACT Plan provides that the Board of Regents will establish the purchase price of prepaid tuition credits annually. For FY92, the purchase price was $55, the forecasted tuition for the fall 1992. The actual tuition rate for the fall 1992 semester was eventually set at $58. In order to keep pace with anticipated tuition increases, the Plan Administrative Committee and Vice President Rogers recommended setting the purchase price for calendar year 1993 at $66.

(3) Revenue Bonds Resolution

Moved to Item 14B.

(4) Option to Purchase Land in Downtown Palmer

The University owns 4.91 acres in downtown Palmer which has historically been used by the Agricultural Experiment Station (AES) in Palmer for research test plots. The AES recently determined that the property is surplus to its needs.

SOLM has been approached by an investment group interested in purchasing the property for the development of senior citizen and handicapped housing under the Farmers Home Administration (FHA) 515 program. This program provides financing for the development of housing which supplies both subsidized and at-cost congregate apartment style housing for handicapped people and people over the age of 62. The Palmer Economic Development Agency and the city of Palmer have expressed support for the university's participation in this project.

Staff has advertised the availability of the land for lease or purchase. Several people responded to the advertisement but no alternative proposals were submitted.

SOLM has begun preliminary negotiations with the investors for the sale, at fair market value, of all or a portion of the property. Due to the extended time frame for FHA review and funding, a 3-year option to purchase is being offered. The potential buyers will pay 8 percent of the fair market value per year for the option, a portion of which will go toward the purchase price at closing. If the transaction does not close, all payments will be retained by the university.

(5) Chena Ridge Residential Subdivision Development

The university owns approximately 320 acres of high quality southeast sloping property on Chena Ridge Road in Fairbanks. Staff has reviewed the demand for comparable lots in the area and feel that this property can be subdivided and sold in phases at a substantial profit to the university. Although there are vacant lots for sale on Chena Ridge, most similar view properties with good access have been sold.

SOLM staff has had the property surveyed, secured an accurate aerial contour map, made the initial agency contacts and done much of the preliminary work necessary to prepare the master plan. The master plan will provide for the first phase of development of approximately 15 lots near Chena Ridge Road. These lots will be sold during the spring land sale.

Total surveying, platting, planning, rezoning, and appraisal expenses to secure preliminary plat approval for this project and final plat approval for the first block of lots to be sold will be approximately $50,000. Staff will develop an RFP for the road work associated with the first phase of development which will provide a subdivision lot as partial or full payment toward the construction costs. Electricity will be brought in after the lots have been sold and road construction commences.

The current subdivision design contains a neighborhood park and restrictive covenants which provide both management of the park by the residents and adequate development restrictions to maintain a high quality development.

(6) University of Alaska Fairbanks Doyon House - Approval of Site Selection and Consultant

PROJECT OVERVIEW

The Doyon Foundation has requested that the University of Alaska Fairbanks participate in a joint effort to develop a new student residence for rural Alaska students. The new facility will provide a sensitive environment for students from rural areas and aid in their transition into college life. The facility will consist of approximately 10,000 square feet and house up to twenty students providing them with a "house family" atmosphere. The facility will be located on the UAF campus with ready access to classrooms, the library and other resources. Total cost for the facility is projected to be $1.5 to $2.0 million.

A conceptual plan has been developed which will provide the basis for further development.

Kathy Mayo, executive director of the Doyon Foundation, has met with the UAF Master Planning Committee to investigate appropriate sites for the Doyon House. The committee met the week of August 10, 1992 and approved the site of building #705 on Tanana Loop, which was preferred by the Doyon Foundation and complies with the 1991 Master Plan. The committee's recommendation for this site was presented to Chancellor Wadlow. She approved the committee's recommendation on August 18, 1992. The Master Plan and committee recommendation were included.

SCHEDULE

The schematic design will be completed by December 1, 1992 and will establish accurate cost information to use for soliciting additional funding. Doyon Foundation hopes to be successful in their fund raising so that the facility can be completed by 1994.

SITE ANALYSIS

A site location map was included. The criteria for site selection is a location which meets the following:

1. On campus and centrally located

2. High visibility

Seven sites were considered. Each was reviewed by representatives of the Doyon Foundation and the UAF Master Plan Committee. Through this process the number of mutually agreed upon sites was reduced to two: Columbia Circle and Tanana Loop just north of Yukon Drive.

