Regents to set stricter rules for UH contracts

By Beverly Creamer
Advertiser Education Writer

The University of Hawai'i Board of Regents has put the public on notice that they will rewrite policies this month to preclude UH contracts being awarded to firms that have been convicted of or pleaded guilty to campaign spending law violations. This would include principals and officers of the firms.

In meetings recently, regent Ted Hong asked UH administrators to make sure that firms bidding on UH contracts or entering into agreements with the university have not been violators. Those bidding on current contracts must make disclosure statements.

UH President Evan Dobelle noted that the university also should ask firms whether they are under investigation for spending law violations. And Hong said that if a firm is being investigated it would not be turned away from a contract, but the university would wait until the investigation was complete before making a decision.

The board also deferred approval of a new $3 million annual contract to finance the UH Foundation that has just launched a centennial fund-raising campaign with a $200 million goal. The board also deferred approval of an increase in assessments on foundation gifts from 2 percent to 3 percent, asking for more time to study the materials. This fee pays for the management services provided by the foundation.

A sharp exchange took place at one point between regent Kitty Lagareta and outgoing foundation president Elizabeth "Betsy" Sloane over whether the foundation has been forthcoming with information the regents want.

"Generally the feeling is the relationship has not been a good one," said Lagareta, citing regent Jane Tatibouet's complaints she had been barred from one meeting (because of a potential conflict) and hadn't been notified of another, though she is the board's designated representative.

"Our trustees and the foundation need reassurance their role will be honored," replied Sloane, noting that extensive financial information had been provided to Tatibouet but had not been shared with the board.

Board chairwoman Patricia Lee acknowledged there was no forum to share information and asked the foundation to help remedy that by providing extra copies for all.

Deferral of the foundation contract, and some of the debate around it, brought consternation from board members James J.C. Haynes and Byron W. Bender, both of whom said they supported foundation plans.

"We as regents have to get into alignment with the foundation if we're going into a capital campaign," said Haynes. "This plan has been well thought out and I'm going to support it. ... We need to give them the tools."

Lee told members: "Hopefully we'll take care of this at the next meeting."

The board also heard testimony showing that the financial outlook for the university is improving in a number of areas, including:

• Net assets have risen by $97 million in the past year — from $959 million a year ago to $1.056 billion currently, the first time they've gone over that threshold.
• Fund raising by the UH Foundation for the first eight months of the fiscal year has reached $19.1 million — almost equal to what was raised during all of last fiscal year. The annual goal is $30 million to $35 million.
• The stock fund managed by the Associated Students of the University of Hawai'i has risen to $6.2 million from a starting point of $700,000 in 1976 with the liquidation of stock from the old stadium.
• With two-thirds of the fiscal year complete, research and training grants are up 5 percent from last year, coming in at a total of $205.7 million so far. Although Jim Gaines, interim vice president for research, said that federal money is slowing down, he still projects total revenues by the end of the year at around $320 million, compared with $301 million last fiscal year.

Reach Beverly Creamer at bcreamer@honoluluadvertiser.com or 525-8013.