11-09-01minutes

Board of Regents

OFFICIAL MINUTES

Full Board Meeting

University of Alaska Board of Regents

November 9, 2001

Fairbanks, Alaska

OFFICIAL MINUTES

Regents Present:
Michael J. Burns, Chair
Elsa Froehlich Demeksa, Vice Chair
Frances H. Rose, Secretary
Brian D. Rogers, Treasurer
Mark Begich
Chancy Croft
Joe Hardenbrook
Marlene Johnson
Joe J. Thomas
Joseph E. Usibelli, Jr.

Mark R. Hamilton, President and Chief Executive Officer

Regents Absent:
Kevin O. Meyers

Others Present:
E. Lee Gorsuch, Chancellor, UAA
Marshall L. Lind, Chancellor, UAF
John Pugh, Chancellor, UAS
Joseph M. Beedle, Vice President for Finance
James A. Parrish, General Counsel
Wendy Redman, Vice President for University Relations
James R. Johnsen, Chief of Staff
Karen Perdue, Associate Vice President for Health Programs
Bob Miller, Director, Public Affairs
Ann Ringstad, Director, Government Relations
Pat Pitney, Director, Budget and Institutional Research
Jim Chapman, Provost, UAA
Paul Reichardt, Provost, UAF
Roberta Stell, Provost, UAS
Carol Griffin, Vice Chancellor for Administrative Services, UAS
Cindy Matson, Vice Chancellor for Administrative Services, UAA
Frank Williams, Vice Chancellor for Administrative Services, UAF
Jeannie D. Phillips, Board of Regents' Officer
R. Dianne Taylor, Board of Regents' Staff

I. Call to Order

Chair Burns called the meeting to order at 1:25 p.m.

II. Adoption of Agenda

Regent Demeksa moved, seconded by Regent Hardenbrook, and passed as amended that:

PASSED AS AMENDED (revisions noted by *)

"The Board of Regents adopts the agenda as presented.

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

A. Planning and Development Committee

1. Approval of Fund-Raising Roles and Structures (removed)

B. Finance, Facilities, and Land Management Committee

1. Approval of FY2003 Capital Budget Request (moved to New Business)
2. Approval of FY2003 Operating Budget Request
3. Approval of Natural Resources Fund Budget

C. Human Resources Committee

1. Approval of FY03 Budget Inclusion of a 1.5 Percent Increase to Nonexempt and Exempt Employee Salary Grid
2. Approval of Temporary Re-employment for Retirement Incentive Program Participants

VI. New Business and Committee Reports

A. Finance, Facilities, and Land Management Committee

*1. Approval of FY2003 Capital Budget Request (from Consent Agenda)
2. Committee Report

B. Human Resources Committee

*1. Study on Salary Schedule Competitiveness (added)

C. Planning and Development Committee

*1. Approval of Amendments to President Hamilton's Contract (added)
2. Committee Report

*D. Approval of Application to Rasmuson Foundation for Noyes Pavilion Support (added)
*E. Approval of Resolution of Congratulations to the Northern International University in Magadan, Russia on its 40th Anniversary (added)

VII. Future Agenda Items
VIII. Board of Regents' Comments
IX. Executive Session
X. Approval of Honorary Degree and Meritorious Service Award Recipients for Spring 2002
XI. Adjourn

This motion is effective November 9, 2001."

III. Approval of Minutes

Regent Begich asked that a phrase be deleted from the ACPE report.

PASSED AS AMENDED

"The Board of Regents approves the minutes of its regular meeting of June 7-8, 2001 as amended. This motion is effective November 9, 2001."

IV. President's Report

Due to time constraints, President Hamilton did not give a report at this meeting.

V. Consent Agenda

PASSED

"The Board of Regents approves the recommendations as stated below. This motion is effective November 9, 2001."

A. Planning and Development Committee

1. Approval of Fund-Raising Roles and Structures

Removed from Consent Agenda.

