09-26-97minutes

Board of Regents

OFFICAL MINUTES

Meeting of the

University of Alaska Board of Regents

September 26, 1997

Fairbanks, Alaska

OFFICIAL MINUTES

Regents Present:
Michael P. Kelly, President
R. Danforth Ogg, Vice President
Mary Jane Fate, Secretary
Chancy Croft, Treasurer
Michael J. Burns
Elsa Froehlich Demeksa
Sharon D. Gagnon
Joseph R. Henri
Annette M. Nelson-Wright
Joe J. Thomas

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

Regents Absent:
Lew M. Williams, Jr.

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
David Creamer, Vice President for Finance and Planning
James A. Parrish, General Counsel
Wendy Redman, Vice President for University Relations
Patty Kastelic, Executive Director for Human Resources
‘Nanne Myers, Assistant Vice President for Academic Affairs
Roberta Morgan, Associate Provost, University of Alaska Anchorage
John P. Keating, Provost, University of Alaska Fairbanks
Roberta Stell, Vice Chancellor, University of Alaska Southeast
Jim Lynch, Associate Vice President for Finance
Marylou Burton, Director of Statewide Budget Development
Jim Johnsen, Director, Statewide Labor Relations
Robert Miller, Director of Public Affairs
J. Mark Neumayr, Associate General Counsel
Jeannie D. Phillips, Board of Regents' Officer
Dawn Hunziker, Board of Regents' Coordinator

I. Call to Order

The meeting was called to order by President Kelly at 8:20 a.m. on Friday, September 26, 1997.

II. Adoption of Agenda

The agenda was adopted as amended with no objections:

PASSED AS AMENDED (* indicates revisions)

"The Board of Regents adopts the agenda as presented.

I. Call to Order
II. Adoption of Agenda
III. Approval of Minutes
IV. Public Comments
V. Employee Organization Reports

A. System Governance
B. Collective Bargaining Units

VI. Chancellors' Status Reports
VII. UA System Administration Status Reports
VIII. Executive Session
IX. Approval of Honorary Degrees and Meritorious Service Award Recipients
X. Approval of Academic Year 1996-97 Degree Recipients
XI.A. Approval of Resolution of Appreciation for Joe L. Hayes, Jr.
XI.B. Approval of Resolution of Appreciation for Sharon D. Gagnon
XI.C. Approval of Resolution of Appreciation for Members of the University of Alaska Technology Development Corporation Board of Directors
XII. Consent Agenda:

A. Academic and Student Affairs Committee

1. Approval of Formation of an International Arctic Research Center at the University of Alaska Fairbanks

B. Finance, Facilities and Land Management Committee

1. Approval of Policy 05.07.01 - Land-Grant Endowment
2. Approval of the Annual Budget Allocations from the Natural Resources Fund
3. Approval of the University of Alaska Fairbanks Coal-Water Project
*4. Approval of University of Alaska Museum 2002 Expansion Project (removed)
5. Approval of Schematic Design for the University of Alaska Anchorage Backbone and Connectivity Project

C. Committee of the Whole

*1. Approval of FY99 General Fund Operating and Capital Budget Requests (removed)
2. Consideration of FY99 Tuition Rates

XIII. New Business and Committee Reports

A. Academic and Student Affairs Committee
B. Ad Hoc Committee on UA Schools of Education
C. Audit Committee
D. Finance, Facilities and Land Management Committee

*1. Approval of University of Alaska Museum 2002 Expansion Project (moved from Consent Agenda)
*2. Approval of Resolution Regarding the Alaska Low-Rank Coal-Water Fuel Project (added)

E. Human Resources Committee

*1. Report Regarding Retirement Incentive Program (added)

F. Labor Relations Committee
G. Nominating Committee
H. Planning and Development Committee
I. Committee of the Whole

*1. Approval of FY99 General Fund Operating and Budget Request (moved from Consent Agenda)
*2. Approval of FY99 General Fund Capital Budget Request (moved from Consent Agenda)

XIV. Future Agenda Items
XV. Alaska Commission on Postsecondary Education Report
XVI. Presidents' and Board of Regents' Comments
XVII. Adjourn

This motion is effective September 26, 1997."

