MINUTES OF THE MEETING OF
THE REGENTS OF THE UNIVERSITY OF NEW MEXICO
March 8, 2004
The Regents of the University of New Mexico met on Monday, March 8, 2004, in the Student Union Building Ballroom. A copy of the public notice is on file in the Office of the President.
Regents present:
James H. Koch, President Jack L. Fortner, Vice President
María Griego-Raby, Secretary/Treasurer
Sandra Begay-Campbell (via telephone)
Andrea L. Cook
John M. “Mel” Eaves
President and Vice Presidents present:
Louis Caldera, President
Brian Foster, Provost/Vice President for Academic Affairs
Phil Eaton, Vice President, Health Sciences Center
Julie Weaks Gutiérrez, Vice President, Business and Finance
Judy Jones, Vice President for Advancement
Eliseo Torres, Vice President for Student Affairs
Regents' Advisors present:
Edward DeSantis, President-Elect, Faculty Senate
Alan Morgan, President, Staff Council
Aaron Kugler, President, GPSA
Jennifer Onuska, President, ASUNM
Steve Bacchus, President, Alumni Association
Robert Goodman, Chair, UNM Foundation
Others in attendance:
Members of the administration, faculty, staff, students, the media, and others
Absent with notice given:
Regent Douglas Brown
Regent James Koch presided and called the meeting to order at 1:06 p.m.
EXECUTIVE SESSION
On February 20, 2004, the Regents met in closed session (duly noticed) to discuss issues related to the UNM Hospitals West Wing project pursuant to Section 10-15-1H (9), NMSA 1978 (public hospital strategic and long-range business plans), discussion of acquisition or disposal of real property pursuant to Section 10-15-1-H (8) and discussion of threatened or pending litigation pursuant to Section 10-14-1.H (7). Regents present at the meeting were Regents Begay-Campbell, Brown, Cook, Eaves, Fortner (via telephone), Griego-Raby and Koch. The matters discussed in the Executive Session were limited to those specified in the meeting notice.
ADOPTION OF AGENDA
Regent Fortner moved to adopt the agenda. Regent Griego-Raby seconded the motion. Voice vote was taken and Board members unanimously approved the agenda by a vote of 6-0.
APPROVAL OF SUMMARIZED MINUTES OF THE FEBRUARY 10, 2004 MEETING OF THE BOARD OF REGENTS
Regent Fortner moved for approval of the summarized minutes of the February 10, 2004 meeting of the Board of Regents. Regent Cook seconded the motion. The motion carried by a vote of 6-0.
PUBLIC INPUT
None.
ADMINISTRATIVE REPORT
President Louis Caldera congratulated the Women's Lobo Basketball team, along with Coach Flanagan, on their superb season in the Mountain West Conference. On March 4 the University community celebrated the Presidential Scholarship Program with a dinner that included 400 Presidential Scholars and scholarship sponsors. Sunday night, March 7, the New Mexico Symphony Orchestra and the UNM Department of Theatre and Dance collaborated on an outstanding performance of West Side Story. The President briefly discussed the Budget Summit, that will allow for a month long process to engage the university community in a dialogue of how the UNM budget works and what challenges the Uuniversity faces. On Wednesday, March 10, representatives from the University will meet with the New Mexico Congressional delegation in Washington, D.C. and along with the UNM Alumni Association co-sponsor a reception in honor of our Senators and Representatives.
COMMENTS FROM REGENTS' ADVISORS
Edward DeSantis, PhD, President-Elect, Faculty Senate
Dr. Edward DeSantis, President-Elect, Faculty Senate, reported on the February 18 visit to UNM of Dr. William G. Tierney, Wilbur-Kieffer Professor of Higher Education at USC. The Faculty Senate will have their College/School Deans' Evaluation form on-line shortly after the Budget Summit on April 1.
Alan Morgan, President, Staff Council
Alan Morgan, President, Staff Council, announced that the Staff Council Compensation Committee will co-sponsor an open forum with the UNM Retirees Association and Human Resources Department on the ERA pension plan. Ms. Evalynne Hunnemuller, Deputy Director of the New Mexico Educational Retirement System, will be the guest speaker on Tuesday, March 16. This event will be simulcast to the four branch campuses.