Both locations require demolition of existing housing units that have exceeded their useful life. Each site has on-site utilities, pedestrian and vehicular access and is located close to the central part of campus.

The Doyon Foundation group requested approval of the Tanana Loop (building #705) location and forwarded that choice to the UAF Master Plan Committee. The contributing factors for this selection were site visibility, access to main campus, attractiveness of site, and ability to expand.

An RFP was published in late July 1992 which identified the scope of work as the development of a schematic design and cost estimate. Proposals were received on August 6, 1992. Three proposals were received and evaluated. Three consultant teams were short-listed and interviewed.

Final interviews were held on August 25, 1992 at the offices of Facilities Planning and Construction, Northern Region.

The following individuals served on the Doyon House selection committee:

James J. Allan, Project Manager, FPC/Northern Region

Janet J. Matheson, Project Manager, FPC/Northern Region

Kathy Mayo, Executive Director, Doyon Foundation

Mitchell Allen, Board Member, Doyon Foundation

Eric Jozwiak, Associate Director. UAF Residence Life

Charles Davis II, Facilities Engineer, UAF Physical Plant

Consultant selection was based on interviews and reference verification utilizing a standardized point system.

The recommended consultant is C. B. Bettisworth and Company. In the event that a contract cannot be negotiated with the recommended consultant, it is anticipated that a contract will be negotiated with the listed alternates in priority order:

Alternates:

1. Design Alaska

2. USKH, Inc.

FUNDING

Design services for the development of a schematic design and cost estimate will be funded by an FY93 direct capital appropriation of $300,000.

SCHEDULE

Schematic design and a cost estimate will be complete and approved by December 1, 1992. Doyon Corporation is responsible for raising construction cost funds. The intent is to secure funding so that the facility can be completed in 1994.

(7) University of Alaska Fairbanks Duckering Building Seismic Corrections - Approval of Schematic Design and Authority to Bid and Award a Contract

PROJECT OVERVIEW

A March 1984 consultant study concluded that the existing Duckering Building may not withstand an earthquake of the magnitude for seismic Zone 3 (the zone for Fairbanks). The Duckering Building was constructed over a period of years, beginning in 1959 with the original basement and first floors in Areas A and B; additions in 1963 in Areas A, B, and C; the 1967 addition in Area D; and the 1983 and 1984 additions for Area E (refer to sketch SK-1 for the general building layout). The typical structural system is concrete fill over metal deck. The existing building is currently separated into four seismically separate structures, as indicated in sketch SK-1, with 2" wide seismic joints. This produces the equivalent of four separate non-symmetric buildings. Stress concentrations at the junction of the wings is difficult to control.

The design for the Duckering Addition in 1982 and 1983 revealed seismic deficiencies in the existing structures. Specifically, deficiencies were found in the lateral support system and with the expansion joints. This project will provide the required modifications beneath some structural elements as well as new shear walls in specific areas. The new shear walls will extend from the foundations up to the second floor.

DESIGN CONSULTANT

The selection of Anderson, Bjornstad, Kane, Jacobs, Inc. (ABKJ), of Anchorage, Alaska was approved at the Board of Regents' December 15, 1989 meeting.

Dennis L. Berry, Vice President/Manager of Alaska Operations, acts as ABKJ Inc.'s Project Manager.

FUNDING

Funding for the project was appropriated by State Legislature as follows:

$75,000 for Design in FY90

$600,000 for Corrections in FY92

The consultant's construction estimate for the work is $500,000.

PROJECT SCHEDULE

Consultant Review and Observations June 1990

Phase I Study Report October 1990

Phase II Design/Structural Retrofit March 1992

Bid and Award November 1992

Construction Completion June 1993

(8) University of Alaska Fairbanks Duckering Roof Replacement and Fume Hood Upgrade - Approval of Schematic Design and Authority to Bid and Award a Contract

PROJECT OVERVIEW

Roof Replacement - Old Duckering Building:

Old Duckering Building has approximately 30,000 square feet of roof area. The original building was constructed in 1961, with major additions added in 1964 and 1967.

The existing original roof is in poor general condition and leaks. Blistering, alligatoring and ponding is typical of the entire roof surface, and the insulation is saturated.

