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MINUTES OF THE REGULAR MEETING
of the
BOARD OF REGENTS OF THE UNIVERSITY OF WISCONSIN SYSTEM
Madison, Wisconsin
Held in Room 1820 Van Hise Hall
Friday, March 10, 1995
9:00 a.m.
- President Grebe presiding -
PRESENT: Regents Barry, Budzinski, Dreyfus, Gelatt, Grebe, Gundersen,
Hempel, James, Lubar, Orr, Randall, and Tregoning
ABSENT: Regent Benson, Krutsch, MacNeil, Schilling and Steil
Approval of Minutes
Upon motion by Regent Lubar, seconded by Regent Gundersen, minutes of
the meeting of the Board of Regents held on February 10, 1995, were
unanimously approved as distributed.
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REPORT OF THE PRESIDENT OF THE BOARD
Report on Higher Education Aids Board Meeting of February 17, 1995
President Grebe referred to the report of the Higher Educational Aids
Board meeting (February 17, 1995) provided in the agenda materials. There
were no questions regarding the report.
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Legislative Report
President Grebe noted the monthly report on Legislative matters
provided by Vice President Olien. There were no questions regarding the
report.
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Educational Communications Board
Regent Gelatt provided a report of the March 7, 1995 meeting of the
Educational Communications Board. He informed the Board that there was a
lot of discussion concerning the legal position related to the possible
transfer or co-licensing of ECB television and radio stations with DOA and
noted that no legal briefs have been received. The Educational
Communication Board's response to these issues will be the subject of a
later meeting. Regent Dreyfus remarked that concerns had been raised
questioning the editorial control wielded by licensees; he noted that the
Board of Regents exerts no such editorial control as licensees. Regent
Gelatt noted that the Board of Regents makes decisions through the
allocation of resources among license holders, and that licensees have broad
legal responsibilities, although these responsibilities may be delegated.
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REPORT OF THE PRESIDENT OF THE SYSTEM
Report on Accountability: 1994 Survey of Wisconsin Businesses
President Lyall presented the results of the triennial survey of
Wisconsin businesses' perceptions of UW System graduates and the importance
of university expertise in the state's economy. Grant Thornton performed
the survey, which serves as an accountability indicator, using questions
that paralleled those of the 1991 survey. The survey helps the University
System compare changing perceptions in the business community regarding the
Wisconsin economy; the education and training needs of employees; the
provision of technical, research and continuing education services; and the
quality and skills of UW System graduates.
Six hundred and thirty one Wisconsin businesses, including firms in
manufacturing, retail trade, recreation and tourism, construction, medical,
legal, childcare, wholesale trade and distribution, and the restuarant
industry were surveyed. President Lyall noted that, in general, businesses
"feel very positive about the role of the UW System in the state's economy,
and its importance in the education and training needs of their employees."
These businesses indicated interest in distance education, and 60% of them
indicated that they were willing to pay half or more of the costs associated
with it. Businesses also indicated that continuing education is an
important benefit to offer when recruiting a skilled work force.
Compared to the 1991 survey, more businesses rate the UW System as
important and 93% rated UW System graduates' skills as "excellent," with a
similar percentage rating the graduates' professional knowledge in their
fields at the same level. Over one quarter of Wisconsin businesses rely on
UW graduates for one-third or more of their work force; 17% rely on UW
graduates for over half of their work force. President Lyall noted that
these findings suggest "that as the state's economy grows and evolves, the
availability of a well-trained professional work force, top quality
technical, research, and continuing education services are also growing in
importance." Referring to the survey's finding that businesses would be
interested in sharing the costs associated with continuing education, she
stated that the UW System has important partners in moving distance
education initiatives forward; she indicated that there were several program
initiatives designed to meet these needs which will be discussed in the next
few months. President Lyall also noted that it is essential that the UW
System have the flexibility to earn and spend program revenues for distance
and continuing education in order to serve these continuing educational
needs.
