Mr. Cedric Crear, Vice Chair Mr. Mark Alden Mr. Ron Knecht Mr. James Dean Leavitt Dr. Jack Lund Schofield. Dr. Jason Geddes

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1 Minutes are intended to note (a) the date, time and place of the meeting; (b) those members of the public body who were present and those who were absent; and (c) the substance of all matters proposed, discussed and/or action was taken on. Minutes are not intended to be a verbatim report of a meeting. An audiotape recording of the meeting is available for inspection by any member of the public interested in a verbatim report of the meeting. These minutes are not final until approved by the Board of Regents at the March 2012 meeting. BOARD OF REGENTS* and its INVESTMENT AND FACILITIES COMMITTEE NEVADA SYSTEM OF HIGHER EDUCATION UNLV Student Union, Ballroom A University of Nevada, Las Vegas 4505 S. Maryland Parkway, Las Vegas, December 1, 2011 Members Present: Other Regents Present: Others Present: Mr. Michael B. Wixom, Chair Mr. Cedric Crear, Vice Chair Mr. Mark Alden Mr. Ron Knecht Mr. James Dean Leavitt Dr. Jack Lund Schofield Mr. Robert J. Blakely Dr. Jason Geddes Mr. Mark Stevens, Vice Chancellor, Finance Mr. Hank Stone, System Counsel and Director of Real Estate Planning Dr. Marcia Turner, Vice Chancellor, HSS Dr. Tom Schwenk, Dean, UNSOM and Vice President, Division of Health Sciences, UNR Ms. Holly Balmer, NSHE Mr. Larry Eardley, NSHE Mr. Vic Redding, NSHE Dr. Michael D. Richards, President, CSN Dr. Maria Sheehan, President, TMCC Dr. Marc Johnson, President, UNR Ms. Mary Kaye Bailey, CSN Ms. Patricia Charlton, CSN Mr. John Albrecht, DRI & TMCC Mr. Greg Bortolin, DRI Mr. John Gardner, DRI Ms. Kelly Frank, DRI Ms. Ellie Oppenheim, DRI Dr. Peter Ross, DRI Mr. Stephen Salabar, DRI Ms. Sonja Sibert, GBC (INVESTMENT AND FACILITIES COMMITTEE 03/01/12) Ref. IF-2, Page 1 of 13

2 Investment and Facilities Committee Minutes Page 2 Others Present: (continued) Mr. Sean Bentley McDonald, NSC-NSSA Mr. Kyle Dalpe, TMCC Mr. Dave Roberts, TMCC Mr. Craig Scott, TMCC Ms. Rachel Solemsaas, TMCC Ms. Cherie Garrity, UNLV Mr. Gerry Bomotti, UNLV Ms. Denise Baclawski, UNR Mr. Robert Dickens, UNR Mr. Tom Judy, UNR Mr. Ron Zurek, UNR Ms. Jean Regan, UNSOM Mr. Dan Neverett, WNC Mr. David Breiner, Cambridge Associates Ms. Wendy Walker, Cambridge Associates Mr. Jeff Long, Commonfund Mr. David Main, Commonfund Mr. Luke A. Busby, Red Mountain Wind Mr. Rich Hamilton, Red Mountain Wind Mr. Vaughn Johnson, Red Mountain Wind Mr. Brian Brannman, UMC Mr. Brendan Bussmann, UMC Chair Wixom called the meeting to order at 3:54 p.m. with all members present except Regents Alden and Schofield. 1. Public Comment Regent Crear noted that this was the first meeting since Cambridge Associates was re-hired. He hoped they will take a proactive approach with the NSHE account and give back to the Las Vegas community. 2. Approved-Minutes The Committee recommended approval of the minutes from the September 8, 2011, and the September 22, 2011, meetings (Refs. IF-2a & IF-2b on file in the Board office). Regent Leavitt moved approval of the minutes from the September 8, 2011, and the September 22, 2011, meetings. Regent Knecht seconded. Motion carried. Regents Alden and Schofield were absent. (INVESTMENT AND FACILITIES COMMITTEE 03/01/12) Ref. IF-2, Page 2 of 13

