Agenda
Meeting of the Full Board
June 7-8, 2012
Anchorage, Alaska
Agenda
Board of Regents
Meeting of the Full Board
June 7-8, 2012
Room 107 Lee Gorsuch Commons
University of Alaska Anchorage
Anchorage, Alaska
Times for meetings are subject to modifications within the June 7-8, 2012 timeframe.
Thursday, June 7, 2012
I. Call to Order [Scheduled for 9:00 a.m.]
II. Adoption of Agenda
MOTION
"The Board of Regents adopts the agenda as presented.
I. Call to Order
II. Adoption of Agenda
III. Approval of Minutes
IV. Executive Session
V. Public Testimony
VI. President’s Report
VII. Governance Report
VIII. Acceptance of FY13 Operating Budget Appropriation and Approval of the Distribution Plan
IX. Acceptance of FY13 Capital Budget Appropriation and Approval of the Distribution Plan
X. Approval of FY14 Operating Budget Guidelines
XI. Approval of FY14 Capital Budget Guidelines
XII. Approval of FY13 Student Government Budgets
XIII. Approval of FY13 Natural Resources Fund Spending Plan
XIV. Approval of Revisions to the Consolidated Endowment Fund Policy
XV. Approval of Revisions to Regents’ Policy 05.12.043.E Capital Project Development: Schematic Design Approval
XVI. Approval of Revisions to Regents’ Policy 05.12.047 Capital Project Development: Approval Levels for Changes in Funding Sources, Total Project Cost, or Scope Subsequent to Schematic Design Approval
XVII. Approval of Revisions to Board of Regents’ Bylaws
XVIII. Human Resources Report
XIX. Planning and Development Issues
A. UA Foundation Report
B. Development Report
XX. Presentation from the University of Alaska Anchorage
XXI. Presentation on System Facilities Data
XXII. Presentation on UA Fisheries, Seafood and Maritime Initiative
XXIII. Approval of Amendment to the University’s Optional Retirement Plan
XXIV. Approval of Revision to Industrial Security Resolution
XXV. Approval of University of Alaska Anchorage Core Themes
XXVI. Approval of Regents’ Policy 01.01.030 – University of Alaska Fairbanks Mission Statement and University of Alaska Fairbanks Core Themes
XXVII. Approval of Naming of Ridge on the University of Alaska Fairbanks Campus – Troth Yeddha’
XXVIII. University of Alaska Anchorage Commercialization Project Update
XXIX. University of Alaska Fairbanks Research Foundation Update
XXX. Consent Agenda
A. Facilities and Land Management Committee
1. Formal Project Approval for the University of Alaska Anchorage MAC Housing Renewal
2. Schematic Design Approval for the University of Alaska Fairbanks Critical Electrical Distribution Renewal Phase 2
3. Approval of University of Alaska Anchorage Campus Master Plan Amendment for the Engineering Parking Garage
4. Schematic Design Approval for University of Alaska Anchorage Engineering and Industry Building Project
5. Schematic Design Approval for the University of Alaska Fairbanks Engineering Building Project
6. Schematic Design Approval for the University of Alaska Anchorage Matanuska-Susitna Valley Center for Arts and Learning
XXXI. Old Business Items
XXXII. New Business and Committee Reports
A. Academic and Student Affairs Committee
B. Audit Committee
C. Facilities and Land Management Committee
XXXIII. Alaska Commission on Postsecondary Education Report
XXXIV. Future Agenda Items
XXXV. Board of Regents' Comments
XXXVI. Adjourn
This motion is effective June 7, 2012."
III. Approval of Minutes
MOTION
"The Board of Regents approves the minutes of its regular meeting of April 12-13, 2012 as presented. This motion is effective June 7, 2012."
IV. Executive Session
MOTION
"The Board of Regents goes into executive session at _________ Alaska Time in accordance with the provisions of AS 44.62.310 to discuss matters the immediate knowledge of which would have an adverse effect on the finances of the university related to real estate and labor, and matters that could affect the character or reputation of a person or persons related to presidential assessment, and legal matters. The session will include members of the Board of Regents, President Gamble, General Counsel Hostina, and such other university staff members as the president may designate and will last approximately ____________ hours. This motion is effective June 7, 2012.”
(To be announced at conclusion of executive session)
The Board of Regents concluded an executive session at _____ Alaska Time in accordance with AS 44.62.310 discussing matters the immediate knowledge of which would have an adverse effect on the finances of the university, and matters that could affect the reputation or character of a person or persons, and legal matters. The session included members of the Board of Regents, President Gamble, General Counsel Hostina, and other university staff members designated by the president and lasted approximately ______ hour(s).
