MINUTES OF A REGULAR MEETING OF THE
BOARD OF VISITORS OF
VIRGINIA COMMONWEALTH UNIVERSITY
May 21, 1993
A regular meeting of the Board of Visitors of Virginia Com-
monwealth University was held on Friday, May 21, 1993, at 9 a.m.
in the University Meeting Center.
Present were Messrs. Gregory (Rector), Arenstein, Framme,
Meador, Siegel, Townes, Weinberg and Whitworth; and Drs.
Berenguer, Gilmer, Holland, Johnson and Peay. Mesdames Epps and
Teig; and Father Dombalis were absent. Also present were Drs.
Trani, Dewey, Jones, Harris and Wilson; Messrs. Bruegman,
Gehring, Poe, Ross and Wyeth; and Mrs. Price.
Mr. Gregory called the meeting to order. The President's
report followed:
Dr. Trani introduced Ms. Bonnie Walton, the up-coming
Administrative Associate, whose term begins on May 24,
1993. Ms. Walton has been with the University since June
1988 and is presently employed as a Senior Program-
mer/Analyst in Management Services in the department of
Administrative Services. Ms. Walton received a B.B.A. from
Temple University in Philadelphia in 1981. A formal goodbye
was said to Dr. Rita Hull, the current Administrative Associ-
ate, who will be leaving the President's Office after Com-
mencement.
Allison Belsches, the student representative to the Board,
was presented with a small token of appreciation for service
this past year.
Dr. Trani presented an update on the Undergraduate
Engineering program. The three consultants, James H.
Woodward; Frank A. Franz; and Robert R. Furgason, have
prepared recommendations for the Undergraduate Engineering
program. Reasons in support are: economic development,
further use for the MCV Campus, development of the Re-
search Park, the program would attract more women and
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minorities; and formal degrees in Biomedical engineering
could continue to be offered at the graduate level, however
the BME department should be placed within any school or col-
lege of engineering that might be established. The first
location choice for the Engineering School would be adjacent
to the Academic Campus or Medical Campus.
A report from the Council of Higher Education on Higher
Education, 1994-96 Commitments and Needs was distributed.
General Funds Appropriations have declined in percentage
support of total budget. In 1980-82, it was 15.3% and in
1992-94 it was 12%. A real cost shifting is taking place.
VCU's Tuition and Fees increase is the lowest in the Common-
wealth.
Commencement will be held on Saturday, May 22, 1993, at
the Richmond Coliseum beginning at 10:00 a.m. The guest
speaker is Dr. Louis W. Sullivan. Dr. Sullivan will receive
the Honorary Degree of Doctor of Humane Letters as well as
Mr. William W. Berry, Mrs. Mary Tyler Freeman Cheek and
Governor L. Douglas Wilder. Mr. William E. DeRusha will be
presented the Wayne Medal and Drs. Louis S. Harris and
Charles P. Ruch will receive the Presidential Medallion.
The Committee reports followed.
Dr. Holland reported for the Academic Policy Committee.
The Institutional Purpose and Athletic Policy was presented. The
Institutional Purpose and Athletic Policy is a basic policy of the
Athletic Department and its relationships with the different constit-
uencies as well as with the athletic program.
A discussion with members of the faculty with the Academic
Policy Committee was held. The faculty members expressed concerns
about the Strategic Plan, Faculty Roles and Rewards and expressed
an interest in seeing that there is full faculty participation in
these areas in the future.
An executive summary of the comparisons of instructional
faculty salary averages for 1992-93 was presented. Highlights of
faculty salary averages for 1992-93 are:
For 1992-93, VCU's actual instructional faculty salary aver-
age was $49,049, up 2.1 percent from 1991-92. This instruc-
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tional faculty salary average is based on 767 full-time,
active faculty who meet the SCHEV/AAUP criteria for inclu-
sion in the calculation. The average excludes clinical,
preclinical and research faculty, as well as all faculty on
leave.
VCU's appropriated salary average for 1992-93 was $49,491,
up 2.0 percent from 1991-92. This average is an estimate of
the impact of the percentage increases in faculty salaries
provided by the state for the last several years. VCU's
appropriated salary average is second lowest among the
Virginia doctoral institutions.
VCU's appropriated faculty salary average is now at the 35th
percentile, down from the 51st percentile in 1988-89.
SCHEV's goal for this average is the 60th percentile of VCU's
peer group. The salary average's ranking in the group of
22 peers dropped from 12th to 15th during the last four
years.
In 1992-93, VCU's actual faculty salary average of $49,059
was $4,191 below the actual 60th percentile of $53, 250 for
SCHEV's faculty salary peer groups.
