UHS - Meeting Minutes

MINUTES OF THE MEETING
UNIVERSITY OF HOUSTON SYSTEM
BOARD OF REGENTS MEETING

May 17, 2007

Members Present:

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

The University of Houston System Board of Regents convened in the Multi-Purpose Room, 3007 Ben Wilson, UH-Victoria, Victoria, Texas on Thursday, May 17, 2007. Noting the presence of a quorum, Chairman Hermes called the meeting to order at 10:06 a.m.

The first item on the agenda was Item B, Executive Session.

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 10:15 a.m. The Board reconvened the meeting at 11:40 a.m.

EXECUTIVE SESSION REPORT

Chairman Hermes reconvened the Board meeting at 11:40 a.m. and stated a Litigation Status Report was given by General Counsel, Dona Hamilton. Other items discussed were property and personnel issues.

Chairman Hermes stated that no action was taken by the board at Executive Session.

The next item on the agenda, Item D, was Reports from the following Committee meetings. Chairman Hermes reported that the Audit Committee met on May 2, 2007 and received the following three reports from our Internal Auditor, Don Guyton:

University of Houston System Excerpts of External Audit Report Texas State Auditor’s Office – Federal Portion of the Statewide Single Audit Report for the Fiscal Year Ended August 31, 2006 – UH System

Internal Audit Report – Briefing Booklet – UH System

Institutional Compliance Status Report for the Three Months Ended March 31, 2007 – UH System

Chairman Hermes also reported that the External Affairs Committee met on May 2, 2007 and received an update from Vice Chancellor/Vice President Grover Campbell on the Update of State and Federal Agenda for the University of Houston System.

All of these items were for information only and required no action by the board.

Chairman Hermes recessed the meeting to hear the reports from the remainder of the committees.

ACADEMIC AND STUDENT AFFAIRS COMMITTEE REPORT

Chairman Hermes called on Regent Gonzalez to present the Academic and Student Affairs Committee Report.

Regent Gonzalez stated that the committee met on May 2, 2007 and approved the following items:

Promotion in Academic Rank – UH System

Faculty Emeriti Appointments – University of Houston, UH-Clear Lake, UH-Downtown

Establishment of a School of Nursing – UH-Victoria

Doctor of Philosophy (Ph.D.) Degree in Pharmacy Administration – University of Houston

Regent Gonzalez called on Dr. Foss to present the four new items for approval and the one information item.

Dr. Foss called on Dr. Jeanette Hartshorn, UHV Director of Nursing, who presented the Academic Presentation: Nursing Programs at UH-Victoria. Dr. Hartshorn provided the Board with an overview of the nursing programs at UH-Victoria. This item was for information only. A copy of this presentation is on file in the Board office.

At the conclusion of Dr. Hartshorn’s presentation, Dr. Foss presented the next four items requiring approval.

Action Items:

Master of Science Degree in Nursing (MSN) – UH-Victoria
UH-Victoria proposes the establishment of a Master of Science degree in Nursing. The program actually consists of two distinctive sets of course requirements, both of which lead to the MSN degree. The first is a Master of Science in Nursing program for individuals who possess the Bachelor of Science in Nursing (BSN) degree and the second is a generic Master of Science in Nursing program for individuals with undergraduate degrees in another discipline who wish to become registered nurses. The generic program requires 99 semester credit hours over six semesters. The MSN degree will address the chronic nursing shortage and will be delivered both in Victoria and in Sugar Land. One hundred fourteen students are anticipated by the fifth year, and it is projected that two new faculty members will be added during that period.

Bachelor of Arts Degree in Mathematics – UH-Downtown
UH-Downtown proposes the establishment of a Bachelor of Arts degree in Mathematics, to be administered by its Department of Computer and Mathematical Sciences Department. This program is designed to provide students with the foundation of a liberal arts education and a broad overview of mathematics and its applications. It is anticipated that 40 students would be enrolled by the fifth year, with only minimal new costs to the institution.

