University of Hawai‘i, Board of Regents, Bachman 209, 2444 Dole Street, Honolulu, HI 96822 Telephone No. (808) 956-8213; Fax No. (808) 956-5156

BOARD OF REGENTS’ MEETING

Date: August 22, 2008 Board business not completed on the first day will be taken up on a day and time announced at the conclusion of the first day’s meeting.

Time: 9:30 a.m. Place: Windward Community College Hale ‘Ākoakoa, Rm. 105 45-720 Kea‘ahala Rd. Kane‘ohe, Hawai‘i 96744

AGENDA

I. Call Meeting to Order II. Public Comment Period: Individuals may orally testify on items on this agenda either during the Public

Comment Period or when the agenda item is taken up by the Board. If you wish to testify orally, please call the Board Office prior to the meeting or notify the Secretary of the Board at the meeting site. The order of testimony will generally reflect the order of notification. Each speaker will be allowed three minutes to present testimony. Written testimony is also accepted.

III. Election of Board Officers IV. Report of the President V. Agenda Items

1. Approval to Expand the Scope of Work for Construction and Financing Opportunities for the Biomedical Sciences Building, UH Mānoa

2. University of Hawai‘i Budget for the Fiscal Biennia July 1, 2009 – June 30, 2015 (information only)

VI. Board Self-Evaluation: Discussion VII. Executive Session (closed to the public): Personnel Actions Related to the Following Positions: (To discuss the following personnel matters

pursuant to HRS §92-5(a)(2)) a. Update on Executive Searches

Collective Bargaining: (To discuss authority of persons conducting labor negotiations and conducting

negotiations pursuant to HRS §92-5(a)(3)) b. Collective Bargaining VIII. Announcements Next Meeting of the Board: Date: September 18, 2008 Place: Hawai‘i Community College IX. Adjournment

PERSONS WITH DISABILITIES WHO MAY NEED AN ACCOMMODATION, PLEASE CALL THE BOARD OF REGENTS’ OFFICE

The following expenditure requests, proposals, and other budgetary documents are made available to the public pursuant to Hawai‘i Revised Statutes, Section 304A-105(a)(5), as amended by Act 6, Special Session 2008 (SB 2263).

I. Framework for the Budget Process

II. The Process

III. The Results

IV. Questions & Conclusion

28/22/2008

State Priorities

Institutional Mission

UH System Strategic 

Plan

•Campus Strategic Plans

•Campus Facilities Plans

• Biennium Priorities

•Operating & CIP Budget Objectives

Biennium Budget Request

38/22/2008

1. Increase the educational capital of the state

2. Expand workforce development initiatives

3. Contribute to the State’s economy

4. Address underserved regions and populations of the state, particularly Native Hawaiians

5. Renew and expand infrastructure48/22/2008

System strategic plan revisited during the 2007‐08 academic year through a series of meetings with the University community and the general publicStrategic goals affirmedDifferentiate system and campus rolesEstablish clear and measurable outcomes to assess performance and progressArticulate plan in terms of the higher education needs of the state

System strategic plan to inform campus strategic plans

58/22/2008

STRATEGICOUTCOMES PERFORMANCE MEASURES

Native Hawaiian Education Attainment

•Degree Attainment of Native Hawaiians at UH

Hawaii’s Educational Capital •UH  Degrees & Certificates of Achievement Earned•UH Disbursement of Pell Grants•Going Rates of Public and Private High Schools to UH System Campuses

Economic Contribution •UH Extramural Fund Support•UH Invention Disclosures, Patents, and Licenses

Globally Competitive Workforce

•UH Degrees in STEM Fields•UH Output in Shortage Areas

Resources and Stewardship •Annual Investment Required to Decrease Deferred Maintenance Backlog to $126 Million by 2015•Non‐State Funding Sources 

68/22/2008

Long‐Term Finance Plan to provide framework for carrying out the Strategic PlanThree key components:

Base Operating FundsCapital Infrastructure FundsPerformance Incentive Funds

Act 188 (2008)Incentive and Performance Outcome Funding▪ Funding Formula Task Force

Economic Outlook State Council on Revenues projections

78/22/2008

Realistic budget request that recognizes the financial condition of the State 

PRIORITIES1. Repair, Renewal and Replacement

• Health and safety requirements• Reduce deferred maintenance• Annual capital renewal requirements

2. Inflation3. Performance‐Based Operating Budget Requests

• $10 million ceiling 

88/22/2008

Budget Policy Paper, approved by BoardInstructions for Budget Preparation and StocktakingCampus ProcessesStocktaking PresentationsBiennium Budget Advisory Committee