V. Public Testimony [Scheduled for 10:00 a.m.]
Public testimony will be heard at approximately 10:00 a.m. on Thursday, June 7, 2012. Comments are limited to three minutes per individual. Written comments are accepted and will be distributed to the Board of Regents and President Gamble by the Board of Regents’ Officer following the meeting. The chair will determine when public testimony is closed.
VI. President's Report [Scheduled for 11:00 a.m.]
President Gamble will present the “Make Students Count” awards and report on items of interest.
VII. Governance Report [Scheduled for 11:15 a.m.]
Representatives from the Staff Alliance, Faculty Alliance, Coalition of Student Leaders and System Governance Council will report on issues of importance to the faculty, staff and students at the University of Alaska. Representatives are:
Juella Sparks, Staff Alliance Chair
Daniel Monteith, Faculty Alliance Chair
Nicholas Pennington, Coalition of Student Leaders Speaker
Joe Hayes, System Governance Council Chair
[Scheduled for 12:00 p.m.]
VIII. Acceptance of FY13 Operating Budget Appropriation and Approval of the Distribution Plan Reference Bound Separately
The President recommends that:
MOTION #1
“The Board of Regents accepts the FY13 Operating Budget Appropriation as presented. This motion is effective June 7, 2012.”
MOTION #2
“The Board of Regents approves the FY13 Operating Budget Distribution Plan as presented. This motion is effective June 7, 2012.”
POLICY CITATION
Regents' Policy 05.01.04 – Acceptance of State Appropriations states, "The board must accept state appropriations to the university before any expenditure may be made against the appropriation."
RATIONALE/RECOMMENDATION
President Gamble and Associate Vice President Rizk will discuss the legislative appropriations and propose an operating budget distribution plan for board approval. Governor Parnell signed the state’s operating, and mental health budget bills into law without any vetoes of University of Alaska programs or projects. Below is a system budget summary and distribution plan considerations. The operating and capital distribution reference documents are titled “Proposed FY13 Operating and Capital Budget Distribution Plans.”
UA’s final operating budget state appropriation increased by $12.2M (3.5%). State appropriations, including general funds, technical vocational education program funds (TVEP), and mental health trust general funds, total $363.7M, up from $351.5M in FY12. This amount includes an additional $406.5K in TVEP funding. UA’s total budget for FY13 is $925.8M compared to $887.4M in FY12, an increase of 4.3%.
Approximately 96% of UA’s fixed cost increases were covered ($6.7M of $6.9M, excluding utilities). No base funding was included in the budget for utility cost increases; however, the budget includes one-time utility funding to state agencies to offset increased fuel and utility costs. The university expects to continue to receive additional one-time funding to cover utility cost increases through the “fuel trigger” (chart on page 20 of the reference document).
Of the $12.2M increase, $4.4M is directed to the board’s priority program requests for: honors programs and initiatives to improve graduation rates ($1.5M); high demand jobs in engineering ($400K), health ($940K), teacher education ($250K), and workforce development ($749K); and Alaska research ($550K). An additional $.7M was added by the legislature for other priority programs. Below are the highlights of the program investments. A complete list of programs receiving funding and program descriptions begin on page 9 of the reference document.
Initiatives to Improve Graduation Rates: These requests support UA’s responsibility during students “3 critical years.” They include supporting UA’s part in the joint effort for ensuring college readiness and student success during their three key decision and high attrition years (last year of high school and year 1 and year 2 of college). Specific focus is placed on improving retention, timely completion, removing student obstacles, establishing much better performance facts, and creating a common database for student decision making.
Response to State High-Demand Jobs: Funding to accommodate the growing demand for trained professionals in the areas of engineering, health/biomedical, teacher education, and other high demand workforce development fields continues to be a top priority for UA. The state’s support in these important program areas will help UA keep pace with the state’s need.
Alaska Research: These requests support instructional support and research guidance for graduate program students; graduate education and training focused on interdisciplinary studies in northern sustainability, resilience, and adaptation to change; and non-state funding for on-shore support staff for the oceanographic research ship Sikuliaq.
As in the past, the legislature has included intent language regarding future UA budget requests. It is the intent of the legislature that UA requests for unrestricted general fund increments do not exceed the amount of additional university receipts requested for that year and that unrestricted general funds move toward a long-term goal of 125 percent of actual university receipts for the most recently closed fiscal year. The state funded portion of UA’s budget had been increasing as a percentage of the total budget over the last several years, and the intent language is meant to reinforce the need for reversing that trend.
IX. Acceptance of FY13 Capital Budget Appropriation and Approval of the Distribution Plan Reference Bound Separately
The President recommends that:
MOTION #1
“The Board of Regents accepts the FY13 Capital Budget Appropriation as presented. This motion is effective June 7, 2012.”
