MINUTES OF THE BOARD OF TRUSTEES OF INDIANA UNIVERSITY
INDIANA UNIVERSITY BLOOMINGTON
September 21, 2007

Trustees Present: President Stephen L. Ferguson, William R. Cast, Philip N. Eskew, Arthur D. King, Thomas E. Reilly, Jr., Patrick A. Shoulders, Sue H. Talbot

University Representatives: President Michael A. McRobbie
Vice Presidents: Charles R. Bantz, Karen Hanson, Terry Clapacs, Dorothy J. Frapwell, Patrick O’Meara, Mike Sample, Neil Theobald
Chancellors: Bruce Bergland, Nasser Paydar, Una Mae Reck, Sandra Patterson-Randles, Ruth Person
Secretary: Robin Roy Gress
Treasurer: Mary Frances McCourt

Other Attendees: Karen Adams, John Applegate, Billy Bennett, Lynn Coyne, Jack Dahl, Michael Edwards, Momi Ford, Linda Frichner, Trevor Fulk, Ken Gros Louis, Alfred J. Guillaume, Jr., Larry Haggerman, Bruce Jacobs, Matt Jarson, Steve Keucher, Scott Leadingham, Larry MacIntyre, Dick McKaig, Kathleen McNeely, Gabriel McGuire, David Maller, Bob Meadows, Lorelei Meeker, Susan Moke, Bart Ng, John Paflas, Lisa Pratt, Terry Radke, Judy Rice, Dan Rives, Paul Rohwer, Jeanne Sept, Steve Solie, Paul Sullivan, Stephen Taksar, Roger Thompson, Ester Uduehi, Amy Warner, James Wimbush, W.T. Wright

CALL TO ORDER

I. General Business

A. Trustees Business

  1. Action Item: Approval is requested for the minutes of the meeting of May 4, 2007, which includes the Administrative Action Report of May 5, 2007; the meeting of June 22, which includes the AAR of June 5, 2007; and the meeting of August 17, 2007, which includes the AAR of August 5, 2007.

    Unanimously approved on a motion duly made and seconded.

  2. Action Item: Approval is requested for the appointment of Kathryn D. Callen to the Indiana University-Purdue University Fort Wayne Foundation Board of Directors to fulfill the five-year term of Larry Lee, which concludes in 2009.

    Unanimously approved on a motion duly made and seconded.

  3. Action Item: Approval is requested for a revised 2007-2008 Board of Trustees meeting calendar.

    September 20 - 21, 2007
    Thursday – Friday
    IUB
    December 6 – 7, 2007
    Thursday – Friday
    IUPUI
    January 31 – February 1
    Thursday – Friday
    IUE
    May 1-2, 2008
    Thursday – Friday
    IUB
    June 19 – 20, 2008
    Thursday – Friday
    IUK

    Unanimously approved on a motion duly made and seconded.

B. President’s Report

1. Remarks from Michael A. McRobbie

“As you all know, I am always enthusiastic when I talk about the concept of excellence and how vitally important it is for all of us in the university community to be constantly striving for ever-greater achievements in our dual missions of education and research. Executing these missions well—and constantly seeking improvement—is what sets us apart from other institutions of higher learning. As president, I have pledged to do all I can to reinvigorate our commitment to excellence at every level of academic endeavor and in every corner of every campus.

“In keeping with that pledge, today I would like to re-institute the practice of sharing good news. I would like to take advantage of this forum to publicly acknowledge the extraordinary achievements of our students and faculty—achievements that bring great honor and prestige to Indiana University.

Exceptional Students

“So today I ask you to welcome three truly exceptional students. They are here to talk briefly with us about their reasons for coming to IU, the work they are doing here, and their plans for the future.

“I am very happy that Esther Uduehi could join us this morning. Esther is a freshman Wells Scholar from Evansville. She is a National Achievement Scholar, an AP Scholar, and a Lugar Scholar. She is a two-time Grand Award winner at the Tri-State Science and Engineering Fair and a two-time finalist at the Intel International Science and Engineering Fair. At IU, Esther is majoring in physics and participating in the IU STARS undergraduate research program.

“I also am pleased to present Billy Bennett. Billy is a Kelley Scholar from Indianapolis. He is a junior in the Kelley School of Business with majors in Business Economics and Public Policy and Entrepreneurship. He also is president of the Kelley Student Government organization. As you know, this year the Kelley School’s undergraduate programs were once again ranked by U.S. News and World Report as among the top 2% in the nation.

“And finally, Gabe McGuire is with us today to talk about the research he plans to do in Kazakhstan. Gabe is from Fairbanks, Alaska and is a doctoral candidate in folklore. He is one of the 13 IUB graduate students offered Fulbright Hays grants from the U.S. Department of Education. He is one of eight IUB students offered State Department Fulbright U.S. Student grants. He opted for the Fulbright Hays award. Gabe will be exploring the agricultural economy and pastoral cultural practices of Post-Soviet Kazakhstan. He became interested in Kazakhstan through Kazakh friends he made here at IU.

“They will speak without further introduction.”

Ester Uduehi: “My name is Ester Uduehi and my majors are Physics and Spanish in a Pre-Med Track. I have come to IU because, although it is a large school, I would be able to get a small liberal arts environment in a large setting, and see a lot of groups and organizations I wouldn’t be able to see at the smaller schools.

“The Wells Scholars program is amazing, not only because I don’t have to pay for tuition, room and board and all necessary fees, but also because of the study abroad component, which is a very important part of the undergraduate education. I’m currently working at Dr. Omar Flood’s chemistry lab, and after graduation I hope to pursue a medical degree or an M.D./Ph.D.”

Billy Bennett: “As Dean McRobbie said, my name is Billy Bennett. I’m a junior from Indianapolis majoring in Business Economics and Public Policy and Entrepreneurship.

“I chose to come to IU partly because it was the only school at which I felt at home and the Kelly scholarship certainly helped solidify that decision. I want to briefly highlight two experiences that have had an impact on me.

“Last fall, I got to travel to New Delhi in India. We got to see globalization in action. We got to view outsourcing sites, political leaders as well as some of the biggest businesses in India. That really opened my eyes to the global economy and how globalization is really taking hold in this day and age.