3 Investment and Facilities Committee Minutes Page 3 3. Approved-Asset Allocation and Investment Returns The Committee recommended approval of the reallocation of the operating pool s cash assets based on the recommendations from Cambridge Associates. One-third of the existing overweight in cash assets in the operating pool is recommended to be reinvested to non-u.s. equities. Mr. David Breiner, Cambridge Associates, presented the performance on asset allocation for both pools for the quarter ended September 30, Mr. Breiner said that page 1 of the report (on file in the Board office) indicated performance for the endowment through the end of the quarter for September 30, 2011, was negative 9.9%, bringing calendar year returns to negative 5.9%. Those results were slightly behind the primary policy benchmark. The reason for this was manager underperformance, particularly in the case of the long-term bond manager, PIMCO. Results in the endowment were in line with peers of a similar size. Mr. Breiner referred to the operating fund on page 2 which was down 4.6% in the third quarter and down for the calendar year 2.3%. Those returns were better than the policy benchmarks. Mr. Breiner continued that the asset allocation for the endowment is currently underweight to public equities, particularly U.S. Equities, which is intentional because there is an overweight to private equity. To keep overall equity risk in check, Cambridge is comfortable with that position with no recommended changes. There is a very large overweight to cash in the operating fund. At the appropriate time, after staff evaluates NSHE s cash needs, Cambridge would be in favor of deploying a portion of the cash toward Global ex-u.s. or International Equities, which are 9 percentage points underweight as of the end of the November Cambridge would be in favor of slowly scaling in and reducing that underweight by specifically redirecting approximately one-third of the surplus cash within the January 2012 time frame for execution. Regents Alden and Schofield entered the meeting. Regent Knecht asked if there would be a geographic distribution of non-domestic equities in the operating fund and requested a review of where they are concentrated. Mr. Breiner pointed out that the managers are better positioned and usually delegate the determination of the over- and underweight geographically. Mr. Breiner will locate the information. Regent Knecht would be interested in hearing about developing countries or equities. Mr. Breiner said that Cambridge s view is that they find valuations with development outside the U.S. to be relatively more attractive than inside the U.S., with the caveat that there are huge problems in Europe which is one of the reasons Cambridge is in favor of letting managers make the careful assessment of where to be within those markets. (INVESTMENT AND FACILITIES COMMITTEE 03/01/12) Ref. IF-2, Page 3 of 13

4 Investment and Facilities Committee Minutes Page 4 3. Approved-Asset Allocation and Investment Returns (continued) Regent Knecht felt the other aspect was the currency uncertainties and liquidity issues. Mr. Breiner said the action would be to determine first what the surplus cash available for investment will be after the year end analysis by staff is completed and then to deploy up to one-third of that within the month of January 2012 into International Equities. Regent Leavitt moved approval of the reallocation of the operating pool s cash assets based on the recommendations from Cambridge Associates. One-third of the existing overweight in cash assets in the operating pool is recommended to be reinvested to non-u.s. equities. Regent Crear seconded. Motion carried. Mr. Breiner continued that Cambridge would like to come forward at the March 2012 meeting with a recommendation to invest in new Natural Resource Private Equity fund, specifically the Commonfund Natural Resource IX, subject to the due diligence completion. This is a natural resource oriented, private equity, fund-of-funds product. Regent Alden asked if Cambridge would submit two or three recommendations for investment alternatives. Mr. Breiner clarified that Cambridge never has business relationships with any managers. Mr. Breiner stated that the fund availability of this asset class is not the same as the other asset classes. However, there is a potential second manager option that may be possible to bring to the Committee at that time. Mr. Breiner explained that there is an investment planning review discussion for the endowment, which is to take a comprehensive look at the purpose of the fund, the asset allocation and the context of the spending policy. This would require a few hours and a dedicated meeting. Chair Wixom said this was in response to a request for an overall policy review. Regent Knecht welcomed the initiative and would like to have a dedicated meeting which may require subsequent followup meetings. Chair Wixom requested that Mr. Mark Stevens, Vice Chancellor, Finance, coordinate with Cambridge to establish a date and to make the entire Board aware of the meeting. Chair Wixom asked that focused, written materials be provided 10 days in advance of the meeting in order to prepare for the process. Mr. Breiner, referring to the operating fund reserve account, advised the Committee that it is very possible for the reserve account to go into negative territory. It is an unavoidable risk given that there are 40% equities in the target. (INVESTMENT AND FACILITIES COMMITTEE 03/01/12) Ref. IF-2, Page 4 of 13

