AUTHORIZATION TO AWARD HONORARY DOCTORATE, PSU

Staff Report to the Board

The Board of Higher Education permits institutions, with the concurrence of their faculty, to award honorary degrees. Each institution wishing to award honorary degrees must adopt criteria and procedures for selection that will assure the award honors distinguished achievement and outstanding contributions to the institution, state, or society. Criteria and procedures for selection must be forwarded to the Chancellor for approval and, when approved, filed with the Secretary of the Board. Institutions are required to forward their recommendations for honorary degrees for the Board's approval 90 days before the date for awarding the degrees. President Clinton announced his intention to attend the Portland State University June commencement on April 21. In recognition of the great honor to PSU, OUS, and Oregon, staff requests the Board's approval to award an honorary doctorate to U.S. President William Jefferson Clinton at PSU's June 1998 commencement.

William Jefferson Clinton

Deeply inspired by such key American figures as John F. Kennedy and Dr. Martin Luther King, Jr., Bill Clinton has dedicated his adult professional life to contributing to improving the lives of the American people. He earned a B.S. in International Affairs from Georgetown University, won a Rhodes Scholarship to study government at Oxford, and graduated from Yale Law School. After teaching law at the University of Arkansas at Fayetteville, he entered the political arena -- first as Attorney General of Arkansas and then, at age 32, as governor of Arkansas, where he concentrated on improving the state's educational system and building better roads.

Education has remained one of Mr. Clinton's most important agenda items. In Arkansas, he raised teachers' salaries and began a program of testing students after third, sixth, and eighth grades. Access to quality education was a key focus, and he also encouraged parental participation in their child's education. As chair of the National Governors' Association ('86-'87), he led efforts to reform welfare and educational systems of other states as well.

As President of the United States, we continue to witness his strides in making quality education accessible for all Americans. His active role in tax initiatives, scholarship proposals, and such programs as AmeriCorps positively affect people's educational opportunities across the country.

Staff Recommendation to the Board

Staff recommends that the Board authorize Portland State University to award an honorary doctorate to President William Jefferson Clinton at its June 1998 commencement.

BOARD ACTION:

FOOD INDUSTRY LEADERSHIP CENTER, PSU

Introduction

Portland State University (PSU) seeks authorization to establish the Food Industry Leadership Center. Created in 1994, the Food Industry Management (FIM) program, which is housed in the School of Business Administration, has become so successful that PSU believes the time is right to more formally acknowledge the efforts of its participants by making it a center. (Since its inception, more than 150 companies have taken part in FIM's programs.) The FIM endowment is more than sufficient to cover the proposed center's annual operating costs, including faculty development and seed money for research; therefore, there are no resource implications for PSU.

Evidence of Need

The food industry is currently undergoing massive structural change in how it provides value to the customer. Professionally trained leaders and managers are imperative if companies are to succeed in the competitive food industry environment. Important issues confronting managers and leaders in the industry include the use of new technology and its impact on competition; mergers and acquisitions; better understanding of consumer trends; workforce diversity; improved supply-chain management; and electronic commerce.

The Food Industry Management program has been helping managers confront these issues for four years. FIM guides and educates food industry executives and middle managers who are grappling with complex managerial and technological challenges, many for the first time. FIM features everything from executive development and in-depth conferences to faculty research and student internships with food companies. A proposal to add a certificate in food industry management to the School of Business Administration curriculum is currently undergoing campus review.

Program Description

The program is guided by an executive committee of industry executives. A 30-person industry advisory board, and faculty and industry executives, have developed a strategic plan for the program. FIM has served as a model program for the university, highlighting an effective higher education/industry partnership, a key component of PSU's overall goals and mission. The eight objectives of FIM are to:

The goals and objectives of FIM also support the strategies identified by the Regional Strategies Program through the Oregon Economic Development Department. Governor Kitzhaber has placed an emphasis on working with the food processing industry in Oregon and supports and encourages higher education/industry partnerships.

New opportunities to respond to industry needs keep arising, and FIM continues to develop partnerships and resources that meet those needs. Being the only university in the Northwest to focus on food management issues, FIM is positioned to take the lead in the development of innovative leadership practices, research, student internships, and executive development opportunities for the food industry. Some examples of such program activity follow.

"Today's Managers: Tomorrow's Leaders" Executive Program. This one-week residential program for high-potential mid-managers from across the industry, offered in partnership with the Food Marketing Institute, provides an in-depth look at current and emerging successful business practices in the industry. More than 85 high-level food executives moving into leadership positions have been served over the past four years.

Annual Fall Conference. This conference provides a forum for presenting and discussing current issues, trends, and challenges, and has served over 350 food executives in the past three years.

Industry Executive Forums. Forums for senior-level food executives are held to discuss significant issues facing the food industry. Past speakers include: David Jenkins, former CEO of Shaws Supermarkets; Gary Michael, CEO, Albertson's; and Al Carey, COO of Frito Lay.

Seminars. One- and two-day seminars on numerous topics identified by the food industry are presented at PSU and at various locations around the country.

Customized Programs. FIM can deliver any of its programs on-site for area companies or can develop customized programs specifically for an individual company or consortium of companies.

Internships. Some of the student internships have included:

Partnerships/Relationships

A strong relationship exists with OSU's Food Science and Technology Department and the developing Food Innovation Center sponsored by OSU and the Oregon Department of Agriculture. A joint one-day seminar is being offered on May 12 entitled "Strategies for Successful New Product Innovations." In addition, OSU faculty participate in FIM's executive program in team presentations with PSU faculty.

FIM also continues to work with community colleges throughout the state as they assist entry-level food technical employees in gaining basic skills and line supervisory training. Solid partnerships are in place, and growing, with important trade associations in the food industry including the Northwest Food Processors Association (NWFPA), Food Marketing Institute, and National Grocers Association. One example of the work of these partnerships is the joint seminars (FIM and NWFPA) on team building, project planning, and recruitment and retention of employees offered over the past three years. These two groups also cross-market programs and work in concert with one other when developing educational opportunities for the food processing industry.

