01-26-96minutes

Board of Regents

OFFICIAL MINUTES

Special Board of Regents' Meeting
January 26, 1996
University of Alaska Fairbanks
Fairbanks, Alaska

Regents Present:

Sharon D. Gagnon, President

Michael P. Kelly, Vice President

Mary Jane Fate, Secretary (via audioconference)

R. Danforth Ogg, Treasurer

Virginia W. Breeze

Chancy Croft

Eric Forrer (via audioconference)

Joe L. Hayes, Jr.

Joseph R. Henri

Joe J. Thomas

Lew M. Williams, Jr.

Jerome B. Komisar, Executive Officer and

President of the University of Alaska

In Attendance:

E. Lee Gorsuch, Chancellor, University of Alaska Anchorage

Marshall L. Lind, Chancellor, University of Alaska Southeast

Joan K. Wadlow, Chancellor, University of Alaska Fairbanks

Wendy Redman, Vice President for University Relations

J. Mark Neumayr, Interim General Counsel

David Creamer, Vice President for Finance and Planning

Jim Lynch, Associate Vice President for Finance

'Nanne Myers, Assistant Vice President for Academic Affairs

Abe Baggen, Director of Information Services

Gerald V. Neubert, Assistant Vice President and University Architect

Patty Kastelic, Executive Director for Human Resources

Bob Miller, Director of Public Affairs

Marylou Burton, Director of Statewide Budget Development

Stevan DeSoer, Director of Statewide Labor Relations

Carla Kirts, Dean of Students, UAF

Michael Rice, Vice Chancellor for Administration, UAF

Kathleen Schedler, Director, Planning and Project Services, UAF

April E. Crosby, Assistant to the President

Jeannie D. Phillips, Regents' Affairs Officer

Dawn Hunziker, Regents' Affairs Staff

I. Call to Order

The meeting was called to order by President Gagnon at 12:40 p.m. on Friday, January 26, 1996.

II. Adoption of Agenda

Regent Gagnon requested that several items be added to the agenda (indicated with an asterisk *).

Regent Henri moved, seconded by Regent Hayes, and passed with unanimous consent that:

PASSED AS AMENDED

"The Board of Regents adopts the agenda as presented.

I. Call to Order

II. Adoption of Agenda

III. Executive Session

*IV. Report on Meeting of the Joint Board of Regents/Alaska State Board of Education Committee

V. Deferred Maintenance

A. Approval of the University of Alaska Fairbanks Residential Facilities Deferred Maintenance Funding Allocation

B. University of Alaska Fairbanks Wickersham Hall Deferred Maintenance Project - Schematic Approval

C. Proposed Amendment to Regents' Policy 05.12.02

*VI. Legislative Issues Report

*VIa. Executive Session (added at this point in the meeting)

VII. Adjourn

This motion is effective January 26, 1996."

III. Executive Session

Regent Thomas moved, seconded by Regent Hayes, and approved by unanimous consent 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 faculty unionization, 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, Interim General Counsel Neumayr, and such other University staff members as the President may designate and shall last approximately one hour. Thus, the open session of the Board shall resume in this room at approximately 1:45 p.m. A.S.T. This motion is effective January 26, 1996."

Executive Session Summary (To be read after Executive Session)

Regent Breeze announced that the Board of Regents just concluded an executive session in accordance with AS 44.62.310 discussing matters relating to faculty unionization, this topic being a subject 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 Komisar, Interim General Counsel Neumayr and other University staff members designated by the President and lasted approximately one hour and fifteen minutes.

IV. Report on Meeting of the Joint Board of Regents/Alaska State Board of Education Committee

Regent Breeze reported on the meeting of the Joint Board of Regents/Alaska State Board of Education Committee held via videoconference on Wednesday, January 17, 1996. Attending the meeting were Joint Committee Chair Susan Stitham, Marilyn Webb, Virginia Breeze, Eric Forrer, Chancy Croft, Harry Gamble and Jeannie Phillips. The committee formulated the following action agenda and assigned each topic on the agenda to a committee member or staff member:

1. Review history of the Holmes Group/Holmes Partnership (universities with K-12 schools). Obtain current mission statement for group and report on future plans.

2. External Examiner Report on Teacher Education: Review recommendations and request report from deans of UA Schools of Education regarding work being done to meet the recommendations.

3. Teacher/Student Standards: Contact deans of UA Schools of Education to determine the level of recognition regarding these standards and how they relate to both incoming students and outgoing future teachers. Determine how these standards are being integrated into the preparation of teachers.