The entire roof system, including the wet insulation, will be removed down to the existing concrete structural deck, and a new granular surfaced, high performance, three-ply, built-up roof covering will be provided. The new roof will conform to U.L. Class A requirements. New expanded polystyrene (EPS) insulation will be provided which will increase the "R" value to an average of R-32, as recommended by ASHRAE. The new insulation will be a tapered system installed to provide a positive roof drainage. The parapet walls will be extended to accommodate the increased insulation thickness required to provide the desired insulating "R" value and positive drainage.

All work will be coordinated with the Duckering Seismic Corrections project.

Fume Hood Upgrade - Old Duckering Building:

Exhaust air through a fume hood needs to generate a face velocity of 100 feet per minute (fpm) at the fume hood opening to properly capture and exhaust potentially hazardous fumes, protecting the user from exposure. Face velocity measurements of the 20 fume hoods in Old Duckering indicate that 16 fume hoods operate in a range that does not adequately protect users.

This project will include the following:

1. Nine of the fume hood systems will be completely replaced, including variable air volume (VAV) controls and new stainless steel exhaust stacks extended to a nominal 12 feet above the roof.

2. Five exhaust stacks will be replaced by stainless steel and/or extended to 12 feet above the roof.

3. Two exhaust fans will be balanced to achieve 100 fpm face velocities.

4. Portions of the existing air handler systems will be up-sized to provide more make-up air, allowing the fume hood exhausts to function properly.

5. All roof-mounted fans and stacks will be remounted on new curbs, integrated into the new roofing system.

DESIGN CONSULTANT

The architectural/engineering consultant for both of these projects is USKH, Inc. of Fairbanks, Alaska. The Board of Regents approved their selection for the fume hood upgrade project on August 17, 1990, and their selection for the roof replacement project on August 17, 1991.

FUNDING

These projects will be integrated and bid as one construction project. This will provide for direct coordination of the related work on the roof and provide the university with a roof under full warranty.

The project is funded by three direct appropriations: the roof work is funded under deferred maintenance in the FY93 Capital Budget and the fume hood upgrade work is funded by two direct appropriations in the FY90 and FY91 budgets.

SCHEDULE

Design September 1992

Advertise for Bids October 1992

Construction August 1993

9) University of Alaska Fairbanks Residence Hall Security Improvements - Approval of Schematic Design and Authority to Bid and Award a Contract

PROJECT OVERVIEW

The University of Alaska Fairbanks received a $1,300,000 FY92 capital appropriation in 1991 for the installation of telephones in campus residences and emergency telephones on the UAF campus.

The following work has been accomplished: conduit has been installed in Moore, Bartlett, and Skarland Halls, penetrations for conduit in Lathrop Hall have been installed, and emergency phone units have been purchased.

This project will purchase the telephone system hardware and handsets, emergency telephones, telephone conduit, phone/ data/TV wiring, and cable tray and trunk cables. Additional funding in the amount of $600,000 will be secured from bond sale proceeds.

Telephone/data/cable TV service would be provided by UAF Utilities Operations. Requests for service would be received and billed by UAF Housing.

ENGINEERING CONSULTANT

The engineering consultant for this project is Lake and Boswell of Fairbanks, Alaska. The consultant was selected from the University of Alaska's Term Contract Consultant Pool. The project manager is Rob Boswell, P.E.

FUNDING

A one-page budget was attached to the agenda item.

SCHEDULE

Schematic Design July 31, 1992

Review July 31 - October 1, 1992

Construction Documents Due November 13, 1992

Review November 13-27, 1992

Bid Period December 7, 1992 - January 8, 1993

Construction January 1993 - June 1993

(10) Increase in Student Activity Fee at the University of Alaska Anchorage - Anchorage Campus

In June 1991, the Board of Regents approved a $5 per semester increase in the UAA - Anchorage Campus student body activity fee to support a concert program. Due to unforeseen difficulties, this fee was not collected in FY92 nor requested during the FY93 student government budget approval in June 1992.

UAA student government is now prepared to implement the concert program and wishes to include the $5 increase as part of the total activity fee for the spring 1993 semester. This increase will raise the student activity fee from $13.00 to $18.00 per semester.

