University of Minnesota. Board of Regents Minutes, April 7 ... · an explanation of the statements of auditing standards, an overview of the audit approach, and a detailed explanation

UNIVERSITY OF MINNESOTA

BOARD OF REGENTS

MINUTES

BOARD OF REGENTS' MEETING

AND

REGENTS' COMMITTEE MEETINGS

April 7-8, 1988

Office of the Board of Regents

220 Morrill Hall

Year 1987-88


BOARD OF REGENTS

Minutes of the Board of Regents' Meetingand Regents' Committee Meetings

April 7-8, 1988

CONTENTS

I. Committee MeetingsA. Audit Committee - April 6, 1988.. . . . .B. Special Meeting - Committee of the Whole

April 7, 1988 (Open Hearing on Academic PrioritiesC. Physical Planning & Operations Committee

April 7, 1988 . . . . . . . . . . . . . .D. Finance & Legislative Committee

April 7, 1988. . . . . . . . . . . . . . . . . . .E. Educational Planning & Policy Committee -

April 7, 1988. . . . . . .. . .. . . . .F. Faculty, Staff & Student Affairs Committee -

April .7, 1988. . . .. . . . . . . . .G. Committee of the Whole - April 8, 1988 . . ..

II. Board of Regents' Meeting - April 8, 1988A. Approval of Minutes .. . . . . .. .B. Report of the President. . . . . . .

1. Recognition of Athletic Teams2. Introduction of Dr. C. Edward Schuh3. Miscellaneous Items of Business

C. Report of the Chair.... . . . . . . .1. Expression of Thanks

D. Gifts . . . . . . . . . . . . .E. Contracts & Grants/Applications & AwardsF. Report of the Audit Committee

1. Meeting with Outside Auditors . ..G. Report of the Special Meeting - Committee

of the Whole1. Academic Priorities Hearing . . .

H. Report of the Committee of the Whole1.2.3.

4.5.6.7.8.

Approval - Support for Commitment to Focus .Approval - 1988-89 Budget Principles . . ...Approval - Heidrick & Struggles, Inc. retainedas firm for Presidential Search .. . . ...Approval - Presidential Search Process . .Proposed 1988-89 Budget Plan .. . . . ....Academic Priorities Document .. . . . ....Proposed 1988-89 Tuition Plan . . . . .Legislative Update . . . . . . . . . . . . . .

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9. Introduction of Acting Vice PresidentC. Eugene Allen. ... . . .. . . . . . . . .. 259

I. Report of the Finance & Legislative Committee1. Vice President's Monthly Report., . . .. . . 2592. Approval - Use of Medical Inc. Proceeds. .. .. 2593. Proposed Allocations for Central Reserves . . . 2604. Proposed Policy for Disclosure of Financial

Arrangements with Industry . . . . . . . . . . 2605. Budget Review - Office of the General Counsel. . 2606. Proposed Change in Investment Manager . .. . 260

J. Report of the Educational Planning & PolicyCommittee1. Approval - Establishment of Minor in Quarternary

Paleoecology, Cognitive Science, InterfacialEngineering and Microbial Ecology. . . . . . 260

2. M.S. Degree Program in Museology . . . . . . . 2603. Discontinuation of Minor in Aerospace Studies

at UMD c . . ... . . .. . . . .. . 2604o Minor in Water Resources for MA., M.S. and

Ph.Do Degrees. c o . .. . . . . .. ... 2615. Report of Task Force on Post-Secondary Quality

Assessment . . . . . . . .. . . . . .a. . . 2616. Proposed Committee Agenda Guidelines . . . . 261

K. Report of the Faculty, Staff & Student AffairsCommitteeo. Vice President's Monthly Report. . . . . o o o 261

2. Approval - Administrative Fringe Benefits, . . 2613o Pay Equity Options . . . . . . . . . . . . . . 2624o Student Services Fees Recommendations . . . .. 2625. Tenure Regulations Amendment . . . . . . . . . 2626. Recognition of Outgoing Civil Service Committee

Members . . . . . . . .. . . . . . . . . . . 262L. Report of the Physical Planning & Operations

Committee1. Vice President's Monthly Report ....... . 2622. Approval - Acquisition of Land & Construction

of a Replacement Facility for the CommunityUniversity Health Care Center. .. ...... . 262

3. Approval - Supercomputer Facility Purchase . . . 2624. Approval - Spooner Hall Heating Plant Replace-

ment and Blakely Hall New Stair Tower, Morris. . 2635. Approval - Boynton Health Service, Environmental

Controls Replacement and Energy ManagementInstallation . . . . . . . .. . . . . . 263

6. Committee Agenda Guidelines Policy . . . .. . 2637o Repairs of Parking Structures. . . . . .. . . 2638. Northrop Auditorium Renovation of Stage

Lighting and Lighting Control Equipment. . . . . 2639o Department of Anthropology Remodeling. . . . . . 263

10. Make-up System Replacement in Heating PlantBuilding #34 . . . . . . . . . . . . . . . . . 263

11. Remodeling of Avian Health Laboratory. . . . . 26312. Peters Hall Construction - Aquifer Thermal

Energy Heating . ... ......... . . . 264

13. Sale of Property at Rosemount. . ..... .... .26414. Request for Update on Boilers. . ..... . . . 264

M. New Business1. Request for Update on Collective Bargaining. . . 2642. Request for Update on Agreements . . . . . .. .264

Year 1987-88


BOARD OF REGENTS

Audit Committee

April 6, 1988

A meeting of the Audit Committee of the Board ofRegents was held on Wednesday, April 6, 1988, at 12:30p.m. in the Regents' Room, .238 Morrill Hall.

Regents present: Regent Anderson, presiding;Regents Lebedoff and McGuiggan, committee members. OtherRegents attending included: Regents Kuderer, Moore, andSchertler.

Staff present: . Controller Campbell; SecretaryWilson; Hospital Controller Fearing; Director of Audits,Patrick Spellacyo

Representatives from Peat Marwick & Main: SusanBoeding, John Gesme, Steve Laible, and James Wicker.

Mr. Steve Laible, Peat Marwick & Main, reviewed theaudit process used by Peat Marwick & Main which includedan explanation of the statements of auditing standards,an overview of the audit approach, and a detailedexplanation of the 1988 audit to be performed for theUniversity of Minnesota campus and hospital.

Regents posed many questions relating to thediscretionary fund and why it was not in recognizableform to auditors. Mr. Liable reported that the amount ofthe fund was included in the financial statements butthat the external auditors were not aware of howmanagement communicated those figures to the Board ofRegents.

Regent Lebedoff asked if a mechanism could be builtinto the auditing procedures to determine whether the useof funds would be consistent with University policies.

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Regent Moore suggested that one solution might befor the auditors to report directly to the Board insteadof management. Regent Lebedoff stated that he agreedwith Regent Moore regarding direct reporting to the Boardof Regents, however, that should not precludeAdministration from notifying Regents as to when itemsare inconsistent with Regents' policies.

Mr. Laible stated that he would have no objection toreporting directly to the Board, however, a process needsto be established for the procedure to be initiated. Hestated that presently the process is linked to financialstatements and not to budget processes or managementpresentations. He indicated that the process to beestablished should include 1) a clear agreement on thestructure of the audit committee and the relationshipwith major auditor components (external auditor, internalauditor and Legislative Auditor; 2) incorporation ofRegents concerns; and 3) procedures to report directly tothe Regents any issues and concerns that arise during theaudit process.

Following the presentation and discussion with therepresentatives from Peat Marwick & Main, Mr. PatrickSpellacy, Director of Internal Audits, presentedinformation on .internal auditing performed at theUniversity of Minnesota which included the fiscal year1989 audit plan; and explanation of overall auditmethodology, definition of audit types, units and auditdates from 1983 to present; a summary of complete audituniverse; and entities not covered by internal audits.

