MINUTES OF REGULAR MEETING OF THE

UNIVERSITY OF HAWAI‘I BOARD OF REGENTS

October 18, 2002


I. CALL TO ORDER


The monthly meeting of the Board of Regents was called to order by Chairperson Bert A. Kobayashi on Friday, October 18, 2002 at 8:30 a.m. in the Tamarind Banquet Room, 2nd floor, ‘Ohelo Building, Kapi‘olani Community College.

Attendance

Present were Regents Everett R. Dowling, Michael J. Hartley, Allan K. Ikawa, Patricia Y. Lee, Ah Quon McElrath, Duane K. Kurisu, Walter Nunokawa, Capsun M. Poe, Kathleen K.S.L. Thurston, and Myron A. Yamasato; President Evan S. Dobelle; Executive Administrator and Secretary of the Board David Iha; and Executive Assistant Carl H. Makino. Regent Charles K. Kawakami was excused.

Also present were Dr. Joyce Tsunoda, Senior Vice President and Chancellor for Community Colleges; Dr. Deane Neubauer, Interim Vice President for Academic Affairs; Mr. James R. W. Sloane, Vice President for Administration and Chief Financial Officer; Mr. Paul Costello, Vice President for External Affairs and University Relations; Dr. Doris Ching, Vice President for Student Affairs; Dr. Colleen Sathre, Vice President for Planning and Policy; Ms. Ruth Tsujimura, Associate Vice President for Legal Affairs and University Deputy General Counsel; Mr. Allan Ah San, Associate Vice President for Administration; Dr. Peter Englert, Chancellor; Dr. Karl Kim, Interim Vice Chancellor for Academic Affairs; and Mr. Rodney Sakaguchi, Interim Vice Chancellor for Administration, University of Hawai‘i at Manoa ; Dr. Leon Richards, Interim Provost, Kapi‘olani Community College; Dr. Christopher Lu, Vice Chancellor, UH-Hilo; Dr. William A. Pearman, Chancellor, UH-West O‘ahu; Mr. Michael T. Unebasami, Vice Chancellor for Administrative Affairs; Ms. Karla Jones, Director, Career and Technical Education; Mr. J. N. Musto, Executive Director, University of Hawai‘i Professional Assembly; Mr. Prescott Stewart, Executive Assistant to the President; and others.

II. APPROVAL OF MINUTES


Upon motion by Regent Thurston and second by Regent Ikawa, the Board approved the minutes of its regular meeting held on September 13, 2002, as circulated.



III. ITEMS FROM PRESIDENT'S MEMORANDUM NO. 13
RECOMMENDATIONS FOR ACTION AND
GENERAL INFORMATION


Waiver of the Requirement for National Recruitment for Vice Chancellor for Academic Affairs, University of Hawai‘i at Manoa

 Agenda Item A-1, “Waiver of the Requirement for National Recruitment for Vice Chancellor for Academic Affairs, University of Hawai‘i at Manoa” was withdrawn at the request of President Dobelle.


Proposed Amendments to Chapter 20-12, Hawai‘i Administrative Rules, University of Hawai‘i at Manoa Parking Regulations

Chancellor Englert requested that the Board authorize public hearings to be held on proposed amendments to Chapter 20-12, Hawai‘i Administrative Rules, governing parking regulations and rates at the University of Hawai‘i at Manoa (UH-Manoa).

The proposed amendments are required to meet future budget requirements and to maintain UH-Manoa Parking Operations’ self-sustaining status. The amendments would increase parking permit rates each year over a five-year period. Employee parking permit rates would increase to $500 annually or by approximately 19 percent the first year and 7 percent the next four years. Executive appointments would pay an additional fee in the amount of 25 percent of established employee parking rates. The charge for a reserved parking space for executive appointments will remain as an additional fee of 50 percent of the established employee parking rates. Student parking permit rates would increase 2 percent each year for five years. In addition, the annual permit rates would be divided equally among the three semesters (fall, spring and summer).

Employee parking rates would be generally consistent with comparable employee parking in the Honolulu area. The rates for students are generally comparable to rates charged students at similar university campuses.

