Board of Regents

11-21-97minutes

Board of Regents

OFFICAL MINUTES

Meeting of the
University of Alaska Board of Regents
November 21, 1997
Anchorage, 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 (excused at 4:00 p.m.)
Lew M. Williams, Jr. (excused at 4:20 p.m.)

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
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
Daniel Johnson, 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 9:35 a.m. on Friday, November 21, 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. Consent Agenda:
A. Academic and Student Affairs Committee
1. Approval of a Bachelor of Human Services Program at the University of Alaska Anchorage
2. Approval of a Certificate in Industrial Technology Program at Prince William Sound Community College
*3. Approval of Amendments to Regents' Policy 10.09.01 - Establishment of the Sydney Chapman Chair in Physical Sciences at the University of Alaska Fairbanks (moved from Consent Agenda to New Business - A&SA item 1.)
4. Approval of Action to Address the Status of University of Alaska Fairbanks School of Education
B. Finance, Facilities and Land Management Committee
*1. Approval of Revised Project Budget and Financing Plan for the UAA Student Housing Project (moved from Consent Agenda to New Business - FF&LM item #2)
2. Approval of Additional FY97 Capital Appropriation Projects for UAS
3. Approval of the 1998 Land Management Development Plan
X. New Business and Committee Reports
A. Academic and Student Affairs Committee
*1. Approval of Amendments to Regents' Policy 10.09.01 - Establishment of the Sydney Chapman Chair in Physical Sciences at the University of Alaska Fairbanks (moved from Consent Agenda)
2. Academic & Student Affairs Committee Report
B. Ad Hoc Committee on UA Schools of Education
C. Audit Committee
1. Executive Session
2. Audit Committee Report
D. Finance, Facilities and Land Management Committee
*1. Hutchison Career Center Renovation (added)
*2. Financing Plan for the UAA Student Housing Project (moved from Consent Agenda)
3. Finance, Facilities & Land Management Committee Report
E. Human Resources Committee
F. Labor Relations Committee
G. Nominating Committee
H. Planning and Development Committee
*1. Redesign of the University of Alaska Administrative System (added)
2. Planning and Development Committee Report
I. Committee of the Whole
1. Executive Session
2. Discussion with Governor Tony Knowles and Lt. Governor Fran Ulmer
3. Committee of the Whole Report
*J. Approval of Travel Request (added)
XI. Future Agenda Items
XII. Alaska Commission on Postsecondary Education Report
XIII. Presidents' and Board of Regents' Comments
XIV. Adjourn

This motion is effective November 21, 1997."

III. Approval of Minutes

The minutes were approved with no objections.

PASSED

"The Board of Regents approves the minutes of its September 26, 1997 meeting as amended. This motion is effective November 21, 1997."

IV. Public Comments

Rick Mystrom, Mayor of Anchorage, met with the regents. He complimented the Fairbanks community and delegation for supporting UAF and expressed his intent to work on developing that kind of support from community and delegation for UAA. He also asked the board to consider an academic program in logistics in light of Anchorage International Airport's growing importance as an international air cargo transfer center. Regent Gagnon said the Academic and Student Affairs Committee will add this to its matrix. Regent Williams asked Mayor Mystrom about the possibility of financial support for the university from the Anchorage Municipality. Regent Croft added that the board would be interested in not only direct appropriations but in incidental, in-kind, facility or function assistance that could be made available to the university. Regent Burns urged the mayor to remember what an important part the university plays in the economic health of Anchorage. Mayor Mystrom pledged his support for the University of Alaska Anchorage.

Linda McCarristan, English professor at UAA, spoke in support of the United Academics union contract.

Andy Warwick, Golden Heart Utility chair, urged UAF to hook up to the Golden Heart Utility water supply and for the management of waste water and sewer systems; he added this could improve the taste of the water. He also encouraged the board to look at other local utilities for outsourcing possibilities.

The following individuals spoke to the board in support of the UAA Bachelor in Human Services degree: Molly Merritt-Duren, Olinda Dabba, Linda Jackson, Judy Lippincott, Anna Lampley, Debra Uell.

The following UAA faculty members spoke in opposition to the board creating a research service center: Kris Mann, Kandace Williams, Marilyn Barker, Dennis Fischer.