III. Approval of Minutes

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

PASSED AS AMENDED

"The Board of Regents approves the minutes of its August 15, 1997 meeting as amended. This motion is effective September 26, 1997."

IV. Public Comments

The following students from the University of Alaska Fairbanks spoke to the board regarding concerns about out-of-state tuition costs for foreign students: Marion Kahnert, Gregory Roby, Karen Remick, Yumiko Uchiro, Anna Danell, Guofinna Adalgeirsdottir, and Ramona Repaczki.

The following members of the Graduate Student Organization of the University of Alaska Fairbanks discussed their concerns regarding budget cuts, student fees and ability to communicate with administration: Karen Remick, Andrea Freilag, Rob Fatland, Martin Truffer, Laura Peticolas, Liliana Cirstea, Thomas Immel, Mike Simpkins, Ramey Wood, and Fred Hall.

Public and university community members who testified in support of the Brooks Building and the School of Mineral Engineering Program included Dr. Earl Beistline, Dennis Schlotfeldt, Roger Burgraff, and Clark Milne.

Public and university community members who testified with concerns regarding reduced funding for the university included Joe Usibelli, Art Buswell, Dennis Schlotfeldt, Rich Hughes, Rhonda Curwen-Boyles, John Bolles, Debby Tilsworth, and Professors Terrence Cole, Daniel Hawkins and Carol Gold.

Faculty members who testified with concerns regarding the negotiations between the University of Alaska and the United Academics bargaining unit included Tara McGinnis and Cindy Hardy.

Ruth Lister, director of the Tanana Valley Campus reported on the progress made in the certificate of applied business and health.

Ted Fathauer, member of the UAF Board of Visitors and UA Foundation, thanked the board for their support of UA Museum and the IARC.

Brian Brundin, past regent, and Pete Nelson, both members of the World Trade Center board, spoke about the World Trade Center and encouraged the board to finalize the contract with WTC.

V. Employee Organization Reports

A. System Governance: Faculty Alliance, Staff Alliance and Coalition of Student Leaders

John Craven, president of the Faculty Alliance, reported to the board regarding issues being discussed by the Alliance including a common grade policy, definition of academic course levels, a UALC request related to issues for promotion and tenure review, faculty development, student policies, common course numbers, the upcoming President's retreat, the ad hoc committee on RIP impact, and review of the special committee reports.

Marie Scholle, chair of the System Governance Council, expressed the concerns of the council regarding the ability to participate effectively in the discussions regarding short and long-term planning.

The following members of the Coalition of Student Leaders addressed the board regarding issues including lack of qualified faculty members due to RIP, legislative strategies, technology fee developments and concerns regarding the Education degree programs at the University of Alaska: Stephen Nuss, ASUAF; Rosie Gilbert, USUAS; Mary Stastenko, Northwest; Heidi Jones, Kuskokwim; Grace Wilson-Laudun, Mat-Su; and Melissa Nell, USUAS.

B.

Collective Bargaining Units: ACCFT, CEA, United Academics

Dave Dau, president of ACCFT, spoke of concerns regarding the reduction in number of ACCFT employees.

Larry Weiss, president of United Academics, thanked the board for its commitment to public service.

John French, vice president of United Academics, urged the board to continue opening communication lines with the faculty and spoke of his concerns of perceptions regarding faculty productivity.

Cotten Rozell, president of CEA, urged the board to use the employees in the trade fields to assist on issues concerning facilities and grounds; and spoke of concerns of CEA members regarding the RIP program, employer training and outsourcing.

VI. Chancellors' Status Reports

Due to lack of time, the chancellors were unable to give oral reports. Written reports were included in the bound agenda.

