Minutes, Sept. 12-13, 2006

MINUTES OF THE MEETING OF THE BOARD OF REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA
HELD AT 270 Washington St., S.W.
Atlanta, Georgia September 12 and 13, 2006
CALL TO ORDER
The Board of Regents of the University System of Georgia met on Tuesday, September 12, and Wednesday, September 13, 2006, in the Board Room, room 7007, 270 Washington St., S.W., seventh floor. The Chair of the Board, Regent Allan Vigil, called the meeting to order at 1:00 p.m. on Tuesday, September 12, 2006. Present on Tuesday, in addition to Chair Shelnut, were Vice Chair William H. Cleveland and Regents Hugh A. Carter, Jr., Robert F. Hatcher, Julie Ewing Hunt, Felton Jenkins, W. Mansfield Jennings, Jr., James R. Jolly, Donald M. Leebern, Jr., Elridge W. McMillan, Patrick S. Pittard, Doreen Stiles Poitevint, Willis J. Potts, Jr., Wanda Yancey Rodwell, J. Timothy Shelnut, Benjamin J. Tarbutton III, and Richard L. Tucker.
Chair Vigil welcomed everyone to this meeting of the Board of Regents and said that he was very pleased to be Chair of the Board for the special occasion of the Chancellor's inauguration on Wednesday.
Chair Vigil then asked for a moment of silence in memory of Erskine "Erk" Russell, who had an impact on so many students as a coach, a teacher, and a character-builder at the University of Georgia and Georgia Southern University.
SAFETY BRIEFING
The Director of Administration and Compliance Policy, Mark Demyanek, gave the Regents and audience a briefing of basic safety information in the event of an emergency.
INTRODUCTION OF SENATOR TOMMIE WILLIAMS
Chair Vigil called upon the Chancellor to introduce Senator Tommie Williams.
Chancellor Davis said that it was his pleasure to introduce Senate Majority Leader Tommie Williams, who has served in the state senate since 1998 and has been a key figure in legislation and appropriations that have yielded many positive benefits for the University System and Georgia students. Senator Williams was a member of the HOPE Scholarship Joint Study Commission. This body made needed recommendations to the General Assembly that related to this nationally heralded program. Most recently, the Senator was co-author of the senate bill signed into law that created the
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Georgia Higher Education Facilities Authority ("GHEFA"). The Chancellor noted that GHEFA is an important new funding mechanism that will enable both the University System and the Department of Technical and Adult Education ("DTAE") to look at a new path for building revenuegenerating facilities. He said that the Board of Regents is very grateful for the senator's sponsorship of this important legislation and appreciates his support on this and many other higher education issues that come before the senate.
Senator Williams is a graduate of two University System institutions,having earned an undergraduate degree at the University of Georgia and a master's in education at Georgia Southern University. He has taught in the public schools and so has an intimate knowledgeand understandingof the front-line issues affecting K-12 students, teachers, and school systems. As the founder and owner of Georgia Pine Straw, Inc., Senator Williams is a successful businessman. He has been a very active and committed participant in many organizationsthat support Toombs County and the surroundingarea and has been deservedly and repeatedly recognized for his service and leadership. He also has been very active on an international basis through his work with the Southern Baptist International Mission Board, serving as a missionary in China, Israel, and Belize. Senator Williams is a graduate of Leadership Georgia and represents well the values and ideals of this group in his work at home, in the state senate, and for his church.The Chancellorsaid the Regents are pleased and proud to have Senator Williams with them at this meeting and to have the advantage of his experience and counsel in the General Assembly. He asked the Regents to join him in welcoming Senator Williams.
Senator Williams said that the highlight of his academic career was studying abroad as a participant in UGA's program in Cortona, Italy, which opened his horizons to different languages, cultures, and people. As a result of that experience, he was encouraged to learn more, travel abroad, and understand international affairs. He said that he hoped the Board would continue to support this program. He remarked that the Board had selected a great Chancellor, whom he had come to know well in budget discussions. He said that the Senior Vice Chancellor for External Affairs, Thomas E. Daniel, is a very friendly and professional representative of the Board who carries well the message of the Board of Regents. Senator Williams said that his door is open to the Regents and the University System Office staff and offered his help and support in making the University System of Georgia the best.
REMARKS FROM THE CHANCELLOR
Chair Vigil called upon the Chancellor to make some opening remarks.
Chancellor Davis stated that the Board had a very busy agenda over the next two days. He had noted before that every meeting is in a sense "new" for him in that he is working through his first cycle of the Board's business. One month it is tuition, then allocations,then presidentialappointments, then budget requests. This month was another "new" one for him because tomorrow would be his first, and probably last, inauguration in which he could receive instead of give the "charge." He said that
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while he may have seemed at times a reluctant participant, nonetheless he appreciated all of the hard work and effort that had gone into preparing for these inaugural festivities. He noted that the Budget Director, Usha Ramachandran, and the Special Assistant to the Vice Chancellor for Academic, Student, and Faculty Affairs, Felita T. Williams, co-chaired a hard-working inaugural committee of University System Office staff and individuals from the institutions. He thanked the committee for their hard work. The committee was comprised of Senior Executive Director of P-16 Special Initiatives and Operations, Sara Connor; the Associate Secretary to the Board of Regents, Jennifer E. Fairchild-Pierce; the Special Assistant to the Associate Vice Chancellor for Georgia P-16 Initiatives, Tonya Kilpatrick; the Vice President for External Affairs at Georgia State University, Tom Lewis; the Interim Vice Chancellor for Information and Instructional Technology and Chief Information Officer,Thomas L. Maier; and the Director of the GeorgiaTech Living History Program at the Georgia Institute of Technology,Marilyn Somers. The Chancellornoted that this inauguration turned out to be a good opportunity for true institutional collaborationwith a System focus and said he was proud of the way in which everyone has worked together.
As he had noted to the Regents on other occasions, Chancellor Davis had been working with the institutional presidents to look at System challenges and how to get more presidential leadership across the System on them. The goal is to provide presidents with new opportunities for Systemlevel leadership,to create new efficiencies in Systemwide operations, and to develop a strongersense of a System culture. At this meeting, the Senior Vice Chancellor for External Activities, Thomas E. Daniel would report on some of the initial work in this area and how System activities are meeting these broad policy goals. He would highlight ten projects that represent the initial areas of System focus. Also at this meeting, the Regents would continue to look at the revised capital process. Chancellor Davis noted that the Vice Chancellor for Facilities, Linda M. Daniels, and her staff had worked long and hard on this new process. He encouraged the Regents' spirited discussion around these recommendations. The underlying theme to this new process is to align facilities processes with the System's strategic needs.
On Wednesday, President Michael F. Adams of the University of Georgia ("UGA") would update the Regents on another strategic state priority: the effort to have Georgia named as the site for the new national bio- and agro-defense facility. The Chancellor had promised to keep the Board informed, and with the selection of Georgia on the short list for consideration,this would be a timely presentation.
Also on Wednesday, the Associate Vice Chancellor for Media and Publications, Arlethia PerryJohnson, would present findings from the communications survey that has been in progress since late May and would conclude this month. This survey of the System's key constituents and customers is providing staff with some interesting and important data that will be integratedinto the upcoming strategic planning process.
On another note, the Chancellor assured the Regents that, as staff continue to refine the Board
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meeting process, they are using the data the Regents provide in their monthly feedback forms. He noted that the Regents would see some more changes this month as a result of their good comments and insights. For example, the Committee on Academic Affairs would take a more streamlined approach to its agenda during its meeting. The goal there is to provide additional time for in-depth discussion of broader policy issues. Staff will continue to refine all Board meetings as part of a process of continuous improvement. Chancellor Davis stressed that the Regents' feedback has been invaluable, and he urged them to keep the staff informed on how they are, or are not, meeting the Board's needs and expectations. As he had stated at the last meeting, when the Regents make decisions, he wanted them to be informed decisions, and it is the staff's job to keep the Regents informed.
This is the Chancellor's first September in the University System of Georgia and one that he would personally remember,but he reminded the Regentsthat September is also a month of new beginnings with a new academic year. Therefore, they should remember this September as a time of new opportunities for people and for new ways of conducting the business of the University System. They should also remember this September, and every month, as another moment in time that has been given to us to continue the never-ceasingwork on behalf of this state and its citizens, the work of creating more educated Georgians.
ATTENDANCE REPORT
The attendance report was read on Tuesday, September 12, 2006, by Secretary Gail S. Weber, who announced that Regent MichaelJ. Coles had asked for and been given permissionto be absent on that day.
APPROVAL OF MINUTES
Motion properly made and duly seconded, the minutes of the Board of Regents meeting held on August 8 and 9, 2006, were unanimously approved as distributed.
INTRODUCTION OF NEW PRESIDENT OF WAYCROSS COLLEGE
Chair Vigil called upon the Chancellor to introduce the new president of Waycross College ("WC"). Chancellor Davis said that it had been his pleasure to introduce over the past several months several new presidents. The most recent appointment was that of Dr. David A. Palmer, who was named president of WC at the Board's August 2006 Board meeting and already was on the ground at work. In fact, President Palmer was on the WC campus on the first day of the fall classes, so that he could personally meet and greet students. The Chancellor remarked that it was a fast transition and one that bodes well for his presidency. President Palmer came to WC from his job as President of Andrew College, in Cuthbert, Georgia. He replaced former President Barbara P. Losty, who retired on July 31, 2006, after ten very successful years as WC's President.
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The Chancellor thanked Regent Jennings, who served as chair of the Special Regents Committee for the Waycross College Presidential Search. Regents Hunt and Tarbutton also served on the Committee. ChancellorDavis also recognized the Vice President for Business Affairs at WC, William E. Deason, who ably chaired the campus-based presidential search and advisory committee. He thanked everyone for their hard work. PresidentPalmer has decadesof experiencein higher education administration, including his two-year college presidency at Andrew College. He also has a deep appreciation for South Georgia. Chancellor Davis remarked that President Palmer is a great fit for WC and that he has his priorities in order with a focus on students. President Palmer also currently is President of the Georgia Association of Colleges, an independent organization dedicated to maintaining and improving educational standards in Georgia's public and private colleges and universities. Prior to his presidency at Andrew College, President Palmer spent 21 years as Vice President for Student Life and Dean of Students at Hanover Collegein Hanover, Indiana.Before that, he served as Vice President and Dean of Students at Transylvania University in Lexington, Kentucky. President Palmer earned a doctorate in higher education administration in from Michigan State University. He also earned an master's of business administration in organizational behavior/managementfrom Xavier University in Cincinnati,Ohio; a master's degree from Ohio State University; and a bachelor's degree from Hanover College. President Palmer and his wife, Nancy, have three married childrenand four grandchildren.On behalf of the Board of Regents, the Chancellor welcomed President Palmer and his wife to Georgia.
President Palmer greeted the Regents, staff, and guests. He said it was a great honor and he was very proud to be a part of the University System of Georgia. It will be a great privilege for him to serve the people of Southeast Georgia, he said. President Palmer and his wife are eager to move to Waycross and look forward to being very involved in the Waycross community. He invited the Regents to visit WC, which he characterized as tidy, neat, and attractive in all respects. Moreover, the faculty and staff are committed to high-quality learning driven by a genuine focus on service to students of all ages and community constituents. WC seeks to be high-quality, student-oriented, and very affordable. Enrollment is up about 10% this year. There are over 1,000 students on campus, and the classrooms are bustling. President Palmer said, "We are on the move." In closing, he thanked the Board for this tremendous opportunity and responsibility.
SYSTEM-LEVEL PROJECTS FOR PRESIDENTS
Chair Vigil next called upon the Interim Chief Operating Officer and Executive Vice Chancellor for Administration and Fiscal Affairs, Thomas E. Daniel, to discuss System-level projects for presidents.
Mr. Daniel stated that he would provide the Regents with an update and overview on a new initiative. He noted that additional and greater detail on this initiative was in the Regents' notebooks. This new initiative has identified key System-level projects. It will serve the Chancellor's goals and
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direction by fostering stronger alignments and a broader range of excellence within and across the University System. The ten projects will be assigned to individual presidents for implementation. By identifying these projects and providing institutional presidents with the opportunity to provide leadership, the System can achieve a number of important and interrelated goals. These include identifying and focusing on key projects with the potential to strengthen overall operations and create a more consistent level of excellence across the System; broadening the scope of shared responsibility from the University System Office to institutions and enlarging the pool of resources available to address these projects; providing institutional presidents with the opportunity and responsibility to manage not just vertically within a single institution, but horizontally across the System; thus creating a stronger sense of "system" and influencing a shift in culture in which employees support the alignment of institutional aspirations with System and Board goals.
The process of identifying projects began in May 2006, explained Mr. Daniel. Currently, staff are finalizing the list of presidents to whom the initial charges will be made. These charges set forth expectations of what presidents are expected to achieve and a timetable. Within the month, Chancellor Davis will meet with the presidents to give them the charges. Presidents will then begin work. Each will be expected to develop a team to assist him/her. In keeping with the spirit of this exercise, the team will consist of individuals from across the System, not just at that president's institution. This will be an ongoing process, and moving forward, additional projects will be identified. Eventually, all 35 presidents will have leadership responsibility for a System project.
Mr. Daniel presented the first ten System projects. These are grouped into three broad categories: academics, economic development, and operations. Under academics, projects will look at students before they come to the University System and students already in the System. There are four projects grouped under the heading of academics students before they come to the System:
1. Develop early outreach programs to students in at-risk situations to convince them to get ready for college
2. Address a middle school focus for the African-American Male Initiative ("AAMI")
3. Develop more K-12 students interested in math, science, and engineering and teachers ready to teach in these fields
4. Improve access of low-income students to college education
Two more projects fall into the category of academics students in the System:
5. Improve retention and graduation rates
6. Enhance student advising
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There is one project that falls into the category of economic development and creating a healthier Georgia:
7. Enhance the health professions
There are three projects under operations:
8. Improve enrollment management and planning
9. Enhance professional development of faculty and staff
10. Improve capabilities related to energy management and cost efficiencies
Mr. Daniel stated that this initiative has profound implications for the way in which the University System does business. It is a tool to improve our operations and create a more consistent level of excellence across the System. It is a tool to focus on strengthening academic preparation, access, and excellence to and within the System. As such, it represents a key part of the Regents' efforts toward creating a culture of continuous process improvement. Further, it will foster a greater alignment between institutions and System priorities. Finally, the direction of this initiative closely mirrors many of the principal recommendations found in the recent report issued by the U.S. Department of Education's Commission on Higher Education.
Regent Shelnut asked how often the Regents would be updated on this initiative.
Mr. Daniel said that the Chancellor would complete the development of the charges, the presidents will be notified, and he would present a progress report at the October 2006 Board meeting.
Chancellor Davis added that each of the projects would have different schedules such that updates on the individual projects would be given at different times. After the initial ten projects have been assigned, another set of eight projects will be assigned in academic, operational, and legal areas. So, eight more presidents will lead these projects with the goal of simplifying administrative processes and pushing decisions down to the lowest level that is prudent and possible under the law. So, half the presidents will be involved in the first cycle of projects under this new initiative. He noted that some projects will move much faster than others.
COMMITTEE ON REAL ESTATE AND FACILITIES, "COMMITTEE OF THE WHOLE"
Chair Vigil convened the Committee on Real Estate and Facilities as a Committee of the Whole and turned the Chairmanship of the meeting over to Regent Tucker, the Chair of the Committee
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Chair Tucker stated that at this time, the Board would hear an update on the new major capital project process, which is Item 8 on the Committee agenda. (See page 71.) This Board has become concerned about the growing backlog of critical projects on the existing rolling five-year major capital priorities list. This list has not progressed as quickly as needed to address the System's strategic facilities needs. Over the past several months, numerous discussions have taken place concerning alternatives to the existing project prioritization process. The Vice Chancellor for Facilities, Linda M. Daniels, and the Director of Planning, Alan Travis, would present information on this process.
Ms. Daniels greeted the Regents and thanked them for the time they had taken since the August Board meeting to become familiar with the new capital model. She said that this meeting was an opportunity to highlight in a public forum the key points of the model and address follow-up thoughts or concerns that the Regents may have. She detailed the three key elements of the new process. First, although the model's General Obligation ("G.O.") bond target is consistent with historic funding levels as a percentage of the state's overall bond sales, an accord must be reached with state fundingpartners to accept the strategiccapital model'smulti-yearconcept and to establish the appropriate level of planned annual capital outlay, including the division in bond and cash appropriations. The second element of the process is the target allocation of expected G.O. bond funding among institutions through a model that is based on a planned level of annual G.O. funding that is consistent and sustainable and that combines analysis of present conditions and future needs and uses hard data enhanced with qualitative assessment. Finally, staff will create a comprehensive capital program by integrating G.O. bonds with all other sources of funding, including the publicprivate ventures ("PPV") program and Georgia Higher Education Financing Authority ("GHEFA") finance methods.
Then, Ms. Daniels discussed what would be necessary to make the new process work. First was a commitment to a far more robust strategic planning process at the System level and at the institutions. This will require an investment in enhanced data and analytics for long-term planning and comprehensive decision support. It will also require discipline to adhere to a true multi-year capital program while allowing enough flexibility to keep it responsive to emerging needs and opportunities. Finally, it will require accountabilityin regard to the observed and measured value and product of capital investment. At its core, the essential character of the strategic capital model is to guide and integrate the planning, finance, and execution all capital investment strategically in a sustainable multi-year program.
The process has a numberof notable positive outcomes,said Ms. Daniels.With increasedG.O. bond predictability, the System and institutions will have an enhanced ability to predict and plan their G.O. bond investments. Along with this, there will be much more flexibility to plan, budget, and develop projects at the right size, the right price, and, most importantly, the right time. In sum, it will maximize the strategic value of all capital investment across the University System of Georgia.
Ms. Daniels asked Mr. Travis to join her at the podium. She noted that he is the individual most
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engaged in the development and detail of the model. She reminded the Regents that since June 2006, staff have held five campus meetings around the state with attendance of over 100 representatives from all 35 institutions. They presented this information to the presidents at their quarterly meeting this summer, and they followed up by establishing an interactive website where all documents associated with the new process, including the massive allocationmodel, are available for review and comment. There are opportunities for improvement that the staff are interested in gleaning from their colleagues at the institutions who have expertise in this area. Ms. Daniels has also emailed all of the presidents and chief business officers requesting their involvement in review and comment on the process, specifically asking them to engage in the interactive website. She has also begun calling the presidents to discuss the model individually. Since the last Board meeting, staff had individual meetings or phone conversations with each of the Regents. She again thanked them for their interest and involvement in understanding and improving the capital process. She then opened the floor for further discussion.
Chancellor Davis asked Ms. Daniel to indicate the plan for adoption of this new process. He said that while the fiscal year 2008 budget does not reflect the new model, the fiscal year 2009 budget will. He asked when the new model will be up for Board approval and what will be the next steps after approval.
Ms. Daniel said that over the coming two weeks, she would be contacting the remainder of presidents to ensure that all of the institutions are fully engaged in the process. Staff are also collecting and collating feedback from the Regents. After staff cull and integrate all of the feedback, they will bring the final capital process model proposal to the Board for endorsement in November 2006. That will align most of the G.O. bond allocation targets, though staff will not have information on the strategic allocations until later in the fiscal year. However, the initial allocation targets are needed so that the institutions can begin planning their individual multi-year capital programs, which staff anticipate bringing to the Board around June in lieu of the old presentation of projects by presidents. Instead, staff will present comprehensive capital programs for all 35 institutions and asking for approval of the initial six-year proposal. Subsequently, every three years, the Board will refresh the long-term perspective of the strategic capitalmodel, recognizingthat each year, the Board will be voting on a specific one-year proposal as part of the overall University System budget proposal. So, any refinements that need to be made to the larger strategic plan can be made on an annual basis.
Regent Shelnut thanked Ms. Daniels and Mr. Travis for their hard work on the new capital process and remarked that there is no question that the System needed a change in terms of the way it was handling the major capital outlay process. He would however like to see some objective input from the presidents about how they feel about the change and how it might positively or negativelyaffect their institutions over the next five to six years.
Ms. Daniels agreed that it is critically important that the presidents feel comfortable with this
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process and help the Regents lobby their funding partners. She stressed that the Board needs a cohesive approach that embraces the concept across the System or it will not be fully funded.
Regent Hatcher also commended the staff on their hard work. He said that in the initial six-year window, staff are proposingallocatingabout $1.5 billion.In the past, the Board has consideredneeds of approximately $6.5 billion over a ten-year period. He asked Ms. Daniels to clarify from where the rest of the funding will come.
Ms. Daniels said that the other funding sources included in the comprehensive model are the financing of projects that have a revenue streams through the PPV program and the new GHEFA model. So, she anticipates annually $230 million from PPV projects and $50 million in the initial years of the GHEFA program. So, that represents an additional $280 million annually. The cash amount is a combination of shifting major repair and renovations ("MRR") funds into a cash appropriation, as opposed to bond funding. That will be approximately $70 in the coming year, increasing slightly over time. Finally, staff expect private giving to bring the total into the customary range of funding. That will address the core academic and basic research facilities needs of the University System of Georgia. What it will not address are the research-related significantstatewide initiative projects, usually with an economic development component to them, which exceed the basic benchmarking standards that were the basis of the $6.5 billion figure. She remarked that the research universities and the Georgia Research Alliance ("GRA") need to help staff identify these additional needs.
Regent Hatcher stated that the proposed model does not really include inflation, large projects, and future requests.
Ms. Daniel responded that inflation is addressed within the model. However, she agreed that the staff need to work on projections about significant economic development projects or other projects like the dental school at the Medical College of Georgia.
Regent Hatcher said that the model weights projects 50% on structure and 50% on strategic factors. Under strategic factors, it is weighted approximately 30% on growth and 20% on strategic planning. He asked her to consider weighting it instead 20% on growth and 30% on strategic planning. He said that the strategic plan would give institutions and the Board more flexibility in dealing with the overall model. It would still give 70% on structural factors. He felt this would give the Regents more flexibility in how they administer the model.
Ms. Daniels said that more than one Regent had expressed this opinion, but it was not a consistent one among all of the Regents. She asked that the Regents give more feedback on this issue so that there could be full consensus. She noted that presidents are looking for more predictability in their planning. So, this is something about which staff would like more guidance.
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Chancellor Davis stated that if there are some components that have variability, staff may want to in fact isolate those and get decisions from the Regents in advance of the approval process. This is one area in which there will be some debate and which the answer lies somewhere in the middle. Staff need to find a way to respond to these concerns in the way they structure the final proposal.
Regent Hatcher reiterated that the way the model is currently structured, 80% of the decision is structural and 20% is strategic, and he would prefer that it be weighted 70%-30%.
Chancellor Davis agreed that this is something the staff can highlight in the ongoing development of the model.
Regent Jolly noted that the old capital outlay process was a rolling five-year list that anticipated state funding for one-fifth of the list each year. He asked whether under the proposed process, the projects remaining on the old list would be completed in the next six years.
Ms. Daniels replied that she has absolute confidence that the amounts of funding targeted for those projects will be made available to those institutions, and with only the caveat of how those institutions' own priorities may shift, those needs will certainly be addressed within the scope of the new model.
Regent Potts asked how the System will be assured of adequate funding to maintain the facilities once they are constructed.
Ms. Daniels responded MMR is included in the budget formula and that Governors and legislatures have historically supported the maintenance of System facilities. She stressed that new capital projects are not necessarily new square footage. Within the new capital model is the ability to focus on major renovations of existing space. The accountability and the discipline of the proposed model will require those kinds of decisions initiated at the campus level and vetted through the University System Office and the Board of Regents to ensure the renovation of existing space or the disposition and replacement of outdated facilities where that is the more cost-effective option.
Regent Jenkins said that he was generally pleased with the proposed model, though he agreed it still needs a bit of refinement. He noted that there was one column of figures missing from the chart distributed to the Regents and asked how the staff would complete this chart.
Ms. Daniels replied that they are waiting on the outcome of the Board's upcoming strategic planning exercise to indicate the Regents' primary strategic focus. The distribution of funding would then reflect how those needs can best be met by the institutions.
Regent Jenkins said that at some point, the funding would need to be distributed.
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Ms. Daniels said that, for example,if the Board's strategic planningexercise emphasizedallied health needs, the staff would take this strategic focus into consideration in the distribution of project funding. The institutions also need to know the Board's strategic priorities so that their individual facilities master plans will better reflect these priorities.
Chancellor Davis stated that the last column was blank because it was the column in which staff would allocatemonies or at least percentagestoward priorities, but those priorities have not yet been defined because the Board of Regents has not completed its strategic planning process. Those priorities will be targeted through the allocations proposed in that last column.
Regent Jenkins asked whether that column will be filled in by November.
Ms. Daniels responded that it would not. She expected that by January, the strategic planning process should be far enough along to give the institutions some idea of where to place their own strategic emphases.
Regent Jenkins asked whether the vote in November would simply then be a vote of confidence.
Ms. Daniels stated that it would indeed be an endorsement of the model in concept.
Regent Jenkins said that his remarks about the proposed model at the meeting he attended revolved around flexibility. His concern is that whenever staff fill in that last column, they will have allocated down to the last dollar specific figures for 36 units. Things change, he said, and what is best today may not be best tomorrow. He is concerned about how flexible the new model can be if events change that require the list to change.
Ms. Daniels assured him that it is the intention of the new model to provide exactly this kind of flexibility. There is flexibility built into the model such that projects can be moved back or forward as things change, and institutions will be have flexibilitywithin their requests to shift projects around as well.
Regent Jenkins said that he wanted assurance that the Board would not be obligated to fixed figures for six years.
Chancellor Davis stated that clearly the understanding is that all of this is contingent upon being able to secure funding. He said that Regent Jenkins had raised an excellent point and noted that the present capital outlay prioritization process offers very little flexibility and a fixed list of projects for five years. He assured Regent Jenkins that the new model will allow the institutions and the Board to mix and remix those priorities annually.
Regent Jenkins asked whether an institution could reorder its facilities requests at any time.
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Ms. Daniels said that as part of the annual capital budget process, projects can be shifted at the institutions. In fact, it would be very easy to do within the new model.
Regent Jenkins asked how the new model will provide for the larger projects at the smaller institutions.
Ms. Daniels said that she was cognizant of the fact that this could happen but that it would be very much an exception to the rule. Those are the kinds of things that would have to be consideredas part of the strategic allocation or some other method. The structural factors in the model take care of the reasonably expected growth of institutions and address current facilities deficits.
Regent Jenkins complimented Ms. Daniels and her staff on the new model and again stressed his concern about flexibility.
Chair Tucker also commended Ms. Daniels and her staff for developing this comprehensive model. He reminded the Regents that this is still a work-in-progress and that some stakeholders seek more flexibility while others seek more predictability. So, the staff still have some fine-tuning to do before the model will be finalized.
Ms. Daniels concurred that the model would only be presented for initial endorsement in November.
Seeing there were no further questions or comments, Chair Tucker thanked the Regents for their active participation in this process and adjourned the Committee meeting.
INTRODUCTIONOF DR. DWIGHT R. LEE, UNIVERSITYSYSTEM'S REPRESENTATIVE TO THE TEACHERS RETIREMENT SYSTEM OF GEORGIA
Chair Vigil next called upon the Chancellor to introduce the new representative of the University System of Georgia to the Teachers Retirement System of Georgia ("TRS") board of trustess.
Chancellor Davis noted that in May 2006, we recognized Dr. Sandra Gustavson, who ended seven years of service as the System's representative on the TRS board. At this meeting, the Chancellor was pleased to recognize Dr. Dwight R. Lee, who has graciously accepted the Board's invitation to serve as the System's new trustee for TRS. Since 1985, Dr. Lee has served as Professor of Economics and the Ramsey Chair of Private Enterprise at the University of Georgia ("UGA"). He has a distinguished career in the field of economics research and education, including positions at Washington University in St. Louis, the Center for Study of Public Choice at George Mason University, Virginia Polytechnic Institute, the University of Colorado, the United States International University in San Diego, and San Diego State College. He earned a bachelor of arts with distinction in economics from San Diego State College and his doctorate in economics from the
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University of California at San Diego. Dr. Lee has earned a number of honors and awards for his work in the field of economics and is a member of a number of the nation's high-profile economic associations. As a researcher, he has earned significant grants for his work and as an author has published widely in the field. The Chancellorsaid he was struck by the titles of two of his published articles "The Internet, the Market, and Communication: Don't Ignore the Shoe While Admiring the Shine" and "Who Says Money Can't Buy Happiness?"
Chancellor Davis said that he certainly hopes Dr. Lee's work on the TRS board helps keep the shine on the retirement plans for the System's employees and retirees and also contributes to their financial happiness and wellbeing. He asked the Regents to join him in welcoming Dr. Lee and wishing him every success in his new role as the System's new TRS representative.
Dr. Lee thanked the Regents for the honor of representing the University System on the TRS board.
At approximately 2:00 p.m., Chair Vigil adjourned the Regents into their regular Committee meetings.
CALL TO ORDER
The Board of Regents of the University System of Georgia met again on Wednesday, September 13, 2006, in the Board Room, room 7007, 270 Washington St., S.W., seventh floor. The Chair of the Board, Regent Allan Vigil, called the meeting to order at 9:00 a.m. Present on Wednesday, in addition to Chair Vigil, were Vice Chair William H. Cleveland and Regents Hugh A. Carter, Jr., Julie Ewing Hunt, Felton Jenkins, W. Mansfield Jennings, Jr., James R. Jolly, Donald M. Leebern, Jr., Elridge W. McMillan, Doreen Stiles Poitevint, Willis J. Potts, Jr., Wanda Yancey Rodwell, J. Timothy Shelnut Benjamin J. Tarbutton III, and Richard L. Tucker.
SAFETY BRIEFING
The Director of Administration and Compliance Policy, Mark Demyanek, gave the Regents and audience a briefing of basic safety information in the event of an emergency.
INVOCATION
The invocation was given on Wednesday, September 13, 2006, by Regent Tarbutton.
ATTENDANCE REPORT
The attendance report was read on Wednesday, September 13, 2006, by Secretary Gail S. Weber, who announced that Regents Michael J. Coles, Robert F. Hatcher, and Patrick S. Pittard had asked for and been given permission to be absent on that day.
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RECOGNITIONS
Chancellor Davis said that he wanted to take a moment to recognize and salute three remarkable individuals with a combined 63 years of dedicated and distinguished service to this Board and the University System of Georgia. He began with the retirement of long-time Secretary to the Board of Regents, Gail S. Weber. He said Ms. Weber is truly one of the institutional pillars in the University System, with 22 years of service in various roles. She has been witness to a period of significant history, and more than witnessing, she has made her own important contributions to the growth and activity of this System. The Chancellor remarked that the Regents and the System owe Ms. Weber a debt of gratitude for her outstanding and dedicated service to five Chancellors, numerous Board Chairs, scores of System presidents, and countlesscolleaguesthroughout the University System. She will be deeply missed for her legacy of unparalleled service, and her shoes will be difficult to fill. However, he had identified an individual who he believes will carry forward Ms. Weber's legacy of grace and effectiveness. Chancellor Davis introduced Ms. Julia M. Murphy, formerly Executive Assistant to the President of Oglethorpe University since September 2004, who has accepted his offer to serve this Board. The Chancellor would be asking the Board to appoint Ms. Murphy to the position of Secretary to the Board of Regents following the recommendation of the Executive and Compensation Committee later in this meeting. He asked Ms. Murphy to stand and be recognized.