B. Finance, Facilities, and Land Management Committee

1. Approval of FY2003 Capital Budget Request Reference 3

Removed from Consent Agenda to New Business.

2. Approval of FY2003 Operating Budget Request Reference 4

MOTION AS AMENDED

"The Board of Regents approves the FY2003 operating budget request in accordance with the plan as amended. This motion is effective November 9, 2001."

3. Approval of Natural Resources Fund Budget Reference 5

MOTION

"The Board of Regents approves the Natural Resources Fund budget as presented in Reference 5A. This motion is effective November 9, 2001."

C. Human Resources Committee

1. Approval of FY03 Budget Inclusion of a 1.5 Percent Increase to Nonexempt and Exempt Employee Salary Grid

MOTION

"The Board of Regents approves, contingent upon legislative funding, a 1.5 percent increase to the salary grid for nonexempt and exempt employees effective July 1, 2002. This motion is effective November 9, 2001."

2. Approval of Temporary Re-employment for Retirement Incentive Program Participants

MOTION AS AMENDED

"The Board of Regents approves the appointment of Dr. Roberta Morgan and Dr. David Hoffman to temporary positions or project contracts, not to exceed 49 percent of previous base salary, as approved by the President. These appointments may not include retirement, health or leave benefits, except social security replacement if required by the IRS. This motion is effective November 9, 2001."

VI. New Business and Committee Reports

A. Finance, Facilities, and Land Management Committee

1. Approval of FY2003 Capital Budget Request

During the Finance, Facilities, and Land Management Committee meeting, several amendments to the proposed capital budget were made including:

-- Prioritizing the Lena Point Facility as the first priority under the category, "Preparing for Alaska's Economic Success";
-- Revising the title to "New Construction and Acquisition Transition - Leased Space - (Anchorage/Fairbanks)" and revising the amount to $18 million;
-- Revising the UAF Bio Science Building to $12 million;
-- Revising the UAA Integrated Science Facility to $8 million;
-- Adding an unprioritized line item: "Phase II Construction, Bio Science Building" at $58 million;
-- Adding an unprioritized line item: "Phase II Construction, Integrated Science Facility" at $46.8 million;
-- Increasing "New Construction" subtotal to $160,800 million; bringing total request of Capital Budget to $221,825.2 million.

Regent Demeksa moved, seconded by Regent Begich, and passed that:

PASSED AS AMENDED

"The Board of Regents approves the FY2003 capital budget request in accordance with the plan as amended. This motion is effective November 9, 2001."

2. Committee Report

In addition to action items, the committee also heard reports on the UAF Master Plan; an update on the Tanana Valley Campus facilities master plan; update on proposed federal facility at UAF; and passed the following motion:

Ratification of Schematic Design for University of Alaska Southeast - Juneau Campus, Egan Classroom Wing Addition - Phase 2

PASSED

"As required by Regents' Policy 05.12.04C, the Finance, Facilities, and Land Management Committee approves the schematic design for the UAS Egan Classroom Wing Addition - Phase 2 as presented, and authorizes the university administration to bid and award contracts not to exceed a combined total project cost of $8,000,000 for this Phase 2 and the original Phase 1, and ratifies all actions taken by the administration to date. This motion is effective November 9, 2001."

B. Human Resources Committee

*1. Study on Salary Schedule Competitiveness (added)

Regent Rose moved, seconded by Regent Croft, and passed that:

PASSED

"The Board of Regents directs the administration to examine competitiveness of the University of Alaska salary schedules for non-exempt and exempt university employees who are not members of a collective bargaining unit and report to the committee as soon as practical on the administration's conclusions, including an estimate of the cost to bring University salary schedules to within 10 percent of the median of comparable universities. The board further requests that the administration study the competitiveness of salaries of university employees who are members of collective bargaining units, including relevant workload and productivity comparisons, to aid the administration and board in negotiating successor contracts with collective bargaining unit representatives. This motion is effective November 9, 2001."