Actual salary averages at VCU's peer institutions have in-
creased by $8,451 since 1988-89, a 19.5 percent increase. At
VCU, the increase in the average has been only $6,299,
representing a 14.7 percent rise.
Compared with VCU's faculty salary peer group, VCU's
instructional faculty salary average is at the 33rd percen-
tile, down from the 46th percentile in 1988-89.
A report on Grants, Contracts and Intellectual Property was
presented for information.
Dr. Thomas J. Berenguer reported for the Advancement
Committee. The Policy for Approval of Fundraising Initiatives at
Virginia Commonwealth University was presented.
Before any fundraising efforts are initiated at Virginia
Commonwealth University, the feasibility and strategy of such
an initiative must be reviewed and approved by the Presi-
dent, the Vice President for Advancement and the Advance-
ment Committee of the Board of Visitors. Recommendations
for fundraising initiatives should be made to the Vice Presi-
dent for Advancement by the appropriate Dean and Vice
President for consideration by the University's leadership.
Once this policy is approved by the Board of Visitors, it
will be in effect for all Annual, Capital and Endowment
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fundraising initiatives of $10,000 and more. Public comment
regarding proposed fundraising initiatives will be coordinat-
ed by the Vice President for Advancement following the
appropriate approval process.
The Fundraising for Capital Projects at VCU Update was
presented. Capital projects proposed for feasibility analysis
fundraising initiatives include:
School of Engineering and Applied
Sciences $20.0 million
Athletic and Convocation Center $12.0 million
Massey Cancer Center $15.0 million
The Governmental Relations Report was presented. Legisla-
tive priorities for the upcoming months are: to keep the pressure on
for reasonable salary increases; to avoid further cuts to base budg-
ets; to acquire the funding to renovate the Virginia State Library
for VCU's needs; to work on ensuring the financial viability of MCV
Hospitals; to monitor the study resolution dealing with a regulatory
framework for biotechnology (HJR 516); and to continue funding for
the Urban Development and Labor Studies Centers. VCU's relation-
ship with the City of Richmond has improved dramatically over the
last few years. It is time now to expand efforts in other areas so
that VCU can develop a broader base of support for the Research
Park, Undergraduate Engineering and distributed campuses.
The remainder of the Committee's report will be made during
executive session.
Mr. Weinberg report that the Audit Committee will present its
report during executive session
Dr. Peay reported for the Finance and Investment Commit-
tee.
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The Consolidated Budget Performance Report for the Quarter
Ended March 31, 1993, was presented. The Academic Division of
Virginia Commonwealth University ended the third quarter of fiscal
year 1992-93 with revenues of $337.8 million and expenditures of
$287.4 million. Third quarter revenues were 89.7% of projected
annual revenues, ahead of both expected levels of 89.0% and last
year's rate of 88.8%. Third quarter expenditures were 76.2% of
projected annual expenditures, below the expected levels of 77.3% and
last year's 78.1% rate. It is projected that at the year end, over-
all budgeted expenditures will exceed budgeted revenues by $0.6
million. Auxiliary enterprises is projected to have a negative
budget balance of $1.6 million due to capital expenditures which are
being paid by reserves set aside for this purpose. A $1.0 million
budget surplus is projected in university funds due to increased
revenues from sales and services, restricted gifts, investment in-
come, and practice plan transfers. All other fund groups are ex-
pected to end the year in balance.
Mr. Whitworth reported for the Health Affairs Committee.
Information on the Hospital Mainframe Upgrade was present-
ed. An Agency Procurement Request was submitted April 16, 1993,
for the purpose of purchasing both a mainframe upgrade and a cur-
rent release of operating system software from the used computer
market. This is the first of a two-step mainframe upgrade process
with the second step occurring in fiscal year 1997 at an estimated
cost of $1.8 million. MCVH is taking all necessary steps to move to
the client/server environment.
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Additional commitments anticipated in the next several years
include: upgrading the functioning of the existing Technicon clinical
system to the annual release; replacement of existing outdated pe-
ripheral equipment supporting the Technicon environment; replace-
ment of the general ledger; introduction of software to support an
executive information system; and expansion of a client/server envi-
ronment to support middle management. The total cost estimated to
date is approximately $7.5 million.
The report on the Hospital finances was presented. Gross
patient service revenues total $393.8 million compared to a budget of
$403.6 million. Thus, actual is $9.8 million, or 2.4 percent under
budget. This variance relates to the decrease in patient days and
admissions. Total operating revenue for the period of $260 million
is below the budget of $262.4 million by $2.4 million, or .9 percent.