Chancellor Davis said that he knew Ms. Weber's family and friends will be delighted that she has more leisure time for them, especially her ten grandchildren. However, he said, everyone in the University System of Georgia will miss her. He asked the Board and audience to join him in expressing thanks to Ms. Weber for her many years of dedication and service.
The second retirement the Chancellor highlighted was that of the Associate Vice Chancellor for Human Resources, William H. Wallace. Mr. Wallace has been in the University System Office negotiating and managing employee benefits for the University System since 1999, but he has given more than 30 years of dedicated service to the University System, having also served at Georgia Southern University and Kennesaw State University. In addition to his outstanding work in managing the System's employee benefit programs, Mr. Wallace has been singled out for his expertise and leadership abilities several times while a member of the University System Office. In 2004, Governor Sonny Perdue appointed him to the Joint Study Commission on Economic Development through the Investment of State Pension Funds into Private Equities. In 2005, Mr. Wallace was invited to join the national University Pathfinder Group, an invitation-only organization made up of the nation's "thought leaders" in higher education regarding healthcare and employee benefits issues. He also was called to serve during 2005 as co-chair of the Commission for a New Georgia's State Health Benefits Plan Task Force, which recommended a number of cost-saving opportunities to the Governor. Chancellor Davis asked the Regents to join him in recognizing Mr. Wallace for his record of service to the System and its employees.
The third significant departure was not a retirement. The Chancellor announced that the Associate
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Vice Chancellor for Media and Publications,Arlethia Perry-Johnson, was giving up her 11-plus year tenure as the Board and System's official spokesperson to go to Kennesaw State University ("KSU"), where she will take on a new role as Special Assistant to the President. During her tenure at the Board of Regents,Ms. Perry-Johnsonworked diligentlyand successfullyto raise the System's national profile. She launched a number of communications programs to broaden the awareness and understanding of the System and its Board among key audiences. She also managed a number of highprofile issues with professionalism and grace. Her insights and analysis helped inform and guide this Board's public response to countless issues. Ms. Perry-Johnson responded to the call for leadership of the regents' African-American Male Initiative ("AAMI") and served as project director for this important board initiative, which she will carry with her in her new assignment at KSU. The Chancellor asked the Assistant Vice Chancellor for Strategic Communications, John Millsaps, also an 11-year veteran at the Board of Regents, to serve in an interim capacity upon Ms. PerryJohnson's departure later this month. Chancellor Davis asked Ms. Perry-Johnson to stand and accept the Regents'thanks for her past service and their thanks that she will remain in the University System.
The Chancellor remarked that the work of these three outstanding individuals brings home the truth that any organization is the sum of the people who serve to define and achieve its mission and goals. The University System of Georgia is blessed with talent and fortunate to have individuals such as these. On behalf of the Board of Regents, the Chancellor stated that each of these individuals occupies a special place in their hearts and each will carry with them the Regents' best wishes.
COMMUNICATIONS TASK FORCE REPORT ON RESULTS OF CONSTITUENT SURVEY
Chair Vigil called upon the Associate Vice Chancellor for Media and Publications, Arlethia PerryJohnson, to make a presentation on the results of the constituent survey as part of former Chair Shelnut's communications task force.
Ms. Perry-Johnson greeted the Regents and thanked them for the opportunity to update them on the work of the communicationstask force. A major recommendationof the task force was to engage in a comprehensive survey of the Board of Regents' primary audiences and customers. She initially brought that recommendation to the Board in January as the anchor of a proposed communications plan. However, staff wanted to make sure that Chancellor Davis was very comfortable with this project. Therefore, they temporarily put it on hold until after his arrival, so they could brief him and secure his input. The chancellor is now fully up-to-speed on the survey project, and he has given it his strong endorsement. Staff will use the outcomes of this survey to hone and reshape their communications plan. Meanwhile, at this meeting, Ms. Perry-Johnson would brief the Regents on the specifics of the constituent survey, which staff were set to launch in one week. These surveys will help them collect a wide range of data about the perceptions and opinions of the System's key constituents. This information, for the most part, will fit into the following broad topic categories:
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Various audiences' level of awareness of the University System of Georgia, Their perceptions and attitudes regarding the Board and the University System of Georgia, Their current level of communication with the Board of Regents and System institutions, Their preferred communications sources, The Board's perceived reputation, and Customers' satisfaction with the Board's progress.
Ms. Perry-Johnson stated that the survey was launched in mid-May and would conclude at the end of September; therefore, this presentation was just a brief preview of the preliminary data. Audiences included 800 residents of the State of Georgia, nearly 1,400 University System of Georgia faculty, close to 900 System staff members, approximately 2,500 System students, General Assembly members, and business and community leaders. She then turned the floor over to the Director of the Survey Research Center at the University of Georgia, Dr. James J. Bason.
Dr. Bason explained that he would summarize some of the survey findings dealing with general awareness of the System and some perceived strengths and weaknesses of the System. The first question the survey asked was "What is your general level of awareness about the University System of Georgia?" Clear majorities of each of the constituent groups reported being very or somewhat aware of the System. Students were least aware (68%), faculty (87%) and staff (90%) were more aware, and legislators were most aware (100%). The general public was somewhere in between, with 78% reporting being very or somewhat aware of the University System.
The second question the survey asked pertained was "Do you have a generally positive view of the Board of Regents or a generally negative view of the Board of Regents"? Both the general public (54%) and students (59%) had the lowest levels of positive reporting, while more faculty (78%) and staff (72%) responded positively.
Regent Jenkins asked where the data for legislators were.
Dr. Bason responded that the survey did not ask that question of legislators. The next question the survey asked was "Overall, would you consider the image of the University System of Georgia as extremely positive, somewhat positive, somewhat negative, or extremely negative?" The proportions that responded extremely or somewhat positive were good, he said. The highest level of positive image was reported by legislators (95%), and all constituents had proportionately positive image: 92% of general public, 87% of faculty, 89% of staff, and 80% of students.
Dr. Bason next discussed the System's strengths and weaknesses as identified in the constituent survey. He noted that academic programs and affordable tuition were consistently cited as System strengths by almost all constituents. Legislators considered research also among the System's greatest strengths. Likewise, the constituent groups generally cited public service and outreach,
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contribution to state and local communities, and System administration as weaknesses. The survey allowed the researchers to look at data based upon type of institution. For example, faculty at research institutions feel that research is the top System strength, while faculty at all of the other types of institutions considered affordable tuition the System's top strength.
Regent Potts asked whether the strengths and weaknesses were selected from a list, and Dr. Bason replied that constituents could choose from a list of 11 different strengths and weaknesses on the survey instrument.
Ms. Perry-Johnson stressed that the fact that all key stakeholders see affordability as a System strength demonstrates the System's success in getting that message to the general public in spite of media coverage that does not depict the System in that manner. In fact, the National Center for Public Policy in Higher Education recently gave the University System of Georgia an F in affordability. She then discussed the communications section of the survey, stressing that there were more data yet to be examined.Ranking highest among informationresources from which constituents currently receive System information were newspaper/magazines, television, System mailings/publications, institutional email messages, System email messages, and friends and family. Legislators currently are receiving most (50%) of their information through System mailings and publications. Ms. Perry-Johnson noted that the Senior Vice Chancellor for External Affairs, Thomas E. Daniel, oversees a massive mailing to every member of the legislature. They also get a substantial amount of information from newspapers and magazines (15%). She also noted that only in this category did friends and relatives show up in a significant way (5%).
Ms. Perry-Johnson reported that legislators responded that they would prefer to receive information electronically through System emails (40%). They also indicated that they would like to receive institutional emails (35%). She noted a keen desire of all constituents to receive more information online.
The general public reported that it receives the preponderance of information through newspapers and magazines (29%) and television (12%). There was not much of a gap between how they receive their informationand how they want to receive theirinformation,although they indicated they would like to receive more information through television. Faculty receive the preponderance of information through newspapers and magazines (21%), System mailings (18%), and institutional emails (17%). They did indicate, however, a desire to receive more mailings from the System and a desire to receive more information electronically. Staff likewise receive the majority of information via newspapers and magazines (20%), System mailings (20%), and institutional emails (13%). They too desire to receive more information via email, as well as System mailings and publications (51%). Students currently receive most of their information about the System via newspapers and magazines (20%), institutional emails (18%), and System publications (11%). They would also desire to get more information electronically. Ms. Perry-Johnson said the bottom line is that the University System of Georgia needs to build significantly more robust databases of faculty, staff, and alumni.
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Information is currently dispersed from the University System Office to the institutions and then distributed by the institutions to their respective audiences. There is an opportunity here to build very robust databases of internal and external constituents for new communications distribution systems to distribute some of the communication vehicles that already exist.
The last question of the survey instrument was "Does the information you receive about the University System of Georgia through the mainstream media accurately portray the System?" Ms. Perry-Johnson said that all constituent groups generally believe that the media does accurately portray the System. That demonstrates the importance of the media in the System's communications efforts and points to an opportunity to augment media coverage with direct communication to the various constituents.
In closing, Ms. Perry-Johnson said that staff would conclude the survey to legislators and business and community leaders this month. Dr. Bason would produce and submit the final report of the task force to the University System Office by October 15, 2006. Then, all of the data and constituent feedback will be used in strategic and communications planning. She asked whether the Regents had any questions or comments.
Regent Jenkins asked Ms. Perry-Johnson to reiterate her comment about the University System of Georgia receiving a grade of F with regard to college tuition.
Ms. Perry-Johnson stated that the National Center for Public Policy in Higher Education (the "Center") recently released Measuring Up 2006, The National Report Card on Higher Education, which is released every two years. For the past two reports, Georgia has received an F in affordability. While the System has often responded that the HOPE Scholarship is one means by which the state provides financial aid, the Center is an advocate of aid based on financial need rather than merit-based aid such as scholarships. So, Georgia continues to receive an F in this area because of its lack of a need-based financial aid program at the state level. She said the Regents should still be proud that the public perception is that the University System of Georgia's tuition is affordable.
Regent Jenkins asked whether other states get F grades, too.
Ms. Perry-Johnson responded that they do based on the Center's advocacy for need-based aid.
Regent Jenkins said that the F then does not relate to the dollar amount of tuition.
Ms. Perry-Johnson said that there is a component of how much tuition costs relative to the average income of the state's residents. That is, a formula is applied with regard to tuition costs as a proportion of gross per capita income. She stressed that the primary issue is that the Center is a strong advocate of need-based financial aid, and Georgia does not have such a program.
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Regent Leebern asked how many other states received an F.
Ms. Perry-Johnson responded that there were more than 40 states out of 50 that received an F.
Regent Shelnut asked whether the System-level projects for presidents would address this matter, and Chancellor Davis responded that presidents will be looking at access and financial aid issues.
Regent Rodwell commended Ms. Perry-Johnson and Dr. Bason on their presentation. She asked what the greatest area that needs to be addressed is and how much it will cost.
Ms. Perry-Johnson replied that the System needs a more comprehensive strategic communications plan that expands beyond a media emphasis. She noted that the System has been media relations driven, but it should expand its marketing and advertisingefforts. This will, of course, require funding and staff.
NATIONAL BIO- AND AGRO-DEFENSE FACILITY UPDATE
Chair Vigil asked President Michael F. Adams of the University of Georgia ("UGA") to report to the Board on the latest developments on the national bio- and agro-defense facility ("NBAF").
President Adams said that he appreciated the opportunity to update the Regents and Chancellor on what is currently one of the state's most intriguing opportunities. A number of people have come together not only to produce this brief report, but also to produce the proposal that has been submitted to the U.S. Department of Homeland Security ("DHS"). Present at this meeting were Heidi Green, Director of Intergovernmental Affairs for Governor Purdue; Commissioner Tommy Irvin from the Georgia Department of Agriculture; the Vice President for Research at UGA, David C. Lee; and members of the Georgia Consortium for Health and Agro-Security. Governor Sonny Perdue and the two U.S. Senators were also instrumental in this effort, which has also been assisted by the U.S. Department of Agriculture facilities in Athens; Georgia's premier animal health company, Merial; federal, state, and local partners and business advocacy groups. President Adams said this has truly been a united, statewide effort. He asked those who were a part of the advocacy group that helped create this proposal to stand and be recognized.
President Adams stated that the proposal for the NBAF was anything but a small undertaking. The facility is envisioned to be a 500,000-square-foot, high-security, cutting-edge research and development facility to be located on land offered by UGA. It is conceived by DHS to fill a void in the country's ability to safeguard against natural and man-made threats to U.S. health, agriculture, and economy. These threats include emerging and reemerging infectious diseases termed zoonotic; that is, they are caused by pathogens that infect animals and that can be transmitted to humans. The one that has received the most press lately is avian flu. Many of these pathogens also unfortunately can be used as bioterror agents. The NBAF is considered to be a replacement for Plum Island Animal
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Disease Center in New York, but PresidentAdams said that this facilitywill be much more than that. It will be an important link in the chain of security against bioterrorism for the United States. It is rooted in the concept that in order to protect itself from zoonotic disease, the United States must fully integrate animal and human disease research efforts. The U.S. must also integrate the full continuum of efforts from basic research into pathogens and diseases to develop effective countermeasures, including vaccines. President Adams noted that Georgia has made major strides to deal with public health needs. The Directorof the Centers for Disease Control ("CDC"), Julie Louise Gerberding, has described Georgia as being at the crossroads of world health. President Adams said that attracting the NBAF on top of the assets Georgiaalready has, including the CDC, will make this state the undisputed world leader in the critical area of human health and economic security. He added that NBAF will be a powerful stimulus to Georgia's efforts grow both its health and bioscience industries and will be a magnet for such activities.
The direct economic impact will also be truly significant, stated President Adams. The building of NBAF itself is estimated to generate over 1,000 local jobs, and once operational, the facility will grow from about 300 to ultimately about 500 permanent scientist, technician, and support personnel jobs at a relatively high, and in some cases very high, salary level. The Carl Vinson Institute of Government at UGA estimates that the economic impact of NBAF over the next 20 years will be in excess of $6 billion. Therefore, competition for this facility will be very keen, he said, and UGA is only able to compete at a very high level because of what the Board of Regents has done in supporting UGA in the plans it has developed over the last ten years.
Half of the states in the nation responded with proposals for the facility. They are being evaluated against four criteria: research capability, site acquisition, workforce, and community acceptance. Eleven states, some even with multiple consortia, are still in competition for the facility, following the first review. President Adams said that he believes the strongest competition for Georgia will come from California,with its excellentUniversity of California System and the Lawrence Livermore National Laboratory. Missouri and Kansas have a joint project that delineates two ends of the I-70 Life Sciences Corridor, and between them, they have one of the nation's largest concentrations of animal healthcare companies. Texas has multiple consortia and strong research in this area at Texas A&M University. North Carolina has the Research Triangle anchored by Duke University, University of North Carolina, and North Carolina State; and Maryland has a strong biotech industry. President Adams said that he believes Georgia is the best choice, and on merit, it is a very strong competitor in this effort.
The Regents asked President Adams about next steps, and he responded that the process is still evolving, as any federal project does. DHS has promised another layer of evaluation and will soon be sending him and Dr. Lee a new round of questions. A smaller group of sites will then be visited by teams of experts to a much smaller group subject to detailed environmental impact analyses. Senator Saxby Chambliss has been to the site, and Senator Johnny Isakson has called inquiring about it. President Adams said that he believes the site has strong support from Georgia's senators in
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Washington. The later competition will also include opportunity for public comment, and he said this will be an important part of the process. The revised schedule would require the Department of Homeland Security to spend 2007 in the evaluation process and announce its decision in January 2008 with construction to begin in 2009. President Adams said that he believes this is as wellcoordinated effort an as the State of Georgia has ever submitted, with all of the relevant people and assets as organized and focused as best they can be. The Governor's Office continues to provide the overall leadership largely through Commissioner Craig Lesser and the Georgia Department of Economic Development,with whom President Adams is in frequent contact. DHS has stressed that this competition will be decided on facts, assets, and merits. President Adams said that Georgia's assets will play very well to that process. Although the strategy will continue to evolve as the process proceeds, it will be rooted in the principles of coordination, communication, and accountability among the various members of the consortia. UGA is pleased to bring a high level of expertise to the process, and he believes Georgia has a good chance of winning the facility.
In closing, President Adams thanked the Regents, the Governor, and elected officials for their support in this process. He said he will continue to lead and monitorthis process with their support and direction. He asked whether the Regents had any questions or comments.
Regent Leebern asked President Adams when the final cut will be announced and how much politics will play into the process.
President Adams said that he expects that Georgia will make the final cut. He noted that over the last few years, UGA has opened the Center for Applied Genetic Technologies, the Paul D. Coverdell Center for Biomedical and Health Sciences, the Complex Carbohydrate Research Center, and other state-of-the-art facilities staffed by some of the best researchers in the field. He said that on merit, Georgia is certainly one of the top two or three contenders, but at some point, there will be some political interest involved.
Seeing there were no further questions, Chair Vigil thanked President Adams for this informative update. After a brief recess, he called for Committee reports.
EXECUTIVE AND COMPENSATION COMMITTEE
The Executive and Compensation Committee met on Tuesday, September 12, 2006, at 11:00 a.m. in room 7019. Committee members in attendance were Chair Allan Vigil, Vice Chair William H. Cleveland, and Regents Robert F. Hatcher, W. Mansfield Jennings, Jr., James R. Jolly, Donald M. Leebern, Jr., Doreen Stiles Poitevint, and Richard L. Tucker. Chair Vigil reported to the Board on Wednesday that the Committeehad reviewedfour items, three of which required action.With motion properly made, seconded, and unanimously adopted, the Board approved and authorized the following:
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1. Information Item: Sale of Chancellory
The Assistant Vice Chancellor for Development and Administration, Peter J. Hickey, updated the Committee on the sale of the Chancellory.He reported that the closing occurredon August 25, 2006, at a price of $2 million.
2. Information Item: Briefing on Triage Committee
The Chief of Staff, Robert E. Watts, briefed the Committee on the purpose and role of the staff triage committee, which is composed of the Vice Chancellor for Fiscal Affairs, William R. Bowes; the Associate Vice Chancellor for Legal Affairs, Elizabeth E. Neely; the Chief Audit Officer and Associate Vice Chancellor for Internal Audit, Ronald B. Stark; the Associate Vice Chancellor for Human Resources, William H. Wallace, Jr.; and others as needed. This committee will review citizens' allegations of illegal, improper, or unethical activities or behavior of University System institutions and employees. Such allegations are sometimes copied to the Board, state officials, and/or federal officials.
The triage committee is the vehicle for handling such allegations. After review and follow-up action as appropriate, the committee will contact Board members to report the resolution of any allegation that has been sent to them.
3. Establishment of New Section 202.01, Performance Assessment of Presidents, of The Policy Manual
Approved: The Board approved the creation of a new policy requiring a broader review and assessment of all University System presidents.
Purpose: A formal evaluation system provides the Chancellor and Board with an assessment of how effectively a president is guiding an institution in such areas as academic, financial, and student affairs; personnel management; and community relations. The formal evaluation and review will address the following broad areas: administrative and academic leadership and management; institutional and Board goals and priorities; and internal and external relationships.
New Policy
202.01 PERFORMANCE ASSESSMENT OF PRESIDENTS
It is the intent of the Board of Regents that evaluation of the presidents shall be an ongoing process, which consists of open communication between the Chancellor or the president's supervisor and the president on both individual and institutional goals and objectives as well as on the methods and processes used to achieve them. Evaluations will be factored into the annual appointment renewal for each president.
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4. Information Item: Executive Session: Personnel and Compensation Issues
At approximately 11:25 a.m. on Tuesday, September 12, 2006, Chair Allan Vigil called for an Executive Session for the purpose of discussing personnel and compensation issues. With motion properly made and variously seconded, the Regents who were present voted unanimously to go into Executive Session. Those Regents were as follows: Chair Vigil, Vice Chair William H. Cleveland, and Regents Robert F. Hatcher, James R. Jolly, Donald M. Leebern, Jr., Doreen Stiles Poitevint, and Richard L. Tucker. Also in attendancewere ChancellorErroll B. Davis, Jr.; the Chief of Staff, Robert E. Watts; the Secretary to the Board, Gail S. Weber; and Ms. Julia M. Murphy. In accordance with O.C.G.A. 50-14-4, an affidavit regarding this Executive Session is on file with the Chancellor's Office.
At approximately 11:40 a.m., Chair Vigil reconvened the Committee meeting in its regular session and announced that no actions were taken in the Executive Session but that the issues discussed would be taken up by the full Board in Executive Session on Wednesday, September 13, 2006. (See page 80.)
COMMITTEE ON ORGANIZATION AND LAW
The Committee on Organization and Law met on Tuesday, September 12, 2006, at approximately 2:00 p.m. in room 7059. Committee members in attendance were Chair James R. Jolly, Vice Chair J. Timothy Shelnut, and Regents W. Mansfield Jennings, Jr., Elridge W. McMillan, Patrick S. Pittard, Doreen Stiles Poitevint, Willis J. Potts, Jr., Wanda Yancey Rodwell, and Benjamin J. Tarbutton III. Chair Jolly reported to the Board on Wednesday that the Committee had reviewed four items, two of which required action. Item 1 included 16 applications for review; 13 of these were denied, 1 was continued for further discussion, and 2 were recommended to the Office of State Administrative Hearings. With motion properly made, seconded, and unanimously adopted, the Board approved and authorized the following:
1. Applications for Review
At approximately 2:10 p.m. on Tuesday, September 12, 2006, Chair James R. Jolly called for an Executive Session for the purpose of discussing personnel matters and academic records of students. With motion properly made and variously seconded, the Committee members who were present voted unanimously to go into Executive Session. Chair James R. Jolly, Vice Chair J. Timothy Shelnut, and Regents Elridge W. McMillan, Patrick S. Pittard, Doreen Stiles Poitevint, Willis J. Potts, Jr., Wanda Yancey Rodwell, and Benjamin J. Tarbutton III. Also in attendance were the Interim Chief OperatingOfficer and Executive Vice Chancellorfor Administrativeand Fiscal Affairs, Thomas E. Daniel; the Associate Vice Chancellor for Legal Affairs, Elizabeth E. Neely; the Assistant Vice Chancellor for Legal Affairs (Prevention), J. Burns Newsome; and the Senior Associate for
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Academic Affairs, Dorothy D. Zinsmeister. In accordance with O.C.G.A. 50-14-4, an affidavit regarding this Executive Session is on file with the Chancellor's Office.
At approximately 3:35 p.m., Chair Jolly reconvenedthe Committeemeeting in its regularsession and announced that the following actions were taken in Executive Session:
a. In the matter of Mr. Alfred Conteh at Fort Valley State University concerning nonrenewal of his employee contract, the application for review was denied.
b. In the matter of Mr. Mark Eversoll at Armstrong Atlantic State University concerning his termination, the application for review was denied.
c. In the matter of Ms. Jo Ann Windeler at Armstrong Atlantic State University concerning her termination, the application for review was denied.
d. In the matter of file no. 1861 at Georgia State University concerning denial of admission to the College of Law, the application for review was denied.
e. In the matter of Dr. John R. Henley at Georgia Southwestern State University concerning salary matters, the application for review was denied.
f. In the matter of Ms. Penny Hunter at Fort Valley State University concerning her termination, the application for review was denied.
g. In the matter of file no. 1864 at Savannah State University concerning a residential sanction, the application for review was denied.
h. In the matter of file no. 1849 at Georgia College & State University ("GCSU") concerning alleged failure to meet the requirements for GCSU's Bachelor of Science in Nursing degree, the application for review was denied.
i. In the matter of Mr. Michael Todd Brandenburgat the MedicalCollege of Georgiaconcerning his termination, the Committee recommended referral to the Office of State Administrative Hearings.
j. In the matter of file no. 1851 at the University of Georgia regarding suspension, the application for review was denied.
k. In the matter of Mr. Gerald McIntosh at Fort Valley State University concerning his termination, the application for review was continued for settlement discussions.
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l. In the matter of Ms. Robin Cubbage at the Georgia Institute of Technology concerning her termination, the application for review was denied.
m. In the matter of file no. 1865 at Albany State University concerning denial of admission, the application for review was denied.
n. In the matter of file no. 1866 at Bainbridge College concerningadministrativewithdrawal, the Committee recommended referral to the Office of State Administrative Hearings.
o. In the matter of file no. 1867 at the University of Georgia concerning denial of admission, the application for review was denied.
p. In the matter of Ms. Cryste Pate at Augusta State University concerningher termination,the application for review was denied.
2. Revision of The Board of Regents Bylaws, Sections III.1 and V.1
Approved: The Board revised Bylaws III.1 and V.1 to reflect its decision that the Board hold eight regular meetings per year.
Background: At its August 2006 meeting, the Board determined that it would hold its regular meetings less frequently than monthly. Although the current Board Bylaws authorize the Chair to suspend meetings, current policy creates the expectation that the Board will meet between 10 and 12 times each year. The language below revises this expectation.
Note: Regent Jenkins noted that Section IX, Amendment, of The Board of Regents Bylaws specifies that any proposed amendment to the Bylaws should be submitted to the Board in writing at any regular meeting of the Board to be voted on at the next regular meeting. In this case, the Board had voted on the concept of the revision at its August meeting, but the specific language was not presented at that time. He requested, and the Regents agreed, that in the future, the exact language be presented at one meeting and voted on at the next regular meeting.
Board of Regents Bylaws with Approved Revisions
III. MEETINGS OF THE BOARD
III. 1 Regular Meetings
The Board shall meet monthly on the second Wednesday and the preceding Tuesday in the office of the Board of Regents unless otherwise determined by the Board. The regular monthly meeting of the Board shall begin at one o'clock on Tuesday afternoon, unless
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otherwise determined by the Board. Although the Board typically shall meet monthly, the Chair and Vice Chair are authorized to suspend two meetings per year, depending on the press of business. eight times per year unless the press of business demands more on dates determined by the Chair and the Chancellor and approved by the Board. The regular meetings shall usually be scheduled on consecutive days at times determined by the Board upon the recommendation of the Chair and the Chancellor.
V. DUTIES OF THE BOARD AND ITS COMMITTEES
V.1 General
The Board of Regents shall be responsible for the operation of the University System of Georgia, as provided by the Constitution of the State of Georgia and laws enacted pursuant thereto. The Committees of the Board shall review policy matters in the areas of jurisdiction assigned to them and advise the Board as to what, if any, changes of policy should be made. Each of the standing Committees shall keep informed with respect to the manner in which the policies of the Board are being administered in its jurisdiction.
The Chair may authorize special Committees with whatever membership is desired by the Chair.
Committees of the Board shall meet monthly on the Tuesday preceding the second Wednesday of each month for which a meeting of the Board has been called, unless determined otherwise by the Chair of the respective Committee. The time and place of each Committee meeting, whether regular or special, shall be determined by the Chair of the Committee and communicated by the Secretary to the Board. Business transacted at all special meetings shall be confined to objects stated in the call.
A Committee of the Board shall not consider any request for reexamination of matters that have been previously acted upon by the Board within a period of one year unless, upon presentation of new evidence, the Chair of the Committee determines that it should be reconsidered.
3. Revision of The Policy Manual, Section 202, Procedure for Selection of a President for University System Institutions
Approved: The Board approved revision of The Policy Manual, Section 202, Procedure for Selection of a President for University System Institutions, Subsection B, Composition of the Special Regents' Committee, regarding the process of selecting the Special Regents' Committee for presidential searches.
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Modified: This item was modified at the request of Regent Felton Jenkins. The modifications are italicized in the policy language presented below.
Background: At its August 2006 meeting, the Board determined that six Regents search teams be established to serve as the Special Regents' Committees for presidential searches at all institutions other than researchuniversities.The following policy language was therefore revised.Please note that the strike-through texts represent deletions from the previous version and the highlighted texts represent additions.
Revised Policy
202 PROCEDURE FOR SELECTION OF A PRESIDENT FOR UNIVERSITY SYSTEM INSTITUTIONS
The policy of the Board regarding the selection of a president for University System institutions shall be as follows:
A. A presidential search is initiated by the Chancellor, with the agreement of the Board, through the establishment of a Special Regents' Search Committee, a Presidential Search and Screen Committee, and, when deemed appropriate, a contractual arrangement with an executive search firm.
B. 1. Research Universities
For research universities, Tthe Special Regents' Search Committee shall be appointed by the Chair of the Board and will consist of up to five (5) Regents as voting members., with t The Chancellor, and the Chair of the Board, serving and, unless otherwise named as a voting member, the Regent residing in closest proximity to the institution, shall serve as exofficio, nonvoting members. At least one member normally shall be the Regent in whose congressional district the institution concerned is located or the Regent residing in closest proximity to that institution. The Board Chair shall appoint one of the voting Regent members as Chair of the Special Regents' Search Committee.
2. All Other Institutions
For regional universities, state universities, and colleges, Tthe Special Regents' Search Committee shall be appointed by the Chair of the Board and will consist of up to five (5) three (3) Regents as voting members, selectedas follows: . The Board Chair shall, at the beginning of his or her term as Chair, identify six Regents search teams Special Regents' Search Committees, each of which shall be chaired by one of the six most senior members of the Board of Regents. The next six most senior Regents shall be assigned to the six Regents
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search teams Special Regents' Search Committees in reverse descending order of seniority so that the most senior Regent is paired with the least senior Regent and so forth. The remaining Regents shall be assigned to one of the six Regents search teams Special Regents' Search Committees at the discretion of the Board Chair. In the event of a vacancy in the presidency of a regional or state university or of a college, the Board Chair shall assign one of the six Regents search teams Special Regents' Search Committees as the Committee with respect to that vacancy. In making such assignments, the Board Chair shall alternate the six Committees in turn so that each Committee has a relatively equal workload Special Regents' Committee. with tThe Chancellor and serving and, unless otherwise named as voting members, the Chair of the Board and the Regent residing in closest proximity to the institution shall serve as ex-officio, nonvoting members. At least one member normally shall be the Regent in whose congressional district the institution concerned is located or the Regent residing in closest proximity to that institution. The Board Chair shall appoint one of the voting Regent members as Chair of the Special Regents' Committee.
C. The Presidential Search and Screen Committee shall be appointed by the Chancellor in consultation with the Board Chair and the Chair of the Special Regents' Search Committee. In the case of a research university, the voting membership of the Presidential Search and Screen Committee shall consist of six (6) faculty representatives from the institution, one (1) representative of the administration and staff, one (1) student, one (1) representative of the institution's foundation, one (1) representative of the institution's alumni association, and three (3) representatives of the state-at-large. In the case of all other institutions, the voting membership of the Presidential Search and Screen Committee shall consist of three (3) faculty representatives from the institution, at least one (1) representative of the administrative staff, at least one (1) student, and at least two (2) representatives of the surrounding community (and region, as appropriate), including the institution's foundation and its alumni association and comprising up to one-third of the total voting membership of the committee. For each committee position upon which the Chancellor requests its advice, the respective institution, foundation, or alumni association shall provide two nominations.
The Chancellor will appoint the committee's chair from among the committee'svoting members.
D. The Chancellor shall, in consultation with the Board Chair, the Chair of the Special Regents' Search Committee and the Chair of the Presidential Search and Screen Committee, determine when a search warrants the services of an executive search firm, and shall develop any necessary contractual agreement that specifies the particular role and reporting lines for such services, all on a case-by-case basis.
E. The Special Regents' Search Committee shall confer with the Chancellor regarding the position description and any special qualifications that should be considered for the position. After
29