5 Investment and Facilities Committee Minutes Page 5 3. Approved-Asset Allocation and Investment Returns (continued) Chair Wixom pointed out that NSHE went into hedge funds as an effort to reduce volatility. When the decision was made to move out of hedge funds it was understood that the operating pool would be more volatile. 4. Information Only-Operating Pool Reserve Update Vice Chancellor Stevens reported the activities and the most current balance of the reserve account of the operating pool fund. Vice Chancellor Stevens reported that the balance of the operating pool reserve account as of November 30, 2011, was a positive $15.5 million, up from $3.2 million from the prior week. 5. Approved-Commonfund Emerging Markets Portfolio Update (Agenda Item #6) The Committee recommended approval to terminate the Commonfund Emerging Markets portfolio within the endowment pool, and approval to reinvest two-thirds of the proceeds to the Capital International Emerging Markets Growth Fund and one-third of the proceeds to the Dimensional Fund Advisors Emerging Markets Value Fund. Mr. Jeff Long, Commonfund, presented a PowerPoint report (on file in the Board office) that outlined the Emerging Markets Fund (EMF). He explained that the managers of the portfolio HEXAM Capital Partners, LLP, F&C Management Limited, Global Situational Investors and Neon Liberty Capital Management were put together to complement each other with a diverse range. Mr. Long continued with the report which included: structure, portfolio construction, objective and strategy, market volatility, manager correlation, performance attribution, and country weightings. Mr. Long stated that Commonfund was disappointed with the performance of the portfolio. He and his team are spending a lot of time on it with confidence that they will get it right and have a good portfolio going forward. Regent Knecht asked about the fee for the core manager in the index fund. Mr. Long said it is still being negotiated, but should be approximately 15 basis points. Mr. Breiner said that Ms. Wendy Walker, Cambridge Associates, would explain the recommendation for an alternate approach to the emerging markets mandate. Ms. Walker suggested that the Committee terminate the Commonfund Fund-of- Funds structure. There has been an underperformance of the Commonfund EMF over a rolling three- and five-year basis as demonstrated in the graph on page 20 of the Cambridge report. Page 19 showed a graph of the active managers that have been recommended consisting of an active investment blend of two-thirds to Capital International Emerging Markets Growth Fund and one-third to Dimensional Fund Advisors (DFA) Emerging Markets Value Fund. (INVESTMENT AND FACILITIES COMMITTEE 03/01/12) Ref. IF-2, Page 5 of 13

6 Investment and Facilities Committee Minutes Page 6 5. Approved-Commonfund Emerging Markets Portfolio Update (Agenda Item #6) (continued) Ms. Walker noted that pages 12 and 13 set forth each manager s differentiated strategy, their consistent process and long-term performance track records. She added that the fees are low at 68 and 60 basis points, respectively. Ms. Walker said that page 17 showed that DFA had higher volatility over a 6-1/2 year period than Capital. Blending these two with the two-thirds, one-third structure, they balance out to have higher return and slightly higher volatility than the emerging markets index. Page 18 indicated that these two together, as an active blend, outperform the MSCI emerging markets index with a slight amount of extra standard deviation of those returns. She felt the two active managers have the consistent processes and the stable organizations to support their potential for long-term outperformance of an index approach. Ms. Walker noted that there is a correction on the bottom line of page 17 where the Manager Median/Emerging Markets Equity Median should be: return 9.5; deviation 30.2; and Sharpe ratio Accordingly, in the graph above, rather than being in the upper left quadrant, Emerging Markets Equity Median would be in the lower right quadrant. Commonfund was inadvertently left off of the chart, which would be in the lower left quadrant with the coordinates at 7.1 below the lower edge of the graph. The x-axis at the bottom would be at Chair Wixom clarified that the recommendation is to terminate the Commonfund Emerging Market portfolio and reinvest them - two-thirds to Capital International and one-third to DFA. Regent Knecht was curious about the two-thirds, one-third split. Ms. Walker said that given the System s risk return profile, Cambridge would not want to recommend a very large percentage to DFA given the fact that they are more volatile. Capital International tends to be closer to the benchmark both in performance and standard deviation. Cambridge is more comfortable with the variation. Regent Alden moved approval to terminate the Commonfund Emerging Markets portfolio within the endowment pool, and approval to reinvest two-thirds of the proceeds to the Capital International Emerging Markets Growth Fund and onethird of the proceeds to the Dimensional Fund Advisors Emerging Markets Value Fund. Regent Crear seconded. Motion carried. (INVESTMENT AND FACILITIES COMMITTEE 03/01/12) Ref. IF-2, Page 6 of 13

7 Investment and Facilities Committee Minutes Page 7 6. Approved-Commonfund International Equity and Real Return Portfolios (Agenda Item #7) The Committee recommended approval to terminate the Commonfund International Equity portfolio within the operating and endowment pools and approval to reinvest these funds based on the recommendation provided by Cambridge Associates. One-half of the proceeds from both pools will be invested in MFS International Equity Strategy and one-half of the proceeds to the Manning & Napier Advisors Core non-u.s. equity portfolio (Ref. IF-7 on file in the Board office). Vice Chancellor Stevens said a presentation by Commonfund was made in June They had been asked to update that information along with the reference material. He thought that Cambridge had recommendations and alternatives for investment if either of the accounts is liquidated with Commonfund. Mr. Breiner said the recommendation is to take a different approach with respect to the International Equity mandates. The Commonfund International Equity product is in both pools. As of September 30, 2011, there is $17.4 million in the endowment fund and $44.0 million in operating. Mr. Breiner recommended moving to an active approach with respect to moving away from Commonfund International and repositioning to a combination of two active managers, MFS International Equity and Manning & Napier. This 50%-50% combination recommendation applies to both the endowment and operating funds and is outlined on page 29. Regent Leavitt moved approval to terminate the Commonfund International Equity portfolio within the operating and endowment pools and approval to reinvest these funds based on the recommendation provided by Cambridge Associates. Onehalf of the proceeds from both pools will be invested in MFS International Equity Strategy and one-half of the proceeds to the Manning & Napier Advisors Core non-u.s. equity portfolio. Regent Crear seconded. Regent Knecht expressed concern about the 67 basis points. Chair Wixom felt that part of the 67 basis points was made up in the performance differential. Mr. Breiner said the performance numbers were net of fees. It does take account of the head-wind which is considerable at 67 basis points going against the active managers. That fee differential has been overcome nearly four-fold over ten years. Cambridge felt that the rationale to go active has as much to do with the risk side as the return side, and it is worth paying the higher fee to better the odds of being kept out of trouble and the Index does not do that, nor is it necessarily a safe place to be. Motion carried. (INVESTMENT AND FACILITIES COMMITTEE 03/01/12) Ref. IF-2, Page 7 of 13

