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ARIZONA BOARD OF REGENTS
MINUTES OF A MEETING
September 26 and 27, 1996
Table of Contents
REPORT FROM THE ARIZONA FACULTIES COUNCIL
Annual Update of Universities' Five Year Strategic Plans
Plan for Collaboration in Technology Delivered Education
REPORT FROM THE PRESIDENT OF THE UNIVERSITY OF ARIZONA
REPORT FROM THE PRESIDENT OF ARIZONA STATE
UNIVERSITY
REPORT FROM THE PRESIDENT OF NORTHERN ARIZONA UNIVERSITY
STUDY SESSION: CAPITAL DEVELOPMENT PROCESS
Process to Gauge the Quantity, Quality, and Utilization of Space
Planning Processes for Capital Projects
Annual Assessment of Debt Capacity
Forecasting and Planning for Growth in Enrollment
RESOURCES COMMITTEE AGENDA
1998-2002 Capital Improvement Plans
FY98 State Operating Budget Requests
Status Report on Development of Proposal to Restore
Competitiveness to Universities' Salary Structure
Multi-Year Employment Contract with Head Baseball Coach
(UofA)
Amendment of Multi-Year Contract with Head Baseball Coach
(ASU)
Multi-Year Employment Contract with Women's Head
Basketball Coach (ASU)
PROGRAMS COMMITTEE AGENDA
Presentation on Arizona Education Demographics and Implications for Early
Awareness
Presentation by Dr. Harold Hodgkinson
Panel Discussion Regarding Implication for Arizona's
Universities
Amendment to Board Policy 4-302, Non-Resident Tuition
Waivers (First Reading)
Proposal to Establish the Center for Low Power Electronics
(UofA and ASU)
REPORT FROM THE EXECUTIVE DIRECTOR
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MINUTES OF A MEETING
ARIZONA BOARD OF REGENTS
September 26 and 27, 1996
A meeting of the Arizona Board of Regents was held on
September 26 and 27, 1996, in the Rincon Room of the Student Union at the
University of Arizona, Tucson, Arizona. President Elect Campbell called the
meeting to order at 10:50 a.m. on September 26.
PRESENT: Regent George H. Amos, III
Regent Eddie Basha
Regent Rudy Campbell
Regent Arthur Chapa (Friday only)
Regent Judy Gignac
Regent John Munger
Regent Jonathan Schmitt
Regent Don Ulrich
ABSENT: Regent Kurt Davis
Regent Fife Symington
Regent Lisa Graham Keegan
Also present were: President Manuel Pacheco, Dr. Paul Sypherd, Dr. Saundra
Taylor, Mr. Joel Valdez, Dr. Martha Gilliland, Dr. Michael Cusanovich (Thursday
afternoon), Dr. Celestino Fernandez (Thursday afternoon), and Mr. Greg Fahey,
University of Arizona; President Lattie Coor, Dr. Milton Glick, Dr. Christine
Wilkinson, Mr. Jennus Burton, and Mr. Allan Price, Arizona State
University; President Clara Lovett, Dr. Charles Connell, Dr. Jeanette
Baker, Ms. Sharon Marmaduke (Thursday only), Mr. A. Dean Pickett (Thursday
only), Mr. Sam Polito, and Mr. Norm Hintz (Thursday only), Northern Arizona
University; Executive Director Frank Besnette, Board Counsel Joel Sideman,
Secretary to the Board Judy Garza, Dr. Mary McKeown, Dr. Thomas Wickenden,
Mr. Tony Seese-Bieda, and Ms. Norma Salas, Central Office; and Dr. John
Schwarz, Chair of Arizona Faculties Council.
All lists, reports, summaries, background materials, and other documents
referred to in these minutes can be found in the September 26 and 27, 1996,
Documents File.
Regent Basha led the Pledge of Allegiance.
President Elect Campbell announced that President Munger was representing the
Regents at a portion of the Arizona Minority Education Policy Analysis Center's
Conference. He was serving on a panel that was discussing Arizona educational
demographics and its implication for early awareness. It was expected that
President Munger would join the meeting after lunch.
CALL TO THE AUDIENCE
President Elect Campbell announced the Board was instituting a new protocol for
Call to the Audience. Since this portion of the meeting exists to provide an
opportunity for people to address the entire Board in a public setting to
express their views or concerns, the Board asks that people refrain from reading
letters on behalf of others who are not able to attend in person. Letters can
always be mailed directly to Board members or sent to the Central Office for
distribution to the Board.
Mr. Marc Baumgartner, ASU Student Body President, raised some concerns
about instituting a community service requirement for non-resident students who
receive tuition waivers. He asked what would constitute community service, who
would monitor the programs, what the cost would be, and if there would be a
special placement office. He told the Regents the students at ASU could not
support this proposal without more information to make sure the money would not
be better spent elsewhere.
Dr. Pat Dallabetta, Superintendent of Tanque Verde Unified School
District, spoke in support of Northern Arizona University's Center for
Excellence in Education.
Dr. Tom McPoil, NAU Interim Dean of the College of Health Professions,
spoke about issues that had been raised about the Food and Nutrition Science
Program at previous meetings. He said the Food Science Emphasis, one of the five
emphasis areas offered by this program, has never been promoted or advertised as
a specific major or as a program accredited by the Institute of Food Technology.
However, the small number of graduates who chose this emphasis have been hired
at a high rate by the food industry.
