BOARD OF GOVERNORS MINUTES OF MAY 25, 2006 Page 1 of 9

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1 BOARD OF GOVERNORS MINUTES OF MAY 25, 2006 Page 1 of 9 UNIVERSITY OF GUELPH BOARD OF GOVERNORS MEETING Minutes of the 291st 9:30a.m. meeting held Thursday May 25, 2006 Boardroom 424, University Center, 4 th Floor, University of Guelph Board Members Alden Abram Lincoln Alexander. Chancellor Kathy Bardswick Brian Barrington Rita Burak.. Vice-Chair Douglas Derry, Chair Peter Devine Dick Freeborough Jonathan Guss Stew Hilts Andrea Lister Jeff Lozon Robin-Lee Norris Nancy Schmidt Pat Shewen Evan Siddall Alastair Summerlee, President Bill Teesdale Lyle Vanclief Others Present Betsy Allan, Secretary of the Board of Governors Sue Bennett, Special Project Manager Lori Bona Hunt, Associate Director, News Service Bob Carter, Executive Director, Physical Resources Mary Childs, Legal Councel Chuck Cunningham, Director, Communications & Public Affairs Martha Harley, Assistant Vice-President, Human Resources Pam Healey, Assistant Vice-President, Development Vicki Hodgkinson, Executive Assistant, President s Office Claude Macorin, Managing Director, Investments John Miles, Assistant Vice-President s, Finance and Services Sandra Nervo, Manager, Audit Services Alan Shepard, Associate Vice-President, Academic Joanne Shoveller, Vice-President, Alumni Affairs and Development Nancy Sullivan, Vice-President, Finance & Administration Brenda Whiteside, Associate Vice-President, Student Affairs Regrets Carolyn Clark Linda Mahood Kim Neale 1. WELCOME AND APPROVAL OF AGENDA RESOLVED, that the agenda be approved. 2. PRESENTATION: SHAKESPEARE - MADE IN CANADA Ms. Sue Bennett, Special Project Manager, presented an overview about the Shakespeare - Made in Canada initiative. Of special note was the May 25 th evening concert by faculty member and jazz singer Diane Nalini. 3. MINUTES OF APRIL 20, 2006 RESOLVED, that the open session minutes of the April 20, 2006 meeting be approved.

2 BOARD OF GOVERNORS MINUTES OF MAY 25, 2006 Page 2 of 9 a) Business Arising Business arising regarded tuition fees and was included under the Finance Committee Report. The Chair s correspondence to the University Centre Board is in progress. 4. PRESIDENT S REPORT a) Status Report on University Activities Dr. Summerlee noted the passing of Mr. Thomas McEwan, the first Chair of the Board of Governors, and, alumnus and renowned economist, Dr. John Kenneth Galbraith. He also informed Board members about the certification drive by the Faculty Association and the institutional challenge to develop a contract that will preserve the flexibility of an association with the bargaining privileges of a union. Activities of note around the campus included: Student Melanie Mullen won a National Engineering Memorial Scholarship; University s women s chamber choir placed third in the national finals; two Canada Research chairs have been appointed; the institution had nominees in every category of the Guelph s YM-YWCA Women of Distinction Awards; faculty member. Cecil Foster, has won the African-Canadian Achievement Award for contributions to arts and entertainment; international achievements and projects were noted. The President, with great pleasure shared the news that the student led Relay for Life and meal exchange program raised $57,000 and $140,000 respectively. As well, students won at the local new business competition level of Launchpad The President circulated a copy of a recent issue of the Canadian National Geographic magazine, which included an article about the living plant wall at the University of Guelph-Humber building. 5. AUDIT COMMITTEE REPORT a) Enterprise Risk Management Update The Audit Committee recently received a status report on the Enterprise Risk Management (ERM) initiative. The Board was informed that KPMG had been engaged to facilitate the process of identifying risks and opportunities and helping the Administration to rank the impact and articulate the appetite or tolerance for each. ERM supports the Integrated Planning process and will be integrated into institutional processes. Members discussed this initiative. The Committee Chair was pleased to see the University Administration embrace this important activity. It was confirmed that an ERM presentation will be made to the Board in spring DEVELOPMENT COMMITTEE REPORT a) Fundraising Update The fundraising accomplishments were reviewed, including: raising $15.5 million in fiscal 2005/2006, which surpassed the $14 million goal; the 2006/2007 objective to raise $17 million (a 20% increase from last year s goal). Dedicated fundraising projects include the Ontario Veterinary College, Arboretum and Science Complex. A University wide campaign will be planned over the next eighteen months and campaign details will be presented to the Board for consideration in December Members discussed the report with Ms. Shoveller.

