Board of Trustees Meeting - Cover Letter

Transcription

1 Board of Trustees Meeting - Cover Letter 5

2 Board of Trustees Meeting - Map and Directions to UMS University of Maine System Office, Downtown Bangor The University of Maine System Office is located in the former W.T. Grant Building, 16 Central Street in downtown Bangor. It is located at the intersection of Main, Hammond and Central Streets. Epic Sports is located on the ground floor. UMS occupies the top three floors of the building. The entrance to the UMS office is the last door on the left. System Office Directions to the Parking Garage: From I-95 Exit 182A to I-395 East, Exit 3B to Main Street At the 5th traffic light (Bangor Waterfront) turn right on Railroad Street, take immediate left on Summer Street. Follow to traffic light at Broad Street, turn left; parking garage is on the right. Walking from the Parking Garage: Exit parking garage and turn right. Follow the sidewalk to West Market Square and on to Hammond Street. The University of Maine System Building [UMS & Epic Sports] is across the street on the left. UMS entrance is the last door on the far right-hand side of that building, located at 16 Central Street. System Office Questions? (207)

3 Board of Trustees Meeting - Map and Directions to UMS Downtown Parking Tips Parking Garage Pickering Square Garage, 100 Broad Street, Bangor ( ) The first two hours of parking are free. Hours of operation: Monday - Friday 6:00 a.m. to 9:00 p.m. Saturdays 8:00 a.m. to 6:00 p.m. (No attendant on duty on Saturdays.) Ticket Validation Bring your parking garage ticket to the UMS reception desk (3rd Floor) to have your parking validated. Emergencies in Parking Garage Emergencies in the parking garage should be reported to the parking garage office during business hours or the Bangor Police Department (call 911). Overnight Parking Year-round overnight parking is allowed in parking garage. On-Street Parking On-street parking is available. Most parking spots have one- or two-hour limits. Note: parking laws are strictly enforced in downtown Bangor. Handicapped Parking Handicapped parking spaces are located near the elevators on each floor of the parking garage. There are also a limited number of one-hour handicapped parking spaces on the streets in downtown Bangor. Winter Parking Ban From November to April, no overnight parking is allowed on the streets or street parking lots in downtown Bangor. University of Maine System 16 Central Street, Bangor, ME (207)

4 Board of Trustees Meeting - Agenda REVISED 10:40 am UMS Board of Trustees Meeting at the University of Maine System Monday, January 26, 9:00 am AGENDA Meeting Room for Faculty Representatives from 8:00 am to 9:00 am - Room 321, 3rd floor Meeting Room for the Student Representatives from 8:00 am to 9:00 am - Room 205A, 2nd floor Call to 9:00 am Acceptance of Minutes Committee Reports/Actions (15 mins) Academic & Student Affairs Committee Meeting (1/7/15) Finance/Facilities/Technology Committee Meeting (12/19/14) Investment Committee Meeting (12/3/14) USM President Search Committee Update Chair s Report (20 mins) Chancellor s Report (60 mins) Tab 1 - Resolution for Cynthia Huggins Tab 2 - University of Southern Maine Metropolitan University Update Tab 3 - Chancellor's Discussion on System Change Report on Academic Affairs (20 mins) Tab 4 Update on Academic Portfolio Review and Integration Process (APRIP) Vice Chancellor for Finance and Administration & Treasurer s Report (30 mins) Tab 5 Financial Update Citizen Comment Lunch Break (15 mins) (The lunch break will be at the Chair s discretion based on the schedule) Consent Agenda (15 mins) Action items from the December 3, 2014 Investment Committee Meeting: Tab 6 University of Maine System Divestment of Coal Action items from the December 19, 2015 Finance/Facilities/Technology Committee Meeting Tab 7 Updated Authorization for Central Heating Plant, UMF Tab 8 Updated Authorization for Heating Plant Replacement, USM Action items from the January 7, 2014 Academic & Student Affairs Committee Meeting: Tab 9 In-state tuition rate to military dependents using a GI Bill 7

5 Action Items (30 mins) Tab 10 - Confirmation of Faculty & Student Representatives to the Board of Trustees Tab 11 - Approval of 2014 Maine Economic Improvement Fund (MEIF) Annual Report Tab 12 - Establishment of the Edward Sturgis Grew Professorship of Petrology & Mineralogy, UM Tab 13 - Establishment of the George H. Denton Professorship of Earth Sciences, UM Information Items (5 mins) Tab 14 - Academic Year Calendars for Tab 15 - Capital Projects Status Report Tab 16 - Dashboard Indicators Tab 17 - Agenda Calendar Executive Session (90 mins) Tab Honorary Degree Nominations Tab Honorary Degree Nominations Tab 20 - Appointment of Interim President, UMM Tab 21 - Award of Tenure to Dean, University of Maine School of Law Date of the Next Meeting: March 15 & 16, 2015 at the University of Maine Note: Times are estimated based upon the anticipated length for presentations or discussion of a particular topic. An item may be brought up earlier or the order of items changed for effective deliberation of matters before the Board. Tabs noted in red text are action items. Board of Trustees Meeting - Agenda 8

6 Board of Trustees Meeting - Resolution for Cynthia Huggins 1 AGENDA ITEM SUMMARY 1. NAME OF ITEM: Resolution for Cynthia Huggins 2. INITIATED BY: James Page, Chancellor 3. BOARD INFORMATION: BOARD ACTION: X 4. BACKGROUND: Cynthia Huggins served the University of Maine System as President of the University of Maine at Machias for ten years. Dr. Huggins completed her service as president on January 2, Prior to her service as President, Dr. Huggins was interim Vice President for Academic Affairs. Her UMM career started with her faculty appointment as Assistant Professor of English in She received tenure and promotion to associate professor in Dr. Huggins has been a tireless advocate for UMM throughout her career, championing its mission as an environmental liberal arts institution. She has also played a strong role in leadership of the University of Maine System through her involvement in Board of Trustees initiatives. 5. TEXT OF PROPOSED RESOLUTION: A resolution for Board approval will be presented at the January 26, 2015 Board of Trustees meeting. 01/15/15 46

7 Board of Trustees Meeting - University of Southern Maine Metropolitan University Update 2 AGENDA ITEM SUMMARY 1. NAME OF ITEM: University of Southern Maine Metropolitan University Update 2. INITIATED BY: James Page, Chancellor 3. BOARD INFORMATION: X BOARD ACTION: 4. BACKGROUND: At the November Board of Trustees meeting Dr. Richard Barringer spoke to the Trustees about the work of the Metropolitan University Steering Group that was formed to advance the metropolitan university idea at USM. Its goal is to recommend a strategy and implementation plan that will make the Metropolitan University concept the strategic focus of USM going forward, one that will maximize its impact within USM and with its community partners and afford competitive advantage to position USM for growth and success serving the metropolitan region and, by extension, the State. Since that meeting the Metropolitan University Steering Group issued its final report, Forging a New identity on December 4 and a convocation featuring Dr. Barbara Holland was held. President Flanagan will update the Board on work to implement the metropolitan university mission at USM. 1/15/15 47

8 AGENDA ITEM SUMMARY 1. NAME OF ITEM: Chancellor s Discussion on System Change 2. INITIATED BY: James H. Page, Chancellor 3. BOARD INFORMATION: X BOARD ACTION: 4. BACKGROUND: The Chancellor will discuss system change with the Trustees as an information item to seek additional feedback, modification, and alignment. 01/15/2015

9 Board of Trustees Meeting - Update on Academic Portfiolio Review and Integration Process (APRIP) 4 AGENDA ITEM SUMMARY 1. NAME OF ITEM: APRIP Update 2. INITIATED BY: James H. Page, Chancellor 3. BOARD INFORMATION: X BOARD ACTION: 4. BACKGROUND: University of Maine at Farmington President Kathryn Foster will provide an update on the overall Academic Portfolio Review and Integration Process (APRIP). 1/15/15 50

10 Board of Trustees Meeting - Update on Academic Portfiolio Review and Integration Process (APRIP) Academic Portfolio Review and Integration Process Oversight Committee Identified Areas for UMS Action, January At its December 2014 meeting, the APRIP Oversight Committee identified five areas for UMS action to facilitate success in the APRIP effort. These are: 1. Future State. Provide a clear framework for the UMS (structurally, financially) that will maintain campus-level distinctions and identities while safeguarding collaboration. This is the scaffold within which APRIP sub-teams will deliberate and make recommendations on the futures of disciplines in the UMS. Knowing whether the UMS will be, for example, a unified university, seven entrepreneurial and largely independent universities, or something in-between, e.g., several networked universities, will advance the work of discipline-specific sub-teams. 2. Incentives. Provide positive incentives for desired behavior and eliminate perverse incentives that propagate undesired behaviors. In particular: a. Invest funds in inter-university collaborations. Provide seed money for interuniversity initiatives with high potential to improve program quality, broaden access, and realize financial savings. b. Rethink policies that thwart inter-university collaborations. Current policy and practice tend to promote inter-university competition over collaboration. A prime example is the formula for Outcomes-Based Funding, which allocates funds to campuses based on the number of degrees granted. 3. Budgeting/Enrollment Accounting Reform. Corollary to item 2, address implications of UMS budget and enrollment accounting practices, which may jeopardize academic portfolio integration. That each campus must balance its budget and because most campus revenues come from credit hour generation means that campuses have a powerful incentive to hoard credit hours. Current practices complicate inter-campus registration and distribution of tuition dollars. They also hamper student success, as when inter-campus students cannot make a Dean s List for lack of sufficient credits at a single campus. 4. Technology Disparities. Invest to normalize the quality of technology infrastructure to support inter-university programs. To facilitate innovation in distance education, develop an inventory of technology disparities and an investment plan to address them. 5. Data Consistency. Create standard operating procedures potentially through a Data Czar to harmonize and integrate UMS data systems and tools. Cross-university reporting, as formulated by campus-based institutional researchers, is hampered by incompatible data, language, parameters, and inputs. A particular impediment to APRIP success is the functioning of Maine Street, the channel for data collection, analysis, and action, which operates separately for each of the seven UMS universities. 51

11 Board of Trustees Meeting - Financial Update 5 AGENDA ITEM SUMMARY 1. NAME OF ITEM: Financial Update 2. INITIATED BY: James H. Page, Chancellor 3. BOARD INFORMATION: X BOARD ACTION: 4. BACKGROUND: Vice Chancellor Rebecca Wyke will provide a brief financial update at the January 16, 2015 Board of Trustees meeting. 01/15/

12 Board of Trustees Meeting - Financial Update University of Maine System Managed Investment Pool Total Plan Performance Detail (Net of Fees) Market Value ($) % of Portfolio Policy % _ MIP Composite 268,629, Allocation Index Policy Index Total Domestic Large Cap 45,053, S&P SSgA S&P ,053, S&P Total Domestic Small/Mid Cap 14,353, Russell Westfield Capital 7,364, Russell 2500 Growth DFA 6,989, Russell 2000 Value Total International Equity (including emerging markets) 60,227, MSCI EAFE Morgan Stanley 21,079, Globeflex 20,667, MSCI EAFE Emerging Markets Equity 18,480, MSCI Emerging Markets Aberdeen Emerging Mrkts 9,661, MSCI Emerging Markets Mondrian EM Small Cap 8,819, MSCI Emerging Markets Small Cap Total Fixed Income 41,276, Barclays Aggregate Commonfund 27,626, Barclays Aggregate Loomis Sayles Fixed Income 13,649, Barclays Global Aggregate Mo (%) Fiscal YTD (%) YTD (%) 1 Yr (%) 2 Yrs (%) 3 Yrs (%) 5 Yrs (%) 7 Yrs (%) 10 Yrs (%) 5.1 November 30,

13 Board of Trustees Meeting - Financial Update University of Maine System Managed Investment Pool Total Plan Performance Detail (Net of Fees) Market Value ($) % of Portfolio Policy % _ Total GAA 67,527, % MSCI ACWI (Net) / 35% BC Global Agg GMO Global Absolute Return 23,569, Blended Index Wellington 24,130, % MSCI ACWI (Net) / 35% BC Global Agg PIMCO All Asset 19,828, Blended Index Total Hedge Funds 33,658, HFRI Fund of Funds Composite Index Permal 14,955, HFRI Fund of Funds Composite Index Cube 14,752, HFRI Fund of Funds Composite Index Blenheim 3,950, Bloomberg Commodity Index Total Real Assets 4,980, John Hancock Timber Fund 4,980, NCREIF Timberland 1 Qtr Lag Private Equity 1,186, Landmark Equity Partners XV 1,186, Cambridge Associates US All PE 1 Qtr Lag Total Cash 365, Distribution Account 365, Day T-Bills Mo (%) Fiscal YTD (%) YTD (%) 1 Yr (%) 2 Yrs (%) 3 Yrs (%) 5 Yrs (%) 7 Yrs (%) 10 Yrs (%) 5.1 Notes: Fiscal YTD begins 7/1 GMO Blended Index: 40% BC Aggregate / 30% BC U.S. TIPS 1-10YR / 10% S&P 500 / 10% BC High Yield / 10% JPM EMBI+ PIMCO All Asset Blended Index: 40% BC Aggregate / 30% TIPS / 10% S&P 500 / 10% High Yield / 10% EMBI Returns are net of manager fees. Landmark market value is estimated as of 11/30/14. November 30,

14 Board of Trustees Meeting - Financial Update University of Maine System Pension Plan Total Plan Performance Detail (Net of Fees) Market Value ($) % of Portfolio Policy % _ Pension Composite 37,977, Allocation Index Policy Index Total Domestic Large Cap 3,017, S&P Vanguard S&P 500 Index 3,017, S&P Total Small Cap Composite 1,157, Russell SSgA R2000 Index Fund Non Lending 1,157, Russell Total International Equity (including emerging markets) 3,731, MSCI EAFE Morgan Stanley Int'l 2,626, MSCI EAFE Emerging Markets Equity 1,104, MSCI Emerging Markets Mondrian EM Small Cap 1,104, MSCI Emerging Markets Small Cap Total Fixed Income 12,394, Barclays Aggregate PIMCO Total Return II 5,480, Barclays Aggregate JP Morgan Core Bond 5,304, Barclays Aggregate Loomis Sayles Fixed Income 1,608, Barclays Global Aggregate Mo (%) Fiscal YTD (%) YTD (%) 1 Yr (%) 2 Yrs (%) 3 Yrs (%) 5 Yrs (%) 7 Yrs (%) 10 Yrs (%) 5.2 November 30,