VII. UA System Administration Status Reports

Due to lack of time, no system administration reports were given.

VIII. Executive Session

Regent Thomas moved, seconded by Regent Ogg, and passed unanimously that:

PASSED

"The Board of Regents goes into executive session at 12:30 p.m. A.D.T. in accordance with the provisions of AS 44.62.310 to discuss matters relating to litigation, collective bargaining and land acquisition, these topics being subjects the immediate knowledge of which would have an adverse effect on the finances of the university; and honorary degrees and meritorious service award recipients, this topic being a subject which might tend to prejudice the character of a person or persons. The session will include members of the Board of Regents, President Komisar, General Counsel Parrish, and such other university staff members as the president may designate and will last approximately 2 hours. Thus, the open session of the Board will resume in this room at approximately 2:30 p.m. A.D.T. This motion is effective September 26, 1997."

Regent Fate announced that the Board of Regents just concluded an executive session at 3:30 p.m. A.D.T. in accordance with AS 44.62.310 discussing matters relating to litigation, collective bargaining and land acquisition, these topics being subjects the immediate knowledge of which would have an adverse effect on the finances of the university; and honorary degrees and meritorious service award recipients, this topic being a subject which might tend to prejudice the character of a person or persons. The session included members of the Board of Regents, President Komisar, General Counsel Parrish and other university staff members designated by the president and lasted approximately three hours and ten minutes.

IX. Approval of Honorary Degree and Meritorious Service Award Recipients

Recommendations submitted by the University of Alaska Anchorage, University of Alaska Fairbanks, and University of Alaska Southeast for recipients of honorary degrees and meritorious service awards were reviewed by the Board of Regents during the executive session.

Regent Fate requested that a friendly amendment be made to the motion to add "and 1999" after "1998." This would allow approval of the 1999 commencement speaker at the University of Alaska Fairbanks to be approved at this meeting.

Regent Fate moved, seconded by Regent Nelson-Wright and passed unanimously that:

PASSED AS AMENDED

"The Board of Regents approves the list of nominees for honorary doctoral degrees and meritorious service awards, as proposed, for commencement exercises in the spring of 1998 and 1999, and authorizes Chancellors Gorsuch, Lind and Wadlow to invite the approved nominees and announce their acceptance. This motion is effective September 26, 1997."

X. Approval of Academic Degree Recipients

Regents' Policy 10.03.01 requires annual approval by the Board of Regents of degree and other formal awards conferred in the preceding academic year.

Regent Burns moved, seconded by Regent Thomas, and passed unanimously that:

PASSED

"The Board of Regents approves the list of degree recipients for the summer and fall of 1996 and the spring of 1997. This motion is effective September 26, 1997."

XI. Approval of Resolution of Appreciation for Joe L. Hayes, Jr.

WHEREAS, Joe L. Hayes, Jr. was born in Manhattan, New York, the third of ten children to Brenda Ann Lee, a nurse assistant; and

WHEREAS, Joe L. Hayes, Jr. attended Baltimore Polytechnic Institute, graduating in 1988; and

WHEREAS, Joe L. Hayes, Jr. served in the United States Air Force in active duty from 1989 to 1992 and inactive duty from 1992 to 1996, whereupon he received his honorable discharge at the rank of E-4 Sergeant; and

WHEREAS, Joe L. Hayes, Jr., during his service in the United States military, received the Good Conduct Medal in 1991 and an Air Force Commendation in 1992; and

WHEREAS, Joe L. Hayes, Jr., after leaving active duty, enrolled at the University of Alaska Fairbanks as a political science major; and

WHEREAS, Joe L. Hayes, Jr., distinguished himself as a UAF student, serving on the SunStar Publications Board, KSUA Media Board, UAF Budget Council, UAF Governance Coordinating Committee, Faculty Senate Core Review and Curricular Affairs Committee and Residence Hall Association; and