“The second experience revolves around my internship this past summer. I interviewed with eight firms and I received zero offers for an internship. So instead of getting an internship here in the United States, I decided to go to Spain and finish my Spanish minor. While there, I interviewed with 13 firms in Spanish, and I received an offer from an international consulting firm based out of Seville but with offices in the European Union seat of Brussels. For two months I had the opportunity to work on projects that spanned the European Union, and I also had the opportunity to travel into Morocco and Northern Africa to help design and implement an economic development mission.

“After graduation I would like to start out in management strategy consulting for a couple of years and then I would like to return to graduate school to pursue either an MBA or an MBA/JD joint degree. Eventually, I could return to consulting or shift into management. My long-term goal is to start my own non-profit.”

Gabe McGuire: “I’m studying the reorganization of pastoral customs and the pastoral economy in rural Kazakhstan following the breakup of the Soviet Union and more specifically following the breakup of the large collective farms which previously dominated the rural economy of Kazakhstan. I came to Indiana four years ago because it has a very excellent folklore department and because it has very good Centro Eurasian departments. These are very unusual departments and I was very lucky I was able to come to a university which has strengths in both areas.

“I chose to study Kazakhstan because of the many friends I have met here at IU. Two summers ago in 2006 I was able to go to Kazakhstan to begin pre-dissertation research thanks to a grant from Indiana University’s Office of International Programs. It was at this time that I narrowed my research focus to rural pastoral practices. I’ve also been kindly supported by the Centro Eurasian Studies Department, which has made it possible for me to learn the Chaska language and to return this last summer 2007.”

President McRobbie: “Ester, Billy and Gabe, we wish you all the best in your careers; you bring great credit and distinction to the university and thank you very much for being with us tonight.

Enrollment

“Fall classes are now well under way, and I am pleased to report today that we have 99,122 students attending classes at our eight campuses. That is an increase of 1.2 percent from last year and our second-highest enrollment ever. Not since 2003 have we started the academic year with more students.

“As Roger Thompson pointed out in his presentation to the Academic Affairs Committee, we have set several enrollment records this year. At Bloomington, we have the most academically talented class in recent history. IUPUI has shown an increase in full-time enrollment of 551 students. Enrollment is up by 1 to 3 percentage points at four of our five regional campuses.

Student VOICE

“Now that the students are back, I should like to report on a new student initiative. I first announced last spring that I want to engage students in the process of planning for the future of Indiana University. Thus, I have established student steering committees here at Bloomington and at IUPUI to advise me on what the ideal college living and learning environment should be for the 21st century.

We are calling this project VOICE, which stands for Vision of the Ideal College Environment. The steering committee will coordinate five student subcommittees, each of which will focus on a specific area of student life. The five areas are:

“I have asked the steering committee to produce a written report based on the recommendations of each subcommittee and to submit it to me during the spring semester. As today’s remarks by our student presenters illustrate, we have many bright students at Indiana University who can provide genuine insight about directions for the future when asked to think in visionary ways.

Faculty Awards and Achievements

“We also have many outstanding faculty members. Earlier this month, the Humboldt Foundation in Germany recognized one of our own—Hans-Otto Meyer, a long-time physics professor here in Bloomington—with a Humboldt Research Award in recognition of his extraordinary research achievements especially in the field of nuclear physics. The Humboldt awards are among the most prestigious international awards that recognize the world’s top research scientists. Professor Meyer will receive an $80,000 stipend and has been invited to collaborate with leading physicists in Germany.

“It would be nearly impossible to easily explain the nature of Professor Meyer’s research, which he performs at the cyclotron here, but I can tell you that it has been groundbreaking in the field of nuclear technology.

“This academic year, we were also pleased to learn that six IU faculty members have won Fulbright and Guggenheim research fellowships, with one faculty member winning both awards.

“Bradley Levinson, a professor of education policy studies, was awarded a Fulbright-Hays Faculty Research Abroad Fellowship by the U.S. Department of Education. He will study the democratic transition and civic educational reform in Mexico. He will be in Mexico for the next 10 months.

“Frances Trix, assistant professor of anthropology and linguistics at IUB, has been awarded a Fulbright Scholar grant to conduct research on Muslim refugees from the Balkans and their assimilation in Turkey. She will spend 5 months at Sabanci University near Istanbul.

“John Walbridge, chairman of the Department of Near Eastern Languages and Cultures, has been awarded a Fulbright Scholar grant to conduct research in Turkey on the philosophical foundations of Galenic medicine. He will be working as a senior research scholar for nine months at the Research Center for Islamic History, Art, and Culture in Istanbul.

“Professor Walbridge is also among four IU professors to win Guggenheim Memorial Foundation awards this year. The Guggenheim award is one of the world’s most prestigious awards for artists, humanists and scientists and is indicative of a very high level of academic achievement.

“Our other Guggenheim winners are IUB science historian Domenico Bertoloni-Meli, composer David Dzubay, and sociologist Pamela Barnhouse Walters. They bring the total of Bloomington faculty who have received Guggenheim Fellows to 210.

Sponsored Research

“Our faculty continue to compete successfully for research grants and contracts. During fiscal year 2007, Indiana University faculty were awarded over $433 million in sponsored awards in support of their research and service activities. This figure is the second highest fiscal year total in the university’s history. It marks an increase of 2.9% over the sponsored research totals for FY 2006. That total was nearly $421 million.

“This impressive achievement by IU’s faculty comes at a time when success rates for proposals to the National Institutes of Health (NIH) and the National Science Foundation (NSF) have been steadily declining. From 2000 to 2006, success rates have dropped from one in three to one in five.

“Both the NIH and NSF have experienced a steadily growing number of applications and relatively stagnant levels of funding. In the face of these constraints, the NIH cut nearly all awards this past fiscal year by roughly 3%.

“That had an impact here at IU. Our NIH awards for FY 2007 totaled approximately $140 million, a decrease of over $25 million from the prior fiscal year.

“Overall, our total federal sponsored research dollars has fallen from roughly $235 million in FY 2006 to $211 million in FY 2007. A $40 million grant from the Lilly Endowment to support the Indiana University Center on Philanthropy somewhat diminished the impact to IU’s total grant awards caused by the decrease of federal award dollars.