8 Investment and Facilities Committee Minutes Page 8 6. Approved-Commonfund International Equity and Real Return Portfolios (Agenda Item #7) (continued) Mr. Breiner added that there are no changes to recommend for the Commonfund Real Return fund, which is a TIPS or inflation protected fund. 7. Approved-Health Sciences Facilities Planning (Agenda Item #8) The Committee recommended approval to support efforts to develop a University of Nevada School of Medicine (UNSOM) building at the University Medical Center (UMC) and efforts to conduct a programmatic plan to identify how NSHE health sciences programs may participate in development of the Academic Health Center with UMC (Refs. IF-8a & IF-8b on file in the Board office). Dr. Marcia Turner, Vice Chancellor, Health Sciences System, stated that there have been discussions regarding buying or building a facility in the Shadow Lane area in Las Vegas. Since that time, Mr. Brian Brannman, CEO, UMC, suggested that a facility be built on UMC property. Vice Chancellor Turner asked the Committee to consider that UNSOM initiate work with UMC for the potential of developing a building for UNSOM at UMC. Vice Chancellor Turner requested further consideration of the Committee for Health Sciences System staff to initiate a programmatic planning effort to identify how other NSHE health sciences programs can partner with UMC in the development of an Academic Health Center. This would be accomplished with the help of FTI Consulting who would look at nursing, public health and dental and work with UMC to see what their needs are for partnering. Vice Chancellor Turner said that existing funds of $25,000 would be provided from the Lincy Foundation to pay for FTI s involvement. Dr. Tom Schwenk, Dean, UNSOM, and Vice President, Division of Health Sciences, UNR, felt the offer from UMC had promising, exciting potential. While there is a distance to go to make this a reality, including programmatically and the funding plan, it is important to take advantage of UMC s offer. A co-existence of programs and geographic proximity to UMC is huge for UNSOM and to have a location in Las Vegas. Dean Schwenk felt that all of the opportunities on the Shadow Lane campus have yet to be realized. Right now clinical, clinical research and administrative space would create a substantial presence in the Las Vegas area at UMC which again, is dependent on fund raising. Regent Alden noted that this would allow space for the residents. Dean Schwenk agreed that it would boost activity. Regent Crear felt there was a strong possibility of creating a health core between UNSOM and UMC and thanked Mr. Brian Brannman, CEO, UMC, for the opportunity. Chair Wixom thought it was a very positive process. (INVESTMENT AND FACILITIES COMMITTEE 03/01/12) Ref. IF-2, Page 8 of 13

9 Investment and Facilities Committee Minutes Page 9 7. Approved-Health Sciences Facilities Planning (Agenda Item #8) (continued) Regent Crear recommended approval to support efforts to develop a UNSOM building at UMC and efforts to conduct a programmatic plan to identify how NSHE health sciences programs may participate in the development of the Academic Health Center with UMC. Regent Knecht seconded. Motion carried. Chair Wixom asked for an update at the next Investment and Facilities Committee meeting. 8. Approved-Power Purchase Agreement DRI/TMCC (Agenda Item #9) The Committee recommended approval of the Power Purchase Agreement with Red Mountain Wind, and underground easements to provide wind generated electricity to Desert Research Institute and Truckee Meadows Community College (Ref. IF-9 on file in the Board office). Regent Alden moved approval of the Power Purchase Agreement with Red Mountain Wind, and underground easements to provide wind generated electricity to Desert Research Institute and Truckee Meadows Community College. Regent Crear seconded. Dr. Maria Sheehan, President TMCC, is excited about the Power Purchase Agreement because it is in keeping with TMCC s commitment to reduce green house gas emissions. She noted that there have been countless hours analyzing the benefit to both TMCC and DRI. Regent Knecht disclosed that he is the Senior Economist at the Public Utilities Commission which regulates the MVE, which is the current supplier, and he may also have various review roles on other alternative sources. He does not believe it presents any conflict of interest in his judgment here, personally, or reflects how he does his job for the Public Utilities Commission. Ms. Ellie Oppenheim, Interim Senior Vice President for Finance and Administration, DRI, offered a review of the project with a PowerPoint presentation (on file in the Board office). She explained that a proposal was initiated by Clean Energy to implement the first utility scale wind energy project in Nevada by placing two turbines at Dandini Research Park. Red Mountain Wind was the sole bidder to the RFP that was distributed. They have agreed to fully fund the capital costs of purchasing, installing and maintaining the wind turbines. (INVESTMENT AND FACILITIES COMMITTEE 03/01/12) Ref. IF-2, Page 9 of 13

