BOARD OF REGENTS

TABLE OF CONTENTS

Minutes of February 16, 2006.................................................................................... 1-18

MINUTES

Thursday, February 16, 2006, 8:00 p.m.

Holiday Inn, The Meeting Room

3825 E. Main Street

Weatherford, Oklahoma

I. ANNOUNCEMENT OF FILING MEETING NOTICE AND POSTING OF THE AGENDA IN ACCORDANCE WITH THE OPEN MEETING ACT

The Board of Regents of Oklahoma Colleges met in special session at 8:10 p.m., February 16, 2006, at the Holiday Inn, The Meeting Room, 3825 E. Main Street, Weatherford, Oklahoma. Notice of the meeting had been properly filed with the Secretary of State, February 13, 2006, and a copy of the Agenda posted by 5:00 p.m., February 15, 2006 in compliance with the Open Meeting Act.

II. CALL TO ORDER AND REGENTS’ ROLL CALL

Chair Holloway called the meeting to order. Roll call established the presence of a quorum with six Regents present.

Ann Holloway, Chair, Position 7

Mark Stansberry, Vice Chair, Position 8

Joe Anna Hibler, Regent, Position 3

Jan Gordon, Regent, Position 4

Regent Thompson, Position 5

Richard Ryerson, Regent, Position 6

II. CALL TO ORDER AND REGENTS’ ROLL CALL (Continued)

R. #199 – EXCUSE ABSENT REGENTS

Regent Stansberry made the motion, seconded by Regent Hibler, to excuse Regents Steve Poag, Position 1, Belva Howard, Position 2, and Sandy Garrett, Position 9.

Voting for the motion: Regents Stansberry, Hibler, Gordon, Thompson, Ryerson, Holloway

Voting against the motion: None

GUESTS

Steve Kelley, Legislative Liaison, Board of Regents of Oklahoma Colleges,

Oklahoma City, Oklahoma

Neal Weaver, Vice President for University Relations, Northeastern State

University, Tahlequah, Oklahoma

Kim Cherry, Vice President for Administration, Northeastern State University,

Tahlequah, Oklahoma

OTHERS PRESENT

University Presidents

Bill Cole, President, East Central University, Ada, Oklahoma

Larry Williams, President, Northeastern State University, Tahlequah, Oklahoma

Janet Cunningham, Executive Vice President, representing President Paul

Beran, Northwestern Oklahoma State University, Alva, Oklahoma

Glen Johnson, President, Southeastern Oklahoma State University, Durant,

Oklahoma

John Hays, President, Southwestern Oklahoma State University, Weatherford,

Oklahoma

Roger Webb, President, University of Central Oklahoma, Edmond, Oklahoma

Board Administrative Staff

Sheridan McCaffree, Executive Director

Pat Shiflett, Executive Assistant

The order of the agenda changed to Item V.

V. CONSENT DOCKET

Regent Hibler made the motion, seconded by Regent Gordon, to approve the following items listed on the consent docket, with the exception of item 2, which was withdrawn by Northwestern Oklahoma State University:

Voting for the motion: Regents Hibler, Gordon, Thompson, Ryerson, Stansberry, Holloway

Voting against the motion: None

A. MINUTES OF PREVIOUS MEETING

R. #200– MINUTES OF JANUARY 20, 2006

B. ACADEMIC AFFAIRS COMMITTEE REPORT - Regent Joe Anna Hibler

1. R. #201 - EAST CENTRAL UNIVERSITY

Program requirement change to the existing Bachelor of Science in Physics degree concentration and proposes an additional modification to the Bachelor of Science in Physics degree to add a new concentration in Medical Physics.

2. WITHDRAWN

NORTHWESTERN OKLAHOMA STATE UNIVERSITY

Change in function to offer Associate of Applied Science Degree. The issues addressed in the proposal are at the request of the Oklahoma State Regents for Higher Education.

3. R. #202 - SOUTHWESTERN OKLAHOMA STATE UNIVERSITY

· Action taken by the National Association of Schools of Music relative to the accreditation of the music programs that are offered at SWOSU.