The following UAA faculty members expressed concern regarding the loss of full-time faculty in their departments: Garry Kaulitz, Frank Jefferies, Spencer Zeiger.

Ramya Subramanian, UAA Consortium Library faculty, spoke on behalf of Barbara Sokolov, director of the Consortium Library, against establishing a service center for all libraries.

James Stagg and Cory Hackworth, UAA students, expressed student concerns regarding the magnitude of the administrative cuts; and thanked the board for support of the Consortium Library and UAA Housing capital funding.

Sol Gerstenfeld spoke to the board regarding posterity.

Chieu-Lu Ping, faculty member at the UAF Palmer Research Center, urged the board to continue supporting the land resource program.

Gerry O'Conner and daughter Kelly, residents of Eagle River, spoke of the importance of the UAA Eagle River/Chugiak Branch campus to Eagle River residents and urged the board to continue its support.

Ernie Hall, chair of the UAA Advisory Council, complimented Chancellor Gorsuch for bringing together a very strong advisory group from the Anchorage business community; expressed his support of Chancellor Wadlow's recommendations on administrative redesign; support Consortium Library funding; realize that UAA is an incredible economic engine for the Anchorage community.

Melissa Nell, UAS student, thanked the board for postponing tuition decision until February and urged student participation; and spoke of the need for a physical education facility and more classrooms at UAS.

Patrick Casey and H. B. Telling, students at UAF, expressed their concerns regarding ARAMark, the food service contractor at UAF; and regarding problems with maintenance and security at Inupiat House.

Eric Cerny, UAF student, urged the board to reconsider the university's land management plan regarding logging.

John Morkal, UAA student, expressed his concern regarding discrimination on the UAA campus on the basis of social status.

Theresa Obermeyer spoke to the board regarding the Alaska Bar Exam.

Kevin Tritt, President of USUAA, reported on student activities including absentee voting efforts, academic affairs committee participation, activities on campus; and asked the board to reconsider its motion regarding the technology fee.

Josh Hunter, UAA student, expressed his concerns regarding the heavy use of adjunct faculty at UAA and how it may affect accreditation as well as quality of instruction.

Andrew Hund, UAA student, stated concerns regarding communication, especially with students trying to get information; and that students would like more input regarding the implementation of fees.

Nick Maggard, expressed his concerns regarding the 70 courses that were cut last semester.

V. Employee Organization Reports

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

Marie Scholle, representing System Governance, Staff Alliance and Alumni, reported on the staff/president retreat; work on leave share policy; and Phase 2 of the"Support the University" campaign -"Adopt a Legislator". Ms. Scholle also reported that the Alumni have passed a resolution supporting full funding for the university; and have expressed concerns regarding the rural campus sites, their students, staff and faculty. She also related that during a recent press conference, Governor Knowles publicly acknowledged the hard work of governance groups in support of the University of Alaska.

John Craven, representing the Faculty Alliance, agreed that there is a problem with tracking the thesis and lab hours to the individual faculty member; and that the Alliance is working on the common grade policy; held a retreat on RIP, strategic planning and faculty development.

The following members of the Coalition of Student Leaders addressed the board:

Grace Wilson-Laudun, President of the Mat-Su College student government, reported that she spoke with Governor Knowles regarding accreditation concerns, budget reduction impacts and welfare reform.

Kevin Tritt, USUAA President, reported that he spoke to Governor Knowles regarding setting up meeting with members of the legislature and on concerns when the cuts take effect and what price will be paid by the students to realize these savings.

Rosie Gilbert, USUAS President, thanked President Komisar for his support at the Northwest Student Conference and commented that many student representatives at the conference were impressed with how fortunate Alaska students are in that there is a student representative on the board and the board's responsiveness to students.

Mary Stasenko, Northwest Campus student, expressed student concerns regarding possible budget cuts at the rural campuses.

Steve Nuss, ASUAF President, thanked the board for its commitment to addressing the UAF School of Education concerns and needs; reported on technology fee purchases; praised the efforts regarding the redesign of administrative functions; expressed concerns regarding tuition increases; and reported that UAF women's basketball team is doing well this season.

B.