98/22/2008

108/22/2008

BIENNIUM SUPPLEMENTAL BIENNIUM SUPPLEMENTALDESCRIPTION FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008 FY 2008-2009 FY 2008-2009

Means of Financing:General Funds 0 0 42,500,000 0 0 12,500,000Special Funds 0 0 0 100,000,000 0 0General Obligation Bond Fund 128,783,000 38,788,000 24,200,000 183,036,000 1,640,000 124,806,000Revenue Bonds 31,000,000 0 0 0 14,383,000 13,617,000Federal Funds 3,003,000 0 25,000,000 3,300,000 33,000,000 7,000,000Private Contributions 14,003,000 0 500,000 2,500,000 0 0Revolving Funds 12,000,000 0 2,900,000 2,300,000 0 0

Total CIP Appropriations 188,789,000 38,788,000 95,100,000 291,136,000 49,023,000 157,923,000

BOR Approved Requests 231,778,000 187,725,000 364,948 376,132,000 321,831,000 378,731,000

118/22/2008

BIENNIUM SUPPLEMENTAL BIENNIUM SUPPLEMENTALDESCRIPTION FY 2005-06 FY 2006-07 FY 2006-07 FY 2007-08 FY 2008-09 FY 2008-09

General Fund Appropriations 475,172,131 475,172,131 588,577,553 614,889,773 614,889,773 714,532,333 Less: Non-recurring Funds (750,639) (750,639) 0 (1,680,000) (1,680,000) 0 Collective Bargaining 20,090,565 28,591,153 0 21,942,033 39,801,446 0 Pass Through Fund Adjustments (159,301,417) (159,301,417) 0 (228,951,753) (228,951,753) 0 Sub-total Current Funding Level 335,210,640 343,711,228 588,577,553 406,200,053 424,059,466 714,532,333

Legislative Adjustments:Operating Funds * 11,142,318 13,207,262 29,019,530 26,440,083 37,279,763 2,602,184 Pass Through Fund Adjustments 214,095,875 231,659,063 (2,707,310) 237,844,939 253,193,104 11,165,171 Other Adjst: Flood Damages 31,000,000 0 0 0 0 0

Total 591,448,833 588,577,553 614,889,773 670,485,075 714,532,333 728,299,688

BOR Approved Requests 51,613,883 38,897,102 41,510,457 38,726,634 58,116,277 30,608,097

Prepared by UH Budget Office* BI 2007-08 & 2008-09 operating funds includes an increase of $590,000 for Property Insurance Premium which are part of Risk Management Costs,

and should be a Pass Through Fund adjustment; however, since the Legislature appropriated it in operating funds, it is shown that way here.

128/22/2008

DateBoard Workshop(informational only)

August 2008

Board of Regents Approval September 2008 BOR Meeting

UH Submittal to State B&F September 2008

Governor introduces executive budget December 2008

2009 Legislative Session begins January 2009

138/22/2008

8/22/2008 14

University of Hawai‘iBiennium CIP Budget for FB 2009-11 - Systemwide

FUNDING PRIORITIES FY 2009-10 FY 2010-11 MOF

1 Health & Safety Projects 8,210,000$ 2,140,000$ C

2 Ongoing Construction Projects Requiring Building Equipment Funding 4,735,000$ -$ C

FY 2009-10 FY 2010-113a RRR- Annual Capital Renewal Requirements 72,777,000$ 33,007,000$ C

3b Major Renovation Projects 8,400,000$ 4,869,000$ C

3c RRR- Reduction of Deferred Maintenance 70,089,000$ 52,526,000$ C

3d Renovation for Modernization Projects 16,506,000$ 18,360,000$ C

TOTAL RRR REQUIREMENTS 167,772,000$ 108,762,000$

OTHER OPTIONS FOR FUNDING

- Planning and Design of CIP Projects for 2nd and 3rd Biennia 29,417,000$ 11,013,000$ C

- CIP with Matching GO Bonds and Other Funding Sources - IT Building 25,318,500$ 2,813,000$ C

25,318,500$ 2,813,000$ E - Highest Priority New CIP

- Fund the campus' top priority 46,309,000$ 151,392,000$ C

- CIP with Other Funding Sources- CMORE and Faculty Housing 1,700,000$ 20,800,000$ E