Parking rates were last amended in 1993 with rate increases spread over a five-year period up until 1998. The current rates, however, will not generate sufficient revenues to meet projected future operating requirements which include:

  1. Parking structure repairs: repair the concrete support for railings; waterproof fifth floor parking levels; reduce excess stress on pedestrian bridge supports; repair concrete damage from water seepage; and repair waterproof membrane in planter areas.

  2. Existing fire alarm systems in both lower campus parking structures need to be removed and replaced with a new unified system.

  3. A new video surveillance system to improve security for users and their property.

  4. Entry kiosks to the campus will be renovated, and roadway improvements will be planned to improve traffic flow.

Parking Operations plans to construct a 273-stall parking structure on the existing Hawaiian Studies gravel parking area. Planning and design is nearing completion and construction costs are projected at $3.8 million. This structure will provide additional parking for commuting students and dormitory students.

Funding for alternative transportation programs and improvements has been included in Parking Operations’ budget projections. These programs are intended to encourage the use of alternative modes of transportation and include a bus pass program currently in the planning stage and more secure bicycle storage facilities.

Inflationary factors have increased operating expenditures for personnel costs and service contracts. Approved pay raises for employees have increased personnel costs. Service contract costs for shuttle bus services and contracted parking personnel services have also increased. Also, the total cost of Special Events traffic control has increased due to the required use of additional special duty Honolulu Police Department officers to control traffic prior to major events.

Recently, the State restructured the payment schedule for the Series CS General Obligation Bonds which were used to finance the existing parking structure. The impact on parking operations will be higher debt service payments for FY 2003, FY2004, FY 2005, and FY 2006 from $646,822 to $1,004,000 annually.

Regent Kurisu moved to authorize public hearings on proposed amendments to Chapter 20-12, Hawai‘i Administrative Rules, governing University of Hawai‘i at Manoa parking regulations, as presented in President’s Memorandum No. 13 (Agenda), Item A-2, dated October 18, 2002. Regent Thurston seconded the motion which was unanimously carried.

Transfer of Endowment Funds to a Reserve Account
Vice President Sloane requested that the Board approve the transfer of $5 million from unrestricted funds of the University’s Endowment Fund to a reserve account to be invested in a stable and fixed market for the purpose of assuring that sufficient funds will be available in FY 2003 and 2004 for scholarships and other commitments of the endowment fund as stipulated in Board policy.

Pursuant to Board policy, the University makes payouts from earned income of the unrestricted fund of the Endowment Fund. The payout amount is based on the market value of the unrestricted fund as of June 30 of the applicable year. This payout is a known expenditure for FY 2003 and 2004. The purpose of this request is to mitigate payout volatility for known and existing obligations caused by the continuing uncertainties in financial markets and the budgetary risks they present to University programs. The recommended amount of $5 million would be transferred out of the unrestricted fund to more stable and secure markets.

The Board’s Endowment Fund third party monitor, Mr. Thomas Sakai, was consulted and concurs with this recommendation. Vice President Sloane will work with the third party monitor in determining a prudent investment strategy for the transferred funds. This strategy will be presented to the Regents’ Committee on Finance and Facilities for review and consultation in accordance with the Board’s fiduciary responsibility.

Regent Kurisu moved to approve the transfer of $5 million from unrestricted funds of the Endowment Fund to a reserve account for the purpose of assuring that sufficient funds will be available in FY 2003 and 2004 for scholarships and other commitments of the Endowment Fund as stipulated in Board policy and as presented in President’s Memorandum No. 13 (Agenda), Item A-3, dated October 18, 2002. Regent Lee seconded the motion. Regent Kurisu then moved to amend his motion to add a Board review of this action a year from this approval date. The motion to amend was seconded by Regent Thurston. Upon call the main motion was carried unanimously as amended.


2003 Legislative Proposals and Legislative Package

Interim Vice President Neubauer requested the Board to approve the submittal of the legislative proposals to the 2003 State Legislature.

The proposed legislative bills to address identified needs are as follows:
UOH-01 (03) Relating to University Projects proposes to grant the Board of Regents flexibility to construct and maintain University projects. The University of Hawai‘i is proposing legislation to repeal and re-enact in its entirety, Chapter 306, HRS. The re-enactment of Chapter 306 will permit the Board of Regents to issue revenues bonds without approval of the Governor and State Department of Budget and Finance and would be consistent with the University’s autonomy.