Regent Henri moved, seconded by Regent Williams, and passed unanimously that:

PASSED AS AMENDED

"The Board of Regents approves the recommendations of the Finance, Facilities, and Land Management Committee as amended. This motion is effective October 2, 1992."

f. Finance, Facilities, and Land Management Committee Report - Information and Other Items

(1) Report on FY93 Insurance Coverages

On August 21, 1992, the Board of Regents asked the administration to review insurance coverages for the current year with the Finance, Facilities and Land Management Committee. The administration presented information on coverage levels and funding for insurance for liability, property and other university risks.

(2) Policy on Unfair Competition: University of Alaska/Private Sector

Vice President Brian Rogers reported on the issue of unfair competition between the University of Alaska and private sector businesses, asking the advice of the Board on whether the University should develop a policy to address this issue. Board members advised the vice president of their reluctance to have a policy on this matter and advised against such action.

g. Human Resources Committee Report - Information and Other Items

(1) Discussion of FY93 Plans and Agenda of the Human Resources Committee

President Komisar and Acting Executive Director Kastelic lead a discussion on possible FY93 plans and agendas for the Human Resources Committee.

(2) Overview of the University of Alaska Position Classification System

Acting Executive Director Patty Kastelic presented an overview of the current position classification systems and salary schedule placement process. An update on the systemwide auditing and training activities which have taken place during the past few months was described.

(3) Overview of the University of Alaska Health Plan Program

Acting Executive Director Patty Kastelic described the UA Health Plan and its cost history. Recent cost increases and the processes being put into effect to address the problem were discussed.

11. Report from Ad Hoc Committee on Board of Regents' Assessment and Bylaws

Regent Sharon Gagnon, Chair, reported on the progress of the ad hoc committee on Board of Regents' Assessment and Bylaws.

12. Report from Board of Regents' Representatives on the Alaska Commission on Postsecondary Education

Regent Sharon Gagnon reported on the actions and discussions of the Commission at their last meeting including the Commission's reluctance to raise the level of tuition loaned at this time; appointment of a subcommittee on WICHE and WAMI; and loans this year equaling approximately $40 million with 8,484 loans made.

13. Regents' and Presidents' Comments

Regent L. Williams thanked the administration for the fine work accomplished during the Board of Regents' meeting.

Regent Henri expressed his satisfaction with the meeting; reported on the actions of the ad hoc committee on mining education; and reported that the Finance Committee would be meeting in Kotzebue on November 2 to tour the Red Dog Mine, meet Chukchi campus faculty, staff and students and Kotzebue residents, and discuss deferred maintenance.

Regent Stitham asked for a report on where the Rural Development program resides as well as how the College of Rural Alaska restructuring is proceeding; requested an action plan on implementing a Master's degree program in Social Work; and thanked Dick and Jo Scott for hosting the Board at the Wednesday night function.

Regent Thompson urged the administration to give serious consideration to putting forward a plan for a Master's degree program in Social Work.

Regent Forrer reiterated Regent Thompson and Stitham's requests regarding the MSW; and offered his congratulations to Vice President Brian Rogers and his staff on the successful land acquisitions.

Regent Kelly thanked the administration for their good work and commented that this meeting had been very successful.

Regent Gagnon also commented on the success of the meeting.

President Komisar thanked the Board for attending the extended meetings.

Board President Williams read a letter to the Board from Regent Breeze thanking them for their concern during her hospital stay and convalescence; and commented that the "Comment" section seemed to have more positive statements lately.

14. Other Items of Concern to the Board of Regents

A. Approval of Honorary Doctoral Degree Recipient (added)

Chancellor Joan Wadlow, University of Alaska Fairbanks, asked that the Board of Regents consider the approval of an honorary degree outside the normal time frame given special circumstances regarding the nominee.

Regent Thompson moved, seconded by Regent Stitham, and passed unanimously that:

PASSED

"The Board of Regents approves the nominee for an honorary doctoral degree, and authorizes Chancellor Joan Wadlow to notify the approved nominee and announce acceptance. This motion is effective October 2, 1992."

B. Revenue Bonds Resolution (moved from 10.e.(3))

On August 21, 1992, the Board of Regents authorized the sale of revenue bonds. The bond sale is scheduled for October 21, 1992. The administration has been working with the university's financial advisor (Public Financial Management), the underwriter (John Nuveen & Co.), and bond counsel (Wohlforth, Argetsinger, Johnson & Brecht) to clarify financing issues to prepare an official statement and to finalize the bond documents.

