Senator Vogel requested that ECEN 610--Data Converters (Attachment B12) be removed from the agenda.
The remaining items on the Consent Agenda were approved.

Speaker Bednarz called on the senators who are members of shared services teams to report.

Senator Jones (Agriculture) reported that the Business Services Team had met three times and chaired by B. J. Crain (TAMUS) and the CFO’s of several system members, including Terry Pankratz (TAMU).  Most of this group has already been communicating for quite a long time, so this team is really a continuation and formalization of that process.  The group is committed to a change in culture to actively consider shared services without a reduction in the quality of service, and is focusing on telecommunications, software, transportation, and energy.  Given that we have some emerging smaller campuses, it is time to look at issues like whether or not we need to install landlines in every dormitory room, but emergency phones would not be eliminated.  The team is looking at VOIP (Internet phones), especially since the new campuses provide an opportunity to look at new technologies.  Also, since the new members coming into the TAMU System have incompatible software, data cannot be shared, and this issue must be addressed; on the positive side, by working together the system may have increased negotiating power.  With regard to entities transportation, there is the question of outsourcing; most of the smaller campuses use outsourcing for a fleet of cars.  Finally, risk management protocols can be shared across the TAMU System.  Although this is not the complete list of issues under consideration by the business services team, it is not expected that any of these areas will have a major impact on teaching and research.  Speaker Bednarz asked that any questions or comments be communicated directly to Senator Jones.

Former Speaker Slack reported that the TAMU System office of benefits policies and risk management would probably be the big winner for savings from consolidation, as they have been sharing services such as life, health, and workman’s compensation insurance for the 54,000 employees in the whole system.  Exposure is minimized and benefits are cheaper because of this size.  I think you all at one time or another have voted on SEBAC (System Employee Benefits Advisory committee) membership that every unit gets a representative on it and that’s what all of this is about. Here’s a case where there has been shared benefits with the system all along, now whether it can be improved or not I’m not sure. I think we are already in a shared-services mode, so this is one obvious place to continue shared services.

Former Speaker Clint Magill (Agriculture) reported on the Facilities Planning and Construction/Physical Plant shared services team.  Facilities Planning and Construction (FP&C) is a System-level office, while Physical Plant is TAMU-specific.  The shared-services initiative includes the Vice President for Facilities (whose office includes the airport.)  There are historical and legal reasons the offices have been separate.  A new Texas Higher Education Coordinating Board rule effective in September raises the size of projects requiring their approval from one-half million dollars to four million, but also mandates following state building codes, using licensed architects, etc.  There are currently 60 construction projects across the TAMU System and 250 physical plant projects.  The FP&C office is funded by a “tax” on construction projects and has been asked to reduce its budget by 1%; physical plant has been asked to prepare a 2% reduction.  It is not clear whether or not these amounts are part of the Chancellor’s $20,000,000 goal.  The team was charged with identifying areas where cost-cutting can be done, but with increasing demand it is not obvious there is any place that can be cut.  The basis for seeking to cut is the possibility that PUF funding and so on may be cut in future years.  FP&C are already contracted out for the Health Sciences Center and other campuses too, so that can be terminated if funding dries up.  TAMU has adopted the “silver” level environmental standard for “green buildings.”  FP&C and Physical Plant already work closely together, and don’t see any reason to discontinue that practice.  It is possible to cut down on paper use, raise building temperatures in the cooling season, etc.  Any suggestions should be sent directly to Senator Magill.

Senator Walker (Engineering) reported on the Federal Relations Shared Services Team: The team is chaired by Cathy Riley, who is in charge of external relations for TEES, and has held one meeting in Austin.  One person each for TAMU, TEES, etc. spends a fraction of their time on external relations; this is primarily at the state level, so they are mostly in Austin.  They use the same support staff as they do for the other part of their time.  Given that the staff is so light it is not obvious what could be cut.  There may be some redundant lobbying contracts in Washington, D.C.; otherwise the only way to cut expenses is by flying less.  The main thing the team is talking about is better coordination, especially from the TAMU System office; this area does not appear to be a great candidate for saving money.

Former Speaker Fackler observed that when some distinguished professors met with Chairman Foster he was thinking that TAMU spent two million dollars a year on this area in addition to two million dollars a year spent by the TAMU System office.  Senator Walker replied that whatever the correct figures might be, it was primarily for lobbying contracts for different topics, which might be a potential area for consolidation.