15 Board of Trustees Meeting - Financial Update University of Maine System Pension Plan Total Plan Performance Detail (Net of Fees) Market Value ($) % of Portfolio Policy % _ Total GAA 11,850, % MSCI ACWI (Net) / 35% BC Global Agg PIMCO All Asset 6,042, Blended Index Barclays US TIPS 1-10 Years Wellington 5,808, % MSCI ACWI (Net) / 35% BC Global Agg Total Alternative Investments 3,304, HFRI Fund of Funds Composite Index Permal 1,607, HFRI Fund of Funds Composite Index Cube 1,696, HFRI Fund of Funds Composite Index Total Real Assets 2,057, Principal 2,057, NCREIF ODCE Total Cash 464, Distribution Account 464, Day T-Bills XXXXX 1 Mo (%) Fiscal YTD (%) YTD (%) 1 Yr (%) 2 Yrs (%) 3 Yrs (%) 5 Yrs (%) 7 Yrs (%) 10 Yrs (%) 5.2 Notes: Fiscal YTD begins 7/1 PIMCO All Asset Blended Index: 40% BC Aggregate / 30% TIPS / 10% S&P 500 / 10% High Yield / 10% EMBI Returns are net of manager fees. November 30,

16 Board of Trustees Meeting - Financial Update University of Maine System Operating Fund Total Plan Performance Detail (Net of Fees) Market Value ($) % of Portfolio _ Operating Funds Composite 253,523, Allocation Index Liquidity Pool Composite 39,963, State Pool 24,253, Dreyfus Inst'l Cash Advantage 11,036, BOA General Fund 1,957, Federated Prime Cash Obligations 2,716, Citi 3mth Treasury Bill Income Pool Composite 141,857, Income Research + Management 75,110, Barclays 1-3 Yr. Govt/Credit PIMCO Floating Income Fund 21,086, Dur, 1/3 JPM EMBIG, 1/3 BC Agg, 1/3 ML HY BB Loomis Sayles Bank Loans 18,577, Loomis Bank Loans Custom Index Vanguard Total Bond Market Instl' Fund 27,082, Barclays Aggregate Total Return Pool Composite 71,703, Cube 9,705, HFRI Fund of Funds Composite Index Permal Fixed Income Holdings 9,400, HFRI Fund of Funds Composite Index Windhaven Diversified Conservative 20,080, Blended Index PIMCO All Asset 20,393, Blended Index Vanguard Total World Stock Index 12,122, FTSE Global All Cap Index Policy % 1 Mo (%) Fiscal YTD (%) YTD (%) 1 Yr (%) 2 Yrs (%) 3 Yrs (%) 5 Yrs (%) 7 Yrs (%) 5.3 Notes: Fiscal YTD begins 7/1 PIMCO Blended Index: 40% BC Aggregate / 30% BC U.S. TIPS 1-10YR / 10% S&P 500 / 10% BC High Yield / 10% JPM EMBI+ Loomis Bank Loans Custom Index blends performance of "S&P/LSTA Leveraged Loan Index" before 9/1/2014 and "S&P/LSTA Leveraged BB Loan Index" after 9/1/2014. Composite excludes external loans. The inception date for the allocation index is 7/1/2009. Returns are net of manager fees. November 30,

17 Core Financial Ratios and Composite Financial Index FY06 to FY14

18 Primary Reserve Ratio Expendable Net Position to Total Expenses 2

19 Net Operating Revenues Ratio Operating Income (Loss) Plus Net Non-Operating Income to Operating Revenues Plus Non-Operating Revenues 3

20 Return on Net Position Ratio Change in Net Position to Total Net Position 4

21 Viability Ratio Expendable Net Position to Long-Term Debt 5

22 Composite Financial Index - Trend 6

23 Scale for Charting Performance of the Composite Financial Index 7

24 FY14 Graphic Financial Profile 8

25 For More Information Visit: Core Financial Ratios and Composite Financial Index FY06 to FY14: Full Report Core Financial Ratios for UMS and Component Units FY10 to FY14 Core Financial Ratios for FY06 to FY14: By Campus Core Financial Ratios for Prior Years: FY09, FY10, FY11, FY12 & FY13 9

26 AGENDA ITEM SUMMARY 1. NAME OF ITEM: University of Maine System Divestment of Coal 2. INITIATED BY: James H. Pages, Chancellor 3. BOARD INFORMATION: BOARD ACTION: X 4. BACKGROUND: At its December 3, 2014, meeting, the Investment Committee reviewed the University s exposure to coal within its three portfolios. The Committee discussed divestment options and limitations as identified by its investment consultant, New England Pension Consultants (NEPC). NEPC s report detailing the coal exposure may be viewed at The University uses mostly mutual funds, commingled funds and limited partnerships for its investments, limiting its options to reduce fossil fuel exposure to those few separate accounts where investments are directly held by the University. The following summarizes the coal exposure as of September 30, 2014: Percent of Portfolio Invested in Coal Portfolio Coal Exposure Managed Investment Pool $856, % Pension Fund $91, % Operating Fund $713, % Following the discussion, the Investment Committee approved that the below resolution be forwarded to the January 26, 2015, Board of Trustees Consent Agenda for approval. As measured by the September 30, 2014 date, taking this action will result in the divestment of $502 thousand, or about 30%, of the approximate $1.7 million in coal investments. 5. TEXT OF PROPOSED RESOLUTION: That the Board of Trustees approve the recommendation of the Investment Committee directing University of Maine System equity and fixed income separate account Investment Managers to negative screen for coal and to divest of any current directly held investments in coal mining companies. This action applies to the University s three portfolios - the Managed Investment Pool, Defined Benefit Pension Fund and Operating Funds. 1/16/2015

27 Board of Trustees Meeting - Updated Authorization for Central Heating Plant, UMF AGENDA ITEM SUMMARY 1. NAME OF ITEM: Updated Authorization for Central Heating Plant, UMF 7 2. INITIATED BY: James H. Page, Chancellor 3. BOARD INFORMATION: BOARD ACTION: X 4. BACKGROUND: This is a request pursuant to Board of Trustees Policy 701 and other applicable policies to update the authorization for the already approved Central Heating Plant project (# ) at the University of Maine at Farmington, including to allow the project to use biomass as its energy source rather than natural gas. The updated project is expected to: reduce energy costs in the first year by approximately $830,000; be cash flow positive starting in the first year; have a simple payback of 9.4 years; and, reduce carbon emissions by an estimated 3,400 tons annually compared with the status quo. This update does not include any change in the authorized total budget. This request for updated authorization follows the determination by the project s natural gas partner that it will be unable to commit to the delivery of natural gas on which the project had been reliant. A copy of the recent notice to the University is included as Attachment I. This notice to the University followed the July 21, 2014, approval by the Board to increase the scope and cost of the project, and to authorize financing for the project. At that time, the University was very much still working toward a natural gas solution. The Board at that time authorized the University of Maine System, on behalf of the University of Maine at Farmington, to increase the scope and approved maximum expenditure of $11 million to build a central plant and distribution system that is dual-fuel, which is natural gas with a #2 oil backup. Until the natural gas line is constructed, a bridge fuel will be engaged on a short-term basis. There will be capacity to add a biomass boiler after five years. The final term, including rate, associated costs and other terms, shall be negotiated by the University of Maine at Farmington in the best economic interest of the University, subject to review and approval by the University of Maine System Treasurer and General Counsel. With the notice that natural gas would not be available as anticipated, UMF reevaluated its plan to advance the goals of improving energy efficiency, reducing energy costs and gaining other benefits such as carbon emission improvements. 59

28 Board of Trustees Meeting - Updated Authorization for Central Heating Plant, UMF UMF engaged its Project Team - consisting of Dirigo A/E (project management), Competitive Energy Services (energy consultant), Trane (RFP award contractor), UMF s Sustainability Coalition and the UMF Energy Committee - to build on the already completed and still applicable engineering and designs for the project, including building energy models, equipment sizing, and piping system for a central heating plant fueled per the BOT approval. With the collaborative effort of this Project Team and stakeholders, and following a recent campus dialogue initiative around this project, UMF now recommends and seeks approval to implement this project as a biomass (woodchips) solution, with liquid propane gas as a backup alternative fuel. 7 This recommendation is based on: Cost analysis of biomass and other fuels to determine savings and simple payback Operating costs and site logistics Engagement of local community members Examination of carbon footprint reduction and emissions permitting Fuel flexibility to accommodate future commodity market changes Tours and interviews with other operators of biomass central heating plants The Project Team s analysis as summarized above and detailed in Attachment II confirms that a biomass-fueled central heating plant for UMF is a viable and cost-effective investment for the University that will reduce heating oil consumption at Farmington by an estimated 360,000 gallons annually. Utilizing liquid propane gas as a backup fuel in the project will provide the capacity to accept natural gas should it ever become a viable energy source in this location. The project team will be reviewing a schematic design-level cost estimate before the end of the year December, with a final confirmation of project cost due by the end of January to take advantage of a currently planned round of financing. The total project cost is expected to remain within the current Trustee-approved limit. Any further updates or changes would be re-visited with Trustees at the Board s meeting in January if necessary. Biomass woodchips present a cost-effective alternative to natural gas as a primary fuel, although the capital costs associated with utilizing biomass wood chips are substantially more than natural gas. Capital items such as a larger central heating plant footprint, chip handling systems, below grade chip storage bins and ash removal systems increase the bare cost of the fuel reflected in this table. When the substantially lower fuel costs are calculated along with the greater capital costs, the team has estimated that the simple payback and annual cash flow benefits are nearly the same as the previously approved natural gas option. Lastly, UMF is committed to seeking alternative funding sources to offset the cost of the project and is working with Efficiency Maine, the United States Department of Agriculture, Northern Forests, and other organizations regarding grant options that could lessen the debt service burden of the project and further improve cash flows. No such funding is yet secured, but there does appear to be potentially greater opportunities for alternative funding to support a biomass project than would be the case with natural gas. 60

29 Board of Trustees Meeting - Updated Authorization for Central Heating Plant, UMF The Finance, Facilities and Technology Committee approved this recommendation to be forwarded to the Consent Agenda for Board of Trustee approval. 5. TEXT OF PROPOSED RESOLUTION: That the Board of Trustees approve the recommendation of the Finance, Facilities and Technology Committee to authorize the University of Maine System to enter such agreements as may be necessary to utilize biomass (wood chips) at the University of Maine at Farmington as a primary fuel source at the pending central heat plant project, with liquid propane gas as a backup energy source, subject to review and approval by the University of Maine System Treasurer of all terms and conditions, including all costs. 7 01/15/15 61

30 Board of Trustees Meeting - Updated Authorization for Central Heating Plant, UMF Attachment I

31 Board of Trustees Meeting - Updated Authorization for Central Heating Plant, UMF MEMORANDUM Attachment II PROJECT: UMF Energy Upgrades DATE: December 1, 2014 SUBJECT: Thermal Energy Alternative 7.2 Over the past decade, the University of Maine at Farmington, like many other university campuses, has found itself continually hamstrung by the ever increasing costs of heating fuel for its campus. With nearly 400,000 gallons consumed each year, the expense of heating UMF s many campus buildings has more than tripled since 2001, with oil prices rising from just over $1/gallon to between $3-4/gallon. UMF has been forced to pay whatever price for heating fuel that the market dictates, as nearly all of its buildings are configured to solely burn heating oil. There is no easy, readily available conversion solution to circumvent the fuel costs without excessive cost to the university. Coupling this escalation with reduced overall operating funds and no foreseeable cap on oil prices, UMF embarked on mission to not only reduce the direct cost of heating fuel, but to also provide a solution with flexibility for future unknown market conditions. The first step in this process was to ask, If we were to start over and construct the UMF campus today, what system would we use to heat it? Through research, outreach and collaboration with industry experts, it was determined that a central heating plant would easily win out as a way to heat the campus buildings rather than by the individual heating plants in each of the buildings now. The following table outlines the benefits of both scenarios. Attribute Central Heating Plant Individual Heating Plants Fuel Storage Centralized, single set of tanks or bins (biomass) Most buildings have a buried tank, or share with one other building. More tanks means more to maintain and keep up Fuel Capacity One location for fuel makes maintaining fill levels straightforward. One full tank means every campus building will be heated. Single point of fueling allows for bulk delivery and lower per-unit costs. to date with DEP requirements Multiple tanks to track, fill and monitor. 1 P a g e 63

32 Board of Trustees Meeting - Updated Authorization for Central Heating Plant, UMF Multi-Fuel Redundancy Efficiency Maintenance Operations Anticipated Useful Life Larger boilers can run on either LP gas, natural gas, or biomass. One swap-out of burner type means entire campus can be converted over to another fuel type Will gain 12-15% heating efficiency per BTU compared to the individual plants Less equipment, although larger and therefore the parts are comparatively more expensive. Anticipate at least 1 FTE reduction in labor force possible Centralized control system provides a single-source of heating to satisfy multiple buildings through remote monitoring. Redundancy in the injection points and fuel source provide ability to make universal changes from a centralized point. Sophisticated monitoring system provides automated operations and system-fault messaging ability. Industrial-grade equipment is designed for lifespan under intense and prolonged operating conditions, and can have major components overhauled rather than replaced. 40+ years is expected. Capability exists with most equipment by changing the burner type and making some code-requirement modifications to each building. Timeconsuming to switch, and have to add second fuel storage or piping to each building. Efficiency is limited to the boiler rating, which diminishes over time More equipment to maintain in numerous locations, meaning more labor hours annually to maintain heating capability Several boilers are small, residential-type units with little automated control ability. Problems are typically reported through occupant report rather than early system warnings. Equipment is maintainable but it is more cost-effective to replace than overhaul years is typical for commercialgrade equipment, years for residential-grade equipment P a g e 64