Associate Vice President Lynch indicated at the August 1992 meeting that the Board would be provided a status report on the progress of the sale and any new projects recommended for funding, and provide an opportunity to approve or reject the projects. The following formal bond resolution was presented for Board approval.

UNIVERSITY OF ALASKA BOARD OF REGENTS

RESOLUTION OF THE BOARD OF REGENTS OF THE UNIVERSITY OF ALASKA AUTHORIZING THE ISSUANCE AND SALE OF NOT TO EXCEED $11,000,000 PRINCIPAL AMOUNT OF UNIVERSITY OF ALASKA GENERAL REVENUE BONDS, 1992 SERIES C NOT TO EXCEED $7,000,000 PRINCIPAL AMOUNT OF UNIVERSITY OF ALASKA GENERAL REVENUE BONDS, 1992 SERIES D; AND NOT TO EXCEED $7,000,000 PRINCIPAL AMOUNT OF UNIVERSITY OF ALASKA GENERAL REVENUE BONDS, 1992 SERIES E; AUTHORIZING THE EXECUTION AND DELIVERY OF SUPPLEMENTAL INDENTURES AND OTHER NECESSARY FINANCING DOCUMENTS FOR THE BONDS; AND AUTHORIZING AND APPROVING RELATED MATTERS.

WHEREAS, the University of Alaska (the "University") is authorized pursuant to Alaska Statutes Chapter 14.40, as amended (the "ACT") to issue revenue bonds to pay the cost of acquiring, constructing, or equipping one or more facilities that the Board of Regents of the University determines is necessary; and

WHEREAS, the University has determined to issue not to exceed $11,000,000 University of Alaska General Revenue Bonds, 1992 Series C (The "Series C Bonds"), and not to exceed $7,000,000 Principal Amount of University of Alaska General Revenue Bonds 1992 Series D (the "Series D Bonds") and not to exceed $7,000,000 Principal Amount of University of Alaska General Revenue Bonds, 1992 Series E (the "Series E Bonds") as hereinafter described (collectively the "Bonds") for the purpose of paying the cost of acquiring, constructing, or equipping the facilities described in Exhibit A hereto (the "Projects"); and

WHEREAS, the Bonds will be issued under and pursuant to and are being secured by a Trust Indenture dated as of June 1, 1992 (the "Indenture"), heretofore authorized by resolution of the Board on April 24, 1992, and Supplemental Indentures to be dated as of October 15, 1992 (the "Supplemental Indentures"), which respectively shall be in substantially the forms presented to and made part of the records of this meeting; and

WHEREAS, provisions have been made for the sale of the Bonds to John Nuveen & Co. Incorporated (the "Underwriter") at the same time or at different times pursuant to one or more Bond Purchase Agreements to be negotiated between the Underwriter and the University; and

WHEREAS, other financing documents will be necessary to the sale, issuance, and delivery of the Bonds.

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF REGENTS OF THE UNIVERSITY OF ALASKA AS FOLLOWS:

Section 1. The issuance of the General Revenue Bonds, 1992 Series C in the aggregate principal amount of not to exceed $11,000,000, the issuance of General Revenue Bonds, 1992 Series D in the aggregate principal amount of not to exceed $7,000,000, and the issuance of General Revenue Bonds, 1992 Series E in the aggregate principal amount of not to exceed $7,000,000 be, and the same hereby are, in all respects authorized, approved, and confirmed.

Section 2. The Series C Bonds shall be dated as of October 15, 1992 and shall mature on or have sinking fund installments the years 1993 through 2007 in a principal amount in each such year not exceeding $1,100,000. All but $2,550,000 principal amount of the Series C Bonds (accounting for a maturity or sinking fund installment fund installment not to exceed $350,000 in any year) are issued to refinance other bonds issued by or on behalf of the University.

The Series D Bonds shall be dated as of October 15, 1992 or such other date not earlier than 30 days before delivery thereof as may be fixed by the officers hereafter mentioned and shall mature or have sinking fund installments due in years 1993 through 2012 in a principal amount in each such year not exceeding $700,000.

The Series E Bonds shall be dated as of October 15, 1992 or such other date not earlier than 30 days before delivery thereof as may be fixed by the officers hereafter mentioned and shall mature or have sinking fund installments due in years 1993 through 2017 in a principal amount in each year not exceeding $700,000.