additional consultation with the Presidential Search and Screen Committee, the Chancellor will finalize the position description.
F. The Presidential Search and Screen Committee will advertise the position widely through the Applicant Clearing House and other publications and networks likely to reach a diverse audience of candidates, make all possible efforts to search out and attract a rich pool that includes well qualified candidates, receive nominations and applications, and undertake an initial evaluation of applicants -- advised and aided by an executive search firm to the extent that such services have been contracted.
G. The Presidential Search and Screen Committee shall identify to the Chancellor and the Chair of the Special Regents' Search Committee not less than five unranked candidates to be presented to the Special Regents' Search Committee. A list of all applicants for the position shall also be transmitted at this time to the Chancellor and the Chair of the Special Regents' Committee. The Special Regents' Search Committee may request a further search for applicants, or further consideration by the Presidential Search and Screen Committee of any applicant in addition to the candidates recommended.
H. The SpecialRegents' Search Committee shall conduct its interviews - providing opportunity for the Chancellor also to interview each candidate - and provide its evaluation and advice to the Chancellor, who will make the final recommendation to the full Board of Regents. At the discretion of the Chancellorand the Chair of the Special Regents' Search Committee,site visit(s) also may be undertaken.
I. Insofar as is compatible with state law, all parties to the search, screen, and selection process shall maintain strict confidentiality as to the identity of applicants and any considerations of their credentials, while making efforts to keep the campus community and the public appropriately informed as to the general progress of the search.
4. Revision of The Policy Manual, Section 909.02, Chancellor's Home and Presidents' Homes
Approved: The Board approved revision of The Policy Manual, Section 909.02, to eliminate the requirement that the Chancellor live in a home owned by the Board.
Please note that the strike-through texts represent deletions from the previous version of the policy.
Revised Policy
909.02 CHANCELLOR'S HOME AND PRESIDENTS' HOMES
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The policy of the Board regarding presidents' homes and the Chancellor's home shall be as follows:
a. The Chancellor shall be required to live, without charge, in the Chancellory. Presidents of research universities will be required to live, without charge, in university housing unless an exception is granted by the Chancellor. Existing presidential housing at other institutions will be phased out as rapidly as possible, and no additional presidents' houses shall be purchased or constructed for those institutions. Presidents who are currently furnished housing shall continue to occupy that housing during their tenure as president (BR Minutes, 1984-85, p. 114; BR Minutes, 1985-86, p. 53-54).
b. The institutions shall be responsible for the repair and upkeep of the buildings and grounds of the homes furnished for presidents.
c. The institutions shall be responsible for furnishing utilities, including local telephone service.
d. No food, food service, or other services shall be provided for the presidents and their families (BR Minutes, 1967-68, pp. 416, 645).
e. Any proposed project for improvement of a president's home, other than routine and necessary maintenance,shall be submittedfor review and approval by the Chancellorand the Board of Regents. Any subsequent changes in the scope of the project or budget shall be similarly submitted for review and approval (BR Minutes, 1990-91, p. 385).
All the requirements stated above apply to the home furnished for the Chancellor. However, the Board of Regents will review and approve any improvements to the Chancellory and will be responsible for furnishing utilities, etc., and for the repair and upkeep of the buildings and grounds of the home (BR Minutes, March 2002).
5. Information Item: General Bylaws Updates
Staff proposed that The Board of Regents Bylaws be updated to reflect the addition of a thirty-fifth institution to the University System of Georgia, the addition of two Regents to the Board as a result of Congressional redistricting, institutional name changes, etc.
This proposal will be on the table until the October meeting, when it will be up for Board approval. In the interim, the proposed updates to The Bylaws will be distributed to the Regents and the presidents for review.
6. Information Item: Presentation on Approvals and Authorities
31