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Wisconsin Public Radio Pledge Drive
President Lyall observed that the recent results of the Wisconsin
Public radio pledge drive were a reassuring sign of appreciation for some
public services. The 5.5 day drive raised an all-time record $465,000 in
supporter contributions. President Lyall offered her deepest thanks to
those contributers who voted to continue public radio throughout the state.
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John Weaver, President Emeritus
President Lyall concluded her report by observing the passing of former
President of the University of Wisconsin and University of Wisconsin System,
John Weaver. On behalf of the University Community, she extended sympathy
to his wife and the Weaver family. The 15th president of the University of
Wisconsin and the first president of the UW System, John Weaver will be
remembered and appreciated, especially for his "unequalled passion and
dedication to extending the opportunity for higher education to all the
citizens and communities of Wisconsin." She reported that, at the memorial
service for J. Martin Klotsche, President Emeritus Weaver stated that the
people of this state have more reason than they may realize to have
confidence and pride in their university.
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REPORT OF THE PHYSICAL PLANNING AND DEVELOPMENT COMMITTEE
The committee's report was presented by Regent Dreyfus, Chair, who
reported that Regents Barry, Budzinski, Gundersen, Shilling attended the
meeting with him.
Approval of Consent Agenda Items
Regent Dreyfus presented Resolutions 6863 - 6867, which had been
approved unanimously by the Physical Planning and Development Committee.
The motion was seconded by Regent Budzinski, and carried unanimously.
UW-Madison: Authority to construct Enzyme Institute Laboratory
Remodeling Project
Resolution 6863: That, upon the recommendation of the UW-Madison
Chancellor and the President of the University of
Wisconsin System, authority be granted to construct
an Enzyme Institute Research Lab Remodeling project
at a cost of $186,800 from Graduate School
Operating Fund.
UW-Stevens Point: Authority to construct the Allen Center Renovation
Project
Resolution 6864: That, upon the recommendation of the UW-Stevens
Point Chancellor and the President of the
University of Wisconsin System, authority be
granted to construct the Allen Center Renovation
Project at an estimated total project budget of
$235,500 from Program Revenues.
UW-Madison: Authority to construct a Computer Science and Statistics
Remodeling project
Resolution 6865: That, upon the recommendation of the UW-Madison
Chancellor and the President of the University of
Wisconsin System, authority be granted to construct
a Computer Science and Statistics Remodeling
project at a cost of $216,420, using Program
Revenue funds.
UW System Administration: Approval to support Procurement
Recommendations
Resolution 6866: That the Board of Regents of the University of
Wisconsin System endorses the following
recommendations which impact the procurement
function and would be beneficial to University of
Wisconsin System Procurement operations, and
requests that this resolution of endorsement be
forwarded by the President of the Board to the
Secretary of the Department of Administration:
SAVE COMMISSION RECOMMENDATIONS
þ "13.1 Increase system management flexibility. To refocus
oversight on results, give the UW more flexibility
in personnel, procurement, budgeting, program
generated revenue (except tuition) and purchasing
categories. .........and allow the University to
work with state government to reduce paperwork and
reporting."
þ "20.8 Eliminate Constitutional restrictions on
purchasing. To eliminate unnecessary paperwork
and give added purchasing flexibility, abolish
outdated Constitutional restrictions on state
printing procurement."
þ "20.9 Modernize procurement practices, top to bottom. To
get greater value, eliminate overly detailed state
procurement laws, giving flexibility to employees
to buy for best value. Maintain credibility
through oversight based on results and regular
disclosure of costs, not details, and through
commitment to minority participation."
þ "20.10 Purchasing agents should become helpers. and
compete. To help units be better buyers,
procurement personnel should focus on training,
planning, coordination and partnering. Their
service becomes largely self-funded but state
agency "customers" could buy procurement services
elsewhere."
(NOTE: the language stricken in the above recommendation indicates
that UW System Administration does not support it.)