Adult admissions are 2.5 percent below budget whereas adult patient
days are 3.0 percent below budget. Emergency Room and outpatient
visits are running 3.7 percent above budget.
The notification of the contract award for MCV Fiber Back-
bone Network was presented for information. On January 22, 1993,
a request for a proposal was issued for MCV Campus Fiber Backbone
Network. A fiber optic backbone network interconnecting all of the
buildings on the MCV Campus is required to support data, video and
possibly voice services. This network has been designed to accommo-
date all functional units on the campus, potential tenants in the
planned Biotechnology Research Park and also serve the MCV Cam-
pus dormitories. The contract was awarded to AT&T for $614,000 on
April 16, 1993.
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A report on the Quality Assurance Educational Session was
presented for information. The continuous quality improvement effort
at MCVH represents the introduction of a management philosophy
that will be expanded throughout the organization in coming years.
This philosophy is being used to build upon MCVH's traditional meth-
ods of quality assurance and uses outcome data to determine which
institutional and patient care processes can be improved to meet the
customers' desires.
Mr. Siegel reported for the Property Committee. The renew-
al of a lease at 1314 West Main Street was presented for the contin-
ued use of clinical research and administrative space by the Rehabil-
itation Research and Training Center (RRTC) under a contract
awarded by the Social Security Administration to the Rehabilitation
Medicine Department of the School of Medicine. It was recommended
that the existing lease be amended to include renovations for handi-
capped access and to reduce the rentable area from 12,454 square
feet to 10,518 square feet for a five-year lease with cancellation
permitted after two years. The University agrees to pay the unamor-
tized cost of renovations if cancellation occurs after two years.
A lease at 1500 West Broad Street was presented for a 4,000
square foot vehicle maintenance facility plus 13,400 square feet of
land. These facilities are being vacated by the U.S. Government
Motor Pool and will provide a vehicle maintenance facility and park-
ing area for the University's motor pool. The motor pool is cur-
rently located at 9-15 South Pine Street and must be relocated to
clear the site for the Fine Arts Center.
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The notification of Contract Award for Classrooms, Computer
Labs and Faculty Office Renovations for the Lyons Computer Lab
and the Wood Dental Clinic was presented for information. This
project consists of substantial interior renovations to provide a new
Computer Learning Center and Data/Systems Offices and renovations
to the undergraduate Dental Clinic areas. The construction budget is
$1,041,300. Seven bids were received and the contract was awarded
to Viking Enterprises, Inc. who submitted the low bid of $732,000.
The Capital Project Status Report was presented and the high-
lights are:
The VCU Day Care Center at Floyd and Morris Streets is
open and in full operation.
The Fine Arts Center Project is experiencing delays due to
changes in programming the space in the new building.
The Kahootz property at Cary and Pine Streets will be cov-
ered with gravel for use as surface parking.
Universal Ford site development is in progress. Approval
has been received from the State to demolish the two struc-
tures on the south side for additional surface parking for
commuter students.
Design assumptions relating to cooling capability and eleva-
tor replacement for the West Hospital Renovations project are
being reevaluated.
The Ambulatory Care Facility is 7% complete.
The MCV Campus Steam Plant working drawings submitted
by the engineering design firm were rejected by the Univer-
sity due to quality deficiencies.
Undertaking repairs to the MCV Hospitals" Visitors Parking
Deck are being reassessed because of other construction
projects now underway and planned for the MCV Campus.
The Medical Sciences Building Update was presented for
information. The purpose of this project is to provide a first
phase of new construction to meet the need for additional research
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space for the health sciences. The Phase I project is divided into
two sub-projects. Sub-project 1 includes site work, demolition and
tunnel relocation and is currently nearing completion. Sub-project
2 includes new construction of the Medical Sciences Building along
with plaza development between the new structure and the Egyp-
tian Building. Medical Sciences Building sitework has been delayed
one month due to wet weather. Working drawings for the building
are awaiting approval by the State before the project can be bid.
Mr. Meador reported for the Student Affairs Committee. A
report on Co-op/Internship Programs and Student Public Service
Activities was presented. Cooperative education and internships
are educational strategies that allow students to integrate periods
of academic studies with periods of relevant work experience.
Traditional academics are blended with paid and non-paid work
assignments in industry, business, government and non-profit
organizations. In its most successful form, cooperative education
and internship assignments complement the educational philosophy of
VCU and provide students with an orderly progression of super-
vised work experiences.
The VCU Mentoring Program, developed in 1989, is a unique
program for urban high school students who have demonstrated
potential for college (as evidenced by academic performance) and
who are economically disadvantaged. These students have been
nominated for a scholarship to VCU, provided that high school is
completed and the academic requirements for enrollment are met.