Senator McKenzie (Education) reported on the Shared Services Team for Training, which has held three meetings, mostly to try to figure out what they’re supposed to do.  Initially they seemed to be looking for areas to cut costs and improve efficiencies.  It is not clear what is the complete list of trainings are offered by TAMUS, TAMU, colleges, and departments.  The charge changed somewhat in the last week, according to Frank Ashley and is now to improve processes, eliminate duplication between TAMU and TAMUS and find efficiencies.  In the current phase emphasis will be on eliminating duplication; the other areas will be considered in phases two and three.

Senator Meagher (Liberal Arts) reported that the Research Administration Shared Services Team is also working on defining its areas; just TAMU and TAMUS are under consideration for now.  They will not address compliance, although a separate subcommittee will look at contract compliance.  Vice President for Research Jeff Seeman recently joined the committee.  There do not seem to be too many full-time equivalent people at TAMU and TAMUS doing research administration.  Also, there doesn’t seem to be a move to a centralized model.  Despite the rumor that TAMUS wants to take over the Texas A&M Research Foundation, we have received assurances from Brett Giroir and Andrew Strong that they do not.  The goal seems to be to work with the existing distributed model and have shared services.  Beyond too many people, [which doesn’t seem to be the case], the team is looking at cutting some software programs, SPIN and media science which has a $27,000 per year license but is not used much.  The consolidation of research administration was previously looked at in 2005 and 2007.  One result was the MAESTRO software package, which could be used by all system members and should be completed next year.  The team has also discussed funding from private foundations.  Since their grants often lack the typical 45% indirect cost return (IDC), they come into the office of the Vice President for Research; if these grants were moved to the Research Foundation who would pay for their administration?  The team is also discussing research administration for the Qatar campus.  Currently their research administration is handled by TEES and the Vice President for Research; it may all be moved to TEES.

Rafael Lara-Alecio (Education) noted that every single team was to report “savings,” but asked how we can optimize IDC.  He suggested providing more and better resources to our graduate students, which he said is why we are here.  Senator Meagher replied that they will try to include graduate students.  Former Speaker John Fackler asked how much research funding comes in for graduate student tuition and surmised that it must be a sizeable amount, although he has not seen the figures.  Senator Meagher replied that she had some tables and would look up the numbers and email Former Speaker Fackler.

Speaker-elect Strawser distributed the following handout regarding the Marketing and Communication Shared Services Team. (SEE ATTACHMENT)
Each member of the team is charged with a specific area to maintain and update.  He said that upon coming on this committee he was told that there was little potential for much savings. He indicated that while there has been only limited communication, other system schools could piggyback on what TAMU and TAMUS are doing in marketing and communications.  He observed that TAMU seems to lag in using good marketing and communication in recruiting top students; some local top students at A&M Consolidated High School report being recruited by top universities across the nation with the exception of TAMU.
He observed that every school in the nation has a student information system and recommended that we look at best practices across the country and get one that functions better than what we have; we are told it can’t do all the things we want.
Regarding outsourcing, there could be savings for example, if the athletic department supplied extensive video and communications and shared their photographic equipment, but the team was told that is "out of bounds". Nevertheless he said now is the time to act, since TAMU has been given access to athletic tutoring for other students as well.  Another question the team is asking is “What aren’t we doing that we should be doing?”  This may be perceived as a problem if we conclude we should spend more in this area, but there is a potential for savings in later phases.

Senator Paetzold was unable to attend the meeting but sent her report for the Human Resources Shared Services Team. It has been an exhaustive survey of HR activities performed by dep't heads, Dean's, and Dean of Faculty's office, noting how specialized it is; development of survey to determine other HR activities among staff at system and campus levels.  Data collection and analysis will take a couple of weeks. 

Tom Vogel (Science) stated that form proposing changes to ECEN 610 failed to specify the reasons for the changes, as is required, and moved that the item be returned to the Graduate Council for proper documentation.  The motion was seconded.  Hank Walker (Engineering) reported that he was previously planning to ask that ECEN 610 be returned to the ECEN department to work out internal discussions, but that he believed the reason for the proposed changes was to modernize the course.  The motion passed.

New Business

First, Speaker Bednarz recognized Interim President Bowen Loftin, who announced that he will present the FY 2010 budget at a town hall meeting July 24th from 9:00-10:30 A.M. in Rudder Theater, since the Board of Regents will have approved budgets in their [July 15-17] meetings this week.  The town hall meeting will be broadcast on TTVN.