After further discussion, Regent McGuiggan presentedthe following suggestions for the committee and theauditors to review before the next meeting:

1. The audit committee should recommend and checkthe fees and the firms,

a. This committee should have on-going lifewith staggered terms and should meet 2 to3 times yearly.

b. The committee should charge the externalauditors before they do their audit andthese same auditors should prepare a planfor us to review.

2. The internal auditors should also submit a planto the audit committee before beginning.

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3. The committee should meet after the audits havebeen completed to receive them. We should seethe general audit and a white paper audit ifsuch is compiled.

4. Meetings should be conducted with allparticipants present after the audit has beensubmitted and an audit agenda prepared by theaudit committee chairman after the review hasbeen completed.

5. After the review has been completed, themanagement can be excused and the inside andoutside auditors should meet with thecommittee.

6. After that, the audit committee then meetsalone and makes the final recommendations, evenwithout the Secretary.

7. The audit committee should meet with managementthree months later to see if audit results havebeen fulfilled.

80 If anything unusual is found, the auditors willcome directly to the audit committee.

Inside auditors should have direct reporting processto the audit committee if and when needed.

We should know how the internal auditors coordinatetheir review with the external auditors.

There are audit books available by variousaccounting firms and on the state and nationallevel. We should review those procedures.

In addition, Regent McGuiggan requested that theSecretary of the Board of Regents work with Mr. Spellacyto revise the mission statement of the Internal AuditDepartment.

The meeting adjourned at 3:00 p.m.

DUANE A. WILSON, Secretary

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Year 1987-88


BOARD OF REGENTS

Special Meeting - Committee of the Whole

April 7, 1988

A special meeting of the Committee of the Whole ofthe Board of Regents was held on Thursday, April 7, 1988,at 8:40 a.m. in the Regents' Room, 238 Morrill Hall.

Regents present: Regent Lebedoff, presiding;Regents Anderson, Casey, Craig, Grahek, Hilke, Kuderer,McGuiggan, Moore, Roe, Sahlstrom and Schertler.

Staff present: President Sauer; Vice PresidentsBenjamin, Vanselow and Wilderson; Secretary Wilson;Associate Vice Presidents Murthy, Robb and Perlmutter;Chancellors Frederick, Imholte and Sargeant.

Student Representative present: Geoff Pollak.

Regent Lebedoff stated that the purpose of thespecial meeting was to hold another open hearingregarding the Academic Priorities document. He indicatedthat the Regents will not make any decisions on therecommendations contained in that document until therehave been adequate opportunities for discussion.

The following individuals addressed the committeeregarding various aspects of the document:

Tim Dunn, Student

Paul Cavitt, Graduate Student

Caesar Farah, ProfessorSouth & Southwest Asian Studies

Lynette Grouse, Graduate Student

Rebecca Seal, Graduate Student

Miriam Cameron, Graduate Student

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Christian Barney, Student

Robert Gorlin, Regents' ProfessorDentistry

Vernon Ruttan, Regents' ProfessorAgricultural & Applied Economics

Edward Ney, Regents' ProfessorPhysics & Astronomy

Kay MacKenzie, PresidentSchool of Nursing Alumni Society

Alice SwanMinnesota Nurses Association

Edward Cushing, ProfessorEcology & Behavioral Ecology

John Howe, Interim University LibrarianUniversity Libraries

Walter Johnson, ProfessorAssembly Committee on Undergraduate Education

Bob Prifrel, PresidentCollege of Education Alumni Society

Albert V. de Leon, Executive DirectorCouncil on Asian-Pacific Minnesotans

Michael UngerMinnesota Alumni Association

Bruce Vandal, Student

Curt JohnsonCitizen's League

Burton PauluKUOM

Barry Wentling

Carol Grishen, Graduate Student

Mark BraseMPIRG

Ray Roibal

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Sharon McDonaldFaculty Advisory Committee for Women

Muhammad Barker, ProfessorSouth & Southwest Asian Studies

Rahul GoshSouth & Southwest Asian Studies

Anu Batchu, StudentSouth & Southwest Asian Studies

Dr. Shashikanl SaneSouth & Southwest Asian Studies

Andrea SheltonSouth & Southwest Asian Studies

Teirab AshShareef, Assistant ProfessorAfro-American & African Studies

Charles Bitz

Greg BlazSouth & Southwest Asian Studies

The meeting adjourned at 11:50 a.m.


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Year 1987-88


BOARD OF REGENTS

Physical Planning & Operations Committee

April 7, 1988

A meeting of the Physical Planning and OperationsCommittee of the Board of Regents was held on Thursday,April 7, 1988, at 3:30 p.m. in the Regents' Room, 238Morrill Hall.

Regents present: Regent Roe, presiding; RegentsAnderson, Craig, Grahek, Kuderer, and Sahlstrom.

Staff present: President Sauer; Vice PresidentsDunham, and Vanselow; Secretary Wilson; Associate VicePresidents Hewitt and Thomas; Treasurer Campbell.

Student Representatives present: Mary Conzemius andDebbie Gabrelcik.

NEW BUSINESS

Regent Roe referred to a letter that members of theBoard of Regents received relating to the sale ofUniversity property at the Rosemount Research Center. Hestated that it is his understanding that before anyUniversity land can be sold, the proposal should bepresented to the Board of Regents. He stated that thishas not been presented to the Board and that beforeAdministration proceeds further, information should begiven to the Board. Regent Roe also requested that thelong-range development plan for Rosemount be presented tothe Board for review at a meeting in the near future.

Regent Roe requested an update on the boilers at theUniversity of Minnesota at a future meeting.

VICE PRESIDENT'S MONTHLY REPORT

The committee voted unanimously to recommendapproval of the Vice President's Monthly Report. SeveralRegents posed questions regarding items listed in thereport. Regent Kuderer stated that he was concernedabout the number of individuals that are unfamiliar with

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purchasing procedures and asked that some process be putinto place to distribute this information.

COMMITTEE AGENDA GUIDELINES

The committee reviewed a draft policy that wouldconfirm and expand the reporting and approval guidelinesfor bringing capital, physical plant and purchasingactivities to the Physical Planning & OperationsCommittee. Vice President Dunham reviewed details of thereport by each section which included guidelines forprojects to be presented to the Board as separate itemson the monthly agenda for prior approval; guidelines forprojects to be reported to the Regents in the VicePresident's Monthly Report; reporting procedures for theUniversity of Minnesota Hospital and Clinic; and asection on Definitions.

He reported that the proposed policy was formulatedfrom discussions that occurred during the past year onthe subject as well as from comments made by the auditorsin terms of increasing and clarifying the reportingguidelines to the committee.

After discussion and proposed changes suggested bycommittee members, Vice President Dunham reported that hewould bring the policy back for discussion at the Maymeeting with changes incorporated in the policy for thecommittee's review.

ACQUISITION OF LAND AND CONSTRUCTION OF AREPLACEMENT FACILITY FOR THE

COMMUNITY UNIVERSITY HEALTH CARE CENTER

The committee voted unanimously to recommendapproval of a resolution authorizing the execution of thenecessary documents for purchase of the property at 1521E. Franklin Avenue, Minneapolis, for a price not toexceed $265,000.

SUPERCOMPUTER FACILITY PURCHASE

The committee voted unanimously to recommendapproval of a resolution that would cancel the PurchaseAgreement for the Minneapolis Community DevelopmentAgency's interest in the Supercomputer facility. Inaddition, the appropriate Administrative officers areauthorized to execute the Condominium Declaration andArticles of Incorporation of the 1200 Washington AvenueCondominium.

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It was reported that after considerableadministrative deliberations, it was determined that theUniversity has a continued need for the Lauderdalefacility.

SPOONER HALL HEATING PLANT REPLACEMENTAND BLAKELY HALL NEW STAIR TOWER

MORRIS CAMPUS

The committee voted unanimously to recommendapproval for the appropriate administrative officers toproceed with the design and construction of the SpoonerHall Heating Plant Replacement Project and the BlakelyHall New Stair Tower Project, both located on the MorrisCampus.