WHEREAS, Joe L. Hayes, Jr. was recognized by the UAF student body as a committed leader, demonstrated by his election to the office of ASUAF senator, receiving the ASUAF Senator of the Year award in 1994; and as ASUAF President, serving for two terms as the first African-American student body president in UAF's history; and

WHEREAS, Joe L. Hayes, Jr., while actively involved in student activities, also demonstrated an exemplary academic record, as evidenced by his standing on the 1994 Dean's List; his receipt of the 1995 Blue and Gold Award; his induction in 1997 to the National Political Science Honor Society; his selection as the Joel Wiegert Award for Outstanding Graduating Male in 1997; and culminating in the conferment of a Bachelor of Arts degree in Political Science from the University of Alaska Fairbanks in 1997; and

WHEREAS, Joe L. Hayes, Jr. was elected by his peers at the University of Alaska Fairbanks to the University of Alaska Board of Regents in 1994 and was appointed by Governor Tony Knowles to the Board of Regents in 1995, serving as the first African-American ever appointed to the Board of Regents; and

WHEREAS, Joe L. Hayes, Jr., while serving on the Board of Regents, demonstrated his commitment to the diverse needs of the University of Alaska System, serving on the Academic & Student Affairs, Human Resources, and Audit Committees; and

WHEREAS, Joe L. Hayes, Jr., further distinguished himself as a tireless advocate for the student body of the University of Alaska system as its student regent, serving as the official spokesperson for the Coalition of Student Leaders and ensuring that issues of concern to the students were given the foremost priority and importance, always contributing to those issues in a thoughtful, insightful and persuasive manner; and

WHEREAS, Joe L. Hayes, Jr., by setting objectives for his life in early adulthood and then following through on those objectives, serves as an example to all students that determination and commitment can result in the attainment of life- long goals; and

WHEREAS, Joe L. Hayes, Jr. is now demonstrating his commitment to the betterment of the citizens of the state of Alaska by serving as an assistant to a member of the Alaska House of Representatives, furthering his near-term goal of acceptance to the George Washington University School of Political Management; and

WHEREAS, the Board of Regents serves notice of its belief that Joe L. Hayes, Jr.'s life-long ambition to become a United States Senator in the next twenty years will be attained and commends him for aspiring to this goal;

NOW, THEREFORE, BE IT RESOLVED that the Board of Regents recognizes the dedicated service of Joe L. Hayes, Jr., and extends to him this official statement of appreciation for his contributions to the University of Alaska and the advancement of higher education in Alaska; and

BE IT FURTHER RESOLVED that this resolution be appropriately engrossed and conveyed to Joe L. Hayes, Jr. with a copy incorporated in the official minutes of the September 26, 1997 meeting of the University of Alaska Board of Regents.

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

PASSED

"The Board of Regents approves the resolution of appreciation for Joe L. Hayes, Jr. This motion is effective September 26, 1997."

XI.B. Approval of Resolution of Appreciation for Sharon D. Gagnon

WHEREAS, the Alaska Aerospace Development Corporation was founded by the state of Alaska with the goal of advancing Alaska's position in the expanding space industry; and

WHEREAS, the University of Alaska was instrumental in the formation of policy for the Alaska Aerospace Development Corporation with Dr. Jerome Komisar, President of the University of Alaska System, serving as the chair, and Dr. Sharon D. Gagnon, serving as a member of the AADC Board of Directors, since its inception; and

WHEREAS, within its first five years, the AADC has evolved from a concept of promoting space launch facilities in Alaska to construction of the Kodiak Launch Complex, and to selection of Poker Flat Research Range by Los Alamos Laboratories as the site for two new satellite ground stations; and

WHEREAS, the ability of the AADC to have made such remarkable progress in a very short time span is a direct result of the concerted efforts and expertise of the members of the AADC Board of Directors and its staff; and

WHEREAS, the Alaska State Legislature passed legislation in 1997 eliminating the designated Board of Regents seat on the AADC Board of Directors;

NOW THEREFORE BE IT RESOLVED that the Board of Regents thanks Regent Sharon D. Gagnon for her pioneering contributions on behalf of the Board of Regents during her tenure on the AADC Board of Directors; and

BE IT FURTHER RESOLVED that this resolution of appreciation be appropriately engrossed and conveyed to Dr. Sharon D. Gagnon and Governor Tony Knowles with a copy incorporated in the official minutes of the September 26, 1997 meeting of the University of Alaska Board of Regents.

