04-20-01minutes

Board of Regents

OFFICIAL MINUTES

Emergency Full Board Meeting

University of Alaska Board of Regents

April 16 and 20, 2001

via audioconference

OFFICIAL MINUTES

Regents Present:
Michael J. Burns, Chair - Anchorage
Elsa Froehlich Demeksa, Vice Chair - Anchorage
Mary Jane Fate, Secretary - Anchorage
Brian D. Rogers, Treasurer - Fairbanks
Chancy Croft - Anchorage
Joshua B. Horst - Juneau
Kevin O. Meyers - Anchorage (4-20-01 only)
R. Danforth Ogg - Anchorage (4-16-01 only)
Frances H. Rose - Anchorage
Joe J. Thomas - Fairbanks
Joseph E. Usibelli, Jr. - Napa, California (4-16-01 only)

Mark R. Hamilton, President and Chief Executive Officer

Others Present:
E. Lee Gorsuch, Chancellor, UAA
Marshall L. Lind, Chancellor, UAF (4-16-01 only)
Joseph Beedle, Vice President for Finance
James A. (Jamo) Parrish, General Counsel
Wendy Redman, Vice President for University Relations
James R. Johnsen, Chief of Staff
Ann Ringstad, Director, Government Relations
Bob Miller, Director, Public Affairs
Pat Pitney, Director, Budget and Institutional Research
Mari Montgomery, Director, Statewide Land Management
John Dickinson, Assistant Vice President for Finance
Cindy Matson, Vice Chancellor for Administrative Services, UAA
Cyndi Spears, Director, Facilities, UAA
Jan Gehler, Dean, Community and Technical College, UAA
Jeannie D. Phillips, Board of Regents' Officer

April 16, 2001

I. Call to Order

Regent Burns called the meeting to order on Monday, April 16, 2001, at 12:10 p.m.

II. Adoption of Agenda

After requesting that item V. be removed from the agenda, Regent Croft moved, seconded by Regent Demeksa, and passed unanimously that:

PASSED AS AMENDED

"The Board of Regents adopts the agenda as presented.

I. Call to Order
II. Adoption of Agenda
III. Authority to Approve a Memorandum of Understanding regarding University-Medical District in Anchorage, Alaska
IV. Executive Session regarding UAA Property
V. Authority to Purchase University Center in Anchorage, Alaska
VI. Adjourn

This motion is effective April 16, 2001."

III. Authority to Approve a Memorandum of Understanding Regarding University-Medical District in Anchorage, Alaska

Background:
Chancellor Gorsuch and Vice President Redman attended a "summit" work session in Juneau on Monday, April 9, 2001, culminating in a verbal understanding among "U-Med District" parties (Municipality of Anchorage, State of Alaska Department of Health and Social Services, Providence Hospital, University of Alaska Anchorage, Mental Health Land Trust (MHT), Representative Eldon Mulder, and Speaker of the House Brian Porter) regarding Alaska Psychiatric Institute (API) replacement funding and land reconfiguration/use. Representative Mulder requested a written assurance, in the form of a memorandum of understanding (MOU), that all U-Med District parties were agreeable to a proposed MHT land reconfiguration and API replacement plan prior to a Tuesday, April 17 appropriation bill introduction to provide the remaining $25 million to complete the API replacement. All parties agreed to the common "Shared Vision" and committed to creating an MOU document to memorialize this commitment.

Agreement Highlights:
At no contemplated cash cost, the University of Alaska creates the short-term potential to expand its land base by a minimum of 10 acres with additional long-term potential to purchase 15 additional acres from MHLT.

"Partnerships" are formed between Providence and API, and Providence and UAA. The Municipality in concert with UAA gains more options for a proposed "Transit Center" on the UAA campus and potential space for the Municipal Health Clinic. UAA gains master plan ability to provide for future campus growth through this arrangement.

Agreement Points:

1. All parties to agreement support building a replacement for API on parcel "C" ("de-coupled" site adjacent/West of existing old API and behind S/E of McLaughlin Youth Center).
2. Providence Hospital negotiates purchase of parcel "A" from MHLT (21 acre parcel located east and wrapping N/W of and including old/existing API with frontage on Providence Drive across from UAA bookstore PEF). Conditioned upon small API frontage respite care center building removal/relocation within 24 months.