10 Investment and Facilities Committee Minutes Page Approved-Power Purchase Agreement DRI/TMCC (Agenda Item #9) (continued) Ms. Oppenheim stated that DRI and TMCC will buy power for 25 years according to the Power Purchase Agreements. Ms. Oppenheim said that Red Mountain Wind will lease the property from the Dandini Research Park. The turbines are expected to provide approximately 20% of the total campus power needs for each of the DRI and TMCC campuses. NV Energy will continue to provide the majority of power to both institutions. DRI and TMCC each estimate that an approximate $25,000 savings may have been realized if the wind turbines had been in place for the year Chair Wixom asked if the decommissioning issue was resolved. Ms. Oppenheim said the issue was resolved. The decommissioning fund of $100,000 plus the salvage value of the equipment is anticipated to fully cover any needs required. Regent Knecht noted that there is a bond provision and asked how Red Mountain Wind would be relieved of that provision. Ms. Oppenheim said Red Mountain Wind must make contributions annually into a decommissioning fund for 10 years of the agreement until it is fully funded and a bond is in place. Regent Knecht asked the cost per kilowatt hour NV Energy is charging DRI and TMCC under the current contracts. Ms. Oppenheim said the rates range from $.07 to $.12 per kilowatt hour. Regent Knecht asked about the weighted average for the power being displaced. Dr. Peter Ross, Director of Campus Planning and Facilities Management, DRI, said DRI is currently paying under PMC approved general commercial tariff. The rate varies with time of day and season to season. Regent Knecht noted that the graph did not indicate the crossover point, assuming it has a crossover point. The numbers are nominal, not discounted and if a 10% discount rate were applied, it would overwhelmingly favor the contract. Chair Wixom stated that there was a question about a legal description and asked for that to be clarified. Mr. Henry Stone, System Counsel, said he was advised by Red Mountain Wind counsel that there is a possibility that the legal description in the two Power Purchase Agreements were reversed. Red Mountain Wind will have their surveyor re-do the analysis of the data to make sure that if the legal descriptions have to be reversed, it will be accurate when signed by the Chancellor. Chair Wixom clarified that if this item is approved it would be with that qualification. Chair Wixom expressed concern about the financing being in place at the onset of the project. Mr. Luke Busby, Attorney, Red Mountain Wind, stated that it is mandatory to have a construction disbursement account fully funded before work begins on the project. Mr. Busby said that they will seek equity partners who can benefit from the accelerated depreciation, which is advantageous for an equity partner. The remainder of the project is planned to be funded through debt. (INVESTMENT AND FACILITIES COMMITTEE 03/01/12) Ref. IF-2, Page 10 of 13