Resources

The FIM program has already raised close to $3 million to fund its efforts. These resources support its operating budget, including a full-time staff of two; provide seed money for faculty research and development; and have created an endowment that will reach about $2 million when the pledges are paid off in several years.

The core budget also supports some faculty research, travel, and development. Current involvement of faculty in the program is funded through School of Business Administration academic FTE as part of the regular teaching load or overload. A modest endowed professorship subsidizes the lead faculty member. A fund-raising strategy is moving forward to secure an additional $2.5 million for an endowed professorship, with the goal of hiring a tenure track faculty member with food industry background.

Space has been reserved in the School of Business Administration for center operations, and equipment and furniture is already available in that space. No additional funds are needed for development of the center.

Staff Recommendation to the Board

Staff recommends the Board authorize PSU to establish the Food Industry Leadership Center.

BOARD ACTION:

INCIDENTAL FEE GUIDELINES, PSU

Staff Report to the Board

As required by Board Administrative Rule, Portland State University (PSU) seeks Board approval to adopt new guidelines establishing the means by which student government shall determine the level and allocation of its incidental fee recommendation. The Board last approved amendments to these procedures in 1995. In addition to minor changes, PSU proposes three substantive changes: procedures to deal with expenditures in excess of budgeted amounts, requirements for notice and meeting agendas, and the addition of an initiative and referendum process. The initiative and referendum process allows the student body to vote on budget allocations. Depending on the size of the proposed allocation, the student body vote becomes either advisory or a minimum allocation. One of the minor changes identifies Student Fee Committee members as liaisons to funded groups and identifies their responsibilities as such. The administration and student government representatives have worked together on these recommendations. Both President Bernstine and the Student Fee Committee have approved the new guidelines. Chancellor's Office staff have reviewed the guidelines to ensure they are consistent with statutory and Board requirements.

Staff Recommendation to the Board

Staff recommends the Board approve the Incidental Fee Guidelines proposed by Portland State University, included within the supplemental materials (on file in the Board's office).

BOARD ACTION:

LOYD AND DOROTHY RIPPEY LIBRARY, OREGON INSTITUTE OF MARINE BIOLOGY, UO

Summary

The University of Oregon (UO) seeks Board approval for a $600,000 capital project, entirely gift-funded, to be built at the Oregon Institute of Marine Biology (OIMB) in Charleston, near Coos Bay. The project would remodel an existing small administrative building and build an addition to house the Loyd and Dorothy Rippey Library. If approved, the Board would authorize the Vice Chancellor for Finance and Administration to seek approval from the State Emergency Board for a $600,000 Other Funds expenditure limitation for this project.

Background

The project would remodel an existing small administrative building of 1,321 gross square feet (gsf), and build an addition for a total of 3,279 gsf. The new structure would be known as the Loyd and Dorothy Rippey Library. Accomplishing a long-standing need of OIMB, it would double the library's collections space, including a reading room, electronic access to library materials, a reference and staff support area, and future expansion space. All funds have been raised for the project; work will begin in the summer of 1998 and be completed before the beginning of summer term 1999.

Staff Report to the Board

Offering undergraduate programs in biology and environmental science and masters and doctoral programs in biology, OIMB is the UO's marine biology field station. Five OIMB faculty, researchers from the nearby South Slough National Estuarine Research Reserve, and other scientists from the adjacent Oregon Department of Fish and Wildlife office all participate in the active research program. Enrollment has remained fairly constant at the institute with summer term being the most popular. Summer enrollment averages nearly 100 students and attracts scientific visitors worldwide.

A library replacement project has been OIMB's highest priority capital construction project since the mid-1980s. Originally included in the OIMB Improvements Project undertaken at that time, it was deleted due to budget limitations. A $1.5 million library project was then approved for gift or grant funding by the 1993 Legislative Assembly, but was not built because funding was unavailable at that time.

The current Rippey Library project is based on the OIMB Facilities Plan, approved in 1995 and funded by the National Science Foundation. The document describes a number of expansion and renovation projects designed to resolve inadequacies in facilities housing the OIMB programs.

Since 1986, OIMB's research and teaching programs have both grown in scale and use by in-house scientists and visitors. Most notably, the South Slough National Estuarine Research Reserve, the Oregon Department of Fish and Wildlife, and the International Port of Coos Bay have taken advantage of OIMB resources. There is also significant use by Southwestern Oregon Community College, local schools, and by other libraries through the inter-library loan program. Despite this, the collection size has remained static; in addition, there are essentially no reader stations in the existing facility, and access to electronic resources has been limited by the small amount of space available.

Built in 1918, the existing administrative structure does not conform to current Americans with Disabilities Act (ADA) requirements, nor does it provide adequate climate control to protect the book collection from damage. This 1,321 gsf building will be increased to 3,279 gsf (not including an unfinished attic) and linked to the adjacent existing library building. The administrative functions in the structure will be relocated to the larger building.

The new library will feature a reference and staff support area near the entrance, an area to house up to 12 computer stations, a stack area with the potential to double the current collection, and a reading room providing seating for about 16 persons. An unfinished second floor/attic, suitable for future expansion for faculty or student offices, meeting rooms, and other similar functions will be built into the new structure.

Staff Recommendation to the Board

Staff requests that the Board approve the University of Oregon Loyd and Dorothy Rippey Library renovation and addition project and authorize the Vice Chancellor for Finance and Administration to seek authorization from the State Emergency Board for an Other Funds expenditure limitation of $600,000 for the project. Staff also recommends the Board authorize the Vice Chancellor for Finance and Administration to approve proceeding with project bid solicitation after Emergency Board approval is received.