Students are matched with college student mentors and take part
in a series of campus and independent activities with these men-
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tors. The program is administered by the Psychology Department
as a component of the Going-for-the-Goal Project.
VCU student participation in a volunteer project was dis-
cussed. Blood drives were held on September 10, November 16,
February 9 and April 20 with a total of 415 donors giving 356
usable units of blood. The Richmond Metropolitan Blood Center
was very pleased with the contribution level. Twenty-nine stu-
dents actively participated as Carver Promise Project mentors this
year and another 29 have been selected to serve in 1993-94. A
total of 55-60 VCU students are expected to be mentors next
year. The Volunteer Service Coordinator saw many students and
made referrals to community agencies based on the interest and
needs of those seeking assistance.
An Executive Summary of Graduate Studies at VCU was
presented. Highlights from the summary are:
There were 4,369 applications to graduate school in Fall
1992, a 42 percent increase over Fall 1991.
As the number of applications has increased, the percentage
of students accepted into graduate school has decreased from
44 percent in Fall 1991 to 35 percent in Fall 1992.
5,256 graduate students were enrolled in Fall 1992, up 4
percent from the 5,048 students enrolled in Fall 1991. There
were increases among all graduate levels: master's, doctor-
al, and non-degree seeking.
During 1991-92, 1,007 master's degrees and 108 doctoral
degrees were awarded, an increase of 110 master's degrees
and 3 doctoral degrees from 1990-91.
Current rates of increase of master's level and doctoral
level students are five percent and three percent, respec-
tively. Both of these rates exceed the recommended rates of
two percent for master's students and one percent for doctor-
al students stated in the "Report of the Commission on the
Future of the University."
On motion made and seconded, the following items from the
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Consent Agenda were approved:
Board of Visitors
Minutes of a Meeting held March 18, 1993
Minutes of a Meeting held April 30, 1993
Academic Policy Committee
Minutes of a Meeting held March 17, 1993
Athletic Policy Document
Advancement Committee
Minutes of a Meeting held March 17, 1993
Policy for Approval of Fundraising
Initiatives at VCU
Audit Committee
Minutes of a Meeting held March 18, 1993
Executive Committee
Minutes of a Meeting held February 19, 1993
Finance and Investment Committee
Minutes of a Meeting held March 17, 1993
Health Affairs Committee
Minutes of a Meeting held March 17, 1993
Upgrade of Hospital Mainframe
Property Committee
Minutes of a Meeting held March 17, 1993
Lease of Space at 1314 West Main Street
Lease of Space at 1500 West Broad Street
Student Affairs Committee
Minutes of a Meeting held March 17, 1993
The following items were submitted for information:
Academic Policy Committee
Report on Faculty Salaries and Compensation
Report on Grants and Contracts
Advancement Committee
Fundraising for Capital Projects at VCU
Advancement Division and
Governmental Relations Reports
Finance and Investment Committee
Quarterly Budget Report: March 31, 1993
Health Affairs Committee
Hospital Finances:
Statistics - July, 1992 through March, 1993
Contract for Communication Services for MCV
Campus
Quality Assurance Educational Session
Property Committee
Notification of Contract Award - Wood Memorial and
Lyons Buildings Renovations
Capital Project Status Report
Medical Sciences Building Update
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Student Affairs Committee
Report on Co-op/Internship Programs and Student
Public Service Activities
Report on Graduate Admissions, Enrollments and
Degrees Awarded
Project Plans for the Virginia Biotechnology Center were
presented. The Virginia Biotechnology Center is the first building
of a planned 1.5 million square foot research and development
complex on 20 acres in downtown Richmond. This facility is the
first step towards developing the Research Park and creating a
center for fostering economic development initiatives in biotech-
nology research. The total budget of $5 million for this building
is funded by the General Obligation Bond Bill. The project is
located on the northeast corner of 8th and Leigh Streets with
entrances on both streets. The building a two- story 20,500
gross square feet building. The interior is comprised of one large
meeting room with capacity for 100 persons, a board room, confer-
ence room/kitchenette , eight life science incubator laboratories,
laboratory support spaces, administrative offices and an electronic
library. A two-story atrium will connect the Center with Biotech
One, a privately funded laboratory building, which shares the site
with the Center. The atrium will act as the main entrance to both
buildings. Brick with cast stone highlights is the exterior finish
material. On motion made and seconded, the Project Plans for the
Virginia Biotechnology Center were approved.
Mr. Gregory appointed the Board Nominating Committee for
the Rector. Mr. Townes was asked to serve as Chair with Dr.
Johnson and Mr. Siegel serving as members.