C. Planning and Development Committee

*1. Approval of Amendments to President Hamilton's Contract

Regent Rogers moved, seconded by Regent Johnson, and passed by unanimous consent that:

PASSED

"The Board of Regents approves amendments to its contract with President Hamilton as follows:
~ Reduction of the completion of service bonus from $125,000 over five years to $75,000 over three years;
~ Contractual notice provision of one academic year, given not later than June of any year, with automatic year-to-year renewal absent such notice;
~ Increase of salary to 10 percent below the College & University Personnel Association market median for system CEOs, adjusted by 3 percent for Alaska cost of living and 4.5 percent for time delay, $250,000 for the current contract year.
This motion is effective November 9, 2001."

2. Committee Report

Regent Rogers reported that the committee will meet during the December 7, 2001 meeting to revise the Board of Regents' bylaws, discuss roles and relationships between the UA Foundation and the Board of Regents, and plan for the January Board of Regents' retreat.

*D. Approval of Application to Rasmuson Foundation for Noyes Pavilion Support (added)

Regent Croft moved, seconded by Regent Begich, and passed by unanimous consent that:

PASSED

"The Board of Regents is aware of and fully supports the Tier 2 application to the Rasmuson Foundation in the amount of $150,000 for the Noyes Pavilion, University of Alaska Southeast, Juneau, Alaska. This motion is effective November 9, 2001."

*E. Approval of Resolution of Congratulations to the Northern International University in Magadan, Russia on its 40th Anniversary (added)

WHEREAS, the Magadan Pedagogical Institute was established in 1961 in the former Soviet Union, and

WHEREAS friendship and faculty exchanges between the University of Alaska and Magadan Pedagogical Institute began in 1989, beginning the melting of the "ice curtain" between our countries, and

WHEREAS the Magadan International Pedagogical University was formally established to expand the Magadan Pedagogical Institute on 11 June 1992 by the Russian Federation Government after two years of active support by the University of Alaska, the Russian Federation Ministry of Education, the Governor of Magadan Region, the Mayor of Magadan City, and others, and

WHEREAS, at the suggestion of the University of Alaska, the Hokkaido University of Education became a part of this consortium, and

WHEREAS, as founding sponsors of the Magadan International Pedagogical University, representatives of the University of Alaska and Hokkaido University of Education were elected to the Board of Trustees of the institution, an unprecedented action in the Russian Federation, and

WHEREAS the Magadan International Pedagogical University was accredited by the government of the Russian Federation in May 1994, and

WHEREAS in December 1994 the Board of Trustees of Magadan International Pedagogical University and the Board of Regents of the University of Alaska held a joint meeting in Anchorage, Alaska, and

WHEREAS, the role of Magadan International Pedagogical University was further expanded when it became Northern International University in 1998, providing a wide scope of educational opportunities to people of the Russian Far East, and

WHEREAS, the University of Alaska and Northern International University have signed working agreements and memoranda of understanding regarding student and faculty exchange programs, including the offering of a waiver of nonresident tuition surcharges to residents of both regions, and

WHEREAS, the Northern International University has bestowed upon Dr. Victor Fisher, Regent Brian Rogers, Professor Gretchen Bertsch, and former member of the Board of Regents Robert Williams, the Honorary Doctorate; and

WHEREAS, the University of Alaska and Northern International University share missions of serving people of the North across cultures and boundaries,

WHEREAS, the Northern International University celebrates its 40th anniversary on December 7, 2001;

THEREFORE BE IT RESOLVED that the University of Alaska Board of Regents congratulates the Northern International University on its 40th anniversary and the accomplishments of the new university, and

BE IT FURTHER RESOLVED that the University of Alaska Board of Regents sends its best wishes to the students, faculty, staff, and administration of our sister university; and

BE IT FURTHER RESOLVED that this resolution be appropriately engrossed and conveyed to Northern International University, with a copy to be incorporated into the official minutes of the November 9, 2001 meeting of the Board of Regents.

Regent Rogers moved, seconded by Regent Rose, and passed that:

PASSED

"The Board of Regents approves the resolution of congratulations to Northern International University, in celebration of its 40th anniversary. This motion is effective November 9, 2001."