5,000,000$ -$ W

TOTAL 281,761,500$ 276,120,000$ C27,018,500$ 23,613,000$ E5,000,000$ -$ W

C - G.O. Bonds W - Revolving Funds E - Revenue Bonds

2008-08-13 CIP Advisory Budget Summary / Funding Priorities & Options

University of Hawai‘iBiennium Budget Request - Systemwide Health & Safety Projects

Priority Project Name Campus FY 2009-10 FY 2010-111 Athletic Field ADA Restroom Retrofit UHM 100,000$ 1,265,000$ 2 Krauss Hall Drainage UHM 200,000$ 800,000$ 3 Food Science & Technology Blg. UHH 25,000$ 75,000$ 1 Turning Lane Improvement to Campus Entrances UHH 965,000$ -$ 1 Control Mold Problem in Library/Classroom Bldg. HON 4,590,000$ -$ 2 Upgrade Fire Alarm System HON 830,000$ -$ 3 Replace Hydraulic Elevator LEE 1,500,000$ -$

Total Health & Safety Projects 8,210,000$ 2,140,000$

2008-08-13 CIP Advisory Budget Summary / Health & Safety

University of Hawai‘iBiennium Budget Campus Priorities for New CIP

PrioritiesPl

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Planning, Design, &

Construction

Planning, Design, &

Construction Future BienniaFunding Options

Funding Options

UHM UHM Project Name Campus FY 2009-10 FY 2010-11 FY 2011-13 FY 2013-15 m FY 2009-10 FY 2010-111 1 New Classroom Bldg UHM C 1,304,000$ 115,000,000$ 9,728,000$ -$ 1,304,000$ 115,000,000$ 2 2 New Gym to Replace Klum Gym UHM C 271,000$ 2,313,000$ 18,647,000$ -$ 271,000$ 2,313,000$ 3 3 Performing Arts UHM C 5,864,000$ 91,617,000$ 10,190,000$ -$ 5,864,000$ -$ 4 4 College of Education UHM C 3,753,000$ 36,902,000$ 2,743,000$ -$ 3,753,000$ -$ 5 5 Pukoa Hawaiian Knowledge Bldg. UHM C 10,000,000$ -$ 100,000,000$ -$ 500,000$ 500,000$

Law School Expansion & Renovation UHM C -$ -$ 7,241,000$ 46,227,000$ -$ -$ Komohana Agric. Complex UHM C -$ -$ 5,450,000$ -$ -$ -$ Lower Campus Parking Structure UHM W 500,000$ 2,800,000$ -$ -$ Modular Research Facility UHM C -$ -$ 2,500,000$ 39,600,000$ -$ -$

Faculty Housing (W funds) UHM W 5,000,000$ -$ -$ -$ 5,000,000$ -$ Biomed C-MORE (E funds) UHM E 1,700,000$ 20,800,000$ -$ -$ 1,700,000$ 20,800,000$ Total CIP UHM All 27,892,000$ 266,632,000$ 156,999,000$ 88,627,000$ 18,392,000$ 138,613,000$ Less W and R funds UHM 6,700,000$ 20,800,000$ 500,000$ 2,800,000$ 6,700,000$ 20,800,000$ Total GO New CIP UHM C 21,192,000$ 245,832,000$ 156,499,000$ 85,827,000$ 11,692,000$ 117,813,000$

UHH UHH1 2 College of Pharmacy UHH C 6,000,000$ 71,000,000$ -$ -$ 6,000,000$ -$ 2 1 College of Hawaiian Language UHH C 32,000,000$ -$ 34,000,000$ -$ 32,000,000$ -$ 3 4 Emergency Response Operations Center UHH C 601,000$ 6,649,000$ -$ -$ 601,000$ -$ 4 3 Student Services Building Addition UHH C 4,000,000$ -$ -$ -$ -$ 5 5 Emergency Back Up Generator UHH C 4,000,000$ -$ -$ -$ 500,000$ -$ 6 6 New Chemical Storage & Waste Storage Bldg. UHH C 300,000$ 2,500,000$ -$ -$ 300,000$ -$ 7 7 Kalakaua Marine Ed Center at Puako UHH C -$ 750,000$ 8,250,000$ -$ -$ 750,000$ 8 8 Title 9 Compliance Women's Soccer & Softball Field UHH C 500,000$ 6,000,000$ -$ -$ 500,000$ -$ 9 9 Photovoltaic Panels UHH C 5,750,000$ 5,750,000$ -$ -$ 500,000$ -$