The Chief Audit Officer and Associate Vice Chancellor for Internal Audit, Ronald B. Stark, was charged with one of the System-level projects: Approvals and Authorities. At this meeting, Mr. Stark provided a brief overview on how this project will benefit the University System.
Chancellor Erroll B. Davis provided an opportunity for System presidents to have involvement in this project and to have an impact on how business is done and decisions are made throughout the University System of Georgia. Four committees were formed to evaluate approvals and authorities as defined by The Policy Manual, the Business Procedures Manual ("BPM"), the Human Resources Manual, the Facilities Manual, the Administrative Manual, and Office of Information and Technology directives. The four committees are comprised of Academics, Facilities, Finance, and Legal and Administrative.
Recommendations from the committees will be evaluated by the University System Office senior staff, and appropriate changes to Board policy will be presented to the Board for approval in January 2007.
COMMITTEE ON ACADEMIC AFFAIRS
The Committee on Academic Affairs met on Tuesday, September 12, 2006, at approximately 3:40 p.m. in the Seventh Floor Training Room, room 7059. Committee members in attendance were Chair Doreen Stiles Poitevint, Vice Chair Elridge W. McMillan, and Regents James R. Jolly, Patrick S. Pittard, Willis J. Potts, Jr., Wanda Yancey Rodwell, and J. Timothy Shelnut. Board Vice Chair William H. Cleveland was also in attendance. Chair Poitevint reported to the Board that the Committee had reviewed 14 items, 12 of which required action. Included in Item 8, 649 regular faculty appointments were reviewed and recommended for approval. With motion properly made, seconded, and unanimously adopted, the Board approved and authorized the following:
1. Establishment of a Master of Science in Music Technology, Georgia Institute of Technology
Approved: The Board approved the request of President G. Wayne Clough that Georgia Institute of Technology ("GIT") be authorized to establish a Master of Science in Music Technology, effective September 13, 2006.
Abstract: The emergence of digital media led to a cultural and social transformation in the manner in which music is made, listened to, and performed. Recent technological developments in areas such as music recording, acoustics, compression, distribution, and playback have fundamentally changed musical practices and created a need in industry and academia for well-educated music and audio technologists who are able to design, develop, and creatively employ the next generations of musical performances, products, and services. The growing music department at GIT is positioned to meet
32