Bachelor of Science (BS) Degree in Pharmaceutical Sciences – University of Houston
The University of Houston proposes the establishment of a Bachelor of Science (BS) degree in Pharmaceutical Sciences, to be administered by the College of Pharmacy. The program is designed to provide training in the pharmaceutical and related health sciences, including medicinal chemistry, pharmaceutics, pharmacology, toxicology, pharmacy administration and health outcomes. This program does not qualify its graduates to become registered pharmacists, but rather prepares them to pursue health- related careers by way of additional graduate or professional programs. It is anticipated that the program will attract 150 students by the fifth year.

Approval of Academic Programs for UH-Clear Lake Pearland Campus – UH-Clear Lake
Dr. Foss called on Dr. William Staples, President of UH-Clear Lake to present this item.
Dr. Staples stated that approval is requested for the creation of a University of Houston-Clear Lake branch campus in Pearland. This campus would operate as an upper-level and master’s institution, in cooperation with area two-year institutions. Supporting materials include the list of projected degree programs, enrollment projections, and budget information. Upon approval, this proposal will be submitted to the Texas Higher Education Coordinating Board for its consideration and approval. The estimated annual branch operations cost would be between $2,100,000 to $3,400,000.

Regent Stephens moved committee approval of the items as presented. Regent O’Connor seconded the motion, which passed unanimously.

There being no further business to come before the committee, the meeting adjourned at 12:10 p.m.

Regent Gonzalez moved Board approval of the items as presented. Regent Stephens seconded the motion, which passed unanimously.

ADMINISTRATION AND STRATEGIC PLANNING COMMITTEE REPORT

Chairman Hermes then asked Regent Wise for the report of the Administration and Strategic Planning Committee.

Regent Wise stated that the Administration and Strategic Planning Committee met on May 2, 2007 and approved the following items:

Revision to Board of Regents Policies – UH System

Construction of a Lecture Hall and Academic Center – University of Houston

Purchase of Property Located at 3004 Leek Street – UH System

Regent Wise stated that there was one deferred information item and one deferred approval item being presented today from the May 2, 2007 committee meeting; and there were two new items for approval. Regent Wise then turned the meeting over to Dr. Rudley to introduce these items.

Dr. Rudley turned the meeting over to Mr. Dave Irvin, who presented the deferred information item, Framework Plan Update – University of Houston. Mr. Irvin gave a status report of the University of Houston campus plan. A copy of this presentation is on file in the Board office.

Dr. Rudley then presented the next three items requiring approval:

Action Items:

Possession of Portions of Cullen Boulevard and Holman Street – UH System
This item had been deferred from the May 2, 2007 committee meeting. Dr. Rudley stated he had met with Ms. Ada Edwards concerning this item and mentioned an approval letter would be given. He then turned the meeting over to Mr. Dave Irvin, who presented this item.
Mr. Irvin stated that the Campus Framework Plan, approved by the Board on November 16, 2006, recommended that the University take possession of portions of Holman Street and Cullen Boulevard for the purposes of improving campus security, providing a safer pedestrian environment, managing event traffic, and decreasing non- campus traffic in the area. The portions to be acquired are Holman Street between Scott Street and Cullen Boulevard and Cullen Boulevard between Holman Street and Wheeler Street.

The University is able to take possession of these portions of streets by provisions of the Texas Education Code §51.904 which authorizes institutions of higher education to take possession of streets if it owns all of the real property abutting the streets and owns 20 or more acres of real property on the campus where the street is located.
Approval for negotiation of a Letter of Intent, development and lease agreement with option to own the campus building and underlying 40 acres – UH-Clear Lake
Approval is requested for the delegation of authority to the Chancellor to negotiate a Letter of Intent which will lead to a development agreement and 20-year lease for a minimum 20,000 square feet of a campus building from the City of Pearland. Approval is also requested for the option to negotiate ownership of the leased campus building and underlying 40 acres by conveyance and receipt of gift deed. This proposal will be submitted to the Texas Higher Education Coordinating Board for its consideration and approval once it has been approved by the Board.