BOARD ACTION:

COMMUNITY-CAMPUS RECREATION FIELD, PSU

Background

PSU is seeking Board approval to lease vacant land on the campus to the PSU Foundation in order to facilitate the construction of an all-weather 120' x 65' community and campus recreation field. The Foundation would lease the land from the Board for the period of time needed to construct the field in accordance with PSU standards and City of Portland requirements. Upon completion of the field, the Foundation would donate it to the Board of Higher Education and the lease would be canceled. This approach has been used by the Board of Higher Education on other occasions, including for the construction of the Bowerman Family Building at the UO (accepted by the Board in 1992) and construction of the OSU CH2M Hill Alumni Center (accepted by the Board in 1995). University officials prefer this lease arrangement because the Foundation carries responsibility for project oversight and liability during the construction period until the facility is fully operational.

Estimated total project cost is $2.2 million. All funds for the project have either been donated or guaranteed by Peter W. Stott, a major donor to PSU. Estimated annual maintenance and operating costs of $10,800 will be the responsibility principally of the Athletic Department auxiliary. University officials expect these costs to be offset by approximately $20,000 of savings from cancellation of practices at Civic Stadium and the $1,800 now estimated for annual grounds maintenance on the site.

If approved by the Board of Higher Education and the Foundation Board at their respective May 1998 meetings, the field would be constructed this summer and be ready for use by mid-August 1998, when the PSU football team begins practice. The final lease will be presented to the Board President for signature and execution after all necessary approvals have been secured and funds received, irrevocably pledged or guaranteed. The PSU Foundation would be responsible for ensuring the availability of funds.

Staff Report to the Board

PSU proposes to lease a parcel of vacant land on the north side of the campus approximately 120' x 65' to the PSU Foundation for their construction of a community and campus recreation field. This location is convenient to the current athletic locker rooms located in the basement of the adjacent Health and Physical Education Building (Stott Center), as well as to the greater PSU community. The parcel is west of Millar Library and south of Harrison Hall, a major teaching facility on the campus.

The decision to construct a single field for use both by the PSU-area community and campus physical education, recreation, and athletic programs results from the convergence of several needs: (a) a location for the PSU football and soccer teams to practice, now that the Civic Stadium is no longer a viable option due to rising costs and limited scheduling opportunities; (b) an outdoor recreation space for children attending the Portland Public Elementary School/Housing Project; and (c) additional recreation space for intramural and club sports resulting from increased demand by the PSU student body.

PSU seeks approval at this time because officials at the Civic Stadium have notified the university that they intend to eliminate PSU's access to the field for football practice in summer 1999, in order for stadium officials to undertake a construction project to replace its playing field. As a result, PSU reviewed its options. In April, Mr. Stott indicated his desire to facilitate a solution, in order to have a practice field available for use by the late summer/fall 1998 football practice period. To meet this schedule, preparation for construction must begin by late spring.

Originally, PSU had proposed to construct the community-campus recreation field in 1999 using gift funds. A $2.6 million proposal for this purpose has been included in PSU's 1999-2005 capital construction budget submittal, timed to provide PSU with an alternative when the Civic Stadium officials moved forward with their plan to substitute a natural grass field for the artificial turf which currently is used in the stadium.

This field was planned, in part, to meet the requirements of the University District Plan, which calls for the construction of 1,500 new private housing units and several hundred additional student housing units. Recreational opportunities for the campus and the district residents are a requirement of the plan. These will be met, as now, in the Park Blocks as well as on undeveloped areas of the campus. However, the plan calls for public use of both the Urban Center Plaza (a part of the recently approved PSU Urban Center Project, Phase I) and the proposed community-campus recreation field. The City of Portland is also reviewing the proposal now before the Board, and held a hearing on April 29 with initial response by the City anticipated by May 6. The result of this review could delay the project or add to its cost. If such a delay occurs, PSU will have to lease space elsewhere in the metro area and transport the students by bus, thereby increasing costs, adding safety concerns, and increasing student travel time.

The existing grassy field will be replaced with a new product of artificial grass laid over a deep sand base. This grass is not the same product as artificial turf, which lacks the underlying cushioning provided by sand. This type of solution is required, rather than the alternative of maintaining natural grass, as it allows 365 day usage rather than trying to maintain natural grass, which becomes very muddy in wet conditions.

Staff Recommendation to the Board

Staff recommends that the Board approve the request by PSU for authority to lease a 120' x 65' vacant parcel to the PSU Foundation for the purpose of facilitating the construction of an all-weather community and campus recreation field. The final lease will be presented to the Board President and Secretary for signature and execution only after all necessary approvals have been secured and funds received, irrevocably pledged, or guaranteed. Likewise, an Agreement for Land Lease and an accompanying License Agreement would first be reviewed and found acceptable by the Board's legal counsel, prior to seeking final signature of the Board President. The PSU Foundation would be responsible for ensuring the availability of project funds, estimated not to exceed $2.2 million. Upon completion of the construction, and confirmation by PSU that the field meets all requirements by the University and the City, the lease would call for the return to the Board of all rights, title, and interest, including possession, of the site, improvements, equipment, and furnishings.

BOARD ACTION:

RESIDENCE HALL RENOVATION, OSU

Summary

Oregon State University (OSU) requests Board authorization to seek approval from the State Emergency Board for an increase of the Residence Hall Renovation total project expenditure limitation from $3,595,000 to $6,500,000, an increase of $2,905,000, for the issuance of Article XI-F(1) bonds to renovate and upgrade Hawley Residence Hall for the future use of approximately 220 students in single and double rooms. The increase of expenditure limitation is required to fully address code and physical obsolescence as well as the reconfiguration of space in Hawley Hall. The revised project cost is based on the completion of detailed architectural design.

Staff Report to the Board

Background. OSU is in the middle of a 15-year plan to upgrade its residence and dining halls, which range in age from 25 to 70 years. One major housing or dining facility is being completely renovated every one to three years. The goal of this program is to provide appropriate accommodations at competitive rates. The living and dining facilities are aging, thus requiring substantial renovation or expansion. In most cases, this work will require improvements to basic building systems such as the heating and ventilating systems; work to address lack of code conformance (for ADA accessibility, seismic stability, fire/life, safety, and energy efficiency); changes to the interior appearance; and some reconfiguration of interior space to meet student demands for greater privacy, more seminar rooms and meeting spaces, and greater sound insulation.