IUF Investment Management

“We are fortunate that the IU Foundation provides exceptional stewardship for such funds. The Foundation is celebrating an extraordinarily good year for investment management. Earlier this month, Curt Simic announced that the endowment had earned 21.5 percent on its investments in the past fiscal year. The market value of the endowment now stands at $1.6 billion dollars.

“Over the past ten years, the endowment’s invested funds have earned a compounded annual return of 9.8 percent. That compares to 7.1 percent for the S&P 500. National rankings on the market value of university endowments are issued in late winter. I will be able to provide you with data on our performance in comparison to other institutions at that time. Suffice it to say, we have some exceptionally skillful money managers at the Foundation and a very dedicated investment committee on the Foundation Board of Directors. The market value of Indiana University’s endowment has been ranked in the top fifteen among all public universities since 1990.

Master Planning

“I will now turn to initiatives and policies. A contemporary master plan is essential to Indiana University as see to address over the next decade our severe lack of space, especially in Bloomington. I would like to report that I have directed Vice President Clapacs to begin the process of choosing an architectural firm to prepare a new master plan for both the Bloomington and Indianapolis campuses. My intent is to identify a firm with extensive experience in the development of master plans for large organizations and to do so by the end of this year. The selection process itself will involve faculty and students, as well as our facilities professionals. I hope to bring you a recommendation at the December Trustees meeting.

“The development of the master plan will be done in 2008. The actual planning process will intensively involve all of the university’s internal constituencies in defining needs and identifying solutions.

“I would like to be able to present you with a plan at our December, 2008 meeting. This ambitious schedule will provide a rationale for the siting of specific buildings and will better enable us to make informed decisions about future building priorities. It will also seek some conceptual integration in areas like sustainability and economic development.

“After we complete stage one of this master planning process, we will embark on stage two, which will focus on the development of a general space use plan for IU’s regional campuses and learning centers.

Notification System

“President Ferguson, I have two additional items to update you on briefly. I am sure many of you saw the recent news reports about recommendations to improve security and student safety at Virginia Tech. The recommendations were made by a blue ribbon panel appointed by the Governor of Virginia. I suspect that many of their recommendations will ultimately become the standard for security and safety on campuses across the nation. Thus, I have directed the relevant IU staff my staff to review this report closely with IU in mind.

“One of their recommendations calls for a campus emergency communications system that uses multiple means of communications to alert people. We are in discussions with a vendor who offers a very robust system that would cover all eight of our campuses. Because we are in the final stages of contract negotiations, I am somewhat limited in what I can say publicly, but our goal is to begin implementation by the end of this month and to be fully operational by the end of the year.

“This system will enable us to send nearly simultaneous messages by text, telephone, and e-mail to students, faculty, and staff. In addition to crisis notifications, it will provide a tool for alerting the IU community to weather delays, schedule changes, and important administrative news. More information on this system will be forthcoming at our next meeting.

International Fact Book

“As my final item of good news, I would like to call your attention to our new International Fact Book. It contains many interesting facts. I will mention only two.

“I direct your attention to page 10. In the fall of 2005, IU Bloomington had 3,540 international students. As the chart on page 10 illustrates, that placed us 17th among all public and private universities in the nation. Last year, university-wide, we had 4,910 students. That was a record number.

“This year, university-wide, we have 5,309. 3,872 of these students are enrolled on the Bloomington campus.

“I would also like to call your attention to an interesting fact on page 35. Over the last decade, we had the twelfth highest number of students university-wide studying abroad of any institution in the nation.

“That is a clear demonstration that IU is a truly international university. As Herman Wells was fond of saying—IU’s campus extends around the world.”

C. Faculty Report

1. Remarks from Bart Ng, co-secretary, University Faculty Council

Prof. Ng congratulated the new members of the board, and said he wished to review pending topics before the University Faculty Council. He said he looked forward to trustee action on the Intellectual Property and Research Misconduct policies, and said the UFC would shortly take up the Family Leave Policy.

D. Student Report

1. Remarks from William T. Wright, president, Indiana University Student Association

President Wright welcomed new trustees to the board, especially Student Trustee A.D. King.

He said a number of recent developments, including the Student VOICE Project, which is intended to identify student recommendations for their vision of the ideal college environment, a Circle of Life marathon on Sept. 8, and President McRobbie’s office hours for students, had all met with a positive response.

He reported on the formation and organization of his administration and said student leaders would be participating in the creation of a recycling initiative on campus, especially in Greek housing, and on the planning committee for renovations at the HPER and SRSC facilities. Other pending projects include the creation of a financial services task force for students, making student evaluations available electronically, and the addition of an electronic drop/add policy.

2. Remarks from Paul Rohwer, moderator, Graduate and Professional Student Organization:

Mr. Rohwer said the GPSO was planning its second annual “diversity social” at a local restaurant, along with an evening of jazz and art at the University Club. He said the organization would encourage eligible students to vote in the November elections and will work on recycling as well.

II. REPORTS FROM COMMITTEES

A. Facilities Committee

  1. Report from Trustee Cast

    Trustee Cast said the committee had convened on Thursday with all members in attendance. The committee intends to spend more time on substantive issues and strategies by using more pre-meeting distributions and an expanded consent agenda. Members reviewed the committee’s mission and said that in the coming year, they would:

    • • Work with President McRobbie on the IU Master Plan;
    • • Consider the university’s handling of items such as property management and space utilization, and evaluate areas where IU’s campus overlaps Bloomington neighborhoods;
    • • Examine the R&R budget with an eye on the true cost of deferred maintenance;
    • • Look at the timing of requests and reports to state government, including the Budget Commission and the Legislature, to be sure that the university stays on top of submissions to avoid delays.
  2. Project Approvals

    • IUB – Herman B Wells Library Re-roof

      Action Item: Approval of the Board is requested to proceed with a full re-roof and other associated exterior work on the Herman B Wells Library, located on the Bloomington campus. The project will install new roofing systems on the second, third and fourth floor roofs and the east and west tower roofs. Work also includes the installation of a new lighting system on the second floor roof and stone restoration to limestone coping on all roof levels excluding the east and west tower roofs. Estimated to cost $1,748,756, the project is funded by Repair and Rehabilitation funds. Appropriate State approvals will be requested.

