Arizona Board of Regents-Minutes

Present:	Regent Boice Regent Bulla Regent Calderón Regent DeConcini Regent DuVal Regent Ginther Regent Leonard Regent Mariucci (Thursday only) Regent Meyer Regent Horne (joined the meeting at 2:00 p.m. Thursday only)
Absent:	Regent McLendon Governor Janice Brewer

Also present were President Michael Crow, Mr. Rich Stanley, Dr. Elizabeth Capaldi, Mr. Jose Cardenas, Ms. Lisa Loo, Dr. Christine Wilkinson, Lori Briese and Mr. Morgan Olsen, Arizona State University; President John Haeger, Mr. Mark Neumayr, Mr. David Bousquet, Ms. Elizabeth Grobsmith, Ms. Christy Farley, Ms. Laura Huenneke, and Dr. M. J. McMahon, Northern Arizona University; President Robert Shelton, Ms. Lynne Wood, Ms. Melissa Vito, Mr. Joel Valdez, Dr. Jacqueline Mok, Ms. Carla Nunn, Dr. Leslie Tolbert, Dr. Meredith Hay, Dr. William Crist, and Mr. Mike Proctor, University of Arizona; Executive Director Joel Sideman, Board Counsel Nancy Tribbensee, Secretary to the Board Peggy Martin, Ms. Christine Thompson, Mr. Art Ashton, Ms. Gale Tebeau, Dr. Mark Denke, Mr. Rick Gfeller, Ms. Andrea Smiley, Ms. Stella Galaviz, Dr. Sandra Woodley, Ms. Cathy McGonigle, Ms. Stephanie Jacobson (Thursday only), Mr. Dan Anderson, Mr. Lorenzo Martinez, and Ms. Kathy Bedard, Central Office; and Mr. David Harris, and Dr. William Culbertson, Arizona Faculties Council.

All lists, reports, summaries, background materials and other documents referred to in the minutes can be found in the August 6 and 7, 2009, Documents Files.

Regent DuVal led the Pledge of Allegiance.

Regent Calderón acknowledged the passing and contributions of Regents McNulty, Watkins and Pfister.

Regent Calderón welcomed everyone to Arizona State University and called the meeting to order. He welcomed William R. Culbertson, the new Arizona Faculties Council representative and the new Student Regent, Jennifer Ginther.

CONSENT AGENDA

All items on the Agenda that are marked in these minutes with an asterisk (*) were consent matters and were unanimously adopted upon the motion of Regent DuVal, seconded by Regent DeConcini, with Regents Boice and Bulla abstaining on Item 3 and Regent Bulla abstaining on Item 6.

*Minutes

The June 18-19, 2009 Regular Board Meeting Minutes and the April 30-May 1, 2009 Executive Session Meeting Minutes were approved.

RESOURCES CONSENT AGENDA

*Appointments and Reappointments to University Medical Center Corporation (UMCC) Board of Directors (Agenda Item #3)

The Board approved the appointments of Fred DuVal, Linda Mazon Gutierrez, Edmundo Hidalgo, and Max Poll, and the reappointments of Fred Boice and Judy Gignac, to the Board of Directors of University Medical Center Corporation with Regents Boice and Bulla abstaining.

*Appointments and Reappointments of Members of Arizona Area Health Education Centers Program (Arizona AHEC) Advisory Commission (UA) (Agenda Item #4)

The Board approved appointments and reappointments of members of the Arizona Area Health Education Centers Program (Arizona AHEC) advisory commission.

*Technology and Research Initiative Fund (TRIF) Business Plans (ASU) (Agenda Item #5)

The Board approved Arizona State University's request for approval of its revised TRIF business plans resulting from the reorganization of its TRIF program in January 2009. The reorganization was undertaken to focus on emerging targeted research areas and to streamline the TRIF program in light of funding shortfalls.

*Intergovernmental Agreement (IGA) between the Arizona Board of Regents Acting on Behalf of the University of Arizona and Pima County, Arizona, for Clinical Teaching Program Federal Medicaid Matching Funds (UA) (Agenda Item #6)

The Board approved the University of Arizona's request for ratification of an IGA between the Arizona Board of Regents acting on behalf of the University of Arizona, and Pima County, Arizona, providing for the transfer of $2.93M to be combined with an equivalent amount from the County to secure new federal funding in the amount of $18.5M in support of Graduate Medical Education (GME) programs.

*New Award from the Department of Energy (DOE)-National Energy Technology Laboratory (ASU) (Agenda Item #7)

The Board approved Arizona State University's request for acceptance of a new award of $1,705,000 from the Department of Energy (DOE)-National Energy Technology Laboratory for support of a Power Systems Engineering Research Center, School of Engineering project.