GOVERNOR'S BUDGET RECOMMENDATIONS:
þ Amend 16.75(6)(b) to allow state agencies and the
university to purchase from contracts established by
another state, from a regional or national consortium
composed of nonprofit institutions that support
governmental or educational services.
þ Increase the various purchasing thresholds under Chapter
16.70 from the current level of $10,000 to $25,000.
UW-Superior: Approval for the Exchange of Lands and to Expand
Approved Campus Boundary
Resolution 6867: That, upon the recommendation of the UW-Superior
Chancellor and the President of the University of
Wisconsin System, the following authority be
granted:
(1) for the exchange of lands with the M & C Oil
Company (MCO), with any existing leases between MCO
and North Shore Oil Company transferring from the
land being conveyed to the Board to the land begin
conveyed to MCO,
(2) the granting of nonexclusive easements for access
to Catlin Avenue and Belknap Street, and
(3) to expand the approved Campus Boundary to reflect
the foregoing transaction.
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UW-Milwaukee: Approval to name three areas within the Business
Administration Building
Resolution 6868 was presented by Regent Dreyfus, who moved its
adoption. The motion was seconded by Regent Gundersen, and carried
unanimously.
Resolution 6868: That, upon the recommendation of the UW-Milwaukee
Chancellor and the President of the University of
Wisconsin System, authority be granted to name the
following three areas within the Business
Administration Building:
Lecture Hall N140 - Michael John Cudahy
Career Services Center N203 - Bert L. and Patricia
S. Steigleder
Lecture Hall S151 - James David Scheinfeld
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Report of the Vice President
Regent Dreyfus summarized the report by the Vice President to the
committee, noting that it covered several topics, including the need for
Physical Planning and Development representation at the next State Building
Commission's Higher Education Subcommittee meeting on March 29, 1995 and the
anticipated expenditure of $35 million over the next several years to
replace cooling equipment in UW System facilities.
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UW System Recycling Program
Regent Dreyfus reported that the System-wide recycling program has been
very successful, recycling almost 7000 tons of material--an 8% increase over
last year. This is well ahead of the required pace and leads all other
state agencies in compliance with the recycling statute.
In reference to the report on recycling, Regent Orr reminded the Board
of his request for a list of Board-mandated reports and information related
to the cost of their production. His goal is to reduce the number and
associated costs of these reports, "to save money and make sure we're
spending it responsibly." President Lyall responded that the list was
available, but needs to be updated.
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Procurement
Regent Dreyfus reported that Ruth Anderson made an audio/visual
presentation about the procurement process, sharing a number of measures and
innovations. Staff has been working with the Department of Administration
to obtain additional flexibility.
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Proposed Sports Arena, UW-Madison
Regent Dreyfus stated that the proposed sports arena at UW-Madison is
proceeding, noting that Chancellor Ward anticipates having a report and
recommendation available for the April meeting of the Board of Regents.
Regent Lubar questioned the figures presented in the report, noting that the
University of Arkansas' excellent facility was constructed at a cost of $30
million and that the figures presented seemed excessive. Regent Dreyfus
replied that much of the land for that facility was donated, and that the
UW is developing a funding system combining gifts and program revenues. He
noted the challenges faced in funding a basketball facility based on program
revenues would be different were the facility to be used for hockey as well,
but that such an additional use would incur other problems.
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Proposed Staffing Reductions
Regent Dreyfus reported that Regent Schilling had raised the issue of
the proposed staffing reductions of 45 positions, 18 of which are System
staff. Given the ability of System Administration staff to provide the
committee and the Board with information necessary to meet the
responsibilities associated with maintaining the UW System's infrastructure,
the loss of experience and committed staff would have a direct impact on the
committee. Regent Schilling asserted that it was important to take a
position supporting the retention of its current funding and staff; he
introduced Resolution 6869 to the committee, which was seconded by Regent
Gundersen and adopted by unanimous vote. Vice President Brown then
suggested that the Board of Regents present an alternative proposal to the
Governor's budget--that the UW System oversee the entire capitol budget,
committing to manage the budget on a program revenue basis for 25% less than
the 4% fee charged by the Division of Facilities Development.