33 Board of Trustees Meeting - Updated Authorization for Central Heating Plant, UMF Going hand-in-hand with central heating vs. distributed heating is fuel selection. There have been several options looked at in great detail, and those are summarized below: Criteria LP Gas Natural Gas Wood Chips Wood Pellets (Piped) Fuel Cost 1 $18.41 $15.19 $5.23 $12.20 Fuel Availability Readily available from local vendors for competitive pricing Not yet available Available from local suppliers in bulk quantities Available from a few Maine-based plants in bulk quantities. At times pellet production has lagged peakdemand times creating shortterm market Fuel Storage Emissions 3 Renewable Resource Large steel tanks, preferably installed underground Emits greenhouse gases that adds to the global warming effect None Emits greenhouse gases that adds to the global warming effect Large concrete bunkers/bins installed below grade Particulates in ash exhaust are mechanically removed and deposited in ash bins, which can be used for fertilizer. The carbon that is emitted during combustion is not more than what the biomass would otherwise release during decomposition in the forest. Carbon footprint value is due to the fossil fuels burned during harvest and processing. No No Yes Yes shortages Silo system Similar emissions as wood chips P a g e 65

34 Board of Trustees Meeting - Updated Authorization for Central Heating Plant, UMF Capital Equipment Cost Aside from tanks and fuel lines, a relatively small building is required to house the boilers and circulation pumps. A relatively small building is required to house the boilers and circulation pumps. Requires the largest building to accommodate the bins storage, chip handling equipment, and exhaust treatment equipment Carbon Footprint 2 Community perception This is a common fuel to most households for heating and/or cooking use. It is general perceived as more ecofriendly than heating oil. Due to its low cost, there is a large push to use natural gas where available. It is a domestic product but hydrofracking practices in the extraction process have been alleged to have negative impact on the surrounding environment. Maine-based product growing in popularity, proportional to the increase of widespread existing fossil-fuel based heating appliances. Wood chips preset a less refined fuel product, with less heating capacity per unit but at a reduced price. Less processing leads to lower carbon footprint due to means of getting product from forest to boiler. Requires a slightly smaller building than wood chips that houses the silos, pellet conveyor augers, and exhaust treatment equipment. Also, dust from pellet residue creates a fire-safety concern that must be incorporated into the design. Similar to wood chips. On a consumer level, pellets are told in 40# bags that typically suffice for daily fuel needs. That ease of product use has lead to widespread conversion of residential dwellings to fully or partially heat with wood pellets, resulting in a general understanding and acceptance of the fuel type Notes: 1. Fuel cost is expressed in dollars per 1 million BTUs or dekatherms 2. Carbon Footprint is expressed in pounds of CO 2 per 1 millsion BTUs or dekatherms 3. Emission concerns here are relevant to greenhouse gases, which when released into the atmosphere combine with other naturally occurring greenhouse gases and inhibit the release of heat back into the atmosphere. These gases include carbon dioxide (CO 2), nitrous oxide (NO 2), and sulfur dioxide (SO 2). Additionally, carcinogenic volatile organic compounds (VOCs) are also released into the atmosphere P a g e 66

35 Board of Trustees Meeting - Updated Authorization for Central Heating Plant, UMF Recommendation Due to the reduced carbon footprint, added efficiency, reasonable availability, and competitive cost structure, we recommend that a central heating plant be installed at UMF, using wood chip biomass as its primary fuel, with LP gas as a backup or alternative fuel. This gives the campus a pivotal position to lower fuel heating costs and has much greater flexibility in heating fuel choices in the future should market conditions warrant, including the adoption of piped natural gas should it become available in the future P a g e 67

36 Board of Trustees Meeting - Updated Authorization for Heating Plant Replacement, USM AGENDA ITEM SUMMARY 1. NAME OF ITEM: Updated Authorization for Heating Plant Replacement, USM 2. INITIATED BY: James H. Page, Chancellor 8 3. BOARD INFORMATION: BOARD ACTION: X 4. BACKGROUND: This is a request pursuant to Board of Trustees Policy 701 to update the authorization for the already approved Central Heating Plant Replacement project (# ) at the University of Southern Maine in Portland. The project is unchanged from the approval granted by the Board of Trustees on September 21-22, 2014, per the recommendation of its Finance, Facilities and Technology Committee as shown in the attached prior agenda sheet, except the funding source for the project now is being updated. As part of the proposed FY16 budget package at the University of Southern Maine, the University proposes to use internal financing rather than reserves to fund this project. That mechanism will allow the University to have those reserves available instead to ensure a balanced budget in FY16 and also still pursue the needed energy project. Pursuant to Board Policy and to Administrative Practice Letter II-C, the University currently has the capacity to permit this $3 million internal loan. The internal rate to USM would be 1.69% APR for a total of five annual payments of $630,759.81, one each in FY17 through FY21. The Finance, Facilities and Technology Committee approved this recommendation to be forwarded to the Consent Agenda for Board of Trustee approval. 5. TEXT OF PROPOSED RESOLUTION: That the Board of Trustees approves the recommendation of the Finance, Facilities and Technology Committee to authorize the University of Southern Maine to expend up to $3,000,000 via an internal University loan to fund replacement of the Portland Central Heat Plant and related equipment. 01/15/15 68

37 Board of Trustees Meeting - Updated Authorization for Heating Plant Replacement, USM AGENDA ITEM SUMMARY 1. NAME OF ITEM: Central Heat Plant Replacement, USM 2. INITIATED BY: James H. Page, Chancellor 3. BOARD INFORMATION: BOARD ACTION: X BACKGROUND: This is a request pursuant to Board of Trustees Policy 701 and other applicable policies to replace the dual-fuel-fired central heating plant on Portland campus. The University of Southern Maine requests approval for the expenditure of up to $3 million to replace the existing Portland Central Heat Plant boilers, related boiler room equipment switch gear, the main distribution panel and the transformer serving the Central Heat Plant and the adjacent Woodbury Campus Center. The main buildings on the USM Portland campus are heated by a low pressure steam generation and distribution system that supplies steam and returns condensate to the central heat plant. Boilers 1 and 2 burn #6 fuel oil and were installed in Boiler 3 has dual fuel capacity as a result of replacing the burners in 2010 and was installed in Either natural gas or #2 fuel oil is burned, depending on which fuel is more cost effective at any given time. The American Society of Heating, Refrigerating and Air Conditioning Engineers, (ASHRAE) estimates the service life of these types of boilers to be 30 years. USM s have been in service for years. A condition assessment done in 2012 concluded that the boilers critical components have undergone thermal stress cycles beyond the expected service life, thereby making it impracticable for any type of further life extension. There should be no expectation of continued reliable service for these boilers and a complete catastrophic equipment failure is possible. A life extension, though financially impractical, would require replacement of all major components consisting of burner, tubes and tube sheets, refractory, insulation, boiler jacket and controls. USM retained an engineering firm to prepare a central heat plant assessment, study options, and make recommendations. This study was informed by information in the 2010 Utility Master Plan and the goals of the President s Council on Climate Neutrality. Several options were presented and considered for replacement of the existing boilers at the plant. Considering many factors, including efficiency, carbon footprint, capital and operating costs, and available space, the decision was made to replace the existing boilers with dual fuel boilers of like size utilizing natural gas and #2 fuel oil. This project will 69

38 Board of Trustees Meeting - Updated Authorization for Heating Plant Replacement, USM also include building improvements to adhere to current codes and accommodate the three replacement boilers. The following scope will be included in the overall Central Heat Plant Replacement and infrastructure improvements project. Replace three existing low pressure steam boilers and all associated piping and equipment. Include solar preheated hot water make up water, stack economizers, full system automation and coordination with the building automation system, ventilation and combustion air make up, and an environmentally controlled control room. Installation of a permanent standby emergency generator to provide reliable full power requirements to operate the central heat plant during an extended electrical outage. This will maintain the ability to provide steam distribution throughout the campus during an extended electrical outage. Building exterior upgrades include new windows and doors, masonry repointing, roof replacement, chimney removal, and refurbishing the existing oil tank for #2 oil. Building interior upgrades to include a new control room, bathroom facility, maintenance area, and mechanical area. Electrical upgrades include new switch gear, main distribution panel, and transformer for the Central Heat Plant and Woodbury Campus Center. 8.1 This project will improve efficiency resulting in an approximate fuel savings of 11%; in FY 14 that would have reduced costs by $63,000. Additional savings will be realized by equipment reliability, significantly reduced repair costs, and reduced overtime labor for emergency repairs. While savings are significant, this project is not being undertaken for energy savings. Rather, the purpose is the fundamental need to reliably heat and operate the involved facilities as cost-effectively as possible. USM has accumulated approximately $3 million in University E&G funds for this project. Because of the lead time necessary to order the specialized equipment, construction is estimated to start at the end of the heating season to be in operation by October 1, There will be no increase in square footage from this project. The estimated renovation age and net asset value of the plant currently stand at 49 years and 36 percent respectively. The project will re-set the renovation age to the equivalent of a new building and the net asset value is expected to increase to 100 percent, new status. The Finance, Facilities and Technology Committee approved this recommendation to be sent to the Consent Agenda for Board of Trustees approval. 5. TEXT OF PROPOSED RESOLUTION: That the Board of Trustees approve the recommendation of the Finance, Facilities and Technology Committee to authorize the University of Southern Maine to expend up to $3,000,000 in University E&G funds to replace the Portland Central Heat Plant and related equipment. 09/11/

39 Board of Trustees Meeting - In-State Tuition Rate to Military Dependents Using a GI Bill AGENDA ITEM SUMMARY 1. NAME OF ITEM: In-state tuition rate to military dependents using a GI Bill 2. INITIATED BY: James H. Page, Chancellor 3. BOARD INFORMATION: BOARD ACTION: X 4. BACKGROUND: 9 The Veterans Access, Choice and Accountability Act (also known as the Choice Act) was signed into law in August There were two sections of this law pertaining to the GI Bill. The first, 701, expanded the Fry Scholarship to include spouses of service members who died in the line of duty. The second, 702, requires VA to disapprove programs of education at public schools (the law does not apply to private and for profit schools) if the schools do not offer in-state tuition to qualifying Veterans and dependents. In the case of the UMS, this would potentially impact students (both veterans and dependents) Board action in 2014 (attached) already addresses the section pertaining to all current and former members of the US Armed Forces who were honorably discharged, regardless of whether or not they are receiving benefits. Board action is required related to veterans dependents in order to prevent disapproval of several hundred academic programs throughout all UMS campuses prior to the July 1, 2015 deadline. The fiscal impact throughout UMS is negligible as all campuses have reported less than 30 total current GI Bill students/veterans dependents that would be affected by the proposed Board Policy. UMS is positioned to leverage this new requirement as a tool to increase new enrollments by implementing a policy that is clear, concise, easy to administer, and easy to market. The Academic and Student Affairs Committee approved this recommendation to be forwarded to the Consent Agenda for Board of Trustee approval. 5. TEXT OF PROPOSED RESOLUTION: That the Board of Trustees approve the recommendation of the Academic and Student Affairs Committee to charge in-state tuition rates for terms starting after the end of the spring semester, 2015, to all military dependents using a GI Bill. Further, that once the instate tuition rate is applied to the eligible individual, it shall remain in effect until the individual completes their academic program, even after GI Bill benefits have been exhausted, transferred, or are otherwise expired. 1/15/14 71

40 Board of Trustees Meeting - Confirmation of Faculty & Student Representatives to the Board of Trustees AGENDA ITEM SUMMARY 1. NAME OF ITEM: Confirmation of Faculty and Student Representatives to the Board of Trustees 2. INITIATED BY: James H. Page, Chancellor 3. BOARD INFORMATION: BOARD ACTION: X 4. BACKGROUND: To create the environment for interaction among and between Faculty and Student Representatives, the Trustees and System administration, the Trustees have provided opportunities for participation in the meetings of the committees of the Board. 10 One faculty member and one undergraduate student from each of the seven universities and one graduate student from the University of Southern Maine and one graduate student from the University of Maine will be appointed by the Board as non-voting representatives to the Board of Trustees and invited to participate as non-voting members on the standing committees. Normally, the representative is expected to complete a two year term; therefore, it is an expectation that the minimum term of service by Faculty and Student Representatives to the Board be two years. The nominations will be forwarded through the Presidents to the Chancellor for submission to the Board for Trustee approval. The following nominations are being recommended by the Presidents: Faculty Representative: Anne Blanke, UMA (replacing Terry Colby term is Dec to May 2015) Student Representative: Brad O Brien, UMA (replacing Courtney Jicks) term is January 2015 to May 2016) Matthew Clark, USM term is January 2015 to May TEXT OF PROPOSED RESOLUTION: That the Board of Trustees approve the appointments of the following Faculty and Student Representatives to the Board of Trustees: Anne Blanke, UMA Faculty Representative (replacing Terry Colby term is Dec to May 2015); Brad O Brien, UMA (replacing Courtney Jicks - term is Nov to May 2016) and Matthew Clark (term January 2015 to May 2017). 1/15/15 72

41 Board of Trustees Meeting - Approval of 2014 Maine Economic Improvement Fund (MEIF) Annual Report AGENDA ITEM SUMMARY 1. NAME OF ITEM: Approval of 2014 Maine Economic Improvement Fund Annual Report 2. INITIATED BY: James H. Page, Chancellor 3. BOARD INFORMATION: BOARD ACTION: X 4. BACKGROUND: 11 Maine statute requires the University of Maine System to provide an annual report to the Governor and Legislature in January each year. In addition to listing the annual financial data, we also include an assessment of the achievement of the annual goals and objectives, and a summary of the research and development projects that have been funded. The Board of Trustees approved the MEIF Goals and Objectives at its November 16-17, 2014 Board of Trustees meeting. The annual report is attached for review and approval. 5. TEXT OF PROPOSED RESOLUTION: That the Board of Trustees approve the 2014 MEIF Annual Report as presented. 01/15/

42 Board of Trustees Meeting - Approval of 2014 Maine Economic Improvement Fund (MEIF) Annual Report 11.1 Return on investment: Maine s Universities Building our State s Economy through Research, Development and Jobs MAINE ECONOMIC IMPROVEMENT FUND 2014 ANNUAL REPORT 74

43 Board of Trustees Meeting - Approval of 2014 Maine Economic Improvement Fund (MEIF) Annual Report TABLE OF CONTENTS I Memo From the University of Maine System Chancellor Background of the Maine Economic Improvement Fund (MEIF) III Role of MEIF IV Strategic Outcomes, Goals and Metrics MEIF Target MEIF Target MEIF Target MEIF Target V MEIF Success Stories VI Appendix 1 UMS Intellectual Property Table A1-1 University of Maine System New Patent Applications Filed FY Table A1-2 University of Maine System Patents Issued FY VII Appendix 2 MEIF Financial Tables Table A2-1 Legislative Actions Appropriating State Research Funds Table A2-2 Legislative History MEIF New Appropriations Table A2-3 Utilization of FY14 Research Appropriation by Targeted Sector Table A2-4 Utilization of FY14 Research Appropriation by Campus Table A2-5 FY14 MEIF State Funded Research Timeline MAINE ECONOMIC IMPROVEMENT FUND 2014 ANNUAL REPORT 75