Mr. Clyde Phillips, a former teacher, asked the Regents to direct the
Colleges of Education at the three universities to institute a study concerning
how English should be taught to minority students in grades K-12.
Dr. Robert Mena, Vice President of Student Services at Cochise College,
spoke in support of the Center for Excellence in Education at Northern Arizona
University.
Dr. Barbara Ganz, a Dean at Pima Community College, spoke in support of
the Doctoral Program in Education Leadership at Northern Arizona University.
Ms. Debra Culbertson said her husband entered the ASU pilot training
program approximately two years ago with the belief this program would provide
direct entry to an airline crew position. The cost is higher than similar
programs elsewhere, but she said her husband was led to believe this program
would lead to employment with United Airlines. They have incurred a large debt
to pay for his schooling and the airline is not accepting him for employment.
She asked the Regents to look into the matter.
Members of the Pima County Interfaith Council
Ms. Rosario Otero explained the Pima County Interfaith Council is a
diverse organization composed of over 60,000 families. They consider education
one of the most important issues for their families. They are concerned about
the small number of Tucson area high school graduates that attend the University
of Arizona. She asked for support for students who graduate with an associates
degree from a community college.
Ms. Debbie Johnson said there is a perception that people on the South
Side do not expect their children to attend the University of Arizona and this
is not true. The community demands a collaborative relationship between the
Regents and the community and that the University of Arizona participate in the
strengthening of the relationships between all Tucson high schools and the
university to make sure the public resources are not just flowing to the
northwest side of Tucson.
Ms. Lita Barfis asked for more programs to support freshmen to help them
make the difficult transition from high school to college to cut down on the
dropout rate.
Ms. Lillian Singleton said she would like to see more teacher aides
accepted into the college program for teachers as she believed they would then
remain in the community to teach, and she asked the University of Arizona to
take more interest in this problem. She also said the new Arizona International
Campus is not accessible. She wants the permanent site selection for the new
campus to involve a collaborative community process.
Ms. Rosario Otero (Continued) asked the Board to support and fight for
the higher educational needs of families in the areas of recruitment, retention,
and outreach. She asked for a response from the Board, in writing prior to
October 20, to the issues raised by the Council today. She also asked for a
representative from the Board of Regents to meet with them within one week and
for a representative from the Council to be part of a committee to pick the
permanent site of the Arizona International Campus. She also asked for someone
from the Board to meet with the group on October 20.
CONSENT AGENDA
The items on the Consent Agenda, which are marked in these minutes with an *,
were considered as consent matters and were adopted unanimously upon motion of
Regent Basha, seconded by Regent Amos. There was no individual discussion of
these items.
*Minutes
The Board approved the August 20 and 21, 1996, Regular Meeting, the July 3,
1996, Special Executive Session, and the June 27, 1996, Executive Session
minutes.
Strategic Planning Committee Consent
*Arizona Board of Regents Action Plan for 1996-97
The Board approved the Arizona Board of Regents Action Plan for 1996-97 as
submitted in writing. The Plan contains 15 objectives.
Resources Committee Consent
*Semi-Annual Report on Construction Projects Over $1M
The Board received a written report on construction in progress with a total
project cost of $1M or more. Arizona State University reported no projects in
this category that are under construction. Northern Arizona University reported
substantial completion of the Electrical Distribution System Upgrade and
reported it planned to begin construction during fiscal year 1997 on the
Biology/Biochemistry Facility Addition, the Eastburn Building Renovation, and
the Replacement Building for parking services, visitor services, and human
resources. The University of Arizona reported substantial completion of the
Veterinary Diagnostic Laboratory building and nine projects in progress valued
at $27,500,000.
*Annual Building Inventory Report
The Board received a written summary of the Annual Building Inventory Report.
The university system owns a total of 1,757 buildings with an estimated
replacement value of $3,361,950,224.
*Internal Audit Reports
The Board accepted the written internal audit reports on the following three
areas as submitted: Stores (ASU)--no findings reportable to the Board and
three internal recommendations presented to university administration; Local
Area Network and Student E-Mail Service (NAU)--no findings reportable to the
Board and four internal recommendations presented to university administration; Athletic
Ticket Office (UofA)--no findings reportable to the Board and three internal
recommendations presented to university administration.
*Additional Optional Retirement Program (ORP) Products for VALIC and AETNA
The Board approved the addition of the GET fund from Aetna and the restructuring
of the VALIC Portfolio Director product to add Portfolio Director 2, in addition
to the existing Portfolio Director, for the Optional Retirement Plan.
*Agreement with Arizona Department of Economic Security for School of Social
Work (ASU)
The Board ratified the Interagency Services Agreement with the Arizona
Department of Economic Security (DES)on behalf of the ASU School of Social Work
Masters Program. This program has been funded by DES since 1991 with the goal of
preparing a selected group of students in the Master of Social Work program for
practice in public child welfare services. The full amount of funding is
$1,160,594 for the period August 16, 1996, through August 15, 1997.
*Contract with Esen Ozel Egitim Ogretim, A.S. (ASU)
The Board approved a contract between ASU and Esen Ozel Egitim Ogretim, A.S., a
private Turkish educational corporation. ASU was authorized to issue subsequent
subcontracts, including the intergovernmental agreement with Louisiana State
University, and to take such actions as are necessary to implement the
provisions of these agreements. ASU will provide overall project
management/administrative services which will permit Cakabey Higher Education
Programs, a subsidiary of Esen Ozel Egitim Ogretim. A.S., to deliver classes in
International Business through the accreditation of Louisiana State University.
The project will start in the fall of 1996 and continued through the summer of
2001. The full amount of funding is $5,636,317 for a five-year period.
*ASU Research Park Annual Report for 1995/96
The Board received a written report on ASU Research Park for 1995/96.
*Contract with the Republic of Korea Electronics and Communication R&D
Center (UofA)
The Board authorized the University of Arizona to enter into an agreement with
the Republic of Korea Electronics and Communication R&D Center to design an
electro-optical satellite system for South Korea to fulfill functional
applications in the field of land observation and environmental survey in the
Korean Peninsula. The contract is for the amount of $5,000,000 for the period
ending December 31, 1999.
*Subcontract with Spectrum Astro Incorporation (UofA)
The Board authorized the University of Arizona to enter into a subcontract with
Spectrum Astro Incorporation of Phoenix, Arizona, for assistance in the design
and technology transfer associated with an electro-optical satellite system for
South Korea. The amount of the subcontract is $2,500,000 for the period ending
December 31, 1999.
*Sale of Land at Kinney and Bopp Roads, (UofA)
The Board authorized the University of Arizona to advertise and sell at auction
the approximately 289 acres of undeveloped land located at Kinney and Bopp
Roads, located in the south half of Section 26, T 14 S, R 12 E, Gila and Salt
River Base and Meridian, Pima County, Arizona, more fully described as Parcel
212-27-003B, Parcel 212-27-003d, and Parcel 212-27-003E. An updated appraisal
has been ordered; the opening bid at auction will be no less than current
appraised value; and the sale is subject to approval of legal documents by
University Counsel.
*Settlement of Kiziria vs. Arizona Board of Regents (UofA)
The Board authorized the University of Arizona to settle Kiziria vs. Arizona
Board of Regents, provided the written settlement agreement with respect
thereto be in a form acceptable to University Counsel and Board Counsel, and
that no payment be made by the University until such agreement is executed. The
university will pay $55,000 and State Risk Management will pay $10,000.
*Disclosure of Substantial Interest for Employee Eugene W. Myers, Jr., in
MacMolecule Ventures (UofA)
The Board authorized the University of Arizona to permit Dr. Eugene W. Myers,
Jr., Professor of Computer Science, to establish and maintain a substantial
interest in MacMolecule Ventures while continuing his employment at the
University of Arizona.
*Disclosure of Substantial Interest for Employee Richard B. Hallick in
MacMolecule Ventures (UofA)
The Board authorized the University of Arizona to permit Dr. Richard B. Hallick,
Professor of Biochemistry, to establish and maintain a substantial interest in
MacMolecule Ventures while continuing his employment at the University of
Arizona.
REPORT FROM THE ARIZONA FACULTIES COUNCIL
Dr. John Schwarz informed the Board of the ranking of the Arizona universities
by the U.S. News and Work Reports and the Chronicle of Higher
Education.
STRATEGIC PLANNING AGENDA
Regent Ulrich chaired this portion of the meeting.
Annual Update of Universities' Five Year Strategic Plans
President Coor reported ASU had met or exceeded every goal for 1995-96 for ASU
Main and ASU West, including the goal of externally funded research. The
principal items for 1996-97 are to continue to strengthen undergraduate
education, graduate education and research, to effectively manage the enrollment
profile, to enhance research and creative activities, and to advance the
university and community through partnerships. He briefed the Regents on ASU's
new plan, The University for the Next Century.
President Lovett reported NAU was achieving most of its benchmarks and was fine
tuning in some areas to accomplish its goals of maintaining and strengthening
the character of the Mountain Campus as a premiere residential campus with an
undergraduate focus and NAU's statewide mission with the emphasis on delivery of
programs to rural areas and on partnerships with community colleges. Benchmarks
have been achieved or exceeded in the percentage of freshmen and sophomore new
students to the Mountain Campus who are taught by full-time ranked faculty and
the percentage of students at the junior and senior level who share in some kind
of research experience mentored by faculty. The number of residence halls being
renovated and reorganized is on track. The three-year baccalaureate program is
in place and the honors program has been redesigned. By the end of this academic
year, networking will be in place with all counties in the state except Cochise
County.
President Pacheco reported the University of Arizona continues to focus on the
five transformational goals that were established earlier. An environmental scan
that involves a large spectrum of the university community has been added to
assess the University of Arizona's future. The index score for leadership was
dropped because it was not clear it would measure the desired progress--it was a
quantitative review rather than a qualitative review. Also eliminated was the
tracking of the program reviews in both the academic and non-academic areas as
it was not clear it would help to measure progress in the manner needed. In the
Arizona Health Sciences Center, measures were added to help track progress in
achieving an environment that better supports the people who work there. The
Sierra Vista changes involved updating figures and editorial changes. The
Arizona International Campus changes incorporate some academic curriculum and
assessments statements the Board approved during the last several months.
Regent Gignac commented that she liked the summary pages provided by Northern
Arizona University in regard to meeting the achievement of the different goals.
She also commended the University of Arizona for its environmental scan.