*Transfer of Technology to NayaLogic, Inc., and SJT Micropower, Inc. (ASU) (Agenda Item #8)

The Board approved Arizona State University's request for (1) a Transfer of Technology to NayaLogic, Inc., pursuant to a License Agreement with AzTE; and (2) a Transfer of Technology to SJT Micropower, Inc., pursuant to a License Agreement with AzTE.

*Approval of the Second Amendment to the Academic Affiliation Agreement with TGen (Agenda Item #9)

The Board approved the Second Amendment to the Academic Affiliation Agreement with TGen.

HUMAN RESOURCES CONSENT AGENDA

*Multiple-Year Employment Contract for Head Coach of the Gymnastics Team (UA) (Agenda Item #23)

The Board approved the University of Arizona's request for a Multiple-Year Employment Contract for William R. Ryden, Head Gymnastics Coach for the period July 1, 2009 through June 30, 2012.

*Multiple-Year Employment Contract for Head Coach of the Men’s and Women’s Track & Field and Cross-Country Teams (UA) (Agenda Item #24)

The Board approved the University of Arizona's request for a Multiple-Year Employment Contract for Frederick L. Harvey, Head Coach of the Men’s and Women’s Track & Field and Cross-Country Teams for the period July 1, 2009 through June 30, 2012.

*Multiple-Year Employment Contract for Head Coach of the Men’s Golf Team (UA) (Agenda Item #25)

The Board approved the University of Arizona's request for a Multiple-Year Employment Contract for C. Richard LaRose, Head Coach of the Men’s Golf Team for the period July 1, 2009 through June 30, 2012.

*Multiple-Year Employment Contract for Head Coach of the Women’s Tennis Team (UA) (Agenda Item #26)

The Board approved the University of Arizona's request for a Multiple-Year Employment Contract for Vicky F. Y. Maes, Head Coach of the Women’s Tennis Team for the period July 1, 2009 through June 30, 2012.

CALL TO THE AUDIENCE

Per Board Policy 1-114, time has been set aside for Call to the Audience, an opportunity for people to express their views or concerns to the entire Board in a public setting.

Michael Demeure, M.D. - spoke about an issue regarding his employment with UPH and the University of Arizona.

Lora Lee Nye - spoke on behalf of the Town of Prescott Valley regarding their appreciation of the new library building which includes Yavapai College, Northern Arizona University and Embry Riddle.

RESOURCES COMMITTEE (Chair: Regent Leonard)

FY 2009 Technology and Research Initiative Fund (TRIF) Annual Report (Agenda Item #1)

Regent Leonard stated that the Board was being asked to approve the Technology and Research Initiative Fund (TRIF/Proposition 301) Annual Report for the fiscal year ended June 30, 2009, including the revised budget for FY 2010. The approved report will be submitted to the Governor and Legislature by September 1, 2009, as required by A.R.S. §15-1648(D).

Dr. Sethuraman Panchanathan (ASU), Dr. Laura Huenneke (UA), Dr. Leslie Tolbert (UA), Kathy Bedard (CO), Dr. Joshua LaBaer (ASU), Dr. Kiisa Nishikawa (NAU) and Dr. Carol Barnes (UA) joined the meeting for this presentation.

Dr. Panchanathan introduced the presenters who will discuss their TRIF funded research.

Dr. Joshua LaBaer, Director of the Virginia G. Piper Center for Personalized Diagnostics at the Biodesign (ASU) gave a presentation on harnessing the proteome for personalized diagnostics. Dr. Kiisa Nishikawa, Regents Professor, Biological Sciences (NAU), gave a presentation on actuator design inspired by animal muscles. Dr. Carol Barnes, Regents Professor, Director of the McKnight Brain Institute and Associate Director of BIO5 (UA) gave a presentation on learning and memory and how it changes with age.

Regent Boice asked if there was a change of direction in BIO5. Dr. Barnes stated that plant science will remain a part of BIO5, but BIO5 is trying to be more inclusive of the biological sciences so Neuroscience and Bioengineering have been added. Dr. Martinez, the new director, is trying to expand and build on the foundation of what has previously happened at BIO5.

Kathy Bedard stated that TRIF has suffered a 21% decline in revenues in FY 09. For FY 10, $55.5M of new revenue is being predicted. It is hoped that this is a conservative estimate.

Upon motion by Regent Leonard, seconded by Regent DuVal, the Board unanimously approved the FY 2009 Technology and Research Initiative Fund Annual Report, including revised TRIF budgets for FY 2010, and directed that the report be submitted to the Governor and the Legislature as required by statute, as presented in this Executive Summary, with the exception that action be deferred on the $500,000 allocation of FY 2010 TRIF Regents Innovation Funds to the University of Arizona for the HRAA CTSA effort until a future meeting.