this emergent need by offering a Master of Science in Music Technology degree. The interdisciplinary degree program will be executed in close collaboration with other programs such as Human Computer Interaction, Electrical Engineering, Industrial Design, Interactive Digital Technology, and Mechanical Engineering.
Need: Recent technological innovations such as technology for the home studio, new electronic music instruments, commercial online distribution of music, and portable music players have fundamentally changed the business of creating, performing, and consuming music. This creates a need for technologically literate musicians and artistically creative engineers who can create and operate the enabling technology that is at the core of electronic and online music systems and services.
Objectives: The full-time, two-year day program was designed to provide students with the practical skills and theoretical understanding to be leaders in the design, development, and creative implementation of music technology products and services. Successful design and development of music technology systems must be supported by knowledge of music literature, theory, perception, composition, acoustics, and performance, as well as digital media, computer technology, electrical engineering, acoustics, human behavior, and design. It is projected that graduates of the program will seek employment with music software or hardware companies, entertainment industries, professional audio corporations, and educational and academic markets.
Curriculum: The 36-semester-hour program will offer two different concentrations: Computer Music Research and Engineering and Music and Audio Production. The Computer Music Research and Engineering concentration will be technological and scientific in nature, focusing on the design and development of novel enabling music technologies.The second concentration, Music and Audio Production, will be production-oriented and will focus on creative utilization of current music and media technologies with an emphasis on creative work in recording and multimedia and production. Applicants will be admitted to the program with an undergraduate degree in Music, Computing, Engineering, or a related degree. Applicants will be required to demonstrate their musical background in performance,composition, and/or theory, as well as basic skills in programmingand/or engineering in order to be admitted to the program.
Projected Enrollment: The institution anticipates enrollments of 7, 15, and 25 during the first three years of the program.
Funding: New and existing courses will support the establishment of this program. President Clough has provided reverification that funding for the program is available at the institution.
Assessment: This program will be reviewed after three years using the existing Comprehensive Program Review process. An external review will take place at the end of the fifth year of implementation.
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2. Establishment of a Major in Career and Technical Education under the Existing Bachelor of Science in Education, University of Georgia
Approved: The Board approved the request of President Michael F. Adams that the University of Georgia ("UGA") be authorized to establish a major in Career and Technical Education under the existing Bachelor of Science in Education, effective September 13, 2006.
Abstract: UGA requested approval to establish a major in Career and TechnicalEducation under the existing Bachelor of Science in Education.The purpose of the major is to prepare career and technical educators at the baccalaureate level with options in business, marketing, technology, and industry training. It is projected that the Bachelor of Science in Education degree will benefit school districts that have difficulty recruiting and retaining career and technical teachers. The program is a revision and merger of undergraduate Bachelor of Science in Education majors in Business Education, Marketing Education, and Technology Education.
Need: The Bachelor of Science in Education with a major in Career and Technical Education is designed to address a critical shortage of educators in the field who are preparing to teach the highly technical skills required for the future workforce in both secondary and postsecondary settings.
Objectives: A key component of the program is to prepare persons for teaching positions in middle and secondary schools for career and technical education subject areas as well as prepare persons wanting to become educators and trainers in business and industry. Objectives of the program are to establish an undergraduate degree program leading to initial teacher certification in one of the fields associated with career and technical education, to provide a mechanism to supply professionally prepared career and technicaleducators for public school systems and other educational settings, and to establish a noncertification option for students desiring to obtain employment as educators in nonschool settings.
Curriculum: The curriculum will emphasize knowledge of the learner, pedagogy, technology, assessment, and professional education. The degree requires 120 semester hours for completion.
Projected Enrollment: The institution anticipates enrollments of 45, 55, and 65 during the first three years of the program.
Funding: The major has been developed with existing courses. President Adams has provided reverification that establishing the program can be accommodated within funds presently anticipated and available.
Assessment: This program will be reviewed after three years using the existing Comprehensive Program Review process. An external review will take place at the end of the fifth year of
34

implementation.
3. Establishment of a Major in Veterinary and Biomedical Sciences under the existing Master of Science, University of Georgia
Approved: The Board approved the request of President Michael F. Adams that the University of Georgia ("UGA") be authorizedto establish a major in Veterinaryand BiomedicalSciences under the Master of Science, effective September 13, 2006.
Abstract: UGA requested approval to establish a major in Veterinaryand Biomedical Sciencesunder the existing Master of Science degree. The collegewide program will have a core mission to train the next generation of veterinary and biomedical scientists. To prepare students to make contributions to modern veterinary scienceand medicine,the program will emphasize interdisciplinarytraining and education recognizingthe importance of physiology, pathology, infectious diseases, and population medicine. The program aims to attract and train a cadre of highly qualified graduate students in the veterinary and biomedical sciences.
Need: Master of science programs in the College of Veterinary Medicine serve two purposes: to train skilled laboratory technologists who may find employment in biomedical industries and to prepare students for higher degree education. The pharmaceutical industry and biotechnology companies continue to employ candidateswith master's level educationin veterinaryand biomedical sciences.
Objectives: The primary objective of the program is the education and training of veterinary and biomedical scientists with a focus on the understandingof veterinary and biomedical sciencesand the skills to perform basic and applied research in related fields.
Curriculum: The minimum30-semester-hourprogram will be housed within the College of Veterinary Medicine. The program consists of coursework tailored to the specific emphasis area that a student plans to pursue in such concentrations as infectious diseases, pathology, veterinary anatomy and radiology, and physiology and pharmacology.
Projected Enrollment: The institution anticipates enrollments of 25 during each of the first three years of the program.
Funding: The College of Veterinary Medicine does not anticipate a change in resource needs that would adversely impact establishmentthe program. PresidentAdams has provided reverificationthat establishing the program can be accommodated within funds presently anticipated and available.
Assessment: This program will be reviewed after three years using the existing Comprehensive Program Review process. An external review will take place at the end of the fifth year of
35

implementation.
4. Establishment of a Major in School Library Media under the Existing Master of Education, Columbus State University
Approved: The Board approved the request of President Frank D. Brown that Columbus State University ("CSU") be authorized to establish a major in School Library Media under the existing Master of Education, effective September 13, 2006.
Abstract: The College of Education proposed a major in School Library Media under the existing Master of Education that prepares P-12 educators with the courses necessary to meet the requirements for licensure as a school library media specialist eligible for Georgia S-5 certification. Program matriculants will learn to establish information-rich learning environments to help students become effective creators, critical users, and communicators of ideas and information. The program is consistent with CSU's mission of providing a mix of liberal arts and professional programs that serve the educational,cultural,and economicneeds of the area. School media specialists serve to meet both literacy and technology needs for educational clientele, students, teachers, and administrators.
Need: The School Library Media program will meet the need for locally qualified library media specialists in Muscogee County and will alleviate the shortage of qualified school librarians in the region served by CSU.
Objectives: During the program, students will gain experience and competence in several areas, including the following:
Collection Management: The abilityto apply basic principlesof evaluatingand selecting resources and equipment to build and maintain a resource collection.
Collection Utilization: The ability to use resources to support the personal development and curricular needs of students and instructional development needs of faculty.
Instructional Leadership: The ability to serve as a learning facilitator within schools and as leaders in the development of effective strategies for teaching and learning.
Access: The ability to develop a school library media program dedicated to providing access to information and ideas.
Curriculum: The 36-semester-hour program is designed around the following core areas: 1) instructional design and integration of information technologies within the curriculum; 2) needs assessment, evaluation, and selection of diverse literature, media, and information services; 3) understanding and utilization of existing and emerging information technology; 4) social, ethical, and legal implications of information technology; 5) management of library media program services and facilities; 6) theories and accepted principles of standard systems of cataloging, process, and classification; and 7) research and library applications in the curriculum. The program will combine
36

online, traditional classroom, and practicum experiences.
Projected Enrollment: The institution anticipates enrollments of 15, 30, and 30 during the first three years of the program.
Funding: CSU anticipates that current allocations and funds received from increased student enrollment will be sufficient to cover most program start-up costs. New and existing courses will be used to establish the program. University resources are adequate to support the program. President Brown has provided reverification that funding for the program is available at the institution.
Assessment: This program will be reviewed after three years using the existing Comprehensive Program Review process. An external review will take place at the end of the fifth year of implementation.
5. Establishment of a Major in Homeland Security and Emergency Management under the Existing Bachelor of Arts, Savannah State University
Approved: The Board approved the request of President Carlton E. Brown that Savannah State University ("SSU") be authorized to establish a major in Homeland Security and Emergency Management under the existing Bachelor of Arts, effective September 13, 2006.
Abstract: The major in Homeland Security and Emergency Management under the existing Bachelor of Arts, housed within the Department of Political Science, Public Administration, and Urban Studies, is a baccalaureate degree designed to engage faculty from the three colleges preparing students with theoretical and applied knowledge to assume leadership roles in effectively managing all hazards, whether the cause is a natural disaster, a public health emergency, technological failure, or actions by domestic or foreign terrorists. As a result of this multi-disciplinary program, students will be prepared to assume entry-level positions after graduating and advance to positions of increasing responsibility and authority in a variety of organizational settings in the expanding areas of homeland security and emergency management. The new major is consistent with and advances the university's strategic plan.
Need: In a study of labor market data and statistics conducted for the Federal Emergency Management Agency'a Emergency Management Higher Education project, the report projects growth in demand for a variety of jobs associated with emergency management training from 13% to over 40% for specific job categories over the next six years to year 2012. According to the Center for Domestic Preparedness in Anniston, Alabama, "There are more than 11 million emergency responders and other personnel in this country that would need training to deal with terrorist incidents" (Center for Domestic Preparedness Fact Sheet, 2005). Discussions with Georgia Emergency Management Agency and local emergency management officials in Georgia confirm the
37

need for persons trained as first responders and as emergency managers. In particular, emergency management officials cite the experiences of Hurricanes Katrina and Rita in emphasizing the need for more racial diversity among decision makers and responders. Officials of the Chatham Emergency Management Office point to the need for well-trained personnel to work for local agencies, as well as the increasing number of international businesses in the coastal area.
Objectives: The proposed degree will graduate students who have the competencies and skills needed to assist in building disaster resilient communities through the prevention of disasters or terrorism and managing efficient and effective mitigation and recovery efforts. Graduates will meet critical human resource needs and have distinctive competenciesin the cultural, social, and diversity aspects of homeland security and emergency management, as well as language competencies in Spanish, Arabic, Chinese, or Farsi.
Curriculum: The 125-semester-hour major in Homeland Security and Emergency Management will offer courses and potential areas of concentration that promote interdisciplinary study of behavioral analysis, criminal justice, environmental science, forensic science, foreign language, and social work. Further, students will be encouragedto earn a certificatein Geographic Information Systems ("GIS") through a GIS training grant obtained by the institution.
Projected Enrollment: The institution anticipates enrollments of 25, 30, and 45 during the first three years of the program.
Funding: SSU has the faculty and staff resources, as well as fiscal, physical, and related resources, to establish and maintain the major. Grant funds will be sought to augment the program budget. New courses will be added to the curriculum to establish this program. President Brown has provided reverification that funding for the program is available at the institution.
Assessment: This program will be reviewed after three years using the existing Comprehensive Program Review process. An external review will take place at the end of the fifth year of implementation.
6. Establishment of an External RN to Master of Science in Nursing Accelerated Program, Albany State University
Approved: The Board approved the request of President Everette J. Freeman that Albany State University ("ALSU") be authorized to establish an external RN to Master of Science in Nursing ("RN-MSN") accelerated program, effective September 13, 2006.
38

Abstract: ALSU sought to offer an external RN-MSN accelerated program that includes Family Nurse Practitioner and Nurse Educator concentrations. The online RN-MSN accelerated bridge program will enable the associate degree registered nurse ("RN") to complete the requirements of a Master of Science in Nursing graduate with a concentration in either Family Nurse Practitioner or Nurse Educatorin a shortenedamount of time. The accelerated bridge program requiresthat students complete two additional semesters of coursework prior to entering the master's degree. Students will take a national standardized computer exam to demonstrate master of undergraduate knowledge and must pass the exam at the national average. Admission criteria adopted were the same criteria as for the graduate school except that grade point average is based on the student's associate degree and the cut-off score is higher than that required for RN to Bachelor of Science in Nursing applicants. In addition, students will take the MAT/GRE before completing nine hours of graduate study.
Need: The creation of a bridging program that enables graduates of two-year colleges to succeed in the transition to graduate nursing education is one of the key recommendations of the Report of the Sullivan Commission on Diversity in the Healthcare Workforce. The report also contends that healthcare providers who understand and hold a greater affinity to the culture, language, and social experiences of a given racial or ethnic group are more likely to provide effective care to that community. The program will help to increase the number of minority health professionals represented as graduate-level advanced practice nurses in the Southwest Georgia region.
Objectives: The accelerated degree program will enable the associate degree RN to complete the requirements for a Master of Science in Nursing in approximately seven semesters. Objectives of the program will be achieved by condensing and collapsing targeted nursing courses that are required within the curriculum. Through the elimination of redundancies, the timeframe for completing educational requirements associated with the Master of Science in Nursing will be reduced by more than one year.
Curriculum: Although a majority of the courses will be offered online, students will be required to attend campus at least twice each semester for skills workshops and presentations. In addition to the didactic content, students will complete 120 hours of precepted clinical experience and must complete 750 hours of graduate nursing clinical experience with an approved preceptor within their community. New or revised courses that have been added to the curriculum include RN-MSN Transitions, Nursing Theory Development, and RN-MSN Seminar.
Projected Enrollment: The institution anticipates enrollments of 5, 10, and 15 during the first three years of the program.
Funding: The institution will develop new courses and will use existing courses to enhance the accelerated bridge program. A grant from the Health Resources and Services Administration will be used to support those courses that will be offered in an online delivery format. A grant from the Helene Fuld Health Trust has been used to acquire computer hardware and software to improve
39

academic instruction and departmental administration.President Freeman has providedreverification that funding for the program is available at the institution.
Assessment: This program will be reviewed after three years using the existing Comprehensive Program Review process. An external review will take place at the end of the fifth year of implementation.
7. Establishment of a Major in AppliedEconomics under the Existing Master of Science, Georgia Southern University
Approved: The Board approved the request of President Bruce F. Grube that Georgia Southern University ("GSOU") be authorized to establish a major in Applied Economics under the existing Master of Science, effective September 13, 2006.
Abstract: The Master of Science with a major in Applied Economics supports GSOU's strategic plan because it will produce graduates with analytical capabilities that fill needs pertinent to the region. Such a program provides important technical skills that are of value to the economic development of the state. The potential employment of GSOU graduates will address the needs of regulatory analysis, quantitative analysis, financial economic analysis and risk management, and regional economic development skills that are needed in Georgia.
Need: The program fills a distinctive market niche. Colleges of business provide basic managerial education that meets regional needs. However, the need of regional businesses for advanced skills is not limited to managerial and administrative specialties. A Master of Science with a major in Applied Economics provides the quantitative and analytical skills for graduates to assist regional businesses in market analysis including quantitative, regulatory, and economic development.
Objectives: The objective of the program is to provide graduates with analytical capabilities in regional economic development, financial economics, and regulatory issues. The program will enable students to produce and understand both market analysis and quantitative data analysis.
Curriculum: The 30-semester-hour program will be housed in the School of Economic Development located within the College of Business Administration. The program includes the following emphasis areas: financial economics, regulatory economics and industrial organization, and economic development. A key feature of this program is the ability of applied economists to have an area of specialty in economic development.
Projected Enrollment: The institution anticipates enrollments of 15, 26, and 35 during the first three years of the program.
Funding: The program will require no new state allocation of resources. Current resources will be
40