Plan for Collaboration in Technology Delivered Education
Dr. Martha Gilliland, Dr. Paul Sypherd, Dr. Charles Connell, Dr. Milton Glick,
Mr. Bill Lewis, ASU, and Ms. Mely Tynan, UofA, joined the meeting for this
discussion. Dr. Gilliland told the Board the university presidents and the
Executive Director had appointed a representative to the Arizona Systems
Planning Group and the group met with the Arizona Learning Systems (ALS) group.
There had been a commitment to participate as a full partner with the ALS on the
Request For Information (RFI) process.
In response to the memo from Regent Davis, which asked for the universities to
move ahead with an organizational structure and steering committee, Dr.
Gilliland asked, on behalf of the universities, that the three Provosts and a
representative appointed by the Executive Director be appointed as a task force.
The task force will appoint a work group and will present to the Board at the
December meeting a more fully-developed plan for collaborative,
technology-delivered education by Arizona's public universities. It will report
regularly to the Board on the implementation of this plan.
The Tri-University Master of Engineering Program will be the first
technologically delivered program to be implemented. A retreat of the Deans from
the three universities is scheduled for early November. A retreat for interested
faculty from the three universities will also be held and a call for
collaborative programs across the three universities will be issued. The work
group will be analyzing costs and policy issues as the prototypes emerge, with
the expectation of launching a number of additional programs at least by summer,
possibly earlier.
Regent Ulrich asked Dr. Gilliland to define the difference in delivery processes
among the Virtual University, the ALS, and the system in place at Northern
Arizona University. She answered the Western Governor's Virtual University is
evolving more towards a process of brokering courses that have been qualified
for competency based education toward degrees; the emphasis is not on technology
delivered mechanisms. The ALS is more focused on a technology delivered program
with the idea of using existing networks, including NAU's microwave network as
well as the Internet, to deliver courses or entire programs. The ALS will build
in the different strengths of each university and each community college. The
ALS RFI is to determine what infrastructure would be needed.
Regent Ulrich asked for a characterization of the industry
today in terms of hardware and software. Dr. Gilliland said industry is
struggling as much as the universities in trying to determine what the
telecommunication environment will be in the future and with regulatory
questions such as whether the band width needed to support technology will be
carried by cable companies or supported in some public way. Ms. Mely Tynan, UofA,
added that universities have been the pioneers in Internet use and industry is
using this as a model for infrastructure. Mr. Bill Lewis, ASU, said the real
issue is determining appropriate infrastructure technology for the various uses.
He also announced that ASU has been asked to take the lead in the RFI process
for the ALS. Melanie said both hardware and software are changing so rapidly it
is a challenge to decide how to plan for the prudent financial use of both. The
collaboration seen in the ALS will allow for the leveraging of resources across
the universities and the community colleges.
Regent Gignac asked Dr. Gilliland to expand on her statement about the Western
Governor's brokering of courses. Dr. Gilliland answered that the last update
from the group was that the staff members are working toward starting with
courses that would lead to an Associate degree and possibly some electronic
certification programs. They will be issuing a Call for Proposals asking for
proposed courses or modules that are competency based. The Western Governor's
University would then issue the degree. Each state would have some approved
centers where students could come for student services for things like financial
aid. Regent Gignac said it was her understanding the ALS would have service
centers, also.
President Munger joined the meeting. President Elect Campbell said he was
hearing the Board was comfortable with the action plan and proposed composition
of the task force as presented in the recommendation.
REPORT FROM THE PRESIDENT OF THE UNIVERSITY OF ARIZONA
President Pacheco reported a reduction in numbers and an increase in quality in
students enrolled at the UofA for the Fall term. He announced two new national
centers that will be supported by a combination of government and corporate
funds--the Center for Environmentally Benign Semi-Conductor Manufacturing in
partnership with Stanford University and the Massachusetts Institute of
Technology and the Center for Low Power Electronics in partnership with Arizona
State University.
REPORT FROM THE PRESIDENT OF ARIZONA STATE UNIVERSITY
President Coor reported on an increase in both quality and numbers of students
enrolled at ASU for the Fall term. He announced the Truman Scholarship Group had
selected ASU as one of the 17 schools nationwide called an Honor Institution and
that Paul Ward, ASU General Counsel, has been elected President of the National
Association of College and University Attorneys.
REPORT FROM THE PRESIDENT OF NORTHERN ARIZONA UNIVERSITY
President Lovett reported a decline in the number of students enrolled at NAU
for the Fall term due, at least in part, to the change in requirements for
masters degrees in education in Arizona. Dr. Lovett said she believed the ALS
RFI will show the State of Arizona already has technology capability due to the
NAU Net and the technological interface will not be as difficult as expected
because of this capability. The real challenge for the universities and the
community colleges will be in manpower development and how to respond to
providers coming into Arizona.
The meeting recessed at 12:40 p.m. and reconvened at 1:54 p.m. President Munger
assumed the chair of the meeting.
STUDY SESSION: CAPITAL DEVELOPMENT PROCESS
Regent Amos chaired this portion of the meeting.
Process to Gauge the Quantity, Quality, and Utilization of Space
Ms. Mercy Valencia, UofA Director of Space Management, reported to the Board on
the Space Utilization Guidelines that were developed for the Arizona
universities in support of the Arizona Board of Regents' Space Utilization 7-11
Report. The Board receives the report in May to demonstrate the utilization of
space at each of the campuses. National guidelines are also applied to the
current space to determine if the universities have adequate facilities.