4. Sharing Facilities: The committee would like to receive an inventory on what facilities in the state of Alaska are being shared or could be shared by school districts and the university; also, what facilities are needed to accommodate programs and services.

5. Rural Educators Preparation Operations Team: the committee requested information regarding this team including its members, mission, goals and objectives, and congruence with BoR/BoE goals .

6. Education of rural and Alaska Native Students: Data was requested regarding Mt. Edgecumbe students and how they compare with rural/bush students in having to take university remedial courses; also requested was the data from the RAHI student tracking project being conducted by the university, and continuing reports from Board of Education work seminar on rural high school graduates .

7. Remedial Education: Susan Stitham posed the question "Is the purpose of a high school education to enable the student to place at the university without the need for remedial courses?" The committee would like to explore this question and its ramifications.

8. AHRIC: A request was made to obtain information regarding this commission formed by Governor Knowles including its membership, mission and goals and objectives.

Joint Committee Chair Susan Stitham requested that the Regents' Affairs Office distribute copies of articles entitled "The Power of External Standards" and "What Students Can Do When External Standards Spur Them On" to each member of the joint committee.

The next meeting of the joint committee is scheduled for 6:00 p.m. on Wednesday, February 28 via videoconference and will include President Komisar and Commissioner Holloway.

V. Deferred Maintenance

The administration presented a status report on issues raised at the December 1995 Finance, Facilities and Land Management Committee meeting. The presentation included a report on the status of the Lathrop Hall and lower dorm renovations, and alternatives for addressing deferred maintenance at Wickersham Hall and the other Fairbanks campus housing facilities, a discussion of the definition of deferred maintenance and the inter-relationship of code compliance and ADA mandated improvements. The administration also discussed procedures proposed or implemented to deal with expenditures in excess of authorized project approval levels.

A. Approval of the University of Alaska Fairbanks Residential Facilities Deferred Maintenance Funding Allocation

Reference 5

For the fiscal year 1996, $22,500,000 was appropriated by the state legislature for deferred maintenance projects involving the University of Alaska's residential facilities. Of this amount, $20,287,200 was allocated to UAF. At that time, the Fairbanks campus identified 14 priority projects for completion with these funds. To date, one project, lower dorms exterior restoration, has been completed, and a second project, Lathrop Hall, is scheduled for completion later this year.

At the request of the Board of Regents, the original cost estimates used in the allocation of the appropriation have been updated and a revised plan and schedule developed for the remaining deferred maintenance projects. Although the initial number of projects is expected to be reduced from 14 to 10, approximately 92 percent of the student housing beds are to be affected by the revised plan (Reference 5).

The January 1996 revised funding plan includes an unallocated amount of approximately $650,000. This amount is to be employed as a contingency fund to be allocated for unforeseen items as may be approved by the Board. All current cost estimates are to be treated as project ceilings unless otherwise authorized by the Board. All unspent funds remaining at the completion of a project will be transferred to the unallocated contingency for the purpose of funding additional residential facility deferred maintenance projects as approved by the Board.

Regent Henri moved, seconded by Regent Williams and passed with unanimous consent that:

PASSED AS AMENDED

"The Board of Regents approves the amended University of Alaska Fairbanks' residential facility deferred maintenance funding allocation as attached. This motion is effective January 26, 1996."

B. University of Alaska Fairbanks Wickersham Hall Deferred Maintenance Project - Schematic Approval Reference 6

Background:

Wickersham Hall was constructed in 1957 at a first cost of approximately $990,000. No significant capital improvements have been made to the facility since it was constructed. The adjusted value, based on first cost, is $4,250,000. The replacement value is estimated to be approximately $5,500,000.

Wickersham Hall houses approximately 95 students on three floors, in single and double occupancy rooms with in-room lavatories and sinks. It currently is an all-women's hall that is centrally located on the lower campus. The facility has a gross area of approximately 23,000 square feet.

Project approval was obtained at the August 18, 1995 meeting. The total project cost at that time was estimated at $2,000,000.

Project Scope:

The revised scope of work for the Wickersham Hall deferred maintenance project includes refinishing walls and ceilings, carpet replacement, removal of built-in furniture and replacement with modular units, a new sprinkler system, new shower partitions and fittings, kitchen and laundry room improvements, mechanical systems replacement, replacement of doors, door frames and hardware, repainting of the exterior and required structural code improvements and ADA access modifications.