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On motion made and seconded, the following Resolution was
approved:
WHEREAS, Roger L. Gregory, Esquire has faithfully and
with great distinction served the VCU community for eight
years. He served as Vice Rector in 1991-92 and as Rector
in 1992-93.
WHEREAS, Roger Gregory is to be commended by the Board
of Visitors of Virginia Commonwealth University for his
outstanding tenure as Rector for his intellectual direction,
and his collegiality. He has promoted a harmonious Board
which under his leadership has advanced the purposes,
goals, and objectives of this University.
NOW, THEREFORE BE IT RESOLVED that the Board of Visi-
tors of Virginia Commonwealth University salute Roger for his
new endeavor as a member of the Board of Visitors of Virgin-
ia State University and know he will excel as he has with
Virginia Commonwealth University.
On motion made and seconded, the Board convened into
executive session to discuss certain personnel matters involving
the performance of identifiable employees or faculty of VCU, and to
discuss the evaluation of performance of departments or schools of
VCU where such matters regarding such individuals might be af-
fected by such evaluation including the Faculty Appointments and
Changes in Status and other Personnel Actions, Full and Consulta-
tive Hospital Privileges, Continuing Faculty Salaries, Executive
Salaries Proposed Faculty Compensation Plan, Proposed School of
Dentistry Private Practice Scale, Proposed School of Medicine
Faculty Scale, Promotion and Tenure Recommendations, Revised
Bylaws and Rules and Regulations to the Medical Staff, the Imple-
mentation of the New Health Care Provider Salary Structure effec-
tive July 1, 1993, and the Annual Evaluation of Patient Care Staff
and to discuss the condition, acquisition and use of real property
for public purpose, or of the disposition of publicly held proper-
14
ty, or of plans for the future of a state institution of higher
education which could affect the value of property owned or desir-
able for ownership by such institution, and to discuss the invest-
ing of public funds including a Report by Investment Managers on
Annual Performance and the Restructure of the VCU Operating
Pool, and to discuss legal matters and probable litigation with its
attorney relating to the aforementioned Audit Reports as may be
necessary, and to discuss matters relating to gifts, bequests, and
fundraising activities and the approval of the Named Funds Report
and Update from the Vice President for Advancement as authorized
by Section 2.1-344 (a)1, (a)3, a(6), a(7) and a(8) of the Virginia
Freedom of Information Act.
Following executive session, on motion made and seconded,
the following Resolution was approved by Roll Call Vote:
Virginia Commonwealth University hereby certifies that, to the best
of each member's knowledge, (i) only public business matters
lawfully exempted from open meeting requirements by Virginia law
were discussed in the executive session meeting to which this
certification resolution applies, and (ii) only such public busi-
ness matters as were identified in the motion convening the execu-
tive session meeting were heard, discussed or considered by the
Board of Visitors of Virginia Commonwealth University.
Roll Call Vote: Ayes Nays
Mr. Roger L. Gregory, Rector X
Mr. Richard A. Arenstein X
Dr. Thomas J. Berenguer X
Rev. Constantine N. Dombalis Absent
Mrs. Rozanne G. Epps Absent
Mr. Lawrence W. Framme, III X
Dr. Robert D. Gilmer X
Dr. William E. Holland X
Dr. Harry I. Johnson, Jr. X
Mr. Richard L. Meador Left before voting
Dr. Clifton L. Peay X
Mr. Stuart C. Siegel X
Ms. Eva S. Teig Absent
Mr. Clarence L. Townes, Jr. X
Mr. Jay M. Weinberg X
Mr. F. Dixon Whitworth, Jr. X
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VOTE:
Ayes: 12
Nays: 0
ABSENT DURING MEETING: 3
ABSENT DURING VOTING: 4
On motion made and seconded, the Board accepted the execu-
tive session Committee Reports, the Report of the President and the
Report of the Presidential Evaluation Committee; approved the
Faculty Appointments and Changes in Status and other Personnel
Actions, Full and Consultative Hospital Privileges, Continuing
Faculty Salaries including the addendum, Executive Salaries, the
Proposed Faculty Compensation Plan, the Proposed School of Den-
tistry Private Practice Scale, the Proposed School of Medicine
Faculty Scale, the Named Funds Report, Promotion and Tenure
Recommendations, the Restructure of the VCU Operating Pool, the
Revised Bylaws and Rules and Regulations of the Medical Staff as
amended, Health Care Provider Salary Increases; accepted the
Report by Investment Managers on Annual Performance, the Annu-
al Evaluation of Patient Care Staff, and the Report of the General
Counsel.
The meeting was adjourned at 1:20 p.m.
Rozanne G. Epps, Secretary