To date, four major projects have been completed: McNary Residence Hall ($3.4 million), West International House ($8.6 million), Marketplace West (formerly West Dining,$4.8 million), and McNary Center, Phases I and II (formerly McNary Dining, $1.5 million). The project under review, the Residence Hall Renovation project involving "The Quad" buildings, is next in the queue.

"The Quad" and Hawley Hall Project. Built 45 years ago, The Quad is a single, integrated, four-building structure comprised of Hawley, Poling, Cauthorn, and Buxton Halls. The four buildings are joined such that meeting/study rooms are at their boundaries. Faced with brick, consistent with the architectural qualities of the central campus, each structure is five stories tall with a basement.

The master plan for The Quad has now been completed. It included a needs analysis of the two cooperatives adjacent to The Quad, Reed Lodge, and Heckart Lodge building. Hawley Hall, a 66,076 gross square foot (gsf) building, was selected as the first element to undergo total rehabilitation. Thus, detailed architectural work for Hawley Hall was done as part of the master plan, and a final construction cost estimate for rehabilitating Hawley has been determined, totaling $5,100,000.

Hawley Hall requires extensive code, building systems replacement, and remodeling. Code-related work includes tearing out "furniture-wall" systems between student rooms and replacing them with seismically stable new shear walls. New group showers and restrooms will be built. Other plans include installation of fire sprinklers, asbestos removal, and electrical upgrades. Nearly all building systems will be replaced (heating, piping, elevators, windows, floor coverings, and elevators). Walls and ceilings will be patched and painted and floor finishes updated.

Although the campus explored the possibility of reconfiguring space to develop more single rooms and suites, the costs were prohibitive. Therefore, the renovation plan will not increase capacity. The existing double-loaded corridor design will be continued, although more single bedrooms are planned to accommodate demand. The design will provide ten single rooms and 22 double rooms per floor for four floors, for a total of 128 rooms for 218 residents, plus a few larger apartments for the resident attendants. The first floor will contain meeting and seminar rooms, as well as student lounges.

While alternatives to this approach were examined, because Hawley is part of a larger integrated structure, there were few options. Overall campus plans call for keeping its undergraduate facilities near the campus core, both for student convenience and to be near the new common dining facility, Marketplace West. (Note: all residence halls are centrally located on campus.)

Previous Approvals and New Request.

This project was originally approved by the 1997 Legislative Assembly, in Chapter 584, Section 2(3)(b) of the OUS Capital Construction Bill, with a total expenditure limitation of $3,595,000 for the issuance of Article XI-F(1) bonds. Combined with costs for the master plan, this will exceed the existing expenditure limitation for this project by $2,900,000, all of which would be from additional Article XI-F(1) bonds.

At its November 1997 meeting, the Board of Higher Education approved the inclusion of this project in the spring 1998 bond sale, authorizing the sale of $1,595,000 of Article XI-F(1) bonds. To take advantage of historically low bond rates prior to the bond sale, OUS submitted a new request to increase the bond issuance amount by an additional $2,287,000, for a total of $3,882,000. This amount included $287,600 of "project reserve contingency" approved in Chapter 584 for certain projects. The Board approved the request and in March 1998, $3,882,000 in Article XI-F(1) bonds were sold for this project.

If the additional bond request for this project is approved, construction would begin in late summer/early fall 1998. Additional bonds would be requested for the next OUS bond sale, tentatively scheduled for fall 1998, and construction would be completed by summer 1999, in time to accept residents in the fall term.

Financing Strategy. The University's debt financing strategy for renovation and updating its aging residence halls is to look at all of the student housing and dining units as a single enterprise. Therefore, as architectural plans and associated cost estimates are developed for any single project, a complete financial assessment is based on the overall impact given the number of residents housed, the amount of rental income to be collected, the total costs of providing housing and dining, and the incremental debt associated with a particular construction project. The campus manages its rehabilitation activity so that the contribution to the total operating budget (and resulting room rates) is kept to a supportable level.

Hawley Hall is one of eight traditional undergraduate residence halls, referred to as "standard halls" for purposes of the room-and-meal accounting. The room-and-meal plan rate charged for students living in these eight halls is the same, regardless of which building in which they reside. These rates are lower than those charged for the newer halls that have suite arrangements, which are marketed to upper division students.

Following completion of the proposed Hawley Hall project, the amount of debt to be added to the total Housing and Dining Services operation budget will be $6,500,000 for all planning and construction. Annual debt service requirements are estimated to be $443,000. This amount is pooled with other existing debt service for all other housing and dining projects, along with an analysis of the impacts to the room and meal charges for the coming year. Charges are developed for each category of residence hall, depending on market rates. For a standard hall, the double room and meal rates will increase by $118 per year, or 4.51 percent. Newer halls have a different market-based plan, but approximately the same rate of increase for debt service would be reflected. The total number of residents in all halls is projected at 2,270 students.

Estimated annual operating revenues solely for Hawley Hall, when viewed as a separate budget, will be $494,000. Subtracting estimated operating costs of $229,000, and the Hawley Hall pro-rated share of the pooled debt service of $158,000, leaves an estimated annual operating balance for Hawley Hall of approximately $107,000, compared with the current operating balance of $143,000. Therefore, despite the higher than expected cost of the renovation, the project is sound from a financial point of view.

The total University Housing and Dining Services budget for FY 1998-99 projects total revenues of $13.1 million, less total expenditures of $12.2 million before contributions to building reserves.

Staff Recommendation to the Board

Staff requests that the Board approve the Oregon State University Residence Hall Renovation Project as designed with a revised total project cost of $6,500,000 and authorize the Vice Chancellor for Finance and Administration to seek authorization from the State Emergency Board for an increase in the total project expenditure limitation to $6,500,000 for the issuance of Article XI-F(1) bonds to finance the project.

