May 7, 2004

The Board of Regents of Washington State University met pursuant to call in Open Meeting at 9:00 a.m., on Friday, May 7, 2004 at Lighty Student Services Building, Room 405, Pullman, WA.

Present: Regent William D. Marler, President; Regents Elizabeth Cowles, Angela Cox, Peter Goldmark, Steven R. Hill, Joe King, Christopher J. Marr, Connie Niva, and V. Rafael Stone; President V. Lane Rawlins, Provost Robert C. Bates, Vice President for Business Affairs Gregory P. Royer, Vice President for Student Affairs Charlene Jaeger, Vice President for Information Systems Mary Doyle, Senior Assistant Attorney General Antoinette Ursich, Faculty Senate Chair Ron Brosemer, ASWSU President Jesse Aspuria, GPSA President Lisa Williams, Alumni Association President Lorie Dankers, Vice Chair for WSU Foundation Executive Committee Mikal Thomsen, Chancellor of WSU Vancouver Hal Dengerink, and Chancellor of WSU Tri-Cities Larry James.

1. President of the Board of Regents. William Marler welcomed everyone to the Board Meeting.

2. President of the University . President V. Lane Rawlins also welcomed everyone to the Board Meeting. He thanked the Regents who will be participating in the many commencement ceremonies in Pullman and on the Regional campuses in the coming weeks.

President Rawlins also took a moment to introduce two faculty members who received prestigious faculty awards. Susmita Bose, the winner of the Presidential Early Career Award for Scientists and Engineers, and Dr. David Rector, winner of the Beckman Award. They each spoke briefly on their research areas.

3. Minutes. It was moved and seconded that the Board of Regents approve the minutes of the March 12, 2004 Board meeting. Carried.

4. Reports from University Groups:

Faculty Senate Chair Ron Brosemer reviewed his report as submitted to the Board. He highlighted the new officers for Faculty Senate for the coming year. He introduced Charles Pezeshki, Chair, Ken Struckmeyer Chair-elect and Barry Swanson as Executive Secretary. He also highlighted a few of the changes in the Graduate Major Change Bulletin 6, 7, and 8. Lastly, he thanked the Board for the exciting year as faculty senate chair.

GPSA President Lisa Williams reviewed her report as submitted to the Board. She emphasized the cooperation with the student health advisory committee and the assistance they received from the University. The internal allocation for health care for graduate students has been greatly improved for next year. She said that GPSA appreciates the help from the University.

ASWSU President Jesse Aspuria reviewed his report as submitted to the Board. He started off by thanking his executive staff for their work. He reported that the S&A Fee Committee was able to provide funding to the majority of the organizations who requested funding to provide services and activities for students. He added that the committee will only be recommending a 2% increase to the current S&A Fee for the 2004-05 academic year. The 2% increase is the lowest recommended increase since 1989 and the first time in recent history that the S&A Fee charged to students has been increased significantly less than the tuition increase. He also reported on the proposed changes in the tuition due dates for fall semester.

Alumni Association President Lorie Dankers reviewed her report as submitted to the Board. She emphasized on the vacancies in the Alumni Association that will bring much needed visibility in the Southwest Washington and Portland areas. She also mentioned that they recently recognized the classes of 1944 and 1954. More than 250 people attended the Diamond and Golden Reunions. Lastly, she highlighted that Eric Falter is the incoming President of the WSU Alumni Association for the coming year.

The Board presented resolutions to Ron Brosemer, Chair of Faculty Senate; Lisa Williams, GPSA President; Jesse Aspuria, ASWSU President; and to Lorie Dankers, Alumni Association President commending them for their year of service to the University.

WSU Foundation Vice Chair Mikal Thomsen reviewed his report as submitted to the Board. He thanked Regent Marler for speaking at the Spring Board Meeting in Coeur d’Alene. He also thanked President Rawlins for attending the meeting and supporting the goals of the Foundation. He briefly highlighted two annual special events supporting diversity that are scheduled in August and September. The Chateau Ste. Michelle Scholarship Event and the Bon-Macy’s Future Cougars of Color Diversity Scholarship Luncheon.

5. Executive, Planning, Budget and Athletics Committee. Regent Marler reported that the committee reviewed action items. He added that the committee also reviewed and discussed the Operating Budget Request for 2005-07, S&A Fee Allocations for 2004-05, the Martin Stadium Master Plan, the Regents Distinguished Alumnus Award and they also received a report from Hal Dengerink on the WSU System.