Regent Amos said he believed the national standard of 60% use time was too low
and the universities should see if they could move that standard to 80%, perhaps
by using the buildings from 7 to 10 and weekends. This should reduce the space
shortage and might result in fewer new buildings being built. Ms. Valencia
replied the measurements were applied to the contact hours generated from 7 a.m.
to 5 p.m.; it doesn't reflect the actual utilization that occurs after hours.
Regent Basha said he believed the Guidelines were outdated and a new set should
be developed called Utilization of Space Daily, Evenings, and Weekends (USDEW).
He said he did not believe the models were realistic and he believed the space
should be utilized over a greater period of time. He does not believe the state
has the luxury of building any buildings except those that are absolutely
necessary.
Regent Schmitt reminded the Regents ASU has a goal of better serving the
Metropolitan Area by alternative delivery systems, which include evening and
weekend programs. He believed there should be some system of space utilization
that could gauge the progress being made on that goal.
Regent Gignac asked about usage of classroom space for activities other than
scheduled classes. Ms. Valencia said a report had been presented to the
Regents five years ago, but agreed it is time to update the information. Regent
Gignac said she would be more comfortable knowing what the actual use of the
rooms is before changing the standards.
President Pacheco said classes can be offered after 5:00 p.m.; however, students
will not necessarily attend classes at that hour as they are doing other things
then such as completing laboratory assignments and working part time jobs. The
end result could be a complaint about the lack of class availability. Regent
Schmitt agreed that students currently prefer morning classes, but he believed
many students would be flexible enough to move to classes at a different hour.
Regent Amos said he believed working people would prefer
the chance to attend classes at night. He suggested there might need to be a
focus group or study to see what the wants and needs of the customers (students)
really are.
Regent Ulrich commented that the documents show 9.8% of the total space is
allocated for classroom space, research space is around 30%, and the balance is
office space. He does not believe the university system has credibility because
the numbers demonstrate too little classroom space. He would like to verify that
the building usage and the capital plan present the best possible utilization of
the universities' resources. He believes this issue is linked to every other
issue in the university. The legislature will also want to know if enrollment
projections are correct, how the virtual university will affect space needs of
the future, and the impact of bonding on tuition.
Regent Ulrich suggested the Greater Phoenix Leadership be asked to provide
people from the private sector who understand space and asset utilization to
help the universities do a study to determine if capital needs are being
properly provided for. Besides the private sector people, he suggested the study
group also be composed of the people from the universities that deal with these
issues plus Mr. Peter Burns from the Governor's office and Mr. Ted Ferris from
the Joint Legislative Budget Committee. He suggested a three-month time frame
for the study. He said this would provide a different perspective, allow people
inside the university to understand how these things are done in the private
sector, and help the private sector people understand the universities.
Regent Ulrich moved the above and Regent Basha seconded the motion. President
Coor said this will be very difficult to do in three months because it is a
complicated matter, but he presumes the study group will be willing to look at
data already available. He hopes the group will not only look at the utilization
of rooms by scheduled classes, but will also consider the usage of the rooms for
other teaching related activities. He urged that the university people be
utilized as resources, but not be part of the study group. He believed the
credibility would be highest if the study group is composed only of private
sector people; however, ASU stands ready to participate in any helpful way.
Regent Amos said he believed the needs of the customers should also be included
in the study. It sounds good to say just add classes at nights, but nothing will
be gained if the students won't use night classes. Regent Ulrich said he
believed that should be done in the context of the empirical data.
Regent Campbell asked if night and weekend or Saturday classes had been expanded
as part of the enrollment growth strategy. President Coor answered that had
happened and they were continuing to expand in this direction. President Pacheco
said he would support an objective process to determine capital needs and to
restore credibility and would welcome the involvement of the private sector. He
asked that people from the private sector in Tucson be included in the study
group and Regent Ulrich answered that was part of the plan. Dr. Pacheco
suggested, to maintain credibility within the university community as well as
outside, the study group be limited to people from the private sector and that
people from the Governor's office and the JLBC enter the process at a later
date. Regent Amos said he believed the intent of the motion was to include
university and government people as part of the study group. The motion passed
by unanimous voice vote.
Planning Processes for Capital Projects
Mr. Jennus Burton presented a brief overview of the Board's capital planning
process. He explained that the current process and the Cost Control Guidelines
were developed with the help of a consultant. The objectives of the capital
development process are: 1) to systematically identify, justify, and prioritize
the projects; 2) to clearly delineate requirements for Regents' approval; 3) to
develop detailed information required for project approval, including accurate
cost estimates; 4) to insure quality projects are constructed in proper
sequence; 5) to strengthen the university accountability; and 6) to focus the
Regents' involvement by reviewing major projects at key junctures.
Regent Amos said project initiation is the most important step in the process as
far as the Regents are concerned. Once a project receives project initiation, it
is difficult to stop. He believed the current process is a good one; but Regents
should focus more closely on project initiation.
Annual Assessment of Debt Capacity
Dr. Brian Gregory, Central Office, told the Board a debt capacity report is
submitted annually by each university with the Capital Improvement Plan (CIP) to
illustrate each university's ability to finance the additional capital
construction proposed in its CIP. The reports are developed by looking at
historical and current data in terms of revenues and expenditures and projecting
revenues and expenditures over ten years.