BOARD ACTION:

CENTRAL OREGON UNIVERSITY CENTER AND SOUTHWESTERN OREGON UNIVERSITY CENTER

Summary

The Chancellor is seeking Board approval to request state Emergency Board authorization for funds totaling $497,000 to respond to program and administrative needs that have developed at the Central Oregon University Center (COUC, established in 1994) and the Southwestern Oregon University Center (SOUC). These funds are needed for the academic year 1998-99. COUC projects 2,000 students will be taking classes next academic year (195 FTE) and 90 students will graduate in June with either a bachelor's or master's degree. Three hundred students are currently enrolled (40 FTE) at SOUC, a 71 percent increase since 1995-96. SOUC is projecting 500 students in 1998-99.

If approved by the Board, the Emergency Board request will be jointly presented by the Chancellor, the Commissioner of Community College Services, and the presidents of COCC and SWOCC. The funding requests by line item are as follows:

Central Oregon University Center (COUC)

Southwestern Oregon University Center (SOUC)

Staff Report to the Board

The Chancellor seeks Board approval to request funds from the Emergency Board to meet modest, but necessary, educational needs at COUC and the emerging SOUC. In both cases, these two centers are outgrowing their ability to meet student demand. Collaboration among the Board of Higher Education, the Office of Community College Services, and the two community colleges is working well. However, without additional resources and program depth, these centers cannot keep up with the growing demand by students living in relatively remote areas of Oregon. The programs to be funded by this request directly respond to the goals articulated in the Governor's access agenda and in the Board's strategic planning processes.

Central Oregon University Center (COUC)

Rental of Additional Classroom Space -- $30,000. Since 1994, the number of cooperating institutions has grown from six to nine. Eastern Oregon University, Oregon State University, and Linfield College have had the most substantial participation in Central Oregon; however, programs have also been created with Lewis and Clark College, Oregon Health Sciences University, Oregon Institute of Technology, Portland State University, Southern Oregon University, and the University of Oregon.

With this level of programmatic commitment, fall 1998 enrollments marked an eight percent growth over fall 1997. Since 1994, the number of degree programs has grown from seven to 23; the number of classes has grown from 35 to 240; and the number of total course enrollments has grown from nearly 540 to 2,000 (projected for 1997-98). In terms of FTE, 145 student FTE are now studying in COUC programs. In June 1998, 90 students will complete bachelor's and master's degrees.

With this rate of growth, waiting lists have been established for many courses. This institutional growth mirrors regional growth of 35 percent reported by the Census Bureau for Deschutes County since the last census. Furthermore, the proliferation of small to medium businesses in Bend and Redmond provides employment for new graduates.

The COUC partnership with COCC combines OUS programs with COCC facilities. This collaboration has accomplished a great deal with a limited investment. However, when COUC was established, COCC had surplus space that easily accommodated COUC program activities. Even with the addition of new COCC facilities, the current space is taxed.

Currently, COUC and COCC share the use of two multimedia classrooms. COCC uses these facilities to deliver courses to seven regional centers via instructional television. Due to increasing demand for these facilities, funding is sought to provide additional academic space at the lowest cost possible, through the leasing of two additional modular classrooms. These would be used primarily by COUC at an approximate cost of $30,000 for a two-year lease. COCC has offered a suitable site, which is well lighted and accessible to sewer and electrical connections. During 1998-99, a longer term solution will be investigated by both institutions.

Expansion of Library Resources -- $60,000. COUC carries out its programs in space owned and managed by COCC. Currently, COUC relies on the COCC library for facilities, staff, and program support, and contributes to library resources through a direct subsidy. However, COUC is in need of additional books to support each of its 23 degree programs. COUC and sponsors of the 23 degree programs have agreed to jointly address this issue with an annual assessment of $3,000 per program per year. Therefore, one-time funding of $40,000 is sought to develop a book collection and meet subscription costs of journals needed for the curriculum being offered through the COUC. COCC staff will order, catalog, and circulate the books and journals.

COUC also requests funds to support expanded use by COUC of Portals and ORBIS, two Oregon public/private higher education library cooperatives centered in Portland and Eugene. Because most COUC students are earning degrees from Portals- and ORBIS-member institutions, COUC and COCC library staff have been actively seeking their cooperation. COCC has invested $100,000 in software to install the Innovative Interfaces, Inc. (III) automated library software, which is the platform for ORBIS. An additional $20,000 is requested to purchase and install the software module which will allow COUC students to initiate automatic circulation requests to the ORBIS libraries. Participation in ORBIS will enable COCC to collaborate with participating institutions and to order books that will enhance both COCC and ORBIS collections.

Initiate a New Cooperative Program -- $209,000. The Chancellor seeks approval from the Board to request Emergency Fund support to launch an important new pre-professional degree program at COUC in the academic year 1998-99. This program would offer a degree that would make students eligible for entry into professional health-related schools of medicine, dentistry, and physical therapy or, more generally, for employment that requires a strong general science background. COUC, COCC, and UO have completed planning for a jointly delivered Bachelor of Science in General Science with an emphasis in Biology and Chemistry. Upper division instruction will be provided by both on-site UO faculty and COCC faculty teaching as UO adjuncts. Based on initial inquiries by students, demand exists for at least 15 to 20 FTE in the first academic year.

The goals of the program are (a) to provide a degree that is suitable for entry into professional health-related programs; (b) offer the degree within the framework of the UO General Science Major; (c) integrate the curricula now being offered at UO and COCC to result in a curriculum that fully satisfies high standards for the similar degree now offered at UO; (d) involve faculty at UO and COCC; and (e) administer the program at UO such that it becomes self-supporting through tuition generated.

While COCC will provide the existing laboratories, additional funds in the amount of $209,000 are needed to upgrade COCC's laboratory equipment and to cover the first year faculty costs. COUC will collaborate in funding equipment (estimated at $30,000) not covered by this request in the first year.