It was noted that the cost estimate for the heatingsystem replacement in Spooner Hall was $167,100 with anestimated completion date of September 1988, and thecost estimate for the Blakely Hall project increasedfrom $155,600 to $189,000 with an estimated completiondate of August 1988.

BOYNTON HEALTH SERVICE, ENVIRONMENTAL CONTROLSREPLACEMENT AND ENERGY MANAGEMENT INSTALLATION

TWIN CITIES CAMPUS

The committee voted unanimously to recommendapproval to proceed with the design and construction ofthe Boynton Health Service Environmental ControlsReplacement and Energy Management Installation Projectlocated on the Twin Cities Campus.

MILLARD HALL, PHARMACOLOGY OFFICES REMODELING

This item was delayed at the request of theAdministration.

REPAIRS OF PARKING STRUCTURES

The committee reviewed a proposal to proceed withthe design and construction of the Parking StructuresAnnual Repairs Project located on the Twin Cities CampusAssociate Vice President Hewitt reported that due to thedeterioration of concrete and steel components to the

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ramps, a restoration program is to be initiated to repairdamaged areas and prevent or slow down futuredeterioration. It was reported that the estimated costof the project is $869,000 with completion scheduled forNovember 1988.

NORTHROP AUDITORIUM RENOVATION OF STAGE LIGHTINGAND LIGHTING CONTROL EQUIPMENT

The committee reviewed a proposal to proceed withthe design and construction renovation of the NorthropAuditorium stage lighting and lighting control equipmentlocated on the Twin Cities campus. Associate VicePresident Hewitt reported that the equipment needs to beupgraded to meet the requirements of the performingartists and groups utilizing the Northrop Auditoriumfacilities. He reported that the estimated cost of theproject is $235,000 with completion scheduled forDecember 1988.

FORD HALL REMODELING, ROOMS 256, 261, & 269DEPARTMENT OF ANTHROPOLOGY

TWIN CITIES CAMPUS

The committee reviewed an administrative requestthat would authorize the design and construction of theFord Hall Remodeling Project (Rooms 256, 261 and 269) forthe Department of Anthropology located on the Twin CitiesCampus. Estimated cost of the project is $157,700 withcompletion scheduled for September 1988.

HEATING PLANT BUILDING #34, MAKE-UP SYSTEM REPLACEMENTTWIN CITIES CAMPUS

The committee reviewed an administrative requestthat would authorize the design and construction of theHeating Plant Building #34 Make-up Air system ReplacementProject located on the Twin Cities Campus. It wasreported that the work is required to replace corrodedunrepairable air make-up coils. The estimated cost ofthe project is $279,250 with completion scheduled forDecember 1988.

VETERINARY SCIENCE BUILDING, AVIAN HEALTHLABORATORY REMODELINGTWIN CITIES CAMPUS

The committee reviewed an administrative requestthat would authorize the design and construction of theVeterinary Science Building, Avian Health LaboratoryRemodeling Project on the Twin Cities Campus. Associate

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Vice President Hewitt reviewed the scope of the projectand reported that the estimated cost of the project is$520,000 with construction to be completed by January1989o

AQUIFER THERMAL ENERGY STORAGE UTILIZATION FORSPACE HEATING, PETERS HALL

TWIN CITIES CAMPUS

The committee reviewed an administrative requestthat would authorize the design and construction of aproject that would allow Peters Hall to be heated byutilizing stored aquifer thermal energy. Associate VicePresident Hewitt reported that the project would consistof the installation of all necessary piping, water-to-water heat exchangers, pumps, controls and necessaryelectrical work to permit the use of aquifer water forspace heating in Peters Hall.

He reported that the estimated cost of the projectis $180,000 with construction to be completed by October1988o

AUDIT REPORT/PHYSICAL PLANT OPERATIONS

The agenda 'item relating to the Audit Report on

Physical Plant Operations was delayed.



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Year 1987-88


BOARD OF REGENTS

Finance & Legislative Committee

April 7, 1988

A meeting of the Finance & Legislative Committee ofthe Board of Regents was held on Thursday, April 7, 1988at 1:30 p.m. in the Regents' Room, 238 Morrill Hall.

Regents present: Regent Anderson, presiding;Regents Kuderer, Lebedoff, McGuiggan, Moore, and Roe.

Staff present: President Sauer; Vice PresidentsDunham and Vanselow; Secretary Wilson; TreasurerCampbell; and Investment Director Paschke.

Student Representatives present: Ann Bernard andElizabeth Wilson.


The committee voted unanimously to recommendapproval of the Vice President for Finance MonthlyReport.

Controller Campbell reported that a new item listingthe University's reserves will be added to the reporteach month.

She also called the committee's attention to an itemin the Accounts Receivable section relating to the write-off of a receivable pertaining to the University ofMinnesota Clinical Associates in the amount of$105,195.36. Mr. Robert Dickler, Director of theUniversity Hospital, reviewed the particularcircumstances of this write-off for the committee.

Regent Kuderer raised questions regarding write-offprocedures and if the same policies apply to both theUniversity and the University of Minnesota Hospital.

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Mr. Dickler reported on the Hospital procedures forwrite-offs indicating that the parameters used by theUniversity Hospital for collections and write-offs dodiffer from the procedures used by the University due tothe variety of payers (Medicare, Medicaid, commercialinsurance, HMO, etc.) that the Hospital must collectfrom, and that internal as well as external collectionprocedures are used.

Regent Kuderer asked if the General Counsel andUniversity attorneys were involved in the formulation ofthose policies. Vice President Dunham stated thatUniversity attorneys reviewed these policies whenformulated, but that he feels it would be timely for theGeneral Counsel's office to review the legal/financialissues relating to the policies that pertain toreceivables.

PROPOSED EXPENDITURE OF CENTRAL RESERVES

President Sauer reviewed the administrations' sproposal for allocations from the central reserves of theUniversity from 1989-1991. He reviewed proposed incomeand expenditure allocations for the next three years andstated that these estimates would result in a reservebalance of slightly less than $28.5 million at the end offiscal 1991. He stated that he firmly believes that aminimum cash reserve of $40 million is appropriate forthe University and that further difficult decisions aregoing to have to be made for fiscal year 1990 and beyond.

He further stated that several commitments have beenmade to fund what are recurring program needs and that hefeels this type of funding is inappropriate for thereserve fund. He stated that reserve funds are meant foremergencies, one-time initiatives, or for funding upfront recurring program needs where dollars are in handto replace that commitment at the end of the soft fundingperiod. President Sauer stated that while he feels theUniversity should honor commitments already made, hebelieves it is essential that the University return tothe practice of funding only non-recurring projects fromcentral reserves.

President Sauer further reported that he has askedVice President Campbell to develop a proposed set ofguidelines for the future use of reserves which would beavailable for Regents' review in May. The guidelineswould include appropriate categories of expenditures; howmuch should be maintained undisturbed except for severeemergencies; what categories and levels of expenditures

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should be brought to Regents for approval; and theprocess for keeping Regents informed on all expenditures.

Several Regents had questions regarding particularitems listed on the proposed allocation list, andPresident Sauer stated that he would provide thecommittee with an annotative narrative of the list with aparagraph explaining each item before the May meeting.

An item relating to the need for additionalrecurring resources to lease an ETA-10 supercomputer wasdiscussed by the committee. President Sauer providedbackground information on the issue noting that theUniversity's 1988 Legislative Request contained an itemasking for an additional $4.7 million per year to beadded to the Supercomputer Special for use in thepurchase and operation of the ETA-10 supercomputerdescribed in the contract between the MinnesotaSupercomputer Center and the ETA Corporation. Thecontract specified that execution of the contract wouldbe contingent upon the State appropriating the additionalfunding.

President Sauer stated that since the University hadwithdrawn its 1988 Legislative Request, funding for theETA-10 from the Legislature was no longer forthcoming. Hefurther reported that a suggestion had been made that the$4.7 million be provided for from the central reserves.President Sauer stated that he is opposed to thesuggestion indicating that to take the money from centralreserves, in the absence of new funding, violates twoprinciples: a) it would be contrary to the Universitypriorities and lease contract, and b) as arecurring/annual budget need, it is not an appropriateuse of one-time reserves.