3. Providence Hospital trades parcel "A" to University in exchange for 7 acres of parcel "G" (U/A purchase in 1983 from APU, on N/E boundary of Providence Hospital campus, still leaving UAA 7+ acres of corner Bragaw/Providence for future development plus land for further dorm expansion N. of existing commons), and up to 4 acres of parcel "F" (UAA "triangle/stairstep" property bordering creek/greenbelt, behind/South of Providence Hospital, West of commons/housing). Providence needs both to accommodate its expansion plans and to comply with a 30 percent building/land code ratio.

4. UA receives parcel "A" (21 acre existing/old API site) subject to/conditioned upon State obligation to fund and/or demolish, and clean up environmental issues related to the old API building/use. All parties will work to secure federal assistance including potential highway fund source if road access is appropriate to bisect the parcel and improve U-Med access. The proposal is to extend Wright Street through the property and become the new property line separating parcel "C" from "A" connecting Tudor with Providence Drive at Seawolf Drive.

5. The State Department of Health & Social Services retains parcel "C" (40 acres W. of old API) for the benefit of McLaughlin Youth Center, the new API building, and future expansion.

6. The MHLT retains parcel "E" (15 acre parcel W. of McLaughlin, frontage to Lake Otis Parkway) for investment/development purposes, with the university provided an opportunity to participate in competitive offerings to purchase said property for long term university educational purposes.

Many scenarios have been considered over the years and it now appears that we have consensus to reach a final agreement. Support from the University of Alaska will assist the various interests in gaining legislative appropriations to allow for the construction of a new API facility. Providing that sufficient legislative funding is secured for the new API facility, surplus land will be made available for purchase/trade involving UAA and Providence Hospital for expansion.

Regent Croft moved the main motion, seconded by Regent Demeksa:

MOTION

"The Board of Regents approves the memorandum of understanding between the Mental Health Trust Authority, et al, and the University of Alaska regarding property adjacent to the University of Alaska Anchorage campus; and authorizes Vice President Beedle to approve and sign said memorandum of understanding. This motion is effective April 16, 2001."

Amendment #1

Regent Fate moved to amend the main motion to write out all parties rather than using the "et al" in the motion. The amendment passed unanimously.

MOTION w/Amendment #1

"The Board of Regents approves the memorandum of understanding between the Alaska Mental Health Trust Authority, the Alaska Mental Health Trust Land Office, the Alaska Department of Health and Social Services, Providence Alaska Medical Center, and the University of Alaska regarding property adjacent to the University of Alaska Anchorage campus; and authorizes Vice President Beedle to approve and sign said memorandum of understanding. This motion is effective April 16, 2001."

Amendment #2

Regent Croft moved to amend the main motion to include language in the agreement that McLaughlin Youth Center not be renovated, improved, or rebuilt. The amendment failed with Regent Croft voting in favor, and Regents Burns, Demeksa, Fate, Horst, Rogers, Rose, Thomas, and Usibelli voting in opposition.

Amendment #3

Regent Croft moved to amend the main motion to include the following language:

"This agreement shall terminate on July 1, 2002 if state funding is not obtained for the construction of the Alaska Psychiatric Institute facility by June 30, 2002."

The amendment was approved with Regents Burns, Croft, Demeksa, Fate, Horst, and Thomas voting in favor, and Regents Rogers, Rose, and Usibelli voting in opposition.

Main Motion as Amended

The main motion, as amended, was approved unanimously as follows:

PASSED AS AMENDED

IV. Executive Session regarding UAA Property Transactions

Regent Croft moved that the motion to go into executive session be amended to substitute "purchase of University Center Mall in Anchorage, Alaska" for "UAA property transactions." Regent Demeksa seconded, and the motion passed unanimously:

PASSED AS AMENDED

"The Board of Regents goes into executive session at 2:17 p.m. A.D.T. in accordance with provisions of AS 44.62.310 to discuss possible purchase of University Center Mall in Anchorage, Alaska, this topic being a subject the immediate knowledge of which would have an adverse effect on the finances of the university. The session will include members of the Board of Regents, President Hamilton, General Counsel Parrish, and such other university staff members as the president may designate and will last approximately 30 minutes. Thus, the open session of the Board of Regents will resume at approximately 2:45 p.m. A.D.T. This motion is effective April 16, 2001."