Southwestern Oregon University Center (SOUC)

Staffing and Office Support -- $125,000. SOUC has been supported informally by administrative arrangements with SWOCC. Since 1995-96, enrollment has increased by 71 percent. There are currently 300 students enrolled in 58 courses, taking 1,727 credits, aggregating to 40 FTE.

SWOCC has provided in-kind administrative support and advertising for these programs each year, valued at approximately $27,000. However, this level of growth now requires a more reliable source of funding. The requested funding will provide for the hiring of two permanent staff, office space, and operational expenses. The office space has been renovated and reserved for this function. SWOCC will provide telephone services, computer network access, library services, and access to the college's computerized Learning Hub for students. The estimated value of these in-kind contributions is in excess of $43,000.

Upgrade of Program Support Technology -- $73,000. This request will support present programs and expand distance delivery (send/receive) capability. To date, SWOCC has provided technical support for an Ed-Net II link out of existing resources at an annual cost of $20,500. The requested funds will enable SWOCC to hire a technical support person to operate and maintain the Ed-Net II link and to install additional equipment.

Staff Recommendation to the Board

Staff recommends that the Board authorize the Chancellor to seek State Emergency Board approval for Emergency Funds totaling $497,000 to respond to program and administrative needs as outlined for the Central Oregon University Center (COUC) in Bend and the Southwestern Oregon University Center (SOUC) in Coos Bay for academic year 1998-99.

BOARD ACTION:

PRELIMINARY PROPOSALS FOR NEW ACADEMIC PROGRAMS

The Academic Council has favorably reviewed the following four preliminary proposals for new academic programs:

UO -- B.A./B.S. in Environmental Science

The University of Oregon proposes to offer this degree as a complement to the already heavily subscribed new major in environmental studies and to formally recognize and respond to student demand for greater scientific understanding of environmental issues. While OIT, PSU, OSU, and SOU have environmental programs for undergraduates, this proposed program is not viewed as unnecessary duplication for two reasons. First, it builds on UO's significant strengths in the physical and life sciences and its own unique faculty expertise. Secondly, duplication of a select set of high-demand programs is, in fact, desirable when it increases student access. Given the intense focus on environmental issues in Oregon, the U.S., and the world, and promising employment prospects for graduates, the UO considers this a very relevant degree. Current resources are sufficient to offer this program.

The goal of the program is for graduates to be cognizant of the major environmental issues and to develop a scientific understanding of: (1) the nature and scope of the forces underlying environmental problems/issues; (2) the various approaches used to bring environmental issues to the public's attention; and (3) the methods and approaches used to solve these problems. Students graduating from this program would have scientific career options in such fields as conservation biology, climate, pollution prevention and abatement, ecosystem restoration and management, and could compete for jobs with government agencies, environmental consulting firms, and a variety of businesses requiring environmental scientists. In addition, the degree will prepare students for careers in teaching and for any number of graduate and professional programs (e.g., geology, biology, environmental science, law). It is anticipated that 25 to 50 students will graduate each year from this program.

WOU -- B.M. in Contemporary Music

The nature of "making music" has changed dramatically in the last 50 years. Mass distribution and broadcasting, electronic music, film and video scoring, field recordings, and personal computers have all influenced this change. The roles of performer and composer have blurred, as have the musical styles of classical, jazz, and commercial music. The proposed degree is a response to this new reality. Skills and knowledge that are typical components within tracks in a traditional major are integrated in such a way that students will be prepared to participate in the generation and production of music in the new context.

As music production becomes more accessible to musicians of modest means, the music industry will become less focused in traditional metropolitan centers such as Los Angeles. The music market is expanding concurrently with the growth in high-tech industries, creating more opportunities for musicians at the leading edge of creativity and entrepreneurship. Students completing this program may find employment in a variety of music-making areas such as composition of commercial music; music for films, TV, or dramatic productions; jazz performance; studio musicians; work in post-production houses or recording studios; studio teaching in composition; and music software consulting.

The proposed degree would utilize the current core required of music majors, and no more than six new courses would need to be created. In addition to serving this major, the new courses are logical extensions of elective areas currently in place and utilize strengths of current and newly hired faculty. Western's music department currently serves 40 majors in the B.A./B.S. programs. The proposed degree would likely draw some of those majors and may also attract other students who might have elected a different major or institution.

WOU -- M.S. in Social Policy

The proposed interdisciplinary program seeks to provide graduate-level social science instruction covering the values, context, and dynamics associated with the development and implementation of effective social policy. Students would be exposed to critical theories, empirical methods and evidence, and practical experiences in social problems/issues, government, nonprofit, and private-sector policies and administration. The ultimate goal is to produce graduates capable of creative, rigorous social analysis and equipped with the educational framework and practical experience to positively influence social policy. The core courses in the program will be taught during the evenings to accommodate returning students, and students will move through the core sequence as a cohort.

Social change, multiple policy options, various (and often conflicting or competing) interests, economic realities, political contexts, and many other variables all influence the complex and dynamic nature of social policy. Oregon, and the nation, will continue to need broadly-trained professionals capable of identifying, defining, and responding effectively to social problems. Graduates of this program will be qualified for professional, management, and research positions within a number of social service and related agencies of federal, state, and local governments, and private and not-for-profit organizations.

This interdisciplinary degree will require an additional 1.0 FTE faculty position to provide four of the core courses. The other three core courses will be supported by current faculty in the Sociology, Economics, and Psychology departments. Two principal groups of students would be served by this degree: recent graduates from WOU and other institutions who seek to continue their studies (10-12 per year) and professionals already working in social service organizations who seek to enhance their skills and credentials through graduate education (5-10 per year).

WOU -- Master in Management of Information Systems

The proposed Master in Management of Information Systems will be offered through Western's Business Division and the Computer Science Division. The strengths of both divisions would be combined to create a program with a solid foundation in management theory and practice coupled with computer technology.

Industry has incorporated technology as a necessary tool for success. Nationwide, there is a shortage of employees in the area of Information Technology. According to The Information Technology Association of America (11/97), as many as 190,000 positions are currently available. The proposed program would prepare professionals to be competent in both information technology and management.

