UHS – Approved Minutes

MINUTES OF THE MEETING
UNIVERSITY OF HOUSTON SYSTEM
BOARD OF REGENTS
August 1, 2006

Members Present:

Leroy L. Hermes, Chair
Mike Cemo, Vice Chair
Dennis D. Golden, Secretary
Raul A. Gonzalez
Robert B. Johnson
Morgan Dunn O’ Connor
Lynden B. Rose
Calvin W. Stephens
Welcome W. Wilson, Sr.
Jim P. Wise

The University of Houston System Board of Regents convened in the Melcher Board Room, Athletics/Alumni Center at the University of Houston on Tuesday, August 1, 2006. Noting the presence of a quorum, Chairman Hermes called the meeting to order at 8:30 a.m.

Action: Regent O’ Connor moved approval of the minutes from the following meetings:

May 2, 2006, Board of Regents Meeting

May 18, 2006, Board of Regents Meeting

May 25, 2006, Board of Regents Meeting

June 1, 2006, Special Called Board of Regents Meeting

June 13, 2006, Special Called Board of Regents Meeting

Regent Stephens seconded the motion, and the minutes were passed as presented.

Chairman Hermes called on Regent Cemo to present Item C on the agenda, Committee Restructure – UH System. Regent Cemo reviewed the proposed committee structure of six committees and stated he also recommends the formation of a committee on Athletics. Mr. Cemo led the discussion on the number of committees and the pros and cons of outside advisors. Several of the regents voiced concerns about the timing of the restructure and the logistics of the committee meetings. Since there was not a consensus regarding the restructure, Chairman Hermes appointed a task force consisting of the chairs of the four current standing committees and Regent Johnson. Chairman Hermes asked them to work closely with Dona Hamilton to further study the options and prepare a proposal to be reviewed at the August 17, 2006 Board Meeting.

Chairman Hermes called on Dr. Gogue to present Item D, Update on UH System Principles and Initiatives – UH System. Dr. Gogue gave a status report on the initiatives pursued as part of the strategic planning process. A copy of Dr. Gogue’ s PowerPoint presentation is on file in the board office. This is an information item and required no action by the board. An additional update of the UH System Principles and Initiatives will be presented at the August 17, 2006 Board of Regents Meeting.

The board recessed for the meetings of the standing committees at 9:54 a.m.

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ACADEMIC AND STUDENT AFFAIRS

Regent Gonzalez called the meeting to order at 9:54 a.m. Before he turned the meeting over to Dr. Foss, Regent Gonzalez announced that Item B, Personnel Action for Executive Management Employee – UH System, was withdrawn from the agenda.

Dr. Foss presented the following items for review by the committee:

Personnel Action for Executive Management Employee – UH – Victoria
Approval is requested for the appointment of Dr. Susanne LaBrecque as Provost and Vice President for Academic Affairs, effective August 16, 2006.

Master of Arts in Digital Media Studies – UH – Clear Lake
Approval is requested for the establishment of a Master of Arts in Digital Media Studies, to be administered by UH – Clear Lake School of Human Science and Humanities. This 36 hour program would be the first program in Digital Media Studies in the State of Texas. It is anticipated that 45 FTE students would be enrolled by the fifth year. Eight new courses will be added to the curriculum, and two faculty positions would be reallocated to this program to accommodate enrollment growth. A copy of the full proposal is on file in the Board Office.

Regent O’ Connor made a motion to approve the items as presented. Regent Wise seconded the motion, which passed unanimously. The committee will present these items to the Board for approval at the August 17, 2006 meeting.

There being no further business to come before the committee, the meeting adjourned at 10:16 a.m.

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UNIVERSITY ADVANCEMENT

Regent Golden called the meeting to order at 10:16 a.m. and turned the meeting over to Mr. Rierson.

Before introducing the items on the agenda, Mr. Rierson commented on the Department of University Advancement’s efforts in complying with the goals of the UH System Strategic Principles and Initiatives. He also distributed a copy of The University of Houston magazine, a redesigned version of the University of Houston’s Collegium magazine. Regent Golden complimented Mr. Rierson on the improvements within the department.

Mr. Rierson presented the following item for review by the committee.

Planning grant for $50,000 from Houston Endowment as first step in UH–Downtown’s participation in Achieving the Dream, a national program designed to improve the completion rates of under–prepared students.
Approval is requested of a $50,000 grant from Houston Endowment for the University of Houston– Downtown’s participation in Achieving the Dream, a national program designed to improve the completion rates of under–prepared students. A core leadership and a data team are being assembled to begin the work of the initiative in early August to be in compliance with the terms of the grant.
Regent Cemo requested a copy of the compiled data. Dr. Castillo said that the information will be included in his annual report.