Regent Schmitt said it was hard to compare the universities since each one uses
a different method of calculating the academic bond service as a percentage of
tuition and fees. He suggested the total university generated revenue, which is
presented to the Regents in June as part of the budget process, be used to
calculate this figure.
Forecasting and Planning for Growth in Enrollment
Executive Director Besnette reminded the Board it had adopted its Enrollment
Growth Plan four years ago after the Enrollment Growth Planning Commission, a
group that included legislators, community people, Regents, and university
people, had studied the issue. The Plan was based on a forecast of enrollment
demand that was established with the help of a nationally known consultant. The
demand figures were reviewed and modified last year to represent today's best
thinking.
RESOURCES COMMITTEE AGENDA
Regent Amos chaired this portion of the Agenda.
1998-2002 Capital Improvement Plans
Dr. Gregory, Mr. Norm Hintz, Mr. Jennus Burton, and Mr. Robert Hatch joined the
meeting for this discussion. Dr. Gregory reminded the Board that all state
agencies are required by statute to submit Capital Improvement Plans (CIPs)
every October 1. He presented a brief overview of this year's CIPs--the 1998
requests, building renewal, deferred maintenance, capital project status, and
land acquisitions and sales.
Mr. Norm Hintz summarized the year one projects in Northern Arizona University's
CIP. Executive Director Besnette stated he would like to clarify the directions
given last time by the Board in regard to the three projects that could move
forward to the Joint Committee for Capital Review. It was his understanding the
projects were the Eastburn Renovation and the TV Studio Renovation at NAU and
the Agricultural Research Complex at the UofA.
Regent Ulrich asked if NAU could pay for its two projects if bonding was not
approved. President Lovett stated one option would be to use building renewal
funds for the TV Studio renovation. It would be possible to reallocate funds for
the Eastburn renovation, but it would be a problem in the future if the funds
were not reimbursed by bonding or general funds.
Mr. Jennus Burton summarized the year one projects in Arizona State University's
CIP. Mr. Robert Hatch described where the year one projects requested by
the University of Arizona were in the Board's capital approval process.
Regent Amos questioned the plan to continue to develop the Campus Agricultural
Center (CAC) by building the Agricultural Research Complex on the Campbell
Avenue property. He suggested the university might be better off financially to
sell the property and locate the Agricultural Research Cemplex elsewhere as this
property is considered prime real estate in Tucson.
UofA College of Agriculture Dean Sander said this question had been raised when
the project was presented for conceptual approval and the Board requested a
master plan be prepared for the CAC. When that plan was approved by the Board,
it was decided the best use for the land was in the current configuration. The
land is large enough to serve the agricultural needs and close enough to the
university to allow students timely access. He said the building is sited in the
immediate proximity of other high value buildings that are already in place; not
in the middle of one of the open spaces.
Regent Basha agreed it is important to determine what the highest and best use
of this land is before adding another building to the site. Regent Schmitt asked
if approving the CIP meant the project would be approved. He was told the
project had already received Project Approval and was one of the three projects
the Board, at its last meeting, had indicated could proceed through the bonding
process. However, additional Board approval would still be required to authorize
the sale of bonds to finance construction. He responded that if there were
already existing buildings of high value on the property that would remain
regardless of the outcome of this building request, it would make sense to
continue with this building. Therefore, he would like to know the value of what
is already in place.
Regent Amos said he supported the construction of this building; he was
questioning whether the university should continue to develop this site when it
is worth a great deal of money. He asked the College of Agriculture to seek
examination of the property by an independent realtor or consultant to determine
if the university should continue to develop this property or if it should
consider selling it and using the money to move the CAC to a less valuable site.
Consideration would also need to be given to what sites would be available that
would meet the university's requirements.
Regent Campbell asked if the operation could be moved to some other location
within the City as it would require zoning that would allow agricultural
operations. Dean Sander said he believed some of the operations could be moved.
Regent Gignac said she supported the project, and asked if there would be any
problems with water rights if the Center was moved. Dean Sander said he did not
know at this point; but the department is moving more toward urban agriculture.
The turf center and the study of ornamental horticulture is located there and a
City of Tucson water main running through the property allows cutting edge
research in terms of secondary water utilization. Regent Basha asked the size of
the Center and was told it is approximately 86 acres.
Regent Basha asked if the development could be contained on one side of Campbell
Avenue, leaving the other side available for possible sale if it should be
determined that would be to the university's financial advantage. Regent Amos
asked the university to determine how this property could best be used to
benefit the University of Arizona financially. This project is not scheduled to
go to the Joint Commission on Capital Review until some time in November or
December which would allow time to do some analysis prior to the commencement of
construction. Dean Sander agreed this approach could be used without affecting
the timing of the project.
Upon motion of Regent Gignac, seconded by Regent Schmitt, the Board approved the
universities' 1998-2000 Capital Improvement Plans for submission to the State
Department of Administration.
The meeting recessed at 3:55 p.m. and reconvened 4:10 p.m.
FY98 State Operating Budget Requests
Regent Amos summarized the direction the Board had given the universities at its
August meeting in regard to preparing budgets. Dr. Mary McKeown told the Regents
the FY98 state operating budget request totaled $853.7M, an increase of $39.6M
or 4.9 % over the FY97 state operating budget expenditure authority. This is
within the $40M limit requested by the Governor. She pointed out the changes
that had been made, some at the request of the Regents, from the draft budget
that was presented in August. Dr. McKeown reported there were significant
changes in the funding requests based on the 22:1 enrollment formula because of
the difference between the August estimates and the 21st day actual full time
equivalent student enrollment.
