I. GENERAL BUSINESS

A. Trustee Business

1. Action Item:

Approval is requested for the minutes of November 3, 2006, which include the Administrative Action Report of October 5, 2006.

Unanimously approved on a motion duly made and seconded.

2. Action Item:

Approval is requested for the 2006-07 Board of Trustee Committee Priorities. (Appendix A)

Unanimously approved on a motion duly made and seconded.

3. Action Item:

Approval is requested for a resolution of the Board of Trustees ratifying the current structural relationship between the president of the Indiana University Foundation and the president of Indiana University.

RESOLUTION OF THE TRUSTEES OF INDIANA UNIVERSITY
RATIFYING THE CURRENT STRUCTURAL RELATIONSHIP BETWEEN
THE PRESIDENT OF THE INDIANA UNIVERSITY FOUNDATION
AND THE PRESIDENT OF INDIANA UNIVERSITY

WHEREAS, the Indiana University Foundation was established by the IU Board of Trustees in 1936 as a separate not-for-profit corporation, with the primary purpose of providing for the fund-raising function of the university. The IU Foundation exists for the "exclusive purpose to support and benefit" Indiana University; and

WHEREAS, it is understood the president of the university and the IU Board of Trustees have the sole responsibility for charting the strategic direction of the university; and

WHEREAS, by historical custom and practice (with few exceptions), the president of the university has served as chair of the IU Foundation; and

WHEREAS, the primary duties of the IU Foundation Board of Directors are to provide for the directives/intentions outlined by donors in their gifts made to the university through the IU Foundation, and to provide the fiduciary stewardship of the funds generated from the fund-raising activities; and

WHEREAS, on October 26, 2004, the presidents of the university and the IU Foundation issued a joint memorandum to conclude then-ongoing discussions regarding the relationship between the IU Foundation and the university. In that memorandum they clarified the role of the IUF president as the Chief Development Officer of the university, for every campus and the university as a whole; and

WHEREAS, in 2005, the IU Foundation established an Executive Committee to operate as the coordinating committee for IU Foundation business. The chair of the Executive Committee serves as the vice chair of the IU Foundation. The president of the IU Foundation, in essence, reports to the chair and vice chair of the IU Foundation; and

WHEREAS, in 2006, Indiana University formed a Search Committee to recruit and select a new president of the university; and

WHEREAS, due to the current demands for private fund- raising activities to meet the growing needs of the university, it is important that the relationship between Indiana University and the IU Foundation be as strong, unified, and focused as possible; and

WHEREAS, in order to recruit the best presidential candidates, it is essential that there is unanimity between the IU Foundation and the university in the support for the current structure of the relationship between the IU Foundation president and the president of the university;

NOW, THEREFORE, BE IT RESOLVED, that the Trustees of Indiana University convey to the President of Indiana University and the Board of Directors of the IU Foundation that that we do support the current structure of the relationship of the IU Foundation president and the president of the university.

Unanimously approved on a motion duly made and seconded.

4. Action Item:

Approval is requested for the appointment of the following individuals to the IU Southeast Board of Advisors for three-year terms, effective July 1, 2006, through June 30, 2009: Carlene Bottorff, Robert Caesar, Vern Eswine, Robert Kleehamer, Phyllis Eichenberger Robinson, Thomas Rohr and Doug York.

Unanimously approved on a motion duly made and seconded.

5. Report on Presidential Search

Trustee Talbot reported that the Presidential Search Committee was making good progress and was scheduled to meet in the coming week.

B. President’s Report

President Herbert: “Thank you very much Mr. President. Let me begin by noting and expressing appreciation for two very significant gifts to Indiana University. The first is a $40-million gift from the Lilly Endowment to the Center on Philanthropy. The endowment played a large role in the center’s founding and has continued to be an essential part of its growth and its high level of success. Our Center on Philanthropy now is the largest and most comprehensive programs of its type in the nation and this gift is the largest grant in the center’s history. The Lilly gift will endow a portion of the center’s core operations in perpetuity. It will ensure that the important work at the center continues. As you know the campus here also continues to make significant investments in its operations. I think that this is especially worthy of note because it’s a powerful illustration of the Lilly Endowment’s commitment to the future success of the center and it reflects the endowment’s strong belief in the importance of philanthropy.

“Last month we also announced a very generous naming gift from the Simon family. Mel and Bren Simon have committed $50 million to support cancer research and treatment at Indiana University. One half of their very generous gift will be used to create the Joshua Max Simon Research Endowment. This endowment will be an invaluable tool in our efforts to retain and to recruit internationally accomplished researchers to the Indiana University School of Medicine. It also will support laboratory research programs in the Cancer Center. The other half of the gift will help to fund the expansion of the Cancer Center’s Patient Care facilities. In addition to this most recent gift, the Simon family also has provided support for several facilities on the Bloomington campus, including Simon Hall, the Helene Simon Hillel Center and the Simon Music. Their passion for helping others will have a major impact on our institution in perpetuity.

“I also would like to extend congratulations today to Linda Malkas who serves as the Vera Bradley Professor of Oncology and her co-researcher Professor of Medicine, Robert Hickey. As you know Drs. Malkas and Hickey have been engaged in research designed to identify a biomarker that can detect breast cancer before a tumor grows. They have found that biomarker and their discovery is being acknowledged by the entire scientific community. It is included this week in the proceedings of the National Academy of Sciences’ on-line early edition, which is one of the most prestigious medical publications in the nation. Dr. Malkas has said that the initial tests have also indicated that the biomarker will help to detect other types of cancer as well including colon and ovarian cancers. She and Dr. Hickey have co-founded an Indianapolis startup company, called CS Keys, to market cancer-screening products based on this research.

“I mentioned this to really make a couple other points. The company recently received venture capital funding from BioCrossroads and it now has two full-time employees and occupies space in IU Emerging Technology Center. It is one of six spin-off companies founded so far this year from IU-based research, and I think it’s important to note that the identification of the breast cancer biomarker is an example of the kinds of discoveries that the Indiana University Life Sciences Initiative will stimulate on a much larger scale. As you can see they are leading to new jobs and new businesses. The critical point is that if the state is able to fund its share of the IU Life Sciences Initiative over the next 10 years, we will bring to IU almost 500 research scientists working on cutting-edge discoveries such as those that I just described. The result will be approximately 2,500 jobs, most of them in life sciences positions created here in the university. They also will stimulate an estimated 11,500 new Hoosier jobs across the state and foster development of at least 100 new companies. This is a bold plan, but as our two colleagues demonstrate, IU has the capacity to carry out the vision that we’ve articulated.

“I also would like to just say a few words about the trip that I just took to Asia as part of a delegation that was led by the Secretary of Education. I was one of 12 college and university presidents who took part in the trip to Japan, Korea and China. Our goal was to counter negative impressions of the United States and to deliver the message that the United States strongly welcomes foreign students to our colleges and universities, and also that we’re interested in doing more in the area of encouraging our students to study abroad. I was really delighted to have the opportunity to talk about IU in each of these countries and to describe some of our outstanding academic programs. The trip provided an excellent opportunity for dialogue with presidential colleagues, with students, and with business leaders. We met with the ministers of education in two of the countries. In China I had the opportunity to meet with three of the four presidents of the universities with which IU has developed partnership agreements. We had two meetings and a lunch with the Chinese minister of education and his senior staff and the secretary of education and their minister of education signed an agreement that will help to facilitate closer collaboration between higher education institutions in our two countries.

“As a follow-up, I anticipate that a group composed of IU deans and staff members will be visiting China this March and that is a delegation that I hope to lead and as a result of the relationships we’ve established with the ministerial staff in China and with the Embassy I think we’ll get a great deal of support for some of the things we want to do there.

“Mr. President I have only two more items on which I’d like to update you. I would like to extend congratulations to Chancellor Bantz, Vice President Brater and their colleagues who were instrumental in developing the new strategic alliance with Moi University in Kenya. What began 15 years ago as a faculty-student exchange program to help launch that institution’s School of Medicine has become a very effective program to battle HIV/AIDS. This donor-funded program is called AMPATH. It has now been called the most comprehensive AIDS treatment and prevention program in Africa. The program is so unique because in addition to research and treatment at the university it provides grass-roots training that enables Kenyans to treat victims of HIV/AIDS in local clinics and also to engage in grass-roots public prevention education programs. I am very proud of what they’ve done. Chancellor Bantz, Vice President Brater and colleagues recently traveled to Kenya to sign a very important agreement that engages the entire IU campus in partnerships with that university.”

President Herbert concluded his report by introducing Associate Vice President Vic Borden, who reviewed an updated version of the president’s goals and priorities, along with a revised document entitled, “The Indiana University Accountability Framework.” He also presented a working draft of a report entitled, “IU Transforming Indiana,” whose purpose is to demonstrate IU’s impact on the state. It was developed as a collaborative effort on the parts of Vice Presidents Mike Sample and Charlie Nelms, along with Mr. Borden. There was a lengthy discussion about the types of data that the report covers and the ways in which it will be displayed.

C. Faculty Report

UFC Co-Secretary Ted Miller reported that the University Faculty Council had approved a new intellectual property policy for Indiana University. He said it was a complicated policy and that some faculty members were still concerned about it, even in its final form.

Next, Prof. Miller cited his concerns about the confidential nature of the presidential search. He said faculty understood why the first part of the search had be conducted confidentially, but that once the names of the finalists went to the Board of Trustees and the process of due diligence begins, it is highly likely that the names of these candidates will no longer be secret. He said there is a strong feeling in the faculty that that phase of the search really should be opened up that we should know who the finalists are.

Prof. Miller then turned his attention to a report that the board had received earlier in the day on multi-campus schools. He said there was confusion among the faculty over the use of certain terms, including “the one university idea” and the “core campus terminology.”

He also said he was puzzled by the characterization of the relationship between IUB and IUPUI as it had been described by some trustees, among others. He said the UFC had worked well over many years and the relationship between Bloomington and Indianapolis is important. He doubted that the multi-campus school construct could resolve any problems between the two campuses.

He said he was denying that there are disagreements between Bloomington and Indianapolis. There are disagreements. I’m just saying here today that that idea I don’t believe can solve whatever this problem is. I think we need different ideas. I’m not sure what they are, but I’m just saying today I don’t think this is the one.

Finally, he reported that Roger Thompson had appeared before the BFC earlier in the week and that his ideas for strengthening enrollment were met with approval by Bloomington faculty.

D. Student Report

Nathan Kohley, president of the undergraduate student association, reported on student accomplishments at IUPUI, citing in particular the growth of Student Life on the campus. There are over 200 student organizations on the campus; student programming is increasing; and student government has updated its guidelines for student activities fees and how they are allocated. He said all students were anticipating the completion of the new Campus Center.