Aaron Kugler, President, GPSA
Aaron Kugler, President, GPSA, announced that the election for the Association's Council Chair will be April 3. Elections will be held April 12-15 for President. The annual GPSA recognition reception will be held on April 27 at 4:00 p.m.
Jennifer Onuska, President, ASUNM
Jennifer Onuska, President, ASUNM described LOBOLITION, an event held outside the SUB, offering students a chance to show their Lobo spirit, and support of the Lobo Basketball teams, by helping to demolish two terminally ill cars painted with our Mountain West competitors' logos. ASUNM helped lobby the New Mexico Legislature for Accessibility Services and El Centro de la Raza raising approximately $78,500 in allocations for the student service organizations. April 14 is the date for elections of new officers and Senators for the ASUNM.
Stephen Bacchus, President, UNM Alumni Association
Steve Bacchus, President, Alumni Association, reported that the February 26 Alumni Association Awards Dinner was a huge success. The Alumni Association will co-host a a reception in Washington, D.C. on March 10 to honor the New Mexico Congressional delegation. Washington area alumni and donors have been invited to attend. Star Scholars receptions will be held in several New Mexico towns through March and April to recognize the top 10% of the junior class from each area's high schools. Area alumni, legislators and key community leaders are invited to attend these receptions.
Robert Goodman, Chair, UNM Foundation
Robert Goodman, Chair, UNM Foundation, had no report.
COMMENTS FROM REGENTS
Regent Fortner congratulated Coach Rocky Long and his football team for their conduct in light of the recent allegations concerning the University of Colorado football team. Regent Fortner also congratulated Coach Ritchie McKay for recruiting quality students who also play basketball. He asked that everyone continue to support the team.
Commission on Higher Education ReporT
No report; the CHE had not met since the last Regents' meeting.
CONSIDERATION OF ADOPTION OF PROJECT LABOR AGREEMENT FOR UNM HOSPITALS WEST WING CONSTRUCTION
The UNM Regents took under consideration the adoption of a Project Labor Agreement (PLA) for the construction of the UNM Hospitals West Wing following a written request from the Building Trades Unions. At an executive session of the Regents pursuant to the Open Meetings Act exception for public hospital strategic planning on February 27, Regent Koch had appointed Regent Eaves to explore, with help from the appropriate UNM officers, what the pros and cons of such an agreement would be and then report to the Regents at this meeting. In addition, the Regents were provided with substantial amount of background material relating to the use of PLAs, their potential value and objections to them. A list of the material supplied to the members of the Board for their information is attached to these minutes as Exhibit 1.
At the open meeting, Regent Eaves described the process and individuals who were consulted concerning the PLA, including university administration, UNM Hospital representatives, University Counsel, and outside construction and labor counsel. Also offering written opinions on the PLA were the Associated General Contractors of New Mexico. Mr. Carl Uehlein of Morgan, Lewis & Bockius, LLP of Washington, D.C. also provided guidance and background concerning PLAs used by other entities around the country. He furnished a written report about the PLAs and the tentative draft to the Board of Regents, and the report is attached to these minutes as Exhibit 2. Regent Koch asked the Regents if they had any questions of Mr. Uehlein. Regent Eaves asked about the consideration that was given to local collective bargaining agreements between the crafts and the contractors in this area. Mr. Uehlein responded the working conditions and systems by the local contractors and the local building trades have been used for years, they're trade specific, there is no need or use for this project to rewrite them. Regent Fortner questioned concerning the violation of section 5.2 which includes a 90 day non—rehire clause asking if 90 days was sufficient. Mr. Uehlein commented that it is the norm had is rarely utilized. Regent Koch then asked Mr. Uehlein to explain how the PLA was put together as quickly as it was. He explained that it was done in a week of intensive discussion, but obviously some planning had gone on prior and some deep thought by the building trades in terms of their recognition that a project labor agreement is going to be somewhat different in how they deal on a project than in their usual local individual trade negotiations so that they were receptive to selling the concepts. Regent Koch also asked if benefits that had already been negotiated by our trade unions in the state continue with the unions. Mr. Uehlein