10 10 Student Life Phase 1B Covered Basketball Courts UHH C 3,300,000$ -$ -$ -$ -$ -$ 11 11 Campus Center Expansion UHH C 750,000$ 8,800,000$ -$ -$ 750,000$ -$ 12 12 General Classroom and Office Bldg. UHH C 500,000$ 2,500,000$ 31,000,000$ -$ 500,000$ 2,500,000$ 13 13 Plans - Flood Channel Improvements UHH C 250,000$ -$ -$ -$ 50,000$ -$

Affordable Faculty Housing Development UHH C/E -$ -$ 19,900,000$ -$ -$ -$ Campus wide Covered Walkways UHH C -$ -$ 2,250,000$ -$ -$ -$ Various Parking Improvements UHH C -$ -$ 2,250,000$ -$ -$ -$ Performing & Fine Arts Building UHH C -$ -$ 79,800,000$ -$ -$ -$ Hale Pohaku Visitor Info Station Expansion UHH C -$ -$ 6,800,000$ -$ -$ -$ Various Student Housing Developments UHH C/E -$ -$ 6,400,000$ 33,600,000$ -$ -$ General Maintenance Building UHH C -$ -$ 3,650,000$ -$ -$ -$ Panaewa Farm Instructional Lab & Support Bldg. UHH C -$ -$ 4,800,000$ -$ -$ -$ Horse Arena for Public Events Upgrade UHH C -$ -$ 4,950,000$ -$ -$ -$ College of Business & Entrepreneur Initiative UHH C -$ -$ 26,000,000$ -$ -$ -$ Multi-purpose Events Center UHH C -$ -$ 80,001,000$ -$ -$ -$ Total New CIP UHH C 57,951,000$ 103,949,000$ 310,051,000$ 33,600,000$ 41,701,000$ 3,250,000$

2008-08-13 CIP Advisory Budget Summary / New CIP

Priorities

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Planning, Design, &

Construction

Planning, Design, &

Construction Future BienniaFunding Options

Funding Options

Project Name Campus FY 2009-10 FY 2010-11 FY 2011-13 FY 2013-15 m FY 2009-10 FY 2010-11CCS CCS

CC CIP Requests for 2nd & 3rd Biennia are pending planning & design1 Planned New Library/Learning Resource Ctr. Equipmt WIN C 1,578,000$ -$ -$ -$ 1,578,000$ -$

Pukoa Native Hawaiian Center WIN C -$ -$ 13,000,000$ -$ -$ -$ 1 Planned Science Building - Equipment MAU C 3,157,000$ -$ -$ -$ 3,157,000$ -$ 1 Science Tech Bldg. HON C 36,392,000$ -$ -$ -$ -$ 36,392,000$ 1 Ed and Innovation Instructional Facility LEE C 14,309,000$ -$ -$ -$ 14,309,000$ -$

Pukoa Hawaiian Success Center LEE C -$ -$ 550,000$ -$ -$ -$ 1 Pukoa Hawaiian Success Center HAW C -$ 50,000$ 500,000$ -$ -$ 50,000$ 1 Pukoa Hawaiian Success Center KAU C 70,000$ 8,000,000$ -$ -$ 70,000$ -$

UHWO UHWO 1 Pukoa Hawaiian Success Center UHWO C -$ 500,000$ 5,000,000$ -$ -$ 500,000$ SYS SYS

1 1 CIP Planning, Pvt Public Partnerships, Project Adj Fund SYS C 7,954,000$ 4,400,000$ 5,000,000$ 5,000,000$ 7,954,000$ 4,400,000$ 1 IT Building SYS C 50,637,000$ 5,626,000$ -$ -$ 25,318,500$ 2,813,000$

E -$ -$ -$ -$ 25,318,500$ 2,813,000$ Total All GO New CIP 142,603,000$ 362,731,000$ 490,600,000$ 124,427,000$ 105,779,500$ 165,218,000$

2008-08-13 CIP Advisory Budget Summary / New CIP

6 Year Average for GO Bond Only Capital Renewal and Deferred Maintenance Request

Repair Category FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 6 Yr. Total 6 year AveCapital Renewal 72,777,000$ 33,007,000$ 59,449,000$ 46,973,000$ 43,291,000$ 45,335,000$ 300,832,000$ 50,138,667 Reduction of Deferred Maintenance 70,089,000$ 52,526,000$ 52,526,000$ 52,526,000$ 52,526,000$ 52,523,000$ 332,716,000$ 55,452,667$ Totals 142,866,000$ 85,533,000$ 111,975,000$ 99,499,000$ 95,817,000$ 97,858,000$ 633,548,000$ 105,591,333$

