January 14, 2000

The Board of Regents of Washington State University met pursuant to call in Open Meeting at 9:00 a.m. on Friday, January 14, 2000, in the Lewis Alumni Centre, Pullman.

Present: Peter J. Goldmark, President; Regents: Kenneth Alhadeff, Richard R. Albrecht, Bernadett Buchanan, Robert D. Fukai, Joe King, William Marler and Carmen Otero; President Samuel H. Smith, Provost Gretchen Bataille, Vice President for Business Affairs Gregory Royer, Vice President for Extended University Affairs Thomas L. Purce, Vice President for Administration Sally P. Savage, Faculty Senate Chair Peter Burke, Alumni Association President Shari Freidenrich, GPSA President Stephen Kuehn, and ASWSU President Steve Wymer.

Also present were: Budget Director Karl Boehmke, Director of Statewide Affairs Larry Ganders, Dean of the Graduate School Karen DePauw, Assistant Vice President of University Relations Barbara Petura, Associate Vice President for Administration and Human Resource Development Ernestine Madison, Vice Provost for Research George Hedge, Assistant Dean of Sciences Ken Spitzer, Director of Institutional Research Jim Rimpau, and Director of Facilities Development Jerry Schlatter.

1. Opening and Introductions. Regent Peter Goldmark opened the meeting and provided welcoming remarks. President Smith introduced the following individuals: Rom Markin, Interim Provost and Academic Vice President, and Glenn Ford, Assistant Vice President for Business Affairs.

2. Minutes. It was moved and seconded that the Board of Regents approve the minutes of the meeting of November 19, 1999. Carried.

3. Reports from University Groups. The reports from the University Groups are attached as Exhibit A.

Faculty Senate Chair Peter Burke reviewed his report as submitted to the Board. He also expressed disappointment that there would be no action taken at the meeting on faculty titles.

GPSA President Steve Kuehn reviewed his report as submitted to the Board.

ASWSU President Steve Wymer reviewed his report as submitted to the Board. He also pointed out that this month’s report included a report from the ASWSU Extended Degree Program. Mr. Wymer also added that student elections are underway, that they will have electronic voting for the first time, and that WSU has the second highest voting turnout in the Pacific-10 Conference.

Alumni Association President Shari Freidenrich reviewed her report as submitted to the Board.

4. Update on the Presidential Search. Regent Peter Goldmark provided an update on the progress of the search for a new President. He reminded the Regents that the search had been ongoing since July and said he was pleased to report that it had been going very well. He announced that the Search Committee had completed its work and had delivered a short list to the Board for its consideration. He said the Board is in the process of reviewing the list at this time and that it includes sitting presidents and provosts. In particular, Regent Goldmark noted that the quality of the pool, which has been delivered by the Committee, was outstanding and that the manner in which the Committee had discharged its duties was quite admirable. He also said that he and the other members of the Board who sat on the Search Committee were particularly pleased with this aspect of the search. He said the Board is currently considering the finalists and will keep the public apprised as the search progresses.

5. Planning Committee Report. Regent Ken Alhadeff reported that the Planning Committee had developed a “template of core issues” for the new president. He said this would assist the new president in identifying issues that need to be structured on fast-track planning process. The following seven issues were identified: 1) Refinement of the WSU System; 2) Academic Quality Enhancement; 3) Commitment to Diversity; 4) Enrollment Planning and Coordination; 5) Technology; 6) Private Fundraising; and 7) Legislative Initiatives.

6. Academic Affairs Committee Report. Regent Joe King reported that the Committee had discussed the Intellectual Property Policy, which was recently revised, and the proposal to enact a permanent mandatory athletic fee. He said that they had vigorous discussions about the athletic fee and said that the students have been asked to get more information. He stated that they would like to give more thought to this before considering it further.

7. Provost’s Report. Provost Gretchen Bataille reported on the following:

· Enrollment Issues. Provost Bataille indicated that applications for enrollment have increased in numbers over those from last year at this same time. She stated that there are a number of reasons why this could by happening. She said that, for example, students are able to apply earlier and with more institutions through web-based application processes, which is an easier way for them to apply. Provost Bataille expressed appreciation to Jim Rimpau, Director of Institutional Research, who has been very creative in finding ways to enhance and increase enrollments. She also stated that Interim Provost Rom Markin had been working with the deans to identify additional scholarship funds and that approximately $633,000 in funding has been identified as scholarship awards to be dedicated to enrolling top quality students.

· College of Veterinary Medicine Dean Search. Provost Bataille announced that the top candidate identified for the dean’s position had withdrawn from consideration due to his wife’s illness. He stated that Dr. Warwick Bayly has been appointed as Interim Dean and that the search for a permanent dean would begin again.

