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Docket: Board of Regents Board of Regents December 2018 December 14, 2018 15 min following adjournment of GOV - 12:00 p.m. Boardroom, McNamara Alumni Center BOR - DEC 2018 1. Introductions Docket Item Summary - Page 3 2. Recognitions Docket Item Summary - Page 4 3. Approval of Minutes - Action Minutes - Page 5 4. Report of the President Docket Item Summary - Page 33 5. Report of the Chair Docket Item Summary - Page 34 6. Receive & File Reports Docket Item Summary - Page 35 Quarterly Report of Grant and Contract Activity - Page 36 Annual Financial Report - Page 42 Annual Financial Report Presentation - Page 135 2018 Variance Analysis - Page 154 7. Consent Report - Review/Action Docket Item Summary - Page 156 Gift Report - Page 157 8. 2018 University Performance and Accountability Report Docket Item Summary - Page 177 Draft Report - Page 178 9. Report of the Committees Docket Item Summary - Page 311 10. Interview Finalist for President of the University of Minnesota Docket Item Summary - Page 312 Page 2 of 312 BOARD OF REGENTS DOCKET ITEM SUMMARY Board of Regents December 14, 2018 AGENDA ITEM: Introductions Review Review + Action Action X Discussion This is a report required by Board policy. PRESENTERS: President Eric W. Kaler PURPOSE & KEY POINTS The purpose of this item is to introduce new members of the University’s leadership community. Chris Cramer has been appointed Vice President for Research, and will oversee the University’s $940 million research enterprise across all of its campuses and facilities, including the administration of sponsored projects, compliance and regulatory functions, and technology commercialization. In 1992, Cramer became part of the faculty at the University of Minnesota’s Department of Chemistry. Over the 26 years since, he has authored over 450 scholarly journal articles and his work has received about 46,000 citations. He also served for 15 years as editor-in-chief of the scholarly journal Theoretical Chemistry Accounts and for 20 years as an associate editor for the Journal of Physical Organic Chemistry. In addition to conducting his own research, Cramer has experience working in research administration. He served as the College of Science and Engineering’s associate dean for academic affairs starting in 2013, and transitioned to associate dean for research and planning earlier this year. In the latter role, he oversaw research and compliance activities related to CSE sponsored projects totaling around $140 million per year. Page 3 of 312 BOARD OF REGENTS DOCKET ITEM SUMMARY Board of Regents December 14, 2018 AGENDA ITEM: Recognitions Review Review + Action Action X Discussion This is a report required by Board policy. PRESENTERS: President Eric W. Kaler PURPOSE & KEY POINTS The purpose of this item is to recognize Al Levine, outgoing Vice President for Research. During his tenure, he oversaw the University’s $900 million research enterprise across all its campuses and facilities, including the administration of sponsored projects, research compliance and regulatory offices, and units dedicated to economic development and technology commercialization. Dr. Levine previously served as vice provost for faculty and academic affairs; dean of the College of Food, Agricultural, and Natural Resource Sciences; department head of Food Science and Nutrition; and associate director of research; and senior career scientist at the Minneapolis VA Medical Center. Dr. Levine is a professor in the Department of Food Science and Nutrition and holds an adjunct appointment in the Department of Psychiatry. In addition, he is a member of the Food Science and Nutrition Graduate Programs. Page 4 of 312 DRAFT Year 2018-19 UNIVERSITY OF MINNESOTA BOARD OF REGENTS Finance & Operations Committee October 11, 2018 A meeting of the Finance & Operations Committee of the Board of Regents was held on Thursday, October 11, 2018 at 7:45 a.m. in the Boardroom, 600 McNamara Alumni Center. Regents present: Thomas Anderson, presiding; Richard Beeson, Linda Cohen, Michael Hsu, Dean Johnson, Peggy Lucas, David McMillan, Kendall Powell, Darrin Rosha, Randy Simonson, and Steve Sviggum. Staff present: President Eric Kaler; Chancellors Michelle Behr, Lendley Black, Lori Carrell, and Mary Holz-Clause; Senior Vice President Brian Burnett; Vice Presidents Michael Berthelsen, Kathryn Brown, Bernard Gulachek, Matt Kramer and Michael Goh; General Counsel Douglas Peterson; Executive Director Brian Steeves; Associate Vice Presidents Bill Paulus, Julie Tonneson, and Michael Volna. Student Representatives present: Marta Dean and James Pathoulas. The docket materials for this meeting are available here. PRESIDENT’S RECOMMENDED FY 2020-2021 BIENNIAL BUDGET REQUEST Regent Anderson invited President Kaler, Senior Vice President Burnett, Associate Vice President Tonneson, and Vice President Kramer, to present for action the President’s recommended FY 2020- 2021 biennial budget request, as detailed in the docket. The docket materials for this item begin on page 4. The closed captioned video of this item is available here. A motion was made and seconded, and the committee voted unanimously to recommend approval of the resolution related to the State Biennial Budget Request for FY 2020-21. PRESIDENT’S RECOMMENDED SIX-YEAR CAPITAL PLAN AND 2019 STATE CAPITAL REQUEST Regent Anderson invited President Kaler, Senior Vice President Burnett, and Vice President Berthelsen to present for action the President’s recommended six-year capital plan and 2019 state capital request, as detailed in the docket. The docket materials for this item begin on page 12. The closed captioned video of this item is available here. Finance & Operations Committee October 11, 2018 Page 5 of 312 DRAFT A motion was made and seconded, and the committee voted unanimously to recommend approval of the resolution related to the 2018 Six-Year Capital Plan and the resolution related to the 2019 State Capital Request. TWIN CITIES UNDERGRADUATE NONRESIDENT/NON-RECIPROCITY TUITION UPDATE Regent Anderson invited President Kaler, Senior Vice President Burnett, Associate Vice President Tonneson, and Robert McMaster, Vice Provost, Undergraduate Education, to present an update on Twin Cities undergraduate nonresident/non-reciprocity tuition, as detailed in the docket. The docket materials for this item begin on page 48. The closed captioned video of this item is available here. FY 2020 BUDGET VARIABLES AND LEVERS Regent Anderson invited President Kaler, Senior Vice President Burnett, and Associate Vice President Tonneson to present for discussion the FY 2020 budget variables and levers and for review the resolution related to FY 2020 Twin Cities undergraduate nonresident/non-reciprocity tuition rate, as detailed in the docket. The docket materials for this item begin on page 71. The closed captioned video of this item is available here. COLLECTIVE BARGAINING AGREEMENT: LAW ENFORCEMENT LABOR SERVICES Regent Anderson invited Vice President Brown and Patti Dion, Senior Director, Office of Human Resources, to present for review and action a collective bargaining agreement with Law Enforcement Labor Services, as detailed in the docket. The docket materials for this item begin on page 104. The closed captioned video of this item is available here. A motion was made and seconded, and the committee voted unanimously to recommend approval of the resolution related to the proposed labor agreement with Law Enforcement Labor Services. COLLECTIVE BARGAINING AGREEMENT: INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS LOCAL 292 Regent Anderson invited Vice President Brown and Patti Dion, Senior Director, Office of Human Resources, to present for review and action a collective bargaining agreement with International Brotherhood of Electrical Workers Local 292, as detailed in the docket. The docket materials for this item begin on page 107. The closed captioned video of this item is available here. Finance & Operations Committee October 11, 2018 Page 6 of 312 DRAFT A motion was made and seconded, and the committee voted unanimously to recommend approval of the resolution related to the proposed labor agreement with International Brotherhood of Electrical Workers Local 292. CAPITAL BUDGET AMENDMENT: ICE RINK REFRIGERANT AND HVAC REPLACEMENT, SPORTS AND HEALTH CENTER (DULUTH CAMPUS) Regent Anderson invited Marc Partridge, University Architect, to present for action an amendment to the FY 2019 Annual Capital Improvement Budget for the Ice Rink Refrigerant and HVAC Replacement, Sports and Health Center, Duluth campus, as detailed in the docket. The docket materials for this item begin on page 110. The closed captioned video of this item is available here. A motion was made and seconded, and the committee voted unanimously to recommend approval of the amendment to the FY 2019 Annual Capital Improvement Budget for the Ice Rink Refrigerant and HVAC Replacement, Sports and Health Center, Duluth campus. REAL ESTATE TRANSACTIONS Regent Anderson invited Assistant Vice President Leslie Krueger to present for review the sale of 24.17 acres, Aurora Oregon Research Station, as detailed in the docket. The docket materials for this item begin on page 113. The closed captioned video of this item is available here. Regent Rosha proposed moving the item from review to review and action. There was no objection. A motion was made and seconded, and the committee voted unanimously to recommend approval of the sale of 24.17 acres, Aurora Oregon Research Station. CONSENT REPORT President Kaler and Senior Vice President Burnett presented the revised version two Consent
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