      Unanimously approved on a motion duly made and seconded.

    • IUB – McNutt and Teter Quad Restroom Renovation

      Action item: Approval of the Board is requested to update restrooms on all floors of Delgado Wing of McNutt Quad and Boisen Wing of Teter Quad. The existing common restrooms/showers will be replaced with an individual style configuration to provide privacy for residents. New piping and ventilation systems, lighting and fire alarm strobes will be installed. Funded by the Department of Residential Programs and Services, the project is estimated to cost $3,347,763. Appropriate State approvals will be requested.

      Unanimously approved on a motion duly made and seconded

  3. Design Approvals

    • IUSB – Administration Building Renovation

      Action item: Approval of the Board is requested for the design of renovations to the Administration Building on the South Bend campus. The project includes the build out of several existing areas to house new functions and the installation of new finishes through out the course of the project. Work also includes the construction of a new entrance/ vestibule at the north entrance of the building. The exterior of the new addition will be designed to match the existing limestone exterior of the current building.

      Unanimously approved on a motion duly made and seconded

    • IUPUI – HITS Sculpture

      Action Item: Approval of the Board is requested for the design of a sculpture to be placed in front of the HITS building in Indianapolis. The sculpture, entitled “Spirit Keeper” was created by Steve Woolridge, an alumnus of the Herron School of Art and Design. It was donated by IUPUI by Norma Winkler.

      Unanimously approved on a motion duly made and seconded

  4. Real Estate Matters

    • IUSB – Expansion of Master Plan

      Action Item: Approval is requested to expand the Master Plan boundary of Indiana University South Bend to include a parcel of real estate adjacent to and east of the existing Master Plan area. This parcel is approximately one-half acre on the southeast corner of Mishawaka Avenue and 20th Street. This area would provide additional office and administrative support for the campus as well as supplemental parking.

      Unanimously approved on a motion duly made and seconded

    • IUB - Approval of transfer of title and assignment of contract rights and obligations (“Indiana Plan”) from Beta Alpha Chapter of Alpha Delta Pi, Inc., to Alpha Delta Pi Sorority or its wholly owned subsidiary or affiliate.

      In 1992, Indiana University approved participation in the “Indiana Plan” for the Beta Alpha Chapter of Alpha Delta Pi, Inc., sorority. The Beta Alpha Chapter and the national headquarters organization for the sorority, Alpha Delta Pi Sorority, have reached an agreement for the national headquarters organization to take title to the Beta Alpha Chapter real estate described below, located at 2001 Fisher Court, Bloomington, Indiana; and assume the obligations of the Beta Alpha Chapter pursuant to the note, mortgage and Real Estate Purchase and Sale Agreement. In order to accomplish this transfer and assumption, Indiana University will be required to execute assignments of the existing Indiana Plan documents and consents to the assumption by the national headquarters organization, and such other documents as may be required to accomplish the transfer of ownership and obligations on the existing note, mortgage and Real Estate Purchase and Sale Agreement.

      Action Item: Approval is requested to extend the Indiana Plan to the national headquarters organization, Alpha Delta Pi Sorority, in the same manner as extended to the Beta Alpha Chapter of Alpha Delta Pi, Inc., and to authorize the Treasurer to execute such documents as may be required to give effect to the transfer of the ownership and obligations under the existing note, mortgage and Real Estate Purchase and Sale Agreement to Alpha Delta Pi Sorority as to the following described real estate:

      Lot Number Seven (7) in NORTH JORDAN AVENUE EXTENSION SUBDIVISION “1983”, as shown by the Plat thereof recorded in Plat Book No. 7 at pages 159-160, and the Amendment thereto as shown in Plat Book No. 7 at page 187, all in the Office of the Recorder of Monroe County, Indiana.

      Unanimously approved on a motion duly made and seconded

  5. Discussion Items

    Trustee Cast said the committee also discussed job order contracting for information and parking relief for the HITS building on the Indianapolis campus before going into executive session.

B. Finance & Audit Committee:

  1. Report from Trustee Reilly

    Trustee Reilly reported that the committee had met that morning with Trustees Ferguson, Cast, King and Eskew present, in addition to himself.

    He said the committee began by reviewing IU’s financial position for the end of Fiscal Year 2007. He said the university’s general fund balance had increased 2.2% and the fund balance for operations had increased 21.7%. He said there had been an excellent turnaround at the School of Law at Indianapolis. The committee reviewed several deficit items and identified administrative plans for addressing them; analyzed the fall 2007 campus enrollments; and discussed spending plans at the four campuses with unbudgeted fee revenue.

    Terry Radke, director of internal audit, presented the annual audit report and plan for the coming year, including an overview of the department’s organization, a discussion of the major financial compliance and control risk facing the university, as well as the 2008 internal audit work plan. Trustee Reilly noted there had been considerable progress made in the area of university compliance, citing in particular the work being done by Ora Pescovitz, Vice President for Research. Issues surrounding computers, data security and disaster control were discussed and were put on a high priority for follow-up by the committee.

    Mr. Radke also told the committee that the reporting hot line, implemented earlier this year to receive anonymous reports of fraud and fiscal misconduct, had received a few contacts.

    Trustee Reilly said the committee also discussed the major issues that the committee is going to address this year, including:

    • • Affordability, the whole question of tuition, fees and other costs, and the provision of an affordable education to anyone who needs it
    • • Funding issues for future facilities
    • • The administration’s plans for overhead cost review
    • • Planning and accountability, a 10-year plan that will integrate all the capital needs, and income needs and expenses with matrix in a dashboard form
    • • The housing plan for Bloomington, specifically how the university will address the needs raised therein
    • • Auxiliaries

    He said that in the future, internal audit will continue to an important part of the committee’s work as will be cash management and investments of the liquid assets.