· Inland Northwest Research Alliance (INRA). Provost Bataille stated that INRA has been moving through its organizational process. She said that she had served on the committee to identify the finalists for the Executive Director’s position and that three candidates will be interviewed at the end of January. She said that in the Dr. Jim Petersen from WSU’s College of Engineering and Architecture would be serving as the interim director, that we are pleased to have the lead position filled by an individual from WSU, that Vice Provost George Hedge and Assistant to the President Beverly Lingle have been involved from the beginning, and that they will provide continuity to the organization.

· Spokane Intercollegiate Research and Technology Institute (SIRTI). Provost Bataille reported that the Governor’s budget links WSU funding in with Spokane and SIRTI funding, that several meetings between the leadership of both entities have occurred, and that a workable partnership with SIRTI leadership has been established. She said the combination of WSU research capabilities and SIRTI’s mission for technology transfer and commercialization will serve Spokane well.

Provost Bataille thanked the Regents for the opportunity to work with them for the past three years and stated that Interim Provost Rom Marking will provide a smooth transition over the next few months. Regent Goldmark thanked Provost Bataille for her contributions to the University and stated that she had made a difference by being at the University and that the Board was appreciative of her efforts.

8. Intellectual Property Policy. Provost Gretchen Bataille thanks Assistant Attorney General Lisa Allred for her work on the comparison of the old and new versions Intellectual Property Policy and thanked the Faculty Senate committees for their work on this policy, as well. Regent Peter Goldmark also added supporting comments for the Intellectual Property Policy, including its importance for the institution.

It was moved and seconded that the WSU Board of Regents approve the Intellectual Property Policy as submitted to the Board of Regents. Carried.

9. Finance, Audit, and Capital Committee Report. Regent Peter Goldmark provided a report of the meeting of the Finance, Audit, and Capital Committee meeting, which took place the day before. He stated that the Committee had a substantial agenda to cover, had considered a variety of issues, including the status of Capital Projects, current Real Estate transactions, and other important items. He said, however, that he wanted to report specifically on the issue of enrollment at WSU, principally that of the WSU Pullman campus.

Provost Goldmark indicated that the enrollment issue has been a significant challenge, that WSU is under-enrolled, and that this has created problems for the campus climate and the budget. He said that although the lower “fte” numbers have not been huge, they had created a shortfall of $2.9 million, resulting not just in a budgetary shortfall, but also a shortfall in terms of the mix of students at WSU. He said a portion of this could be covered by what WSU has in its reserves, but that it is not enough. He said, therefore, reallocations and reductions would be necessary because of this shortfall.

Regent Goldmark stressed that the Board is very concerned about the enrollment situation, that this is the “lifeblood” of the University, and that increasing enrollment has long been a goal of the Board and the institution. He announced that he had appointed a special committee of the Board of Regents to head a taskforce on this issue. He said the Regents who would participate on this taskforce would be Bernadett Buchanan, Robert Fukai, and Kenneth Alhadeff, who would chair the taskforce. Regent Goldmark asked Regent Alhadeff to make some remarks to set the tone for the Board and to convey its approach to this problem.

Regent Alhadeff said that the Regents have a great deal of respect for the work that had been accomplished in the past. He said, however, that the institution must be more aggressive in dealing with this issue. He said that within the next two weeks, all the major players who have been involved in this effort would be brought together, under the leadership of Interim Provost Markin, in a roundtable format to discuss the issues that have been hindering success in this area. He stated that WSU is a wonderful place and that everyone in the state and beyond needs understand how great it is. He said that in addition to listening to the problems that have been experienced, they will discuss and set into motion actions that need to be implement. He said that the Regents would ask Vice President Royer to find the funding to immediately assist with whatever is needed to make this happen. He said there are hundreds of qualified and exciting individuals with a lot of energy who can give us their advice and counsel so that we can “put out the story of Washington State University.” He said a significant effort is about to be undertaken, that part of the success will lie in that effort, and that this will happen now.

Regent Goldmark concluded the FAC report by stating again, that although this did not compose the entire substance of the FAC meeting, it was definitely the most important item that had been discussed.

10. Report by the Vice President for Business Affairs. Vice President for Business Affairs Greg Royer reported that Kimbrough and Thompson Hall projects were complete and that move-in is occurring now. He invited the Regents to take a tour of both projects. He stated that these were completed on time and under budget. With regard to the Student Recreation Center, he mentioned that it was going quite well, that it is “on schedule” and will open eleven months from today.