The Board of Regents concluded an executive session at 3:30 p.m. A.D.T. in accordance with provisions of AS 44.62.310 to discuss possible purchase of University Center Mall in Anchorage, Alaska, 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 Hamilton, General Counsel Parrish, and such other university staff members as the president may designate and lasted approximately 30 minutes.

Regent Rogers moved, seconded by Regent Demeksa, that the Board of Regents recess its meeting until Friday, April 20, 2001. The motion carried unanimously.

April 20, 2001

Regent Burns called the Emergency Meeting of the Board of Regents back to order at 1:32 p.m. on Friday, April 20, 2001

Regent Fate moved, seconded by Regent Rogers, and passed with Regents Burns, Croft, Demeksa, Fate, Horst, Meyers, Rogers, Rose, and Thomas voting in favor, and Regent Ogg voting in opposition that:

PASSED

"The Board of Regents goes into executive session at 1:34 p.m. A.D.T. in accordance with provisions of AS 44.62.310 to discuss possible purchase of University Center Mall in Anchorage, Alaska, this topic being a subject the immediate knowledge of which would have an adverse effect on the finances of the university. The session will include members of the Board of Regents, President Hamilton, General Counsel Parrish, and such other university staff members as the president may designate and will last approximately one hour. Thus, the open session of the Board of Regents will resume at approximately 2:30 p.m. A.D.T. This motion is effective April 20, 2001."

The Board of Regents concluded an executive session at 3:34 p.m. A.D.T. in accordance with provisions of AS 44.62.310 to discuss possible purchase of University Center Mall in Anchorage, Alaska, 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 Hamilton, General Counsel Parrish, and such other university staff members as the president may designate and lasted approximately two hours.

V. Authority to Purchase University Center in Anchorage, Alaska

Because this item had been removed when the agenda was originally approved on April 16, 2001, a motion was required to add it back to the agenda.

Regent Rogers moved, seconded by Regent Croft, and passed with Regents Burns, Croft, Fate, Horst, Meyers, Ogg, Rogers, and Rose voting in favor, and Regents Demeksa and Thomas voting in opposition that:

PASSED

"The Board of Regents adds to its agenda the item entitled 'Authority to Purchase University Center in Anchorage, Alaska'. This motion is effective April 20, 2001."

Background:
To provide for expansion and improved accessibility for UAA's Community and Technical College and improve availability for campus core instructional, science, research and student space the purchase of the University Center is recommended at an amount not to exceed $8.5 million for purchase and $6.5 minimum for initial renovation.

The purchase offer would be authorized, subject to a minimum $15 million legislative appropriation. This capital appropriation request would not take priority over the approximate $20 million of existing highest priority capital projects requested by the University in the normal budget request process.

1. Approval of Addition to FY02 Capital Budget

The following motion was submitted to the Board of Regents for approval:

MOTION

"The Board of Regents approves an addition to the University of Alaska capital budget request for FY02 in the amount of $25 million for the purchase and partial renovation of the University Center Mall or similar property located in Anchorage, Alaska. This motion is effective April 20, 2001."

Amendment #1

Regent Demeksa moved to amend the main motion to change the amount of $25 million to $15 million. The motion failed with Regents Demeksa, Fate, and Ogg voting in favor, and Regents Burns, Croft, Horst, Meyers, Rogers, Rose, and Thomas voting in opposition.

Amendment #2

Regent Rogers moved to amend the main motion to add the following language. Regent Croft seconded, and the amendment was passed with no opposition.

". . . in addition to the original FY02 capital budget request."

Main Motion as Amended

The main motion as amended passed with Regents Burns, Croft, Fate, Horst, Meyers, Ogg, Rogers, and Rose voting in favor, and Regents Demeksa and Thomas voting in opposition that:

PASSED AS AMENDED

2. Authority to Purchase the University Center Mall in Anchorage, Alaska

The following motion was submitted to the Board of Regents for approval. Regent Rogers moved, seconded by Regent Croft, and passed unanimously that:

PASSED

"The Board of Regents authorizes the University of Alaska administration to negotiate for the purchase of the University Center mall for a price not to exceed $8.5 million, and authorizes President Hamilton or his designee to sign all documents, subject to legislative funding. This motion is effective April 20, 2001."

VI. Adjourn

Regent Burns adjourned the meeting at 3:50 p.m.