  2. Action Item: Approval is requested for the 2008-09 housing rates for IU South Bend.

    INDIANA UNIVERSITY SOUTH BEND
    STUDENT HOUSING CONTRACT RATES PER STUDENT
    EFFECTIVE 2008 - 2009 ACADEMIC YEAR

    Types of
    Apartment Units

    # of Beds
    Available

    Academic Year
    Contract

    Annual Contract
    4 bedroom/2 bath
    304
    5,000
    5,500
    2 bedroom/2 bath
    88
    6,000
    6,600
    1 bedroom/1 bath
    8
    7,500
    8,250
    Total Beds
    400



    The contract rates listed above are the same rates as used in the housing proposal pro forma. The only change is the mix of one-, two-, and four-bedroom apartments. The original mix in the housing proposal was as follows: 296 beds in 74 four-bedroom units, 92 beds in 46 two-bedroom units and 12 beds in 12 one-bedroom units.

    As far as comparative data, the Anderson Strickler report (Page 2 - Executive Summary) documented the comparison of proposed rates with the South Bend market in determining the market demand for IU South Bend Student Housing. The rates used in the comparison were: $4,760 (4-bedroom unit); $5,450 (2-bedroom unit) and $7,465 (1-bedroom unit). The comparison was done in 2006. The above rates are adjusted upwards 5% to reflect two years of inflation from 2006 to 2008. Also, the-2 bedroom tested was a 2-bedroom/1-bath configuration. The change to a 2-bedroom/2-bath configuration yielded the higher price for this unit versus the market report rate.

    Unanimously approved on a motion duly made and seconded

  3. Action Item: Approval is requested for the 2008-09 housing rates for IU Southeast.

    IU SOUTHEAST HOUSING RATES
    APARTMENT HOUSING PROJECT - PHASE 1
    STUDENT HOUSING CONTRACT RATES PER STUDENT
    EFFECTIVE 2008-2009 (FY09) ACADEMIC YEAR

    Types of Apartment Units
    # of Beds
    Available

    Academic Yr
    Contract

    Annual
    Contract
    4 Bedroom / 2 Bath
    160
    5,890
    7,068
    2 Bedroom / 2 Bath
    208
    5,460
    6,552
    2 Bedroom / 1 Bath
    30
    6,450
    7,740
    1 Bedroom / 1 Bath
    5
    6,940
    8,328
    TOTAL
    403



    Notes on Rates:

    1. rates are 3% lower than those assumed in the original proforma. Campus funds will be used to lower overall borrowing costs allowing for lower rates.
    2. The 2-Bedroom/2-Bath Apartments have two students per bedroom for lower division students by design. All other unit types are single bedrooms.
    3. The rates tested by Anderson Strickler (after adjusting for inflation) are higher than the recommended rates shown above.ested market rates by Anderson Strickler with the inflation adjustment are:

    Tested market rates by Anderson Strickler with the inflation adjustment are:



    Academic Year
    Annual
    4 Bedroom / 2 Bath
    6,148
    7,380

    Unanimously approved on a motion duly made and seconded

    Trustee Reilly said the committee unanimously approved two resolutions and recommended full board approval for both.

  4. Action Item: Approval is requested for a resolution of the board delegating authority to the Finance & Audit Committee for the issuance of one or more series of bonds or notes.

    Resolution of the Board of Trustees of the Trustees of Indiana University Authorizing the Finance and Audit Committee of the Board of Trustees to Authorize the Issuance of One or More Series of Student Fee Bonds, Proposed Consolidated Revenue Bonds, or Commercial Paper Notes for the Purpose of Financing New Projects and Refunding Prior Bonds and Prior Commercial Paper Notes

    WHEREAS, The Trustees of Indiana University, a body politic organized and existing under the laws of the State of Indiana (the “Corporation”), is charged with operating the institution of higher education known as Indiana University (the “University”) and is authorized under the laws of the State of Indiana, particularly Indiana Code 21-34-6 and Indiana Code 21-35-3, to issue bonds from time to time in order to acquire, construct, renovate and equip various facilities of the University; and

    WHEREAS, the Corporation intends to acquire, construct, renovate and equip the projects on the Bloomington, Fort Wayne, Indianapolis, South Bend, and Southeast campuses of the University described in Exhibit A hereto under Indiana Code 21-34-6 and Indiana Code 21-35-3, (the “New Projects”); and

    WHEREAS, the New Projects and the financing thereof were specifically authorized by the Indiana General Assembly in 2001, 2003, 2005, and 2007 (except for certain projects to be funded under Indiana Code 21-35-3, for which no such approval is required); and

    WHEREAS, the Corporation may elect to (i) refund all or a portion of the Indiana University Student Fee Bonds Series H, Indiana University Student Fee Bonds Series I, Indiana University Student Fee Bonds Series J, Indiana University Student Fee Bonds, Series K; Indiana University, Student Fee Bonds, Series L; Indiana University Student Fee Bonds, Series M; Indiana University Student Fee Bonds, Series N; Indiana University Student Fee Bonds, Series O; Indiana University Student Fee Bonds, Series P; Indiana University Student Fee Bonds, Series Q; Indiana University Student Fee Bonds, Series R; Variable Rate Student Residence System Bonds, Series 1998; Variable Rate Facility Revenue Bonds, Series 2000; Floating Rate Student Residence System 2004A; Fixed Rate Student Residence System 2004B; Facility Revenue Bonds, Series 1994A; and Facility Revenue Bonds, Series 2004; or any of them (the “Prior Bonds”), issued to finance or refinance various previously financed projects of the University (the “Prior Projects”), and (ii) refund all or a portion of the Tax Exempt Commercial Paper Series 2005 and 2007 Tax Exempt Commercial Paper Program, Series A notes (collectively, the “Prior TECP”), and

    WHEREAS, the Board of Trustees (the “Board”) of the Corporation now desires to authorize its Treasurer (including any Assistant Treasurer) (collectively, the “Treasurer”) to investigate, develop and evaluate proposed plans of finance, including the advisability of bond or note issuance in one or more series (the “Plans of Finance”) for submission to the Finance and Audit Committee of the Board (the “Committee”) for the financing of the New Projects and the refinancing of the Prior Projects through the refunding of all or a portion of the Prior Bonds and the Prior TECP;

    NOW THEREFORE, BE IT RESOLVED by the Board as follows:

    Section 1 The Treasurer is hereby authorized to investigate, develop and evaluate Plans of Finance and to present such Plans of Finance for consideration by the Committee.