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

PASSED

"The Board of Regents approves the resolution of appreciation for Sharon D. Gagnon. This motion is effective September 26, 1997."

XI.C. Approval of Resolution of Appreciation for Members of the University of Alaska Technology Development Corporation Board of Directors

The Board of Regents approved the following resolution with direction to the Board of Regents' Officer to individualize the resolution for each member of the UATDC Board of Directors. The resolution below is a generic version.

WHEREAS, the University of Alaska Technology Development Corporation (UATDC) was incorporated in 1994 in response to the need for the University of Alaska to assist its faculty and staff in the conveyance of new technologies to the commercial sector to maximize utilization of intellectual property for the greatest public benefit; and

WHEREAS, the Board of Directors of UATDC consists of respected Alaska businessmen and women who are dedicated to the promotion of technology transfer, especially through the encouragement of University of Alaska faculty and staff in identifying applications for research; and

WHEREAS, the Board of Directors of UATDC, with limited resources, faced a formidable task in building a base to support technology transfer; and

WHEREAS, it was the decision of the Board of Directors of UATDC in August 1997 to dissolve the corporation, and return responsibility for technology transfer to the University of Alaska administration;

NOW THEREFORE BE IT RESOLVED that the Board of Regents expresses its sincere appreciation to the UATDC Board of Directors for its commitment to the promotion of technology transfer for University of Alaska faculty and staff; and

BE IT FURTHER RESOLVED that this resolution of appreciation be appropriately engrossed and conveyed to the members of the Board of Directors of the University of Alaska Technology Development Corporation with a copy incorporated in the official minutes of the September 26, 1997 meeting of the University of Alaska Board of Regents.

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

PASSED

"The Board of Regents approves the resolution of appreciation for members of the University of Alaska Technology Development Corporation Board of Directors. This motion is effective September 26, 1997."

XII. Consent Agenda

A. Academic and Student Affairs Committee

1. Approval of Formation of an International Arctic Research Center at the University of Alaska Fairbanks

MOTION

"The Academic and Student Affairs Committee recommends that the Board of Regents approve the formation of an International Arctic Research Center at the University of Alaska Fairbanks. This motion is effective September 25, 1997."

Regent Gagnon moved, seconded by Regent Nelson-Wright, and passed unanimously that:

PASSED

"The Board of Regents approves the recommendation of the Academic and Student Affairs Committee as stated above. This motion is effective September 26, 1997."

B. Finance, Facilities and Land Management Committee

1. Approval of Policy 05.07.01 - Land-Grant Endowment: Reference 5A & B

MOTION

"The Finance, Facilities and Land Management Committee recommends that the Board of Regents adopt the revisions to Regents' Policy 05.07.01 - Land-Grant Endowment as presented in Reference 5B. This motion is effective September 25, 1997."

2. Approval of the Annual Budget Allocations from the Natural Resources Fund: Reference 6

MOTION

"The Finance, Facilities, and Land Management Committee recommends the approval by the Board of Regents of the priorities and allocation categories for award of the Natural Resources Funds as presented and requests that the list of projects related to natural resources be brought to the Board of Regents for approval at its February 1998 meeting. This motion is effective September 25, 1997."