· New Program Proposal for a Bachelor of Arts in Spanish.

· New Program Proposal to offer a minor in Economics.

V. CONSENT DOCKET (Continued)

B. ACADEMIC AFFAIRS COMMITTEE REPORT

3. R. #202

· Program Modification Request for an option name change, an option addition and program requirement changes for the Bachelor of Music program at SWOSU.

VI. REPORT OF BOARD COMMITTEE PROCEEDINGS

A. BUILDING COMMITTEE REPORT – Chair Richard Ryerson

1. Deferred Maintenance Reports.

2. Bonded Indebtedness Reports.

Each university submitted updated deferred maintenance and bonded indebtedness reports.

Regent Ryerson made the motion, seconded by Regent Gordon, to approve the following building items:

3. Northwestern Oklahoma State University

R. #203 – LEASE AGREEMENT – WOODWARD CAMPUS

Finalize the lease agreement with the Regents for the Oklahoma State University and Agricultural and Mechanical Colleges for the Woodward Campus of Northwestern Oklahoma State University.

4. Southeastern Oklahoma State University

R. #204 – PROPERTY PURCHASE

Purchase the property located at 1335 North 5^th Street, Durant, Oklahoma (current location of Thompson’s Bookstore) for $250,000. Purchase will be seller financed for a term of 5 years at 6% interest. (Section 13/New College 600/650)

VI. REPORT OF BOARD COMMITTEE PROCEEDINGS (Continued)

A. BUILDING COMMITTEE REPORT

5. Northeastern State University

a. Broken Arrow Phase I - Project #4850050

1) R. #205 – ARCHITECT – BROKEN ARROW

PHASE I

Retain Ed Bates as the architect to complete Phase I of the Broken Arrow campus.

2) R. #206 – CONSTRUCTION MANAGER – BROKEN ARROW PHASE I

Retain Oakridge as the Construction Manager for Phase I of the Broken Arrow campus. The Guaranteed Maximum Price will be determined as project needs are identified.

This project will be funded through the Statewide Higher Education Bond Issue of 2005. These funds will allow us to complete the auditorium, office space, banquet facilities and food service facilities in Building A, classroom and faculty office space in Building B, and rehab areas located in Phase I which will be moving to the new facilities.

b. Broken Arrow Phase II - Project #4850057

1) R. #207 – SCIENCE LAB BUILDING – BROKEN ARROW PHASE II

Bid and award the fixed casework for the Science Lab Building for the approximate cost of $1,100,000 and furniture for entire project at an approximate cost of $1,500,000. (Statewide Higher Education Bond Issue of 2005 and E&G funds)

VI. REPORT OF BOARD COMMITTEE PROCEEDINGS (Continued)

A. BUILDING COMMITTEE REPORT

5. Northeastern State University

b. Broken Arrow Phase II - Project #4850057

2) R. #208 – GUARANTEED MAXIMUM PRICE OAKRIDGE – BROKEN ARROW PHASE II

Increase the Guaranteed Maximum Price negotiated in the contract with Oakridge from $24,225,000 to $24,950,992, an increase of $725,992 (Statewide Higher Education Bond Issue of 2005 and E&G funds)

The increase covers construction costs and construction manager’s fees for Phase II including the General Classroom building, Science Lab building, Library/Classroom building, and the Annex building that connects Phase 1 and II.

c. R. #209 - FOOTBALL STADIUM REPAIRS AND RENOVATION - PROJECT #4850064

Bid and award repairs to the Stadium Parking lot at an approximate cost of $375,000. (Facility Fee funds)

d. R. #210 - INDOOR ATHLETIC FACILITY

PROJECT #4850065

Acceptance of the Redman Athletic Indoor Practice Facility transfer from the Northeastern State University Foundation. As approved at the April 23, 2004 meeting, the Board authorized the Foundation to build this facility on University property funded by private donations received for that expressed intent.

