January 2017 Minutes

STATE BOARD OF REGENTS
UNIVERSITY OF UTAH, SALT LAKE CITY, UTAH
S.J. QUINNEY COLLEGE OF LAW
FRIDAY, JANUARY 20, 2017
COMMITTEE OF THE WHOLE

Minutes

Regents Present
Daniel W. Campbell, Chair
France A. Davis, Vice Chair
Nina R. Barnes
Jesselie B. Anderson
Laura L. Belnap
Marlin K. Jensen
Steve Lund
Steve Moore
Robert W. Prince
Harris H. Simmons
Mark R. Stoddard
Teresa L. Theurer
John H. Zenger
Joyce P. Valdez

Regents Absent
Ty Aller
Wilford W. Clyde
Patricia Jones
Spencer F. Stokes
Robert S. Marquardt

Office of the Commissioner
David L. Buhler, Commissioner of Higher Education
Kimberly L. Henrie, Associate Commissioner for Planning, Finance and Facilities
Elizabeth Hitch, Associate Commissioner for Academic Affairs

Institutional Presidents Present
David W. Pershing, University of Utah
Stan L. Albrecht, Utah State University
Scott L Wyatt, Southern Utah University
Gary L. Carlston, Snow College
Matthew S. Holland, Utah Valley University
Richard B. Williams, Dixie State University
Deneece G. Huftalin, Salt Lake Community College
Madonne Miner for Charles Wight, Weber State University

Other Commissioner’s Office and institutional personnel were also present. The signed role is on file in the Commissioner’s Office.

Vice Chair Davis called the meeting to order at 1:00 p.m.  Vice Chair Davis welcomed the Board, others in attendance, and the press and then turned the time to President Pershing for the State of the University.

State of the University

President Pershing started by giving the Regents a tour of the campus via video. President Pershing said the University continues to grow; the average ACT score is over 25 and students must have a 3.6 GPA to be accepted to the University. They now have over 100 undergraduate degrees.  One of the key goals is  making sure the students at the U are successful, and says involving students is crucial.  1st and 2nd year retention is at 90%.  The U is one of the most community engaged schools in the nation.  The Entertainment, Arts and Engineering program is one of the hottest programs at the school right now, and ranks number one in the nation.  He shared a compilation of video games students at the U have created; he also shared a video featuring students at the Lassonde Entrepreneur Institute.  President Pershing touched briefly on online classes and predicts it will continue to grow. He also talked about the campus in Korea and shared pictures of the campus and students.  The U will soon be offering four new programs in Korea. The graduation rate improved from 55% to 65% in the last five years, with 8,200 graduates last year.  He also noted the medical school is ranked first in the nation for quality. This year the U is requesting funding to replace the old hospital built in the 1950’s.  In its place will be three buildings; Ambulatory Care Building, Rehabilitation Hospital, and the Medical Education and Discovery Building.

Vice Chair Davis introduced new Regent Laura L. Belnap.

A State of Opportunity: 2017 Progress Report, the Board of Regents Strategic Plan 2025 (TAB BB)

Commissioner Buhler shared a national study on where the jobs are and noted Utah reflects the same trend.  As a reminder, Commissioner Buhler noted the three priorities of the strategic plan are: affordable participation, timely completion, and innovative discovery:

Affordable Participation – looking at students who begin college within five years of high school graduation, in 2015 it was 66% and last year it moved up to 69%.

Timely Completion – increase the percentage of students who persist and graduate with a degree in higher education. The goal is 28%, in 2015 we were at 25% and in 2016 we hit 26%.

Innovative Discovery – access involvement in high learning practices. We still need to establish benchmarks and system wide goals.

Also included in the strategic plan is an investment section.  We need to have an average of 5% increase in total funding; in 2015 we had 4.6%.

Regent Lund motioned to approve as outlined in TAB BB; the motion was seconded by Regent Barnes and the motion carried.