VII. Future Agenda Topics

None.

VIII. Board of Regents' Comments

Regent Johnson thanked Pat Pitney and Joe Beedle for traveling to Juneau to give her a review of the budget.

Regent Usibelli welcomed Regents Johnson, Begich, and Hardenbrook.

Regent Croft reported that he had been able to attend the September 11 memorial service/celebration in Juneau and a seminar on UAS campus regarding the events and commented that there was fine discussion that was appropriate and informative; expressed his appreciation for the fine job done by President Hamilton and thanked him and Patty Hamilton for the nice reception. He reported that he had witnessed the UAA hockey team win in Duluth and commented that the academic rating for the hockey team is #3. He also reported that the Seawolf Debate Team won 1st, 2nd, 3rd, and 4th in a recent national competition.

Regent Demeksa expressed her thanks to campus representatives who conducted facilities tours for her recently: Cindy Matson and Soren Orley at UAA, Carol Griffin and Keith Gerken at UAS, and Kathleen Schedler at UAF; and thanked President Hamilton for a job well done over the past three years.

Regent Rose spoke of her pleasure in being able to meet with her colleagues as a board again after such a long break; and commented that the new entrance sign for UAA at Providence Drive/Lake Otis Boulevard is wonderful.

Regent Rogers requested that all board members receive a copy of the recent publication by ISER regarding Alaska's Peoples Trends; reported that the release form regarding the UAF Summer Fine Arts Camp was very extreme; and presented Chancellor Marshall Lind with a 1920s copy of sheet music entitled "Top of the World" featuring a Nanook.

Regent Begich reported that he was invited to visit and tour the University of Washington WWAMI program; that the net earnings for ACPE are at $20 million, with approximately $5.5 million going back to the state, and that ACPE will be introducing incentive rates for specific reasons/programs; and that ACPE will propose a "task force" regarding the forgiveness of student loans issues in preparation for the upcoming legislative session.

Regent Burns thanked the Finance/Budget staff for excellent work on the FY03 budget proposal; thanked a certain member of the Human Resources staff for the presentation on health care costs (former Regent Josh Horst); apologized to the UAF Master Plan team for the rushed presentation; complimented President Hamilton for his excellent work; and thanked Patty Hamilton for the wonderful party held at the President's Residence on Thursday evening.

IX. Executive Session

Regent Rogers moved, seconded by Regent Begich, and passed that:

PASSED AS AMENDED

"The Board of Regents goes into executive session at 1:32 p.m. A.S.T in accordance with the provisions of AS 44.62.310 to discuss matters the immediate knowledge of which would have an adverse effect on the finances of the university related to:
- Litigation
- Labor
- Land
- Contracts and Contract Negotiations
and matters that would affect the reputation or character of a person or persons including:
- Personnel Matters
- Honorary Degrees
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 in this room at approximately 2:30 p.m. A.S.T. This motion is effective November 9, 2001."

The Board of Regents concluded an executive session at 2:45 p.m. A.S.T. in accordance with AS 44.62.310 discussing matters the immediate knowledge of which would have an adverse effect on the finances of the university; and matters that would affect the reputation or character of a person or persons. The session included members of the Board of Regents, President Hamilton, General Counsel Parrish, and other university staff members designated by the president and lasted approximately one hour and fifteen minutes.

X. Approval of Honorary Degree and Meritorious Service Award Recipients for Spring 2002

Recommendations submitted by the University of Alaska Fairbanks for recipients of honorary degrees and meritorious service awards was sent under separate cover for Board of Regents' review prior to the November 9, 2001 board meeting.

Regent Rogers moved, seconded by Regent Begich, and passed that:

PASSED

"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 2002 and beyond, and authorizes the appropriate chancellors to invite the approved nominees and announce their acceptance. This motion is effective November 9, 2001."

XI. Adjourn

Board Chair Burns adjourned the meeting at 3:15 p.m.