responded that the benefits are in place and available to everybody who work under this project. The only way there would be a potential for increase in labor compensation costs would be a specific change in Davis Bacon Law. Regent Griego-Raby then stated “ while certainly there is a certain dollar amount, a certain cost that coincides with us acquiring additional comfort, as you put it earlier, with this PLA. And I would imagine that would come in two specific areas, we had talked about this in our executive meeting. One: additional labor costs, whatever that would be, as well as the administration, I think that would be specifically Jacobs Engineering. And I have requested at that meeting for us to disclose at this time what additional costs would come to the university, if this specific agreement was brought to us today, and I was assured at that time that we would be able to look at some sort of number. I don't know, Carl, if you have that number or if somebody else can provide that.” Mr. Uehlein responded that because of the establishment and the application of Davis Bacon, they aren't increased at all by the project labor agreement. Regent Griego-Raby asked Mr. McKernan is he knew what the answer was to her question. Mr. McKernan stated that “we've been analyzing it with our consultants Jacobs. To date they've not been able to discern what the project would cost with or without the PLA. They are still doing the cost estimates for the 100% drawings, so they haven't got to a point where they could make specific things. The prime component of the PLA was the labor costs, which is being suggested at Davis Bacon, which is the labor costs that we were going to have to pay regardless of whether we did a PLA or not. Finally, several members of various trade unions, contractors, and contracting associations then gave public input to the Regents, some noting their support for a PLA, and other opposing, with their reasons for their positions.”
Regent Eaves then moved to adopt a tentative Project Labor Agreement which had been negotiated, subject to review by the Board of Regents, with the Building Trades Union by Mr. Uehlein and representatives of the Regent and Hospital. Regent Fortner seconded. The tentative agreement had been provided to the Regents prior to the meeting for their review and consideration. Regent Eaves made a presentation on the value of the PLA to the Hospital West Wing Construction Project and there was discussion among Regents, and questions by them and Mr. Uehlein and others relating to the tentative Agreement and the general use of Project Labor Agreements. At approximately 3:00 p.m., Regent Koch called for a roll call vote. Regent Begay-Campbell: No (Regent Begay-Campbell had cast her vote at approximately 2:00 p.m. before she disconnected her telephone connection to the meeting. Regent Begay Campbell expressed her reasons for voting No as unnecessary risk to the University, the cost estimates changing several time, from a high percentage to maybe 50%, and possible litigation against such a PLA.) Regent Cook: Yes; Regent Fortner: Yes; Regent Koch: Yes; Regent Griego-Raby: No; Regent Eaves: Yes. The vote carried by a 4-2 vote. A copy of the Agreement as approved is with the University Counsel.
ACADEMIC/STUDENT AFFAIRS REGENTS' COMMITTEE
No report.
HEALTH SCIENCES REGENTS' COMMITTEE
Regent Jack Fortner, Chair, Health Sciences committee, presented information and background on the committee's recommended action item as follows:
Approval of Appointments to UNM Health Sciences Center Medical Staff
Regent Fortner noted that this action item was approved by the Clinical Operations Board and then approved by the Health Sciences Committee. Regent Fortner moved to approve the appointments to the UNM Health Sciences Center Medical Staff. Regent Griego-Raby seconded the motion. Motion carried by 4-0. Regent Eaves was out of the room and did not vote.
Information Items
Regent Fortner discussed a plan by the Cancer Research and Treatment Center to be designated as one of the nation's National Cancer Research Institutes. The process will include submission of an application followed by a site visit. Another concern discussed by the committee was the nursing shortage and what can be done to help our College of Nursing work towards a solution.
FINANCE AND FACILITIES REGENTS' COMMITTEE
Regent Mel Eaves, Chair, Finance & Facilities Committee, presented information and background on the committee's recommended action items as follows.
Surplus Property Disposition List Dated 2/20/04
Regent Eaves moved that the Board approve the Surplus Property Disposition list dated February 20, 2004. The items on the disposition list were certified by Bruce Cherrin, Director of Purchasing and University Services, as “worn-out, unusable or obsolete.” Regent Fortner seconded. The motion carried 5 – 0.