UOH-02 (03) Relating to Claims Against the University of Hawai‘i would provide an appropriation for the payment of settlements of claims against the University, for judgments and for other miscellaneous payments as provided by Chapter 304, HRS.

UOH-03 (03) Relating to the University of Hawai‘i Risk Management Special Fund proposes to establish in Chapter 304, HRS, a Risk Management Special Fund. The University of Hawai‘i is proposing legislation to establish in Chapter 304, HRS, a risk management special fund. This proposal serves as a vehicle by which the University of Hawai‘i can provide all costs and expenses associated with the administration of a risk management program.

UOH-04 (03) Relating to the Employees Retirement System (ERS) proposes to safeguard all retirees of the University of Hawai‘i that there will be no reduction or adjustment of retirement benefits.

  1. Prevent benefits reduction of UH retirees based on ERS “discovery” of aggregation of part-time appointments

  2. Preserve retirement benefits for current employees with multiple UH appointments

  3. Provide retirement benefits for future employees with multiple UH appointments

  4. Prevent legal actions against UH for perceived administrative errors and misrepresentations regarding eligibility for retirement benefits

  5. Clarify statutory provisions regarding part-time employment and retirement eligibility

UOH-05(03) Relating to Reciprocal Beneficiaries proposes to allow certain rights and benefits which are presently available to married couples to two (2) individuals who are currently prohibited from marrying each other. Provide health benefits coverage for reciprocal beneficiaries, similar to domestic partnership coverage. It would allow unmarried couples access to health benefits.

UOH-06 (03) Relating to Authorizing the Establishment of a Separate Civil Service System, proposes to authorize the University of Hawai‘i to establish a civil service system as set forth in Chapter 76, HRS, for blue collar and white collar employees of the University; and to include the University in the definition of “justification” for collective bargaining purposes as it relates to civil service personnel.

  1. Allow Board of Regents to have authority and full control over all of its human resources

  2. Currently, civil service employees in the University of Hawai‘i system are under the control of the Governor

  3. Recognize University of Hawai‘i as a separate jurisdiction with equal status and authority as The Judiciary and the Hawai‘i Health Systems Corporation

UOH-07 (03) Relating to Human Resources would further enhance the University of Hawai‘i’s ability to more efficiently and effectively organize and operate its programs and services. Such that whenever positions are identified for abolishment, due to the modernization of business practices, the position count and monies shall remain with the University of Hawai‘i. This bill would exempt the University of Hawai‘i from the requirement of reducing the position count and dollars should separation incentives be utilized by employees.

UOH-08 (03) Relating to the University of Hawai‘i proposes to remove the statutory limitation which has prevented the University from implementing an optional retirement plan and to clarify that part-time and temporary University employees are not eligible for membership in the University’s optional retirement plan. The University is proposing legislation to remove the statutory limitation which has prevented the University from implementing an optional retirement plan and to clarify that part-time and temporary University employees are not eligible for membership in the University’s optional retirement plan.

UOH-09 Relating to Agribusiness Incubators provides an appropriation of $500,000 to begin the creation, primarily by hiring staff, of agribusiness incubators throughout the state. The College of Tropical Agriculture and Human Resources (CTAHR) proposes a bill seeking an appropriation of $500,000 to begin hiring staff for and developing agribusiness incubators throughout Hawai‘i.

Regent Dowling moved to approve the proposed legislative package and authorize the Administration to submit the proposals to the 2003 State Legislature, as presented in President’s Memorandum No. 13 (Agenda), Item A-4, dated October 18, 2002. Regent Lee seconded the motion which was unanimously carried.

Regent McElrath expressed her concerns for individuals who are less than full-time employees. She requested further discussions with the legal counsel as to the eligibility of such individuals for membership in a health plan. President Dobelle assured that the Administration will respond to Regent McElrath’s request.

Associate in Applied Science Degree in Opticianry at Leeward Community College

Agenda Item A-5, “Associate in Applied Science Degree in Opticianry at Leeward Community College” was deferred at the request of President Dobelle.

Establishment of a Master in Law (LLM) Degree for Foreign Law Professionals, William S. Richardson School of Law, Manoa Campus
Chancellor Englert requested that the Board approve the establishment of a Master in Law (LLM) degree program for foreign law professionals in the William S. Richardson School of Law on the Manoa campus.