Collective Bargaining Units: ACCFT, CEA, United Academics
United Academics: President Larry Weiss commended the regents on their political acumen in meeting with high profile politicians, demonstrated by the meetings with the governor, lt. governor and mayor of Anchorage; expressed his concern regarding the pattern of alleged unfair labor practices regarding benefits, contracts, and work week, stating that as a consequence, the relationship between the union and administration is eroding. Vice President John French expressed his desire that the union work with the university more productively.
VI. Chancellors' Status Reports

None.

VII. UA System Administration Status Reports

None.

VIII. Executive Session

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

PASSED

"The Board of Regents goes into executive session at 12:45 p.m. A.S.T in accordance with the provisions of AS 44.62.310 to discuss matters relating to litigation, collective bargaining, land acquisition and contract negotiations, these topics being subjects 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 Komisar, General Counsel Parrish, and such other university staff members as the president may designate and will last approximately three hours. Thus, the open session of the Board will resume in the Campus Center Cafeteria at approximately 4:00 p.m. A.S.T. This motion is effective November 21, 1997."

The Board of Regents concluded the executive session at 4:10 p.m. A.S.T. in accordance with AS 44.62.310 discussing matters relating to litigation, collective bargaining, land acquisition and contract negotiations, these topics being subjects 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, General Counsel Parrish and other university staff members designated by the president and lasted approximately three hours.

IX. Consent Agenda

A. Academic and Student Affairs Committee
1. Approval of a Bachelor of Human Services Program at the University of Alaska Anchorage (Reference 2)

MOTION

"The Academic and Student Affairs Committee recommends that the Board of Regents approve a Bachelor of Human Services program at the University of Alaska Anchorage. This motion is effective November 20, 1997."

2. Approval of Certificates in Industrial Technology Program at Prince William Sound Community College (Reference 3) MOTION

"The Academic and Student Affairs Committee recommends that the Board of Regents give approval for Certificate Programs in Oil Spill Response, Safety Management, and Electric Power Generation at Prince William Sound Community College. This motion is effective November 20, 1997."

3. Approval of Amendments to Regents' Policy 10.09.01 - Establishment of the Sydney Chapman Chair in Physical Sciences at the University of Alaska Fairbanks (Reference 4)

Removed from Consent Agenda - moved to Item X.A.1

4. Approval of Action to Address the Status of University of Alaska Fairbanks School of Education

MOTION

"The Academic and Student Affairs Committee recommends that the Board of Regents direct the UAF School of Education to continue planning underway with the Professional Education Coordinating Committee for strengthening University of Alaska professional educator programs through collaborative program delivery, and to report on progress at the February 1998 meeting of the Academic and Student Affairs Committee. This motion is effective November 20, 1997."

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

PASSED AS AMENDED

"The Board of Regents approves recommendations 1, 2 and 4 of the Academic and Student Affairs Committee as stated above. This motion is effective November 21, 1997."

B. Finance, Facilities and Land Management Committee

1. Revised Project Budget and Financing Plan for the UAA Student Housing Project

Removed from Consent Agenda to Item X.D.2.

2. Approval of Additional FY97 Capital Appropriation Project for UAS

MOTION

"As required by Regents' Policy 05.12.05, the Finance, Facilities and Land Management Committee recommends that the Board of Regents authorize the Egan overpass deferred maintenance project to be funded through the fiscal year 1997 capital appropriation for the Juneau campus. This motion is effective November 20, 1997."

3. Approval of the 1998 Land Management Development Plan (Reference 6)

MOTION

"The Finance, Facilities and Land Management Committee recommends that the Board of Regents approve the 1998 Land Management Development Plan as presented and directs the administration to carry out the plan to the extent practicable. This motion is effective November 20, 1997."

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

PASSED

"The Board of Regents approves recommendations 2 and 3 of the Finance, Facilities and Land Management Committee as stated above. This motion is effective November 21, 1997."

X. New Business and Committee Reports
A. Academic and Student Affairs Committee
1. Approval of Amendments to Regents' Policy 10.09.01 - Establishment of the Sydney Chapman Chair in Physical Sciences at the University of Alaska Fairbanks (Reference 4)

The Academic and Student Affairs Committee recommended that the motion, as printed in the agenda, be modified to delete the phrase"non-tenure track" which would allow more flexibility in making the appointment.