MOTION #2
“The Board of Regents approves the FY13 Capital Budget Distribution Plan as presented. This motion is effective June 7, 2012.”
POLICY CITATION
Regents' Policy 05.01.04 – Acceptance of State Appropriations states, "The board must accept state appropriations to the university before any expenditure may be made against the appropriation."
RATIONAL/RECOMMENDATION
Associate Vice President Rizk and Chief Facilities Officer Duke will present a summary of the FY13 capital budget appropriation and discuss capital funding distribution implications.
The university’s capital budget request totaled $246.1M with $202.2M requested from state funding and $43.9M in receipt authority. UA received state funding of $154.9M and $18.0M in receipt authority. A comparison of the UA capital budget request and the final legislation can be found on page 23 of the reference document.
The amount of $37.5M in state funds fully supports the request by the Board of Regents for the number one priority of maintaining existing facilities. Funding will be used to address the current critical needs of each project.
New Construction (New Starts) and New Construction Planning funding requests were not included in the FY13 budget request; however, the final legislation includes additional state funding for the UAA Engineering Building ($58.6M), the UAF Engineering Building ($46.3M), and the UAS Banfield Hall Dormitory Project ($4M). These projects all received prior state funding: UAA and UAF Engineering Buildings ($4M each) and UAS dormitory project ($2M).
Two Research for Alaska projects had funding appropriated to further study the areas of Ocean Acidification ($2.7M in state funds and $750.0K in receipt authority), and Research and Development of Unmanned Aerial Systems ($5.0M in state funds). Assessing the Impacts of Ocean Acidification on Alaska’s Fisheries was included in the Board of Regents’ request and the Research and Development of Unmanned Aerial Systems was added by the legislature.
Other projects also funded with state funds include: Juneau Campus Mining Workforce Development for $190.0K, UAA Kachemak Bay Campus - Pioneer Avenue Building Addition for $50.0K, and $100.0K for UAF Research Survival Georgeson Botanical Garden.
The board is asked to accept the capital appropriation and approve the distribution as presented. The Board of Regents’ number one priority, “Deferred Maintenance (DM) and Renewal and Repurposing (R&R)” distribution amounts are based on a formulaic approach using the adjusted value of the facility multiplied by the weighted average age of the facility (distribution model is on page 40 of the reference document).
The project budget is derived from the MAU’s estimated funding distribution to address the most critical portions of the priority DM and R&R projects. The priority DM and R&R project descriptions begin on page 27 of the reference document. As the exact project scope and costs are known, project approval will be obtained from the appropriate authority in accordance with the Board of Regents’ Policy. If a subsequent transfer of funding between projects or to a new project is requested, the chief finance officer shall determine the level of approval required, based on the size and nature of the transfer.
X. Approval of FY14 Operating Budget Guidelines Reference 1
The President recommends that:
MOTION
"The Board of Regents approves the FY14 Operating Budget Development Guidelines as presented. This motion is effective June 7, 2012."
POLICY CITATION
Regents' Policy 05.01.01.A. – Budget Policy states, "The budget of the university represents an annual operating plan stated in fiscal terms. All budgetary requests shall be adopted by the board prior to submittal to the Office of the Governor or the legislature."
RATIONALE/RECOMMENDATION
President Gamble and Associate Vice President Rizk will present the FY14 Operating Budget Development Guidelines recommendation (Reference 1). The operating guidelines serve as a tool for administration to prioritize budget requests and maintain alignment with the Board of Regents’ goals and expected administrative efficiencies.
For FY14, it is expected that Governor Parnell will continue his strategy to “hold-the-line” on budget requests for all state agencies, including the university. The legislature has also signaled intentions to slow the growth of all state operating expenditures. With the state’s emphasis on reducing growth, UA’s Strategic Direction Initiative (SDI) which is currently underway, and the program funding received in FY13, the request level for new programs is expected to be limited in FY14.
This presentation of the FY14 budget guidelines is the first step in a process that will end in early November with the Board of Regents’ approval of the operating budget.
XI. Approval of FY14 Capital Budget Guidelines Reference 2
The President recommends that:
MOTION
"The Board of Regents approves the FY14 Capital Budget Development Guidelines as presented. This motion is effective June 7, 2012."
POLICY CITATION
Regents' Policy 05.01.01.A. – Budget Policy states, "The budget of the University of Alaska represents an annual operating plan stated in fiscal terms. All budgetary requests shall be adopted by the board prior to submittal to the Office of the Governor or the legislature."
RATIONALE AND RECOMMENDATION
Associate Vice President Michelle Rizk and Chief Facilities Officer Kit Duke will discuss current capital budget activities, and the capital budget guidelines recommendation. The proposed guidelines are included as Reference 2.