3. Approval of the University of Alaska Fairbanks Coal- Water Project: Reference 7

MOTION

"As required by Regents' Policy 05.12.04, the Finance, Facilities and Land Management Committee recommends that the Board of Regents authorize the university administration to:

1. contract with Arthur D. Little for a demonstration site for a $47.6 million clean coal project and to proceed with Phases II and III of the project- construction of the facility and the demonstration; and

2. increase the sale of general revenue bonds for the University of Alaska Fairbanks Coal-Water Project by $1.0 million from $3.5 million to $4.5 million, plus the cost of issuance. The authorizations are subject to Alaska Science and Technology Foundation approval of a $3.8 million grant.

This motion is effective September 25, 1997."

4. Approval of the University of Alaska Museum 2002 Expansion Project: Reference 8

Removed from Consent Agenda and moved to Item XII.D.1.

5. Approval of Schematic Design for the University of Alaska Anchorage Backbone & Connectivity Project: Reference 9

MOTION

"As required by Regents' Policy P05.12.04(B), the Finance, Facilities, and Land Management Committee recommends that the Board of Regents approve the schematic design for the University of Alaska Anchorage Fiber Optic Backbone and Connectivity Project as presented and authorize the university administration to bid award contracts for the project up to $1.4 million. This motion is effective September 25, 1997."

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

PASSED AS AMENDED

"The Board of Regents approves recommendations 1, 2, 3 and 5 of the Finance, Facilities and Land Management Committee as stated above. This motion is effective September 26, 1997."

C. Committee of the Whole

1. Approval of FY99 General Fund Operating & Capital Budget Requests: Reference 4

Removed from Consent Agenda and moved to Item XII.I.1 and 2.

2. Consideration of FY99 Tuition Rates

MOTION

"The Committee of the Whole recommends that the Board of Regents defer until its November 1997 meeting action for setting tuition rates for the academic year beginning in the summer of 1998, thereby providing additional time for student discussion and testimony as well as time to gather data on FY98 enrollments and national tuition trends. This motion is effective September 25, 1997."

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

PASSED AS AMENDED

"The Board of Regents approves recommendation 2 of the Committee of the Whole as stated above. This motion is effective September 26, 1997."

XIII. New Business and Committee Reports

A. Academic and Student Affairs Committee

Regent Gagnon submitted the following written report:

The Academic and Student Affairs Committee
(September 25, 1997)

-- Was joined by representatives of the Fairbanks North Star Borough School Board and administration to hear the report of the Professional Education Coordinating Committee (PECC).

--Encouraged the PECC in its efforts to create a strong statewide program for teacher and administrator education and asked that the PECC formalize a means by which the Fairbanks School District can receive and comment on accurate information about the activities of the PECC.

-- Encouraged the PECC to present information in a manner that shows clearly what programs will be in place at each MAU and how they will improve teacher and administrator education in the state.

-- Heard and congratulated Professor John Whitehead on the success of the UAF Honors Program.

--Congratulated UAF on the operating structure of the UAF International Arctic Research Center and forwarded the Formation of the IARC to the Full Board for approval.

--Heard the MAU's plans for 1997-1998 to observe University of Alaska Civil Rights Day without losing a day of instruction:

UAA: Add Saturday, January 10
UAF: Add Saturday, February 7
UAS: Shorten exam week by one day

B. Ad Hoc Committee on UA Schools of Education

[See Academic & Student Affairs Committee report.]

C. Audit Committee

Regent Ogg reported that the Audit Committee reviewed recently completed audits and heard a status report on the FY98 annual audit plan. During the Audit Committee, an executive session was held regarding audit matters which lasted approximately 30 minutes. Regent Ogg announced that the Audit Committee would be meeting on November 21 during the regularly scheduled board meeting and that the agenda would include an executive session.

D. Finance, Facilities and Land Management Committee

1. Approval of the University of Alaska Museum 2002 Expansion Project: Reference 8

Regent Henri reported that the Finance, Facilities and Land Management Committee had revised the motion to delete the phrase from the end of the first sentence, "up to a total project cost of $20,000,000." He explained that as project costs are determined, this item would be returned to the board for those approvals.