Mr. Royer said that the Health Sciences project is also under budget and on schedule and that bids would be opening for subcontract. He stated that the Teaching and Learning Center’s parking structure is going up and is on schedule. He thanked Director of Facilities Development Jerry Schlatter for his hard work and for making a significant difference in the success of this project.

11. General Contractor/Construction Manager (GC/CM) Contracts Under Previous Delegation of Authority. Vice President for Business Affairs Greg Royer reported that based upon the authority delegated to the President or his designee, the Vice President for Business Affairs, by the Board of Regents at the meeting of September 4, 1998, he has approved the negotiated Maximum Allowable Construction Cost (MACC), and had entered into a GC/CM contract with Shea Construction, Inc., Spokane, WA, for the Health Sciences Building, Riverpoint Higher Education Park, Spokane, in the amount of $26,492,958.

12. Contracts under Previous Delegation of Authority (under $500,000). Vice President for Business Affairs Greg Royer reported that based upon the authority delegated to the President or his designee, the Vice President for Business Affairs, at the meeting of January 24, 1986, he had entered into the following contracts:

R.R.A.CO., Inc., Spokane, WA, for the Smith Hall Partition Room 112 and Cover Projects Storage Area, for a total cost of $399,218, to be paid from 97-99 and 99-01 MCI funds.

PBI Construction, Inc., Spokane, WA, for the Veterinary Teaching Hospital West Entrance Stairway, for a total cost of $37,674, to be paid from 99-01 MCS funds.

13. Completion of Contracts (over $2,500). Vice President for Business Affairs Greg Royer reported that on the authority delegated at the meeting of June 24, 1994, he had approved satisfactory completion of the following contracts:

Talisman Construction Services, Inc., for the repair of the Fulmer Chemistry Synthesis Exterior Brick in the final amount of $108,576.

Tec Construction, Inc., for air-conditioned labs and four sub-divided rooms in Dana Hall in the final amount of $81,133.

14. Housing and Dining Systems Rates for Academic Year 2000-2001. Vice President for Business Affairs Greg Royer reported that the Housing and Dining Rate Setting Committee reviewed the operational expenses of the Housing and Dining System and the financial needs and obligations of the system for the academic year 2000-01. He said after the review, the committee recommended the following rate increases for next year:

Residence Halls – 5%

Residence Dining Account – 4%

University Family Apartments – 3.5%

University Single Student Apartments – 4.5%

15. Revision to the WSU Regents/Foundation Investment Committee Bylaws. It was moved and seconded that the Board of Regents approve revisions to the WSU Regents/Foundation Investment Committee bylaws per the resolution from the WSU Foundation attached as Exhibit B. Carried.

16. Tuition Waiver Policy Amendment. Vice President for Business Affairs Greg Royer called upon Director of Institutional Research Jim Rimpau to discuss the Tuition Waiver Policy Amendment. Dr. Rimpau stated that waivers could strategically improve student numbers and quality, as well as increase revenue. He said WSU’s revenue programs targeted non-residents with 3.8 gpas and above and that this has been working thus far. He said it would also increase WSU’s ability to recruit in the “in-state market.” He also noted that this would be a change from limiting the granting of waivers based upon 21 percent of the institution’s gross revenue. He stated the policy would focus on the issues of increasing student quality, increasing student numbers, and increasing total tuition revenue.

It was moved and seconded that the Board of Regents amend its policy and remove the 21 percent cap on the granting of tuition waivers. Carried.

17. Report by the Vice President for Extended University Affairs. Vice President for Extended University Affairs Les Purce followed up on the initiative that began four months ago with the community colleges in the southwest Washington area. He said this is a partnership with College of Education, WSU Vancouver, and Extended University Affairs to develop a “ two plus two” program in elementary education designed to meet demands of elementary education teachers in underserved areas in the state of Washington. He stated that WSU had signed a memorandum with the Department of Education. He said this would benefit the institution by addressing need for K-12 teachers and would strengthen the relationship with community colleges. Dr. Purce thanked Deans Judy Mitchell and Hal Dengerink for their cooperation in working on this important initiative.

Dr. Purce also reported on the upcoming second annual meeting of alumni in the Extended Degree Program. He noted that these alumni come from all areas of the country, he will participate in with them, provide feedback about what works and what does not, and that they will continue to be strong advocates for WSU around the country.

18. Executive Session. At 10:15 a.m., the Regents met in Executive Session for one hour and thirty minutes to discuss potential litigation with legal counsel and to evaluate the qualifications of applicants for public employment. At 11:45 a.m., the Regents reconvened in open session and took no action as a result of the Executive Session. The Regents’ meeting then adjourned.