Legislative Priorities (TAB CC)

Commissioner Buhler reviewed briefly our goal for the legislative session.  Compensation would be a 75%/25% split, with the state funding 75% of compensation and our match would be 25%.  Our budget is structured based on this match.  The priories this year are: 1) compensation for employees, 2) student growth and market demand, 3) performance funding, and 4) Regents’ Scholarship.  The compensation request is based on a 3% increase on average, based on performance, and a 7% increase for health and dental benefits. Student growth and market demand is about 4 million.

Commissioner Buhler noted there are over 100 legislative bills. The office will be closely tracking and monitoring each, and will keep the Regents updated.

Regent Theurer motioned to approved as outlined in TAB CC; the motion was seconded by Regent Barnes and the motion carried.

General Consent Calendar (TAB AA)

On a motion by Regent Anderson, and seconded by Regent Barnes, the following items were approved on the Regents’ General Consent Calendar:

  1. Minutes – Minutes of the Board meeting November 18, 2016, Utah Valley University, Orem, Utah
  2. Grant Proposals
  3. Awards
  4. Academic Items Received and Approved

Reports of Board Committees

Academic and Student Affairs Committee

University of Utah – Bachelor of Science in Quantitative Analysis of Markets and Organizations with Emphases in: Business Economics & Analytics, and Finance (TAB A)

University of Utah – Master of Science in Construction Engineering (online) (TAB B)

University of Utah – Master of Software Development (TAB C) Regent Prince motioned to approve TAB A, TAB B and TAB C as outlined; the motion was seconded by Regent Simmons and the motion carried.

Weber State University – Bachelor of Science in Public Health (TAB D) Regent Prince motioned to approve as outlined in TAB D; the motion was seconded by Regent Valdez and the motion carried.

Snow College – Associate of Fine Arts in Visual Studies (TAB E) Regent Prince motioned to approve as outlined in TAB E; the motion was seconded by Regent Stoddard and the motion carried.

Adoption of Regent Policy R262, Student Safety (TAB F) Regent Prince noted Geoff Landward gave an excellent explanation of this policy and it was unanimously approved by the committee. Regent Prince motioned to approve as outlined in TAB F; the motion was seconded by Regent Theurer and the motion carried.

University of Utah Completion Report (TAB G) Regent Prince noted this was an excellent presentation.  This is information only; no action was taken.

Statewide Completion Report (TAB H) Regence Prince noted this information only; no action was taken.

Outreach & Access Update (TAB I) Regent Prince asked Vice Chair Davis to make comments.  Vice Chair Davis highlighted the program “Expect the Great” and noted all institutional Presidents supported this event.  This is information only; no action was taken.

USHE Annual Career and Technical Education Report (TAB J) Regent Prince noted this is information only; no action was taken.

Engineering and Computer Technology Initiative Annual Report (TAB K) Regent Prince noted this is information only; no action was taken.

Finance and Facilities

USHE – Fiscal Health Dashboard Presentation & Discussion (TAB L) Regent Simmons noted this item was a discussion item only; no action was taken.

USHE – Discussion of Tuition & Fees (TAB M) Regent Simmons noted this discussion was in preparation for tuition and fee rates and increases. This is a discussion item only; no action was taken.

University of Utah – Property Disposal (TAB N) Regent Simmons noted this request is to sell the property for 8.1 million. Regent Barnes moved to approve as outlined in TAB N; the motion was seconded by Regent Lund and the motion carried.

University of Utah – Property Acquisition (TAB O) Regent Simmons noted this building will be used for continuing education programs.  It will be purchased for 6.4 million, which is the appraised value and another 3 million will be spent for renovation.  Regent Simmons moved to approve as outlined in TAB O; the motion was seconded by Regent Zenger and the motion carried.

University of Utah – Series 2017 Refunding Bond Issue (TAB P) Regent Simmons noted this will give the University approval to refund up to 220 million of previously issued revenue bonds as opportunities come along to refund at favorable rates. Regent Lund moved to approve as outlined in TAB P; the motion was seconded by Regent Zenger and the motion carried.

Utah State University – Property Acquisition (TAB Q) Regent Simmons noted this is to purchase 43.2 acres in Dayton, Idaho. USU has been conducting tree research on this land and over time, some of these trees will be moved closer to campus.  Ultimately this property will be disposed of, but in the meantime it is important to maintain for research work.  The purchase price is $300,000 and will include 42 shares of water. Regent Simmons moved to approve as outlined in TAB Q; the motion was seconded by Regent Barnes and the motion carried.

USHE – Capital Facilities Policies; Repeal R701, R710, R720, and Adopt R701, R702, R703, R704, R705, R706 (TAB R) Regent Simmons noted this is breaking some old policies into component pieces. These changes clarify some of the procedure requirements regarding how capital facilities are handled and should reduce the number of capital requests that come to the Finance and Facilities Committee. Capital Facility request less than $500,000 will be handled through the institutions’ Board of Trustees and simplifies the approval process.  Regent Simmons moved to approve as outlined in TAB R; the motion was seconded by Regent Barnes and the motion carried.

USHE – Revision of Policy R571, Delegation of Purchasing Authority (TAB S) Regent Simmons noted this modifies the policy to incorporate changes from the state’s procurement code and align the policy with statute. Regent Simmons moved to approve as outlined in TAB S; the motion was seconded by Regent Zenger and the motion carried.

UHEAA – Amendment to Authorizing Resolution: Student Loan Backed Notes (TAB T) Regent Simmons noted this is a request by UHEAA to extend the authorization period for refinancing 1.8 billion in student loan backed revenue notes.  The current authorization is set to expire at the end of March and this request would extend the expiration date to September 27, 2017.  Regent Simmons moved to approve as outlined in TAB T; the motion was seconded by Regent Stoddard and the motion carried.

University of Utah – Series 2016B General Revenue and Refunding Bond Results (TAB U) Regent Simmons noted the University closed on a bond that would result in savings on November 29, 2016.  The proceeds will be largely used to finance the David Eccles School of Business Executive Education Building, and the Ambulatory Care Complex. This is information only; no action was taken.

Dixie State University – Property Sale Follow-up (TAB V) Regent Simmons noted about two years ago the board approved the sale of approximately .42 acres on Tabernacle Street in St. George, Utah in conjunction with 2.29 acres owned by Dixie College foundation for construction of privately owned student housing.  The original developer was unable to complete the transaction but DSU found another developer to purchase the land and build new student housing. This is information only; no action was taken.

USHE – Annual Report on Institutional and Revenue Bonded Indebtedness (TAB W) Regent Simmons noted this is a report of total debt outstanding by the USHE.  We have $1,056,480 of outstanding debt as of June 30, 2016, which is down from an original issue amount of $1,534,860. Of note, SLCC paid its last payment in June and has no outstanding debt. All bonds are being retired on schedule. This is information only; no action was taken.

USHE – 2017 Data Book Update (TAB X) Regent Simmons noted this is a comprehensive set of data tables, covering a wide range of topics and is now available on the website.  This is information only; no action was taken.

USHE – Update on Institutional Audit Reports to the Regents’ Audit Committee (TAB Y) Regent Simmons noted the Audit Committee met with the institution Trustees and audit staff on January 10, 2017 to review audit procedures and activities as required by policy.  This is information only; no action was taken.

USHE – Annual Auxiliary Funds Report (TAB Z) Regent Simmons noted all auxiliary fund balances appear healthy.  This is information only; no action was taken.

It was moved by Regent Stoddard and seconded by Regent Theurer to meet in Executive Session for the sole purpose of discussing the character, professional competence, or physical or mental health of individuals, and ongoing investigations.  

The Committee of the Whole adjourned at 2:20 p.m.  The executive session adjourned at 3:25 p.m.

Date Approved:  March 22, 2017