Real Property Involving the University of Houston System @ Sugar Land – UH System
Approval is requested of a transaction which involves a real property exchange between the UH System and the Levee Improvement District (“LD”) No. 17 of Fort Bend County. The land involved (approximately 20 acres) includes property originally retained by the Texas Department of Transportation designated as drainage ditches and which cut across a portion of the University of Houston @ Sugar Land campus. The exchange will swap portions of LID No. 17 property for UH System property, providing UH System more readily usable land and improving drainage on the Sugar Land campus and in neighboring areas currently under development. Approval is also requested for a Delegation of Authority to the Chancellor to execute agreements and deeds under mutually acceptable conditions for this exchange.

Regent Wilson moved committee approval of the items as presented. Regent Cemo seconded the motion, which passed unanimously.

There being no further business to come before the committee, the meeting adjourned at 12:40 p.m.

Regent Wise moved Board approval of the items as presented. Regent O’Connor seconded the motion, which passed unanimously.

ENDOWMWENT MANAGEMENT COMMITTEE REPORT

Chairman Hermes asked Regent Cemo for the report of the Endowment Management Committee.

Before calling the meeting to order, Regent Cemo gave a brief summary of the May 1, 2007 Endowment Management Committee meeting. Regent Cemo stated that a brief overview of the Endowment Fund was given by Bruce Myers and Hamilton Lee of Cambridge Associates.

Regent Cemo stated that investment strategies and changes to the endowment investment policy were discussed, in particular the rebalancing of an asset class above or below its approved minimum or maximum range. Regent Cemo also complimented Cambridge on the changes they had made over the past few years to the endowment’s asset allocation which has significantly improved performance as of December 31, 2006. Regent Cemo also mentioned that the portfolio returned 15.2%, which outperformed the Cambridge endowment median of 14.55% and the 14.77% median return for colleges and universities between $400 million and $800 million in assets.

After this brief summary, Regent Cemo called the meeting to order at 12:41 p.m. and presented the two action items for approval.

Action Items:

Appointment of Endowment Investment Manager – UH System
The Endowment Management Committee received a report from the system’s investment consultant, Cambridge Associates, which identified a firm for consideration as an investment manager for the Endowment Fund. The committee previously interviewed representatives from the investment management firm identified in the report. The committee therefore requests the approval of Commonfund Capital Venture Partners VIII, L.P. as an investment manager for the University of Houston System Endowment Fund.

UH System Endowment Fund Statement of Investment Objectives and Policies – UH System
The Endowment Management Committee received a report from the system’s investment consultant, Cambridge Associates, regarding the System endowment funds’ investment policy. As a result of this report, the Committee is requesting approval to modify the investment policy to add additional language to the rebalancing section of the policy. The changes to the rebalancing section provide additional guidance to staff for rebalancing in the event there is a need to bring a particular asset class or classes back to within the policy ranges approved by the Board. There are other edits, but most of them are either formatting changes or text inserted to provide clarity to existing processes. There are no changes to the asset allocation targets or ranges.

Regent Wise moved committee approval of the items as presented. Regent Cemo seconded the motion, which passed unanimously. There being no further business to come before the committee, the meeting adjourned at 12:45 p.m.

Regent Stephens moved Board approval of the items as presented. Regent O’Connor seconded the motion, which passed unanimously.

UNIVERSITY ADVANCEMENT COMMITTEE REPORT

Chairman Hermes then asked Regent Golden for the report of the University Advancement Committee.

Regent Golden stated that the committee met on May 2, 2007 and approved the following item:

Naming of Michael J. Cemo Hall – University of Houston

There being no further business to come before the committee, the meeting adjourned at 12:46 p.m.

Regent O’Connor moved Board approval of the item as presented. Regent Stephens seconded the motion, which passed unanimously. Let it be noted that Regent Cemo abstained from the vote.

After hearing all of the committee reports, Chairman Hermes reconvened to a full board meeting at 12:55 p.m.

CONSENT DOCKET

Chairman Hermes asked for approval of the Consent Docket. Regent O’Connor moved approval of the items in the Consent Docket. Regent Gonzalez seconded the motion, which passed unanimously.

