BOG OKs Construction Policy

The proposal, which must be approved by the N.C. Building Commission, would allow the UNC system to hire construction managers to coordinate each construction project from start to finish.

The bond package will provide the UNC-system with $2.5 billion for facility renovation and expansion.

Kevin MacNaughton, UNC-system finance and property officer, said the construction manager would estimate the bids for an entire project and would be held accountable for keeping that project on budget.

MacNaughton said the manager would also work with each designer to spot any flaws or possible design problems early in the process, saving time as well as money.

"We will have a package with a guaranteed maximum price," he said. "(The manager) will be responsible for delivering the project at that price or below."

The state Building Commission will consider the proposal Jan. 23.

The BOG, which held its monthly meeting Friday at the N.C. School of the Arts, also received a proposal from the Educational Planning Committee for revising the system's Minority Presence Plan.

The proposal, which the board agreed to forward to all 16 UNC-system schools, asks each institution to come up with campus-specific ways for ensuring diversity, achieving racial parity in graduation rates and providing needy students with financial aid.

The Minority Presence Plan focuses on increasing the number of minority students in UNC-system schools. The percentage of minority students in system schools has tripled since the plan's beginning in 1972.

Andrew Payne, the BOG's nonvoting student representative, said need-based financial aid is vital for the revisions to work.

"If financial aid dollars aren't increased, all the efforts will be almost wasted," Payne said. "Until we have the money, we're not going to see the diversification on our campuses that a lot of us would like to see."

The board also discussed fiscal responsibility after receiving its first report on management flexibility, which allows campuses to reallocate unspent funds.

The report found that $109.8 million would likely be reallocated systemwide this year, for purposes ranging from capital improvements to academic programs. The majority of the money -- $76 million -- came from lapsed salaries, money allotted for unfilled jobs.

The report found there were 729 positions -- including 332 positions at UNC-Chapel Hill -- that were unfilled for more than nine months, largely due to recruitment problems. UNC-CH reallocated more than $20 million -- spending nearly half on technological upgrades.

UNC-system officials could not determine if the number of vacant positions was normal because they have never before examined the issue.

The reallocation process fell under scrutiny last fall after the state auditor's office found that N.C. State University Public Safety Director Ralph Harper misspent close to $1 million in lapsed salary funds. The board report on management flexibility will now be submitted to the state legislature to defend the policy that allows campuses to maintain control of unspent funds.

UNC-system President Molly Broad said the large number of unfilled positions proved a need for the state to offer better incentives to employees. Broad also hinted that the number of unfilled positions might come from managers protecting their departmental budgets.

"If you were a prudent manager, based on history, you would err on the side of protecting the institute if there was a midyear adjustment (in your budget)," Broad said. "The prudent management action is to preserve and protect those balances."

The State & National Editor can be reached at stntdesk@unc.edu.