VI. REPORT OF BOARD COMMITTEE PROCEEDINGS (Continued)

A. BUILDING COMMITTEE REPORT

6. Southwestern Oklahoma State University

a. R. #211 – ROOFTOP LEASE – SOUTHWEST PCS PROPERTIES

Enter into five-year term rooftop lease with Southwest PCS Properties, LLC. The Board counsel has reviewed this lease and a copy has been provided for your consideration.

b. R. #212 - FINE ARTS IMPROVEMENTS

PROJECT #6650051

Design, bid, award, and construct a Black Box Theater. This project previously approved by the Board as part of the Higher Education Bond Issue of 2005. The current estimate for this project is approximately $1,700,000. (Statewide Higher Education Bond Issue of 2005)

c. R. #213 - EQUIPMENT AND ADA IMPROVEMENTS

PROJECT #6650041

Design, bid, award, and construct an elevator for the Administration Building. The estimated cost for this project is $150,000. (Statewide Higher Education Bond Issue of 2005)

d. R. #214 - ATHLETIC COMPLEX

PROJECT #6650043

Bid, award and construct the previously designed public restroom facility for the Athletic Complex north of campus. This project is estimated at $75,000. (Fund 295)

VI. REPORT OF BOARD COMMITTEE PROCEEDINGS (Continued)

A. BUILDING COMMITTEE REPORT

6. Southwestern Oklahoma State University

e. R. #215 - WELLNESS CENTER

PROJECT #6650016

Bid and award the completion of the West Wing of the Wellness Center at an estimated cost of $750,000. (Fund 295)

7. University of Central Oklahoma

a. Projects

1) R. #216 - HEALTH AND SAFETY PROJECTS #1200060

Fund, design, and award contract to Diversified Construction Inc., Indefinite Delivery Quantity General Construction Contract, contractor for Broncho 1 and 2 Emergency Repairs Landing and Railing repairs. The project budget is $25,000. (Auxiliary Funds)

2) R. #217 - HEALTH AND SAFETY PROJECTS #1200060

Fund, design, bid and award contract to the lowest responsible bidder for Selman Living Lab Emergency Repairs due to tornado damages. The project budget is $25,000. (Section 13 Offset Funds)

3) R. #218 - PARKING, SIDEWALKS, LIGHTS AND LANDSCAPING - PROJECT 1200013

Fund, design, bid and award contract to the lowest responsible bidder for the Broncho Statue Installation. The project budget is $25,000. (Section 13 Offset Funds).

VI. REPORT OF BOARD COMMITTEE PROCEEDINGS (Continued)

A. BUILDING COMMITTEE REPORT

7. University of Central Oklahoma

a. Projects

4) R. #219 - MAJOR REPAIRS AND DEFERRED MAINTENANCE - PROJECT #1200027

Award a contract to Mid Continental Restoration, Inc. for Tuckpointing and Waterproofing. The project budget is $492,000. A series of Board approved projects were combined into one large project for exterior building repairs to multiple campus buildings. This project includes tuckpointing, waterproofing, joint sealant, exterior insulation finish systems repairs and roofing repairs to six buildings. The Board approved these projects as follows:

a) R. #220 – EDUCATION BUILDING – PHASE I

Phase 1 Exterior EIFS Repairs Education Building $90,000 September 2004 (R#43) (E&G Funds and Section 13 Funds)

b) R. #221 – ART BUILDING & BUSINESS BUILDING

Tuckpointing and Waterproofing, Art Building and Business Building $202,000 September 2004 (R# 46) (Section 13 Offset Funds)

c) R. #222 - COYNER BUILDING

Coyner Building Waterproofing and Drainage $45,000 September 2004 (R# 47) (Section 13 Funds)

d) R. #223 – CHAMBERS LIBRARY

Chambers Library Waterproofing and Joint Sealant $80,000 September 2004 (R# 48) (Section 13 Funds and E&G Funds)

VI. REPORT OF BOARD COMMITTEE PROCEEDINGS (Continued)

A. BUILDING COMMITTEE REPORT

7. University of Central Oklahoma

a. Projects

4) Major Repairs and Deferred Maintenance

Project #1200027

e) R. #224 – BUSINESS BUILDING

Business Building Roof Repairs $75,000 June 2005 (R#288) (Section 13 Offset Funds)

b. Informational Items

1) R. #225 - INDEFINITE DELIVERY QUANTITY GENERAL CONSTRUCTION CONTRACT.