The committee engaged in an extended discussion withRegents Anderson and Roe speaking in favor of providingthe $4.7 million needed to lease the ETA-10 from centralreserves. Regent Anderson noted that he believed thatthe Legislature expected the University to purchase theETA-10 with funds from the Central Reserves and that themove would help to restore credibility with theLegislature. Several concerns were raised by Regentsand Regent Lebedoff stated that he would like to continuethe discussion at the Friday Board meeting.

DISCLOSURE OF FINANCIAL ARRANGEMENTS WITH INDUSTRY

The committee reviewed a proposed policy entitled"Disclosure of Financial Arrangements with Industry".Associate Vice President A. R. Potami reported that the

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proposed policy was developed in response to arecommendation in the Guidelines on Interactions withIndustry, and because of the increasing numbers andvariety of relationships with the private sector. Hestated that the policy encourages faculty interactionswith industry by ensuring an environment supportive ofsuch activities, while at the same time maintaining highethical and professional standards and furthering theUniversity's missions. In addition, the policy providesadequate safeguards for faculty and the University, aswell as appropriate review mechanisms when consideringrelationships with industrial sponsors.

The committee discussed details of the proposedpolicy and concerns were raised relating to theappointment of a standing committee from within theUniversity to deal with issues concerning the policy.Regents McGuiggan and Moore asked that individual unitsto be represented on the committee be authorized toappoint members to the committee rather than the VicePresident for Academic Affairs appointing the members.Associate Vice President Potami stated that he wouldprepare a revision to the policy for action at the nextmeeting.

DELEGATION OF AUTHORITY REGARDING LEGAL SERVICE

Vice President Dunham reviewed budget informationfor the Office of the General Counsel including the costof private attorneys and a proposed policy relating tothe hiring of outside counsel. In addition, reportingrequirements to the Board of Regents were reviewed.

Mr. Dunham highlighted several items in his reportwhich included 1) the fact that this proposed policy is adelegation of authority to hire attorneys from outsidethe University Attorneys Office and to enter into relatedcontracts for services incurred as part of a legal matterto the Vice President and General Counsel and his or herdelegates in the University Attorneys Office, includingthe attorneys serving the Hospital and Clinic; 2) thatthe decision to hire outside counsel is made on a case bycase decision and that a competitive bid process is notused; 3) that fees for outside legal services are paidfrom recurring monies in the budget; and, 4) as attorneyfees are very hard to determine, there will be times whenthe fees are over the budgeted amount. In this case, themoney to cover the fees will be taken from centralreserves.

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In answer to a question, Mr. Dunham reported thatthe areas that usually require outside counsel include:tax, intercollegiate athletics, patent litigation, bonds,personal injury, professional malpractice, conflict ofinterest, immigration, and some construction cases. In-house areas include employment litigation, contractlitigation, constitutional right litigation, review ofcontracts, student litigation, labor, collectivebargaining, Rajender litigation, and arbitrationsinvolving faculty. He stated that well over half of thelitigation is performed in-house.

Mr. Dunham reported that this proposed policy willbe on the agenda in May for action.

USE OF MEDICAL INC, PROCEEDS

The committee voted unanimously to recommendapproval of a resolution authorizing the allocation ofthe judgement award in the lawsuit Regents of theUniversity of Minnesota vs. Medical Incorporated in theamount of $1,916,000 to be as follows:

$1 million to be used as partial fulfillment ofthe matching provisions in Medtronic's gift tothe Minnesota Campaign for the Center forBiomedical Engineering;

$500,000 to be used as a match for $500,000 fromthe Permanent University Fund to establish aLand-Grant chair in the Neurosciences; and

the remainder (approximately $416,000) to bepartially matched by another private gift tocreate a $740,000 endowment for studentfellowships in the M.D./Ph.D. Program.

NEW BUSINESS

Controller Campbell stated that the committee hadreceived a memorandum concerning a proposed change in aninvestment manager for the University. She stated thatthis item will be on the agenda for action in May and ifcommittee members have any questions, please contact heroffice.



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Year 1987-88


BOARD OF REGENTS

Educational Planning & Policy Committee

April 7, 1988

A meeting of the Educational Planning and PolicyCommittee of the Board of Regents was held on Thursday,April 7, 1988, at 3:30 p.m. in Room 300, Morrill Hall.

Regents present: Regent Casey, presiding; RegentsHilke, Lebedoff, McGuiggan, Moore and Schertler.

Staff present: Vice President Benjamin; SecretaryWilson; Assistant Vice President Wallace; Chancellorlanni.

Student Representatives present: Eyenga Bokamba andDave Minkkinen.

ESTABLISHMENT OF FREE-STANDING MINORSAT THE MASTER'S AND DOCTORAL LEVELS IN

QUATERNARY PALEOECOLOGY, COGNITIVE SCIENCE,INTERFACIAL ENGINEERING AND MICROBIAL ECOLOGY

The committee voted unanimously to recommendapproval of the proposed establishment of free-standingminors at the Master's and Doctoral levels in QuaternaryPaleoecology, Cognitive Science, Interfacial Engineeringand Microbial Ecology.

PROPOSAL TO CHANGE M.S. DEGREE PROGRAMIN MUSEOLOGY TO A FREE-STANDING MINOR AT THEMASTER'S AND DOCTORAL LEVELS AND NAME CHANGE

OF THE RESTRUCTURED PROGRAM TO MUSEUM STUDIES

Vice President Benjamin and Lyndel King, Director ofthe University Art Museum, discussed a proposal to changethe M.S. degree program in Museology to a free-standingminor at the Master's and Doctoral levels and to changethe name of the program to Museum Studies.

Following a brief discussion, Regent Casey stated

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that this item will be presented for approval at the Maymeeting.

DISCONTINUATION OF MINOR IN AEROSPACE STUDIES, UMD

Vice President Benjamin and Lawrence lanni,Chancellor of the Duluth Campus, reviewed a proposal todiscontinue the minor in Aerospace Studies at UMD. Dr.Ianni stated that UMD was recently notified that the AirForce ROTC unit on campus is scheduled for closure at theend of Spring Quarter, 1989 and the proposal todiscontinue the minor is the result of that closure.

Regent Casey stated that this item will be presentedfor approval at the May meeting.

ESTABLISHMENT OF A FREE-STANDING MINOR IN WATER RESOURCESFOR THE M.A./M.S./Ph.D. DEGREES

Vice President Benjamin presented a proposal toestablish a free-standing minor in Water Resources forthe M.A., M.S. and Ph.D. degrees. Dr. Benjaminintroduced Andrew Hein, Associate Dean of the GraduateSchool, and Heinz Stefan, Professor of Civil and MineralEngineering and Chairman of the ad hoc committee whichdeveloped the proposed free-standing minor. Dr. Stefandiscussed the proposal, and commented on the enthusiasticsupport it has received.

A brief discussion ensued, and Regent Hilkecommended Professor Stefan and his colleagues for theirefforts in the development of the proposed program.Regent Casey stated that this item will be presented forapproval at the May meeting.

REPORT OF THE TASK FORCEON POST-SECONDARY QUALITY ASSESSMENT

Regent Casey indicated that the Preliminary Reportof the Task Force on Post-Secondary Quality Assessmentwas the major theme of the Higher Education CoordinatingBoard annual meeting in February, and that RegentMcGuiggan asked that it be placed on the agenda. It wasnoted that HECB was directed by the 1987 MinnesotaLegislature to form the Task Force, comprised ofrepresentatives from post-secondary education systems inthe state, to study the goals of quality assessment andways to use quality assessment to improve post-secondaryeducation.

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Assistant Vice President Wallace led a lengthydiscussion regarding the preliminary report and theprojects which have been undertaken at the University toimprove assessment of the education provided tostudents. The projects include initiatives associatedwith the new preparation requirements, with faculty andstaff concerns and with University programs.