44 Board of Trustees Meeting - Approval of 2014 Maine Economic Improvement Fund (MEIF) Annual Report Memo from the Chancellor The Maine Economic Improvement Fund (MEIF) represents Maine s ongoing commitment between the state and our public universities, working together to advance research and economic development for the benefit of all Maine people. In July 2014, the University of Maine System Board of Trustees (UMS BOT) established Strategic Outcomes and metrics to measure the performance of the University of Maine System and its campuses. Included in these Strategic Outcomes are specific goals for research, economic development and workforce development. UMS BOT has applied these overall Strategic Outcomes to research and development, and has established new specific goals and metrics for the Maine Economic Improvement Fund to help achieve these outcomes. While these new metrics were approved at the end of FY14, they are applied to all FY14 MEIF activity and included in this annual report. By statute, MEIF-funded activity is restricted to Maine s seven statutorily established R&D sectors. In FY14, the state s $14.7 million MEIF investment was leveraged at a rate of 3:1 by our UMS campuses for an additional $44,871,626 in federal and private-sector grants and contracts in the seven sectors. MEIF funds and the external grant and contracts it leverages funded the work of over 400 researchers, technicians, and nearly 1,000 graduate and undergraduate students. These grants and contracts provided more than $2 million to purchase major equipment to upgrade and outfit university labs. Maine s public universities secured new patents, worked with small businesses and start-ups, and provided R&D support to hundreds of companies and individuals As required in the statute, which created MEIF 16 years ago, included with this FY14 MEIF report are financial and informational details. We continue to monitor the impact on Maine s economy and participate in the state s independent evaluation of these investments. We will expand the report of these outcomes in future years. If you have any questions about MEIF projects, this report or other University of Maine System research and economic development programs, please contact me. Sincerely, James H. Page Chancellor 2 Maine Economic Improvement Fund 76

45 Board of Trustees Meeting - Approval of 2014 Maine Economic Improvement Fund (MEIF) Annual Report MEIF Background The Maine Economic Improvement Fund (MEIF) represents Maine s ongoing commitment between the state, the private sector and our public universities working together to advance research and economic development for the benefit of all Maine people. Since the Maine Legislature established MEIF in 1997, MEIF has positioned the University of Maine System (UMS) at the center of statewide efforts to leverage economic development through targeted investment in university-based R&D. MEIF continues to be funded through an annual state appropriation to UMS and is periodically augmented through voter-approved bond referenda. These funds provided through state appropriation to University of Maine system are dollars specifically provided to support university-based research, development and commercialization in the state s legislatively designated seven strategic technology areas: Advanced Technologies for Forestry and Agriculture Aquaculture and Marine Sciences Biotechnology Composites and Advanced Materials Technologies Environmental Technologies Information Technologies Precision Manufacturing The University of Maine and the University of Southern Maine have established research development and commercialization activities accounting for 97 percent of the MEIF activity. In 2009, the Small Campus Initiative fund was established to promote seven-sector research and development activity at the other five UMS campuses and, as of 2013, Maine Maritime Academy (MMA). Role of MEIF The role of MEIF is to provide researchers at Maine s public universities with the investment necessary to: Attain external grants and contract to support R&D activities. Attract and retain world-class researchers. Provide support for modern laboratories and state-of-the-art equipment. Create new jobs, products, patents, technologies, companies and exciting opportunities in Maine. Create and sustain economic development and innovation. The MEIF funds often provide the required match to acquire these federal or private sector grants, and this investment in Maine s university R&D helps faculty and students successfully leverage tens of millions of dollars in grants and contracts annually. MEIF money also supports equipment purchases or facilities renovations to make the universities more competitive for federal grants. MEIF increasingly fosters university partnerships with business and industry through economic development collaborations, entrepreneur training programs, business incubators, business research and other programs. These efforts lead to new Mainebased products, technologies, patents and spin-off businesses. The University of Maine and the University of Southern Maine are the two universities with established research and graduate programs in some or all of the seven targeted research sectors that have received MEIF funds, with 77.6 percent to the University of Maine, 19.4 percent to the University of Southern Maine, and 3 percent to the other campuses and Maine Maritime Academy. Indicators of success show that Maine s MEIF investment is paying dividends by: Creating businesses and jobs, including the jobs of more than 1,000 faculty, staff and students working on MEIF-funded projects. Boosting Maine s economy by leveraging MEIF funds to bring federal and private-sector grants and contracts to Maine. Building capacity and expertise to help Maine companies solve problems and commercialize innovation. Helping commercialize patents, innovations and intellectual property. Capitalizing on natural resources and core strengths by focusing R&D efforts on economic sectors where Maine can make real gains. University research personnel use MEIF resources to support the staff, equipment and facilities they need to successfully pursue and develop research projects Annual Report 3 77

46 Board of Trustees Meeting - Approval of 2014 Maine Economic Improvement Fund (MEIF) Annual Report Strategic Outcomes, Goals and Metrics In July 2014, the University of Maine System Board of Trustees (UMS BOT) developed and approved Strategic Outcomes to measure the performance of the University of Maine System and its campuses. In October 2014, UMS BOT approved the use these newly developed Strategic Outcomes to develop MEIF specific goals and metrics. Several of the UMS Strategic Outcomes are performance targets for all R&D and economic development activity. The goals recognize that MEIF activity is restricted to the seven R&D sectors and are therefore a subset of the overall UMS goals. The UMS Strategic Outcomes that apply to R&D activity are: I. Target 1 Increase Research Capacity and Activity II. Target 2 Support New Technologies, Licensing and Commercialization III. Target 4 Increase Economic Development Partnerships IV. Overall Goal Support R&D Workforce Development This report addresses those goals. In addition the University of Maine System reports R&D outcomes annually through the statutorily required survey of Maine R&D activity administered by the Maine Department of Economic and Community Development. The R&D Strategic Outcomes and related MEIF goals are as follows: A. MEIF Target 1 (derived from UMS BOT Research and Economic Development Target 1) UMS maintains a sponsored programs grant and contracts effort growing greater than 3 percent annually on a three-year rolling average, from a 2013 baseline of $45 million and NSFdefined total research expenditures of $45 million in the MEIF sectors. Activity from the seven MEIF sectors will account for 50 percent of the total R&D grants and contracts with a 3 percent annual growth on a three-year rolling average. The FY13 baseline was a calculated percentage of total activity. Table 1 below shows the actual FY13 baseline at slightly less at $43.5 million Table 1 FY14 Total Grants and Contracts Number of Awards Total Award Value Total proposals submitted 1,252 $286,439,522 Total proposals awarded 984 $81,785,923 Grants and Contracts Awarded in MEIF Sectors FY13 MEIF Awards FY14 MEIF Awards Forestry and Agriculture 8,642,424 7,654,060 Aquaculture and Marine 7,045,322 9,153,389 Biotechnology 1,985,295 6,353,450 Composites 9,230,715 5,135,033 Environmental 5,781,658 7,959,264 Information Tech 7,422,675 2,520,521 Precision Manufacturing 1,130,746 1,414,700 Cross Sector 2,290,129 4,681,209 Total $ 43,528,964 $ 44,871,626 FY2014 Increase $1,342, % 4 Maine Economic Improvement Fund 78

47 Board of Trustees Meeting - Approval of 2014 Maine Economic Improvement Fund (MEIF) Annual Report 11.1 In summary, the MEIF Target 1 for increasing external grants and contracts leveraged through MEIF investments saw an increase over the previous fiscal year. This favorable trend continues in a positive direction after decreases from FY10 through FY12. This is largely related to changes in the economy and the federal and private sectors partners who are beginning to slowly increase post-recession funding for R&D. Recognizing the lead time for proposal preparation, sponsor review and selection, and contract activity to begin there can be a one- to two-year lag in output. Proposal preparation and submission remains steady. For the purpose of this report, private-sector contract is counted as a single-proposal submission. B. MEIF Target 2 (derived from UMS BOT Research and Economic Development Target 2) UMS annual revenue from commercialization including intellectual property licensing increases at least 20 percent annually on a three-year rolling average from a baseline of $150,000 from the MEIF sectors. Table 2 MEIF Target 2 Commercialization activity FY13 FY14 Revenue from Commercialization $121,250 $96,726 Number of Patents filed Number of Patents issued Number of License agreements and License options Annual Report 5 79

48 Board of Trustees Meeting - Approval of 2014 Maine Economic Improvement Fund (MEIF) Annual Report Strategic Outcomes, Goals and Metrics In summary, revenue from the commercialization of intellectual property has decreased over the last several years. Commercialization in Maine often relies on companies licensing UMS intellectual property to secure private equity investment to advance technology into markets. General trends in venture capital and private equity investments are slowly rebounding in Maine, and companies are starting to see new equity investments. In addition, UMS technologies generally fall into categories such as transportation infrastructure, pulp and paper, sensors and biotechnology. These sectors have been slower to rebound post-recession, and timelines from lab to market can take five 10 years. UMS is focusing additional effort to accelerate the commercialization with private-sector partners and programs, such at the Maine Technology Institute and the Maine Venture Fund. C. MEIF Target 3 (derived from UMS Research and Economic Development Target 4) The UMS annual revenue from activities with business and industrial partners in the MEIF sectors increases from an FY13 baseline of $3.15 million to $6.75 million by FY17, and the number of business and industry contracts in the MEIF sectors will increase from a baseline of 400 in FY13 to 450 in FY17. Table 3 MEIF TARGET 3 Business and Industry Contracts FY13 FY14 baseline Revenue from Business and Industrial Contracts $3,150,000 $4,371,999 Number of Business and Industrial Contracts In summary, many MEIF investments not only leverage external grants and contracts, but through a combination of MEIF funds, and grant and contract funds, have helped UMS campuses build capacity to work directly with industry partners. Some industry partners will be companies licensing and commercializing UMS intellectual property, while many companies are working with UMS campuses to get assistance with solving their problems or perfecting their inventions and innovations. UMS projects with business and industry continue to grow and activity is meeting the goals and metrics of this target. Figure 2. below demonstrates the statewide nature of these partnerships for those contracts that are currently tracked. Many additional companies, inventors and entrepreneurs receive advice and guidance, but do not result in formal contracts. 6 Maine Economic Improvement Fund 80

49 Board of Trustees Meeting - Approval of 2014 Maine Economic Improvement Fund (MEIF) Annual Report Figure 2. UMS Industry Partnerships Annual Report 7 81

50 Board of Trustees Meeting - Approval of 2014 Maine Economic Improvement Fund (MEIF) Annual Report Strategic Outcomes, Goals and Metrics D. MEIF Target 4,, Support R&D Workforce Development UMS shall maintain a concerted effort to involve faculty, staff and students participating in research, development and commercialization, and shall report annually the number of employees directly supported by MEIF funds and by grants and contracts in the MEIF sectors. As external funding is hard to predict, there is no specific numerical goal for employee count, but UMS shall report the annual number of faculty, staff and students to indicate trends and identify opportunities for growth. Table 3 MEIF Target 4 Workforce Development # of employees # of employees Totals where wages were where wages were paid by MEIF paid by from grants/contracts Number of faculty staff supported (FTE=full-time equivalent) Number of graduate students supported (headcount) 11.1 Number of undergraduate students Supported (headcount) Student costs from grants and contracts FY13 FY14 Student salaries and wages from grants and contracts $ 5,001,942 $ 4,877,650 Student tuition paid by grants and contracts 952, ,781 Student fellowships paid by grants and contracts 236, ,400 Student health insurance paid by grants and contracts 167, ,848 Total soft money student support $ 6,358,941 $ 6,217,679 In summary, state economic analysis predicts economic growth in Maine based on an available trained and educated workforce. Growth in the seven MEIF sectors is especially dependent on the available workforce. MEIF seven sector projects within UMS rely on regular faculty and staff, as well as many soft money employees those hired to work on specific grants and contracts, and paid by those grant and contract funds. UMS employees and students gain valuable on-the-job training and experience, and may then contribute to the employment base within these sectors after completion of the grants or graduation. Grant and contract revenue is a strong contribution to this workforce development. UMS counts employees involved in this activity and will continue to pursue the growth in employment numbers related to growth in grant and contract activity. Non-student employees are tracked as full-time equivalents (FTEs) based on a 40 hour, 52-week work year. Student employees are tracked by headcount, generally work less than 20 hours per week during the academic year. Grant and contract revenue is also an important source of funding for student salaries, tuition and other types of support, allowing many research-active students to offset their cost of education while getting valuable skills and on the job experience. 8 Maine Economic Improvement Fund 82

51 Board of Trustees Meeting - Approval of 2014 Maine Economic Improvement Fund (MEIF) Annual Report MEIF Success Stories By leveraging MEIF funds, the University of Maine System has attracted more than $44 million in FY14 in federal and private-sector grants and contracts related to the seven strategic research areas. This funding directly results in work solving some of Maine most challenging problems and developing solutions, products and technologies, which benefits Maine s industries, communities and future workforce our students. Examples of FY14 MEIF seven sector projects from our campuses follow. n UMaine Grad Student Researching Effects of Weather on Sap Flow Understanding more about the relationship between weather and maple sap flow, and how Maine syrup producers will adapt to changes in growing conditions is the focus of research being conducted by a University of Maine in Orono graduate student. Jenny Shrum, a Ph.D. candidate from Maine in the ecology and environmental sciences program in the UMaine School of Biology and Ecology, is attempting to unravel the biophysical relationships between weather and sap flow to help processes and harvesters in the future. umaine.edu/news/blog/2014/02/13/making-sense-of-maple-syrup 11.1 Jenny Shrum is a Ph.D. student in UMaine s School of Biology and Ecology. ADVANCED TECHNOLOGIES FOR FORESTRY AND AGRICULTURE n Partnering with Maine Industry: Maple Syrup The University of Maine in Orono is helping ensure that the beloved syrup of New England is safe from mycotoxins, including those created in the storage process. The research has included an independent project by third-year food science student Kaitlyn Feeney of Hermon, Maine. Her work in the Food Chemical Safety Laboratory, directed by Assistant Research Professor Brian Perkins, is part of UMaine s ongoing efforts to develop testing methods for syrup safety. umainetoday.umaine.edu/archives/spring-2014/how-sweet-it-is/syrup-safety n Industry Collaboration Two new potato varieties Easton and Sebec have been developed by the University of Maine in Orono in partnership with the Maine Potato Board. The Easton was developed as a new french fry processing potato variety. The Sebec variety is expected to primarily be used for potato chip production in growing areas that currently rely on the standard chipping variety, Atlantic. Easton and Sebec are the first new varieties to be released by the University of Maine as a result of 10 years of potato breeding and growing trials to optimize these varieties to meet Maine s potato growers and processors needs. Funds from MEIF, the U.S. Department of Agriculture and the Maine potato industry (represented by the Maine Potato Board) support the potato breeding program, led by Greg Porter, professor of plant, soil and environmental sciences, and agronomy, and centered at the Aroostook Farm in Presque Isle. The Easton variety is named after a northern Maine town in Aroostook County that is in the heart of Maine s most intensively cropped potato production area; the Sebec variety is named for a lake in Piscataquis County. Several other potato varieties are being evaluated for commercialization. New varieties are licensed for commercial production. Royalties from 2014 Annual Report 9 83

52 Board of Trustees Meeting - Approval of 2014 Maine Economic Improvement Fund (MEIF) Annual Report STUDENT ACHIEVEMENT Connecting the dots Growing up, Kathleen Crosby always played with her food. I just wanted to experiment, says the fourth-year University of Maine student from Georgetown, Maine, a food science and human nutrition major. In her first year at UMaine, Crosby learned about the seafood research of UMaine food scientist Denise Skonberg and joined her lab. I grew up on the coast, and my dad s a lobsterman, so I said, I have to get in on this. In the lab, Crosby has been mentored by Skonberg and doctoral graduate student Brianna Hughes, who received her degree in May and is now a product development specialist with Ocean Spray. This past summer, Crosby interned with FMC Corporation in Rockland, Maine, a leading seaweed-based business that produces carrageenan. Because of her undergraduate research experience, Crosby was familiar with many of the instruments and had the skills to work in quality assurance, quality control and chemical analysis. I really liked that, working in a real lab and seeing how much your work means in the food industry, she says. In this, her senior year, Crosby is on a capstone project team developing a new product called Pretzel Craves that features a cranberry dough. When she graduates, Crosby hopes to work in food quality assurance or quality control and, ultimately, product development. successful commercialization will be used by the University of Maine and the Maine Potato Board to support the potato breeding program. The University of Maine has the research and development capability and commitment for developing new potato varieties, from the lab to the field, which takes years. They understand what the growers and the industry are looking for and need. We, in turn, as a board, have the capacity to promote the varieties and maintain the quality of seed certification required for the integrity of the variety and the market. We are already fielding questions from growers around the country, as well as in Maine. Both of these new potato varieties are very promising. This type of result is what makes this partnership truly advantageous for the future of our industry. Don Flannery, executive director of the Maine Potato Board n Reaching Across the State to Support Maine Agriculture With facilities in Orono, experiment stations throughout the state and Cooperative Extension staff in every Maine county, the University of Maine is uniquely positioned to support and expand Maine s agricultural opportunities. Perhaps one of the strongest examples is the development and expansion of Maine s wild blueberry sector. Blueberry Hill Farm in Jonesboro is the only university-based wild blueberry research facility in the nation. Research and development at the farm, together with on-campus research on new blueberry products and health benefits, have been a driving factor in the recent expansion of Maine s wild blueberry industry. Thanks to comprehensive crop production research and development based at the University of Maine, Maine s Wild Blueberry growers are leaders in the development and adaptation of knowledge-based cropping systems. Wild Blueberry Commission of Maine COMPOSITES AND ADVANCED MATERIALS TECHNOLOGIES n R&D and Commercialization Partnership at Work The University of Maine s Modular Ballistic Protection System saved lives inside the United States consulate during a September 2013 attack in Afghanistan s Herat province, Maine Economic Improvement Fund 84

53 Board of Trustees Meeting - Approval of 2014 Maine Economic Improvement Fund (MEIF) Annual Report according to a U.S. State Department official, who notified Tex Tech Industries (TTI), the commercial manufacturer of the ballistic panels located in Monmouth, Maine, of the news. University researchers have continued to develop and improve the ballistic panels for use in military tents with various functions, shapes and sizes. UMaine students, including veterans who served in Afghanistan and Iraq, assist the researchers. Now Tex-Tech Industries, a Monmouth, Maine company, is developing partnerships with other state-based companies and working to sell the UMaine invented ballistic panels to agencies and corporations that have employees in high-risk locations worldwide. umainetoday.umaine.edu/archives/spring-2014/lifesaving-rd AQUACULTURE AND MARINE SCIENCES n Testing Water University of Maine researchers have designed a handheld device that can quickly detect disease-causing and toxinproducing pathogens, including algal species that can lead to paralytic shellfish poisoning. The device a colorimeter could be instrumental in monitoring coastal water in real-time, thereby preventing human deaths and beach closures, says lead researcher Janice Duy, a recent graduate of UMaine s Graduate School of Biomedical Science and Engineering. University of Maine s Graduate School of Biomedical Science and Engineering (GSBSE) is a unique graduate program that includes the University of Maine in Orono as the Ph.D.- granting institution and five cooperating academic and research institutions in the state Jackson Laboratory, Maine Medical Center Research Institute, Mount Desert Island Biological Laboratory, University of Southern Maine, and University of New England College of Osteopathic Medicine. umainetoday.umaine.edu/archives/spring-2014/quality-data n Studying Impact to Fish and Lobsters of Rising Ocean Temperatures A $1.8 million National Science Foundation (NSF) grant will allow a multidisciplinary team of researchers to examine the impact of rising ocean temperatures on Gulf of Maine ecology and economics. Led by Andrew Pershing from the University of Maine and Gulf of Maine Research Institute in Portland, Maine, the team will conduct a four-year project as part of the NSF s Coastal SEES (Science, Engineering and Education for Sustainability) Initiative. This information will improve the State s ability to predict stocks that directly related to management of commercial harvests. INFORMATION TECHNOLOGIES n Concept to Reality: Providing Creative Resources to UMaine and the Community University of Maine s Innovative Media Research and Commercialization (IMRC) Center opened in a renovated and repurposed dining hall on Jan. 9, Students and other Maine entrepreneurs work in the center and use its resources, including state-of- the-art equipment, professional expertise and mentoring, and technical support in creative production and prototyping. The goal of the IMRC Center is to re-envision creative teaching, learning and research, linking new media and innovative problem solving with science and technology. This project was funded in part by a Maine Technology Asset Fund award from the Maine Technology Institute. n Cyber Security The Maine Cyber Security Cluster at the University of Southern Maine (USM), along with the University of Maine at Fort Kent (UMFK) and the York County Community College (YCCC) are implementing an inter-institutional Virtual Cybersecurity Collaborative Learning Laboratory (VCCLL) as a shared educational environment that allows Maine students from highly varied geographic locations to gain practical collaborative experience in preventing and mitigating cyberattacks in real time over a protected network. Funded by NSF, VCCLL combines technological problem solving, ethical training, and strategic communications opportunities for students in a unique and currently topical setting where students must identify and resolve cyber-security exploits across Maine. Inter-institutional collaborations of this type are rare and promise to yield novel research findings, as well as tangible advantages to Maine s students. Recently, the U.S. National Security Agency and Department of Homeland Security designated Maine s public universities collectively as a Center for Academic Excellence in Information Assurance Education, a distinction that has been given to about 130 individual institutions, but never before a full university system. n Web-Based Systems to Support Disadvantaged Populations The overarching aim of this interdisciplinary research cluster is to foster resilience for disadvantaged populations by providing avenues for safe social interaction and educational activity using innovative online environments. This aim is undergirded with well-established knowledge that social isolation is a barrier to life success and individuals are best poised to grow and succeed educationally, economically, and socially when provided with high-quality mentoring, support, social attention and Annual Report 11 85

54 Board of Trustees Meeting - Approval of 2014 Maine Economic Improvement Fund (MEIF) Annual Report STUDENT ACHIEVEMENT From intern to manager Recent University of Maine business school graduate Emma Wilson spent most of FY14 her senior year working as an intern for a small Orono business as part of the Blackstone Accelerates Growth Innovate for Maine Fellows Program offered through UMaine s Foster Center for Student Innovation. Wilson, of Greenville, Maine, says she applied for the internship program because she knew it helped local startups and taught students about innovation. She was placed with Zeomatrix, a start-up business focused on bringing UMaine s patented zeolite technology in odor-absorbing paper products to market. As an intern, she was in charge of handling the launch of the Zeo Litter Bag a compostable paper bag made with the company s proprietary zeolite technology that absorbs the odor of used cat litter and cat waste. The bag is also biodegradable and better for landfills, she says. Wilson has continued on as an employee of the company as she works on accelerating the growth of this product line. Innovate for Maine internships are one facet of Blackstone Accelerates Growth (BxG), an outreach effort to create and sustain jobs and economic development in Maine by supporting entrepreneurship and innovation. connection, and learning opportunities. Through creatively crafted and delivered Web-based environments tailored to the needs and interests of specific disadvantaged populations, we are also supplied with rich data to study site usage patterns and discourse to inform both best practices and future developments. The interdisciplinary perspectives of this research cluster and our work with a range of USM students has culminated in a unique brand of synergistic expertise in creating Web-based systems to reach and support people who may otherwise lack essential life opportunities, and we are currently developing our own research cluster website for promoting and marketing our knowledge and skills to other potential clients. This group has been afforded the resources to build our capabilities in this unique area, engage students in applied activities to enhance their educations, and establish working community partnerships toward the goal of promoting social, educational and economic successes of populations facing adverse life challenges. usm.maine.edu/research/disadvantaged-populations 11.1 ENVIRONMENTAL TECHNOLOGIES n Maine Tidal Power Initiative s Latest Research and Collaboration The University of Maine is one of 15 recipients splitting $16 million from the U.S. Department of Energy to fund projects related to efficiently capturing energy from waves, tides and currents. The UMaine initiative is one of seven Environmental Monitoring of Marine and Hydrokinetic Projects under the funding. The $494,000 UMaine project received $394,000 from the Department of Energy to use data on fish interactions with Ocean Renewable Power Company s TidGen Power System in Cobscook Bay, Maine, to predict the probability of fish naturally encountering deployed energy devices. The projects are expected to increase the power production and reliability of wave and tidal devices, and help collect data on how deployed devices interact with the surrounding environment. The research also will aid in understanding the effects of marine and hydrokinetic devices on local fish populations, says principal investigator Gayle Zydlewski, associate professor and researcher in the UMaine School of Marine Sciences and member of the Maine Tidal Power Initiative. Maine Tidal Power Initiative members include representatives from the University of Maine, Maine Maritime town of Wiscasset and the U.S. Army Engineer R&D Center. A full listing is here: umaine.edu/mtpi/partners-collaborators umainetoday.umaine.edu/archives/fall2013urrent-events umaine.edu/news/blog/2014/10/08/emma-wilson-from-intern-tomanager/ 12 Maine Economic Improvement Fund 86

55 Board of Trustees Meeting - Approval of 2014 Maine Economic Improvement Fund (MEIF) Annual Report MEIF Success Stories n Attracting Maine Students STEM Empowering female and minority high school students, their teachers and communities to create innovative hands-on solutions to the environmental problems related to stormwater management is the goal of a three-year project at the University of Maine, funded by the National Science Foundation (NSF). The goal is to attract students in the engineering field to STEM education by investigating innovative and cost-effective solutions to local stormwater problems. The project will also produce new watershed maps and management plans for several streams that will lead to improved water quality. Using the tools of engineering technology, real-time data management and Web-based digital mapping, students will be directly involved in every project stage from design of water-quality sensing units to implementation of community outreach programs about stormwater pollution issues. Mohamad Musavi, UMaine associate dean of the College of Engineering and professor of electrical and computer engineering, and principal investigator of the project. Participating Maine High Schools include Bangor High School, Edward Little (Auburn), Bangor, Auburn, Hampden Academy, Orono High School, Casco Bay High School, Portland, Deering High School, Washington Academy, Machias, Shead High School, Eastport, and Calais High School. UMaine lead students: Ph.D. student Joel Castro, Old Town, Maine, Joshua Kovach, Woodland, Maine, Wendeline Choiniere, Brunswick, Maine. umaine.edu/news/blog/2013/09/18/education-empowerment n UMaine s offshore wind energy research and development initiatives With funding from the Maine Technology Institute and the U.S. Department of Energy, the University of Maine s Advanced Structures and Composites Center is leading the effort to enable cost-effective measurements of hub-height wind speeds in deepwater where fixed-based towers are not feasible. The patent-pending DeepCLidar is a buoy mounted LiDAR system, which is a remote sensing technology that measures the speed of the wind at various heights above the buoy by illuminating a particles in the air with a laser and deterring their speed by analyzing the reflected light. The first very successful sea trials of this buoy were complete during FY14 and next stages of commercial development and production are planned for FY15. umainetoday.umaine.edu/archives/fall-2013/winds-of-change/cost-effectivemeasurements PRECISION MANUFACTURING n A Shingle Every Second Ecoshel, a company that produces cedar shingle panels, has opened a new factory in Ashland Maine. Ecoshel engaged the University of Maine s Advanced Manufacturing Center (AMC) to develop Smart Shingle Production System. AMC, along with private and public partners, designed, developed and built a prototype manufacturing assembly line for the company. The line, which includes custom manufacturing equipment, blends conventional woodworking systems with state-of-the-art controls and laser-scanning technology. The Ecoshel project created more than 11 jobs and provided a learning experience for UMaine engineering students. Bryan Kirkey, owner and CEO of Ecoshel, was referred to AMC by the Maine Technology Institute to pursue his goal of having a cutting-edge manufacturing facility in Maine. AMC collaborated with private industry partners such as Dana Hodgkin, owner of Manchester, Maine-based Progress Engineering as part of the design, engineering and prototyping team. AMC plays this role for many Maine companies, developing new products and precision manufacturing systems. umaine.edu/news/blog/2014/06/25/a-shingle-every-second n Building Innovation: Manufacturing Partnership Since 2010, the University of Maine s Advanced Manufacturing Center (AMC) and University of Southern Maine s Manufacturing Applications Center (MAC) have developed a seamless partnership, providing access to University of Maine System resources that assist hundreds of technical companies and entrepreneurs in the state develop their technology and engineering concepts. Both AMC and MAC excel at hands-on assistance by taking real ideas and commercializing them into viable products that benefit manufacturing in the state. The partnership s impact on industry has grown immensely after Maine Technology Institute (MTI) awarded the AMC/MAC partnership an MTI Cluster Development Program Grant to expand activities. Today, hundreds of clients develop new technologies, proof of concepts, prototypes, manufacturing processes, business plans and market research with the help of UMaine and USM. Partners include: Manufacturers Association of Maine, Maine Manufacturing Extension Partnership, Eastern Maine Development Corporation, Northern Maine Development Commission, University of Maine faculty and staff, Biotech Association of Maine, Maine industry partners, Robotics Institute of Maine, STEM Coalition of Maine and Maine Center for Entrepreneurial Development Annual Report 13 87

56 Board of Trustees Meeting - Approval of 2014 Maine Economic Improvement Fund (MEIF) Annual Report SMALL CAMPUS INITIATIVE RESEARCH Soft-shell clam research at the University of Maine at Machias The FY14 Small Campus Initiative (SCI) awards were focused mostly in southern Maine, in Cumberland County, and examined strategies for growing and raising soft-shell clams, Mya arenaria, that were produced at the Downeast Institute (DEI) University of Maine at Machias (UMM) Marine Field Station. The work focused on finding new strategies for managing both wild and cultured clam seed in an environment under severe predation pressure from invasive green crabs, whose populations have exploded recently due to warming trends in seawater temperatures. UMM and DEI are collaborating with a private company, Stewards of the Sea LLC and the town of Freeport, Maine to examine effects of: sediment buffering on wild clam recruitment; presence of adult soft-shell clams on wild clam recruitment; the combined effect of fencing and netting on growth and survival of cultured clam seed, as well as wild clam recruitment; and the effect of stocking density on cultured clam growth and survival. In addition, two other projects focused on learning about the dynamics of green crabs in selected areas of the upper and lower Harraseeket River in Freeport, and demonstrating the utility of rearing soft-shell clam seed to clammers and local elected officials using a bivalve nursery upweller. The work leveraged a $350,000 grant from the National Marine Fisheries Service, Saltonstall- Kennedy program that will extend the program through downeastinstitute.org/2014-field-trials.htm BIOTECHNOLOGY n How Common Pathogens Become Killers How does a normally peaceful agent break through a previously impenetrable barrier and become a potential killer? This year, Robert Wheeler received a five-year, $500,000 fellowship from the Burroughs Wellcome Fund to figure that out. The University of Maine Assistant Professor of Microbiology will study how and why Candida albicans the most common human fungal pathogen transforms from an innocuous yeast in the digestive tract of a person with a healthy immune system to a potentially fatal fungus in vital organs of a person whose immune system has been compromised. Wheeler is one of 12 scientists nationwide to receive the 2014 Investigators in the Pathogenesis of Infectious Disease Award. umaine.edu/news/blog/2014/06/03/breaking-barriers n Health Analytics and Health System Transformation Maine is on the cutting edge for many health data developments, including having the only operational, statewide Health Information Exchange, and one of the first all-payer claims data warehouses. UMS s Research Cluster will tackle challenges to data access and operability, and other big data problems in health care delivery, financing and population health. Because of their participation in this cluster, four students and several faculty were recruited to become members of the Healthcare Data Warehousing Association (HDWA), a national healthcare data organization, and offered complimentary registrations to HDWA s annual conference which was held in Portland this year. Through this conference, students and faculty had the opportunity to network with, and learn from, national and local leaders in health data analytics who are at the forefront of developing solutions for healthcare data needs. INNOVATION AND ENTREPRENEURSHIP n Gordan Lamp Headed to Commercialization The Gorham Lamp is a benchtop and microscope illumination system currently in second-stage prototype development at University of Southern Maine. Joseph Staples has been able move this project from rough proof of concept to a marketable technology that has already generated inquiry from commercial entities. Bids are currently being soliciting bids from local contract manufactures to develop commercial grade demonstration models that will be used to assess user reaction to this technology and to attract potential licensees. This project represents the potential for innovation that exists in laboratories and other facilities throughout the UMaine System and is an excellent example of Maine investing in Maine Maine Economic Improvement Fund 88

57 Board of Trustees Meeting - Approval of 2014 Maine Economic Improvement Fund (MEIF) Annual Report 3SUCCESS By leveraging MEIF funds, UMS has attracted more than $250 million in federal and private-sector grants and contracts related to the seven strategic research areas. This funding directly results in Maine products and technologies such as biofuels, pulp and paper products, new potato varieties, aquaculture technologies and software that lead to improvements in Maine s industries RETURN ON INVESTMENT Each year, the state s MEIF appropriation is matched by tens of millions of dollars in federal and private funds for important university research. UMaine as the state of Maine s land grant institution utilizes its longestablished research capacity and infrastructure to attract the majority of these matching funds. Other UMS schools continue to build and partner in federal and private-sector grants and contracts. STRATEGIC IMPACT In the MEIF s most recent five-year period, $341 million was received to perform research and development related to the targeted areas. CREATING JOBS More than 1,300 full-time equivalent jobs are funded annually in Maine through funds leveraged and expended related to MEIF. These positions include faculty, graduate assistantships, undergraduate students involved in research, and other key staff. Rockweed research at Maine Maritime Academy Maine Maritime Academy s FY14 MEIF-SCI award is investigating the importance of surplus reproductive material of the two most abundant intertidal rockweeds to nearshore marine environments. In addition, laboratory studies have been examining the response of rockweed reproductive materials on the commercially important blue mussel. During the first year of the grant, field sampling was conducted across three study locations in the Gulf of Maine: Holbrook Island in Penobscot Bay, Schoodic Peninsula in Frenchman s Bay and Great Wass Island in Western Bay. Laboratory experiments have been completed at Maine Maritime Academy (MMA) and at the Down East Institute Marine Field Station in Beals. Preliminary results of feeding trials using Ascophyllum reproductive material with juvenile mussels showed significantly more growth (metric=shell length) in treatment diets (phytoplankton and a pulse of sperm, egg, or zygote) compared to a control diet of only phytoplankton. Seasonal field sampling of macroinvertebrates has been completed for stable isotope food web characterization and the data are being processed currently. This research has fostered scientific collaboration between MMA, Brian Beal at UMM and the University of Texas at Austin (Dr. Kenneth Dunton, a UMaine alum). It also supported undergraduate research experiences for MMA student Sarah Brochu of Hardwick, Vermont, and UMM students Melissa Burnham of South Portland and Anna Davis of South Addison. Characterizing the timing of reproduction (phenology) of the harvested rockweed, Ascophyllum nodosum, has also led to collaboration between MMA and rockweed business Source Maine, Inc., in Brunswick Annual Report 15 89

58 Board of Trustees Meeting - Approval of 2014 Maine Economic Improvement Fund (MEIF) Annual Report Appendix 1 UMS Intellectual Property Table A1-1 University of Maine System New Patent Applications Filed FY14 Title Application Type Filing Date BIODEGRADABLE MATERIALS AND METHODS OF MAKING THE SAME United States 24-Sep-2013 RADIO-FREQUENCY IONIZATION OF CHEMICALS PCT 13-Sep-2013 POLYMERIC COMPOSITE MATERIALS AND METHODS OF MAKING THEM PCT 30-May-2014 EXTRACTION OF LIGNOCELLULOSICS FOR PRODUCTION OF FIBERS AND A PRECIPITATE-FREE HEMICELLULOSE EXTRACT PCT 7-Feb-2013 MODIFIED PREHYDROLYSIS-KRAFT PULPING WITHOUT FORMATION OF STICKY LIGNIN IN THE PRE-HYDROSATE US Provisional 17-Sep-2013 IMPROVED METHODS OF CANCER DETECTION PCT 23-Apr-2014 CELLULOSE NANOFIBRILS REINFORCED POLYPROPYLENE NANOCOMPOSITES: MECHANICAL AND MORPHOLOGICAL PROPERTIES US Provisional 18-Jul SYSTEMS AND METHODS FOR INTERFERENCE MITIGATION IN PASSIVE WIRELESS SENSORS US Provisional 29-Aug-2013 SYNTHESIS OF BACTERIAL CELLULOSE IN LOW-COST CULTURE MEDIUM USING HOT WATER EXTRACTED WOOD SUGARS US Provisional 12-Mar-2014 WIND TURBINE TOWER ASSEMBLY AND CONSTRUCTION METHOD US Provisional 28-Feb-2014 WIND TURBINE PLATFORM MOORING AND CONSTRUCTION US Provisional 6-Feb-2014 POTATO AF (EASTON) US Plant 7-Jan-2014 POTATO AF (SEBEC US Plant 7-Jan-2014 FLOATING WIND PLATFORM AND CONTROLS US Provisional 24-Sep-2013 COMPOSITE STRUCTURAL MEMBER United States 3-Sep-2013 REMOTE WIND RESOURCE ASSESSMENT US Provisional 8-Dec-2013 COATING FORMULATION TO DEVELOP MICRON SIZED LASER INDUCED 3-D FLUORESCENT ACTIVE STRUCTURE US Provisional 13-Aug-2013 ILLUMINATION SYSTEM (USM) US Provisional 12-Aug Maine Economic Improvement Fund 90

59 Board of Trustees Meeting - Approval of 2014 Maine Economic Improvement Fund (MEIF) Annual Report Table A1-2 University of Maine System Patents Issued FY14 Title Patent No. Issue Date RING GRATING SPECTROMETER 8,717,560 6-May-2014 THERMOPLASTIC COMPOSITES CONTAINING LIGNOCELLULOSIC MATERIALS Europe 12-Feb-2014 EDGE REINFORCEMENT OF STRUCTURAL PANELS KEEPS OUT MOISTURE Canada 11-Feb-2014 PROCESS FOR PRODUCING CARBON NANOTUBES AND CARBON NANOTUBES PRODUCED THEREBY Jan-2014 COATED WOOD PRODUCTS FOR BALLISTIC RESISTANCE Dec-2013 METHOD OF FORMING A COMPOSITE STRUCTURAL MEMBER Nov-2013 COMPOSITE STRUCTURAL MEMBER Sept-2013 CONTAINER SECURITY SYSTEM WITH CONDUCTIVE GRIDS AND BYPASS RESISTORS July SHEET PILING FOR RETAINING WALLS WITH COLUMNAR VOIDS Canada 7-July-2013 PROCESS OF TREATING A LIGNOCELLULOSIC MATERIAL WITH AN ALKALI METAL BORATE PRE-EXTRACTION STEP July-2013 USE OF PROLINES FOR IMPROVING GROWTH AND/OR YIELD Oct-2013 USE OF PROLINES FOR IMPROVING GROWTH AND/OR YIELD LITH and LATV 27-Mar-2014 TRANSGENIC PLANTS HAVING ENHANCED GROWTH CHARACTERISTICS\N MEXI 29-Nov-2013 TRANSGENIC PLANTS HAVING ENHANCED GROWTH CHARACTERISTICS\N NEWZ 3-Sep Annual Report 17 91

60 Board of Trustees Meeting - Approval of 2014 Maine Economic Improvement Fund (MEIF) Annual Report Appendix 2 MEIF Financial Tables Table A2-1 FY2014 Maine Economic Improvement Fund A HISTORY OF LEGISLATIVE ACTIONS ON APPROPRIATING STATE RESEARCH FUNDS The following is a summary of the actions of the 118th 126th (first regular session) Maine Legislature with regard to appropriating research and development funds to the University of Maine System 118th LEGISLATURE March 26, 1997: Governor signed into law the Economic Improvement Strategy (Chapter 24) that appropriated $500,000 to UMS for research. April 1, 1998: Governor signed into law the Economic Improvement Strategy (Chapter 643, Part LL, Sec. S-3) that appropriated $4 million to UMS for research. These funds were allocated from the FY98 year-end State surplus for use in FY th LEGISLATURE March 15, 1999: Governor signed into law the Part I Current Services budget (Chapter 16) that appropriated $4 million in and to UMS on a base budget basis for research. This extends the one-time FY99 $4 million research appropriation that was funded from the FY98 year-end state surplus. June 4, 1999: Governor signed into law the Part II Supplemental Appropriation budget (Chapter 401) that appropriated an additional $5.55 million in and an additional $50,000 in to UMS on a base budget basis for research. April 25, 2000: Governor signed into law the Part II Supplemental Appropriation budget (Chapter 731) that appropriated $300,000 in to UMS on a base budget basis for the Maine Patent Program. 120th LEGISLATURE June 21, 2001: Governor signed into law the Part II Supplemental Appropriation budget (Chapter 439) that appropriated an additional $2 million in to UMS on a base budget basis for research. March 25, 2002: Governor signed into law a deappropriation (Chapter 559) that reduced the FY03 $2 million Supplemental Appropriation by $1 million. July 1, 2002: Governor signed a Financial Order that curtailed the FY03 $2 million Supplemental Appropriation by an additional $1 million. This eliminated the FY03 increase of $2 million for research, bringing the FY03 research and development appropriation back to the FY02 level of $10.1 million. November 18, 2002: Governor signed into law a Supplemental Appropriation budget (Chapter 714) that deappropriated the $1 million curtailment that was signed July 1, st LEGISLATURE March 27, 2003: Governor signed into law the Part I Current Services budget (Chapter 20, Part RR) that appropriated $100,000 in and on a base budget basis for research. January 30, 2004: Governor signed into law a Supplemental Appropriation budget (Chapter 513, Part P, Sec. P-2) that includes a provision to transfer to MEIF up to $2 million of any unbudgeted State revenue remaining at the close of FY04. The full amount was subsequently transferred to UMS. This same Chapter 513, Part P, Sec. P-3 made the $2 million part of the MEIF FY05 base appropriation. 122nd LEGISLATURE March 29, 2006: Governor signed into law a Supplemental Appropriations budget (Chapter 519, Part A, Sec. A-1) that includes providing one-time funding of $600,000 in FY07 for the commercialization of research and development activity, and for the Gulf of Maine Ocean Observing System. 123rd LEGISLATURE June 7, 2007: Governor signed into law a budget (Chapter 240, Part A, Sec. A-68) that provides an increase of $1.5 million in FY08 and an additional $1 million in FY09 on a base budget basis for research. 124th LEGISLATURE May 28, 2009: Governor signed into law a budget (Chapter 213, Part A, Sec. A-67) that maintains the annual funding at the FY09 level of $14.7 million. 125th LEGISLATURE June 15, 2011: Governor signed into law a budget (Chapter 380) that maintains the annual funding at $14.7 million. May 29, 2012: PUBLIC Law (Chapter 698) creates the formula funding for the Small Campus Initiative, reserving a percentage of MEIF exclusively for the five smaller campuses of the University of Maine System. 126th LEGISLATURE June 10, 2013: Governor signs into law (Chapter 225) an amendment to the MEIF statute to include Maine Maritime Academy as a MEIF eligible small campus. June 26, 2013: Legislature approves into law a budget (Chapter 368) that maintains the annual funding at $14.7 million Maine Economic Improvement Fund 92

61 Board of Trustees Meeting - Approval of 2014 Maine Economic Improvement Fund (MEIF) Annual Report 11.1 Table A Annual Report 19 93

62 Board of Trustees Meeting - Approval of 2014 Maine Economic Improvement Fund (MEIF) Annual Report 11.1 Table A Maine Economic Improvement Fund 94

63 Board of Trustees Meeting - Approval of 2014 Maine Economic Improvement Fund (MEIF) Annual Report 11.1 Table A Annual Report 21 95

64 Board of Trustees Meeting - Approval of 2014 Maine Economic Improvement Fund (MEIF) Annual Report Table A2-5 FY2014 Maine Economic Improvement Fund UMS STATE-FUNDED RESEARCH TIMELINE The following is a timeline of the MEIF and other state-funded research at the University of Maine System. Note: Bond funds are used for facility upgrades, construction and equipment purchases in accordance with state bonding requirements November 3, 1998: Maine voters approved a $20 million bond issue to improve the Maine economy by supporting innovative research and development. UMS received $13.5 million from this bond for capital improvements and equipment purchases to support research and development. The bond proceeds were distributed between UMaine ($10.8 million) and USM ($2.7 million). June 4, 1999: Governor signed into law the Part II Supplemental Appropriation budget (Chapter 401) that appropriated $2.5 million in to UMS on a base budget basis to pay the debt service on a $25 million university R&D revenue bond. The university issued the revenue bond Aug. 15, It provides $20 million for the UMaine Engineering Science Research Building and $5 million for the USM Portland Science Building Lab Renovation. April 25, 2000: Governor signed into law a one-time supplemental appropriation (Chapter 731) that appropriated $9 million for the renovation of teaching laboratories and classrooms in Aubert Hall at UMaine. June 11, 2002: Maine voters approved a $35 million bond issue to be used in part to stimulate job growth. UMS received $9 million, with the bond proceeds distributed to UMaine ($5 million) for the Advanced Manufacturing Center and to USM ($4 million) for the Mitchell Center. June 10, 2003: Maine voters approved a $60 million bond issue to be used to stimulate job creation and economic growth. UMaine and USM received a combined $15 million to support their research efforts, $3.6 million of which was matching funds for MEIF R&D projects. November 8, 2005: Maine voters approved a $20 million bond issue to be used to stimulate economic growth and job creation. UMaine received $3 million for the development of the Laboratory for Surface Science and Technology, and renovations associated with the Graduate School of Biomedical Sciences. Maine voters also approved an $8.9 million bond related to agriculture and the environment. UMaine received $800,000 for improvements to the Witter Teaching and Research Farm. November 6, 2007: Maine voters approved a $50 million research, development and commercialization bond for facilities and equipment to support the sectors of Maine's economy designated by the Maine Legislature in MEIF legislation. The 2007 bond created the Maine Technology Asset Fund (MTAF), with awards going to Maine companies, universities and non-profit organizations following a peer-reviewed competitive process administered by the Maine Technology Institute. Through the first two rounds of the MTAF program (2008 and 2009), UMaine was awarded nine grants totaling $19.9 million to further support Maine research, development and commercialization efforts. The University of Maine at Presque Isle received a $96,800 grant to implement an information mapping and analysis facility. June 8, 2010: Maine voters approved an $11 million bond to create jobs through investment in the Maine off-shore wind energy research and development project, specifically a demonstration site and related advanced composites manufacturing to advance Maine's energy independence. The 2010 bond will leverage $24.5 million in federal funds. Note: for financial reporting purposes, the actual award took place in FY11. October 12, 2010: The Maine Technology Institute completed the third round of the Maine Technology Asset Fund (MTAF) competition, UMaine successfully competed for awards for five projects totaling $3.54 million Maine Economic Improvement Fund 96

65 Board of Trustees Meeting - Approval of 2014 Maine Economic Improvement Fund (MEIF) Annual Report CENTRAL STREET BANGOR, MAINE maine.edu 97

66 Board of Trustees Meeting - Establishment of the Edward Sturgis Grew Professorship of Petrology & Mineralogy, UM AGENDA ITEM SUMMARY 1. NAME OF ITEM: Establishment of the Edward Sturgis Grew Professorship of Petrology and Mineralogy, UM 2. INITIATED BY: James H. Page, Chancellor 3. BOARD INFORMATION: BOARD ACTION: X 4. BACKGROUND: The Edward Sturgis Grew Professorship in Petrology and Mineralogy is presented to the Board for approval. This professorship is supported by a generous gift of $250,000 to the University of Maine in 2014 to be paid in five annual installments from Dr. Edward Sturgis Grew. This non-endowed gift is an exception to Board of Trustees Policy Section 711 on Named Chairs and Professorships which stipulates that named professorships be endowed. 12 This gift enables the College of Natural Sciences, Forestry, and Agriculture to recruit a tenure-eligible faculty member in the School of Earth and Climate Sciences. This new faculty member will have a demonstrated ability to teach as well as conduct and publish outstanding research in igneous and/or metamorphic petrology, geochemistry and mineralogy, and will be part of the Geodynamics, Crustal Studies and Earth Rheology research group (or its successor entity) at the University of Maine. The Grew Professorship shall support salaries, benefits, travel expenses, and other needs related to the teaching, research, and service activities of the holder of the professorship. Nominations for the Edward Sturgis Grew Professorship shall be submitted to the Provost and then forwarded to the President of the University. The appointment shall be for a term of five years starting in the 2016 academic year. The fund shall be administered by the Dean of the College of Natural Sciences, Forestry, and Agriculture. 5. TEXT OF PROPOSED RESOLUTION: That the Board of Trustees approve the establishment of the Edward Sturgis Grew Professorship in Petrology and Mineralogy. 01/15/

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71 Board of Trustees Meeting - Establishment of the George J. Denton Professorship of Earth Sciences, UM AGENDA ITEM SUMMARY 1. NAME OF ITEM: Establishment of the George H. Denton Professorship of Earth Sciences, UM 2. INITIATED BY: James H. Page, Chancellor 3. BOARD INFORMATION: BOARD ACTION: X 4. BACKGROUND: The George H. Denton Professorship of Earth Sciences is being presented to the Board of Trustees for approval. This professorship is supported with generous gifts to the University of Maine totaling $250,000 with amounts to be received in 2015 and This non-endowed gift is an exception to Board of Trustees Policy Section 711 on Named Chairs and Professorships which stipulates that named professorships by endowed. This fixed-length professorship enables the College of Natural Sciences, Forestry, and Agriculture to recruit a tenure-eligible faculty member in the School of Earth and Climate Sciences to ensure the academic legacy in glacial geology and climate change established by George Denton. 13 The holder of the Denton Professorship of Earth Sciences will have a demonstrated ability to teach as well as conduct and publish outstanding research in earth sciences at the University of Maine. Nominations for the Denton Professorship of Earth Science shall be submitted by the Dean of the College of Natural Sciences, Forestry, and Agriculture to the Provost, who shall forward the recommendation to the President of the University of Maine for approval. The initial appointment to the named professorship shall be for five years. The President shall forward the name of the Denton Professor to the Board of Trustees on an annual basis. The fund shall be administered by the Dean of the College of Natural Sciences, Forestry, and Agriculture. 5. TEXT OF PROPOSED RESOLUTION: That the Board of Trustees approve the establishment of the George H. Denton Professorship of Earth Sciences. 01/15/

72 Board of Trustees Meeting - Establishment of the George J. Denton Professorship of Earth Sciences, UM

73 Board of Trustees Meeting - Establishment of the George J. Denton Professorship of Earth Sciences, UM

74 Board of Trustees Meeting - Academic Year Calendars for ACADEMIC CALENDARS UM UMA UMF UMFK UMM UMPI USM LAW SCHOOL FALL SEMESTER Orientation/Registration TBD 08/15 and 08/24 08/29-08/31 08/28-08/30 08/28-08/30 08/28-08/30 05/15-08/15 08/26-08/28 Classes Begin 08/31 08/31 09/02 08/31 08/31 08/31 08/31 08/31 Labor Day Holiday 09/07 09/07 09/07 09/07 09/07 09/07 09/07 09/07 Fall Break 10/12-10/13 10/12-10/13 10/12-10/13 10/12-10/13 10/12-10/13 10/12-10/13 10/12-10/13 10/12 Veterans Day Holiday 11/11 11/11-11/11 11/11 11/11 11/11 11/11 Thanksgiving Recess 11/25-11/27 11/25-11/27 11/25-11/27 11/25-11/27 11/25-11/27 11/25-11/27 11/25-11/29 11/26-11/27 Classes End 12/11 12/19 12/11 12/12 12/12 12/12 12/11 12/4 Final Examination 12/14-12/18 12/14-12/19 12/14-12/17 12/14-12/18 12/14-12/17 12/14-12/17 12/12-12/18 12/10-12/19 Winter Session TBD - 12/28-01/15 12/21-01/08 12/28-01/15 12/21/01/15 12/21-01/15 - SPRING SEMESTER Orientation/Registration TBD 01/13-01/14 01/18 01/15-01/17 01/19-12/15-01/16 11/9-11/13 Classes Begin 01/19* 01/19 1/20 01/19 01/20 01/19 1/19 01/11 Martin Luther King Day 01/18 01/18 01/18 01/18 01/18 01/18 1/18 01/18 Winter Break 02/29-03/11 02/15-02/19 02/15-02/19 02/15-02/19 02/15-02/19 02/15-02/19 02/ President's Day Holiday - 02/15 02/15 02/15 02/15 02/15 02/15 02/15 Spring Recess - 03/28-04/01 03/21-03/25 03/28-04/01 03/28-04/01 03/28-04/01 03/28-04/01 03/07-03/11 Maine Day- UM; University Day - UMPI 4/ / Classes End 4/29* 05/14 05/06 05/06 05/07 05/06 05/06 04/19 Final Examination 05/02-05/06 05/09-05/14 05/09-05/ /13 05/09-05/12 05/09-05/12 05/07-05/13 04/27-05/05 Commencement 05/14* 05/14 05/14 05/14 05/14 05/14 05/14 05/14 Convocation - Fall / SUMMER SESSION Multiple sessions at each university from May 7 to August 30 TBD 05/18-08/21 05/16-08/26 05/23-08/12 05/31-08/19 05/23-08/27 05/16-08/19 05/16-07/21 * final calendar approval in process 106

75 Board of Trustees Meeting - Academic Year Calendars for /15/

76 Board of Trustees Meeting - Academic Year Calendars for ACADEMIC CALENDARS UM UMA UMF UMFK UMM UMPI USM LAW SCHOOL FALL SEMESTER Orientation/Registration TBD 08/22-08/23 TBD 8/26-/28 08/26-08/28 08/26-08/28 05/15-08/15 08/ Classes Begin 08/29 08/30 08/29 08/29 08/29 08/29 08/29 08/29 Labor Day Holiday 09/05 09/05 09/05 09/05 09/05 09/05 09/05 09/05 Fall Break 10/10-10/11 10/10-10/11 10/10-10/11 10/10-10/11 10/10-10/11 10/10-10/12 10/10-10/12 10/10 Veterans Day Holiday 11/11 11/11 11/11 11/11 11/11 11/11 11/11 11/11 Thanksgiving Recess 11/23-11/25 11/23-11/25 11/23-11/25 11/23-11/25 11/23-11/25 11/23-11/28 11/23-11/27 11/24-11/27 Classes End 12/09 12/17 12/09 12/09 12/10 12/09 12/09 12/02 Final Examination 12/12-12/16 12/12-12/17 12/12-12/15 12/12-12/16 12/12-12/15 12/12-12/15 12/10-12/16 12/08-12/17 Winter Session TBD - TBD 12/19-01/06 12/26-1/13 12/19-01/13 12/19-01/13 - SPRING SEMESTER Orientation/Registration TBD 01/09-01/11 TBD 01/13-01/17 01/17-12/15-01/16 11/07-11/10 Classes Begin 01/17* 01/17 01/17 01/17 01/18 01/17 01/17 01/17 Martin Luther King Day 01/16 01/16 01/16 01/16 01/16 01/16 01/16 01/16 Winter Break TBD 2/20-2/24 02/20-02/24 02/20-02/24 02/20-02/24 02/20-02/24 02/20-02/24 - President's Day Holiday - 02/20 02/20 02/20 02/20 02/20 02/20 02/20 Spring Recess - 03/27-03/31 03/27-03/31 03/27-03/31 03/27-03/31 03/27-04/03 03/27-03/31 03/06-03/10 Maine Day- UM; University Day - UMPI TBD / Classes End 05/05* 05/13 05/05 05/05 05/06 05/05 05/05 04/25 Final Examination 05/08-05/12 05/08-05/13 05/08-05/11 05/08-05/12 05/08-05/11 05/08-05/11 05/06-05/12 05/02-05/11 Commencement 05/13* 05/13 05/13 05/13 05/13 05/13 05/13 05/20 Convocation - Fall / SUMMER SESSION Multiple sessions at each university from May 7 to August 30 TBD 05/15-08/19 TBD 05/22-08/11-05/15-08/25 05/15-08/18 05/22-07/20 * final calendar approval in process 108

77 Board of Trustees Meeting - Academic Year Calendars for /15/

78 Board of Trustees Meeting - Capital Projects Status Report ITEM SUMMARY 1. NAME OF ITEM: Capital Project Status Report 2. INITIATED BY: James H. Page, Chancellor 3. BOARD INFORMATION: X BOARD ACTION: 4. BACKGROUND: Attached is the Capital Project Status Report for the January 26, 2015 meeting of the Board of Trustees. The report reflects a total of 23 projects, a net reduction of one project since the last report due to removal of the Aquaculture Research Center Fish Lab, UM ( ). This project was removed prior to completion for reconsideration by program. As indicated in the report, three current projects are completed and will be removed from the next report. They are: Planetarium and Observatory, UM ( ); Field House/Memorial Gym Complex, UM ( ); and Morse Field Scoreboard Upgrade, UM ( ). 15 Two projects approved by the Finance/Facilities/Technology Committee (at their October 31, 2014 meeting) are not yet reflected in this report because the Board of Trustee took final action in November after the date of preparation for this report. Those projects will be included in future reports. Those two projects are: Aubert Hall STEM Classroom Renovations, UM ( ); and Estabrooke 3 rd and 4 th Floor Renovation, UM ( ). Other updates are as noted on the list. 01/15/

79 Board of Trustees Meeting - Capital Projects Status Report $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 Total approved funding by source for active major capital facility projects Grants Campus funds Gifts & Endowments State Bonds Revenue Bonds Grants Campus funds Gifts & Endowments State Bonds Revenue Bonds 15 $0 June 1, 2014 August 1, 2014 October 1, 2014 November 1, /15/

80 Board of Trustees Meeting - Capital Projects Status Report Capital Project Status Report Board Approved Projects January, Board of Trustees With Grand Totals and % of Current Approved Estimates Campus, Project Name (Project ID) UM ***Planetarium and Observatory ( ) Funding Source(s) & each source's share of expenditures to date Gift and Fund Raising (83%), Campus Funds: E&G Funds (17%) Status Construction Complete Orignial Estimated Completion Current Est. Completion Original Approved Estimate Current Approved Estimate % Expended of Current Approved Estimate Prior Actions, Information & Notes $5,200,000 $5,200,000 95% Board approved $5.2M in July 2011 *** Field House/Memorial Gym Complex ( ) Advanced Structures and Composites Center Expansion ( ) 2012 Revenue Bond (50%), Gifts and Fund Raising (43%), E&G Funds (7%) U.S. EDA Grant (91%), E& G Funds (0%), 2010 State Energy Bond (9%) Construction Complete Construction in Progress $14,000,000 $15,665,000 93% Board approved $14M in November Board approved additional $1M in March Finance Facilities & Technology Committee approved $665K in March $6,400,000 $8,000,000 15% Board Approved $6.4M in November, Board approved $1.6M in March ***Morse Field Scoreboard Upgrade ( ) Wells Commons Dish Room Renovation ( ) Boardman Hall STEM Laboratory Renovation ( ) Little Hall STEM Classroom Renovation ( ) Gift and Fund Raising (100%) Construction Complete E&G Funds (100%) Design in Progress 2013 State Bond (100%) Design in Progress 2013 State Bond (100%) Design in Progress $800,000 $800,000 99% Finance/Facilities/Technology Committee approved $800K in January $1,300,000 $1,300,000 3% BOT approved $1.3M in September, $610,000 $610,000 1% Finance/Facilities/Technology Committee approved $610K in September $1,740,000 $1,740,000 2% BOT approved $1.74M in September, UMF Merrill Hall Heating Boiler Replacement ( ) Mantor Green Geothermal Well Field ( ) **Dearborn Gymnasium Renovation ( ) Science Labs Renovations (Preble & Ricker ( , ) Campus Funds: E&G Funds (100 %) Campus Funds: E&G Funds (100 %) Campus Funds: E&G Funds (100 %) 2013 Lab & Class State Bond (0%), Campus Funds: E&G Funds (0%) Construction in Progress Construction in Progress Construction in Progress Design in Progress $650,000 $710,666 96% Board approved $650K in January Total current approved estimated to $710,666 to accurately report pre-existing feasibility costs $1,550,000 $1,550,000 96% Board approved $1.55M in January $1,200,000 $1,200,000 57% Board approved $1.2M in March $1,377,000 $1,377,000 0% Board approved $1.377M in July Natural Gas Central Heating Plant ( ) Revenue Bond (100%) Design in Progress $11,000,000 $11,000,000 0% Board approved $11M in July

81 Board of Trustees Meeting - Capital Projects Status Report Campus, Project Name (Project ID) UMFK Renewable District Biomass Heating Plant ( ) Funding Source(s) & each source's share of expenditures to date Federal Grant (53%), System Loan (40%), Campus Funds: E&G Funds (8%) Status Construction in Progress Orignial Estimated Completion Current Est. Completion Original Approved Estimate Current Approved Estimate % Expended of Current Approved Estimate Prior Actions, Information & Notes $3,000,724 $5,500,000 90% Board approved $3M in May 2012; Change in project cost to $5.5M approved by Board in September, 2013 and estimated completion updated to Forestry Geographic Info Sys Tech Labs/Nursing Lab Renov/Teleconf Ctr Upgrades ( ) 2013 Lab & Class State Bond (100%) Design in Progress $1,200,000 $1,200,000 15% Board approved $1.2M in May UMM **Powers Hall Exterior and Masonry ( ) **Science Building Laboratory Upgrades ( ) Compressed Natural Gas Heating Conversion ( ) 2013 Lab & Class State Bond (0%), Campus Funds: E&G Funds (100%) 2013 Lab & Class State Bond (97%) E& G Funds (3%) Revenue Bonds (100%) Construction in Progress Construction in Progress Design in Progress $680,000 $1,508,221 41% Finance & Facilities Committee Approved $680K in January, Board approved increase to $1,508,221 in May $600,000 $600,000 44% Finance & Facilities Committee Approved $600K in January, $1,800,000 $1,800,000 0% Board approved $1.8M in July UMPI Folsom/Pullen Science Classroom & Laboratory Upgrades ( ) 2013 Lab & Class State Bond (100%) Design in Progress $1,200,000 $1,200,000 10% Board approved $1.2M in March USM Central Heat Plant Replacement - Portland ( ) Payson Smith Lab Renovation ( ) Bailey Hall Lab Renovation ( ) LAC Nursing Lab Renovation ( ) Campus E&G Funds (100%) 2013 Lab & Class State Bond (100%) 2013 Lab & Class State Bond (100%) 2013 Lab & Class State Bond (100%) Design in Progress Design in Progress Design in Progress Design in Progress Science Building Lab Upgrade ( ) 2013 Lab & Class State Bond (0%) Design in Progress Explanatory Notes: * Project is new as of this report. ** Details of this project include updates since the last report. *** This project has been completed since the last report and is not expected to appear on the next report. Funding source(s) reflects primary source(s) for project $3,000,000 $3,000,000 4% Board approved $3M in September, $1,250,000 $1,250,000 0% Board approved $1.25M in May $1,250,000 $1,250,000 0% Board approved $1.25M in May $600,000 $600,000 1% Board approved $600K in May, $700,000 $700,000 0% Board approved $700K in May, Calendar Year unless otherwise noted. Percentage expended reflects total expended as of October 31, 2014, as a percentage of the current approved project estimate

82 Board of Trustees Meeting - Dashboard Indicators The University of Maine System Dashboard Indicators as of January 14, Nathan J. R. Grant UMS Institutional Research Coordinator / Analyst 1/14/

83 Board of Trustees Meeting - Dashboard Indicators Dashboard Indicators The University of Maine System TABLE OF CONTENTS Topic Total FTE & Headcount Enrollment Undergraduate FTE & Headcount Enrollment Graduate FTE & Headcount Enrollment Fall Semester Distance Education Credit Hours Distance Education to Total Credit Hours Fall Semester Undergraduate Applications Average Annual Residential Hall Occupancy Average Annual Residential Hall Occupancy Rate Revenues & Expenditures (Actual vs. Budget) Investment Performance Total FTE Employees Total Financial Aid State Appropriations Sponsored Programs Expenditures by Activity Total Operating Expenses Page January 14,

84 Board of Trustees Meeting - Dashboard Indicators Dashboard Indicators The University of Maine System 16 January 14,

85 Board of Trustees Meeting - Dashboard Indicators Dashboard Indicators The University of Maine System 16 January 14,

86 Board of Trustees Meeting - Dashboard Indicators Dashboard Indicators The University of Maine System 16 January 14,

87 Board of Trustees Meeting - Dashboard Indicators Dashboard Indicators The University of Maine System 16 January 14,

88 Board of Trustees Meeting - Dashboard Indicators Dashboard Indicators The University of Maine System 16 January 14,

89 Board of Trustees Meeting - Dashboard Indicators Dashboard Indicators The University of Maine System 16 January 14,

90 Board of Trustees Meeting - Dashboard Indicators Dashboard Indicators The University of Maine System Note: FY13 and FY14 were re-stated and other restricted funds category added as of Nov January 14,

91 Board of Trustees Meeting - Dashboard Indicators Dashboard Indicators The University of Maine System **Note: FY13 total operating expenses were re-stated. 16 January 14,

92 Board of Trustees Meeting - Agenda Calendar UNIVERSITY OF MAINE SYSTEM Board of Trustees AGENDA CALENDAR A working calendar for developing agendas and submitting various reports to the Board has been designed in order to allow maximum planning in organizing presentations and reference materials. The calendar identifies the timetable for submission of items and reports which recur every six to 24 months as well as special reports with specific time lines. It does not include general items which are ordinarily on each Board meeting agenda; e.g., Personnel Appointments. The following agenda is subject to change consistent with scheduling, reporting, and other factors that the Chancellor deems necessary to consider such matters. The Calendar will be updated and included in the Board Meeting materials on a regular basis. JANUARY: Academic Affairs Academic Year Calendar Honorary Degree Nominations Fiscal Matters State Research Report MARCH: Academic Affairs Tenure Nominations Tenure Report Governance/Administration Board Calendar Establishment of Nominating Committee Student Affairs Spring Enrollment Update MAY: Fiscal Matters Budgets and Student Charges Governance/Administration Election of Board Officers Confirmation of Board of Visitors JULY: Governance/Administration Appointment of Standing Committees Human Resources Annual Report on Named Chairs and Professorships 17 SEPTEMBER: Fiscal Matters Appropriation Request NOVEMBER: Academic Affairs Awarding of Academic Degrees Fiscal Matters Review of Annual Financial Report Student Affairs Official Fall Enrollment Update November

93 Board of Trustees Meeting Honorary Degree Nomination AGENDA ITEM SUMMARY 1. NAME OF ITEM: Honorary Degree Nomination for INITIATED BY: James H. Page, Chancellor 3. BOARD INFORMATION: BOARD ACTION: X 4. BACKGROUND: Honorary Degree nominations from the University of Maine System campuses are presented annually for approval. In accordance with Board practice, the nominations are presented a year in advance and will be reviewed in Executive Session. Action will be taken in the public meeting without identification of the individual honorees. Publicity is the responsibility of the campus after arrangements for conferral of the degree are complete. 5. TEXT OF PROPOSED RESOLUTION That the Board of Trustees of the University of Maine System approves the 2015 nomination for Honorary Degrees for USM as presented. 18 1/15/

94 Board of Trustees Meeting Honorary Degree Nominations AGENDA ITEM SUMMARY 1. NAME OF ITEM: Honorary Degree Nomination for INITIATED BY: James H. Page, Chancellor 3. BOARD INFORMATION: BOARD ACTION: X 4. BACKGROUND: Honorary Degree nominations from the University of Maine System campuses are presented annually for approval. In accordance with Board practice, the nominations are presented a year in advance and will be reviewed in Executive Session. Action will be taken in the public meeting without identification of the individual honorees. Publicity is the responsibility of the campus after arrangements for conferral of the degree are complete. 5. TEXT OF PROPOSED RESOLUTION That the Board of Trustees of the University of Maine System approves the 2016 nominations for Honorary Degrees as presented. 19 1/15/

95 Board of Trustees Meeting - Appointment of Interim President, UMM AGENDA ITEM SUMMARY 1. NAME OF ITEM: Appointment of Interim President, UMM 2. INITIATED BY: James H. Page, Chancellor 3. BOARD INFORMATION: BOARD ACTION: X 4. BACKGROUND: Cynthia Huggins completed her service as the President of the University of Maine at Machias on January 2, Chancellor James H. Page announced that Dr. Joyce B. Hedlund has been appointed the interim President of the University of Maine at Machias. Dr. Hedlund s term, will be from January 5, 2015 until a president assumes the office. Dr. Hedlund spent nearly twenty years as a president in the Maine Community College System, leading the Eastern Maine Community College in Bangor and the Washington County Community College. While in the community college system, Dr. Hedlund focused the work of the College Advisory Board on regional economic development and the role that colleges can play in developing support systems for growth. In recognition of her distinguished service to the system, Dr. Hedlund was honored as president emeritus for both Eastern Maine and Washington County Community Colleges. Prior to joining the community college system, Dr. Hedlund held student support and success positions in Maine s public universities. Early in her career she was the Director of Admissions and worked on evening and adult education programs at the University of Maine at Fort Kent. At UMaine, Hedlund held positions in financial aid and eventually served as Associate Dean of Students responsible for commuter affairs, retention and new student orientation. Dr. Hedlund is a University of Maine at Fort Kent graduate and holds a Master s Degree as well as a Doctoral Degree in Education with a concentration in Student Personnel Services and Counselor Education from the University of Maine. She and her husband have a home in the Washington County community of Perry, Maine. 5. TEXT OF PROPOSED RESOLUTION: 20 That the Board of Trustees approves the appointment of Dr. Joyce Hedlund as Interim President of the University of Maine at Machias, effective January 5, 2015 at an annual salary of $137,000. The appointment will end on the date a successor president assumes office. 01/15/15 138

96 Board of Trustees Meeting - Award of Tenure to Dean, University of Maine School of Law AGENDA ITEM SUMMARY 1. NAME OF ITEM: Award of Tenure to Dean, University of Maine School of Law 2. INITIATED BY: James H. Page, Chancellor 3. BOARD NOMINATION: BOARD ACTION: X 4. BACKGROUND: Candidates recommended for tenure in the University of Maine System are brought forward for approval by the Board of Trustees. The University of Maine School of Law is presenting a candidate for tenure as a condition of Appointment. 5. TEXT OF PROPOSED RESOLUTION That the Board of Trustees approve the recommendation to grant tenure to the candidate submitted by the University of Maine Law School. This appointment will be effective July 1, /15/15 139