Likely candidates to be served by this program will include professionals in industry, state and municipal employees, and recent graduates. WOU hopes to expand the student base by serving the more explicit needs of industry and government.

Faculty resources are sufficient to offer this degree. The equivalent of 1.5 FTE will be allocated from current faculty to cover the additional graduate offerings. Library holdings would need to be strengthened ($5,000/year).

(No Board action required)

WHERE HAVE OREGON'S GRADUATES GONE? CLASS OF 1997

Background

A telephone survey was conducted in February 1998 of a random sample of the Oregon high school graduating class of 1997, the third of a biennial study initiated with the class of 1993. This study aimed to identify the percentage of the graduating class who attended a postsecondary institution in fall 1997 or winter 1998, their specific college choices and the rationale for those choices, and reasons for those who decided not to go to college.

Enrollment

The college enrollment rates of the Oregon class of 1997 are similar to those of the classes of 1993 and 1995, and to rates for the United States as a whole.

Percent of High School Graduates
Enrolled Fall Term Following Graduation

            Men  Women            Total          
Oregon -- 1997         60.1          67.8     

63.9

Oregon--1995

54.8

65.7

63.4

Oregon--1993

57.6

67.0

62.5

U.S.--1996*

60.1

69.7

65.0

* Source: U.S. Department of Education, Digest of Education Statistics 1997.

Nearly 64 percent of the respondents in the Oregon class of 1997 survey were enrolled in some form of postsecondary education in fall 1997, with an additional 3.5 percent enrolling winter 1998. With the additional delayed enrollment likely over the next year, the college attendance rate of the class of 1997 at the end of eighteen months following graduation could be as high as 86 percent, based on the findings of this survey.

Choices

Among all of the high school graduates surveyed, 35.3 percent were attending a four-year university or college after winter term and 32.1 percent had chosen a two-year college. Compared to the class of 1995, significantly fewer students attended a four-year institution outside Oregon. Nearly 25 percent of those surveyed enrolled in an Oregon community college fall term, with another 3.1 percent delaying enrollment in the community college until winter term. The distribution for class of 1997 graduates is shown graphically below.

Reasons

Similar to the prior studies, the notable factors for choosing or not choosing a college are related to academic reputation, costs to students, and proximity to (or distance from) home.

The academic reputation of the institution was the most important consideration for respondents choosing any of the four-year college options, public or private, in Oregon or out-of-state.

The affordable cost of OUS compared to other four-year college options continued to be a primary reason for respondents who chose an OUS institution. On the other hand, the relatively high cost of OUS compared to a community college was a preeminent reason those attending an Oregon community college or out-of-state two-year college did not attend an OUS institution. (Of those going to an Oregon community college, more than three-quarters indicated plans to transfer to an OUS school in the future.) For students selecting private four-year and out-of-state institutions, the availability of good financial aid and scholarships was a major reason for their choice.

A desire to stay close to home was a motivation for more than 70 percent of respondents choosing either an OUS institution or an Oregon community college; it was also considered important by over 65 percent of those selecting an Oregon independent college. Conversely, more than 50 percent of students attending an out-of-state four-year institution cited "wanting to leave Oregon" as a major reason for their college choice.

A significant percentage of respondents with high school grade point averages of 3.75 or better continue to choose an out-of-state institution. More than a third of the "high GPA" respondents (34.5 percent of those attending college) selected a four-year university outside Oregon, compared to ten percent of those with GPA's below 3.75.

For the respondents choosing not to go to college, work and cost were the reasons most frequently cited. Other important reasons were entry into the military and the desire for a break from school.

(No Board action required)

Emerging Small Business/Minority & Women's Business Enterprise Contracts

EMERGING SMALL BUSINESS/ MINORITY & WOMEN'S BUSINESS ENTERPRISE CONTRACTS

Staff Report to the Board

Oregon Administrative Rules (OAR) 580-50-041 and 580-50-042 require the Board to annually review the effects of these rules as they relate to the prior calendar year's participation by emerging small business enterprises (ESBs) and minority or women business enterprises (M/WBEs) contractors and subcontractors in capital improvement projects. These projects are defined as any contract in excess of $25,000 for the construction or improvement of facilities.

OAR 580-50-041 states that successful bidders for public improvement projects approved by the Board shall make good faith efforts to "meet the project's goals for subcontracting with or obtaining materials to be used in performing the contract from emerging small businesses." OAR 580-50-042 deals with similar requirements for businesses owned by minorities and women. All such businesses must be certified by the State of Oregon's Office of Minority, Women and Emerging Small Businesses. Successful bidders for capital improvement projects must make "good faith efforts" to hire ESBs and M/WBEs as subcontractors or themselves be certified by the State of Oregon as ESBs, MBEs, or WBEs. Evidence of "good faith efforts" may include taking such actions as attending pre-bid meetings to inform emerging small businesses of contracting or subcontracting opportunities, identifying economically feasible units of the project that can be subcontracted to these enterprises, or advertising in selected publications.

Since reaching an all-time high of 30.6 percent of all public improvement projects awarded in 1993, contracting with ESB and M/WBE certified contractors has declined to levels seen prior to the Administrative Rules passed by the Board of Higher Education in the mid-1980s to encourage equal opportunity for ESB and M/WBE contractors. However, in 1997, participation rates did go up slightly to 16.3 percent or $1,799,298 of $11,068,935 of capital improvement projects issued by university campuses last year. Participation rates in 1997 represent a six percent increase over 1996.

Historically, the largest contracting percentages for certified ESB and M/WBE firms has been in metropolitan Portland. However, Portland State University (PSU) has not had the volume of contracting activity to generate the high levels of participation once previously achieved when Oregon Health Sciences University (OHSU) facilities contracting activities were a part of OUS. For example, during 1994, the last full year in which OHSU contracting activity was a part of OUS, OHSU undertook 20 capital improvement projects with a combined total slightly greater than $21 million. Of that, $5.7 million (26.6 percent) was for ESB and M/WBE contracting. During the same year, the other seven campuses accounted for 16 projects with a combined total of slightly over $10 million with $1.15 million (11.4 percent) in ESB & M/WBE participation. Since 1995, M/WBE and ESB participation levels within the OUS appear to be increasing after experiencing a very low level of 5 percent that year.