A lengthy discussion ensued, and committee membersexpressed great interest in the projects discussed by Dr.Wallace. Following the discussion, Regent Casey thankedDr. Wallace for his presentation and asked him to providethe committee with an update at a future meeting.

COMMITTEE AGENDA GUIDELINES

Regent Casey and Vice President Benjamin discussedthe following proposed committee agenda guidelines:

1) Proposals for new schools, colleges ordepartments and new program majors will be presented asindividual items, for information one month and actionthe next.

2) Proposals for program name changes, new programminors and program discontinuations will be included in aVice President's Monthly Report, which will be presentedfor information and action the same month. The Reportwill also include relevant items from HECB.

3) The practice of presenting a monthly report ona University center or institute will be continued, andappropriate ad hoc items will continue to be presented tothe committee.

4) A semi-annual report on major academic issueswill be presented to the committee.

A lengthy discussion followed the presentation.Several Regents made suggestions regarding possibleagenda items, including keeping the committee informedwhen any reserve funds are expended for educationalprograms and on issues of faculty concern relating toeducational policies and programs. It was the consensusof the committee to follow the proposed guidelines.



243

Year 1987-88


BOARD OF REGENTS

Faculty, Staff & Student Affairs Committee

April 7, 1988

A meeting of the Faculty, Staff and Student AffairsCommittee of the Board of Regents was held on Thursday,April 7, 1988, at 1:35 p.m. in Room 300, Morrill Hallo

Regents present: Regent Hilke, presiding; RegentsCasey, Craig, Grahek, Sahlstrom and Schertler.

Staff present: Vice Presidents Benjamin andWilderson; Secretary Wilson; Associate Vice PresidentsMurthy, Perlmutter and Robinett; Assistant ProvostBakkenist; Assistant Vice Presidents Barbatsis andWallace; Chancellors Frederick, lanni, Imholte andSargeant.

Student Representatives present: Geoff Pollak andDiedra Richardson.


Vice President Benjamin presented the VicePresident's Monthly Report, including a supplement, tothe committee for approval. The supplement included thefollowing items: Appointment of Richard Sauer as InterimPresident, effective March 16, 1988; appointment of C.Eugene Allen as Acting Vice President, Institute ofAgriculture, Forestry and Home Economics and ActingDirector, Agricultural Experiment Station, effectiveMarch 16, 1988; appointment of W. Keith Wharton as ActingDean, College of Agriculture, effective March 16, 1988;appointment of Laurie Hayes as Acting Assistant Dean,College of Agriculture, effective March 16, 1988;appointment of Carol Campbell as Acting Vice Presidentfor Finance and Physical Planning, effective April 1,.1988; leave of absence for Barbara Muesing, Secretary tothe Board of Regents, effective April 15, 1988.

There was a brief discussion regarding PresidentSauer's compensation. Regent Hilke noted that a

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recommendation regarding Secretary Wilson's compensationwill be presented for approval at the May meeting.

In response to questions from committee members, Dr.Benjamin presented an update on the search for the newAssistant Vice President for Minority Affairs. He notedthat the search committee recommended two finalists forthe position. In an effort to make sure there was aproper pool of candidates, Dr. Benjamin stated that heconsulted with Patricia Mullen and received permissionfrom the search committee to add the names of twoadditional finalists for consideration. After theinterview process, Dr. Benjamin stated that he will makea recommendation to President Sauer, who will thenconsult with members of the Board before making hisfinal decisiono Regent Schertler stated for the recordthat she has had concerns regarding the process followedin previous searches, and she asked that the Regents bekept informed prior to a recommendation being presentedto the Board for approval.

Following the discussion, the committee votedunanimously to recommend approval of the VicePresident's Monthly Report, including the supplement,

PLAN FOR PAY EQUITY FUNDING

Vice President Benjamin and Roger Forrester,Director of the University Personnel Department, led adiscussion regarding funding of pay equity adjustmentsfor Civil Service employees. The administration intendsto complete the pay equity implementation process by1990-91.

Mr. Forrester stated that approximately $1.2 millionwill be provided for pay equity adjustments in 1988-89,which represents 2 percent of the approximately 7 percentof the Civil Service salary base needed to achieve totalpay equity. These salary adjustments will be effectiveJanuary 1, 1989. Mr. Forrester indicated that the sourceof funding had not been determined, but he noted that thefunds will not be taken from Civil Service, faculty orstudent salary resources. He stated that detailsregarding 1989-90 and 1990-91 pay equity adjustments havenot yet been developed.

The committee discussed the proposal, including thesource of funding. Barbara Bartholomew, Chair of theCivil Service Committee, stated that the Committeeendorses the plan for pay equity funding. Following thediscussion, it was noted that the proposal for funding

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the pay equity adjustments will be incorporated into the1988-89 Budget Plan, which will be presented for approvalat the May meeting.

ADMINISTRATIVE FRINGE BENEFITS

Vice President Benjamin reviewed the proposedprocedures for clarification of the administrative fringebenefits program for senior administrators at theUniversity. Under the new procedures, specialarrangements for Deans, Vice Presidents and Chancellorswill be reported in the Vice President's Monthly Reportwith the appointment information if:

1. The arrangements represent a personalbenefit to the individual (in contrast toprofessional support such as equipment or spacerenovation); and

2. They cover a time period following the dateof initial appointment; and

3o The period extends more than six monthsfrom the date of initial appointment; or

4. The arrangements exceed one month's salaryin total value.

Following a brief discussion, the committee votedunanimously to recommend approval of the proposedprocedures.

STUDENT SERVICES FEES - ALL CAMPUSES

Vice President Wilderson introduced PatriciaAnderson, Chair of the Twin Cities Campus Student FeesCommittee, Assistant Vice President Barbatsis and StudentRepresentatives Geoff Pollak and Diedra Richardson, whoparticipated in the fee-setting process. He alsointroduced Donald Peters, the new Director of theBoynton Health Service.

Dr. Wilderson reported that the revised fee-settingprocess, which was approved by the Regents in June of1987, worked very well this year. He then presented thefollowing proposals for 1988-89 student services fees:

1) Twin Cities Campus - $109.20Summer Session - $50.76

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2) Crookston Campus - $59.75

3) Duluth Campus - $74.10Summer Session - $27.70

4) Morris Campus - $73.00

5) Waseca Campus - $53.10

A brief discussion ensued regarding the proposedfees, including the health service fee. Donald Peters,the new Director of the Boynton Health Service, addressedthe issues raised regarding the health service. Onbehalf of the committee, Regent Hilke welcomed DirectorPeters to the University of Minnesota.

Following the discussion, Regent Hilke indicatedthat the proposed fees will be presented for approval atthe May meeting.

AMENDMENT OF TENURE REGULATIONS

Regent Hilke stated that he was informed that theamendment of the tenure regulations was proposed by thefaculty Senate, which does not represent faculty who aremembers of collective bargaining units. He stated thathe assumes there will be a meet and confer sessionrelating to the proposed amendment.

Vice President Benjamin presented the followingproposed amendment to the Regulations Concerning FacultyTenure, which is a formal interpretation of Section 7.11:

2. Interpretation of 7.11: Discipline-Related Service. Discipline-related service,as one of the primary criteria for tenureevaluation, is limited to those endeavorsspecifically related to the individual'sacademic expertise and faculty appointment inaccordance with the academic unit's MissionStatement. This service must be defined in theMission Statement as central and necessary tothe operation of the academic unit. Anequivalent term might be "unit mission-relatedservice" -- for example, clinical service in ateaching hospital situation that does notinvolve students directly.

There was an extensive discussion regarding theproposed amendment. University Attorney Karen Schanfieldindicated that the University intends to engage in a meet

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and confer session with representatives of the UniversityEducation Association (UEA) before this amendment ispresented for approval at the May meeting. ProfessorGeorge O'Brien, President of the UEA, and ChancellorIanni expressed concerns regarding the proposed amendmentand the proposed meet and confer session. Committeemembers asked that the issues be resolved before theRegents are asked to take action on the proposedamendment.

RECOGNITION OF OUTGOING CIVIL SERVICE COMMITTEE MEMBERS

President Sauer expressed appreciation to DennisHill, Vivian Jenkins Nelson and Raleigh Kaminsky fortheir service on the Civil Service Committee.

Roger Forrester, Director of the PersonnelDepartment, presented a special award to Raleigh Kaminskyfor her service as Chair of the committee. RaleighKaminsky stated that it has been a pleasure to serve onthe committee, and expressed appreciation to the Regentsfor their support of the proposal for funding pay equityadjustments.

The committee expressed appreciation to the threeoutgoing members for their hard work.



248

Year 1987-88


BOARD OF REGENTS

Committee of the Whole

April 8, 1988

A meeting of the Committee of the Whole of theBoard of Regents was held on Friday, April 8, 1988, at8:45 a.mo in the Regents' Room, 238 Morrill Hall.

Regents present: Regent Lebedoff, presiding;Regents Anderson, Casey, Craig, Grahek, Hilke, Kuderer,McGuiggan, Moore, Roe, and Schertler.

Staff present: President Sauer; Vice PresidentsAllen, Benjamin, Campbell, Dunham, Heydinger, Vanselowand Wilderson; Secretary Wilson; Associate VicePresidents Foster, Murthy, Perlmutter and Robb; AssistantVice Presidents Berg and Potami; Chancellors Frederick,lanni and Imholte.

Student Representative present: Geoff Pollak.

PERSONNEL

Regent Lebedoff introduced C. Eugene Allen, who willserve as Acting Vice President, Institute of Agriculture,Forestry and Home Economics, effective March 16, 1988,and Carol Campbell, who will serve as Acting VicePresident for Finance and Physical Planning, effectiveApril 1, 1988.

RESOLUTION IN SUPPORT OF COMMITMENT TO FOCUS

Regent Lebedoff presented the following resolutionto the committee for approval:

WHEREAS, the people of Minnesota deservethe highest quality University at which theymay be educated and the research and servicemissions to our state performed; and

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WHEREAS, it is consistent with our landgrant roots to insist that public education beas good as that obtainable at privateinstitutions; and

WHEREAS, the economic future of the Stateof Minnesota is intrinsically and inescapablylinked to the academic quality of theUniversity of Minnesota;

WHEREAS, the set of goals known asCommitment to Focus recognized these needs andaddressed them with vision, brilliance andintegrity; and

WHEREAS, many of the principal componentsof Commitment to Focus have already beenapproved, often unanimously and never by lessthan substantial majority vote, by the Board ofRegents after careful study, substantialtestimony and public debate; and

WHEREAS, recent events at the Universityof Minnesota, including the resignation ofPresident Kenneth Keller, the principal authorand architect of Commitment to Focus, havecaused some to question whether the Board ofRegents will remain as committed to Commitmentto Focus as during the presidency of itsauthor; and

WHEREAS, the Board of Regents wishes toallay at the outset any misunderstandings onthis matter;

THEREFORE, BE IT RESOLVED, that the Boardof Regents of the University of Minnesotareaffirms its very strong support of theprinciples of Commitment to Focus, and pledgesto continue as swiftly as possible, and withoutpause, the important work of implementing thoseprinciples on behalf of the University and thepeople of Minnesota.

Regent Lebedoff stated that continued support forthe principles contained in Commitment to Focus would notpreclude the Board from discussing the recommendationscontained in the Academic Priorities document.

Following a brief discussion, the committee votedunanimously to recommend approval of the resolution.

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1988-89 BUDGET PRINCIPLES

President Sauer presented the 1988-89 BudgetPrinciples to the committee for approval. He noted anamendment to the Budget Principles which would guide theuse of central reserve funds.

Following a brief discussion, the committee votedunanimously to recommend approval of the 1988-89 BudgetPrinciples, as amended.

1988-89 BUDGET PLAN

President Sauer led a discussion of the proposed1988-89 Budget Plan. He noted that the plan ispredicated on a 5.5 percent increase in tuition.

With regard to salaries, Dr. Sauer noted that theacademic salary base will be increased by 4.25 percentand the civil service salary base will be increased by2.5 percent. In addition, $1 million will be taken fromincreases in the supplies, expenses and equipment budgetand used to fund a mid-year comparable worth adjustmentof 2 percent of the 7 percent needed to achieve total payequity. This will leave approximately $500,000 toallocate for supplies, expenses and equipment. Ratherthan an across-the-board increase, he proposed allocatingthose funds to the Vice Presidents and Chancellors fordistribution to units based on need.

A lengthy discussion followed Dr. Sauer'spresentation, including the issue of comparable worthadjustments and the fact that many important items willnot receive additional funding because there are morecrucial needs. Dr. Sauer noted that the proposed budgetplan will be presented for approval at the May meeting.However, he stated that in order to implement salaryincreases on time, it will be necessary to proceed on theassumption that the plan will be approved by the Regents.

COMMITMENT TO FOCUS - ACADEMIC PRIORITIES DOCUMENT

Vice President Benjamin led a discussion on theAcademic Priorities document, which is theAdministration's response to the recommendationscontained in Plan for Focus. He stated that the processhas included University-wide discussion of the document,in addition to the public hearings held by the Regents.

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Dr. Benjamin used slides to present informationregarding the following major themes: academic policy,academic organization, academic units, funding needs andresources and access. He discussed the land grant-related programs referred to in the document, and VicePresident Vanselow summarized the items in the documentwhich relate to the Health Sciences. Vice PresidentAllen discussed plans for multi-disciplinary research atthe Agricultural Experiment Stations, outreach programsand a proposed five-year reduction in instructionalfunding in the College of Agriculture to be accomplishedprimarily through a transfer of effort.

A lengthy discussion ensued, including the issues ofaccess and the importance of the University's land grantmission. Concerns were expressed that the document doesnot sufficiently address all three parts of the mission.

Following the discussion, it was noted that theAdministration will develop responses to the concernsraised by the Regents and by speakers at the openhearings held in March and April. This item will bepresented for further discussion at the May meeting.

1988-89 TUITION PLAN

President Sauer presented the proposed 1988-89tuition plan to the committee for information. Hereviewed the following alternative plans for implementinga 5.5 percent increase:

- A 5.5 percent increase across the board.

- A 10 percent move toward cost-related tuition,with an upper limit of 8 percent and a lower limit of 3percent.

Vice President Vanselow discussed the severe impactthat the move toward cost-related tuition has had on thehealth sciences units, and he urged the Regents toconsider an across-the-board increase for 1988-89.However, he stated that legislative assistance isnecessary to permanently resolve the problem.

Vice President Benjamin stated that in considerationof the impact of cost-related tuition on professionalschools, the Administration is willing to recommend anacross-the-board 5.5 percent tuition increase for 1988-89.

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Geoff Pollak, Chair of the Student Representatives,presented the position of students with respect to thetuition plan, noting that Crookston and Waseca studentsdo not concur with the suggestion. The proposal callsfor a modification of the cost-related tuition plan, inconjunction with the third place rule, with upper andlower limits of 8 percent and 3 percent respectively.

Following a lengthy discussion, President Sauerstated that the 1988-89 tuition plan will be presentedfor approval at the May meeting.

LEGISLATIVE REQUEST UPDATE

Vice President Heydinger presented a brief update onthe status of the 1988 Capital Request and various ridersin the appropriations which would have an impact on theUniversity.

Dr. Heydinger noted that an additional update willbe presented at the May meeting.

NEW BUSINESS

Regent Schertler distributed a copy of the 1972Report of the University Study Commission, which includesa recommendation to decentralize the administration. Shesuggested that the document should be discussed by theBoard at an appropriate time in relation to the searchfor a new President.

Regent Lebedoff stated that a discussion of thisissue will be scheduled for a future meeting.