Senator Walker (Engineering) asked about the $20 million cost reduction figure, which seems to keep changing: first it was the shared services teams’ target, then mentioned in the first town hall meeting, now maybe it counts cost avoidance including other system schools.  Interim President Loftin replied that he had made it clear that a $20 million savings from shared services was unrealistic.

Senator Matthewson (Geosciences) asked if the 17-position reduction in force (RIF) in the athletic department and the RIF in the University Press was included in the $20 million figure?  Interim President Loftin answered no, and explained that those are separate auxiliary enterprises, although he has oversight.

Speaker Bednarz next recognized Provost Jeff Vitter, who said the task force on shared governance (which he co-chairs with Speaker Bednarz) was proceeding.

Speaker Bednarz then recognized Vice President for Research Jeff Seeman, who expressed his pleasure at now being at A&M.
Speaker Bednarz said that having these administrators in attendance is helpful and that he hopes they will continue to come.

The first item of new business concerned the two resolutions passed by the senate at its June 30th special meeting.  Speaker Bednarz reiterated his commitment to obtaining a response from the three regents who meet regularly with the Executive Committee.  Kathryn McKenzie (Education) said she would like to have an official response. 

Senator Matthewson (Geosciences) said that asking for an official response is just a request, and that our vote puts the ball in their court and allows them to respond or not.  He felt it would seem arrogant to ask for a response. 
Speaker Bednarz said that he did tell Board Vice Chairman Jim Wilson that this item would be on today’s agenda, and that he had replied that he felt it would be better to wait till after the July 15-17 board meeting to respond. 

Senator Meagher (Liberal Arts) asked if our input should not be expressed prior to the board meeting since they vote on items. 
Speaker Bednarz replied that he was happy to carry out the wish of the senate, and observed that at past breakfast meeting with regents the interactions tended to be between individuals talking less formally; also, at special meeting of the board no public testimony allowed.

Former Speaker Slack thanked Interim President Loftin for coming to several faculty senate meetings.  He concurred that Senator McKenzie’s point was important; right now everybody has everybody’s attention.  He reaffirmed President Reagan’s “Trust but verify” motto for this situation, and said that although the battle has been joined he did not think it was over.  He said that many have asked about his recent “cordial séance” with the chancellor, and that his reply was that the discussion was mostly about the presidential search; he thinks the chancellor and regents are thinking very seriously about it.  He underscored the importance of the list of presidential characteristics since that’s what the search advisory committee will be starting with, and urged that any modifications be passed on to Speaker Bednarz.  Given the potential of a new relationship with the board and the chancellor, he expressed hope that we can move forward after coming through a difficult past thirty days, but cautioned that we should keep our ears up and keep listening.

Speaker Bednarz observed that one positive outcome has been the number of groups stepping up to communicate; effort will be needed to maintain this.

Speaker-elect Strawser echoed the Speaker’s thanks to the Interim President, the Provost, and the Vice President for Research. He also thanked former speaker Slack for making his positions known.  He expressed the need for stability, specifically from having a long-term president.  He said that Board Chairman Morris Foster, Chancellor McKinney, and Interim President Loftin have given their office and cell phone numbers to Speaker Bednarz to call them any time, and that we need to communicate clearly to the regents.  Since seven of the nine regents have A&M degrees, he surmised that they probably think of how A&M was in the past, and recommended that we explain to them what we do and why (e.g., why a presidential search would take six months when they can hire a new oil company CEO in two weeks).  He said we need to communicate, and use the words “partnership” and “student” more, which they want to hear the importance of “students” is a given to us, but we need to keep saying it.  He again thanked former speaker Slack for his service to A&M and the Faculty Senate.

Former Speaker Slack observed that the next president will be the sixth since 2006 and said that Interim President Loftin had just showed him the search advisory committee’s agenda; the committee will meet at 2:30 Thursday.  He said that using a baseball analogy we have to get a win to get a good president, which will take all of us and especially the search advisory committee to make this happen.

Committee of the Whole

Speaker Bednarz turned the chair over to Speaker-elect Strawser for the Committee of the Whole.

Senator Lara-Alecio (Education) shared a memo from then-speaker Magill to then-president Murano that the Faculty Senate had on April 13th approved an online master's degree in bilingual education, and reported that now 91 days later he had still not received word from the President's office on how to proceed. He said his department has been spending resources to prepare for this program, which will provide a much-needed service to teachers all over Texas.

There being no further business for the Committee of the Whole, Speaker-elect Strawser returned the chair to Speaker Bednarz.

The meeting was adjourned at 4:30.