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

PASSED AS AMENDED:

"The Board of Regents amends the second paragraph of Regents' Policy 10.09.01.A to read:

An appointment to the Sydney Chapman Chair will be a term appointment subject to Regents' Policy, University Regulation, and rules and procedures governing faculty appointment at the University of Alaska Fairbanks. The appointment may be renewable.
This motion is effective November 21, 1997."

2. Academic and Student Affairs Committee Report

Chair Gagnon submitted the following written report:

The Academic and Student Affairs Committee

Heard an unscheduled report from Regent Nelson-Wright on her attendance at the student leadership conference in Portland, where she addressed the assembly and also learned of the high level of student involvement at the Board level in Alaska compared to that of students in Washington and Oregon.

Heard the reports of UAA Music Department Chair Tim Smith and UAA Journalism and Public Communications Department Chair Larry Campbell and congratulated both on the swift accreditation and outstanding performance of their departments.

Approved as consent agenda items to be forwarded to the full Board of Regents a Bachelor of Human Services degree program at UAA and a Certificate in Industrial Technology program at Prince William Sound Community College.

Moved to forward to the full Board of Regents an amendment to Regents' Policy 10.09.01, which provides for the establishment of the Sydney Chapman Chair in Physical Sciences at UAF as a term appointment.

Approved as a consent agenda item to be forwarded to the full Board of Regents an action that directs the UAF School of Education to continue the planning underway with the Professional Education Coordinating Committee for strengthening University of Alaska professional educator programs statewide.

Heard a report from UAF Provost John Keating on the NCATE exit review of the UAF School of Education critical of the School's conceptual framework, governance, lack of electronics instruction for students, faculty professional and community involvement and lack of on-going assessment. The NCATE review reflected positively on the quality of the students, curriculum and students ability to work after graduation.

Provost Keating noted the following progress on NCATE concerns:

1. Governance: the faculty is developing recommenda-ions which to date include establishing an advisory board.

2. Conceptual framework: the PECC plan will provide a new conceptual framework for all three UA Schools of Education programs.

3. Lack of electronics experience for students: UAF has built a computer laboratory and is creating simulated K-12 classrooms for instruction in teacher preparation.

4. Faculty professional and community involvement: a newsletter is planned, the above-mentioned advisory board is planned, an effort to include area teachers in curriculum development will be undertaken, regular meetings with the school board will occur.

5. Systematic review of program: there will be exit interviews and a total assessment of all programs as part of the re-accreditation process of UAF by the Northwest Accrediting Association.

Provost Keating also reported that the Alaska State Department of Education granted one-year accreditation to the UAF School of Education and directed the School to terminate the TFA program, which would be replaced by the PECC-recommended fifth year program; suspend the PE program, which the School has already done; and to meet with DOE regularly to report progress on NCATE concerns. Provost Keating is consulting with other Schools of Education in designing an appropriate administrative structure for the School.

Congratulated UAA and UAF on the development of the joint "2 Plus 2" program in Mechanical and Electrical Engineering.

Reviewed Regents' Policy and Regulation 09.02.00 on student rights and responsibilities.

Reviewed Regents' Policy and Regulation 09.06.00 on services for students with disabilities.

Heard a report from the student affairs officers, which confirmed that international students can be employed by the university.

Heard a report from Vice Chancellor Roberta Stell on the SAC's intention to bring Stephen Ehrmann, Director of the Flashlight Project for the American Association of Higher Education, to Alaska to instruct the University, the Board and others on new developments in instructional technology.

Set as future agenda items:

1. A report on tuition paid by international students at the University of Alaska.

2. A report to be made by President Komisar by the April meeting on other University of Alaska programs that could be at risk for losing accreditation.

At the full Board of Regents meeting, asked to have placed on the Academic and Student Affairs Committee matrix: "Explore the development of a program in logistics."
B. Ad Hoc Committee on UA Schools of Education

No report was given.

C. Audit Committee

1. Executive Session

The Audit Committee of the Board of Regents held an executive session from 7:45 a.m. until 9:15 a.m. on Friday, November 21, 1997, in accordance with AS 44.62.310 discussing matters which by law are required to be kept confidential and potential litigation, the immediate knowledge of which would have an adverse effect on the finances of the university, and lasted approximately one and one-half hours. The session included members of the Board of Regents, President Komisar, General Counsel Parrish, Interim Director of Internal Audit Shilling, and other university staff members designated by the president.

2. Audit Committee Report

Regent Croft made the following statement for the record:

"The Audit Committee has been advised by the General Counsel that there is an Alaska Executive Ethics Act. That act applies to the University of Alaska. I would like the minutes to reflect that not only do we have an Alaska Executive Ethics Act, that it applies to the University of Alaska, it applies to all employees of the University of Alaska, full-time, part-time, faculty, staff, all employees are covered; and that it is the policy of the University of Alaska that we will insist on full compliance with the Alaska Executive Ethics Act by all employees of the University of Alaska."
In addition to the executive session, the Audit Committee reviewed the status of the FY97 annual external audit and potential management letter with David McCambridge, KPMG Peat Marwick partner; reviewed recently completed audits; and heard a status report on the FY98 annual internal audit plan.

Regent Croft also reported that the Audit Committee will hold a special meeting, scheduled for mid-December 1997.

D. Finance, Facilities and Land Management Committee
1. Hutchison Career Center Renovation (added)

University of Alaska Fairbanks administration summarized preliminary discussions with the Fairbanks North Star Borough School District regarding the feasibility of a joint project to renovate and expand the Hutchison Career Center to accommodate growth in vocational education. Both the Fairbanks North Star Borough School District and Tanana Valley Campus (TVC) offer vocational technical programs that are housed at Hutchison Career Center. The "partnership" approach could include a joint capital request to the Alaska Legislature. The TVC Community Advisory Council has passed a resolution supporting the joint project.

As a result of this report, the Finance, Facilities and Land Management Committee passed the following motion, for approval by the Full Board.

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

PASSED:

"The Board of Regents places the Hutchison Career Center renovation and expansion project on the agenda of the special meeting of the Finance, Facilities and Land Management Committee during the week ending December 12, 1997; and directs that this project be developed as a joint venture between the University of Alaska and the Fairbanks North Star Borough School District. This motion is effective November 21, 1997."

2. Revised Project Budget and Financing Plan for the UAA Student Housing Project

The Finance, Facilities and Land Management Committee amended the following motion to add more specificity to the motion.

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

PASSED AS AMENDED:

"The Board of Regents approves the revised total project budget for the University of Alaska Anchorage Student Housing/Food Service Project as shown below: FY96 Capital Appropriation for Parking - $400,000
FY96 Capital Appropriation for Planning - $400,000
Alaska Housing Finance Corporation Bonds - $33,000,000
TOTAL: $33,800,000

Notes:
1. The value of start-up operating equipment provided by food service contractor, ARAMARK, is $400,000.
2. Capital campaign contributions of at least $500,000 are anticipated. As necessary, the funds will be utilized to meet financial requirements of the project.

This motion is effective November 21, 1997."

3. Finance, Facilities and Land Management Committee Report

In addition to action items, the committee also received reports regarding deferred maintenance, the Brooks Building and on Capital Projects.

E. Human Resources Committee

The Human Resources Committee had no action items but received the Annual Grievance Report and a report on labor relations.

F. Labor Relations Committee

No report was given.

G. Nominating Committee

No report was given.

H. Planning and Development Committee

1. Redesign of the University of Alaska Administrative System

At the November 14, 1997 meeting of the Planning and Development Committee, the following motion was approved:

MOTION:

"The Planning and Development Committee recommends that the Board of Regents receive President Komisar's recommendations regarding the Redesign of the University of Alaska Administrative System and the Creation of Administrative Service Centers; express its tremendous thanks to President Komisar for appointing the committee and for the work of Dr. Wadlow, specifically, and her committee for their very fine effort; and direct President Komisar to re-engineer functions and organize the administrative system according to the following seven points:

1. maintain a strong presidency with the ability to concentrate on policy issues but responsible to the Board of Regents for both the executive and service functions;
2. endorse the concept of a President's Council;
3. clearly distinguish between executive and service functions;
4. maintain a university-wide system that avoids unnecessary duplication to the maximum extent possible;
5. assure that re-engineering of functions and organization results in new reduction of administrative costs of at least $2 million per year for a total of $10 million over the next four years beginning with FY99;
6. keep operational authority closest to customers; and
7. assure that this be done in a form in which actual savings can be projected and reported.

This motion is effective November 14, 1997."

Regent Gagnon moved, seconded by Regent Burns, that the main motion be approved.

Regent Ogg moved, seconded by Regent Burns, to approve a substitute motion:

SUBSTITUTE MOTION:

"The Board of Regents directs the university administration to: 1. articulate the impact on administration and programs at the University of Alaska in order to meet Governor Knowles projected FY99 budget request, 1) with the HEPI tuition increase, and 2) without the HEPI tuition increase; and

2. analyze Human Resources as a pilot service center, articulate the details, plans of implementation, and cost savings, and return with a fleshed-out proposal for Board of Regents approval.

This motion is effective November 21, 1997."

Regent Fate moved to table the main and substitute motions, seconded by Regent Henri, and passed on a vote of 5 to 4 with Regents Fate, Gagnon, Henri, Kelly and Ogg voting in favor and Regents Burns, Croft, Demeksa and Nelson-Wright voting in opposition:

PASSED:

"The Board of Regents tables the motion and substitute motion regarding 'Redesign of the University of Alaska Administrative System.' This motion is effective November 21, 1998."

The Board of Regents then held a discussion regarding the implications of laying the motions on the table.

Regent Burns moved to take from the table the main motion, seconded by Regent Demeksa, and passed on a vote of 5 to 4 with Regents Burns, Croft, Demeksa, Gagnon, and Kelly voting in favor and Regents Fate, Henri, Nelson-Wright and Ogg voting in opposition:

PASSED:

"The Board of Regents takes off the table the main motion regarding 'Redesign of the University of Alaska Administrative System.' This motion is effective November 21, 1997."

Regent Henri moved to amend the main motion, seconded by Regent Ogg, as follows. The motion to amend failed on a vote of 1 to 8 with Regent Henri voting in favor and Regents Burns, Croft, Demeksa, Fate, Gagnon, Kelly, Nelson-Wright and Ogg voting in opposition.

AMENDMENTS FAILED:
(amendments indicated by underlines and strikeovers)

"The Planning and Development Committee recommends that the Board of Regents receive President Komisar's recommendations regarding the Redesign of the University of Alaska Administrative System and the Creation of Administrative Service Centers; express its tremendous thanks to President Komisar for appointing the committee and for the work of Dr. Wadlow, specifically, and her committee for their very fine effort; and direct President Komisar to re-engineer functions and organize the administrative system according to the following seven points:

1. maintain a strong presidency with the ability to concentrate on policy issues but responsible to the Board of Regents for both the executive and service functions;
2. endorse the concept of a President's Council greater collaboration between the President and the Chancellors;
3. clearly distinguish between executive and service functions;
4. maintain a university-wide system that avoids unnecessary duplication to the maximum extent possible;
5. assure that re-engineering of functions and organization results in new reduction of administrative costs of at least $2 million per year for a total of $10 million over the next four years beginning with FY99 substantial sums for each of the four succeeding years with quarterly reports made to the Board of Regents' Audit Committee;
6. keep operational authority closest to customers;
7. assure that this be done in a form in which actual savings can be projected and reported; and
8. submit a proposal for Board of Regents' approval on a Human Resources Service Center.

This motion is effective November 21, 1997."

Regent Nelson-Wright asked for unanimous consent on a friendly amendment to item 5. to add "executive/" in front of "administrative". There was no opposition.

A vote was called on the main motion. The main motion passed on a vote of 6 to 3 with Regents Burns, Croft, Demeksa, Gagnon, Kelly and Nelson-Wright voting in favor, and Regents Fate, Henri and Ogg voting in opposition that:

PASSED:

"The Board of Regents receives President Komisar's recommendations regarding the Redesign of the University of Alaska Administrative System and the Creation of Administrative Service Centers; expresses its tremendous thanks to President Komisar for appointing the committee and for the work of Dr. Wadlow, specifically, and her committee for their very fine effort; and directs President Komisar to re-engineer functions and organize the administrative system according to the following seven points:

1. maintain a strong presidency with the ability to concentrate on policy issues but responsible to the Board of Regents for both the executive and service functions;
2. endorse the concept of a President's Council;
3. clearly distinguish between executive and service functions;
4. maintain a university-wide system that avoids unnecessary duplication to the maximum extent possible;
5. assure that re-engineering of functions and organization results in new reduction of executive/administrative costs of at least $2 million per year for a total of $10 million over the next four years beginning with FY99;
6. keep operational authority closest to customers; and
7. assure that this be done in a form in which actual savings can be projected and reported.

This motion is effective November 21, 1997."

2. Planning and Development Committee Report

Chair Gagnon submitted the following written report:

The Planning and Development Committee

Received and discussed the recommendations from President Komisar regarding the Final Report from the Committee on Potential Savings through Changes in the Role and Mission of System Office and Campus Administrative Processes.

Passed the following motion made by Regent Chancy Croft and seconded by Regent Mike Burns, with Regent Joe Henri voting in the negative and other regents reserving the right to re-visit certain provisions of the motion at the time of the full board meeting:

PASSED:

"The Planning and Development Committee recommends that the Board of Regents, at its November 21, 1997 meeting, receive President Komisar's recommendations regarding the Redesign of the University of Alaska Administrative System and the Creation of Administrative Service Centers; express its tremendous thanks to President Komisar for appointing the committee and for the work of Dr. Wadlow, specifically, and her committee for their very fine effort; and direct President Komisar to re-engineer functions and organize the administrative system according to the following seven points:

1. maintain a strong presidency with the ability to concentrate on policy issues but responsible to the Board of Regents for both the executive and service functions;
2. endorse the concept of a President's Council;
3. clearly distinguish between executive and service functions;
4. maintain a university-wide system that avoids unnecessary duplication to the maximum extent possible;
5. assure that re-engineering of functions and organization results in new reduction of administrative costs of at least $2 million per year for a total of $10 million over the next four years beginning with FY99;
6. keep operational authority closest to customers; and
7. assure that this be done in a form in which actual savings can be projected and reported.

This motion is effective November 14, 1997."

Heard Chancellor Marshall Lind's preliminary report from the Committee on Development of a Resource Allocation Model and Academic Program Paradigm for the University's Extended Campuses and congratulated the committee on its work in dividing the extended campuses into three groups according to their type, mission, program and partners. Chancellor Lind described the work as the first step in determining how to do things differently to save money.

Heard UAS Vice Chancellor Roberta Stell's preliminary report from the Committee on Recommendation of UA's Investment in Instructional Equipment and Organization of Efforts in Distance Education. Vice Chancellor Stell described research into faculty development needs, the importing and exporting of programs, similar work being done by others and the current inventory of distance-delivery capacity. The Committee is addressing the questions: how can UA achieve an outstanding position in its instruction, what training and instructional needs exist, how can the needs be met.

Heard Chancellor Lee Gorsuch's preliminary report on the Committee on Development and Recommendation of a Resource Allocation Model for the University. Chancellor Gorsuch described the Committee's research on resource allocation models at other locations and on the 1992 work of President Komisar at the University of Alaska. Chancellor Gorsuch explained that the Committee is using the NCHEM categories and is in contact with Dennis Jones, the president of NCHEMS, in determining which categories can be driven by student numbers and which are subject to exogenous determination. The Committee expects to have a draft report in February and a final recommendation in April.

I. Committee of the Whole
1. Executive Session

The Committee of the Whole held an executive session on Thursday, November 20, 1997, in accordance with AS 44.62.310 discussing matters relating to land acquisition, this topic being a subject the immediate knowledge of which would have an adverse effect on the finances of the university, and personnel issues, this topic being a subject which would tend to prejudice the reputation 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. The executive session was recessed at 1:35 p.m., resumed at 3:15 p.m., and concluded at 5:30 p.m., and lasted approximately three hours.

2. Discussion with Governor Tony Knowles and Lt. Governor Fran Ulmer

The following is a summary of the discussion held with Governor Knowles and Lt. Governor Ulmer on Thursday, November 20, 1997.

Governor Knowles congratuated the board on the challenging and difficult job of leading the university to significant accomplishments and spoke of his appreciation of each member's sense of service. He expressed his concern that it is sometimes difficult to see the customer service side of issues and urged the board to keep this goal as a top priority.

Lt. Governor Ulmer reported on her involvement with the Western Governors University and stressed the importance of technology to the health of the state. She also reported that the Alaska Science and Technology Foundation has expressed a desire to meet jointly with Board of Regents. Lt. Governor Ulmer also stressed the importance of the University of Alaska in assisting in state policy-making decisions regarding Alaska's fisheries.

Governor Knowles offered his congratulations to the board and the University of Alaska regarding the Alaska Aerospace Development Corporation grant of $18 million; stated his intent to recommend a $3.5 million increase from last year's operating budget for the University of Alaska; urged the board to support his new initiative regarding an Alaska Scholars Program; and thanked President Komisar for his valuable input on educational issues.

Governor Knowles also discussed areas where the University of Alaska is of critical importance to the state of Alaska and its citizens: these areas include assistance on helping quantify what it costs our society to not take care of our children (e.g. juvenile detention, corrections, crime, etc.); and in providing vocational education opportunities that are not being provided at a sufficient level in certain fields.

Regent Williams asked the governor if he anticipated a capital construction bond issue this year. Governor Knowles responded that he will work with the legislature regarding deferred maintenance but did not have any specifics as of yet.

Regent Croft thanked Governor Knowles for his support of the University of Alaska and applauded his efforts in creating an Alaska Scholars Program. He reported that in the Human Services area, the Board of Regents had just approved a bachelor's degree program. Regent Croft also suggested that the public school foundation formula might include the University of Alaska for its instruction of remedial courses; and that the"Rainy Day" account be used for an educational facilities construction fund in conjunction with the State Board of Education.

Regent Thomas stated his support of Governor Knowles' belief that some of the social problems facing Alaska today are related to unemployment.

Regent Henri thanked the governor for his support. He reminded the board that the governor serves the state as the chief magistrate which means "chief teacher." Regent Henri expressed his concerns regarding paying unlimited amounts to residents from the permanent fund while the university faces increased cuts.

Regent Fate thanked the governor and expressed her concern that K-12 students be prepared to enter college; and that the University of Alaska be able to retain and graduate students. She also expressed her hope that he would revisit the land-grant issue.

President Komisar thanked Governor Knowles and Lt. Governor Ulmer for their support of the University of Alaska and for higher education for the citizens of Alaska.

Regent Burns stated that he believes in the next generation and believes that we owe them two things: an economy that will produce jobs for them and the ability to train our children for those jobs.

Regent Ogg agreed that the first key to success is education; and expressed his support of the Alaska Scholars Program.

Regent Nelson-Wright expressed her appreciation for Governor Knowles press conference, adding that it had greatly increased the morale of students and employees. Chancellor Gorsuch thanked the governor for his support of the UAA housing and fiber optic connectivity funding.

Governor Knowles concluded by stating his appreciation for the work being accomplished by the Board of Regents, and thanked Tom Moyer, the director of the Governor's office in Fairbanks, for his work on higher education.

3. Committee of the Whole Report

The Committee of the Whole discussed tuition, the Red Book, and the FY98 budget plan. The chancellors also reported on Fall 1997 enrollment numbers at their respective campuses.

J. Approval of Travel Request

Board of Regents' Officer Phillips reported that Regents Henri and Williams had been invited to serve as panelists during an upcoming conference sponsored by the Alaska Cooperative Extension (ACE). The ACE had also made a request that travel funds be paid by the Board of Regents' Office, if at all possible, to help defray the costs of the conference.

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

PASSED:

"The Board of Regents approves reimbursement of travel costs for Regents Henri and Williams to participate in the Alaska Cooperative Extension's conference regarding Alaska's Forest Products Industry, to be held in Fairbanks, Alaska on December 3-4, 1997. This motion is effective November 21, 1997."

XI. Future Agenda Items

No requests were made.

XII. Report from Alaska Commission on Postsecondary Education Representatives

None.

XIII. Presidents' and Board of Regents' Comments

None.

XIV. Adjourn

President Kelly adjourned the meeting at 5:40 p.m.

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