Contract awarded to Diversified Construction of Oklahoma, Inc for the Indefinite Delivery Quantity General Construction Contract based upon pre-bid unit price costs. Funds for this work will be approved by the Board prior to use of the work order requirements contract. Board approved the project in February 2005 (R #162) (Various Fund Sources)

2) R. #226 - PARKING, SIDEWALKS, LIGHTS & LANDSCAPING - PROJECT # 1200013

Contract awarded to Crossroads Construction, LLC for Campus Sidewalk Entry Control Gates. The project budget is $150,000. The Board approved to fund, design, bid and award the project November 2004. (R#91) (Section 13 Offset Funds)

Voting for the motion: Regents Ryerson, Gordon, Hibler, Thompson, Stansberry, Holloway

Voting against the motion: None

VI. REPORT OF BOARD COMMITTEE PROCEEDINGS (Continued)

B. AUDIT & FINANCE COMMITTEE REPORT – Regent Joe Anna Hibler

1. R. #227 – EXTERNAL AUDIT ENGAGEMENT LETTER

Regent Hibler made the motion, seconded by Regent Stansberry, to approve the external audit engagement letter submitted by Havern, Behrens, and Heim, Oklahoma City, Oklahoma for the six regional universities and the Board of Regents of Oklahoma Colleges for the Fiscal Year ending June 30, 2006 in the amount of $172,250.00.

Voting for the motion: Regents Hibler, Stansberry, Gordon, Thompson, Ryerson, Holloway

Voting against the motion: None

2. Report - Mike Gibson, Cole & Reed.

Regent Hibler stated that Mike Gibson expects to complete his report regarding the following items by mid-March: 1) the minimum internal audit plan needed for the six universities governed by the Board; 2) recommendations for auditing beyond the minimum required by statute; and 3) recommendations for the number of internal auditors needed to implement the recommendations.

Mr. Gibson reported that one area he reviewed was the number of audit hours spent at similar sized universities. He reported that the RUSO universities are in the middle range of total auditing hours of these institutions.

3. Discussion of format of Management Discussion and Analysis for external audit reports.

Regent Hibler stated that Tom Fagin, Vice President for Administration and Finance, Southwestern Oklahoma State University and Janet Cunningham, Executive Vice President, Northwestern Oklahoma State University, are working with the other vice presidents regarding the format of the Management Discussion and Analysis for the external audit reports. The final recommendation will be presented to the committee at a later date.

VI. REPORT OF BOARD COMMITTEE PROCEEDINGS (Continued)

C. SYSTEM ADVANCEMENT COMMITTEE REPORT – Co-Chairs Mark Stansberry and Glen D. Johnson

1. R. #228 – RUSO NAME CHANGE

Regent Stansberry made the motion, seconded by Regent Thompson, to approve changing the Board of Regents of Oklahoma Colleges name to Regional University System of Oklahoma.

Voting for the motion: Regents Stansberry, Thompson, Hibler, Gordon, Ryerson, Holloway

Voting against the motion: None

President Johnson reported on the following items:

2. Higher Education Day – RUSO System Breakfast

The consensus of the committee was that the RUSO System breakfast on Higher Education Day was a good effort and well attended. The committee recommended the following regarding the breakfast next year: 1) signage delineating each of the university logos and 2) quick facts about each institution on placards.

3. Presentation to the Oklahoma State Regents for Higher Education

The Oklahoma State Regents for Higher Education have already presented their request to the Legislature for $123 million in new money and how the funds will be allocated for this year. The RUSO presentation to the Oklahoma State Regents for Higher Education should emphasize the following themes: 1) RUSO system educates and graduates more students than any other tier, 2) statistics show that more RUSO graduates stay and work in Oklahoma at a much greater percentage, 3) number of students participating in OHLAP, and 4) RUSO system is the best vehicle to implement Brain Gain.