Approval of Tricore Lab 501(e) Restructure
Regent Eaves discussed the “Resolution of the Board of Regents, University of New Mexico, Authorizing Participation in Cooperative Hospital Services Corporation”. Currently, the University of New Mexico Hospitals is a member of Tricore Reference Laboratory along with certain nonprofit hospitals, including Presbyterian Healthcare Services and St. Vincent Hospital. This resolution would allow for the creation of an affiliated clinical laboratory corporation as a 501(e) cooperative hospital services corporation that would qualify for tax exemption in the same manner as an organization with 501 (c)(3) status as long as its membership is restricted to two or more tax-exempt government or nonprofit hospital patrons and its services are performed solely for those patrons. Regent Eaves moved to approve the Resolution subject to the following two amendments to the Draft Bylaws:
• Page 7, Article V, Section 2. (a)(i) should state “UNM Board of Regents shall appoint four (4) of the Appointed Directors.”
• Page 19, Article IX shall include wording to the effect that any person who shall serve as a Director, Officer, or employee of the Cooperative shall be entitled to defense costs advanced during the pendency of litigation. If the Corporation does advance these costs and it is later determined that the employee was guilty of willful misconduct or recklessness in violation of that person's duties that person will have to repay those costs to the Corporation.
Regent Griego-Raby seconded. The motion carried 5 – 0.
Capital Project Approval for New Utility Service for North Campus
Regent Eaves moved approval of a capital project to extend the underground utility service from the existing campus system to present and future building sites on the north campus. This approval is subject to President Caldera reviewing the UNM Master Plan, the Health Science Center Facilities Master Plan, and the UNM Master Utility Plan and making necessary and appropriate changes. These plans would be forwarded to the Board of Regents for consideration and revision. Regent Fortner seconded. The motion carried by a vote of 5-0.
Capital Project Approval for Expansion and Remodel of 915 Vassar, NE - HSC
Regent Eaves moved approval for construction of an addition and remodel of 915 Vassar, NE. Regent Fortner seconded. The motion carried by a vote of 5-0.
Sale of Real Property: 1.89 Acres at SEC Golf Course :& Marna Lynn NW
Regent Eaves moved approval of the sale of approximately 1.89 gross acres of vacant land to Ameri-Contractors. The sale price is $315,000, or about $4.8 per square foot (net). Regent Fortner seconded. The funds from the sale would go into an endowment for the Biology department. The motion carried by a vote of 5-0.
Information Items
Regent Eaves reported on the following information items: an update of UNM Hospitals upgrading and expanding the existing server capacity to support staff. Regent Eaves asked VP Weaks Gutierrez to report on final information concerning appropriations during the 2004 Legislative Session.
AD HOC DEVELOPMENT COMMITTEE
No report.
STATE LAND OFFICE PROPERTY EXCHANGE – STATUS REPORT
Kim Murphy, Director of Real Estate, reported that there has been little substantive progress made during the past month.
ADOPTION OF POLICY CONCERNING PUBLIC NOTICE OF REGENTS' MEETINGS
Pursuant to the New Mexico Open Meetings Act, Section 10-15-1, NMSA 1978, the Board of Regents must annually take action regarding reasonable notice of Board meetings to the public. Nick Estes, University Counsel, explained that by this action the Board would reaffirm its open meetings notice contained in the Regents' Policy Manual Section 1.3. Regent Fortner moved re-adoption of Regents' Policy 1.3. Regent Griego-Raby seconded. The motion carried by a vote of 5-0.
ELECTION OF OFFICERS TO THE BOARD
Regent Eaves moved to accept the same slate of officers that were currently in office. That slate is President, Regent Koch; Vice-President, Regent Fortner; Secretary/Treasurer, Regent Griego-Raby. Regent Cook seconded. The motion carried by a vote of 5-0.
EXECUTIVE SESSION
Regent Greigo-Raby moved to adjourn the open meeting and go into Executive Session to review the regular quarterly report from the Internal Audit director, discussion of threatened or pending litigation and discussion of possible degree candidates. A voice vote was taken. Motion carried by a vote of 5-0. The matters discussed in the Executive Session were limited to those specified in the motion and previous meeting notice.
ADJOURNMENT
Regent Griego-Raby moved to adjourn. Regent Eaves seconded. Voice vote was taken and Board members unanimously approved. Motion carried.
| ADJOURNMENT | APPROVED: |
| ATTEST: | _________________________________________ President |
| _____________________________________ Secretary/Treasurer |