It has been generally assumed that the state's strong economy in the 1990s and a corresponding increase in construction activity has provided sufficient demand for all firms--large and small contractors. However, results of the Oregon Regional Consortium Disparity Study, a comprehensive survey conducted in 1996, indicate that despite the economic boom and increase in contracting opportunities, entrepreneurial businesses run by M/WBE contractors still experience discrimination within the construction industry. This survey of minority contractors indicated they are not getting the levels of work that they would expect given the amount of activity currently being undertaken in the construction industry. However, an estimated 85 percent of the members of the Associated General Contractors Association could meet existing ESB certification requirements. This means that one of the state's principal contractor associations is comprised largely of entrepreneurial firms, which in itself forms a business opportunity pool.

The certification requirements vary somewhat between ESB and M/WBE firms. Certification for M/WBE status includes the requirement that the business be at least 51 percent owned by one or more ethnic minorities or women with annual gross receipts for the three previous years not exceeding $16.6 million. The ESB certification has a seven year limit and requires that an Oregon contractor be a small business with annual gross receipts from construction activities for the previous three fiscal years totaling less than $1 million. To be ESB certified, a firm must also have fewer than 19 employees.

Staff are prepared to implement a plan of action that will utilize one or more options for expansion of the Board's ESB and M/WBE program. Options for enhancing this program were presented to university physical plant/facilities directors during an October 1997 meeting and were discussed further during a January 1998 meeting that included all university physical plant/facilities directors and facilities contracting officers. There was consensus among the campuses to pursue a more aggressive approach to increasing M/WBE and ESB participation levels in conjunction with the start of the 1998 construction season.

Recommended options include:

  1. A sheltered market program in which a percentage of projects under a certain dollar amount (e.g., $200,000) would be targeted for ESB certified contractors. Using ESB certified companies allows the campuses to contract without regard to gender or race while enhancing opportunities for emerging small businesses or disadvantaged business enterprises. It has been suggested by physical plant/facilities directors and contracting personnel that small general contractor retainer agreements might be used initially in this option for enhancing ESB participation rates. This initiative will be brought to the Board for approval as a rule change later this year. Based on results of the Oregon Regional Consortium Disparity Study, it is assumed that the majority of members of the Associated General Contractors Association could meet existing ESB certification requirements. Therefore, they form an important business opportunity pool for OUS campuses.
  2. Waiving performance bond requirements on small projects -- current Oregon Administrative Rules allow OUS and the university to waive bonding requirements, thus enhancing participation of small contractors who are operating on a limited business budget. However, the option is seldom used and requires self-insurance on these projects.
  3. Although it is generally standard practice, each campus has been asked to review its policy for prompt payment for services rendered. Smaller companies tend to operate on smaller budgets and may have difficulty meeting expenses if payments are not made expeditiously.
  4. Campuses can decide to contract directly with subcontractors. When a small contractor acts as the general contractor on a project, expenses and payments for subcontractors may become a functional problem to the contractor. Under these circumstances, it may be in the best interest of both the small contractor and the owner to have the owner contract directly with the subcontractors on these smaller projects. This option is working well in higher education through the small general contractor retainers. The retainer agreements allow the campuses to contract directly with small pre-approved contractors through a more administratively efficient and timely process.
  5. On a selected basis, require regular prime contractors to provide mentoring services to ESB and M/WBE certified firms. This option would be applicable to large campus projects where training and supervision could be offered by both the campus contracting officials and the partnering prime contractor. If the university contracting officer elects this option after analysis of the costs and benefits, the Request for Proposal for the prime contractor would include a provision for this service.
  6. Solicit certified ESB and M/WBE firms by various regions of the state. The Office of Minority, Women and Emerging Small Business is willing to make regional lists available for easy reference by campus contracting officers. In addition, advertising costs may be reduced if campus contracting personnel are able to target certified, specialized contractors by geographical area.
  7. A special training session is planned for presentation by the campus contracts and facilities personnel and Chancellor's staff on OUS contracting procedures and M/WBE and ESB certification processes to interested contractors later this fall. Experts from the Department of Justice, the Bureau of Labor and Industries, and the Office of Minority, Women and Emerging Small Businesses will also be invited to meet with prospective contractors.

1997 ESB and M/WBE Contract Participation Levels

During 1997, contracts were awarded for 16 capital improvement projects with a total value of $11,068,935. Successful bidders on these contracts projected that about $1,799,298 of that amount (16.3 percent) would be for work performed by ESB and M/WBEs. Of this total, the projected rate for ESBs was 2.2 percent; the M/WBE participation rate was 14.1 percent.

Historical Profile of ESB and M/WBE Projected Participation Levels

The percentage of M/WBE and ESB participation in each year for the last five years are as follows:


        Year        

  Total Value Capital  
  Improv. Projects
 

Total #
  Projects   

Project
  Avg. Value   

Amount of  
  Participation  


  % Participation   

1997

$11,068,935

16

$ 691,808 $1,799,298

16.3

1996

  24,360,185

26

   936,930   2,482,149

10.2

1995

 13,184,886

13

  1,014,222      661,701

5.0

1994

 10,101,613

16

   631,351   1,152,847

11.4

1993

   8,461,526

12

   705,127 2,588,299

30.6

Note: The capital improvement project information excludes all OHSU contracting activity data.

Interpretation of 1997 Participation Levels

Under the provisions of the Higher Education Administrative Efficiency Act (SB 271), each university continues to manage construction contracts and contract insurance requirements. The universities will continue to report each awarded project to the Chancellor's Office using a single contract award form. The Chancellor's Office Administration Division will continue to report Emerging Small Business and Minority/Women Business contracting activity annually to the Board.

(No Board action required)