reallocated as needed to ensure program success. President Grube has provided reverification that funding for the program is available at the institution.
Assessment: This program will be reviewed after three years using the existing Comprehensive Program Review process. An external review will take place at the end of the fifth year of implementation.
8. Administrative and Academic Appointments and Personnel Actions, Various System Institutions
Approved: The administrative and academic appointments were reviewed by the Chair of the Committee on Academic Affairs and approved by the Board. The full list of approved appointments is on file with the Office of Faculty Affairs in the Office of Academics and Fiscal Affairs.
9. Consolidation of Baccalaureate Information Technology Degrees, Georgia Southern University
Approved: The Board approved the request of President Bruce Grube that Georgia Southern University ("GSOU") be authorized to consolidate baccalaureate information technology degrees, effective September 13, 2006.
Abstract: GSOU requested approval to consolidate two baccalaureate information technology degrees that are currently listed as part of its approved degree program array: Bachelor of Science in Information Technology and Bachelor of Science with a major in Information Technology. The resultant degree program, Bachelor of Science in Information Technology, will reduce the variation in student degree requests and provide a clear and accurate representation of the information technology undergraduate program offered by the institution.
10. Termination of the Bachelor of Science with a Major in Social Science with Teacher Education Certification, North Georgia College & State University
Approved: The Board approved the request of PresidentDavid L. Potter that North Georgia College & State University ("NGCSU") be authorized to terminate the Bachelor of Science with a major in Social Science with Teacher Education Certification, effective September 13, 2006.
Abstract: NGCSU sought approval to terminate the Bachelor of Science with a major in Social Science with Teacher Education Certification. The Georgia Professional Standards Commission no longer provides certification in social science education, thus the degree is no longer relevant. In order to accommodate students seeking a degree in this area, NGCSU will retain its Bachelor of Science with a major in Social Science program.
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11. Conversion of the Cecil F. Whitaker, Jr., M.D. Distinguished Chair in Cancer to the Cecil F. Whitaker, Jr., M.D./Georgia Research Alliance Eminent Scholar in Cancer, Medical College of Georgia
Approved: The Board approved the request of President Daniel W. Rahn that the Medical College of Georgia ("MCG") be authorized to convert the Cecil F. Whitaker, Jr., M.D. Distinguished Chair in Cancer to the Cecil F. Whitaker, Jr., M.D./Georgia Research Alliance Eminent Scholar in Cancer, effective September 13, 2006.
Abstract: MCG requested approval to establish the Cecil F. Whitaker, Jr., M.D. Distinguished Chair in Cancer, and approval was granted at the January 11, 2006, Board of Regents meeting.
Since the January 2006 Board of Regents approval, the Georgia Research Alliance has contributed funding in the amount of $750,000, which has been deposited with the MCG Foundation, Inc. for the match that was used to create the endowed chair. The current total on deposit is $1,879,915.70.
Therefore, MCG requested at this meeting that the current Cecil F. Whitaker, Jr., M.D. Distinguished Chair in Cancer be converted to the Cecil F. Whitaker, Jr., M.D./Georgia Research Alliance Eminent Scholar in Cancer.
12. Reorganization of Institutional Units, Kennesaw State University
Approved: The Board approved the request of President Daniel S. Papp that Kennesaw State University ("KSU") be authorized to reorganize institutional units, effective September 13, 2006.
Abstract: KSU requested approval to reorganize institutional units, specifically those senior administrative staff positions that report to the President. The reorganization will result in a reduction to the number of Vice Presidents from six to five. In addition, two to three current positions will be revised to that of Special Assistant or Executive Assistant.
The number of Vice Presidents will be reduced from six to five. There will be no Chief of Staff or Associate Vice President for External Affairs. Instead, two positions, titled Special Assistant to the President, will be developed, one for Legal Affairs and Diversity, and the other for External Affairs. The position of Executive Assistant will be developed, but the current Chief of Staff position will cease to exist. A position entitled, Faculty Executive Assistant, will also be created. The Institute for Leadership, Ethics, and Character will be changed from a direct report to the Office of the President to a reporting relationship with the Office of the Provost.
The reorganizationwas proffered in order to demonstratethat all Vice Presidents will have significant numbers of persons reporting to them. Special Assistants will have a limited number of employees and Executive Assistants will have few, if any, persons reporting to them. Additionally, each
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position will focus on an area of critical importance to the operation of a state university. For example, the new SpecialAssistant to the President for External Affairsposition will unite portfolios related to government relations, community relations, public relations, and marketing that had previously been divided among three Cabinet officers.
Finally, three Vice President positions will be renamed such that the Vice President for Business and Finance will be re-titled as the Vice President for Business and Administration. Similarly, the position of Vice President for Technology and Human Resources will be renamed as the Vice President for Technology. In accordance with the aforementioned changes, the position of Vice President for Diversity, Legal, and Community Affairs will be re-titled as Special Assistant to the President for Legal Affairs and Diversity.
13. Information Item: Applied Learning Experiences/Clinical Training
Pursuant to authority granted by the Board at its meeting on February 7-8, 1984, the presidents of the listed institutions have executed the indicated number of memoranda of understanding respecting affiliation of students for applied learning experiences/clinicaltraining in the program indicated. This is the fourth annual report of applied learning experiences/clinical training.

Fiscal Year 2005
Institution/Program Georgia Institute of Technology Clinical and Technical Program Subtotal
Georgia State University Cardiopulmonary Care Sciences Counseling and Psychological Services Health and Human Sciences Kinesiology and Health Nursing Nutrition Physical Therapy Psychology Public Health Social Work Subtotal

New

Renewal

6

0

6

0

1

0

4

0

26

18

18

1

47

9

5

0

22

14

27

7

1

0

34

0

185

49

43

Medical College of Georgia Biomedical and Radiologic Technologies Dental Hygiene Health Informatics Occupational Therapy Physical Therapy Physician Assistant Respiratory Therapy School Wide Dentistry Nursing Subtotal
Institution/Program University of Georgia Communications Sciences and Disorders Social Work Educational Psychology Foods and Nutrition Recreation and Leisure Studies Health Promotion and Behavior Counseling and Human Development Psychology University Health Center Pharmacy Exercise Science Clinical Psychology Child and Family Development Education Public Health Environmental Health Science Veterinary Medicine Subtotal
Georgia Southern University Hospitality, Tourism and Consumer Sciences Leadership and Technology Nursing Psychology Public Health
44

16

2

14

13

6

1

13

3

17

15

87

29

2

0

25

19

21

0

54

12

255

94

New

Renewal

5

23

66

96

9

1

5

3

48

7

23

25

7

8

15

0

2

8

19

5

7

0

1

0

44

2

84

5

12

0

3

0

0

1

350

184

44

0

5

1

32

17

7

0

21

1

Sociology Subtotal
Valdosta State University Nursing Subtotal

6

0

115

19

2

31

2

31

Institution/Program Albany State University Nursing Subtotal

New

Renewal

23

75

23

75

Armstrong Atlantic State University Education Health Professions Dental Hygiene Nursing Education Technology Physical Therapy Medical Technology Radiologic Sciences Speech and Language Pathology Subtotal

1

23

2

19

1

0

18

3

1

0

15

14

5

2

6

0

7

0

56

61

Augusta State University

Nursing

2

Psychology

0

Political Science

3

Combined Programs (e.g., Psychology, Nursing, Criminal

6

Justice, etc.)

Subtotal

11

1 1 0 13
15

Clayton College & State University Nursing and Health Care Management Subtotal

27

6

27

6

Columbus State University Nursing Subtotal

1

34

1

34

45

Fort Valley State University
Institution/Program Georgia College & State University Music Therapy Kinesiology Nursing Subtotal
Georgia Southwestern State University
Kennesaw State University Nursing Health Care Subtotal
North Georgia College & State University Nursing Physical Education Physical Therapy Subtotal
Savannah State University Social Work Subtotal
Southern Polytechnic State University
State University of West Georgia Nursing Subtotal
Abraham Baldwin Agricultural College Nursing Subtotal
Dalton State College Health Specialties Subtotal
46

0

0

New

Renewal

9

13

38

4

27

58

74

75

0

0

43

7

6

0

49

7

42

31

3

4

8

36

53

71

16

19

16

19

0

0

9

41

9

41

3

22

3

22

6

52

6

52

Institution/Program Gainesville College
Gordon College Nursing Subtotal
Macon State College Health Information Nursing Combined Programs Subtotal
Middle Georgia College Occupational Therapy Nursing Subtotal
Atlanta Metropolitan College
Bainbridge College Nursing Health Programs Subtotal
Coastal Georgia Community College Combined Programs Subtotal
Darton College Cardiovascular Technology Dental Hygiene Diagnostic Medical Sonography Emergency Medical Services Health Information Technology Histotechnology Human Services Technology Medical Laboratory Technology
47

New

Renewal

0

0

1

23

1

23

4

5

8

1

3

33

15

39

1

29

0

24

1

53

0

0

14

17

1

9

15

26

6

26

6

26

6

0

1

1

6

0

5

4

10

0

9

3

26

1

9

2

Institution/Program Nursing Occupational Therapy Assistant Physical Therapy Assistant Physical Therapy Polysomnography Psychiatric Technology Respiratory Care Subtotal

New

Renewal

16

2

23

10

26

4

26

4

5

0

7

0

10

0

185

31

East Georgia College

0

0

Georgia Highlands College Dental Hygiene Human Services Nursing Cancer Care Nurse Navigator Combined Programs Subtotal

3

2

9

30

1

13

1

7

1

8

15

60

Georgia Perimeter College Nursing Dental Hygiene Subtotal

3

12

1

2

4

14

South Georgia College Nursing Subtotal

0

15

0

15

Waycross College

TOTAL FISCAL YEAR 2005

1483

1142

What is clinical training in University System of Georgia institutions?

Clinical training is that aspect of the curriculum wherein student learning occurs directly as a function of being immersed within the practice of their discipline. These dynamic and progressive experiences comprise all of the direct and indirect formal and practical "real life" learning experiencesfor students in order to apply classroom knowledge, skills, and behaviors in the clinical environment. These fulltime experiences can be as short as 3 weeks or as long as 16 weeks and can vary by the manner in which the learning experiences are provided (e.g., rotations on different units within the same setting

48

or rotations between different practice settings within the same healthcare system). These experiences include comprehensive care of patients across the life-span and related activities.
Contracts are establishedwith schools, physicians' offices, public health departments, assisted living and retirement communities, women's and homeless shelters, psychiatric facilities, and hospitals. Agencies are chosen according to the course objectives, the goals of the individual programs, and for their culturally diverse populations. The faculty members survey all sites to determine the value of the clinical experience for the students.
* This summary was extracted from descriptions provided by North Georgia College & State University.
14. Information Item: Service Agreements
Pursuant to authority granted by the Board at its meeting on February 7 and 8, 1984, the presidents of the listed institutions have executed service agreements with the indicated agencies for the purposes and periods designated, with the institutions to receive payment as indicated:

University of Georgia
Georgia Commodity Commission for Cotton Develop practical treatment thresholds for sucking bugs and develop efficient detection methods on their damage to cotton; investigate spatial and temporal dynamics of sucking-bugs within the farmscapes.
Georgia Commodity Commission for Tobacco Provide funds for printing Extension Tobacco publications to include: the 2006 Georgia Tobacco Grower's guide, the 2005 Georgia Tobacco Research Extension Report, and other incidental tobacco related publications.
Georgia Department of Education Conduct a pilot test allowing test modification on the Criterion-Referenced Competency Tests and the Georgia High School Graduation Tests.
Georgia Department of Human Resources Assist in conducting a needs assessment and analysis of existing data infrastructure to determine enhancements and changes that must be made to meet federal reporting requirements.
Georgia Department of Human Resources Design, implement and collect data on an on-line survey for child placement agencies, state resources development works, county Department of Family and Children Serv4i9ces offices, and state and regional foster care workers in Georgia.

1/1/06-12/31/06 7/1/05-12/31/06 11/11/05-6/30/06 7/15/05-6/30/06 3/1/06-6/30/06

$23,712 $9,000 $185,000 $28,681 $49,495

child placement agencies, state resources development works,

county Department of Family and Children Services offices,

and state and regional foster care workers in Georgia.

Georgia Department of Natural Resources

Serve as the lead agency in designing and facilitating a public

participation program to ensure a sufficient level of public

participation in the planning process of the state

4/14/06-12/31/07

comprehensive outdoor recreation plan and facilitate the

meetings of the State Comprehensive Outdoor Recreation

Plan advisory committee.

Georgia Cancer Coalition

Design and synthesize analogs of natural anti-tumor agents

that are inactive in the dark but are converted into an active

7/1/05-6/30/06

form upon irradiation with red light in a so called

"phototherapeutic window."

Georgia Commodity Commission for Cotton

Fund a Public Service Faculty position to be located at Tifton, 1/1/06-12/31/06

Georgia

Georgia Commodity Commission for Corn

Support travel to county extension grower meetings, field

days, demonstration projects, problem solving/field diagnosis 1/1/06-4/30/07

trips, out-of-state meetings and printing and supplies for

grower support and field demonstrations.

Georgia Commodity Commission for Corn

Promote value-added corn production by reducing insect damage as well as aflatoxin contamination in field as well as

7/1/06-6/30/07

storage facilities.

Georgia Commodity Commission for Peanuts

Determine the efficacy of various herbicides and develop costeffective weed management systems for the control of tropical

1/1/06-12/31/06

spiderwort in peanuts.

Georgia Department of Agriculture

Research fee for urban pest control pursuant to rule 620-3-01 (2) for the Georgia Structural Pest Control Act in support of

1/1/06-12/31/07

research.

Georgia Department of Human Resources

Provide diagnostic support for dead bird-related arbovirus

surveillance within Georgia, provide diagnostic support for

1/1/06-12/20/06

mosquito pool testing for arbovirus surveillance and diagnostic

support for testing ticks for tick-borne pathogens in Georgia.

50

$203,500
$100,000 $15,000 $9,000 $16,000 $3,000 $90,000 $199,768

Georgia Department of Human Resources

Enhance food safety knowledge and facilitate the development

of intervention methods that improve public health for food 1/1/06-12/15/06

safety by the Georgia Department of Human Resources and its

public health partners.

Georgia Department of Juvenile Justice

Assist with supervision and programming for delinquent youth

committed to the state who are participating in Department of

Juvenile Justice-operated community programs; assist in providing prevention services to youth in the community at

7/1/05-5/31/06

risk for delinquency; and assist in providing diversion programs

to the juvenile court to prevent further penetration into the

system.

Georgia Department of Natural Resources

Implement growth management controls and land preservation

measures to ensure that populations of imperiled aquatic

4/1/06-3/30/07

organisms remain healthy for each local government in the

Etowah basin.

Georgia Department of Natural Resources

3/1/06-2/28/07

Develop and produce three public service announcements, each

having a 30-second play time on St. Simons Island Beach

Georgia Department of Public Safety

1/15/06-7/15/06

Develop resource/study manuals and develop three

assessments center exercises for ranks of Corporal, Sergeant,

Sergeant First Class and Lieutenant and provide guidelines for

the recruitment of assessors.

Gwinnett/Rockdale/Newton Community Service Board

7/1/05-6/30/06

Serve children and adolescents with serious emotional

disturbances and their families.

Administrative Office of the Courts

7/1/06-6/30/07

Fund the University of Georgia Law Schools' support of the

State's Judicial Education Program.

Atlanta Regional Commission

5/15/06-11/30/06

Design and develop an aging survey instrument, pre-test the

instrument in house, and conduct 1,650 telephone interviews

with 10 Atlanta Regional Commission counties with an

additional 150 in the city of Atlanta; analyze and report

survey findings.

Georgia Association of Code Enforcement

7/1/06-6/30/07

Conduct training programs for Georgia Zoning Administrators

and Code Enforcement Officials, designed to improve the

knowledge officials.

and

skills

of

local

zoning

and

code

en5f1orcement

$120,000
$47,260
$98,398 $30,000 $85,470 $71,929 $580,673 $107,819
$150,000

and Code Enforcement Officials, designed to improve the

knowledge and skills of local zoning and code enforcement

officials.

Georgia Commodity Commission for Cotton

Conduct a variety of on-farm tests and demonstrations to

evaluate practices and new technology over a range of

conditions and applications not always possible on

experiment stations.

Georgia Commodity Commission for Cotton

Improve the technical skills and cotton educational programs

of the county agents.

Georgia Commodity Commission for Peanuts

Determine the effects of tillage conservation on the

profitability of peanuts.

Georgia Commodity Commission for Peanuts

Develop and deliver educational programs on peanut

economics and marketing to help Georgia peanut producers

compete in a growing market-oriented environment.

Georgia Commodity Commission for Peanuts

Continue to print Peanut Update publications and distribute

to producers at local county peanut meetings.

Georgia Commodity Commission for Peanuts

Establish a better understanding of the dynamics and

interactions affecting peanut flavor and quality among

cultivators.

Georgia Commodity Commission for Peanuts

Identify cost-effective control strategies for acetolactate

synthase-resistant pigweed in Georgia

Georgia Commodity Commission for Peanuts

Assist in the establishment of agronomic research, on-farm

demonstrations, travel, supplies and support of educational

programs.

Georgia Department of Agriculture

Use facilities and personnel to render diagnostic services

relative to the control, diagnosis, treatment, prevention and

eradication of livestock disease.

Georgia Department of Community Affairs

Assist with start up costs of the Balances Growth Initiative, to

assist with the implementation of Region 1-4 Regional Growth

Management Program, and assist with implementation of

Department of Community Affairs' sponsored Quality

Growth Resource Teams.