    Section 2 The Board hereby authorizes the Committee to approve the Plans of Finance or any portion thereof and to authorize the execution and delivery of one or more series of bonds or notes under the statutes described above (the “Financings”) and the documents referred to in Sections 3, 4, 5, 6, 7, 8 and 9 hereinafter, provided that the following conditions are met:

    1. The total issued amount (i) of student fee Bonds shall not exceed the sum of $167,672,000, for the New Projects, plus amounts necessary to defease and refund all or a portion of Prior Bonds, and including but not limited to the redemption premium, if any, and (ii) of proposed Consolidated Revenue Bonds should not exceed the sum of $149,412,110, for the New Projects, plus amounts necessary to defease and refund all or a portion of Prior Bonds or Prior TECP, and including but not limited to the redemption premium, if any, and (iii) of any proposed tax exempt or taxable commercial paper notes (Commercial Paper), in amounts necessary to defease and refund all or a portion of the Prior Bonds or Prior TECP, and including but not limited to the redemption premium, if any, and (iv) shall include amounts to provide funds for costs of a debt service reserve fund or a surety bond, capitalized interest, credit enhancement, and ordinary and necessary amounts to pay costs of issuance and other costs incidental to the issuance of the Financings, all as permitted by law;

    2. The Financings shall be sold at a rate or rates fixed to maturity producing a true interest cost of 6% per annum or less, or at a variable rate or rates as established pursuant to the applicable supplemental indenture for such series as may be approved and determined by the Committee; and

    3. The final maturity on the Financings shall not exceed thirty (30) years from, and including, the date of first principal payment with respect to each series of bonds and ten (10) years from, and including, the date of issuance, with respect to each series of Commercial Paper.

    Section 3 Subject to the conditions in Section 2 hereof, the President of the Corporation (the “President”), any Vice President of the Corporation (the “Vice President”) or the Treasurer, or any of them acting individually, is hereby authorized to execute and deliver a Bond Purchase Agreement for each series in substantially the form approved by the Committee, with those changes that the officers so executing shall approve, such approval to be conclusively evidenced by the execution and delivery thereof.

    Section 4 Subject to the conditions in Section 2 hereof, the President or any Vice President, or any of them, is hereby authorized to execute and deliver, and the Secretary of the Corporation (the “Secretary”) or the Assistant Secretary of the Corporation (the “Assistant Secretary”), or either of them, is hereby authorized to attest the signature of and to imprint the corporate seal of the University on, a supplemental indenture for student fees (the “Supplemental Indenture”), and a proposed trust indenture and/or a supplemental indenture for the Proposed Consolidated Revenue Bonds (the “Revenue Indenture” and together with the Supplemental Indenture, the “Indentures”) as necessary in substantially the form approved by the Committee, with those changes that the officers so executing shall approve, such approval to be conclusively evidenced by the execution and delivery thereof.

    Section 5 Subject to the conditions in Section 2 hereof, the Treasurer is hereby authorized as part of the Plans of Finance to distribute or to direct underwriters of each series of Financings (the “Underwriters”) to distribute a Preliminary Official Statement for each series of bonds, as necessary, in substantially the form approved by the Committee, to prospective purchasers of the Financings. The Treasurer is further authorized to distribute or direct the dealers for each series of Commercial Paper (the "Dealers") an Offering Memorandum, in substantially the form approved by the Committee, to prospective purchasers of the Commercial Paper. The Treasurer, if necessary, is further authorized to deem the Preliminary Official Statement or Offering Memorandum as final for purposes of applicable SEC rules.

    Section 6 Subject to the conditions in Section 2 hereof, the Treasurer is hereby authorized to execute and deliver the form of any final Official Statement or Offering Memorandum for each series as approved by the Committee, with those changes that the Treasurer shall approve, such approval to be conclusively evidenced by the execution and delivery thereof.

    Section 7 Subject to the conditions in Section 2 hereof, the President, any Vice President or the Treasurer, or any of them, is hereby authorized to execute and deliver the form of any Construction and Rebate Agreement, Continuing Disclosure Undertaking or Supplement to the Continuing Disclosure Undertaking or Escrow Deposit Agreement, in substantially the form approved by the Committee for each series, with those changes that the Treasurer shall approve, such approval to be conclusively evidenced by the execution and delivery thereof.

    Section 8 Subject to the conditions in Section 2 hereof, the Treasurer is hereby authorized to prepare forms of the Financings as approved by the Committee and to cause the same to be executed by the proper officers of the Corporation as provided in the Indentures. Upon execution of the Financings, the Treasurer shall deliver such bonds or notes as are appropriate to the type of transaction to the purchasers thereof upon payment of the purchase price, which price shall reflect the Underwriters’ discount of not more than 0.7% (70 basis points), and an original issue discount or premium, if any, as permitted by law.

    Section 9 Subject to the conditions in Section 2 hereof, the President, Vice President, Secretary, Assistant Secretary and Treasurer are hereby authorized and directed to perform any and all further acts, to execute any and all further documents or certificates and to publish any notice required to implement the Plans of Finance for each series and to complete the execution and delivery of the Financings in one or more series, and, the execution and delivery for each series, as applicable, of (a) an Indenture and/or Supplemental Indenture; (b) Bond Purchase Agreement; (c) any Remarketing Agreement; (d) any Arbitrage and Federal Tax Certificate; (e) any Credit Agreement, Reimbursement Agreement, Standby Purchase Agreement, Liquidity Agreement or similar Credit Facility Agreement; (f) any Escrow Deposit Agreement; (g) any Construction and Rebate Agreement; (h) any Derivative/Swap Agreement; (i) any Issuing and Paying Agency Agreement; (j) any Dealer Agreement; (k) forms of Commercial Paper and any master note therefore (including any riders or addendum thereto), all in substantially the form approved by the Committee, with those changes that the officers so executing shall approve, such approval to be conclusively evidenced by the execution and delivery thereof; and any other documents required to issue Financings related to other matters referred to therein, including amendments or supplements to any previous or existing agreements to such effect. With respect to any series of Commercial Paper, the Treasurer is authorized to cause the forms of Commercial Paper and any related master note to be executed by the proper officers of the Corporation as provided in any Issuing and Paying Agency Agreement. Upon execution of the Commercial Paper the Treasurer is authorized and directed to take all steps necessary to deliver the Commercial Paper to the purchasers thereof upon payment of the purchase price, which price shall be the face amount of the Commercial Paper.