Reductions in the scope of work which have occurred since the schematic approval was originally requested in December include:

Replacement of vertical piping to

shower/restroom fixtures $ 73,916

Remodeling of core area restrooms 145,688

Removal of all remaining ACM 115,534

Replacement of electrical system 211,220

Replacement of mechanical system 514,172

Exterior restoration including windows 483,067

2nd & 3rd floor ADA modifications 206,287

Funding:

The Wickersham Hall deferred maintenance project will be fully funded through the fiscal year 1996 deferred maintenance capital appropriation. Funding for the project is not to exceed $2,750,000 as requested in the revised deferred maintenance funding plan. The total construction cost is estimated at $2,200,000.

Schedule:

Design completed April 8, 1996

Award of Construction Contract May 7, 1996

Construction Completed December 13, 1996

Consultant:

Kumin Associates is the design consultant for this project.

Regent Henri moved, seconded by Regent Kelly, and passed with unanimous consent that:

PASSED AS AMENDED

"The Board of Regents approves the University of Alaska Fairbanks' Wickersham Hall deferred maintenance schematic design as revised and authorizes the university administration to bid and award a construction contract within the project allocation of deferred maintenance funds ($2,750,000). This motion is effective January 26, 1996."

C. Proposed Amendment to Regents' Policy 05.12.02

Internal procedures for accounting and budget approval for capital projects have been revised to explicitly prohibit incurring of costs in excess of amounts approved by the Board of Regents during project or schematic design approval. However, due to urgency associated with many of the projects and bid expiration deadlines, valid and reasonable exceptions may require emergency meetings of the Board to adjust the budgets even for relatively minor adjustments.

As such, the administration proposes that the chair of the Finance, Facilities, and Land Management Committee be authorized to approve increases in project budgets, subject to the limitation that for increases in excess of 10 percent, all Board members will be given three days notice of the proposed increase to allow each member time to ask questions or request deferral of the increase until the next regular or emergency meeting.

Proposed addition to Policy 05.12.02, paragraph B:

Total project cost shall not exceed the amount approved by the Board of Regents at the schematic design phase unless authorized in writing. Increases beyond the total project cost approved by the BOR shall be approved by the chair of the Finance, Facilities and Land Management Committee, or his/her designee, provided that for project costs in excess of 10 percent (10%) of the previously authorized amount, a three (3)-day advance notice shall be given to all members of the Board of Regents and any member may require that the increase be placed on the agenda for the next regular or emergency meeting of Board of Regents.

Regent Croft asked that the policy be further revised to replace "10 percent" with "5 percent". The Board of Regents unanimously agreed.

Regent Kelly moved, seconded by Regent Hayes, and passed with unanimous consent that:

PASSED AS AMENDED

"The Board of Regents adopts the amendment to Regents' Policy 05.12.02 as revised. This motion is effective January 26, 1996."

VI. Legislative Issues Report

Wendy Redman, Vice President for University Relations, reported on issues before the legislature this session that impact the University of Alaska including the university budget and allocation of resources, the land bill, the retirement incentive program, UAA housing bill, and the transfer of investment authority. She also reported that Governor Knowles will be meeting with the Board of Regents during the February 1996 Board meeting as will Representative Terry Martin and other members of the House Finance Committee.

*VIa. Executive Session

Regent Ogg moved, seconded by Regent Kelly, and passed with unanimous consent 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 deferred maintenance, this topic being a subject the immediate knowledge of which would have an adverse effect on the finances of the University; and personnel matters, this topic being a matter which might tend to prejudice the reputation of a person or persons. The session shall include members of the Board of Regents, President Komisar, Interim General Counsel Neumayr, and such other University staff members as the President may designate and shall last approximately 30 minutes. Thus, the open session of the Board shall resume in this room at approximately 5:00 p.m. A.S.T. This motion is effective January 26, 1996."

Executive Session Summary (To be read after Executive Session)

Regent Breeze announced that the Board of Regents just concluded an executive session in accordance with AS 44.62.310 discussing matters relating to deferred maintenance, this topic being a subject the immediate knowledge of which would have an adverse effect on the finances of the University; and personnel matters, this topic being a matter which might tend to prejudice the reputation of a person or persons. The session included members of the Board of Regents, President Komisar, Interim General Counsel Neumayr and other University staff members designated by the President and lasted 45 minutes.

VII. Adjourn

President Gagnon adjourned the meeting at 5:15 p.m.