11 Investment and Facilities Committee Minutes Page Approved-Power Purchase Agreement DRI/TMCC (Agenda Item #9) (continued) Chair Wixom asked about the breakdown of equity, debt and the construction costs. Mr. Rich Hamilton, President, Red Mountain Wind, was uncomfortable talking about Red Mountain s performance but noted that very recently Red Mountain Wind received an offer for long term debt, as well as construction debt. Additionally, interest has been shown in the equity, which would be a very small amount to have a good return within the realm of approximately $450,000 to $600,000. Mr. Hamilton indicated that the cost of construction depends on performance, steel costs, the value of the dollar and other factors which is estimated at just over $4.25 million. Regent Crear expressed confidence in the project. He was pleased that it is a local company employing Nevadans. Motion carried. 9. Information Only-Merchant Services Contract (Credit Card Processing) with Wells Fargo Bank (Agenda Item #10) Vice Chancellor Stevens updated the Committee on the merchant services contract (credit card processing) with Wells Fargo Bank. Vice Chancellor Stevens stated that the one year extension of the credit card processing contract with Wells Fargo Bank will be exercised this month with the option to extend for one year. It will be a one year extension going through calendar year The current contract covers a five-year period with two oneyear extensions and if it goes through December 31, 2012, the contract will be in effect for the seven years provided in the current contract. A competitive RFP process is planned for calendar year 2012 with an effective date of January 1, Due to the time needed for the transition, if a new vendor is recommended, the RFP process is scheduled to begin in the spring. 10. Information Only-Proposal Regarding Distributions from the Operating Pool and Operating Pool Reserve (Agenda Item #5) The Committee discussed the possibility of distributions from the operating pool being utilized to provide a source of funds for institutions to match grant and for contract activities. The Committee considered $7.0 million to be utilized to finance one-time activities in three areas: deferred campus maintenance, matching funds for research to promote external funds and matching funds for construction and/or remodeling of facilities to promote external funding. Regent Geddes explained that when distributions to the campuses had been suspended, and goals were adopted to increase research and grants by 10%, the dilemma became finding the matching funds to apply for grants. The intent was, when the distributions became available, the campuses could utilize the funds as a match for grants and, if there were no grants requiring the match, the distribution (INVESTMENT AND FACILITIES COMMITTEE 03/01/12) Ref. IF-2, Page 11 of 13

12 Investment and Facilities Committee Minutes Page Information Only-Proposal Regarding Distributions from the Operating Pool and Operating Pool Reserve (Agenda Item #5) (continued) could be used for other intentions. Regent Geddes noted that he discussed this possibility with the president of each institution, and none were in favor of this action. Chair Wixom asked for an explanation. Mr. Gerry Bomotti, Senior Vice President, Finance & Business, UNLV, stated that the university is not losing grants due to the lack of matching funds. The most important reason to leave the distributions as they are is that it is better to have a revenue stream that the campus can rely on. It allows priorities for those funds to be flexible and capable of being adjusted on a regular basis Regent Knecht asked if there was an event when matching funds were not available. Regent Geddes said there were five cases when campuses did not have the matching funds available to contribute to the grant application. Chair Wixom understood that the proposal was to earmark some of the monthly distributions from the operating pool for grants. Regent Geddes agreed that some funds should be earmarked, if only for cases where there is not enough money to match funds towards a grant in progress. Chair Wixom suggested making an on-going distribution quarterly from any excess funds. Regent Geddes did not want to make it that complicated for this Committee or the institutions. He suggested the institutions update the outgoing grants and that matching funds be reported to the Workforce, Research & Economic Development Committee to be sure that matches are being met. Chair Wixom suggested that the campuses report how this issue is dealt with to that committee in order to make informed decisions. Chair Wixom expressed concern about Regent Blakely s proposal to take $7.0 million from a fund that is so volatile right now. Chair Wixom does not want to take hasty action. He felt that more information from the campuses was necessary. Regent Leavitt would like to address both recommendations at the meeting in March Regent Blakely agreed to postpone any decision until that time. He indicated that the $7.0 million was suggested when there was adequate funding. 11. New Business None. 12. Public Comment None. (INVESTMENT AND FACILITIES COMMITTEE 03/01/12) Ref. IF-2, Page 12 of 13

13 Investment and Facilities Committee Minutes Page 13 The meeting adjourned at 5:58 p.m. Prepared by: Submitted for approval by: Nancy Stone Administrative Assistant IV Scott G. Wasserman Chief of Staff to the Board of Regents (INVESTMENT AND FACILITIES COMMITTEE 03/01/12) Ref. IF-2, Page 13 of 13