MINUTES OF A MEETING OF THE EXECUTIVE COMMITTEE
OF THE BOARD OF VISITORS OF VIRGINIA COMMONWEALTH UNIVERSITY
April 16, 1987
A meeting of the Executive Committee of the Board of Visitors of
Virginia Commonwealth University was held on Thursday, April 16, 1987,
at 10 a.m. in the University Meeting Center.
Present were Mesdames Abady, Bemiss and Epps; Messrs. Farinholt
(Rector), Gregory, Lipman and Morris; and Dr. Holland. Absent were
Mrs. Whittemore; and Messrs. Berry and Wurtzel. Also present were Drs.
Ackell, Connell, Sparks and Wilson; Messrs. Brown, Bruegman, Cribbs,
Fischer, Johnson and Ross; and Mrs. Price.
Mr. Farinholt called the meeting to order. A contract for adver-
tising and marketing support services at the Hospital was presented.
The purpose of this contract is to provide professional assistance to
the Hospital in changing its public perception and image. It is recom-
mended that this contract be awarded to Ford & Westbrook. The total
value of this contract for the two-year period will be approximately $1
million. This contract has been endorsed by the Hospital Committee.
On motion made and seconded, the contract with Ford & Westbrook was
approved with Mr. Morris abstaining.
The 1987-88 Budget Plan was presented. This is the first time a
fund sources and uses for both the University and Hospital. Total
revenues for 1987-88 will approximate $472 million. The Hospital will
consolidated Budget Plan has been developed. The plan includes all
account for 51.5% of total revenues and the University will account for
48.5%. Educational and General Programs will account for 30.1% of
total revenues. No other fund group accounts for more than 10%.
Patient revenues dedicated to Hospital functions will account for the
single largest revenue source with $172 million, or 36.5%. State Gen-
eral Funds which support Educational and General Programs, Student
Financial Assistance and the University Hospitals will total $168 mil-
lion, or 35.5% of total revenues. Tuition and fees which support Edu-
cational and General Programs, Auxiliary Enterprises and University
Funds will account for $44 million, or 9.4% of revenues. Grants and
Contracts which support Sponsored Programs and Student Financial Assis
- tance will total $40 million, representing 8.4% of revenues. The high-
lights of each Budget Plan were reviewed.
To support this Budget Plan, a proposed Tuition and Fees Schedule
was presented for 1987-88. Total charges (tuition, fees, housing and
board for full-time in-state undergraduates) are recommended to
increase to $5,335 for 1987-88, a 5.9% increase. Total charges for
full-time out-of-state undergraduates would increase to $8,335 in
1987-88, an 8.8% increase. Tuition and fees charges for full-time
in-state graduate students will increase by 9.3% to $2,641 under the
proposed rate structure. Tuition and fees charges for full-time out-
of-state graduate students would increase by 14.8% to $5,301. In-state
medical students would pay $6,288, an 8.2% increase, while tuition and
fees charges for out-of-state medical students would be $12,283 or a
7.6% increase over last year. Dental students with in-state status
will pay $5,538 in tuition and fees under the recommended plan, an 8.3
% increase. Out-of-state dental students will pay $10,673, a 7.7%
increase. A separate student health fee of $85 is being recommended
beginning in 1987-88. This fee will provide for health services for
all full-time students. The University Fee will remain at $390 for a
full-time student. The Academic Campus Student Activity Fee is recom-
mended to remain at $40 for full-time undergraduates and $26 for full-
time graduate students. The MCV Student Government Association recom-
mends an increase in the Health Sciences Campus fee to $28. Housing
and board charges for 1987-88 will increase by 3.0% and 3.1% respec-
tively. These low increases will keep total student costs down. Fol-
lowing a discussion, on motion made and seconded, the 1987-88 Con-
solidated Budget Plan and the Proposed Tuition and Fees Schedule were
approved as submitted.
A proposed contract for the Student Loan Billing Service was pre-
sented for approval. This service will provide maintenance, billing,
cash collection and reporting for loan accounts maintained by the Uni-
versity. This program also helps the University ensure full compliance
with federal guidelines associated with these loan programs. It is
recommended that a three-year contract for these services be awarded to
Wachovia Services, Inc., at an approximate cost of $273,000. On motion
made and seconded, the contract with Wachovia Services, Inc., for the
Student Loan Billing Service was approved.
A program to refinance the University's U.S. Department of Educa-
tion College Housing Loans was discussed. In 1986, the Department of
Education announced its intention to sell its College Housing and
Academic Facilities loan portfolios to private investors. Prior to the
public offering of these portfolios, the Department of Education is
allowing institutions with loans which were originated prior to Septem
- ber 30, 1982, to prepay the outstanding principal balance at a dis-
counted value. The University has two loans that qualify for this
program. In February, 1987, based on the approval of the Treasurer of
the Commonwealth of Virginia, the University notified the U.S. Depart-
ment of Education of its intent to participate in this project subject
to approval of the Board of Visitors. The administration is seeking
financing in the amount of $2.2 million to repay the outstanding prin-
cipal amount of $4.62 million. Should the University seek external
financing for this program, it would be subject to the University
obtaining an interest rate which will provide positive or at least
break-even present value savings and would be subject to final approva
l of the Board. On motion made and seconded, the Committee recommended
refinancing of the U.S. Department of Education College Housing Loans
as stipulated above.
On motion made and seconded, the Committee convened into executive
session to discuss certain personnel matters involving the performance
of identifiable employees or faculty of VCU, and to discuss the evalua
- tion of performance of departments or schools of VCU where such matter
s regarding such individuals might be affected by such evaluation, and t
o discuss the condition, acquisition or use of real property, and to pro
- tect the privacy of individuals in personal matters not related to
public business, and to discuss the investing of public funds, and to
discuss matters relating to gifts, bequests, and fund-raising activi-
5
ties and to discuss special awards as authorized by Section 2.1-344
a(1), a(2), a(3), a(5), a(7) and a(8) of the Virginia Freedom of Infor-
mation Act.
Following executive session, on motion made and seconded, the
Committee approves the naming of the David G. Williamson, Jr., Insti-
tute for Health Studies in the Department of Health Administration;
approved the Statement of Policy for the Solicitation, Acceptance and
Administration of Contributions; approved the proposed recipient of the
Board of Visitors' Award; and approved the Report on Special Awards for
the 1987 Commencement Ceremonies.
The meeting was adjourned at 12:20 p.m.
Approved:
