Minutes for the Utah State Board of Regents, December 18, 1979

Minutes of meeting, Utah State Board of Regents, Alta Club, 100 East South Temple Street, Salt Lake City, Utah, December 18, 1979

MINUTES OF A SPECIAL MEETING OF THE UTAH STATE BOARD OF REGENTS Alta Club, 100 East South Temple Street, Salt Lake City, Utah December 18, 1979 CONTENTS Page Roll Call 101 Capital Facilities Priorities - 1980-81 102 St. Benedict's Hospital 103 Funding Enrollment Increases - Utah Technical College at Provo 103 Utah Guaranteed Student Loan Program 104 Resolution of Condolence to Family of Sherman P. Lloyd 106 Calendar of 1980 Board Meetings 106 Adjournment 106 101 MINUTES OF A SPECIAL MEETING OF THE UTAH STATE BOARD OF REGENTS Alta Club, 100 East South Temple Street, Salt Lake City, Utah December 18, 1979 Board Members Present Donald B. Holbrook, Chairman Rex G. Plowman, Vice Chairman Peter W. Billings Ralph S. Blackham W. Hughes Brockbank Kem C. Gardner Jay Dee Harris Alex P. Hurtado Mary D. Lunt Neal A. Maxwell (arrived 1:30 p.m.) Robert L. Newey Roy W. Simmons Cyndi Woodbury Board Members Excused J. Lynn Dougan George C. Hatch Luke G. Pappas Office of the Commissioner Institutional Officials Present Utah State University President StanfordfCazier Weber State College President Rodney H. Brady College of Eastern Utah President Dean M. McDonald Utah Technical College at Provo President Wilson W. Sorensen Others Present Thomas C. Anderson, Assistant Attorney General Kent W. Bishop, State Budget Officer William H. Speckman, State Systems Planning Lavor K. Chaff in, Deseret News John Cummins, Salt Lake Tribune T. H. Bell, Commissioner Leon R. McCarrey, Deputy Commissioner Ed Bradley, Acting Associate Commissioner Robert M. Worthington, Associate Commissioner Harden R. Eyring, Assistant Commissioner Joyce B. Fox, Administrative Secretary Carlie Lines, Administrative Assistant Edward J. Peters, Information Officer * * * The members gathered at the Alta Club at 12:00 noon and luncheon was served. Chairman Donald B. Holbrook called the meeting to order at 12:20 p.m. and presented the following items of business: 102 Capital Facilities Priorities - 1980-81 Chairman Holbrook reported that, in accordance with a motion adopted at the meeting of November 16, 1979 (Minutes, page 87), a meeting had been arranged with State Building Board personnel, December 6, 1979, to discuss capital facilities priorities for recommendation to the 1980 Legislature. In attendance were Chairman Holbrook, Regent Dougan, Commissioner Bell and Associate Commissioner Worthington representing the State Board of Regents, and Chairman Claude E. Summerhays, Director Nathan Woolley and Deputy Director William D. Jones representing the State Building Board. The State Building Board representatives explained that their deviation from the capital facilities priorities for higher educa-tion as submitted by the State Board of Regents resulted from a shift in procedures to a system incorporating eight separate lists rather than one comprehensive capital facilities priority list. It was decided to turn the matter to the two staffs for resolution. On December 7, 1979, the above representatives held a meeting with Governor Matheson, which was also attended by Regent Hatch and by State Budget Director Jed Kee. Hie Governor endorsed the procedures being followed and the efforts of the two boards to resolve differences. The attitude at both meetings, Chairman Holbrook said, was cordial and cooperative. Subsequently, the two staffs held lengthy deliberations and the judgment was made to return the State Building Board recommendations to the original State Board of Regents priorities. The requested funding level remains at $17.9 million for all state institutions and agencies including higher education. Commissioner Bell stated that Weber State College had extended excellent cooperation in this matter, and he expressed appreciation to President Brady for his support of the Regents' position. Associate Commissioner Worthington distributed and reviewed materials, including a memorandum of agreement and a revised composite list of recommended capital facilities priorities for 1980 as drawn by the two staffs and approved by the State Building Board on December 13, 1979. President Cazier expressed disappointment that an item for furnish-ings and equipment for the new Fine Arts Center at Utah State University no longer appeared on the priority list. Commissioner Bell expressed sympathy but explained that the staff stood by the action of the State Board of Regents at all times in the negotiations with the State Building Board. Chairman Newey of the Planning and Capital Facilities Committee offered a motion to approve the memorandum of agreement and the composite 103 list of capital facilities priorities for 1980, with an expression of appreci-ation to the State Building Board for their cooperation and good will. Regent Brockbank seconded and the motion was unanimously adopted. Chairman Holbrook said, as a footnote to President Cazier's comments, that there are unquestionably a number-of building projects of an urgent nature that are not on the priority list. He expressed opinion that the Board should do all that it can to bring the Governor and die Legislature to the point of view that a substantial bond issue to meet these needs should be considered at the next regular legislative session. Regent Hurtado concurred but felt such a bonding issue should be explored earlier as a means of provid-ing a lift to the construction economy. Chairman Holbrook said that Associate Commissioner Worthington had performed yeoman service in working with the State Building Board to bring its capital facilities priority list into line with the Regents' recom-mendations for higher education. St. Benedict's Hospital President Brady noted that the State Building Board, by legislative direction, has been attempting, without success, to sell St. Benedict's Hospital in Ogden, Utah, after having been unable to obtain funding to convert it to a nursing facility. (Under the legislation die proceeds from the sale would be used for building projects in Weber County with Skills Center North receiving high priority. Renovation money provided by the Legislature is being used to maintain the property. The balance of these funds would be turned over to Weber State College to assist in funding die Business Building.) President Brady suggested encouraging the Legislature to pass a new bill that would deed the hospital to Weber State College and leave it to die College to dispose of the property and to use the proceeds. Chairman Holbrook said the Board could not endorse die proposal without full details. Regent Hurtado offered a motion that Commissioner Bell and President Brady analyze die situation and present a recommendation to the Board at the January meeting. Regent Newey seconded and die motion was unanimously adopted. Funding Enrollment Increases - Utah Technical College at Provo Acting Associate Commissioner Bradley explained a proposal of Utah Technical College at Provo for Board approval to seek a supplemental appropri-ation of $210, 400 above the additional tuition revenue to fund an increase in enrollment of 317 FTE students, or 12 percent, in Fall Quarter 1979. The Board, November 16, 1979, approved $36,000 for Utah Technical College at Provo and $218,000 for Weber State College, to be requested from die Governor for restoration from die 4 percent budget cuts of diese two institutions, or, 104 failing that, to be requested from the Legislature as supplemental appropri-ations. Mr. Bradley stated that, using die same methodology as diat applied to the Weber State College enrollment increase, the Commissioner's Office recommended $110, 800 for Utah Technical College at Provo. Regent Newey offered a motion to approve the Commissioner's recommendation to seek a supplemental appropriation of $110, 800 to fund increased enrollment at Utah Technical College at Provo. Regent Plowman seconded and the motion was unanimously adopted. Commissioner Bell noted that his office had not made a recommenda-tion concerning a second request of Utah Technical College at Provo to increase the 1980-81 budget request to accommodate die anticipated student load. Associate Commissioner Bradley said he would prefer to address tiiis matter next year on a supplemental basis. Utah Guaranteed Student Loan Program Assistant Commissioner Eyring explained a proposal to borrow funds from participating Utah banks to temporarily provide student loan money pending subsequent issuance of bonds. Due to unexpected demands, the Utah Guaranteed Student Loan Program has exhausted its funds from the previous bond. The Attorney General and bond attorneys Chapman and Cutler have provided advice that the Board has audiority under the Higher Education Loan Act (53-47b-l) to borrow funds. Dr. Eyring stated that Regent Simmons had been very instrumental in the success of the Utah Guaranteed Student Loan Program. Commissioner Bell expressed appreciation for the fine support of Regent Simmons. Dr. Eyring recommended die adoption of the following resolution: A RESOLUTION of die State Board of Regents of the State of Utah Authorizing The Borrowing of $15,000,000 From Utah Lending Institutions. **** #*#* WHEREAS, the State Board of Regents of the State of Utah ("Board") anticipates the purchase of student loans from lenders pursuant to die Student Loan Purchase Program of the Board under the provisions of the Higher Education Loan Act, being Chapter 47b of Title 53, Utah Code Annotated, 1953, as amended, (the "Act"); and WHEREAS, in order to obtain funds from which to pur-chase such student loans, it is deemed necessary and advisable 105 to borrow from Utah lending institutions as hereinafter provided; W> THEREFORE, Be It Resolved by the State Board of Regents of the State" of Utah, as follows: 1. The Board authorizes the Commissioner of Higher Education as Chief Executive Officer of the Board to sign promissory notes with Utah lending institutions on its behalf for an aggregate amount not to exceed $15,000,000 for the purpose of providing short term financing of the Student Loan Purchase Program of the Board. 20 Such notes shall be at an annual interest rate not to exceed nine (9) percent and for such term as agreed between the respective lending institutions and the Commissioner. 3. The form of the notes shall be approved by the Attorney General of the State of Utah or his designee. 4. The Commissioner shall use his best efforts and is authorized to enter into such agreements, pay such moneys and provide such information to the Student Loan Marketing Association (Sallie Mae) to obtain their commitment to purchase, at the option of the Board, the loans acquired with the proceeds of the notes within a time frame agreed upon between the Commissioner and Sallie Mae. Dr. Eyring also recommended that the Board authorize using the proceeds of the promissory notes to purchase Utah guaranteed in-school loans from eligible lenders using a purchase agreement compatible with the bond program, and, finally, to designate two Regents, Commissioner Bell and Assistant Commissioner Eyring to proceed with the incorporation of the private, non-profit servicing entity for the Utah Guaranteed Student Loan Program. Regent Billings offered a motion to approve the recommendations. Regent Plowman seconded and the motion was adopted, as follows: Aye - 12 Abstaining - 1 Peter W. Billings Alex P. Hurtado Roy W. Simmons Ralph S. Blackham Mary D. Lunt W. Hughes Brockbank Neal A. Maxwell Kem C. Gardner Robert L. Newey Jay Dee Harris Rex G. Plowman Donald B. Holbrook Cyndi Woodbury 106 Regent Simmons asked to have the Minutes show that he neither participated in discussion nor voted on the motion. Chairman Holbrook designated the Chairman (Mr. Holbrook) and Vice Chairman (Mr. Plowman) to work with the Commissioner and Assistant Commissioner, in accordance with the recommendation to incorporate the servicing entity, in order that continuity would flow with the office. Resolution of Condolence to Family of Sherman P. Lloyd Regent Maxwell had arrived at the meeting shortly before die last vote, after participating in funeral services for former Utah Congressman Sherman P. Lloyd. Regent Plowman offered a motion that the Board adopt a resolution of condolence to the family of Mr. Lloyd acknowledging and expressing appreciation for his fine lifetime of service. Regent Hurtado seconded and the motion was unanimously adopted. Calendar of 1980 Board Meetings Commissioner Bell distributed a proposed calendar of 1980 meetings of the Utah State Board of Regents, which was adopted by consensus. Places for the meetings will be decided later. The schedule is as follows: (Committees) (Committees) (Committees) (Committees) January 15, 1980 (Tuesday) February 19 (Tuesday) March 18 (Tuesday) April 15 (Tuesday) May 20 (Tuesday) June 17 (Tussday) (including annual capital facilities hearings) July 15 (Tuesday) August (No Meeting) September 10-11-12 (Wednesday-Thursday- Friday) (annual budget hearings) September 30 (Tuesday) (formulate budget recommendations) November 18 (Tuesday) December 16 (Tuesday) The meeting adjourned at 1:55 p.m.