    Section 10 The Board authorizes and directs the Treasurer, on behalf of and in the name of the Corporation, to request and obtain all necessary approvals of the Governor of the State of Indiana, the Budget Director of the State of Indiana, the Indiana State Budget Committee, the Indiana State Budget Agency, the Indiana Finance Authority, and the Indiana Commission for Higher Education, and any other governmental approvals necessary to implement the Plans of Finance and for the issuance of the Financings.

    Section 11 The Treasurer is further authorized to make recommendations as part of the Plans of Finance regarding the disposition of the Prior TECP, including but not limited to (a) refunding the Prior TECP within a new series of Commercial Paper or (b) leaving the Prior TECP outstanding pending the issuance of permanent financing for the appropriate project.

    Section 12 The Board authorizes and directs the Treasurer to recommend (a) one or more investment banking firms to the Committee for appointment as underwriters or Dealer, as appropriate to the type of transaction, (b) with respect to bonds, a trustee bank or banks, (c) with respect to variable rate bonds and Commercial Paper, any liquidity facility and/or credit enhancement provider as deemed necessary, and any issuing and paying agent, and (d) with respect to any and all transactions, such other professionals as are necessary or appropriate to assist the Corporation in carrying out the Plans of Finance. The Treasurer is further authorized, to continue such existing relationships service providers as noted above, if appropriate, without the need for further competitive bids or proposals, all as part of the recommended Plans of Finance.

    Section 13 Nothing in this Resolution shall be construed as superseding the authority of the Corporation to finance any or all of the New Projects through the issuance of commercial paper, as authorized by the resolutions of this Board dated April 6, 2007, which resolutions remain in full force and effect.

    EXHIBIT A

    21-34-6 Projects
    Authorized
    Amount

    General
    Assembly
    Approval
    Bloomington Campus – Cyber Infrastructure Facility –Data Center
    $18,300,000
    2007
    Bloomington Campus – Central Heating Plant Phase I
    $45,000,000
    2005
    Bloomington Campus – Multi-Disciplinary Science Building Phase II
    $31,872,000
    2003
    Bloomington Campus – Classrooms Associated w/ Graduate School of Business
    $10,500,000
    2001
    Fort Wayne Campus – IPFW Medical Education Center
    $14,000,000
    2003
    Indianapolis – Neurosciences Research Building
    $20,000,000
    2007
    Indianapolis Campus – Campus Center
    $40,000,000
    2003
    South Bend – Education & Arts Building Renovation
    $27,000,000
    2007
    South Bend Campus – Land Acquisition
    $2,000,000
    2003
    Southeast Campus – Medical Center A&E
    $1,000,000
    2007
    21-35-3 Projects



    Bloomington Campus – Henderson-Atwater Garage
    $10,946,000
    Not Required
    Bloomington Campus – New Athletic Facilities
    $45,000,000
    2007
    Indianapolis Campus – Research Institute III
    $25,000,000
    Not Required
    Indianapolis Campus – University Place Hotel
    $31,000,000
    2005
    Indianapolis Campus – Integrated Transit Study
    $200,000
    2005
    South Bend Campus – Student Housing
    $17,166,110
    Not Required
    Southeast Campus – Student Housing
    $20,100,000
    Not Required

    Note Bonds previously issued pursuant to the authorizations noted above include $27,000,000 for the Bloomington Campus - Central Heating Plant Phase I and $15,000,000 for the Indianapolis Campus – Campus Center.

    Unanimously approved on a motion duly made and seconded

  5. Action Item: Approval is requested for a resolution of the board supplementing prior swap resolutions.

    Resolution Of The Board Of Trustees Of The Trustees Of Indiana University Supplementing Prior Resolutions Of The Board Of Trustees Of The Trustees Of Indiana University Authorizing The Treasurer To Take Certain Actions Regarding Entry Into One Or More Master Swap Agreements To Manage Interest Rate Risk

    WHEREAS, Indiana Code 21-29-1-3 and 21-29-3, authorizes the Trustees of Indiana University, a body politic organized and existing under the laws of the State of Indiana (the “Corporation”) to enter into swap agreements (defined to include an agreement that is a rate swap agreement, basis swap, forward rate agreement, interest rate option, rate cap agreement, rate floor agreement, rate collar agreement, or any other similar agreement) (the “Swap Agreements”) for the purpose of managing an interest rate or similar risk that arises in connection with or incidental to the issuance, carrying or securing of obligations, including advance transactions; and

    WHEREAS, by resolution adopted on December 9, 2005 and June 27, 2006 (the “Prior Resolutions”), the Board of Trustees of the University (the “Board”) authorized the Treasurer of the University (“Treasurer”) to investigate, develop and evaluate a proposed plan of financing involving the incorporation of one or more Swap Agreements to manage interest rate risks in connection with the issuance, carrying or securing of debt for the financing of projects on various campuses of the University, and to negotiate and execute various master International Swaps and Derivatives Association, Inc (“ISDA”) agreements with one or more dealers; and

    WHEREAS, the Prior Resolutions also delegated to the Finance and Audit Committee of the Board (the “Committee”) the power to approve any recommendation made by the Treasurer in that regard and to authorize the execution and delivery of Swap Agreements in connection with specific debt instruments for the Projects, and to make the designation of bonds as being subject to a Swap Agreement;

    NOW, THEREFORE, BE IT RESOLVED by the Board as follows:

    Section 1 Exhibit A to the Prior Resolutions is hereby amended and supplemented to include those financing projects on various campuses of the University as described in Exhibit A hereto.

    Section 2 The Committee is hereby delegated the authority to designate any previously existing and outstanding bonds or notes of the Corporation as being subject to Swap Agreements for purposes of managing interest rate risk, on the recommendation of the Treasurer.

    Section 3 The Committee is hereby delegated the authority to consider and approve any swap policies recommended by the Treasurer.

    Section 4 The Prior Resolutions are hereby ratified and affirmed and shall remain in full force and effect.