The next item on the agenda is the Appointment of a Nominating Committee for the election of board officers in August. Board Bylaws 3.2 states that a nominating committee of three regents, one representing each regental class, shall be appointed by the chair at the regular meeting of the board in May. In accordance with this Bylaw, Regent Hermes appointed Mike Cemo, who will serve as chairman, and Regents Morgan O’Connor and Lynden Rose, who will serve on the committee.

The election of officers will be held at the August 16, 2007 Board of Regents meeting. Chairman Hermes presented the next item for approval, Item C, List of Dates for Fiscal Year 2008 Board of Regents Meetings – UH System. These dates will take effect on September 1, 2007.

Regent Gonzalez moved Board approval of the item as presented. Regent Stephens seconded the motion, which passed unanimously.

The Approval of Charge to Chancellor/President Search Advisory Committee – UH System/University of Houston was the next item on the agenda presented by Chairman Hermes. Regent Hermes stated that Mr. William Funk had been selected as the search consultant. A Search Advisory Committee had been formed and Regent Hermes stated that he will be chair of this committee. He stated that one additional University of Houston faculty member will be added to the committee; and a list of the members will be published shortly. Chairman Hermes also distributed a letter to the Board members asking them for a list of “Leadership Qualities” and “Priorities” they would like to see in the new Chancellor/President. He also welcomed and encouraged the community to submit to him any recommendations they might have for this position.

The last item on the agenda was Appointment of Interim Chancellor of the University of Houston System/President of the University of Houston. The Board requested approval for the appointment of an Interim Chancellor/President of the University of Houston System/University of Houston.

Regent Hermes discussed the process the board had taken over the last several months and the many hours of deliberation and comments that were given by individuals externally as well as internally. Regent Hermes stated that this position would become effective June 1, 2007.

Regent O’Connor then announced that she was honored to name Dr. John M. Rudley, Vice Chancellor/Vice President for Administration and Finance, as the new Interim Chancellor/ President of the University of Houston System/University of Houston. Regent Stephens then seconded the motion, which passed unanimously.

Regent Hermes and the Board congratulated Dr. Rudley on his new position and asked him to say a few words.

Dr. Rudley thanked the Board for their faith in him and for the opportunity of serving the University’s faculty, staff, students, and community. The momentum established by Dr. Gogue will certainly help move us toward the next level of excellence and help meet the Strategic Principles and Initiatives in place. Dr. Rudley stated he was proud and honored to be a part of this great urban university and was confident the transition would be a smooth one.

CHANCELLOR’S REPORT

Chancellor Gogue was unable to attend the meeting; therefore, no chancellor’s report was given.

INFORMATION ONLY

Dr. Hudson welcomed the regents to the UH-Victoria campus and gave some brief remarks. He also introduced Danny Ochoa, President of the Student Government Association at UHV, who gave brief comments as well.

Chairman Hermes mentioned that one individual had signed up for Open Forum to address the board at the meeting. Ms. Karen Pantel, a representative from the University System Staff Executive Council (USSEC), gave a brief summary statement on the topic.

Chairman Hermes also stated that a Chair’s Report would not be given as there was nothing to report to the board as this time.

In absence of further business, the Board adjourned at 1:25 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:
Dona G. Hamilton Donald J. Foss John M. Rudley Elwyn Lee Michael Rierson Tim Hudson Max Castillo William Staples Suzanne LaBrecque Jim McShan Michelle Dotter Karen Pantel Carol Barr Nina Perez Gerry Mathisen	Don Guyton David Bell Wendy Adair Dave Irvin Ed Hugetz Malcolm Davis Brian Nelson James Anderson Joe Papick Wayne Beran Jose Rangel Lucy Bowen Joanne Laborde Desirre Miller	Wynne Chin Joe Kotarba Raymond Bartlett Ben Price Jeannette Hartshorn Charles Henry Molly Woods Elaine Charlson A. Glen Houston Michelle Sabino Danny Ochoa Kenya Hicks Margaret Garcia Matt Alexander