The University Corporation

ITEM #1 CONSIDERATION OF SEPTEMBER 11, 2003 MEETING MINUTES
The minutes were approved.

ITEM #2 2004/2005 BUDGET
Surplus from Operations is projected at $193,606 and $175,000 will be returned to the University. The North Campus will be included in the University Master Plan update. Medtronic/MiniMed is receiving rent credits as reimbursement for infrastructure improvements.

MSP: That the 2004/2005 fiscal year budget be approved as presented.

ITEM #3 AUDIT

MSP: That the North Campus-University Park Development Corporation Board of Directors approve the engagement of KPMG to do the 2003/2004 audit of NCUP at a fee not to exceed $9,850 including out-of-pocket expenses.

ITEM #4 FEBRUARY 29, 2004 FINANCIAL STATEMENTS AND INVESTMENT REPORT
There was a 12.2% return over the first eight months of the fiscal year. Investments will be rebalanced in June to the target allocations. Expenses were close to projections.

ITEM #5 ANNOUNCEMENTS
Chancellor's Office Audit: There was only one NCUP audit point and it related to the frequency of meetings. The auditors referenced the California Education Code, which requires quarterly meetings. The California Corporation Code requires one meeting annually.

Faculty/Staff Housing: On February 23, NCUP management and University administrators had a half-day meeting with the consultant retained to study faculty/staff housing for the North Campus. The escalating cost of area housing has necessitated consideration of a housing program to assist in recruiting and retaining faculty and staff. Any housing program undertaken would be high quality, sel-supporting, and designed to create a sense of community. Items to be considered include type or mix, pricing, length of ownership, and phased development.