    EXHIBIT A

    PROJECT
    AMOUNT
    GENERAL ASSEMBLY APPROVAL
    Bloomington Campus – Henderson-Atwater Parking Garage
    $10,946,000
    Not Required
    Bloomington Campus – Cyber Infrastructure Facility –Data Center
    $18,300,000
    2007 General Assembly
    Bloomington Campus – New Athletic Facilities
    $45,000,000
    2007 General Assembly
    Bloomington Campus – Central Heating Plant Phase I
    $45,000,000
    2005 General Assembly
    Bloomington Campus – Multi-Disciplinary Science Building Phase II
    $31,872,000
    2003 General Assembly
    Bloomington Campus – Classrooms Associated w/ Graduate School of Business
    $10,500,000
    2001 General Assembly
    Fort Wayne Campus – IPFW Medical Education Center
    $14,000,000
    2003 General Assembly
    Indianapolis Campus – Research Institute III
    $25,000,000
    Not Required
    Indianapolis – Neurosciences Research Building
    $20,000,000
    2007 General Assembly
    Indianapolis Campus – University Place Hotel
    $31,000,000
    2005 General Assembly
    Indianapolis Campus – Integrated Transit Study
    $200,000
    2005 General Assembly
    Indianapolis Campus – Campus Center
    $40,000,000
    2003 General Assembly
    Kokomo Campus – Qualified Energy Savings Project
    $1,659,000
    Not Required
    South Bend Campus – Student Housing
    $17,166,110
    Not Required
    South Bend Campus – Education &Arts Building Renovation
    $27,000,000
    2007 General Assembly
    South Bend Campus – Land Acquisition
    $2,000,000
    2003 General Assembly
    Southeast Campus – Student Housing
    $20,100,000
    Not Required
    Southeast Campus – Qualified Energy Savings Project
    $1,902,086
    Not Required
    Southeast Campus – Medical Center A&E
    $1,000,000
    2007 General Assembly

    Unanimously approved on a motion duly made and seconded

C. Academic Affairs Committee

  1. Report from Trustee Sue Talbot

    Trustee Talbot reported that the committee convened with A.D. King and Bill Cast in attendance, in addition to herself. They began by reviewing the mission statement and goals for the coming year.

    She said the committee first heard a report from Roger Thompson, Vice Provost of Enrollment Management. She distributed copies of Mr. Thompson’s handouts and reviewed some of the characteristics of this year’s student body at IU Bloomington. This freshmen class has higher grade point averages and SAT scores than last year’s class, and is also the most diverse class, with 18% being non-white and other. This freshman class experienced the most competitive admission process in the history of IU with seven out of 10 being accepted. Indiana residents who were not accepted at Bloomington were encouraged to apply at another IU campus. While non-residents comprised 41% of the entering class, Indiana residents comprised 77% of the entire entering class for Indiana University on all eight campuses. More than 700 resident students enrolled at IU Bloomington are not funded by the state of Indiana based on enrollment caps set by the state. The additional out-of-state students who enrolled this year helped to fund the cost of education for more Indiana residents, needless to say.

    She said two new financial aid programs designed exclusively for Indiana residents were implemented with this entering class of 2007. The 21st Century Scholar Covenant, designed to meet the full cost of attendance of low income Indiana residents and the Pell Promise Program, designed to meet the cost of tuition for low middle income Indiana residents. A new approach to scholarships will be introduced this year for the entering class of 2008. The IU Excellence Award and others will provide a significant increase in funding to Indiana residents with strong academic backgrounds.

    She also said committee members reviewed the first guidebooks targeting African/American and Hispanic students, and one on financial aid, along with a recruiting DVD that is being sent to all high school students from the time they are 15 years old.

D. External Relations Committee

  1. Report from Trustee Shoulders

    Trustee Shoulders said the committee first heard a report by Vice President Mike Sample, who outlined the new structure and organization within his renamed portfolio, PAGR -- Public Affairs in Government Relations.

    The committee also discussed PAGR’s engagement with research and other initiatives taking place throughout the university, and what it will take to communicate new developments and progress to IU’s public constituencies.

E. Report from Student Trustee

  1. Report from Trustee A.D. King

    Trustee King reported that AUSA, the All University Student Association, would hold its first videoconference meeting later in the day. The goal is to increase participation and save money. The group intended to elect officers, schedule future meetings and elect officers.

III. PERSONNEL ACTIONS

INDIANA UNIVERSITY - President Michael A. McRobbie

IUB – Provost and Executive Vice President Karen Hanson

IUPUI - Chancellor Charles R. Bantz

IUE – Interim Chancellor Nasser Paydar

IUK – Chancellor Ruth J. Person

IPFW - Chancellor Michael A. Wartell

IUN - Chancellor Bruce Bergland

IUSB - Chancellor Una Mae Reck

IUS – Chancellor Sandra Patterson-Randles

Unanimously approved on a motion duly made and seconded

IV. Approval of Conflict-of-Interest Statements

Unanimously approved on motions duly made and seconded, with each trustee abstaining from the vote on his or her statement.

V. Award of Degrees

Action Item: Approval is requested for award of degrees as of August 31.

Unanimously approved on a motion duly made and seconded

VI. Old Business

Trustee Reilly said he wished to be given a broader understanding of the neurosciences at IU, noting that the field is becoming a strategic core center of excellence, and that key facilities and faculties are being created at IU Bloomington and IUPUI. He cited a number of perspectives, including the clinical, facilities and research (basic and applied) perspectives. President McRobbie said he would arrange an integrated presentation to be made.

VII. New Business

VII. Next Meeting

December 6-7, 2007
Indiana University-Purdue University Indianapolis

IX. Adjournment

Robin Roy Gress
THE TRUSTEES OF INDIANA UNIVERSITY

ADMINISTRATIVE ACTION REPORT
September 5, 2007

I. GENERAL MATTERS

• Centers and Institutes

The following items have been approved:

II. FINANCIAL MATTERS

• Special Purchases

The following purchases are listed in compliance with policies approved by the Board of Trustees which require reporting of transactions of $25,000 or more, if only one price is received, or if the lowest price offer is not acceptable. Documentation is on file with purchase records

• Write-Offs of Accounts Receivable

No items

III. CONSTRUCTION MATTERS

• Approved Change Orders

• Bid Tabulations

• Construction Contract Awards

• Requests For Additional Construction Work

No items

IV. REAL ESTATE MATTERS

No items

V. PERSONNEL MATTERS