Fund annual Capital Renewal requirements based on PPCG reportFund Deferred Maintenance based on 6 year schedule to totally eliminate backlog

2008-08-13 CIP Advisory Budget Summary / Capital Renewal & Backlog

University of Hawai‘iBiennium Budget Request - Systemwide Major Renovation

Priority Project Name Campus FY 2009-10 FY 2010-11 Decrease RRR Net Cost FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-151 Gartley Interior Renovation UHM 8,400,000$ -$ (1,641,000)$ 6,759,000$ -$ -$ -$ -$ 2 Kuykendall Hall Renovation UHM -$ 30,100,000$ -$ -$ 1 Renovation of 391 Electricity/Electronics Bldg HAW -$ 4,869,000$ (437,000)$ (437,000)$ -$ -$ -$ -$ 2 Renovation of Chill Water Loop MAU -$ 6,875,000$ -$ -$ 3 Renovation of Media Center for Tech Hub KAP -$ -$ 6,447,000$ -$ 4 Renovation of 8812 for Mele Program HON -$ -$ -$ 4,365,000$

Total Major Renovation 8,400,000$ 4,869,000$ (2,078,000)$ 6,322,000$ -$ 36,975,000$ 6,447,000$ 4,365,000$

2008-08-13 CIP Advisory Budget Summary / Major Renovation

University of Hawai‘iBiennium Budget Request - Systemwide Renovation for Modernization

Priority Project Name Campus FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-151 Campus wide - Various Upgrading of Campus Lighting Systems UHM 1,100,000$ 1,100,000$ 1,100,000$ 1,100,000$ -$ -$ 2 Upgrade of Instructional Auditoriums UHM 2,000,000$ 2,000,000$ -$ -$ -$ -$ 1 Learning Center - Renovation UHH 500,000$ -$ 2 Campus wide - ADA Improvements UHH 2,000,000$ -$ 3 Computing Center/Business Ed/Bookstore - Bldg. & A/C Improvemts. UHH 800,000$ -$ 4 College Hall A&B - Interior & Exterior UHH 600,000$ -$ 5 Wentworth Hall - Renovation UHH -$ 2,000,000$ 6 Computing Center/Business Ed/Bookstore - Renovate for HawCC Relocation UHH -$ 1,000,000$

Future Modernization Projects - UH Hilo UHH 2,250,000$ 1,100,000$ 2,000,000$ 2,700,000$ 1 Library - Installation of Elevator HON 3,992,000$ -$ 2 5979, 5983, 5982 - Alakai, Naauao, Manapono Interior Renovation WIN 1,497,000$ 4,548,000$ 3 324 Welding - Classroom Renovation HAW 2,614,000$ -$ 4 4465 Campus Center - Vacated Bookstore into Culinary Arts Classroom Conversion KAU 1,391,000$ -$ 5 Various classrooms/offices - Fixed Seating Configurations Renovation LEE -$ 941,000$ 6 4458 Social Science - Classrooms to Science Lab Conversion KAU -$ 1,199,000$ 7 5982 Mini Theater and Classroom to offices Renovation WIN -$ 390,000$ 8 876 Administration - 2nd flr Student Svcs One-Stop Center Renovation LEE -$ 857,000$ 9 OCET Portable - Early Childhood Ed Use Conversion KAU -$ 1,141,000$

10 390 Carpentry Bldg. - Renovation HAW -$ 1,864,000$ 11 5989 Imaginarium - Upgrade WIN -$ 270,000$ 12 885 Theater - repair/upgrade Box Office LEE -$ 512,000$ 13 876 Administration - 1st flr Office Renovation LEE -$ 526,000$

Future Modernization Projects - Honolulu CC HON -$ -$ 236,000$ 1,356,000$ Future Modernization Projects - Kapiolani CC KAP -$ 440,000$ 3,711,000$ 3,948,000$ Future Modernization Projects - Leeward CC LEE 996,000$ 2,100,000$ 411,000$ -$ Future Modernization Projects - Windward CC WIN 4,165,000$ -$ -$ -$ Future Modernization Projects - Maui CC MAU 528,000$ -$ 374,000$ -$

1 Misc. West O‘ahu Renovations UHWO 12,000$ 12,000$ Total Renovation For Modernization 16,506,000$ 18,360,000$ 9,039,000$ 4,740,000$ 6,732,000$ 8,004,000$

These projects are to upgrade facilities or meet program changes

2008-08-13 CIP Advisory Budget Summary / Modernization