52

7/1/06-6/30/07
7/1/06-6/30/07 9/1/05-8/31/06 7/1/06-6/30/07 7/1/06-6/30/07 7/1/06-6/30/07 7/1/06-6/30/07 7/1/06-6/30/07 7/1/06-6/30/07 11/1/01-6/30/07

$58,500
$16,000 $13,000 $6,000 $5,250 $15,000 $4,000 $20,000 $3,485,061 $62,412

Department of Community Affairs' sponsored Quality Growth Resource Teams.
Georgia Department of Education Plan, schedule, and deliver 2 one-week Culinary Institute I sessions for school nutrition managers; provide 36 hours of instructional lab focusing on the preparation of quality school meals that comply with the USDA's Healthy School meals initiative.
Georgia Department of Human Resources Work with the Suicide Prevention Coalition of Georgia to better understand the present practices in hospital emergency departments in Georgia and their ability to adopt and use evidence-based suicide prevention with technical assistance team proposes to survey the clinical managers of all emergency departments and psychiatric mobile response teams in Georgia.
Georgia Department of Human Resources Provide Environmental Health Specialists with training in all aspects of on-site waste water management systems including proper siting, installation, inspection, use and maintenance of conventional and advanced design.
Georgia Department of Natural Resources Produce a Landsat Thematic Mapper-based land use/land cover map from 2004-05 data to the Ecological Systems for military bases and adjacent lands, Ft. Stewart, Ft. Benning, Robins Air Force Base, Kings Bay Naval Base, Townsend Bombing Range and Ft. Gordon.
Georgia Department of Natural Resources Develop management options for riparian buffers in the coastal plain through the review of scientific literature and consultation with recognized experts.
Georgia Department of Natural Resources Provide specialized services in connection with holding a Brownsfields Program Outreach education campaign; conducting regional workshops and presentations at various locations around the state, at the rate of approximately two per month over the contract period.
Georgia Department of Natural Resources Facilitate town hall meetings during 2006 and develop supporting materials and reports for meetings for statewide water planning for different regions of the state.

2/28/06-9/30/06 4/1/06-3/31/07
4/1/06-3/31/07 3/31/06-4/1/07 5/10/06-9/30/06 3/1/05-9/30/07 5/16/06-6/30/07

53

$16,675 $5,000
$60,638 $76,000 $20,000 $152,000 $230,500

Georgia Department of Natural Resources Review the conditions for approval of the State's coastal nonpoint source program as related to the use of 401 water quality certification; the emphasis will be on management measures for hydromodification such as channelization, impoundments and streambank stabilization as well as new and existing urban development, wetlands and riparian areas.
Georgia Office of Planning and Budget Develop curricula in accounting in cooperation with the Office of Planning Budget, State Department of Audits, the State Merit System of Personnel Administration, and the State Government Financial Management Training Task Force.
Georgia Office of Planning and Budget Provide conferences, training and certificate programs for the Georgia Association of Code Enforcement membership.
Georgia Humanities Council Assist the Georgia Museum of art with funding a film series in conjunction with the exhibition "Woven Jewels from the Black Tents" and the related "Tribal Weavings of Iran."
Georgia Vocational Staff Development Provide staff development workshops to Georgia Vocational Staff Development members and qualifying organizations.

4/20/06-9/30/06
7/1/06-6/30/07 7/1/06-6/30/07 7/1/06-9/30/06 7/1/06-6/30/07

Georgia Southern University Georgia Rural Economic Development Center Develop Evans County Workplace Wellness program

3/10/06 4/30/06

$9,850
$185,250 $600,000
$1,757 $93,719 $5,765

TOTAL AMOUNT SEPTEMBER 2006 TOTAL AMOUNT FY 2007 TO DATE TOTAL AMOUNT FY 2006 TO SEPTEMBER TOTAL AMOUNT FY 2006

$ 7,366,082 $ 7,494,348 $ 8,760,829 $ 33,452,938

COMMITTEE ON REAL ESTATE AND FACILITIES

The Committee on Real Estate and Facilities met on Tuesday, September 12, 2006, at approximately 2:10 p.m. in the Board Room. Committee members in attendance were Chair Richard L. Tucker, Vice Chair Julie Ewing Hunt, and Regents Hugh A. Carter, Jr., Robert F. Hatcher, Felton Jenkins, Donald M. Leebern, Jr., and Benjamin J. Tarbutton III. Board Chair Alan Vigil was also in attendance. Chair Tucker reported to the Board on Wednesday that the Committee had reviewed nine items, seven of

54

which required action. With motion properly made, seconded, and unanimously adopted, the Board approved and authorized the following:
1. Authorization of Project, Renovation of Hefner Residence Hall, Atlanta, Georgia Institute of Technology
Approved: The Board authorized Project No. BR-30-0702,"Renovationof Hefner ResidenceHall," Georgia Institute of Technology ("GIT"), with a total project budget of approximately $4.0 million from GIT Auxiliary Housing funds.
Understandings: As part of its proposed revised "Student Housing Comprehensive Plan 1998," GIT includes the incorporation of a larger housing renovation program that will renovate eight residence halls between 2002 and 2014. Under the current plan, six residence halls have been renovated (Harrison-1998,Howell-1999,Fulmer-2000,Caldwell-2002,Folk-2004, Armstrong-2005), and Hefner Residence Hall is the next planned renovation project.
Hefner Residence Hall was constructed in 1972. The residence hall currently houses male students and is three and one-half stories with a brick veneer cast-in-place concrete structure with aluminum windows. The project will involve the renovation of approximately 22,300 gross square feet. The facility has a total capacity of 128 beds. The scope of work includes mechanical, plumbing, and electrical system replacement, refurbishment of water damaged areas, roof replacement, as well as interior finishes and furniture upgrades. The renovation also includes the installation of a new sprinkler system. The existing room style and ancillary area configuration will remain the same. The estimated construction cost is approximately $3,300,000.
The University System Office staff and GIT will proceed with the selection of appropriate professional consultants in accordance with Board of Regents procedures.
2. Authorization of Project Budget Modification, Nanotechnology Research Center, Project J-77, Atlanta, Georgia Institute of Technology
Approved: The Board modified the April 2006 authorization of project budget modification of Project J-77, "Nanotechnology Research Center," Georgia Institute of Technology ("GIT"), to increase the total project budget from $85,000,000 to $93,924,804.
Understandings: The Nanotechnology Research Center ("NRC"), formerly known as the Advanced Clean Room Building, was presented to the Board by President Clough in June 2002 and added to the University System of Georgia capital project priority list. The total project cost was estimated at $80 million with the source of funding to include $35 million in private funds and $45 million in state funds. The Board indicated at the time that the project was unique and represented a potential economic value for the State of Georgia. The Governor supported moving the project forward
55

immediately, and initial funding was provided by the state in fiscal year 2005 and fiscal year 2006 totaling $7 million. In April 2006, the Board authorized the project budget to be modified from approximately $80 million to $85 million due to construction cost increases. Project design is now complete, as are all associated utility infrastructure improvements associated with the sites. Demolition of the existing buildings on the site commenced in May 2006 and will be complete in September 2006. Construction of the foundations of the NRC commenced in August 2006. The anticipated date of completion of the project is scheduled for the summer of 2008.
The project cost estimates provided by the construction manager exceeded the available budget, in part due to construction cost increases as a result of the Gulf Coast hurricanes and general construction material cost increases. In addition, the original NRC project budget was not adjusted for inflation. Therefore, GIT was required to reduce project costs and add additional funding resources.
Through a value engineeringprocess, GIT has eliminatedproject scope that does not critically impact the original program and functionality of the building to reduce the overall cost estimate. As of April 2006, GIT committed an additional $5 million in private donor funds toward the project. This current increase of $8,924,804 is also from private donor funds. The state-funded amount remains at $45 million, and the GIT commitment has increased from $40 million to $48,924,804.
3. Rental Agreement, Poultry Research Center, Athens, University of Georgia
Approved: The Board declared approximately 24,328 square feet of space located at the Poultry Research Center, South Milledge Avenue, Athens, Georgia, no longer advantageously useful to the University of Georgia ("UGA") or other units of the University System of Georgia, but only to the extent and for the purpose of allowing this space to be rented to AviGenics, Inc. for the benefit of UGA.
The Board authorized the execution of a rental agreement between the Board of Regents, Landlord, and AviGenics, Inc, Tenant, covering approximately 24,328 square feet of space located at the Poultry Research Center, South Milledge Avenue (a.k.a. Transgenic Poultry Building), Athens, Georgia, for the period July 1, 2006, through June 30, 2007, at a monthly rental of $1,150 ($13,800 per year/$0.57 per square foot per year) with option to renew on a year- to-year basis for four years.
Authorization to execute this rental agreement was delegated to the Vice Chancellor for Facilities.
The terms of this rental agreement are subject to review by the Office of the Attorney General.
Understandings: The Transgenic Poultry Building is a Georgia Research Alliance-funded project for the purpose of attracting incubator companies in the field of biotechnology, such as AviGenics. The facility has been rented to AviGenics since 2001.
56

Research conducted by AviGenics primarily involves hatching and raising chickens in a specific pathogen-free environment. This facility was specifically constructed with all equipment necessary to incubate and hatch eggs, brood chicks, and breed adult chickens in the conduct of this research.
The use of the property is in compliance with the UGA mission and physical master plan.
4. Amendments to Rental Agreements, Technology Square, Atlanta, Georgia Institute of Technology
Approved: The Board authorized the execution of an amendment to the rental agreement between Technology Square, LLC, (the "LLC") Landlord, and the Board of Regents, Tenant, for the auxiliary service space to:
Eliminate the gift of the auxiliary service space to the Board of Regents at the end of the financing period.
Eliminate the opportunity for the Board of Regents to acquire the auxiliary service space for the cumulativevalue of the lease payments plus the value of the financing instrument,should the LLC wish to offer the auxiliary service space for sale.
Grant the LLC the right to terminate the agreement at the end of any option period by providing 90 days notice of the intent to sell the hotel, including the auxiliary service space.
The Board authorized the execution of an amendment to the rental agreement between the LLC, Landlord, and the Board of Regents, Tenant, for the Economic Development Institute to require the following:
Should the LLC terminate the auxiliary services agreement prior to the end of the last option period under that agreement, then this agreement will be revised to increase the space rented to approximately 48,572 square feet with rent remaining the same.
Should this agreement be revised to increase the space rented to approximately48,572 square feet, then subrent approximately 12,143 square feet to the LLC for a rent amount equal to the rent paid by the Tenant for the space (if any) plus all costs associated with occupancy by the LLC of the space.
The LLC agrees to gift the entire Economic Development Institute building to the Board of Regents at the end of the financing period.
Authorization to execute these amendments to rental agreements was delegated to the Vice
57

Chancellor for Facilities.
The terms of these amendments to the rental agreements are subject to review and legal approval of the Office of the Attorney General.
Understandings: The Economic Development Institute building was constructed to include four floors instead of three as originally contemplated.
At the end of the financing period, the auxiliary services space will be retained by the LLC.
All remaining terms of the rental agreements as approved by the Board in May 2001 and amended by the Board in May 2005 remain the same.
5. Ground Lease and Rental Agreement, Student Housing, Phase II, Tifton, Abraham Baldwin Agricultural College
Approved: The Board declared approximately 8.78 acres of real property on the campus of Abraham Baldwin Agricultural College ("ABAC"), no longer advantageously useful to ABAC or other units of the University System of Georgia but only to the extent and for the purpose of allowing this real property to be leased to Second ABAC, LLC, (the "LLC") for the purpose of constructing and owning housing facilities containing approximately 489 student housing beds, parking for approximately 474 cars, and site amenities.
The Board authorized the execution of a ground lease, including necessary access, use, and construction easements and encroachments, between the Board of Regents, Lessor, and the LLC, Lessee, for the above-referencedapproximately 8.78 acres of real property on the campus of ABAC for a period not to exceed 32 years (not to exceed 30 years from the date the LLC obtains a certificate of occupancy and providing a construction period of not more than two years) with an option to renew for up to an additional five years should there be debt outstanding at the end of the original ground lease term, for the purpose of constructing and owning housing facilities containing approximately 489 student housing beds, parking for approximately 474 cars, and site amenities.
The Board authorized the execution of a rental agreementbetween the LLC, Landlord, and the Board of Regents, Tenant, for the above-referenced housing facilities, associated parking and site amenities for the period commencing on the first day of the first month after the LLC obtains a certificate of occupancy but not earlier than August 1, 2007 and ending the following June 30 at a monthly rent not to exceed $72,000 ($864,000 per year annualized) with options to renew on a year-to-year basis for up to 30 one-year periods ( the total not to exceed 30 years from the date of the certificate of occupancy) with rent increasing no more than 3% for each option period exercised.
Authorization to execute the rental agreement was delegated to the Vice Chancellor for Facilities.
58

The terms of these agreements are subject to review and legal approval of the Office of the Attorney General.
Understandings: In October 1997, the Board passed a student housing policy that requires the preparation of a comprehensive plan for student housing together with a financial plan to support housing program objectives. ABAC has developed a comprehensive plan that is consistent with the policy.
In January 2006, Interim President Tom Call presented the master plan for ABAC. The master plan incorporated the comprehensive housing plan and recommended the development of new student housing on the Lake Baldwin site.
In August 2006, the Vice Chancellorfor Facilities,Linda M. Daniels, and President David C. Bridges presented to the Real Estate and Facilities Committee, as an information item, the need to obtain new student housing at ABAC through a privatization process.
The ABAC plan will provide 489 new student housing beds in suite-style housing units.
At the end of the term of the ground lease, the real property, all improvements, and any accumulated capital reserves will become the property of the Board of Regents.
6. Acceptance of Real Property and Grant of Easement, Middleground Road, Savannah, Armstrong Atlantic State University
Approved: The Board accepted approximately 1.63 acres of unimproved real property consisting of the unopened right of way of Middleground Road, Savannah, from the City of Savannah (the "City") for the use and benefit of Armstrong Atlantic State University ("AASU").
The legal details involved with accepting this real property will be handled by the Office of the Attorney General.
The Board declared approximately 1.21 acres of real property on the campus of AASU to be no longer advantageously useful to AASU or other units of the University System of Georgia but only to the extent and for the purpose of granting a non-exclusive easement to the City for water and sewer lines.
The Board authorized the execution of a nonexclusive easement with the City for the abovereferenced real property.
The terms of this easement are subject to review and legal approval by the Office of the Attorney
59

General.

Understandings: The property is an unopened right-of-waybetweenBoard of Regents property and property acquired by the Board of Regents in April 2005.

Acquisition of this real property is consistent with the AASU master plan.

An environmental site assessment has been conducted and indicates no significant adverse environmental issues.

There are no known reversions, restrictions, or adverse easements on the real property.

In surveying this real property, it was discovered that water and sewer lines thought to be in the unopened right of way are on the real property acquired by the Board in April 2005. A grant of easement for these utility lines is necessary.

7. Resolutions, 2006F and 2006G General Obligation Bond Issue, Georgia State Financing and Investment Commission, University System of Georgia

Approved: The Board adopted Resolutions prepared by the Revenue Division of the Department of Law covering the issuance of 2006F and 2006G General Obligation Bonds ("G. O. Bonds") by the State of Georgia through the Georgia State Financing and Investment Commission for use in funding projects for the University System of Georgia.

The Revenue Division of the Office of the Attorney General prepared on behalf of the Board of Regents a Resolution to cover the sale of 2006F G. O. Bonds for the following projects:

J-29 Student Center Georgia Perimeter College

$ 20,000

GRA-0248R R & D Infrastructure for Research Universities Georgia Research Alliance TOTAL

$ 19,035,000 $ 19,055,000

The Revenue Division of the Office of the Attorney General prepared on behalf of the Board of Regents a Resolution to cover the sale of 2006G G. O. Bonds for the following projects:

J-87 Major Repairs and Renovations University Systemwide

$60,000,000

J-39 Parks Nursing/Health Sciences Renovation

60

Georgia College & State University
J-40 Health Wellness and Lifelong Learning Center University of West Georgia
J-41 Library/Technology Center North Georgia College & State University
J-45 Teaching Laboratory Building Georgia State University
J-72 Infrastructure Upgrades Southern Polytechnic State University
J-93 Renovation of Administration Bldg/School of Business Clayton State University
J-96 Student Success and Retention Center Gordon College
J-105 Renovation of Civil Engineering Building Georgia Institute of Technology
J-106 Infrastructure Utilities Corridor and Road East Georgia College
J-107 Infrastructure Improvements Coastal Georgia Community College
J-108 Campus Infrastructure Upgrades University of Georgia
J-109 Central Energy Plan Expansion Augusta State University
J-110 Renovation of Historic Hill Hall Savannah State University
J-111 Renovation of Historic Education Building North Georgia College & State University
61

$ 9,115,000 $ 24,265,000 $ 18,440,000 $ 10,000,000 $ 2,000,000 $ 305,000 $ 4,000,000 $ 5,000,000 $ 1,400,000 $ 345,000 $ 400,000 $ 200,000 $ 3,800,000 $ 4,700,000

J-112 Renovation and Addition to the Callaway Building University of West Georgia
J-113 Renovation and Addition of Foy Georgia Southern University
J-114 Marine Research Building Skidaway Institute of Oceanography
J-115 Addition to Building "A" Waycross College
J-116 Addition to Burnett Hall Armstrong Atlantic State University
J-117 Academic Building at Whitfield Career Academy Dalton State College
J-118 Herty Hall Addition Georgia College & State University
J-119 Animal and Dairy Livestock Facility, Oglethorpe County University of Georgia
J-121 Student Center Renovations and Addition Gainesville State College
J-122 Renovations to Social Science, Library & Wilson Bldg. Kennesaw State University
J-123 Renovation of Dillard Hall Middle Georgia College
GPL-13R Auburn Public Library Georgia Public Library System
GPL-14R Henry County McDonough Public Library Georgia Public Library System
GPL-15R Tifton-Tift County Public Library Georgia Public Library System
62