The Board took action on the following:

Academic Year Tuition: PharmD and Masters of Nursing . It was moved and seconded that the Board of Regents set tuition for the academic year 2004-05 according to the schedule in Exhibit A . Carried.

Academic Year 2004-05 Services and Activities Fee Rate . It was moved and seconded that the Board of Regents raise the Services and Activities Fee for the academic year 2004-05 by 2%. Carried.

Budgeting for Enrollments . It was moved and seconded that the Board of Regents delegate authority to the President of the University or designee to distribute state funded enrollments among the campuses as permitted by state regulation. Carried.

President Rawlins provided presentation on the 2005-07 Capital Budget Request before Board took action.

2005-07 Capital Budget Request . It was moved and seconded that the Board of Regents approve the 2005-07 Capital Budget Request and delegate authority to the President to approve minor changes or adjustments that may need to be made before the submission is finalized for presentation to the Office of Financial Management. Carried.

2005-07 Public Baccalaureate Institutions Prioritized Capital Project List . It was moved and seconded that the Board of Regents approve the 2005-07 Public Baccalaureate Institutions Prioritized Capital Project List (Exhibit B) .

At 10:30 a.m., the Regents convened in Executive Session to evaluate the performance of a public employee. The Executive Session lasted approximately 10 minutes, and action was taken as a result of the session.

At 10:40 a.m., the Regents reconvened in Open Session .

The Board took action on the following:

Salary Increase for the President . It was moved and seconded that the Board of Regents approve a base salary of $300,000, beginning June, 10, 2004. In addition a deferred compensation package of $110,00 per year beginning the 2004-05 school year.

The Regents each took a moment to provide comments supporting their action for the salary increase for President Rawlins and several comments were made thanking Regents Goldmark and Hill for leading the Board on an extensive evaluation and accountability process.

Carried.

President Rawlins thanked the Board for the increase. He indicated that he will be donating the majority of the increase to fund Regents Scholarships for Washington State University. He indicated that he remains dedicated to keep salary increases for faculty and staff the number one priority for the next legislative session. He also said that he is grateful for the dedicated Board, for their voluntary work and time they put into serving Washington State University.

6. Report from the Director of Athletics. Athletic Director Jim Sterk provided an update on intercollegiate athletic activities. He also announced that they are searching for a new volleyball coach, as Coach Fredrick has taken a position closer to home. He indicated that the football team will be entering the season with four ABC appearances, one ESPN, and one FOX appearance. He added that the coaches and staff are getting ready for their annual golf tour, which is an opportunity to connect with Cougar Alumni and fans around that state. Fundraising in athletics has tripled over the last three years. He anticipated reaching over $5 million in annual giving this year. He added that they’re in a position to start a major fund drive for Martin Stadium Master Plan. He reported that it is an exciting time for Cougar Athletics—that they have an opportunity to increase facilities and to be nationally competitive on a regular basis, which is one of WSU Athletics benchmarks.

7. Reports from System Chancellors.

WSU Tri-Cities Chancellor Larry James reviewed his report as submitted to the Board. He mentioned that the students at WSU Tri-Cities have organized what is now becoming a tradition of the Crimson & Gray Ball. They are expecting around 250 in attendance. He also mentioned that the faculty have elected their sub-committee of the faculty senate steering committee.

WSU Vancouver Chancellor Hal Dengerink reviewed his report as submitted to the Board. He acknowledged John Fitzgerald, ASWSU Vancouver Student Body President and his staff for their excellent work this past year. He added that the Faculty/Staff Campaign is coming to a close with a seventy percent participation rate. He also mentioned that there were two students from WSU Vancouver who were recipients for the Entrepreneur Awards established by St. Louis University.

WSU System Update. Special Assistant to the President Hall Dengerink pointed out that a number of the actions the Board will be taking today relate to the continued implementation of the system. The S& Fee Allocations represent the redevelopment of the S&A Fee Committee Operations and the recognition of the independent student government group. He also mentioned that the faculty senate approved a proposal to create a School of Engineering and Computer Science at WSU Vancouver. The degree programs offered by this school will be separately accredited and designated on the transcript and that this structural change represents a significant commitment to the system implementation process.

8. Academic, Faculty, and Student Affairs Committee. Regent Marr reported that the committee reviewed and discussed the S&A Fee Allocations. They also received a progress report on the strategic plan implementation and that they hope to see the benchmarks tying them together. The committee also had an update on the development of the Office of Undergraduate Education which shows very strong ties with the types of things being done in terms of educational outcome and tying it to the implementation of the strategic plan and benchmarking. They also heard reports on the Graduate Student Health Insurance, Technology in the General University Classroom, and discussed the academic program changes.