PRESIDENTIAL SEARCH

Regent Lebedoff reported that he has appointed acommittee of Regents to draft criteria for the selectionof the President, which committee will consist of RegentsCasey, Hilke, Lebedoff and Moore. He stated that thecommittee will present recommended criteria to the fullBoard for approval.

Regent Schertler noted that she and Regent Lebedoffinterviewed two search firms to assist the Board with thepresidential search process, and she stated that theyrecommend that the Board select Heidrick & Struggles.The committee voted unanimously to recommend approval ofthe recommendation.

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Vice President Dunham presented the followingresolutions to the committee for approval in order tostart the presidential search process:

RESOLVED, that the Chair, the Vice Chairand the Secretary are authorized to work withPatricia Mullen, Director of Equal Opportunity& Affirmative Action, to complete the Form 16and advertising requirements.

RESOLVED, that the Chair and Vice Chairare authorized to work with General CounselDunham to develop recommendations before theMay meeting regarding the appointment of anadvisory committee and the legal issuesrelating to open meetings and access toinformation.

The committee voted unanimously to recommendapproval of the resolutions.

The meeting adjourned at 11:10 a.mo


254

Year 1987-88


BOARD OF REGENTS

April 8, 1988

A meeting of the Board of Regents of the Universityof Minnesota was held on Friday, March 11, 1988, at11:20 p.m. in the Regents' Room, 238 Morrill Hall.

Regents present: Anderson, Casey, Craig, Grahek,Hilke, Kuderer, Lebedoff, McGuiggan, Moore, Roe, andSchertler. President Sauer presided.

Staff present: Vice Presidents Allen, Benjamin,Dunham, Heydinger, Vanselow and Wilderson; SecretaryWilson; Treasurer Campbell; Associate Vice PresidentsHewitt, Robb, Roszell and Thomas; Chancellors Frederickand Imholte.

APPROVAL OF MINUTES

The Board of Regents voted unanimously to approvethe minutes of the following meetings:

Special Meeting - Committee of the WholeMarch 4, 1988 (Interim Report on Renovationof Eastcliff and President's Office Remodeling)

Special Meeting - Committee of the WholeMarch 10, 1988 (Open Hearing - AcademicPriorities)

Physical Planning & Operations Committee -March 10, 1988

Finance & Legislative Committee -March 10, 1988

Faculty, Staff & Student Affairs Committee -March 10, 1988

Educational Planning & Policy Committee -March 10, 1988

Committee of the Whole - March 11, 1988Board of Regents - March 11, 1988Special Meeting - Committee of the Whole

(Resignation of President Keller and Appointmentof Interim President) - March 16, 1988

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Board of Regents' Meeting - March 16, 1988Special Meeting - Committee of the Whole (UniversityReserve Funds and Appointment of InterimSecretary) - March 24, 1988

Board of Regents' Meeting - March 24, 1988

REPORT OF THE PRESIDENT

President Sauer recognized the University ofMinnesota Men's Hockey Team for its achievement onwinning the 1988 WCHA Championship and the Women'sGymnastic Team for its achievement in winning the 1988Big Ten Championship.

President Sauer then called on Provost Benjamin whointroduced Dr. C. Edward Schuh, the new Dean of theHumphrey Institute, Dr. Schuh addressed the Boardbriefly.

President Sauer further reported on the variousitems of business that he has attended to since appointedPresident which included asking Vice President Heydingerto develop a strategic plan for public relations; askingVice President Campbell to develop guidelines for thefuture expenditure of reserves; and the initiation of thesearch for a Vice President for Finance.

REPORT OF THE CHAIR

Chair Lebedoff expressed thanks to Professor W.Phillips Shively, Chair of the Faculty ConsultativeCommittee, President Sauer, and the members of the Boardof Regents for all of their work and accessibility duringthe past few months of turmoil at the University.

GIFTS

Associate Vice President Steve Roszell presentedthe monthly list of gifts to the University ofMinnesota, the University of Minnesota Foundation, theArboretum Foundation and the Minnesota MedicalFoundation.

The Board of Regents voted unanimously to approvethe gifts. Documentation is filed supplement to theminutes, No. 22,009.

CONTRACTS & GRANTS/APPLICATIONS & AWARDS

Vice President Benjamin submitted for approval thecontracts & grants/applications & awards.

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The Board of Regents voted unanimously to approvethe contracts & grants/applications & awards.Documentation is filed supplement to the minutes, No.22,010.

REPORT OF THE AUDIT COMMITTEE

Regent Anderson, Chair of the Committee, reportedthat the committee had met with representatives from PeatMarwick & Main to discuss the nature and scope of futureexternal financial audits, the proposed internal auditschedule, and the future role of the Regents' AuditCommittee.

REPORT OF THE SPECIAL MEETINGCOMMITTEE OF THE WHOLE

Chair Lebedoff reported that a special meeting ofthe Committee of the Whole was held on Thursday morningto hear testimony relating to the Academic Prioritiesdocument.

REPORT OF THE COMMITTEE OF THE WHOLE

Regent Lebedoff, Chair of the committee, reportedthat the committee voted unanimously to recommendapproval of the following actions:

a) Approval of resolution re Support forCommitment to Focus, as follows:

WHEREAS, the people of Minnesota deservethe highest quality University at which theymay be educated and the research and servicemissions to our state performed; and

WHEREAS, it is consistent with our landgrant roots to. insist that public education beas good as that obtainable at privateinstitutions; and

WHEREAS, the economic future of the Stateof Minnesota is intrinsically and inescapablylinked to the academic quality of theUniversity of Minnesota;

WHEREAS, the set of goals known asCommitment to Focus recognized these needs andaddressed them with vision, brilliance andintegrity; and

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WHEREAS, many of the principal componentsof Commitment to Focus have already beenapproved, often unanimously and never by lessthan substantial majority vote, by the Board ofRegents after careful study, substantialtestimony and public debate; and

WHEREAS, recent events at the Universityof Minnesota, including the resignation ofPresident Kenneth Keller, the principal authorand architect of Commitment to Focus, havecaused some to question whether the Board ofRegents will remain as committed to Commitmentto Focus as during the presidency of itsauthor; and

WHEREAS, the Board of Regents wishes toallay at the outset any misunderstandings onthis matter;

THEREFORE, BE IT RESOLVED, that the Boardof Regents of the University of Minnesotareaffirms its very strong support of theprinciples of Commitment to Focus, and pledgesto continue as swiftly as possible, and withoutpause, the important work of implementing thoseprinciples on behalf of the University and thepeople of Minnesota.

b) Approval of the 1988-89 Budget Principles.Documentation is filed supplement to theminutes, No. 22,011o

c) Approval that Heidrick & Struggles, Inc. beretained as the firm to assist the Board ofRegents with the presidential search process.

d) Approval of resolution re: Presidential SearchProcess, as follows:

RESOLVED, that the Chair, the Vice Chairand the Secretary are authorized to work withPatricia Mullen, Director of Equal Opportunity& Affirmative Action, to complete the Form 16and advertising requirements.

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RESOLVED, that the Chair and Vice Chairare authorized to work with General CounselDunham to develop recommendations before theMay meeting regarding the appointment of anadvisory committee and the legal issuesrelating to open meetings and access toinformation.

The Board of Regents voted unanimously to approvethe recommendations of the Committee of the Whole.

Chair Lebedoff reported that the Committee alsoreviewed the proposed 1988-89 Budget Plan; discussed theAcademic Priorities document; reviewed the proposed 1988-89 Tuition Plan; and received a Legislative Update. Hestated that C. Eugene Allen, Acting Vice President forthe Institute of Agriculture, Forestry and Home Economicswas also introduced to the Committeeo

REPORT OF THE FINANCE & LEGISLATIVE COMMITTEE

Regent Anderson, Chair of . the committee, reportedthat the committee voted unanimously to recommendapproval of the following actions:

a) Approval of the Vice President for FinanceReport which includes Investments, AccountsReceivable, Property Accounting, andMiscellaneous - Finance & InvestmentsoDocumentation is filed supplement to theminutes, No. 22,012.

b) Approval of resolution re Use of Medical Inc.Proceeds, as follows:

RESOLVED, that approximately $1,916,000of the judgment awarded the University in thelawsuit Regents of the University of Minnesotav. Medical Incorporated be allocated asfollows:

S $1,000,000 to be used as partialfulfillment of the matching provisions inMedtronic's gift to the Minnesota Campaignfor the Center for Biomedical Engineering;

$500,000 to be used as a match for$500,000 from the Permanent UniversityFund to establish a Land Grant chair inthe Neurosciences; and

259

- the remainder (approximately $416,000) tobe partially matched by another privategift to create a $740,000 endowment forstudent fellowships in the M.D./Ph.D.Program.

The Board of Regents voted unanimously to approvethe recommendation of the Finance & LegislativeCommittee.

Chair Anderson reported that the committee alsoreviewed the administration's proposal for allocationsfrom the central reserves of the University from 1989-1991; reviewed a proposed policy for the disclosure offinancial arrangements with industry; and reviewed budgetinformation for the Office of the General Counsel and aproposed new policy relating to the hiring of outsidecounsel. Regent Anderson also reported that VicePresident Campbell presented information on a proposedchange in investment managers for the University whichwill be presented for action in May.

REPORT OF THE EDUCATIONAL PLANNING & POLICY COMMITTEE

Regent Casey, Chair of the committee, reported thatthe committee voted unanimously to recommend approval ofthe following action:

a) Approval of resolution re Establishment ofFree-Standing Minors at the Master's andDoctoral Levels in Quarternary Paleoecology,Cognitive Science, Interfacial Engineering andMicrobial Ecology, as follows:

RESOLVED, that the proposals forestablishment of free-standing minors at theMaster's and Doctoral levels in QuarternaryPaleoecology, Cognitive Science, InterfacialEngineering and Microbial Ecology, as presentedat the March 1988 meeting of the Board ofRegents be approved.

The Board of Regents voted unanimously to approvethe recommendation of the Educational Planning & PolicyCommittee.

Chair Casey, reported that the committee alsoreviewed a proposal to change the M.S. degree program inMuseology to a free-standing minor at the Master's andDoctoral levels and to change the name of the program toMuseum Studies; reviewed a proposal to discontinue the

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minor in Aerospace Studies at UMD; and a proposal toestablish a free-standing minor in Water Resources forthe M.A., M.S. and Ph.D. degrees.

In addition, he reported that the Committeediscussed the Report of the Task Force on Post-SecondaryQuality Assessment and reviewed proposed committee agendaguidelines.

REPORT OF THE FACULTY, STAFF &STUDENT AFFAIRS COMMITTEE

Regent Hilke, Chair of the committee, reported thatthe committee voted unanimously to recommend approval ofthe following actions:

a) Approval of resolution re Vice President'sMonthly Report, as follows:

RESOLVED, that on the recommendation ofthe Vice President for Academic Affairs, thepersonnel actions affecting Academic andProfessional and Administrative faculty andstaff members, as listed in the VicePresident's Monthly Report and supplement arehereby approved.

Documentation is filed supplement to theminutes, No. 22,013.

b) Approval of resolution re Administrative FringeBenefits, as follows:

RESOLVED, that on the recommendation ofthe President, the following appointmentinformation will be included in the VicePresident's Monthly Report for deans, vicepresidents, and chancellors if:

o1 The arrangements represent a personalbenefit to the individual (in contrast toprofessional support such as equipment orspace renovation); and

2. They cover a time period following thedate of initial appointment; and

3. The period extends more than six monthsfrom the date of initial appointment; or

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4. The arrangements exceed one month's salaryin total value.

The Board of Regents voted unanimously to approvethe recommendations of the Faculty, Staff & StudentAffairs Committee.

Chair Hilke reported that the committee alsocontinued a discussion on options for pay equity;reviewed recommendations of Student Fees Committees fromall campuses for assessment in the 1988-89 academic year;and reviewed a proposed amendment of the TenureRegulations.

In addition, Regent Hilke reported that recognitionwas given to outgoing Civil Service Committee members andthat a brief update was given on the Search for the VicePresident for Minority Affairs.

REPORT OF THE PHYSICAL PLANNING &OPERATIONS COMMITTEE

Regent Roe, Chair of the committee, reported thatthe committee voted unanimously to recommend approval ofthe following actions:

a) Approval of the Monthly Report of the VicePresident for Finance, which includedPurchasing, Project Status Report, andMiscellaneous - Physical Planning &Operations. Documentation is filed supplementto the minutes, No. 22,014.

b) Approval of resolution re Acquisition of Landand Construction of a Replacement Facility forthe Community University Health Care Center(CUHCC), as follows:

RESOLVED, that on the recommendation ofthe Hospital Board of Governors, theappropriate administrative officers areauthorized to execute the necessary documentsfor purchase of the property at 1521 E.Franklin Avenue, Minneapolis, for a price notto exceed $265,000.

c) Approval of resolution re SupercomputerFacility Purchase, as follows:

RESOLVED, that on the recommendation ofthe President and the Vice President for

262

Academic Affairs, the Purchase Agreement forthe Minneapolis Community Development Agency'sinterest in the Supercomputer facility ishereby cancelled.

RESOLVED FURTHER, that the appropriateAdministrative Officers are authorized toexecute the Condominium Declaration andArticles of Incorporation of the 1200Washington Avenue Condominium.

d) Approval of resolution re Spooner Hall HeatingPlant Replacement and Blakely Hall New StairTower, Morris Campus, as follows:

RESOLVED, that on the recommendation ofthe President and the Vice President forFinance and Physical Planning, the appropriateadministrative officers are authorized toproceed with the design and construction of theSpooner Hall Heating Plant Replacement Projectand the Blakely Hall New Stair Tower Project,both located on the Morris Campus.

e) Approval of resolution re Boynton HealthService, Environmental Controls Replacement andEnergy Management Installation, Twin CitiesCampus, as follows:

RESOLVED, that on the recommendation ofthe President and the Vice President forFinance and Physical Planning, the appropriateadministrative officers are authorized toproceed with the design and construction of theBoynton Health Service Environmental ControlsReplacement and Energy Management InstallationProject located on the Twin Cities Campus.

The Board of Regents voted unanimously to approvethe recommendations of the Physical Planning &Operations Committee.

Chair Roe reported that the committee also revieweda draft Committee Agenda Guidelines policy; reviewed aproposal for repairs of parking structures; reviewed aproposal for Northrop Auditorium renovation of stagelighting and lighting control equipment; reviewed aproposal for remodeling several rooms in the Departmentof Anthropology in Ford Hall; and a proposal for a make-up system replacement in heating plant building #34 onthe Twin Cities Campus. He further reported thatproposals were reviewed for the remodeling of the Avian

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Health Laboratory in the Veterinary Science Building, andthe design and construction of a project that would allowPeters Hall to be heated by utilizing stored aquiferthermal energy.

Chair Roe further reported that the committeerequested information regarding the proposed sale ofproperty at Rosemount and requested that an update onUniversity boilers be presented at a future meeting. Hestated that the agenda items relating to remodelingproposals for Millard Hall and the Audit Report onPhysical Plant Operations were delayed.

NEW BUSINESS

Regent Schertler asked if General Counsel Dunhamwould clarify by the May meeting whether or notcollective bargaining prevents representatives from theDuluth and Waseca campuses from serving on networkingcommittees at the University.

In addition, she asked if Administration wouldpresent an update on the agreement that the Universityhas with the Supercomputer Center at a future meeting aswell as similar agreements with others and the policyissues underlying them.

The meeting adjourned at 12:25 a.m.


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Documents

University of Minnesota. Board of Regents Minutes, April 7 ... · an explanation of the statements of auditing standards, an overview of the audit approach, and a detailed explanation