$ 4,700,000 $ 5,000,000 $ 525,000 $ 200,000 $ 525,000 $ 375,000 $ 500,000 $ 525,000 $ 525,000 $ 525,000 $ 325,000 $ 810,000 $ 1,035,000 $ 1,765,000

GPL-18R Post Road Branch Library, Forsyth County Public Library System Georgia Public Library System

GPL-20R Hall County Public Library Georgia Public Library System

GMC-8 Academic Building (Design & Site Preparation) Georgia Military College

TOTAL

$ 2,000,000
$ 2,000,000
$ 1,355,000 $166,660,000

8. Information Item: Update on Proposed New Strategic Capital Allocation Process
The Vice Chancellor for Facilities, Linda M. Daniels, presented an update to the Committee of the Whole on the status of discussionsconcerning the proposed new StrategicCapital AllocationProcess for the University System of Georgia. (See pages 9 to 14.)
9. Information Item: Update on the Sale of the Chancellory
The Vice Chancellor for Facilities, Linda M. Daniels, updated the Board on the recent sale of the Chancellory. She reported that the closing occurred on August 25, 2006, at a price of $2 million.
COMMITTEE ON FINANCE AND BUSINESS OPERATIONS
The Committee on Finance and Business Operations met on Tuesday, September 13, 2006, at approximately 2:30 p.m. in the Board Room. Committee members in attendance were Chair Robert F. Hatcher, Vice Chair Hugh A. Carter, Jr., and Regents Julie Ewing Hunt, Felton Jenkins, Donald M. Leebern, Jr., Benjamin J. Tarbutton III, and Richard L. Tucker. Vice Chair Carter reported to the Board on Wednesday that the Committee had reviewed ten items, all of which required action. He commended the staff, particularly the Associate Vice Chancellor for Human Resources, William H. Wallace, Jr., for a job well done on negotiatingthe University System of Georgia healthcarecontracts. With motion properly made, seconded, and unanimously adopted, the Board approved and authorized the following:
1. Approval of Continuation of the Georgia Department of Community Health Contract with Beech Street Corporation
Approved: The Board approved the continuation of the administrative services agreement between the Board of Regents, the Georgia Department of Community Health ("DCH"), and Beech Street Corporation ("Beech Street"). The requested contract extension will be for the period from
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January 1, 2007, through December 31, 2007.
Background: Beech Street Corporation is the vendor for the preferredprovider organization("PPO") healthcare plan for the national network service area. The national PPO service area includes a comprehensive network of healthcare providers that have signed direct contracts with Beech Street to provide medical treatment and services at discounted rates.
In the agreement signed between DCH and Beech Street, the amount of the administrative fee was agreed to be 5% of "savings." "Savings" is defined in the contract as the difference between the billed charges from the PPO provider and the application of the Beech Street discounted fee schedule. Notwithstanding the percent-of-savingspayment methodology,the maximum administrativefee that the University System of Georgia will pay to Beech Street for access to its national network is $0.35 per contract per month.
The administrative fee for the University System of Georgia for plan year 2007 remains unchanged from the administrative fee that was approved for plan year 2006. As a matter of historical information, the proposed administrative fee for plan year 2007 remains unchanged from plan year 2002, the first year that the Board of Regents participated in a contractual arrangement with Beech Street Corporation for the provision of these services.
2. Approval of Continuation of the Health Insurance Administrative Services Contract with WellPoint Health Networks, Inc.
Approved: The Board approved the continuation of the health insurance administrative services contract with WellPoint Health Networks, Inc. ("WellPoint") from January 1, 2007, through December 31, 2007. The health insurance administrative services contract will be administered by WellPoint's wholly owned subsidiary, Blue Cross Blue Shield of Georgia, Inc.
Background: The administrative fee for the University System of Georgia PPO and indemnity healthcare plans for plan year 2007 is $22.69 per employee per month. The plan year 2006 administrative fee was $21.61 per employee per month. The plan year 2007 administrative fee is 5% higher than the plan year 2006 administrative fee.
The plan year 2007 administrativefee is significantlyless than the fee that could have been requested by WellPoint. In the agreement that was signed between the Department of Community Health and WellPoint on behalf of the Board of Regents in June 2004, WellPoint could have contractually requested an 8% increase in its administrative fees for plan year 2007.
3. Approval of Continuation of the Dental Insurance Administrative Services Contract with WellPoint Health Networks, Inc.
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Approved: The Board approved the continuation of the dental insurance administrative services contract with WellPoint Health Networks, Inc. ("WellPoint") from January 1, 2007, through December 31, 2007. The dental insurance administrative services contract will be administered by WellPoint's wholly owned subsidiary, Blue Cross Blue Shield of Georgia, Inc.
Background: The administrative fee for the University System of Georgia indemnity dental program for plan year 2007 is $2.78 per employee per month. The plan year 2006 administrative fee was $2.65 per employee per month. The plan year 2007 administrative fee is 5% higher than the plan year 2006 administrative fee.
The plan year 2007 administrative fee is significantly less than the percentage increase that could have been requested by WellPoint. In the agreement that was signed between the Department of Community Health and WellPoint on behalf of the Board of Regents in June 2004, WellPoint could have contractually requested a 7% increase in its administrative fees for plan year 2007.
4. Approval of Continuation of the Administrative Services Contract Between the Board of Regents, the Georgia Department of Community Health, and Unicare
Approved: The Board approved the continuation of the administrative services agreement between the Board of Regents, the Georgia Department of Community Health ("DCH"), and Unicare. The requested contract extension will be for the period of January 1, 2007, through December 31, 2007.
Background: The medical management services that are provided by Unicare for the University System of Georgia include the following: hospital inpatient precertification, alternative medical care, medical case management, outpatient review services, precertification of indemnity healthcare plan participants for behavioral health services, MedCall, PPO Network Channeling, access and utilization of the Asthma Disease State Management Program, access and utilization of the Diabetes Disease State Management Program, access and utilization of the Oncology Disease State Management Program, access and utilization of the Congestive Heart Failure Disease State Management Program, access and utilization of the Cardiovascular Disease ("CVD") with stroke overlay Disease State Management Program, access and utilization of the Obesity Management Disease State Management Program, and compliance with the state-mandated Consumer's Health Insurance Protection Act.
The Board of Regents preferred provider organization ("PPO"), PPO Consumer Choice, and indemnity healthcare plans are the only State of Georgia governmentemployer programs to offer the Obesity Management Disease State Management Program.
The plan year 2007 Unicare composite administrative fee for the Board of Regents will be $6.57 per contract per month. The current Unicare administrative fee is $6.71 per contract per month. The proposed plan year 2007 Unicare composite fee represents a 2% decrease in the composite fee paid
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for plan year 2006, which represents an estimated $56,000 in savings.
The University System of Georgia will continue to participate in the Unicare national transplant network. The Unicare national program provides coverage for heart, liver, lung, and bone marrow transplants. For plan year 2007, the System will pay Unicare an access fee of $6,750 for each of these respective types of transplants. The Unicare national transplant network access fee for plan year 2007 will remain unchanged from plan year 2006.
5. Approval of Continuation of the Administrative Services Contract Between the Board of Regents, the Georgia Department of Community Health, and Magellan Health Services
Approved: The Board approved the continuation of the administrative services agreement between the Board of Regents, the Georgia Department of Community Health ("DCH"), and Magellan Health Services. The requested contract extension will be for the period of January 1, 2007, through December 31, 2007.
Background: Magellan Health Services provides network access, utilization review, and managed care for preferred provider organization("PPO") plan participants who require behavioral healthcare services. Under the existing contract, the 2007 administrative fee may be determined by the amount of the increase in the Consumer Price Index ("CPI"). For plan year 2007, the CPI was determined to be an increase of 4.1%. Instead, Magellanelected not to request an increaseat the CPI rate of 4.1%
The plan year 2006 administrative fee for the University System of Georgia was $2.16 per contract per month. For plan year 2007, there will be no increase in the current administrative fee. It will remain at $2.16 per contract per month.
6. Approval of Continuation of the Administrative Services Contract Between the Board of Regents, the Georgia Department of Community Health, and 1st Medical Network
Approved: The Board approved the continuation of the administrative services agreement between the Board of Regents, the Georgia Department of Community Health, and 1st Medical Network. The requested contract extension will be for the period of January 1, 2007, through December 31, 2007.
Background: 1st Medical Network is the vendor for the Board of Regents Preferred Provider Organization("PPO") healthcareplan for the Georgia network servicearea. The GeorgiaPPO service area includes a comprehensive network of healthcare providers that have signed direct contracts with 1st Medical Network to provide medical treatment and services at discounted rates.
The administrative fee for the University System of Georgia for plan year 2007 will be $1.59 per
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contract per month. This fee has remained unchanged since 2001, the first year that the Board of Regents offered its employees, retirees, and dependents access to a PPO healthcare plan option.
7. Approval of Continuation of the Administrative Services Contract Between the Board of Regents, the Georgia Department of Community Health, and Express Scripts, Inc.
Approved: The Board approved the continuation of the administrative services agreement between the Board of Regents, the Georgia Department of Community Health ("DCH"), and Express Scripts, Inc. ("Express Scripts"). The requested contract extension will be for the period of January 1, 2007, through December 31, 2007.
The Board of Regents also approved the payment of an additional Express Scripts administrative fee for costs associated with ensuring compliance with the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 ("MMA").
Background: In August 2000, the DCH executed a pharmacy benefit management contract with Express Scripts on behalf of the Board of Regents. The contract includes pharmacy cost-containment strategies and pharmaceutical rebate provisions that benefit the University System of Georgia.
For plan year 2007, the Board of Regents will continue to partner with Express Scripts to access and utilize its Progressive Drug Management Program ("PDMP"). The PDMP is a prescription drug protocol management resource that promotes the appropriate utilization of first line medications. PDMP is a clinicallyjustified programthat will assist physicians prescribethe most appropriate and cost-efficient therapeutic prescription drugs for their patients.
Under the PDMP, a physician will usually prescribe a proven, less expensive medication that is known to be safe and efficientas an initial treatment strategy. If an initial prescribed medicationdoes not achieve the desired outcome, a physician may progress to a different treatment strategy. A prior authorization may be required before a member will be approved to receive a new prescription medication.
The administrative fee for the University System of Georgia for plan year 2007 is $0.38 per electronically filed pharmacy claim and $1.50 per paper-filed pharmacy claim. There is no increase in the administrative fee from the rate that has been charged since the initial implementation of our pharmacy benefit management program in 2001.
For Medicare-eligible covered members participating in the University System's PPO and/or indemnity healthcare plan options, MMA became effective January 1, 2006. MMA expanded services for Medicare beneficiaries and has been deemed to be the most significant recent development affecting prescription drug coverage in the United State. Among its major provisions is Part D, which offers Medicare enrollees an optional outpatient prescription drug benefit.
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When the MMA became effective January 1, 2006, an estimated 43 million Medicare beneficiaries were thoughtto be eligible for Medicare prescription drug coverage by the federalgovernment.It was believed that approximately 39 million Medicare beneficiaries (91%) would elect to receive drug coverage through either a federally approved Center for Medicare and Medicaid Services ("CMS") prescription drug plan or through an employer's existing healthcare/pharmacy benefit plan. If a Medicare-eligible beneficiary elected to continue to participate in his/her employer's pharmacy benefit plan, the employer would be eligible to receive a retiree drug subsidy from CMS.
For plan year 2006, the Board of Regents elected to receive the 28% employer subsidy for all selfinsured Medicare-eligible healthcare plan members who participated in the Board of Regents pharmacy benefit management program. The Board of Regents approved contracting with Express Scripts to transmit Medicare-eligible member data to CMS. For plan year 2006, the Board of Regents received more than $3 million in CMS employer subsidies for May, June, and July 2006. If this trend continues, the Board of Regents should expect to receive more than $10 million annually in employer subsidies from CMS.
Staff proposed that the Board of Regents apply to receive the 28% employer subsidy for plan year 2007. They recommended that the Board of Regents approve paying Express Scripts a plan year 2007 administrative fee of $50,000 to provide Medicare Part D member eligibility feeds to CMS. The Board of Regents paid Express Scripts $30,000 for plan year 2006 for these services. It is not uncommon for employer plans to be charged up to $100,000 per year for these services.
8. Approval of the Continuation of the University System of Georgia Indemnity Health Insurance Plan in the Blue Cross and Blue Shield National Plan of Participating Providers
Approved: That the Board approved the continuation of its agreement with Blue Cross and Blue Shield of Georgia to access its national plan of participating healthcare providers. The requested contract extension will be for the period of January 1, 2007, through December 31, 2007.
Background: Effective January 1, 2003, the Board of Regents approved the recommendation for the University System of Georgia indemnity healthcare plan to access the Blue Cross and Blue Shield national plan of participating providers.
The Blue Cross and Blue Shield national plan of participating providers is known as the Interplan Teleprocessing System ("ITS"). The ITS is a national network of providers that contract with local Blue Cross and Blue Shield plans. The ITS network is available to all University System of Georgia indemnity healthcare plan participants, who access/require medical services while residing/working/ traveling outside of the State of Georgia.
The administrative fee for access to the ITS network will remain at $11 per facility claim processed
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and $5 per professional claim processed for plan year 2007. These administrative fees remain unchanged from those that were charged when the program was initially implemented in 2003.
9. Approval of the University System of Georgia Employer Contribution for Basic Life Insurance for Plan Year 2007
Approved: The Board approved the continuation of its agreement with Cigna Group Insurance to administer the basic life insurance and supplemental life insurance programs for the University System of Georgia. The requested contract extension will be for the period of January 1, 2007, through December 31, 2007.
Background: Cigna Group Insurance administers the life insurance program for the University System of Georgia. The University System of Georgia pays the entire premium for the basic life insurance program. Employee participation in the supplemental life insurance is voluntary, and the cost for such participation is borne entirely by the employee.
There will be no increasein basic life insurance premiumsor in supplemental life insurance premiums for plan year 2007.
10. Approval of the Continuation of the University System of Georgia in the Blue Cross National Network of Participating Dental Providers
Approved: The Board approved the continuation of the agreement with Blue Cross and Blue Shield of Georgia, Inc. to access the Blue Cross National Network of participating dental providers. The contract extension is for the period of January 1, 2007, through December 31, 2007.
Background: The Blue Cross National Network of participating dental providers contracts with local Blue Cross and Blue Shield plans. The Blue Cross National Network is available to all University System of Georgia indemnity dental plan participants who access/require services while residing/working/traveling inside and outside of the State of Georgia.
There will be no separate administrative fee charged to the University System of Georgia for access to the Blue Cross National Network.
UNFINISHED BUSINESS
There was no unfinished business at this meeting.
NEW BUSINESS
Chair Vigil called upon the Secretary to the Board, Gail S. Weber, to make two honorary degree
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recommendations to the Board.
Secretary Weber announced that President G. Wayne Clough at the Georgia Institute of Technology had nominated Dr. Catherine Brchignac and Mr. Cecil J. "Pete" Silas for honorary degrees. On behalf of President Clough, Secretary Weber submitted these nominations for the Board's approval. With motion properly made, seconded, and unanimously adopted, the Board approved the two honorary degrees.
PETITIONS AND COMMUNICATIONS
Secretary Gail S. Weber announced that at 11:00 a.m., buses would begin to shuttle the Regents and spouses to the Rialto Theatre for the luncheon before the Chancellor's inauguration at the Capitol.
Secretary Weber then announced that the next Board meeting would take place on Tuesday, October 10, and Wednesday, October 11, 2006, on the campus of Fort Valley State University.
EXECUTIVE SESSION
At approximately 9:55 a.m. on Wednesday, September 13, 2006, Chair Vigil called for an Executive Session for the purpose of discussing personnel and compensation issues. With motion properly made and variously seconded, the Regents who were present voted unanimously to go into Executive Session. Those Regents were as follows: Chair Vigil, Vice Chair William H. Cleveland and Regents Hugh A. Carter, Jr., Julie Ewing Hunt, Felton Jenkins, W. Mansfield Jennings, Jr., James R. Jolly, Donald M. Leebern, Jr., Elridge W. McMillan, Doreen Stiles Poitevint, Willis J. Potts, Jr., Wanda Yancey Rodwell, J. Timothy Shelnut, Benjamin J. Tarbutton III, and Richard L. Tucker. Also in attendance were ChancellorErroll B. Davis, Jr.; the Chief of Staff, Robert E. Watts; and the Secretary to the Board, Gail S. Weber. In accordance with O.C.G.A. 50-14-4, an affidavit regarding this Executive Session is on file with the Chancellor's Office.
At approximately 10:40 a.m., Chair Vigil reconvened the Board meeting in its regular session and announced that in the Executive Session the Board had unanimously elected Ms. Julia M. Murphy as Secretary to the Board of Regents, effective October 1, 2006. Chair Vigil also announced that the Board had approved the Chancellor's recommendation of a leave of absence for up to one year for Chief Operating Officer and Executive Vice Chancellor for Administration and Fiscal Affairs, Corlis P. Cummings.
ADJOURNMENT
There being no further business to come before the Board, the meeting was adjourned at approximately 10:45 a.m. on September 13, 2006.
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s/ Allan Vigil Chair, Board of Regents University System of Georgia

s/ Julia M. Murphy Secretary, Board of Regents University System of Georgia

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