Regent Bulla stated that the Board needs to receive more information regarding the direction of the CTSA grant at the University of Arizona before the Board can release the funds.

Tuition-Setting Calendar for the 2010-2011 Academic Year (Agenda Item #2)

Regent Leonard stated that the Board was being asked to review and consider adopting a tuition-setting process and calendar to set the 2010-2011 tuition and fees in spring 2010.

Gale Tebeau joined the meeting for this presentation. The proposal is to set tuition at the March 2010 Board meeting.

Regent Bulla stated that he was concerned about the timing of this process and legislative processes including the need to possibly vote for an increase in the sales tax. Regent Bulla also was concerned that the timing of this vote might make it more difficult for the universities to implement various other fees.

Upon motion by Regent Leonard, seconded by Regent Boice, the Board approved the tuition-setting calendar for the 2010-2011 academic year, as presented in the Executive Summary, with Regent Bulla voting against this motion.

STRATEGIC PLANNING, BUDGET AND FINANCE COMMITTEE (Chair: Regent Bulla)

Report from the Strategic Planning, Budget and Finance Committee (Agenda Item #10)

Regent Bulla stated that the Board would receive a report on the August 6, 2009 meeting of the Strategic Planning, Budget and Finance Committee.

Sandy Woodley joined the meeting for this presentation.

Regent Bulla stated that the committee discussed four agenda items. The first was the universities' May 31 Financial Status Updates. These reports present actual revenues and expenditures to date, along with estimates for the June 30, year-end numbers. This report provides the committee an opportunity to monitor the financial position of each university as it moves through the fiscal year.

The initial May 31 updates shared with committee members in early July projected decreases in net assets at ASU and UA for FY 2009, with NAU projecting a slight increase of $1 million. However, because agreement was reached recently to allow the universities to recognize the FY 2009 federal stimulus funds as FY 2009 revenue and to charge certain FY 2009 expenses against those funds, the universities revised their May 31 updates to report these adjustments.

The universities received a total of $154.1 million in stimulus funds. Recognition of this significant revenue results in all three universities projecting an increase in net assets for FY 2009. ASU is estimating a $55.9 million increase; NAU is estimating a $24.5 million increase; and the UA is estimating a $19.5 million increase in net assets. These stimulus funds put the universities in a significantly better position going into FY 2010 than we would have been without them.

The Board and the universities appreciate the assistance of Governor Brewer and her staff in the Office of Strategic Planning and Budgeting, who were instrumental in making these federal stimulus funds available to the universities. It should be noted that the increases are for the universities only and do not include the year-end results to be reported by the universities; component units, the most significant being the Foundations.

The downturn in the investment markets has impacted the Foundations' investments, so it is possible that ASU and UA, as total enterprises, including their component units, may still report decreases in net assets for FY 2009 when the final numbers are in.

The committee then devoted time to discussing the system architecture reform.

The committee also reviewed the FY 2010 State Expenditure Authority.

Finally, the committee heard a report from Regent DuVal on the work he is leading on the Lumina Foundation for Education's Making Opportunity Affordable initiative.

FY 2010 State Expenditure Authority (Agenda Item #11)

Regent Bulla then stated that the Board was being asked to review and approve the FY 2010 State Expenditure Authority for Arizona State University, Northern Arizona University, the University of Arizona, and the ABOR Central Office.

Gale Tebeau joined the meeting for this presentation.

Regent Bulla stated that the numbers will change when a final budget is complete.

Upon motion by Regent Bulla, seconded by Regent DuVal, the Board unanimously approved the FY 2010 State Expenditure Authority, as presented in the Executive Summary.

Update on Arizona University System Architecture Reform Proposals (Agenda Item #12)

Regent Bulla stated that the Board was being asked to discuss the latest proposals of Arizona State University, Northern Arizona University, and the University of Arizona to reform the system architecture to facilitate the achievement of the 2020 Vision goal to attain national competitiveness in the percentage of Arizonans with a bachelor’s degree by 2020. The Board is also being asked to review the universities’ feasibility analyses of the partnership option presented by President Calderón at the June Board meeting.

The university Presidents presented their proposals this morning at the Strategic Planning, Budget and Finance Committee meeting, with a robust discussion following the presentations. The Committee discussed the need to have a methodology to track some of these ideas as they become pilots and the need for additional financial proformas and other tools that can be used to evaluate some very creative ideas.

President Crow provided a brief summary of his proposal. He stated that the university sees the metric targets for the 2020 Plan as very challenging. For ASU to be successful in fulfilling the objectives as outlined by the Board in relation to degree production, the production of bachelor degrees would have to increase by 50%. It would be approximately 1000 new undergraduate degrees per year. To meet this objective, the university would have to work to enhance their own pipeline, work heavily with the community colleges and would have to find ways to deliver additional access points to baccalaureate degree training and various locations, and to strive for enhancements in innovation. ASU's strategy will be to enhance retention, focus on the expansion of programs with community colleges, dramatically enhance the innovation in curricular and other related matters and design and advance an idea for the colleges at ASU as a mechanism to advance undergraduate degree production.

President Crow stated that there were a number of timing constraints, but it is believed that a four-year degree in business communication will begin shortly in partnership with the community colleges and other ideas will be implemented as time goes on.

Regent Bulla stated that the resolution on the Clinical Lab class is a perfect example of how the university, working with the community colleges, can provide more opportunities for students.

President Haeger stated that NAU's efforts including continuing to expand the basic model that NAU has been using for several years to deliver various programs around the state. NAU will be using technology in far more efficient ways than they currently do. The number of on-line programs will increase. One of the things that are being planned at NAU-Yavapai is the building of degrees in a few very structured areas in which the student is actively involved both on site taking classes and taking web-based classes so that the timing of the completion of the degree can be redesigned.

NAU is very involved in rethinking how students enter higher education. The number of high school students that go on to college needs to be increased. The universities need to move students, in large numbers, from the community colleges to the universities. NAU has developed new programs in Yuma and will be offering programs at Yavapai which are related to the communities in which they are located.

What is also being discussed is a finance issue. It needs to be determined if it is possible to lower the cost to the student and to the state while maintaining the quality of the program.

Regent Bulla stated that all three universities were working very hard to enhance the pipeline. We need to get more students to believe they can go to college after high school. Retention is also a major discussion at all three universities.

President Shelton stated that one of the UA's approaches to provide flexible delivery of high impact programs leading to bachelor’s degrees throughout the state will be to increase the number of students. This will be done by developing partnerships with select community college campuses and combining that with electronic and hybrid delivery. One of the keys for the university is the partnership with the community colleges. Access is a keyword for all three universities. The universities need to recognize that the target audiences possess different levels of preparation. The universities need to be flexible. No single degree pathway will meet all of the needs of these students.

The UA's approach is characterized by three points: Delivery of a cost based array of high demand degrees through partnerships with community colleges; with the proper state support, tuition for these programs should be less than main campus programs; and this is not just an advantage for the students in these areas where programs are delivered, but it is a value to the local communities.

Regent Bulla stated that this fall is very important and the Board needs to make certain that there is no duplication of efforts, money is not being spent unwisely, that we know what it will cost and how the universities will find the financing to start some of these pilots. The projects will need to be evaluated to see if they are producing.

Superintendent Horne stated that he had been asked by his office to make a comment on the critical areas for preparing teachers on the three year proposal. One of the areas listed was elementary education and the data indicates that elementary education in general is not a critical area, but rather elementary education with a sufficient education in a specific area so the teacher would be qualified to teach middle school subjects. The other critical areas are special education and high school math and science.

Regent Boice stated that he admired the thinking that has gone on at the universities, but he believes that the avenue that is most current and present is the community colleges. He further stated that the universities are in pursuit of more baccalaureate degrees we should not be diminishing the research side of the university system. He also stated that he believed many of these endeavors will be impossible to pull off without additional funding. The Board needs to pursue funding for the university system independent of state appropriations. The mission of the Arizona Board of Regents is succinctly stated but the mission of each of the universities is different and he believes that the Board needs to insist that each of the universities provide statement regarding how the various plans will support the Board's mission.

Regent Bulla stated that the universities will be looking at their missions and refine them. He believes that the Board knows how important research is and they will not be negated in anyway. Funding is, of course, an issue and will be further looked into this fall by the committee.

Regent DeConcini asked if the costs of the various endeavors that were discussed today have been fully analyzed. He stated that he thought it would be much less expensive to have partnerships with the community colleges than to build new campuses. Regent Bulla stated that this was something that would be looked at more thoroughly by the committee in the near future.

Regent Calderón stated that his idea for the three plus one plan was to provide less bricks and mortar and more fluidity. He stated that he hoped the university presidents would continue to look at ways they might provide three plus one degrees. He also thought it was encouraging when President Crow stated that he was looking at locations where buildings already existed and it is possible that the university will be able to use that space. He stated that this is an evolving process and hopefully there will be a myriad of options to pick from by December.

REPORT ON LUMINA MAKING OPPORTUNITY AFFORDABLE INITIATIVE

Report on Lumina Making Opportunity Affordable Initiative (Agenda Item #13)

Regent DuVal stated that the Board would receive a report on Arizona’s $150,000 planning grant and the application for the 4-year, $2 million implementation grant from the Lumina Foundation for Education Making Opportunity Affordable initiative.

Bob Dickeson and Stephanie Jacobson joined the meeting for this presentation.

Arizona is one of eleven states awarded a $150,000 planning grant to improve higher education productivity, affordability and retention in the United States and is now competing for additional grant money of up to $2 million over a four year period. Regent DuVal stated that he and Karen Nicodemus, the recently retired president of Cochise College, have co-chaired the task force on this grant for several months. The task force is composed of higher-ed individuals, along with representatives from business, the Governor's Office, the universities and the Legislature. The task force has focused on new community college and university partnerships to improve student transfers; a central electronic system for better advising and counseling information; and a better system to track student success among institutions.

At a policy meeting in Denver in June, attended by Regents Calderón, McLendon and Regent DuVal, Lumina upped the ante, expecting the competing states to address a more comprehensive solution to the issue of improving higher education productivity. The task force responded with a five-part plan that will form the basis of Arizona's proposal for the $2 million grant: (1) Implementing the new institutional architecture redesign, proposed by the Council of Presidents which will actually serve as the umbrella for the other components. (2) Completing the original three items in our past year’s work, all which support the system architecture model. (3) Exploring new funding models for public higher education that are incentive based and which will address many of the current problems that Arizona faces. (4) Planning for a new coordination and governance system for the state. (5) Developing a communications and public engagement program to build awareness and help secure support down the road.

The proposal will be sent to Lumina by the September 11 deadline, and notification of who will be receiving the grants should be received on November 15.

Bob Dickeson spoke about student retention. What is exciting about this particular grant is that the Lumina Foundation is wanting to reward the states that have the courage to step forward and seize the opportunities in this impossible time, where most folks are playing “woe is us,” and enable those states that have the capacity to dream and have the vision to put together the pieces to make something different happen. States will need to work smarter and harder to come up with solutions that will make sense and accomplish the necessary goals.

The task force working on this project is a great group of people. The task force has been augmented with additional people from around the state. The universities need to build capacity. Arizona needs to do its part to educate students. The universities will not be able to continue down the same funding formula and expect different results. The Board needs to put in place new ways to look at the coordination and governance of higher education in Arizona. None of this will happen unless we can communicate effectively to the people of this state what the needs are and why it makes sense to invest in education in Arizona.

Bob Dickeson thanked everyone for their cooperation and hard work in this process.

President Calderón stated that, to accommodate Regent Mariucci's schedule, we will be taking the Report from the Audit Committee next.

AUDIT COMMITTEE (Chair: Regent Mariucci)

Report from the Audit Committee (Agenda Item #17)

Regent Mariucci reported on the July 30, 2009 Audit Committee meeting.

She stated that the Audit Committee participated in a new member orientation prior to the start of the regular meeting. The expert community members were present along with the Financial Audit Director from the Office of the Auditor General's office.

The Audit Committee reviewed various internal audit reports. Regent Mariucci stated that she would like for all of the Board members to see audit reports that are more interesting or significant so they can have a better understanding of what is happening.

Regent Mariucci stated that the Hassayampa project audit is completed and resulted in $690,000 being recovered. There is an effort underway to improve the language in construction contracts so that there is one contract model for system-wide use. Another audit that has recently taken place was of research grant accounts at ASU. This report has spotlighted the opportunity to strengthen accounting in the research function.

Regent Mariucci stated that there were a few audits in which the auditors found that there was no policy and procedures related to what they were auditing or the found that policy and procedures were not being followed. The committee determined that in these cases the auditor should postpone the audit, alert management so policies can be implemented, and schedule the audit at a later date.

Auditors, along with university management, are working to develop guiding principles around centralization, streamlining, standardization and outsourcing.

The Committee then reviewed the State Annual A-133 Single Audit. This is where the State Auditor General compiles all of the audit findings for every state agency into one report. The Audit Committee asked university management to recognize the potential consequences of a finding of material weaknesses and the importance of avoiding such findings.

FY10 internal audit plans were reviewed by the committee. There has been much improvement in the process for determining audit plans. The items that the auditors will spend their time on should be the most critical areas.

The Audit Committee also asked the audit staff at each university to look at their roles within each organization. Is the internal audit director reporting to the correct person, at the correct level, do they have the right visibility, voice, recognition and access? The answer was, for the most part yes. Staffing adequacy was also discussed.

The Audit Committee discussed the stimulus money and how the universities are preparing for the receipt of the funds and the necessary compliance reporting.

The Committee also discussed the UA's MOSAIC system development and the level of internal audit involvement as well as the internal system of checks and balances to assure a go or no-go decision is property made.

ACADEMIC AFFAIRS COMMITTEE (Chair: Regent DeConcini)

2009 Annual Report on Wages Earned by Arizona University System Graduates (Agenda Item #14)

Regent DeConcini stated that the Board was being asked to review the 2009 Annual Report on Wages Earned by Arizona University System Graduates. In 2007, individuals who were awarded an undergraduate or graduate degree between 1990 and 2007 earned over $9.4 billion in wages and paid approximately $678 million in state and local taxes.

Dan Anderson joined the meeting for this presentation.

Regent DeConcini stated that Dan has been working with the universities and the Arizona Department of Economic Security for the past several months to develop data about the employment and earning status of Arizona graduates and their financial impact on the state.

Dan Anderson gave a presentation on wages earned by graduates in 2007. Measuring the value of a college degree, both to the student and the State, has been difficult to quantify without detailed data on the earnings of individual students. Data are now available that match individual students to their earnings in Arizona. The report documents the economic contribution of Arizona's universities to improving the skills of the local workforce and to generating higher incomes for graduates.

According to the U.S. Census Bureau 2007 American Community Survey, the median earnings in Arizona of an individual with a graduate degree were $56,110; for someone with a Bachelor's degree, the median earnings were $45,653. By contract, an individual in Arizona with some college but no degree had median earnings of $33,568; a high school graduate had median earnings of $26,906.

In 2007, 190,639 students who graduated from Arizona's public universities between 1990 and 2007 earned nearly $9.4 billion in wages in Arizona and paid an estimated $678 million in state and local taxes. Their annual average wage was $49,292, as compared to $41,551 for all similar workers in Arizona, a difference of 19 percent.

Regent DeConcini stated that he thought this information was very useful and would like to see the development of a pocket card with this information on it for easy access by the Regents when discussing why an education matters.

Revision to Board Policy 4-203 “Requirements for Resident Status” (First Reading) (Agenda Item #15)

Regent DeConcini stated that the Board was being asked to review a proposed revision to Board Policy 4-203 to comply with a recent change in Arizona law.

Nancy Tribbensee joined the meeting for this presentation.

Nancy stated that this policy was being revised to correspond with recent changes to Arizona state law which allows veterans who are honorably discharged in Arizona to be eligible for in-state residency status upon discharge.

Proposed Revision to ABOR Policy 2-102 “Undergraduate Admissions” (Second Reading) (Agenda Item #16)

Regent DeConcini stated that the Board was being asked to approve a proposed revision to ABOR Policy 2-102 on the criteria for assured and delegated admission for Arizona resident transfer students. The Board reviewed this item on first reading at its June 2009 Board meeting.

Stephanie Jacobson joined the meeting for this presentation.

Stephanie stated that this policy revision was reviewed at the June 2009 Board meeting. There was an error in the policy presented for first reading. Students who complete the AGEC with at least a 2.0 GPA were to be identified as eligible for delegated admission. This statement was inadvertently omitted from the June policy write-up, but has been included in this revision.

Upon motion by Regent DeConcini, seconded by Regent Boice, the Board unanimously approved the proposed revision to ABOR Policy 2-102 "Undergraduate Admissions," as presented in this executive summary.

RECESS

The meeting recessed at 4:20 p.m., Thursday, August 6, 2009 and reconvened at 10:20 a.m., Friday, August 7, 2009.

REPORT FROM THE PRESIDENT OF ARIZONA STATE UNIVERSITY

President Crow introduced Provost Elizabeth Capaldi, ASU, who provided a presentation on student retention, showing the interactive tools, guides and services (e-advisor) that are available to assist students at Arizona State University with determining what classes are necessary for what majors. Student retention improves as the students ability to determining where they stand (in relation to what classes are needed for a major), and what they need to do to get where they want to be at the university is made simpler and easier. This system could be adapted to that he could be used statewide, for community colleges and high schools.

CAPITAL COMMITTEE (Chair: Regent McLendon)

Regent Calderón stated that Regent Boice, in Regent McLendon's absence, would be chairing this portion of the meeting.

Health and Learning Center Project Approval (NAU) (Agenda Item #18)

Regent Boice stated that Northern Arizona University was requesting Project Approval for the Health and Learning Center project.

The project costs have been reduced by $9.1 million to $106.7 million and include demolition of Lumberjack Stadium, renovation of 39,226 square feet of the existing recreation facility, site work encompassing 16,000 square feet, and construction of 228,000 square feet of new classroom, athletic, recreation, and health services space. The project will be financed with 30-year System Revenue Bonds to be repaid from the wellness fee, tuition revenues, and possibly the Technology and Research Initiative Fund.

Jane Kuhn and Lorenzo Martinez joined the meeting for this presentation.

Upon motion by Regent Boice, seconded by Regent Bulla, the Board unanimously approved Northern Arizona University's request for Project Approval for the Health and Learning Center project, as presented in the Executive Summary.