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

PASSED AS AMENDED

"As required by Regents' Policy 05.12.04, the Board of Regents approves the University of Alaska Museum 2002 Expansion Project as presented and authorizes the university administration to proceed with this project. This motion is effective September 26, 1997."

2. Approval of Resolution Regarding the Alaska Low-Rank Coal-Water Fuel Project (added)

In addition to approving project approval for the Alaska Low-Rank Coal-Water Fuel Project, the Finance, Facilities and Land Management Committee also approved the following resolution, for approval by the full board.

WHEREAS, the U.S. Department of Energy has designated the University of Alaska Fairbanks campus as the preferred site in North America for a Low-Rank Coal-Water Fuel and Coal/Diesel Project which would determine the full scale commercialization costs of these technologies; and

WHEREAS, this project will increase the diversity of Alaska's economic base and enhance its economic prosperity; and

WHEREAS, the project would provide for expanded energy use on the campus beyond current capability and well into the next century; and

WHEREAS, the project would supply coal slurry fuels for protracted testing in both oil-designed boilers and stationary diesel engines; and

WHEREAS, the Low-Rank Coal-Water Fuel and Coal/Diesel facilities will provide an excellent asset for training graduate engineers and performing practical research to promote the use of Alaska's abundant coal resources; and

WHEREAS, successful commercial demonstration could lead to the creation of many jobs in the coal mining, processing and transportation sectors as well as a revenue stream which would repay the State's initial investment and return cash in the form of royalties and taxes to Alaska; and

WHEREAS, this new technology will give the United States and the world a source of reliable, reasonably priced and cleaner power, steam and heat; and

WHEREAS, the "Business Case for Development of an Alaskan Low-Rank Coal-Water Fuel Industry" makes a compelling case for the private sector economic development of the State of Alaska through exploitation of Alaskan coal using coal-water fuel as a major export product; and

WHEREAS, the Alaska Science and Technology Foundation was established by the Legislature as a public corporation with the purposes of the foundation to promote and enhance:

-- "Economic development and technological innovation in Alaska", and
-- "Sustained growth and development of Alaskan scientific and engineering capabilities".

NOW, THEREFORE BE IT RESOLVED that the Board of Regents of the University of Alaska endorses and supports this project and respectfully petitions the Alaska Science and Technology Foundation to approve the $3.8 million grant requested for the Alaska Low-Rank Coal-Water Fuel Project; and

BE IT FURTHER RESOLVED that this resolution be appropriately engrossed and conveyed to the Alaska Science and Technology Foundation with a copy incorporated in the official minutes of the September 26, 1997 meeting of the University of Alaska Board of Regents.

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

PASSED

"The Board of Regents approves the resolution regarding the Alaska Low-Rank Coal-Water Fuel Project to be conveyed to the Alaska Science and Technology Foundation. This motion is effective September 26, 1997."

3. Information Items

In addition to action items, the Finance, Facilities and Land Management Committee also heard reports on insurance placement and the risk management consultant's report; NOAA project; implementation of Banner software; Brooks Building; and capital projects.

E. Human Resources Committee

The Human Resources Committee heard reports regarding labor relations, the 1997-98 retirement incentive program, a possible leave share program replacement, a benefits update, and the annual report on Affirmative Action.

F. Labor Relations Committee

No report was given.

G. Nominating Committee

No report was given.

H. Planning and Development Committee

Regent Gagnon submitted the following written report:

The Planning and Development Committee
(September 24, 1997)

--Heard the preliminary reports of the special committees of Chancellor Wadlow and Chancellor Lind and Provost Jack Keating and a preview of Chancellor Gorsuch's committee.

--Reviewed President Komisar's paper on the role and scope of the university and requested revisions that would make the imperatives as brief and clear as possible, simplify and clarify university assignments and include the community college mission in the role and scope of each MAU.