The proposed LLM (Legum Magister) degree will address the growing interest of foreign-trained law professionals in learning more about the U.S. legal system. The mission of the proposed program is to enhance the international reputation of the University of Hawai‘i law school and to enrich the international experience for the faculty, staff, and students. A secondary goal is to increase tuition revenue.

In recent years, there has been a great increase in the number of LLM programs at American law schools. This reflects the growing complexity of U. S. and international law and, thus, a concomitant growing interest in U. S. lawyers to specialize in certain areas such as environmental law, intellectual property, tax, or international trade. LLM programs designed to provide foreign-trained lawyers with a general introduction to American law are the fastest growing LLM programs in the nation.

Nationally, law schools have been interested in starting such programs for several reasons:

  1. They are an excellent way to globalize an American law school through interaction with foreign-trained law professionals.

  2. A high-quality LLM program can enhance the national and international reputation of a law school.

  3. The programs are an excellent new source of revenue. They are relatively inexpensive to operate since most of the courses typically required are pre-existing law courses.

The LLM is typically a two-semester, nine-month course of study. Enrollment will be limited to a maximum of 15 students. The principal requirement for the LLM degree would be the successful completion of 24 credits (12 per semester) of law study. It is anticipated that the LLM will be fully self-supporting and will generate additional revenues for the University.

The American Bar Association (ABA) requires that a full-time law faculty member be designated as the director of the program. One of the existing faculty members will serve as director. This faculty member would receive a 1/4 course reduction or a summer stipend to carry out his or her administrative duties. In addition, a full-time assistant director (a student services specialist) will be hired to handle the day-to-day administrative aspects of the program.

The degree has been reviewed by the ABA and is recommended for approval by the Manoa Faculty Senate. This degree program will not require any additional resources or new funding from the University. Costs for the assistant director will be covered by tuition revenue. The curriculum will be based upon existing courses.

Regent Nunokawa moved to establish a Master in Law (LLM) degree program for foreign law professionals in the William S. Richardson School of Law, University of Hawai‘i at Manoa, effective Fall 2003, subject to the Regents’ policy on provisional academic programs, as presented in President’s Memorandum No. 13 (Agenda), Item A-6, dated October 18, 2002. Regent Poe seconded the motion which was unanimously carried.

Regent Lee stated that this program will bring visibility to the Law School and the University of Hawai‘i and will also serve as a vehicle for promoting international relations.

Gifts, Grants, and Contracts

Interim Vice President Neubauer reported that during the time period of August 16, 2002 to September 15, 2002, the University of Hawai‘i System received extramural awards with a total value of $29,392,14, and the University of Hawai‘i at Hilo received extramural awards with a total value of $601,124.

Regent Kurisu moved to accept with thanks the gifts and grants and ratify the actions of the Administration in executing the necessary contracts, as presented in President’s Memorandum No. 13 (Agenda), Item A7, dated October 18, 2002. Regent Lee seconded the motion which was unanimously carried.

Regent McElrath inquired if the University of Hawai‘i had any research information suppressed due to the fight against terrorism. Interim Vice President Neubauer responded that the scientific and academic communities see this potentially as having a chilling effect on academic freedom and the freedom of research and that national associations are attuned to this. He added that the Board of Regents will be kept informed on this issue.

Appointments, Changes in Appointments, Leaves of Absence, Promotions, Tenure, Waivers of Minimum Qualifications, Emeritus Titles, Shortening of Probationary Periods, Salary Adjustments, Position Actions, Classifications and Pricing

President Dobelle requested to amend the personnel agenda to include the granting of tenure to Dr. Todd Reed in the Department of Electrical Engineering, College of Engineering at Manoa.

Regent Lee moved to amend the personnel agenda as requested. Regent Ikawa seconded the motion which was unanimously carried.

President Dobelle recommended the appointments, changes in appointments, leaves of absence, promotions, tenure, waivers of minimum qualifications, emeritus titles, shortening of probationary periods, salary adjustments, position actions, classification and pricing as follows:

UNIVERSITY OF HAWAI`I, SYSTEM

Executive

AH SAN, ALLAN Y. S.
Director of Capital Improvement
Office of the President
Appointment
July 19, 2002 - December 31, 2003

UNIVERSITY OF HAWAI`I AT MANOA

Executive

ENGLERT, PETER A. J.
Chancellor
Office of the Chancellor, UHM
Employment Agreement

FRAZIER, HERMAN
Athletic Director
Intercollegiate Athletics
Employment Agreement

KIM, KARL E.
Interim Vice Chancellor for Academic Affairs
Office of the Chancellor, UHM
Reappointment
July 1, 2002 - June 30, 2003,
unless sooner relieved

LAWS, EDWARD
Interim Vice Chancellor for Research
and Graduate Education
Office of the Chancellor, UHM
Reappointment
July 1, 2002 - June 30, 2003,
unless sooner relieved


O’MEALY, JOSEPH
Interim Dean
College of Languages, Linguistics
and Literature
Reappointment
September 1, 2002 - August 31, 2003,
unless sooner relieved

RAYNER, MARTIN D.
Interim Director
Pacific Biomedical Research Center
Reappointment
November 1, 2002 - December 31, 2003,
unless sooner relieved

SAKAGUCHI, RODNEY
Interim Vice Chancellor for Administration,
Finance and Operations
Office of the Chancellor, UHM
Reappointment
July 1, 2002 - June 30, 2003,
unless sooner relieved.

UNIVERSITY OF HAWAI‘I AT HILO
Classification 5 (Professors and Equivalent)

LU, CHRISTOPHER D.
Professor, I5
Animal Science
College of Agriculture, Forestry and Natural
Resources Management
Award Tenure
Upon approval by the Board

Emeritus

SUGANO, MIYAKO
Professor, I4
English
College of Arts and Sciences
Waiver of Rank
Upon approval by the Board

Regent Lee moved to approve the personnel actions as amended and presented in President’s Memorandum No. 13 (Agenda), Item B-1, dated October 18, 2002. Regent Ikawa seconded the motion which was unanimously carried.

Resignations and Retirements of Board of Regents’ Appointees and Civil Service Employees

 The list of resignations and retirements of Board of Regents’ appointees and retirements of Civil Service employees was presented for information. (The list of resignations and retirements is presented in President’s Memorandum No. 13 (Agenda), Items C-1 and C-2, dated October 18, 2002.)


IV. ORAL REPORT OF EXECUTIVE OFFICER

President Dobelle assured that the biennial budget would be presented to the Board in November. The budget will have two strategic positions to it:

  1. Increase in salaries done in consultation with the Regents, with the unions, and the new Governor; and

  2. The strategic positioning of the campuses will be based on the elements of the strategic plan.

President Dobelle introduced Dr. Leon Richards, Acting Provost at Kapi‘olani Community College (KCC). President Dobelle stated that KCC is not only one of the strengths of the System in the community college world, but is recognized nationally in many ways, and internationally as one of the outstanding two-year colleges in America. KCC was recently cited as one of the top 25 liberal arts programs in the country and is only one of two community colleges to be cited.


Provost Richards said that in its efforts to become more student-centered and student-focused, KCC is piloting two innovations: 1) A resource center and 2) enhanced first-year experience. He introduced Mona Lee, Dean of Students who explained what KCC is doing in those two areas.

Dean Lee stated that in February, 2002, Kapi‘olani Community College launched a pilot project called “Creating a High Touch/High Tech Culture Shift in Student Services.” In August, 2002, KCC opened, redesigned and renovated the Kekaulike Information and Services Center, which was designed using the branch bank model, and will serve as a one-stop center for the students - admissions, financial aid, orientation, registration, academic advising, and academic tracking. KCC’s goal is to offer 70 percent of these services on the web. A first-time ever, large-scale orientation and campus welcome was held in August, 2002, with about 400 students and their families attending. She acknowledged all of the campus and System people who helped in achieving the vision for Kapi‘olani Community College. Provost Richards also personally thanked the faculty, staff, and students of KCC.


V. NEW OR OTHER BUSINESS


Report of the Subcommittee to Review Board Policies

Regent Lee, Chairperson of the Regent’s subcommittee to review board policies, reported that at the Board’s March 15, 2002 meeting, then Chairman Ikawa appointed Regents Dowling, Kawakami, Kobayashi, Kurisu, McElrath and herself to serve on a subcommittee to review the Board’s policies. The purpose for this subcommittee was to review all the Board’s policies in light of the University’s autonomy and to add clarity as well as to update the current Board policies following the separation of the President and Manoa Chancellor’s office. Several major as well as housekeeping amendments were presented.