3 BOARD OF GOVERNORS MINUTES OF MAY 25, 2006 Page 3 of 9 7. PENSIONS AND BENEFITS COMMITTEE REPORT a) Audited Pension Statements, September 30, 2005 The Audit Committee and Pensions and Benefits Committee reviewed and accepted the Audited Pension Statements from the year ended September 30, b) Statement of Investment Policies and Procedures The Investment Management Committee has reviewed and accepted the amendments to the Statement of Investment Policies and Procedures (SIPP). The Pensions and Benefits Committee deferred consideration of SIPP until a fall meeting to allow the members more time to review. c) Pension Investment Performance Report The investment performance through to December 30, 2005 for the University s pension plans was presented. Members discussed the report and especially the performance in relation to the manager s established benchmarks. It was requested that the report be amended and use net results net of investment management fees for comparisons to benchmark. d) Pension Legislation Advocacy Due to provincial pension legislation regarding funding requirements and the solvency valuation deficits in two of the three plans, it is projected that the University will be required to contribute between $25-40 million in each of the next three years. Universities and the Council of Ontario Universities have been actively lobbying the provincial government to consider either an exemption or an extended contribution period for Universities. It was confirmed that the pension plans are not in jeopardy and that this is an arbitrary requirement, mainly targeted for private sector plans which the provincial government has the ability to amend. Pension plan and Board Member were encourages to write to the government on behalf of the University. Templates of advocacy letters will be circulated to Board Members for their use. 8. PHYSICAL RESOURCES AND PROPERTY COMMITTEE REPORT a) Project Updates The projects in progress MacKinnon Classroom, MacKinnon Extension, Chemical Management Center, Enhanced Health Assessment Lab, Biodiversity Institute, Clinical Research II, Science Complex, Phase II were all confirmed to be on budget and on time. b) 10-year Deferred Maintenance and Utilities Capacity Plan The Physical Resources and Property Committee supported proceeding with the 10-year Deferred Maintenance and Utilities Capacity Plan, subject to the Finance Committee s consideration of the funding proposal. As a rolling plan, the 10-year Plan will be updated annually. Implementation of the Plan will enable the institution to address identified critical deferred maintenance items, but will not, as it were, improve the campus - the plan will merely hold steady the campus condition.

4 BOARD OF GOVERNORS MINUTES OF MAY 25, 2006 Page 4 of 9 RESOLVED, That the Board of Governors approve: a) the 10-year Deferred Maintenance and Utilities Capacity Plan in principle; and b) the Administration be authorized to proceed with the Plan s projects identified for redress in Year 1, fiscal 2006/2007 at a cost not to exceed $14,269, (including projects funded under Facilities Renewal Projects). 9. FINANCE COMMITTEE REPORT a) Five-Year Capital Renewal Financing Plan The Finance Committee recommended a Five-Year Capital Renewal Financing Plan, in support of both the 10-year Deferred Maintenance and Utilities Capacity Plan and high priority projects in Student Housing. Student Housing projects are being developed and will be presented to the Physical Resources and Property Committee for consideration. The projects will improve the institution s competitiveness and will result in offering more single occupancy residence rooms. The five-year rolling Financing Plan will return to the Board annually for consideration and approval. Elaboration was provided on the sinking fund, required under the Board policy. It was noted that the institution s borrowing will be reduced by the amount of additional grant funding the institution may receive in support of deferred maintenance. In light of this funding proposal, it was asked how the University will afford the funding requirements in the event of a solvency deficit in the pension plans. It was confirmed that the Administration will return to the Board with a proposal, which will be a part of the 2007/2008 Financing Plan. The Finance Committee Chair stressed the institution s need to retain as much financial flexibility as possible. RESOLVED, That the Board of Governors approve the Five-Year Capital Renewal Financing Plan, dated May 23, 2006, and authorize the University to borrow up to $8.9 million in fiscal 2006/2007 for the purposes specified in the Financing Plan. b) Tuition Fee Framework In follow up to the April, 2006, Board meeting, the international tuition fee framework was returned to the Finance Committee for review and clarification. The Committee considered the concept of a cohort tuition fee for international students. The Committee supports the University introducing a cohort fee for international student commencing with students entering in 2006/2007. RESOLVED, That the Board of Governors approve the implementation of a degree program cohort tuition fee for international students. This cohort fee will commence in

5 BOARD OF GOVERNORS MINUTES OF MAY 25, 2006 Page 5 of /2007 and will apply to all new international students beginning studies at the University of Guelph in 2006/2007 and fixed at the approved 2006/2007 tuition fee rates for normal duration of their degree program. The degree program tuition fee rate for subsequent cohorts of international students will be set as part of the University s normal budget process. 10. MEMBERSHIP AND GOVERNANCE COMMITTEE a) Board of Governors Election Results i. Graduate Students RESOLVED, That the Board of Governors accept that Ms. Barb Caswell, a graduate student elected by the graduate students, be appointed to the Board of Governors, for a one-year term, effective July 1, 2006 through to June 30, ii. Undergraduate Students RESOLVED, That the Board of Governors approve the appointments of Mr. John Coombs and Ms. Bre Walt to the Board of Governors to serve in the two undergraduate seats, respectively, for a one-year term, effective July 1, 2006 through to June 30, iii. Staff RESOLVED, That the Board of Governors accept that Mr. Bill Tccsdalc, a staff/alumnus member elected by the staff, be appointed to the Board of Governors, for a three-year term, effective July 1, 2006 through to June 30, iv. Faculty The Senate will conduct a fall election to fill one faculty seat, which will be vacated June 30, The Membership and Governance Committee will make a recommendation to the Board s Executive Committee, which will enable the individual to participation in fall committee meetings and the October Board meeting. The Board will be informed. 11. BOARD MEMBERS RETIRING, JUNE 30, 2006 Retiring Governors were individually acknowledged and thanked for their service on the Board. Members retiring included: Aiden Abram, Kathy Bardswick, Carolyn Clark, Stew Hilts, Andrea Lister, Kim Neale. 12. OTHER BUSINESS The President announced that Ms. Vicki Hodgkinson has been appointed University Secretary.