--Clarified and simplified the working list of five purposes for the university.

--Revised the wording of principles listed as #7 and #8 in the working list of principles, made suggestions for clarity and brevity and added the concept of obtaining revenue to the lists of both principles and priorities.

--Revised wording of priorities listed as #16 and #17 in the working list of priorities, requested that committee members review priorities before the next meeting and recognized that the list of priorities would be impacted by the results of the special committees.

--Discussed the procedure for including the university community and the public in the planning process and asked President Komisar and Chair Gagnon to devise a plan for participation which would include but not be limited to the following:

Special Committees:

A hearing process for the special committee reports which would include the following steps:

1. The Chancellors and Provost to present the reports to the Planning and Development Committee;

2. The Committee to hold a hearing on the report and also to invite written comment from those unable to attend;

3. The Committee to meet and review the report with the benefit of the information gained through the hearing process and to make a recommendation to the Full Board.

White Paper:

Immediate notification to the governance groups to be prepared to begin the review of the White Paper in February 1998.

--The Committee reviewed the proposed schedule for intermediate and long range planning.

I. Committee of the Whole

1. Approval of FY99 General Fund Operating Budget Request

The Board of Regents divided the original motion into 1) operating and 2) capital.

After discussing this item extensively during the afternoon session of the Committee of the Whole on September 25, 1997, the university administration presented a revised operating budget to the committee that evening. The revised budget requests a FY99 general fund request of $166,934.5 and an additional increment request of $6,789.6, bringing the total request to $173,724.1 (in thousands).

Regent Ogg moved, seconded by Regent Gagnon, and passed with Regents Burns, Croft, Demeksa, Fate, Gagnon and Kelly voting in favor and Regents Henri, Nelson- Wright, Ogg and Thomas voting in opposition that:

PASSED AS AMENDED

"The Board of Regents adopts the FY99 general fund operating budget request as presented to the Committee of the Whole on September 25, 1997. This motion is effective September 26, 1997."

Members of the board who voted in opposition noted for the record that their dissenting votes were made because they felt the amount of the request was not large enough.

2. Approval of FY99 General Fund Capital Budget Request

The Board of Regents divided the original motion into 1) operating and 2) capital.

The Board of Regents changed the amount for the UAA Consortium Library for the year 2000 from $36,400.0 to $68,000.0 (in thousands).

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

PASSED AS AMENDED

"The Board of Regents adopts the FY99 general fund capital budget request as presented in Reference 4 and amended by the Committee of the Whole. This motion is effective September 26, 1997."

3. Information Items

In addition to action items, the Committee of the Whole also met with members of the Alaska Legislature on Wednesday, September 24, 1997. Presentations were given on research activities at the University of Alaska and on the role of the extended sites. Approximately 20 legislators were in attendance.

On Thursday, September 25, 1997, the committee heard the annual report from the College of Rural Alaska Advisory Council, and received an update on the status of technology transfer.

XIV. Future Agenda Items

Regent Gagnon announced that there would be a joint meeting of the State Board of Education and the Board of Regents during the November 20-21, 1997 meeting in Anchorage.

Regent Kelly requested that the issue of tuition waivers be placed on a future Human Resources Committee agenda for discussion.

Regent Henri requested that a report be made during the November 1997 board meeting regarding public relations issues.

XV. Report from Alaska Commission on Postsecondary Education Representatives

Regent Demeksa reported that she had attended her first Commission meeting earlier in September.

XVI. Presidents' and Board of Regents' Comments

Regent Burns urged the board to not make just the minimal upgrades needed to bring the Brooks Building into ADA compliance.

Regent Croft reminded the board of the Tanana Valley Flood of 1967 and how residents came to the University of Alaska Fairbanks for safety; he urged board members to remember the critical role the university still plays in the community.

Regent Fate urged the board members to support the federal Senate Bill 660.

XVII. Adjourn

President Kelly adjourned the meeting at 5:25 p.m.