The committee recommends that another presentation be made to the Oklahoma State Regents for Higher Education in September 2006.

VI. REPORT OF BOARD COMMITTEE PROCEEDINGS (Continued)

C. SYSTEM ADVANCEMENT COMMITTEE REPORT

4. Reception with the Oklahoma State Regents for Higher Education

The committee recommends that the reception with the Oklahoma State Regents for Higher Education be held on the evening of May 25, 2006 before the state regents’ meeting on May 26, 2006.

5. The legislative reception will be held on Wednesday, May 3, 2006 at the Presbyterian Health Foundation Conference Center, Oklahoma City. The committee recommends that more creative signage be displayed and perhaps videos containing information about the six regional universities, to run continuously during the reception.

RUSO Legislative Agenda and Action Plan for 2006

· Support the Oklahoma State Regents request for an increase in funding in the amount of $123 million in new money for the state system and the regional system to implement Brain Gain goals, increase the number of college graduates in the state, assist in building the economy, and enhance the quality of life for Oklahoma citizens.

· Emphasize our request that OSRHE close the gap in funding between the comprehensive and the regional institutions using new money sources. Support this request by using the RUSO brochure data, our system increase in enrollment, and argue that funding formula creates a disparity that contradicts OSRHE’s stated Brain Gain goals, and use the Brain Gain data to make that case.

· Seek full funding for OHLAP – approximately $27.3 million for the upcoming fiscal year.

· Work with the Governor and legislative leadership to find a permanent funding source for OHLAP.

VI. REPORT OF BOARD COMMITTEE PROCEEDINGS (Continued)

C. SYSTEM ADVANCEMENT COMMITTEE REPORT

6. 2006 Legislative Report – Steve Kelley

Steve Kelley, Legislative Liaison, stated that he will continue to track legislation. He will report to the Board and presidents weekly, especially on issues such as the RUSO name change, construction, and OHLAP, etc.

The order of the agenda changed to Item VIII.

VIII. PRESIDENTS’ RECOMMENDATIONS

A. R. #229 - NORTHEASTERN STATE UNIVERSITY

Regent Gordon made the motion, seconded by Regent Stansberry, for approval of the President’s Recommendations for Northeastern State University as presented by President Williams:

Voting for the motion: Regents Gordon, Stansberry, Hibler, Thompson, Ryerson, Holloway

Voting against the motion: None

B. R. #230 - SOUTHEASTERN OKLAHOMA STATE UNIVERSITY

Regent Gordon made the motion, seconded by Regent Hibler, for approval of the President’s Recommendations for Southeastern Oklahoma State University as presented by President Johnson.

Voting for the motion: Regents Gordon, Hibler, Thompson, Ryerson, Stansberry, Holloway

Voting against the motion: None

C. R. #231 - NORTHWESTERN OKLAHOMA STATE UNIVERSITY

Regent Hibler made the motion, seconded by Regent Thompson, for approval of the President’s Recommendations for Northwestern Oklahoma State University as presented by Janet Cunningham, Executive Vice President, representing President Paul Beran.

VIII. PRESIDENTS’ RECOMMENDATIONS (Continued)

C. R. #231

Voting for the motion: Regents Hibler, Thompson, Gordon, Ryerson, Stansberry, Holloway

Voting against the motion: None

D. R. # 232 - EAST CENTRAL UNIVERSITY

Regent Gordon made the motion, seconded by Regent Stansberry, for approval of the President’s Recommendations for East Central University as presented by President Cole:

Voting for the motion: Regents Gordon, Stansberry, Hibler, Thompson, Ryerson, Holloway

Voting against the motion: None

E. R. #233 - UNIVERSITY OF CENTRAL OKLAHOMA

Regent Gordon made the motion, seconded by Regent Hibler, for approval of the President’s Recommendations for the University of Central Oklahoma as presented by President Webb.