The Board took action on the following:

Allocation of Services and Activities Fees for Summer 2004 and Academic Year 2004-05. It was moved and seconded that the Board of Regents approve the allocation of Services and Activities Fees for Summer 2004 and Academic Year 2004-05. Carried.

Allocation of Services and Activities Facilities Fees for Academic Year 2004-05 . It was moved and seconded that the Board of Regents approve the allocation of Services and Activities Facilities Fees for Academic Year 2004-05. Carried.

9. Report from the Provost and Academic Vice President. Provost Bates presented the Strategic Plan Implementation Progress Report. The report is a snapshot of the accomplishments and progress units. He added that the next step in implementation is to take the benchmarks and to build analysis at the unit level that is relevant and meaningful for the university. The college and departments will be developing benchmarks to facilitate the implementation of their strategic plans that support the University Strategic Plan. This will be done across all university units and drill down to have all connect to the implementation of the strategic plan and actively support the university goals. Some issues are difficult to benchmark and they are continuing to work with units to develop the appropriate marks and gain faculty and unit input. Also, the last University accreditation was 1999, an interim 5-year visit occurred recently. An interim report will be provided soon and the feedback from the interim visit team was very positive. President Rawlins also added that the benchmarking process will be a guide in the budget decision process.

10. Report from the Vice President for Student Affairs. Vice President Jaeger congratulated Angela Cox and Jesse Aspuria on their upcoming commencement and thanked them for efforts they made in bringing new student voices to the table that have not been heard. She also reported on the many activities Student Affairs has been involved in. She added that Admissions has finished their work in admitting the freshman class for fall and that the incoming class is very strong. She said that the summer activities have begun with the Alive Programs for new and transfer students. She also mentioned that they are preparing for the arrival of 1000 seventh graders for the Gear Up program, titled Harvest of Hope. This program is a continuation of the pipeline to raise awareness in low-income families of diverse populations in the state of the opportunities to attend college, particularly Washington State University.

11. Business Affairs and Information Technology Committee. Regent Cowles reported that the committee heard a report on the Technology in the General University Classroom. She said they also received a brief report on a future action that will come to the Board on the Electrical Engineering/Mechanical Engineering Clean Room. She added that this would be essential in furthering research in the future. The committee also received a report on the 10-year master plan on infrastructure, and saw a preview of the golf course.

The Board took action on the following:

WSU Mt. Vernon, NW Washington Research and Extension Center – Schematic Design . It was moved and seconded that the Board of Regents approve schematic design documents, grant authorization to proceed, and delegate authority to the President or his designee, the Vice President for Business Affairs, to advertise for bids and award a construction contract, provided costs are within funds available. Carried.

WSU Prosser, Multipurpose Building – Schematic Design . It was moved and seconded that the Board of Regents approve schematic design documents and grant authorization to proceed and delegate authority to the President or his designee, the Vice President for Business Affairs, to advertise for bids and award a construction contract, provided costs are within funds available. Carried.

WSU Vancouver, Campus Infrastructure 2003 – Schematic Design . It was moved and seconded that the Board of Regents approve schematic design documents, grant authorization to proceed, and delegate authority to the President or his designee, the Vice President for Business Affairs, to advertise for bids and award a construction contract, provided costs are within funds available. Carried.

Campus Dining, Bond Resolution . It was moved and seconded that the Board of Regents approve a Series Resolution and Amended and Restate Master Resolution authorizing the issuance and sale of bonds to be used for completion of the Campus Dining Master Plan project, with bonds in an amount not to exceed $16,750,000 and with a maximum true interest cost not to exceed 6.0%; and delegate authority to the President or his designee, the Vice President for Business Affairs, to sell bonds, including determining the final bond size up to $16,750,000, maturity schedule, redemption provisions, timing and method of sale of the bonds. Carried.

Cleveland Hall, Life Safety Enhancements . It was moved and seconded that the Board of Regents approve the construction contract, grant authorization to proceed, and delegate authority to the President or his designee, the Vice President for Business Affairs, to advertise for bids and award a construction contract, provided costs are within funds available. Carried.

Commons Hall, HVAC . It was moved and seconded that the Board of Regents approve the construction project, grant authorization to proceed, and delegate authority to the President or his designee, the Vice President for Business Affairs, to advertise for bids and award a construction contract, provided costs are within funds available. Carried.

