[1975-05-12] Minutes of a special meeting of the Executive Committee of the Board of Visitors of Virginia Commonwealth University May 12, 1975.

              MINUTES OF A SPECIAL MEETING OF THE EXECUTIVE COMMITTEE 

 OF THE BOARD OF VISITORS OF VIRGINIA COMMONWEALTH UNIVERSITY 

               May 12, 1975


    A special meeting of the Executive Committee of the Board of Visitors 

of Virginia Commonwealth University was held on Monday, May 12, 1975, at 

3:00 p.m. in the Sanger Hall Board Room.

    Present were Messrs. Dabney, Grey, Obenshain, Scott and Shumate; 

and Dr. Gwathmey. Dr. Blanton was absent. Also present were Drs. Brooke, 

Neal and Willett; Mr. Temple and Mrs. Price.

    Mr. Scott called the meeting to order.

    Mr. Bill Crews from the Attorney General's Office joined the meeting 

for a discussion of the proposed resolution of the Virginia Hospital Laundry.

Following a discussion, on motion made and seconded, the following resolu- 

tion was unanimously approved as amended:

    WHEREAS, Virginia Commonwealth University, Medical 
    College of Virginia Hospitals ("MCVH") has heretofore 
    entered into an agreement dated October 1, 1974, (the 
    "Laundry Service Agreement") for laundry services with 
    Virginia Hospital Laundry, Inc. ("VHL") and VHL has 
    undertaken the construction of a laundry facility to 
    serve MCVH and certain other non-profit and govern- 
    mental hospitals in the Richmond area; and

    WHEREAS, VHL originally contemplated financing the 
    cost of acquiring, constructing and equipping the 
    facility through tax-exempt financing provided by the 
    Industrial Development Authority of the City of 
    Richmond, Virginia (the Authority) and such financing 
    may not be available to VHL because of litigation 
    instituted against the Authority; and
                             Page 2


    WHEREAS, VHL has obtained a standby commitment from 
   the Connecticut General Life Insurance Company for the 
   financing of the facility over a period of fifteen years at
   the annual interest rate of 10 3/4% in the event the Authority 
   is unable to provide financial assistance to VHL, a copy of 
   which is attached hereto as Exhibit A; an

    WHEREAS, the Connecticut General Life Insurance Company 
   has requested that certain amendments be made to the Laundry 
   Service Agreement in the event their commitment is accepted 
   by VHL;

    BE IT RESOLVED BY THE BOARD OF VISITORS OF VIRGINIA 
   COMMONWEALTH UNIVERSITY:

    1. The Rector and Secretary of this Board are hereby 
   authorized to execute and deliver whatever amendment or 
   amendments to the Laundry Service Agreement as they may 
   consider appropriate, provided all such amendments are in 
   form and substance acceptable to them, to the Vice Presi- 
   dent for Medical College of Virginia Hospitals, and to the 
   Attorney General's Office. Such amendments may, without 
   limitations, specifically provide (1) that VHL's exclusive 
   right under the Laundry Service Agreement to provide all 
   laundry and linen services to MCVH shall include the right 
   to provide such services through the use of outside parties 
   in the event that the needs of a participating hospital 
   significantly increase so that VHL is, for lack of sufficient 
   laundry service capacity, unable to provide laundry services 
   to the extent necessary to meet additional requirements of 
   MCVH and that the "Cost of Providing Services" as defined 
   in the Laundry Service Agreement shall be amended to include 
   the cost of obtaining laundry service through the use of out- 
   side parties, when and if such should become necessary, and 
   (2) that the primary recourse but not the sole recourse, to MCVH
   for inadequate or insufficient quality of laundry service shall 
   be to and through the Board of Directors of VHL.





                Secretary





Chairman