September 4, 1998

The Board of Regents of Washington State University met pursuant to call in Open Meeting at 1:35 p.m. on Friday, September 4, 1998, in the Lewis Alumni Centre, Pullman.

Present: Carmen Otero, President; Regents: Phyllis J. Campell, Robert D. Fukai, Peter J. Goldmark, Joe King, William D. Marler, and Janelle Milodragovich; President Samuel H. Smith, Provost Gretchen Bataille, Vice President for Business Affairs, Samuel J. Kindred, Vice President for Extended University Affairs Thomas L. Purce, Vice President for University Advancement Connie Kravas, University Counsel Sally P. Savage, Senior Assistant Attorney General Toni Ursich, Faculty Senate Chair Robert Greenberg Alumni Association President Craig Gable, GPSA President Abraham Kannankeril, and ASWSU President Edward Prince.

Also present were: Executive Director of Budget and Planning Gregory P. Royer, Vice Provost for Human Relations and Resources Ernestine Madison, Assistant Vice President for Business Affairs Ernest J. Renfro, Associate Director of News and Information Services Al Ruddy, Interim Dean of the Graduate School Karen DePauw, Interim Director of Facilities Development, Executive Secretary of the Faculty Senate Tom Brigham.

1. Opening Remarks and Introductions. President Samuel H. Smith welcomed everyone to the meeting and introduced the following individuals: Sam Kindred, new Vice President for Business Affairs; Doug Baker, new Vice Provost for Academic Affairs; Anjan Bose, Interim Dean for the College of Engineering and Architecture; Dennis Clifton, Interim Dean for the College of Pharmacy; Terry McElwain, Interim Dean for the College of Veterinary Medicine; and Michael Tate, Associate Dean/Associate Director of Cooperative Extension.

2. Planning Committee Report. Regent Peter Goldmark provided the Planning Committee Report. He stated that discussion centered on changes prompted by changes occurring in WSU system on astatewide basis. He said this will lead to eventual changes in the administrative structure to position the institution to serve its obligations throughout the state and the changing aspects of higher education. Regent Goldmark indicated that WSU desires to maintain its unique characteristics of the institution and service the needs of the state and that a work plan has been adopted.

3. Minutes. It was moved and seconded that the Board of Regents approve the minutes of the meetings of June 26, 1998, and July 22, 1998. Carried.

4. Reports from University Groups. The reports from the University Groups are attached as Exhibit A. In addition to the reports provided, Faculty Senate Chair Robert Greenberg reported that the Faculty Manual will be soon be presented again to the Faculty Senate for review. He also noted that the Faculty Senate would be reviewing several degree programs that would be coming up this fall. Alumni Association President Craig Gable also provided additional remarks. He stated that the Victory Bell has been installed and that he assumes we will be ringing it many times during the upcoming football season. He noted that the students from the Student Alumni Connection will have the responsibility for ringing the bell.

5. Provost’s Report. Provost Gretchen Bataille provided some statistical information regarding enrollment and stated that the freshman class numbers have risen significantly, that the class is 52 percent female, the gpa is 3.4, and that there is a 20 percent increase in the Honors College with an average gpa of 3.8. Provost Bataille stated that a year ago they had set out with an enrollment management strategy and that it has been very successful. She said the class is both smarter and more diverse. In addition to the enrollment management strategy, the academic enrichment program began to meet its strategic goals. She noted that eleven hires were made through that program, including four African Americans, one Chicano, one Native American, two Asian, two white females, and one mail National Academic of Science member.

In addition to the above, Provost Bataille reported on two new developments: the Council on Undergraduate Excellence and in terms of enrollment management, we will name a Vice Provost for Enrollment Management that will report to the Provost’s Office. Provost Bataille provided information about the Council on Undergraduate Excellence. She stated that this council will focus on both the academic and extracurricular experiences of undergraduate students at WSU to ensure the full development of the potential of each student. She said the council will include faculty and staff representatives from Student Affairs, Multicultural Student Services, and Academic Affairs, as well as students.

Provost Bataille also reported on several national rankings in which WSU was named. She stated that the library was ranked 85th nationally, among 3,500 libraries. Also noted was that WSU is ranked 29th in the country for quality and value by Kiplinger’s Personal Finance Magazine, and WSU is among the top half of the country’s finest universities reported by U.S. News & World Report in “America’s Best Colleges,” issued in 1998.

6. Academic Affairs Committee Report. Regent Carmen Otero said the Academic Affairs Committee discussed Spokane issues and enrollment. She said also they discussed the agenda for the upcoming year and stated that the Committee has designated “Academic Excellence” as the theme to bring together the initiatives and plans for the current year. She said this will include the environment, both in- and out-of-class, as well as the infrastructure that supports quality. She said that the Committee also discussed issues related to public perception of the University.

6. Establishment of a Master of Arts in Interior Design, and Master of Science in Architecture to WSU Spokane. It was moved and seconded that the Board of Regents approve the recommendation to establish a Master of Arts in Interior Design, and Master of Science in Architecture to WSU Spokane. Carried.

7. Establishment of a Master of Technology Management Degree, WSU Pullman, Spokane, Tri-Cities, and Vancouver; Boeing Plants in Seattle and Everett. It was moved and seconded that the Board of Regents approve the recommendation to establish a Master of Technology Management Degree to WSU Pullman, Spokane, Tri-Cities, and Vancouver; Boeing Plants in Seattle and Everett. Carried.

Regent Phyllis Campbell stated that she thought the Boeing concept was great and wondered how that had come about, and Provost Bataille stated that this is really an expansion of the partnership we have with Boeing already. Provost Campbell asked how the students will receive their instruction, and Vice President for Extended University Affairs Les Purce responded that this will be provided mostly through the WHETS system.

8. Establishment of a Bachelor of Arts in Public Affairs at WSU Vancouver. It was moved and seconded that the Board of Regents approve the recommendation to establish a Bachelor of Arts in Public Affairs at WSU Vancouver. Carried.

9. Establishment of Master of Science in Landscape Architecture, WSU Pullman, WSU Spokane and the University of Idaho. It was moved and seconded that the Board of Regents approve the recommendation to establish a Master of Science in Landscape Architecture to WSU Pullman, WSU Spokane and the University of Idaho. Carried.

10. Establishment of a Distance Education Bachelor of Arts in Business Administration. It was moved and seconded that the Board of Regents approve the recommendation to establish a Distance Education Bachelor of Arts in Business Administration. Carried.

11. Spokane Presentation. Provost Gretchen Bataille provided details about the preliminary plan for higher education in Spokane. She stated that she had provide a similar presentation to the Higher Education Coordinating Board on September 1, 1998, and that both Regents Davis and Fukai were present. Provost Bataille indicated that the preliminary plan is a culmination of the process that began when Governor Lock signed legislation making WSU the administrative and fiscal agent for the Riverpoint Higher Education Park, which included a directive to WSU to write a new mission statement and operational plan for WSU Spokane.

Provost Bataille reviewed the goals that guided the planning efforts. They are: planning must maximize the state investment in higher education; planning must result in the highest quality education for students, planning must respond to the business needs of the Spokane area; planning must take into consideration the quality, completeness, and affordability of education; and planning must give evidence of cooperation among all higher education institutions with a stake in the Spokane area, capitalizing on the strengths that each institution brings to higher education in the area. Provost Bataille emphasized importance of the last goal on the list and stated that the draft plan submitted to the HEC board reflects the spirit of cooperation.

Provost Bataille stated that the initiatives put forward in the draft plan are consistent with WSU’s mission as expressed in the University’s strategic plan. Provost Bataille reviewed the initiative’s guiding principles, as follows: selective excellence, expanded access with quality, increased diversity, enhanced graduate education and research, and enriched learning. Provost Bataille also indicated that, in order to serve the academic and economic interests of Spokane, WSU has crafted an academic plan with two primary foci-partnerships and new academic programs. She reviewed the many forms partnerships can take, as well as discussed the variety of forms the new programs could take. For example, discussions that have occurred have led to a cooperative agreement among WSU, Gonzaga University, and the University of Idaho to offer three new bachelor’s degrees in Engineering, which will be delivered in Spokane at WSU, at Gonzaga University, and at the University of Idaho Research Park in Post Falls. She stated that each university will contribute to the courses necessary for the degrees, resulting in what would be the first consortium engineering degree in the national seeking ABET accroditation.

Provost Bataille closed her presentation by staying that WSU is excited about the draft plan for education in Spokane and that the work will begin to prepare the final plan due on October 15. She said this is a plan that will capitalizae on the strengths of our educational partners in Spokane and that we feel we have met the charge given to WSU last April by the governor and the legislature. Provost Bataille introduced Vice President for Business Affairs Sam Kindred to discuss the capital development plans for the Riverpoint campus.

Vice President for Business Affairs Sam Kindred discussed WSU’s plans for capital construction at the Riverpoint site. He stated that we own approximately 48 acres and showed the site using easel boards, including the physical location of the Riverpoint Campus. Vice President Kindred provided details about the Regional Archives and the Health Sciences Buildings. He stated that this building is a state archives building, it will be constructed by the Secretary of State, and it will contain 48,000 square footage. He said WSU will occupy the second floor of the building, that it will cost approximately $11.3 million, and that WSU portion is roughly $2 million.

Vice President Kindred stated that the total cost of the Health Sciences Building will be $39 million, that the architectural firm of Integrus Architecture, Spokane, has been selected and has developed the schematic designs under contract to the State of Washington, Department of General Administration, and is proceeding with design development work. He said it will be completed the Fall of 2001 and is scheduled to be occupied in the Spring of 2002. Vice President Kindred said the building will accommodate the Spokane programs of WSU and EWU, including University Programs in Communication Disorders (UPDCD), Dental Hygiene, Physical Therapy, Food Science and Human Nutrition (FSHN), Pharmacy, Health Research and Education (HREC), Health Policy Administration (MHPA), Area Health Education (AHEC), and Washington Institute for Mental Illness Research and Training (WIMIRT), among other functions.

Vice President Kindred stated that the action requested at this meeting relative to the Health Sciences Building is to delegation authority to utilize the General Contractor/Construction Management (GC/CM) process, to selecte a GC/CM, and to award a construction contract. In response to a question about the GC/CM process, Vice President Kindred explained the difference between utilizing this process vs. the process we have used to construct buildings in the past.

12. Health Sciences Building, Riverpoint Higher Education Park, Spokane. It was moved and seconded that the Board of Regents delegate authority to the Preisdent or his designee, the Vice Preisdent for Business Affairs, to utilize the General Contractor/Construction Manager (GC/CM) process pursuant to RCW 39.10.030 slected a GC/CM for the Health Sciences Building, Riverpoint Hihger Education Park, Spokane, WA, and award construction contracts provided a maximum allowable construction cost can be established within available funds. Carried.

13. Consultant Firm Selection for the Creamery Warehouse. It was moved and seconded that the Board of Regents delegate authority to the President or his designee, the Vice President for Business Affairs, to approve the selection of a consulting firm, and grant permission to proceed with Programming and Preliminary Design for the Creamery Warehouse. Carried.

14. Report by the Vice President for Business Affairs. Vice President for Business Affairs Sam Kindred reported on activities that he has been involved in during the first five weeks of his job. He discussed some of the infrastructure problems that he encountered when he arrived, as well as some of the challenges he has with current staffing and funding levels within Business Affairs. He stated that he is currently reviewing Business Affairs functions and associated staffing to identify any organizational changes which may be required to deliver their services as efficiently and effectively as possible. He said he is becoming failiar with all the on- and off-campus facilities with the primary focu of attention to date on the Riverpoint Campus. Vice President Kindred stated that he is getting to know his staff and is finding that he has dedicated, hard-working people in place who are committed to serving the University to the best of their abilities. He said he is committed to providing the leadership needed in this area.

In addition to the current activities on which he has been working, Vice President Kindred provided information about the bond sale for the Student Recreation Center. He said the sale went extremely well. He read a wire report discussing the sale stating that Standard & Poor’s had assigned its double-‘A’ rating to WSU’s $46.09 million recreation center revenue bonds series 1998 dated August 1, 1998. He said that Standard & Poor’s raised its rating on the university’s student activity facilities fee bonds series 1969 and 1972 to double-‘A’ rating from double-‘A’-minus and that the outlook is stable. Vice President Kindred stated that during the first 24-hour of the bond offering period starting August 3, priority was given to in-state reatila, that based on overwhelming results, interest rates were lowered by .05 percent to .10 percent in some maturities, and that on August 5, the Bond was offered nationally, with most activity coming from institutional investors. He said that at the end of the period, over $40 million of the bonds were pre-sold and that the underwriter (Smith Barney) agreed to commit to purchase the entire issue. He noted that the interest rate on the bonds ranged from 4.10 percent in 2002, with the first principal maturity to 5 percent in 2023, the final principal. Maturity. He also noted that the bonds were priced to yield from 4.10 percent