Regent Stephens moved approval of the action item as presented. Regent Cemo seconded the motion, which passed unanimously. The committee will present this item to the board for approval at the August 17, 2006 meeting.

The following items were presented for information:

Overview of Private Support – UH System

University of Houston Division of University Advancement Public Affairs Quarterly Progress Report – University of Houston
Regent O’Connor requested that the board have the opportunity to discuss the brand issue if a naming summit is ever convened. The regents agreed that they should review the viability of a new naming structure before outside individuals are contacted. Mr. Rierson confirmed that University Advancement would be concentrating on a comprehensive capital campaign and that he does not plan on initiating any new naming efforts.

There being no further business to come before the committee, the meeting adjourned at 10:24 a.m.

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ADMINISTRATION AND FINANCE

Regent Cemo called the meeting to order at 10:25 a.m. and turned the meeting over to Dr. Rudley.

Dr. Rudley presented the following items for review by the committee.

FY 2007 Plan and Budget – UH System
Approval is requested of the FY 2007 Plan and Budget. The total budget for the UH System includes operations and capital projects for the University of Houston, UH – Clear Lake, UH – Downtown, and UH – Victoria, totaling $984,177,030. Dr. Rudley presented the UH System overview, Dr. Foss presented the budget for the University of Houston, and the Presidents presented the proposed budget for their campuses. A copy of the PowerPoint presentation is on file in the Board office. During the discussion, the regents asked for the following information:

Regent Stephens requested information on the set asides for financial aid.
Regent Hermes requested a chart that shows the relation of growth of the University of Houston and the community colleges.
Regent Golden requested information on the number of transfers from community colleges.
Regent Cemo requested data on the increase or decrease in graduate and undergraduate students. He also asked for information on the increase or decrease in number of students that finished high school in the top 20 percent of their class and whether the statistics referred to “admitted” applicants or “enrolled” applicants.
Regent Johnson asked for the names of the institutions on the top and bottom of the list of universities by student headcount. Dr. Rudley provided that information during his presentation.

Regent Cemo complimented Dr. Rudley on the budget presentation and thanked him and the individuals from each campus who worked on the budget.

After the FY 2007 Plan and Budget was completed, Regent Hermes called a 10 minute recess at 11:26 a.m.

At 11:36 a.m. Regent Hermes reconvened the Administration and Finance Committee Meeting and Dr. Rudley moved on to the next item on the agenda:

Appointment of Endowment Investment Managers – UH System
Approval is requested for the appointment of six new investment managers identified by Cambridge Associates for the University of Houston Endowment Fund – UH System:

Colchester Global Investors
Wellington Management Company
Federal Street Partners
HBK Investments
Moncreif Willingham Energy Advisors
HarbourVest Partners

Insurance Renewals for Fiscal Year 2007 – UH System
Approval is requested for a Delegation of Authority to the Chancellor to negotiate and execute contracts for insurance coverage for the University of Houston System for FY 2007 in an amount not to exceed the total premiums of $6,000,000. The renewal date for the University of Houston System is September 1, 2006 and must be executed prior to the September 1^st renewal date.

Purchase of Willow Street Pump Station – UH System
Approval is requested to purchase the Willow Street Pump Station for use by the University of Houston – Downtown. UH – Downtown will purchase the 31,250 sq. ft. property for $1,431,625 using a combination of HEAF and other university funds.

Regent Wilson requested a map of the area, showing the location of the property.

Regent Gonzalez moved approval of the action items as presented. Regent Cemo seconded the motion, which passed unanimously. The committee will present these items to the board at the August 17, 2006 meeting.

There being no further business to come before the committee, the meeting adjourned at 12:27 p.m.

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AUDIT COMMITTEE

Regent Stephens called the meeting to order at 12:27 p.m. and turned the meeting over to Don Guyton.

Mr. Guyton presented the following items for review by the committee:

UHS Internal Auditing Department Long–Range Internal Audit Plan for Fiscal Years 2007–2009 – UH System
Approval is requested of the UHS Internal Auditing Department Long–Range Internal Audit Plan for Fiscal Years 2007 – 2009. This plan is prepared to meet the requirements of the Board of Regents policy and the Texas Internal Auditing Act (Texas Government Code, Sec. 2102), as amended. The Texas Internal Auditing Act requires the Board of Regents to approve the Audit Plan and periodically review the resources dedicated to the Internal Audit program and determine if adequate resources exist to ensure that risks identified in the annual risk assessment are adequately covered within a reasonable time frame.

Audit Committee Planner – UH System
Approval is requested of the Audit Committee Planner. The only change that has been made to the planner was to modify item 5.01 of the planner to change the date of the private meeting of the internal auditor and the board from the August meeting to the November meeting. Mr. Guyton noted that this item requires only Committee approval and not the board.

Mr. Guyton also commented on a Board of Regents Planner prepared by the Board Office which shows items in the Board Policies and Bylaws that require actions or reports. The planner also lists the deadline date and the administrative responsibility for each item. This planner will be presented at the August 17, 2006 Meeting for approval by the board. If approved, the planner will be presented annually in August.

Regent O’Connor moved to approve the items as presented. Regent Cemo seconded the motion, which passed unanimously. The committee will present the Long Range Internal Audit Plan to the board for approval at the August 17, 2006 meeting.

Mr. Guyton presented the following items for information:

Internal Audit Report – Briefing Booklet – UH System

External Audit Reports – UH System

KUHT (TV) Financial Statements and Independent Auditors’ Report for Year Ended August 31, 2005.
KUHF (FM) Financial Statements and Independent Auditors’ Report for Year Ended August 31, 2005.
University of Houston System Endowment Fund Financial Statements August 31, 2005, and 2004.
UH Athletics Department Independent Accountants’ Report on the Application of Agreed–Upon Procedures for Year–ended August 31, 2005 (excerpts).

Institutional Compliance Status Report for the Three Months Ended June 30, 2006, and Annual Compliance Plan for FY 2007

At the end of the meeting, Regent Stephens read a letter from Catherine A. Smock, Chief Auditor of Texas A&M System, thanking the University of Houston System for allowing Don Guyton to be a team member of the external peer review of the Texas A&M University System Internal Audit Department. Ms. Smock complimented Mr. Guyton on his insight and knowledge of the internal auditing profession and higher education.

There being no further business to come before the committee, the meeting adjourned at 12:48 p.m.

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The board reconvened at 12:49 p.m. Pursuant to Subchapter D of Chapter 551 of the Texas Government Code, which allows governing boards to meet in closed session, the Board of Regents went into Executive Session at 1:01 p.m. The Board reconvened the meeting at 2:24 p.m.

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EXECUTIVE SESSION REPORT

Regent Hermes announced that the regents received a Litigation Status Report from General Counsel, Dona Hamilton, and discussed personnel and property issues. There is no action as result of this Executive Session.

INFORMATION ONLY:

During the Chair’s Report, Mr. Hermes announced the following:

Dr. Rudley and the Facilities Department had conducted an Energy Conservation Exercise and had identified areas where $2 million could be saved in energy costs. Mr. Hermes congratulated Dr. Rudley and the Facilities staff.
Mr. Hermes also congratulated President Hudson on the success of the new Nursing Program at UH–Victoria. Regent Golden added his thanks to Dr. Hudson and the team that worked on the program proposal.
Mr. Hermes also mentioned that Methodist Hospital Sugar Land pledged a $200,000 gift to UHS @ Sugar Land for a new nursing skills laboratory building.

Dr. Gogue announced that he did not have a Chancellor�s Report.

In absence of further business, the Board adjourned at 2:25 p.m.

All documentation submitted to the Board in support of the foregoing action items, including but not limited to “Passed” agenda items and supporting documentation presented to the Board, is incorporated herein and made a part of these minutes for all purposes; however, this does not constitute a waiver of any privileges contained herein.

Others Present:
Jay Gogue Dona Hamilton Don Foss John Rudley Elwyn Lee Grover Campbell Michael Rierson Max Castillo Tim Hudson William Staples Molly Woods Janis Newman Elizabeth Brock Lucy Limon	Wendy Adair Jim Anderson Elaine Charlson Don Guyton Jim McShan Tom Ehardt Raymond Bartlett José Rangél Steve Craig Craig Ness Michelle Sabino Diane Murphy Gerry Mathisen	David Bell Michelle Dotter Jim Hayes Dave Irvin Ed Hugetz Chris Stanich David Bradley Malcolm Davis Margie Hattenbach Oscar Gutierrez Korbin Mays (w/Walton Johnson) Peggy Cervenka Marquette Hobbs