Issuance of System Revenue Bonds for Financing of the Health and Learning Center, Northeast Campus Utility Extension, and Relocation of the Police Department Facility (NAU) (Agenda Item #19)

Regent Boice stated that Northern Arizona University was requesting authorization (a) to sell one or more series of System Revenue Bonds (SRBs) to produce sufficient proceeds to finance (1) not to exceed $113.9 million for the Health and Learning Center, Northeast Campus Utility Extension, and Relocation of the NAU Police Department Facility; (2) not to exceed $1,460,000 for costs of issuance; and (3) payments to a bond insurer or other credit enhancer provided such payments provide a benefit that exceeds the amount of such payments; (b) to sell such Bonds at a price at, above or below par and at fixed rates of interest; (c) to take related actions; and (d) to enter into necessary agreements and to execute all necessary documents including those related to bond insurance or other credit enhancement agreements.

While this is a significant issuance, NAU will remain below the debt ration limit; however, given the current budget situation, the Board needs to make sure each university continues to monitor the debt ratio impacting resulting from any budget changes.

Jane Kuhn, Bob Norton and Lorenzo Martinez joined the meeting for this presentation.

Upon motion by Regent Boice, seconded by Regent Leonard, the Board unanimously approved Northern Arizona University's request for approval to issue System Revenue Bonds to finance the Health and Learning Center, Northeast Campus Utility Extension, and Relocation of the Police Department Facility as presented in the Executive Summary.

Real Property Exchange with Fraternities on Alpha Drive (ASU) (Agenda Item #20)

Regent Boice stated that Arizona State University was requesting approval to execute necessary agreements to effectuate a land exchange for all or a portion of the eight privately-owned Alpha Drive properties located within Arizona State University’s Alpha Drive area to implement the ASU Tempe Campus Master Plan through redevelopment of Alpha Drive into a sustainable, vibrant Greek village. In the event an exchange agreement cannot be executed within ninety days, Arizona State University will submit a request for Board approval to purchase the properties, including the use of eminent domain, if necessary.

Morgan Olsen, Steve Nielsen and Lorenzo Martinez joined the meeting for this presentation.

Upon motion by Regent Boice, seconded by Regent Bulla, the Board unanimously approved Arizona State University's request to execute the real property exchange on Alpha Drive within 90 days of this approval, as presented in the Executive Summary, including the stipulations that in the event the exchange cannot be executed within the 90 days the Board approval for the exchange is revoked and Arizona State University would be required to seek separate Board approval if it plans to pursue the purchase of the properties, including the use of eminent domain, if necessary.

Regent Calderón thanked Regent Bulla for his hard work on the negotiations for this property exchange.

Lease of Space from the City of Phoenix in the College of Nursing and Healthcare Innovation Phase 2 Building at the Arizona State University Downtown Phoenix Campus (ASU) (Agenda Item #21)

Regent Boice stated that Arizona State University was requesting authority to exercise the option to lease from the City of Phoenix the fifth floor (16,800 square feet) of the phase 2 building of the College of Nursing and Healthcare Innovation at Arizona State University at the Downtown Phoenix campus, including an IGA and a facilities use agreement, as well as other necessary and proper agreements, documents, and instruments, to take occupancy of the premises.

Morgan Olsen, Rich Stanley and Lorenzo Martinez joined the meeting for this presentation.

Upon motion by Regent Boice, seconded by Regent Leonard, the Board unanimously approved Arizona State University's request to exercise the option to lease the 5th floor of the phase 2 building of the College of Nursing and Healthcare Innovation from the City of Phoenix, as presented in the Executive Summary.

HUMAN RESOURCES COMMITTEE (Chair: Regent Bulla)

Multiple-Year Employment Contract for Head Men’s Basketball Coach (ASU) (Agenda Item #22)

Regent Bulla stated that Arizona State University was requesting approval of a one year extension and certain other amendments to the Multiple-Year Employment Contract for Herbert Sendek to serve as Head Coach of its Men’s Basketball Team through June 30, 2014.

President Crow stated that Coach Sendek is doing a fantastic job with both the academic and athletic aspects of evolving men's basketball to a PAC-10 competitive team.

Upon motion by Regent Bulla, seconded by Regent Leonard, the Board unanimously approved the extension and certain other amendments to the multiple-year employment contract for Herbert Sendek, as Head Coach of the Men's Basketball Team at Arizona State University, according to the terms and conditions set forth in the Executive Summary.

REPORT FROM THE ARIZONA FACULTIES COUNCIL

Dr. William Culbertson gave the Arizona Faculties Council report. He stated that the Arizona Faculties Council reaffirmed its support for building stronger relationships with Community Colleges and also noted that they have a long history of working with the Community Colleges. They also reaffirmed their commitment and willingness to drive innovation in the new system architecture redesign through curriculum development and delivery.

PUBLIC AWARENESS & LEGISLATIVE AFFAIRS COMMITTEE (Chair: Regent DuVal)

Update on Public Affairs and Solutions Through Higher Education (Agenda Item #27)

Regent DuVal presented an update on public affairs activities and Solutions Through Higher Education.

Andrea Smiley joined the meeting for this presentation.

Regent DuVal stated that efforts are underway to host a business roundtable in Tucson in late September in partnership with the Southern Arizona Leadership Council regarding system architecture and reform. This roundtable will be the prototype for similar discussions with business communities in Flagstaff, Phoenix, and Yuma between now and the end of the year.

Efforts are continuing to add more coalition members. In the near future Solutions will host booths at all three universities' homecomings, as well as participating in the Breast Cancer Walk in October. Solutions has spent time this summer updating and cleaning up the coalition's database to ensure that coalition members data is correct and complete.

Andrea Smiley stated that the ABOR website is being redesigned and she hopes to share it with the Regents at the next Board meeting.

Report on Legislative Activities (Agenda Item #28)

Regent DuVal reported on the Legislature’s Regular Session that ended July 1, 2009, and the Special Session that began July 6, 2009.

Christine Thompson and Greg Fahey joined the meeting for this presentation.

Regent DuVal stated that during the regular session, from January through June, relatively few pieces of legislation were enacted – with only a handful impacting the university system. The Board materials include a list of those new laws. At the close of the regular session, the Governor used her veto authority to strike several funding provisions in the budget, as well as all of the legislation containing budget reconciliation and policy issues.

The Governor has been an ally to education and the universities and the Board would like to recognize her commitment to higher education.

The Governor called the Legislature into special session in early June to deal with a referral of a tax increase and the enacted State budget that contains a deficit approaching $3 billion. Last week the Republicans attempted to pass a slightly revised budget, but to date the Senate could not garner enough votes to pass the package.

Report on National Higher Education Issues (Agenda Item #29)

Regent DuVal stated that the Board would be receiving a report on higher education issues at the national level.

Stu Hadley, Executive Director of Federal Relations at ASU, and Christine Thompson joined the meeting for this presentation.

Regent DuVal stated that the Board materials contain information about recent developments in the federal budget impacting higher education and about the recent American Graduation Initiative announced by President Obama last month. Recognizing at the national level some of the same obstacles the Board is trying to address through Solutions and 2020 Vision, President Obama has set a goal of adding 5 million community college graduates by 2020.

Christine Thompson stated that the FY10 Appropriations Act is moving forward. There are twelve appropriations bills, each with federal grant implications for the universities and the Federal Relations teams at the universities are keeping tabs on all those pieces of legislation as they move through the process.

Of particular interest is the Labor, Health and Human Services and Education appropriations Act that has been moving forward. Currently the act includes $194M increase for higher education programs; $478M for student aid programs; support, coupled with the College Reduction and Access Act of 2007, for a Pell grant award of $5550; and level funding for the Federal Work Study Program and the Leveraging Education Assistance Program (LEAP).

President Obama announced the American Graduation Initiative, a 10-year $12B plan to invest in community colleges.

Stu Hadley stated that concerned that the nation's research universities might be a risk, a bipartisan group of four congressional leaders sent a question to the National Academies which asking what are the top ten actions that Congress, state governments, research universities, and others could take to assure the ability of American research universities to maintain excellence in research and doctoral education need to help the United State compete, prosper, and achieve national goals for health, energy, the environment, and security in a global community of the 21st century.

The next step is the National Academies will create a panel to come up with a response to those questions. A similar request was made in 2005. The result of that request was a report entitled Rising Above the Gathering Storm - which ended up becoming the rallying point for university advocacy efforts as well as private sector advocacy efforts. It is hoped that this new report will lead to another five years of assistance for the university community to advance innovation and competitiveness.

President Shelton stated that this charge to the National Academies is very important. The United States needs to get back on track with a combination of higher education and industrial might.

Regent Crow stated that Stu Hadley is a fantastic asset to ASU. He is engaged on all aspects of advancing education in Washington D.C. One of the things that had been going on in the Department of Energy is the selection of 46 frontier energy research centers around the United States. Both Arizona State University and the University of Arizona were selected to receive $15-20M.

INQUIRIES, REQUESTS, REPORTS, AND COMMENTS FROM REGENTS AND MEMBERS OF THE COUNCIL OF PRESIDENTS

President Calderón stated that the Board would be having a half day business review at each Board meeting to look at each university's goals, their metrics, their progress, the financial health of each institution, their fidelity to the missions that have been prescribed for them. The first review will be in January for Arizona State University, followed in March for the University of Arizona and June for Northern Arizona University. The measurements will be developed under the leadership of Regent Mariucci.

President Calderón thanked Arizona State University for their graciousness and another great meeting.

ADJOURNMENT

The meeting adjourned at 11:35 a.m.

SUBMITTED BY:

Margaret Martin
Secretary to the Board

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