Regent Gignac took exception to the statement in the Executive Summary that the
critical issues are not as closely aligned with this year's goals and objectives
identified in the strategic plans as those requests included in the operating
budget request. She complimented the universities for the work they did to
remain within the $40M limit requested by the Governor and said she hoped the
Governor's office and the Joint Legislative Budget Committee would react in
kind. She expressed her concern that the Arizona International Campus's budget
is so much larger than the one for the University of Arizona at Sierra Vista.
She also wanted to make certain the critical issues were presented in the best
possible light when they are submitted to the Governor.
Upon motion of Regent Campbell, seconded by Regent Gignac, the Board approved
the FY98 state operating budget requests as presented.
Status Report on Development of Proposal to Restore Competitiveness to
Universities' Salary Structure
Regent Amos reminded the Board it had reviewed the universities fiscal year 1998
salary needs and provided guidance for the development of a proposal at the
August Board meeting. The universiites are in the process of fine-tuning their
proposals and will submit them for Board approvel at the November Board meeting.
Multi-Year Employment Contract with Head Baseball Coach (UofA)
Regent Gignac thanked all three universities for their efforts in making sure
there were incentives in their athletic coaches contracts for maintaining Grade
Point Averages and graduation rates. Upon motion of Regent Munger, seconded by
Regent Basha, the Board authorized the University of Arizona to enter into a new
multiple-year contract with Jerry Stitt as Head Baseball Coach, retroactive to
the period beginning July 10, 1996, and continuing through June 30, 1998. The
main terms of this contract are that his salary will be $70,000 and he may
receive supplemental compensation equal to 5% of his base salary for various
achievements.
Amendment of Multi-Year Contract with Head Baseball Coach (ASU)
Upon motion of Regent Munger, seconded by Regent Gignac, the Board authorized
Arizona State University to amend Head Baseball Coach Patrick T. Murphy's
multiple-year employment contract. This amendment will extend the contract for
an additional term of 2 years, ending on June 30, 2001. He may receive a
graduation bonus, performance bonuses for superior academic performance of
student athletes, and an attendance bonus if reserved baseball season ticket
sales exceed 2,400. Supplemental compensation and bonuses may not exceed
$35,000, calculated on an annual basis.
Multi-Year Employment Contract with Women's Head Basketball Coach (ASU)
Upon motion of Regent Basha, seconded by Regent Munger, the Board authorized
Arizona State University to enter into a multiple-year employment contract with
Charli Turner Thorne. The main terms of her contract are a term of approximately
four years ending April 15, 2000 with an initial base salary of $80,000 per
annum. She will receive supplemental compensation for various tournaments, for
superior academic performance and graduation rates of student athletes, and/or
increases in basketball season attendance. Supplemental compensation and bonuses
may not exceed a total of $20,000, calculated on an annual basis.
The meeting recessed at 4:25 p.m. and reconvened at 9:47 a.m. on Friday,
September 27.
PROGRAMS COMMITTEE AGENDA
Regent Gignac chaired this portion of the meeting.
Presentation on Arizona Education Demographics and Implications for Early
Awareness
Presentation by Dr. Harold Hodgkinson
Dr. Harold Hodgkinson, a nationally recognized demographer and Director of the
Washington D.C. Center for Demographic Policy, was in Arizona at the invitation
of the Arizona Minority Education Policy Analysis Center (AMEPAC) to address the
issue of Arizona educational demographics. President Munger invited him to make
a brief presentation to the Board on his report.
Dr. Hodgkinson said Arizona is unusual in that K-12, community colleges, and the
universities are working together to try to establish a common agenda to
increase educational access and retention. However, Arizona has a problem
because its population is transient and is in the midst of a rapid growth
period.
The overriding predicter in terms of who will go to college is family wealth.
Prevention programs, such as Head Start, that were put in place 20 years ago are
beginning to show results and that is the main reason blacks are now graduating
at the same rate as whites. He advocated for as many early awareness programs as
possible, and stated he believed they should start as early as possible.
Increasing density in the metropolitan areas of the state will create different
problems in the future. The percentage of minority children in poverty is higher
than the percentage of minorities in the total population. Arizona is one of 6
states that has a great discrepancy between schools in rich districts and
schools in poor districts because of the way schools are funded in this state.
Arizona is also lower in the percentage of 19 year olds who are high school
graduates and are enrolled in college. Absentee rates in elementary schools is
twice the national average, there are not enough bilingual teachers, and the
teen birth rate is high.
Dr. Hodgkinson offered the following suggestions to broaden the educational
pipeline: 1) Reduce absentee rates in elementary school; 2) Develop a better
tracking system for K-16 to find out why students drop out of high school; 3)
Increase dual enrollment programs in high school and community colleges; 4)
Encourage Arizona public higher education to increase its market share of adults
who have college credits but no degree; 5) Increase the number of CLEP, GED, and
AP exams in Arizona; 6) Increase the number of "3-way" collaborations;
7) Reward universities for decreasing their dependency on state funds, as well
as for increasing student minority persistence; and 8) Recognize that being born
into poverty is a more pervasive factor in being "at risk" than being
of a particular ethnic background.