The exact principal amounts of each maturity or the exact amount of each sinking fund installment of the Bonds, and the interest rates on the Bonds, shall be fixed and determined by the President, the Vice President for Finance, or the Associate Vice President for Finance at the time of execution of the Bond Purchase Agreements pursuant to Section 4 hereof.

Section 3. The President, the Vice President for Finance, and the Associate Vice President for Finance of the University be, and each of them hereby is, authorized, empowered, and directed to approve on behalf of the University the final form of the Supplemental Indentures in the respective forms presented to and made part of the records of this meeting, but with such changes, modifications, additions, and deletions therein as shall to them seem necessary, desirable, or appropriate, the execution thereof to constitute conclusive evidence of their approval of any and all changes, modifications, additions, or deletions from the outlines of said documents, and after the execution and delivery of the Supplemental Indentures, each of the President, the Vice President for Finance, and the Associate Vice President for Finance of the University is hereby authorized, empowered, and directed to do all such acts and things and to execute all such documents as may be necessary or convenient to carry out and comply with the provisions of said documents as executed.

Section 4. The President, the Vice President for Finance, and the Associate Vice President for Finance of the University each is hereby authorized to execute one or more Bond Purchase Agreements on behalf of the University providing for the sale of the Series C Bonds, the Series D Bonds and/or the Series E Bonds at one time or at different times to the Underwriter, provided that the true interest cost on the Series C Bonds, the Series D Bonds, and the Series E Bonds expressed as a percentage shall not exceed 8.0 percent per annum. The Bonds shall otherwise be sold as provided for in said Bond Purchase Agreement[s].

Section 5. The President, the Vice President for Finance, and the Associate Vice President for Finance of the University each is hereby authorized to execute the Preliminary Official Statement for the Bonds, and, on behalf of the University, to deem the Preliminary Official Statement "final" as of its date for purposes of Security and Exchange Commission Rule 15c2-12(b)(1). Each of the President, the Vice President for Finance, and the Associate Vice President for Finance of the University be, and each of them hereby is, authorized, empowered, and directed to approve and execute the final form of the Official Statement for the Bonds, with such changes from the form of the Preliminary Official Statement as the President, the Vice President for Finance, or the Associate Vice President for Finance of the University considers necessary or appropriate to fully disclose to purchasers of the Bonds all pertinent information relating thereto. The distribution of the Preliminary Official Statement and the Official Statement, as approved by the President, the Vice President for Finance, or the Associate Vice President for Finance, in connection with the offering of the Bonds is hereby ratified, confirmed, and approved.

Section 6. Each of the President, the Vice President for Finance, and the Associate Vice President for Finance of the University is authorized to accept on behalf of the University a commitment to provide one or more letters of credit or policies of municipal bond insurance for a portion or all of the Bonds upon determining that, treating the fees or premiums for such letters of credit or policies of municipal bond insurance as additional interest on the Bonds, the letters of credit, or policies of municipal bond insurance would reduce the Bonds' true interest cost.

Section 7. Each of the President, the Vice President for Finance, and the Associate Vice President for Finance of the University is hereby authorized to have the Bonds prepared and to execute and authorize the delivery of the Bonds to the purchasers thereof upon receipt of the purchase price therefore plus accrued interest, if any, and to do and perform all acts and things and execute any and all documents in the name of the University necessary, useful, or convenient to the issuance and sale of the Bonds by the University.

Section 8. This Resolution will take effect immediately.

EXHIBIT A

Project Components 1992 Series C Bonds

Issue 1. Principal Amount - $2,550,000 - Project component is purchase of seven additional units of the 20-Unit Templewood Condominium Complex for student housing purposes and acquisition of adjacent lots in order to connect the condominium complex with the Anchorage Student Housing Complex, telephone system improvements consisting of purchase and installation of telephone lines and equipment to extend service to student residence halls on the Fairbanks campus, and acquisition and renovation of University Park School.

Issue II. Principal Amount - $4,050,000 - Project component is refinancing of the Housing System Revenue Bonds--the University will defease all of its Housing System Revenue Bonds in accordance with the terms of the respective resolutions authorizing the same. This represents acquisition of the Housing System free of debt.

Issue III. Principal Amount - $3,445,000 - Project component is refinancing of University of Alaska Heating Corporation Bonds, 1978 Series--the proceeds of the Issue III Bonds will be expended to redeem, under the terms of the Supplemental Indenture of the University of Alaska Heating Corporation authorizing the Bonds, the entire 1978 Series, as of February 15, 1993. This is an initial step to acquisition of the Heating System free of debt.

Project - 1992 Series D Bonds

Principal Amount - $7,000,000 - Project is land and building acquisition on property adjacent to or near Anchorage campus.

Project - 1992 Series E Bonds

Principal Amount $7,000,000 - Project is acquisition, renovation, and furnishing of the Tudor Centre - First Interstate Building near the Anchorage campus.

Regent Henri moved, seconded by Regent Kelly, and passed unanimously that:

PASSED

"The Board of Regents approves and adopts the bond resolution as presented. This motion is effective October 2, 1992."

C. White River Timber Property (added)

Vice President Brian Rogers reported on progress being made on the sale of White River timber and recommended the following action take place.

Regent Henri moved, seconded by Regent Forrer, and passed unanimously that:

PASSED

"The Board of Regents authorizes the sale of the University's interest in the White River timber together with the sale of rights of first refusal to purchase at fair market value other University timber along the Icy Bay road network. In order to preserve existing permits and infrastructure at Icy Bay, the administration may negotiate a sale directly with Wasser and Winters Co., subject to public notice with an opportunity for other firms to present alternative proposals. The administration is authorized to conclude negotiations and execute necessary documents. This motion is effective October 2, 1992."

D. Fish & Game and Lab Building Developments in Anchorage (added)

Vice President Brian Rogers reported on discussions between the University of Alaska and the Alaska Department of Fish and Game, and recommended that the following action be approved.

Regent Henri moved, seconded by Regent Forrer, and passed unanimously that:

PASSED

"The Board of Regents authorizes the administration to negotiate an agreement to construct an office and lab building in Anchorage for use by the state Department of Fish and Game, and authorizes President Komisar and Vice President Rogers to execute any and all documents necessary to complete the transaction. This motion is effective October 2, 1992."

E. Fairbanks North Star Borough and Fairbanks North Star Borough School District Property (added)

Vice President Brian Rogers and UAF Vice Chancellor Michael Rice reported on the need for additional space at the University of Alaska Fairbanks to fulfill contractual obligations, and of the possibility of acquiring the Old University Park Elementary School from the Fairbanks North Star Borough and Fairbanks North Star Borough School District. This building currently sits on University of Alaska property. Vice Chancellor Rice also reported on the possible occupants and necessary renovations should action be taken to purchase the building.

Regent Henri moved, seconded by Regent Kelly, and passed unanimously that:

PASSED

"The Board of Regents authorizes the administration to negotiate an agreement with Fairbanks North Star Borough and Fairbanks North Star Borough School District for return of 13.1 acres of leased land and existing improvements and authorizes President Komisar and Vice President Rogers to execute any and all documents necessary to complete the transaction. This motion is effective October 2, 1992."

F. Alaska Pacific University Property (added)

Vice President Brian Rogers and UAA Vice Chancellor Stan Vaughn reported on the need for addition space on the University of Alaska Anchorage, and of the possibility of acquiring the from Alaska Pacific University two buildings, one of which is currently being rented by the University of Alaska. Vice Chancellor Vaughn also reported on the possible occupants and necessary renovations should action be taken to purchase the buildings.

Regent Henri moved, seconded by Regent L. Williams, and passed unanimously that:

PASSED

"The Board of Regents authorizes the administration to negotiate a purchase agreement with Alaska Pacific University for land and buildings, provided, however, the President of the Board and Chair, Finance, Facilities and Land Management Committee shall approve the final terms and conditions thereof. The Board of Regents further authorizes President Komisar and Vice President Rogers to execute any and all documents necessary to complete the transaction, including, but not limited to the execution of a non-recourse deed of trust. This motion is effective October 2, 1992."

15. Adjourn

Board President Williams adjourned the meeting at 3:53 p.m.

* * * * *

Per University of Alaska Board of Regents' Policy 01.02.01, "the minutes of Board meetings shall reflect only the statement of problem, recommendations, actions taken by the Board, and recording of the vote." The Office of Regents' Affairs maintains a file of all reference material. If information is needed, please contact the Office of Regents' Affairs at (907) 474-7908.