Regent Dreyfus reported that at 4:35, the committee convened in closed
session to consider personnel matters. This session produced the following
committee action, which was approved by the Physical Planning and
Development Committee.
Committee Action: The Physical Planning and Development Committee has
reviewed and discussed the implications of the
proposed reductions affecting capital budget and
planning staff as reflected in the 1995-97 State
budget.
On completion of this review, it is the considered
judgement of the Committee that it will not be
possible for the Board of Regents to carry out the
statutorily mandated functions of planning,
administering, and maintaining the capital building
base of the University of Wisconsin System, if the
proposed reductions are made.
Regent Dreyfus moved the adoption of Resolution 6869, which was
seconded by Regent Gundersen.
Regent Gundersen asked Chancellor Sanders to express his views
regarding the difficulties faced by Chancellors. According to Chancellor
Sanders, Chancellors are getting more responsibility and less authority;
they are expected to reduce budgets while they may lose authority over
physical plants, buildings, information processing, printing, duplicating,
etc. Thus, their additional responsibilities are difficult to execute. The
second point made by Chancellor Sanders was to cite Frank Lloyd Wright's
observation: "First, we shape our buildings and then they shape us." He
stated that designing and renovating buildings should suit the needs of the
students and academic programs using the buildings, so that they complement
and encourage the processes taking place within them.
Speaking for Regent Schilling, Regent Dreyfus reasserted the importance
of the Regents' retaining responsibility for the buildings used by the
students and faculty, maintaining the position that these buildings and
lands ought not be given away.
Regent Barry commented on both Resolution 6869 and the Committee Action
cited above, noting that it was important to the identity of the UW System
to retain authority: "it would be very, very damaging to this University
System to lose the ability to prioritize those capital and physical
improvements and maintenance plans and issues." He cited the need for these
improvements to be driven by the demands of the UW System's academic mission
rather than by political process, and strongly suggested that aggressive
support was needed. He recognized that this might mean finding funds
elsewhere to sustain this aspect of the System, but that it might be
necessary to do so. He saw no way for the Department of Administration to
take on these functions without significant staff additions.
Noting that it was difficult to disagree with some of the sentiments
expressed so far, Regent Hempel observed any organizational restructuring
is difficult. She noted that, when the UW System is faced with the demand
for cost savings, they pass the request to chancellors, who face the
difficult task of cutting costs and facing the fear that quality will
suffer. Noting that such a demand to cut costs is parallel to that made by
the taxpayers to the Governor, Regent Hempel pointed out that the search for
cost savings led the Governor to seek out areas of duplication which could
be cut. Fearing that a parochial defense of the status quo might appear
overly defensive and affect the credibility of the Board, Regent Hempel
concluded that the proposed statement was too strong.
Regent Dreyfus questioned the issue of duplication of services. Noting
the need to maintain a system as large as the UW System and "move it into
the next century," he suggested that, while the DOA might be able to develop
plans for an arena, it would be more difficult to do so for all 1,600
buildings in the UW System. Concurring with Regent Hempel that simple
opposition to the Governor's plan could affect the Regents, Regent Dreyfus
again suggested that a counter proposal could result in long term savings
for taxpayers.
Regent Budzinski agreed that it was necessary to reduce the costs
associated with maintaining the UW System, but that it was equally important
for the UW System to maintain control over those costs. Regent Gelatt noted
that the resolution under discussion did not simply support the status quo,
but that it asserts the Board's responsibility for maintaining the UW System
infrastructure, which requires adequate funding and staffing.
At this point, Resolution 6869 passed unanimously.
Resolution 6869: That the Board of Regents affirms that adequate
funding and staffing should be provided to permit
the University of Wisconsin System Board of Regents
to fulfill its statutorily assigned fiduciary and
management responsibility for its infrastructure.