Voting for the motion: Regents Gordon, Hibler, Thompson, Ryerson, Stansberry, Holloway

Voting against the motion: None

F. R. #234 – SOUTHWESTERN OKLAHOMA STATE UNIVERSITY

Regent Gordon made the motion, seconded by Regent Stansberry, for approval of the President’s Recommendations for Southwestern Oklahoma State University as presented by President Hays.

Voting for the motion: Regents Gordon, Stansberry, Hibler, Thompson, Ryerson, Holloway

Voting against the motion: None

IX. PRESIDENTS’ COUNCIL REPORT – President John Hays

The Presidents’ Council recommends that Steve Kelley, Legislative Liaison, assist the universities with their educational outreach program and requests that the Board consider increasing his compensation for these services at a future meeting.

X. EXECUTIVE DIRECTOR’S REPORT

Sheridan McCaffree reported on the following items:

A. AGB National Conference on Trusteeship, April 1-4, 2006, Orlando, Florida

B. Regents’ opportunities for professional development

“The Challenge of Presidential Leadership: A Chronicle Forum” sponsored by The Chronicle of Higher Education to be held in Washington, D.C. on Monday, June 12, 2006.

Regent Ann Holloway requested that Regents be informed regarding opportunities for professional development.

C. Status Report on Administrative Office

A research request was made recently to the Oklahoma State Regents regarding out-of-state tuition waivers and what percent of students that receive the out-of-state waivers stay and work in Oklahoma.

XI. CHAIR’S REPORT

None

The order of the agenda changed to Item VII.

VII. INFORMATIONAL PRESENTATION – TAXPAYER BILL OF RIGHTS (TABOR)

Carol Hedges, Fiscal Analyst for the Colorado Fiscal Policy Institute presented information and responded to questions regarding the Taxpayer Bill of Rights (TABOR).

The Board Chair declared a break at 9:25 p.m. The meeting reconvened at 9:40 p.m.

The order of the agenda changed to Item III.

III. R. #235 – EXECUTIVE SESSION

At 9:45 p.m. Regent Thompson, made the motion, seconded by Regent Hibler, to go into Executive Session to discuss:

Pursuant to 25 O.S. § 307 (B) (1), hiring of the President of East Central University.

Voting for the motion: Regents Thompson, Hibler, Gordon, Ryerson, Stansberry, Holloway

Voting against the motion: None

IV. ANNOUNCEMENT TO RECONVENE IN PUBLIC SESSION

The Board reconvened in public session at 11:15 p.m.

R. #236 – ECU PRESIDENT SEARCH

Regent Thompson made the motion, seconded by Regent Hibler, that the Board of Regents of Oklahoma Colleges interview the seven candidates for the presidency of East Central University that were recommended by the ECU Presidential Search Advisory Committee.

Voting for the motion: Regents Thompson, Hibler, Gordon, Ryerson, Stansberry, Holloway

Voting against the motion: None

R. #237 – CONSULTANT

Regent Thompson made the motion, seconded by Regent Hibler, to authorize the Executive Director to hire a consultant, in consultation with Board members, to conduct additional background checks regarding the seven semi-finalists candidates.

Voting for the motion: Regents Thompson, Hibler, Gordon, Ryerson, Stansberry, Holloway

Voting against the motion: None

The order of the agenda resumed.

XII. REGENTS’ COMMENTS AND ANNOUNCEMENTS

XIII. NEW BUSINESS

None

XIV. R. #238 – ADJOURNMENT

Regent Hibler made the motion, seconded by Regent Ryerson, to adjourn the meeting at 11:25 p.m.

Voting for the motion: Regents Hibler, Ryerson, Gordon, Thompson, Stansberry, Holloway

Voting against the motion: None

Submitted by:

_______________________________ ________________________________

Ann Holloway Belva Howard

Chair Secretary

Minutes approved by the Regional University System of Oklahoma this day of ___________, ______.

The next regular meeting of the Regional University System of Oklahoma is scheduled for 9:00 a.m. April 21, 2006, Southeastern Oklahoma State University, Durant, Oklahoma.

BOARD OF REGENTS

OF

SPECIAL BOARD MEETING

February 16, 2006