Chapter I: General Provisions

Aside from some housekeeping amendments, the only significant change is the addition of a definition for consultation with the Board. This amendment is intended to assist the Board and the administration in determining a preferred course of action when handling certain administrative matters. Amendments to this chapter would also clarify that the interpretation of Board policies rests with the Board.

Chapter II: Administration

The amendments in this chapter are mainly housekeeping to reflect the changes in administrative titles occurring over time and as a result of the reorganization separating the President from the Manoa Chancellor.

Chapter III: Organization

The significant amendment in this section clarifies that the Board must be consulted in the case of reorganization proposals in order to determine ahead of time whether such reorganizations require Board approval. Currently, such determinations are left to the respective campuses which has resulted in inconsistencies in handling unit reorganizations. The amendments will hopefully correct this situation.

Chapter IV: Planning
Having been adopted in the 1970s, this chapter will undergo significant changes since the University no longer is experiencing a growth problem. Consequently, the policy on controlled growth has been amended to Mission and Purpose of the University. The narrative sections attempt to lend clarity to the mission and purpose of the respective units of the University of Hawai‘i.

Chapter V: Academic Affairs

In addition to housekeeping amendments, this chapter was amended to eliminate obsolete policies and to update current policies. The section on new programs clarifies that all proposals to establish new programs must be consistent with the institution’s mission and high on the list of academic priorities as enunciated in its academic plan. The section on admissions has been amended to implement the Board’s intent to provide for differential admissions policies on system campuses and to communicate the University’s expectations to prospective students. No changes were made to the section on research aside from housekeeping and updating of administrative titles and units.

Chapter VI: Tuition and Scholarships

No significant amendments were made to this section aside from housekeeping and to clarify existing policies and procedures.

Chapter VII: Student Affairs
No significant amendments were made to this section aside from housekeeping and to clarify existing policies and procedures.

Chapter VIII: Business and Finance
The amendments to this chapter were intended to clarify the Board’s authority in approving contracts and settlements. A major inclusion are the guidelines for probation/ termination of investment managers as suggested by the Board’s third party monitor. These guidelines establish procedures for review and monitoring of the investment managers of the Endowment Funds.

Chapter IX: Personnel
The significant changes in this chapter occur primarily in the Executive/Managerial section where further clarity was needed on the appointment, assignment, and compensation of executive personnel. The amendments further clarify that all actions pertaining to executive employees as well as exceptions to policies requires the prior approval of the Board.

Chapter X: Land and Physical Facilities
Amendments in this chapter are primarily housekeeping due to title changes. The amendments also clarify that in the acquisition and conveyance of real property the Board’s prior approval is required when such acquisition will have an impact on a program, gender controversy, or require changes in Board policy.

Chapter XI: Miscellaneous

The only amendment to this chapter clarifies that in granting permission to sell at the University that a proper and fair bidding procedure be followed.

Regent Lee expressed the Subcommittee’s appreciation to all of the members of the Administration who provided their knowledge and assistance in reviewing the Board’s policies and recommending the needed amendments. She stated that the Subcommittee recommended the adoption of the proposed amendments to the Board’s policies, adding that in a few cases, the amendments will need further pagination and reformatting which will occur once the Board approves the amendments.

She asked that the Committee on Review of Board Policies, having duly completed and reported on its charge be dismissed in accordance with HRS.

Regent Lee moved to approve the recorded amendments to the Board policies. Regent Ikawa seconded the motion which was unanimously carried. Chairperson Kobayashi thanked Regent Lee and the Subcommittee members for their efforts and dismissed the Subcommittee.


VI. ANNOUNCEMENT


Next Meeting

Chairperson Kobayashi thanked Acting Provost Leon Richards and the faculty, staff and students of Kapi‘olani Community College for hosting the meeting and for the breakfast.

Chairperson Kobayashi announced that the next meeting would be held on November 22, 2002 at 8:30 a.m. at Kaua‘i Community College.


VII. ADJOURNMENT


There being no further business before the Board, the meeting was adjourned at 9:35 a.m..

Respectfully submitted,



David Iha, Executive Administrator and Secretary of the Board of Regents