Commons Hall/Morrill Hall/Murrow East, Exterior Renovation . It was moved and seconded that the Board of Regents grant authorization to proceed, delegate authority to the President or his designee, the Vice President for Business Affairs, to advertise for bids and award a construction contract, provided costs are within funds available. Carried.

WSU Vancouver, 78 th Street Research and Extension Center WSU/Clark County Interlocal Agreement . It was moved and seconded that the Board of Regents approve an interlocal agreement between WSU and Clark County relating to the 78 th Street Research Station property, and delegate to the President, or his designee the Vice President of Business Affairs, the authority to execute and administer the agreement. Carried.

WSU Puyallup, Fife Farm #3 . It was moved and seconded that the Board of Regents delegate to the President or his designee, the Vice President for Business Affairs, the authority to sell Fife Farm #3, pursuant to the terms of the $5,239,179 offer received, execute all documents necessary for the sale, and accept the proceeds on behalf of Washington State University. Carried.

12. Report from the Vice President for Information Systems. Vice President Doyle provided an update on the chancellor search for WSU Spokane.

13. University Development and University Relations Committee. Regent Hill reported that the committee had a presentation and discussion on Entrepreneurship and Innovation. He said the committee also received a gift report. He added that the Foundation has formed a new seven-member investment committee chaired by Bob Felton. They are doing a great job of both reconsidering the asset allocation of the endowment, making asset allocation changes and they are about to issue and RFP for a new consultant to help the committee through the process. He said the committee briefly covered the significant actions of the Foundation Spring Meeting. The new governance structure was approved.

14. Report from the Vice President for Development. Vice President Frisch first thanked the Regents who participated in the Foundation Spring Meeting and added that it was significant for the Trustees to approve the new governance structure as Regent Hill stated. He reviewed the new committee structure of the Foundation Board of Trustees. He also reported that Mikal Thompsen will be the new Foundation Executive Committee Chair effective in early October.

15. Election of Officers. It was moved and seconded that Regent V. Rafael Stone be elected to serve as President of the Board of Regents for the year beginning May 15, 2004, and that Regent Elizabeth Cowles be elected to serve as Vice President of the Board of Regents for the year beginning May 15, 2004, with the understanding that she shall act a President pro tempore in the absence of the President, with the power to preside at the meetings and to sign all documents required to be executed by the Board of Regents. Carried.

16. Recognition of Regent Angela Cox. Regent Marler read a resolution commending Student Regent Angela for her dedication and service to the Board during her term as the sixth student regent for the 2003-04 academic year.

17. Recognition of Regent William Marler. Regent Stone presented a gavel to Regent Marler commending him for his service as Board President for the term 2003-04.

The meeting of the Board of Regents was recessed, and the meeting of the Shareholders of the Students Book Corporation was declared open.

18. Meeting of Shareholders, Students Book Corporation, Election of Directors. It was moved and seconded that the Shareholders of the Students Book Corporation elect the following individuals to serve on the Board of Directors:

Ronald C. Mittlehammer, Faculty Director, two-year term to expire in 2006

Donald E. Stem, Jr., Faculty Director, one-year term to expire in 2005

Ashton Hammar, Undergraduate Director, one-year term to expire in 2005

Ashley Lund, Undergraduate Director, on-year term to expire in 2005

Justin Leighton, Undergraduate Director, two-year term to expire in 2006

Elene F. Davidson, Graduate Director, two-year term to expire in 2006

Denise Junell, Alternate Undergraduate Director, two-year term to expire in 2006

Holly Menino, Alternate Undergraduate Director, two-year term to expire in 2006

Matt Chastagner, Alternate Graduate Director, two-year term to expire in 2006

Sabine Teske, Alternate Graduate Director, two-year term to expire in 2006

Carried.

The meeting of the Shareholders of the Students Book Corporation was declared closed and the meeting of the Board of Regents was reconvened.

19. President’s Report. President Rawlins recognized the wonderful people who are leaving the institution. He thanked Angela and Jesse for their outstanding commitment and he thanked Bill Marler for his dedication as Board President. President Rawlins commented on the fine staff that works for Washington State University. He expressed his gratitude towards the student leadership, Faculty Senate, the Alumni Association, and the Foundation Board of Trustees.

At 11:45 a.m. the Regents Meeting adjourned.

Approved by the Board of Regents at its meeting held in the Vashon

Room of the Westin Hotel, Seattle, Washington, September 10, 2004.

ORIGINAL SIGNED COPY AVAILABLE IN THE PRESIDENT’S OFFICE