He said he believed the central question for the Regents is where,
strategically, should intervention be placed to improve the quality of life of
people and to improve the academic preparation of students coming to the
universities.
Panel Discussion Regarding Implication for Arizona's Universities
Dr. Thomas Good, Professor of Educational Psychology at the University of
Arizona, specializes in the communication of expectations in public school
academic settings. He said he believed Dr. Hodgkinson's report needed some
analysis as there is no documentation of what happens in Arizona classrooms. He
outlined some of the problems facing teachers in classrooms and discussed the
problems associated with some of the solutions offered.
Dr. Laura Rendón, Professor of Education Leadership and Policy Studies at
Arizona State University and Director of Evaluation for the Ford Foundation's
Urban Partnership Program, focuses on educational partnerships, nontraditional
students, and student diversity in higher education. She stated there has been a
debate for decades over the causes of inequality between whites and minorities.
Poverty is one cause, but there are studies and literature that show there are
other contributing factors. She suggested unequal education outcomes are
produced by constant interaction among the dynamics of race, class, and gender
in economic, political, and cultural spheres. She believes schools need teachers
who recognize that all students have talent and abilities and encourage all
children, regardless of the race or economic level of the student.
Dr. Diane Ebert-May is Director of the Science and Mathematics Learning Center
at Northern Arizona University. She facilitates math and science partnerships
across a broad spectrum of entities, from higher education through kindergarten
and the private sector. She advocated that universities develop models with a
strong theoretical basis for making decisions about functions of schools that
ultimately affect the structure of those schools. This would lead to children
beginning to see the seamless continuum of education. She believes teachers are
the keystone to the improvement of schools and the universities need to consider
the restructuring of teacher education.
President Munger agreed early intervention is the best way to increase the rate
of high school graduation and said resources should be redirected in that
direction. He would like to see programs based on socioeconomic need rather than
race as he believes this is the critical factor. Regent Gignac agreed with Dr.
Rendón that current programs working with race, ethnicity, and gender should be
continued, but should be supplemented with the socioeconomic category. She said
she believed the suggestion concerning teacher education is a very important
one.
Regent Schmitt said he believed the university recruitment programs are
currently working better than the retention programs. President Coor asked Dr.
Hodgkinson about his comment that minority-oriented programs should be
supplemented with programs to address poverty problems. Dr. Hodgkinson said
he believed the universities current programs were very good and should be
supplemented with programs that deal with how race and class interact. That will
allow the continuation of programs that are working well with programs that
address the 30% of the poor kids in Arizona who are not minorities. He believes
universities need to provide expertise to help bring about a seamless continuum
for kindergarten through college.
Regent Basha said he believes the universities have a responsibility to insure
the seamless web and should work collaboratively with community colleges, K-12,
and the pre-K areas. He believes there should be high expectations for all
children. Regent Munger asked Dr. Hodgkinson if he would recommend starting
programs directed toward race and ethnicity or programs directed toward poverty
and socioeconomic status if the universities had no programs in place now and
were starting from scratch. Dr. Hodgkinson answered it would need to be both.
Focus needs to be made where poverty is greatest, then you need to add the rest
of the children. It is a two-step process. In some states the largest group of
poor children would be rural, in some states it would be ethnic minorities. He
believes you need to have a cultural awareness of the people you are serving to
make the programs successful.
Amendment to Board Policy 4-302, Non-Resident Tuition Waivers (First Reading)
Regent Gignac received agreement from Regents that this item should be postponed
to the next meeting since Regent Davis is not present and he had some additional
concerns about this issue.
Proposal to Establish the Center for Low Power
Electronics (UofA and ASU)
Upon motion of Regent Ulrich, seconded by Regent Amos, the Board authorized the
establishment of the Center for Low Power Electronics with a sunset review date
of 2002-03. This is a collaborative effort between the University of Arizona and
Arizona State University to address fundamental, industry-relevant research
problems in the design of ultra-low power portable computing and communication
systems. It is formed under the State/Industry/University Cooperative Research
Initiative of the National Science Foundation. It will be administered through
the UofA and will be organizationally located within the Department of
Electrical and Computer Engineering in the UofA College of Engineering and Mines
and within the College of Engineering and Applied Sciences at ASU.
REPORT FROM THE BOARD'S REPRESENTATIVE TO THE STATE BOARD OF DIRECTORS FOR
COMMUNITY COLLEGES OF ARIZONA
Regent Gignac reported the joint community college and university articulation
task force reviewed a demonstration of the course applicability system and a
transfer student data base. The task force is moving toward consensus on a new
model for articulation between the community colleges and the universities. Dr.
Donald Puyear, Executive Director of the State Board of Directors for Community
Colleges, commented the task force had exceeded his expectations and he believed
the report presented to the Board in November would be outstanding. Regent
Ulrich complimented Regent Gignac for her work on behalf of the Regents on this
issue.
REPORT FROM THE EXECUTIVE DIRECTOR
Executive Director Besnette called the Board's attention to the written
Executive Director's report. He reminded the Regents that reversing the March
and April meeting locations would result in the March meeting becoming a two-day
meeting. He asked the Regents to mark their calendars with the change.
ADJOURNMENT
The meeting adjourned at 11:25 a.m.
SUBMITTED BY:
__________________________________
Judy E. Garza
Secretary to the Board
APPROVED BY:
___________________________________
John F. Munger
President
ATTEST:
____________________________
George H. Amos, III
Secretary