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Discussion then turned to the Committee Action cited above, which was
moved by Regent Dreyfus and seconded by Regent Gundersen. Regent Gelatt
noted that this Action had been presented as a Physical Planning and
Development Committee Resolution. He noted that, were it to be changed to
a Board of Regents Resolution, he would not be able to support the statement
that the Board had "reviewed and discussed the implications of proposed
reductions," since it was the committee that had done the review.
Regent Grebe, agreeing with Regent Hempel's caution regarding
Resolution 6869, was not prepared to say that the reductions would make it
impossible for the Board to perform is statutory functions; Regent Orr
concurred, citing the need to consult Chapter 36 to determine Regents'
responsibilities regarding buildings. After consulting Chapter 36, Regent
Orr could not reach the conclusion set forth in the second paragraph of the
Committee Action. He asserted that it was essential for the Regents to
maintain at least a co-capital planning capacity; noting the length of time
it takes to proceed with building planning, Regent Orr suggested that
dialogue with DOA could afford the Board an opportunity to discover more
efficient ways to proceed. It is essential, he asserted, to find a
"rational approach...which permits the Regents to carry out their
responsibilities under Chapter 36 and gets the job done for the State of
Wisconsin at a reasonable cost."
Following this discussion, Regent Dreyfus withdrew the motion and
presented the item as having been approved by the Physical Planning and
Development Committee for presentation to the Board. This concluded his
report.
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REPORT OF THE BUSINESS AND FINANCE COMMITTEE
The committee's report was presented by Regent Gelatt, chair.
Approval of Consent Agenda Items
Regent Gelatt presented Resolutions 6870 - 6873, which had been
approved unanimously by the Business and Finance Committee, and moved their
adoption as consent agenda items. The motion was seconded by Regent Hempel,
and the resolutions passed unanimously.
Agreement with private profit making organizations
(1) Fujisawa Pharmaceutical Company
Resolution 6870: That, upon recommendation of the President of the
University of Wisconsin System and the Chancellor
of the University of Wisconsin-Madison, the Board
of Regents accept the agreement with Fujisawa
Pharmaceutical Company entitled "FK506 Liver
Transplantation FPC-FK506-7, 91-0037 and 91-0045".
(2) Syntex (U.S.A.) Inc.
Resolution 6871: That, upon recommendation of the President of the
University of Wisconsin System and the Chancellor
of the University of Wisconsin-Madison, the Board
of Regents accept the agreement with Syntex
(U.S.A.) Inc. entitled "IID/MYCC1864/INT-
Randomized, Double-Blind Comparative Study of
Mycophenolate Mofetil or Azathioprine Each in
Combination with Cyclosporine and Corticosteroids
for the Prevention of Rejection in Cardiac
Allograft Recipients."
(3) Encyclopaedia Britannica Educational Corporation
Resolution 6872: That upon recommendation of the President of the
University of Wisconsin System and the Chancellor
of the University of Wisconsin-Madison, the Board
of Regents accept the letter of agreement with the
Encyclopaedia Britannica Educational Corporation
entitled "Staff Development Support Materials:
Mathematics in Context and DMP."
Revision to Mandatory Refundable Fee Policy
Resolution 6873: That, upon the recommendation of the President of
the University System, Section 1. Referendum
Language, of Regent Resolution 3764, as amended by
Regent Resolution 5732, be amended to provide
clarification of the intent of the Regents.
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Governor's 1995-97 Biennial Budget Proposals for UW System
Regent Gelatt summarized President Lyall's remarks regarding the impact
of the biennial budget proposals on the UW System. The budget proposal
recognizes the need to make permanent the Laboratory and Classroom
Modernization and General Computer Access funds so that institutions can
continue to update and replace obsolete instructional laboratory equipment
and modernize facilities; it supports the 1% special technology initiative
that will enable students system wide to have the same access to e-mail and
the Internet currently enjoyed by students at UW-Madison; it also recommends
$400,000 in one-time funding to provide for a modest start in distance
education.
Recommended reductions include:
