MINUTES OF A REGULAR MEETING OF THE
BOARD OF VISITORS OF
VIRGINIA COMMONWEALTH UNIVERSITY
July 15, 1993
A regular meeting of the Board of Visitors of Virginia Com-
monwealth University was held on Thursday, July 15, 1993, at 9
a.m. in the University Meeting Center.
Present were Messrs. Gregory (Rector), Arenstein, Framme,
Meador, Siegel, Townes, Weinberg and Whitworth; Drs. Berenguer,
Dombalis, Gilmer, Johnson and Peay; and Mesdames Epps and Teig.
Dr. Holland was absent. Also present were Drs. Trani, Dewey,
Duvall, Jones and Harris; Messrs. Bruegman, Gehring, Ross and
Wyeth; and Mrs. Price.
Mr. Gregory called the meeting to order. Mr. Townes re-
ported for the Board Nominating Committee for the Rector consisting
of himself, Dr. Johnson and Mr. Siegel. The Committee unanimously
recommended that Mr. F. Dixon Whitworth, Jr. be elected Rector for
the 1993-94 year. On motion made and seconded, Mr. Whitworth was
unanimously elected Rector of the Board for a one-year term.
Rector by the Board. The University is very fortunate to have a
Board that provides the level of service that this Board does. Mr.
Mr. Whitworth stated that he was honored to be elected as
Whitworth thanked Mr. Gregory for all of his leadership and dedica-
tion to the University.
The President's Report followed:
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Dr. Trani introduced the following people:
Dr. Mary Snyder Shall, Assistant Professor, Physical Thera-
py, is serving as President of the Faculty Senate for 1993-94
and Dr. Richard M. Costanzo, Associate Professor of Physiol-
ogy, will be representing the MCV Campus on the 1993-94
Faculty Senate.
Ms. Jennifer L. Vest will be working in the Provost's Office
through July as a student intern from University of Rich-
mond's Jepson School of Leadership Studies. This is the
first year that VCU has offered Jepson scholars a practical
learning experience on leadership issues, and it is an excit-
ing interchange between the two universities.
Reverend Dr. Roger L. Nicholson is participating in an
Externship in the Ph.D. Urban Services Program through
the School of Education. Dr. Nicholson will be working on
the implementation guidelines for the Strategic Plan.
In a recently released SCHEV report, it was noted that
tuition and required educational and general (E&G) fee in-
creases for 1993-94 have moderated from previous years, but
still exceed 10 percent, on the average, for the third con-
secutive year. Tuition and E&G fees for resident (Virginia)
undergraduates will go up an average of $314, or 11.6 per-
cent, at doctoral-granting universities; $189, or 9.5 per-
cent, at comprehensive colleges and universities; and $89, or
7.3 percent, at community colleges. VCU and JMU are the
lowest of the six doctoral institutions.
Enrollment applications are up 5.5%, acceptances are up 5.8%
and transfer students are up 4.1%. This will be a better and
larger freshman class.
Research dollars are over $80M. The Research budget con-
tinues to grow. This is another indicator of the quality of
VCU.
The Strategic Plan discussions continue. The Strategic Plan
is a companion piece for the Hospitals Plan completed last
year. At the September Board meeting, members of the
Commission will be present to discuss the document. The
Strategic Plan is the most comprehensive road map. Any
concerns the Board has regarding the Strategic Plan need to
be submitted to either Dr. Trani or Dr. Harris.
Dr. Berenguer reported for the Advancement Committee.
The Goals and Objectives for January 1, 1993, to July 30, 1993,
were presented. Some of the highlights are:
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Develop and implement a plan for the dissemination of the
University's Strategic Plan to the family of volunteers and
donors beginning with the MCV Plan. (Result: All Universi-
ty volunteer groups received early copies of the plans.)
Have total current new gifts and pledges to $10.8 million by
June 30, 1993. (Result: $12 million was raised. This was
up 56% over last year and exceeded the original goal of 32%.)
Begin identifying large foundation sources for new MCV
interdisciplinary centers and for the Life Sciences Building.
Develop a new staffing plan for External Affairs functions on
the MCV Campus. Identify and recruit advancement a leader
for the MCV Campus.
Have a new officer on board at the Massey Cancer Center
and continue to assist in expansion of the Massey Club.
Come to some closure on building expansion by the summer.
Must have a major lead gift before formal campaign can be
announced. (Result: Shep Haw hired in February 1993.
Massey Club is over its goal. Major gift proposal is moving
forward on schedule.)
Have a clearer understanding of the naming opportunities
within the new Fine Arts Building and submit naming propos-
al. (Result: Gallery will be named for $2 million bequest.
Building being redesigned.)
Find donor to name Ambulatory Care facility. (Result: Ap-
proach to donor will be made in August 1993.)
Identify four areas for major, university-sponsored alumni
events. Year two of Chapter System study process. (Re-
sult: L.A., N.Y., San Diego and West Richmond.)
Move Academic Campus Parents Day to fall - October 16.
(Result: It will be held on same weekend as Parents and
Partners Day at MCV Campus on October 16 and 17.)
Have MCV Alumni House transferred to the University and
have raised $200,000 for interior by summer. Need an addi-
tional $1.4 million. (Result: Capital project proposal will
go on 1994 legislative calendar. House transfer cannot take
place until July 1994. $250,000 has been raised.)
Complete search for Executive Director of University News
Services. High Priority. (Result: Two good candidates in
pipeline as of July 7, 1993.)
Begin planning to shift Convocation to Founders' Day in 1994.
(Result: Permission received and Fred Wayne and Sue Ann
Messmer will implement.)
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Mr. Meador reported for the Academic Policy Committee.
A progress report on the SACS Self-Study was presented.
During the past year, subcommittees met regularly, collected detailed
assessment information from all academic units, and designed a set of
four survey instruments. The four surveys covered teaching and
research faculty, adjunct faculty, administrative and professional
faculty, and classified staff, and were designed to elicit perceptual
information from all segments of the University. An ongoing senior
satisfaction survey and several studies of the opinions of VCU's
various communities were continued. During the fall semester, dis-
tribution of the surveys began. The spring semester was devoted
to careful review of the subcommittee reports and numerous rewrites
by the subcommittees. It is anticipated that the document will be
completed by September 1, 1993, and will be reviewed university-
wide during September and October. The Self-Study report, fact
book, and administrative action plans will be printed during the
month of December in response to self-study recommendations and
suggestions. Mailing is scheduled for early January 1994.
The Strategic Plan was presented for review. The Commit-
tee reviewed the following items:
Strategic Direction No. 2: Strengthen and enhance the
quality of educational experience for the University's under-
graduates
Strategic Direction No. 3: Strengthen and enhance the
quality of the University's graduate programs.
Strategic Direction No. 4: Promote targeted areas of
excellence among the University's educational programs,
including the re-allocation of resources where appropriate.
Under Strategic Direction No. 4: The Committee
recommended that the School of Business be moved from the
number three position to the number one position.
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Mr. Weinberg reported for the Audit Committee. There have
been 27 audits with 24 of these audits 90% complete. Technology
offers a special challenge to the audit function. The remainder of
the report will be presented during executive session.
Dr. Peay reported for the Finance and Investment Commit-
tee. The Committee reviewed the investment report for the quarter
ended March 31, 1993. The total of all funds under management by
VCU and its affiliated foundations at March 31, 1993 was $146 mil-
lion . Of this $146 million, $50 million is managed by the Universi-
ty, $26 million by the VCU Foundation, and $70 million by the MCV
Foundation. For the year ended March 31, 1993, the total return
for each fund was :
University Cash Management Operating Pool 8.9%
VCU Foundation 15.8%
MCV Foundation 11.4%
Dr. Johnson reported for the Health Affairs Committee. The
contract for Housekeeping Management Services was presented for
information. A Request for Proposals was issued on March 27, 1992,
for the purpose of providing housekeeping management services to
MCVH. The services would include maintenance, management and
supervision, development and participation of hospital staff and
contract managers in the Continuous Quality Improvement Program, and
active participation in the appearance of the hospital. Proposals were
received by Marriott Facilities Management and Morrison- Crothal Support
Services, Inc . The contract was awarded in the amount of $933,658 for
the first year to Morrison- Crothal Support Services, Inc. The decision
was based on a stronger commitment to the cited services.
A contract for service fees for Organ and Tissue acquisition was
presented for information. The contract was awarded to Lifenet for an
estimated $766,000 for the fiscal year 1993-94. Lifenet, being the sole
coordinator for organ and tissue recovery activities in Central
Virginia, will coordinate these activities for MCVH.
The report on Hospital Finances was presented. Gross patient
service revenues total $486.2 million compared to a budget of $494.3
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million. Thus, actual is $8.1 million, or 1.6 percent under budget.
The majority of this variance relates to the decrease in patient days
and admissions. Total operating revenue for the period of $321.2
million approximate the budget of $321.7 million. Favorable settlements
from Blue Cross and other third parties contribute to operating revenue
not being below budget. Adult patient days are 3.1 percent below
budget while adult admissions are 3.5 percent below budget.
Emergency Room and outpatient visits are 2.9 percent above budget.
MCVH has funded $14.1 million of depreciation for the eleven month
period ending May 31, 1993, and anticipates funding an additional $1.3
million in June, 1993. The favorable operating results noted above,
along with continued accounts receivable reductions, enable the
Hospitals to fully fund depreciation for the fiscal year. The Hospitals
will request a capital release for the fourth quarter of fiscal 1993.
The response to HJR 623 - Teaching Hospital Study was presented
for information. The plan of action for VCU/MCVH was set forth with
two objectives:
1. Position the hospital to be competitive in
the new marketplace of managed care.
2. Resolve the indigent care funding problem.
In order to accomplish these two goals, a recommended plan of action
was established. It will develop an approach to accommodate MCVH's
participation in a managed competition environment through a new
governance arrangement or statutory change. The plan would seek an
indigent care policy for the Commonwealth which would fully fund the
cost of indigent care until the funding is addressed by health care
reform.
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The Updated University Strategic Plan was presented for
information. The plan determines a set direction for the University
from enrollment size to teaching and learning. The implementation plan
will focus on the identification of individuals responsible for carrying
out set recommendations, a description of tasks for these individuals,
and a time frame for their work.
The release of Capital Equipment Funds was presented. The
reserves available for recommended release through reserve funding for
the third and fourth quarter of 1993 was $18,190,800. This amount was
recommended for release for capital equipment funds and renovations.
The Report on the MCV Medical Staff and Hospitals Quality
Assessment and Improvement Plan was presented. The purpose is to
ensure that the optimal quality of care and service are provided
throughout the institution to all customer groups, within the available
sources, in support of the institutional mission, vision and values.
The Quality Assessment and Improvement Plan encompasses the multiple
quality initiatives needed to facilitate the identification of
opportunities to continually improve processes that impact care within
MCVH. The plan was developed with the goal of meeting and/or
exceeding customer expectations. It will consist of eleven committees
and groups that will be responsible for delegation, organization, and
implementation of processes for the plan . A Quality Council will be
created to accomplish these goals. The remainder of the report will be
presented during executive session.
Mr. Siegel reported for the Property Committee. The lease of
space at 6-8 South Harris Street was presented for the relocation of the
Department of Military Science under a contract awarded by Technical
8
Associates, Inc. The University agreed to pay $34,960 on a two-year,
full service lease with three one-year renewal options.
A lease for space at 1000 West Franklin Street was presented.
This lease is for 3,000 square feet of administrative office space. Use
of the space was planned for the grant-funded Life Skills Center. On
motion made and seconded, the lease of 1000 West Franklin Street was
approved with Mr. Weinberg abstaining. Subsequent to the July 14
meeting, grant funding for the Life Skills Center was not received.
With approval of the Commonwealth, Capital Planning and Real Estate
Development was substituted as the tenant. The lease terms remained
the same.
The renewal of the lease of 43,476 square feet of
administrative office space at 327 West Main Street, including 88
adjacent parking spaces, was also presented. The owner, the VCU
Foundation, has refinanced its short-term debt, and its lender has
requested that the lease term correspond with the debt term. Renewal
of this lease will provide for the continued use of the building by the
Financial Operations Division, University Enrollment Services, and a
unit of the Human Resources Division. The University has agreed to
enter into a five-year lease with an option for one five-year renewal at
the cost of $378,241 per year plus operating and maintenance costs.
The renewal of the lease for 32,086 square feet of space in the
Cathedral Properties, 1128 Floyd Avenue, 107 North Morris, 10 North
Brunswick, 1315 Floyd Avenue, and 43 parking spaces, was
presented. The owner, the VCU Foundation, has refinanced its
short-term debt, and its lender has requested that the lease term
correspond with the debt term. The renewal of this lease will provide
9
for the continued use of these buildings by the University and the VCU
Day Care Center. It was recommended that a five-year lease with one
five-year renewal option for the cost of $160,000 per year plus
operating and maintenance costs be approved.
The project plans for the Cardiology Specialty Area were
presented. The Medical College of Virginia Hospitals will renovate a
portion of the third floor of Main Hospital for the Cardiology Specialty
Area. These renovations will provide the unit with an appropriate and
efficient space to meet the increased demand for Cardiology's services
and to provide for advancements in technology. The scope of work
includes renovations and new construction of 5,500 GSF of interior space
to accommodate patients and their families, new equipment and efficient
management of Hospital staff . The estimated project costs for the area
are $715,700.
The project plans for the Radiology Specialty Area were
presented. The renovations to the Radiology Specialty Area are driven
in part by the need for an adjacent function, the Cardiology Specialty
Area, to increase in size, requiring Radiology to relocate several
an giography rooms. The need for the project is also driven by
increased demand for services, advancement in technology, and
inadequate preparatory and patient holding spaces . The estimated
project costs for the area are $1,180,000.
The architect selection for the Recreation Facilities, Phase II
was presented. The project consists of four components, the Thalhimer
Tennis Center Support Facility, the Cary Street Athletic Field Support
Facility, renovations to the Franklin Street Gymnasium pool, and new
construction of an 11,000 GSF swimming pool facility on the MCV
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Campus. Of the firms interviewed, the firm of Worley Associates was
recommended for their expertise and experience in planning and
designing similar facilities.
The Notification of Contract Award for the MCV Campus
Replacement Steam Plant - Boiler and Related Equipment Procurement
was presented for information. This project consists of purchasing
three boilers for the new steam plant complex in the Shockoe Valley
area. Five companies responded with written proposals. It was
recommended to contract with Babcock and Wilcox, however the contract
award was postponed pending possible litigation by two of the firms not
selected.
The Capital Project Status Report was presented. Highlights
are:
As the Fine Arts Center Project has progressed through
detailed planning and design, the program scope has
expanded, which has compromised the architectural design and
caused the costs to exceed the approved budget. The
consulting architect and the School of the Arts have been
working to bring the project scope and budget back together
in order to develop an appropriately designed "signature"
facility on the corner of Belvidere and Main Streets.
Construction of the Ambulatory Care Facility is on schedule.
Discussions are continuing to determine how to approach the
finishing of selected floors in the new building and how to
coordinate the renovations in the Nelson Clinic with the
construction of the new facility. A decision may be made to
alter the construction schedule to accommodate essential
changes in programs and services in the new facility or in
Nelson Clinic.
Demolition of Dooley and St. Philips Hospitals has been
completed and the relocation of steam lines and utilities is
progressing. Weather conditions this spring delayed the
relocation of the utility systems. Working drawings for the
nine-story building are pending approval by the State;
bidding for the project is expected to be initiated this month.
Repairs to the MCV Hospitals Visitor's Deck include two phases.
Phases I provides structural repairs to the "S" deck including
replacement of the concrete slabs on levels 5 thru 8. Phase I
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also includes modifications to the entrance of the deck,
improvements to lighting and installation of safety rails.
Working drawings for this phase have been completed and
approved by the State. Phase II includes structural repairs
to levels 1 thru 4, a security system for the entire deck, and
the addition of elevators to serve both the "S" and "E" decks.
MCV Hospitals together with Parking and Transportation have
been evaluating alternatives for accomplishing phases I and II
to minimize operational disruption of the parking services for
patients and visitors. Bidding for Phase I has been delayed
until resolution of the repair schedules for both phases can be
completed.
Mr. Meador reported for the Student Affairs Committee. A
report on the Academic Progress of Athletes and the Graduation Rates
was presented. Highlights of this report are:
Based on four different freshman classes, student athletes
have a higher graduation rate than that of all incoming
freshmen at VCU.
Among the 179 student athletes who entered VCU between
1983 and 1986 as freshmen, 101 (56 percent) have graduat-
ed. This figure compares to a 42 percent graduation rate for
all VCU freshmen entering between 1983 and 1986.
The graduation rate for student athletes who transferred to
VCU between 1983 and 1986 is virtually the same as for all
the students who transferred to VCU during the same time
period, 55 percent and 58 percent, respectively.
59 percent of the male athletes who entered as freshmen
graduated, compared to 36 percent of all male freshmen.
63 percent of the female athletes who entered as freshmen
graduated, compared to 48 percent of all female freshmen.
34 men and 15 women who were athletes graduated during
the 1992-93 academic year.
The Strategic Plan was presented for review. After the
plan was presented to the President on June 4, 1993, and a few
revisions were made, copies of the plan were sent to various groups
and made available for all faculty, students and staff to review.
The following directions were discussed and changes recommended:
Strategic Direction No. 12 (Section 1): Foster a climate
that promotes a high quality of life for students as members
of the University community. A task force is being created
to identify ways of enhancing the quality of the student life
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experience at VCU, and the Committee will follow-up on the
implementation plans for this recommendation.
Strategic Direction No. 2: Strengthen and enhance the
quality of the educational experience for the University's
undergraduates. Section H. The establishment of a dormito-
ry-based Residential College should be explored. The Stu-
dent Affairs Committee will be reviewing this direction in
the future.
Strategic Direction No. 4: Promote targeted areas of
excellence among the University's educational programs,
including the re-allocation of resources where appropriate.
Under Strategic Direction No. 4. The Committee
recommended that the School of Business be moved from the
number three position to the number one position.
Strategic Direction No. 8: Significantly upgrade the
University's use of information technology. Section C: Use
instructional technology as a means for delivering instruc-
tion more effective. The Committee recommended more empha-
sis on technology as a means of enhancing organizational and
instructional efficiency.
Strategic Direction No. 9: Make changes in the organization-
al structure of the University that are needed to enhance its
ability to fulfill its teaching, research and public service
missions. Recommendations in the plan regarding duplication
lists need to be enforced with elimination of course offer-
ings that cut across schools.
On motion made and seconded, the following items from the
Consent Agenda were approved:
Board of Visitors
Minutes of a Special Meeting held May 20, 1993
Minutes of a Meeting held May 21, 1993
Academic Policy Committee
Minutes of a Meeting held May 20, 1993
Advancement Committee
Minutes of a Meeting held May 20, 1993
Audit Committee
Minutes of a Meeting held May 20, 1993
Executive Committee
Minutes of a Meeting held May 21, 1993
Finance and Investment Committee
Minutes of a Meeting held May 20, 1993
Health Affairs Committee
Minutes of a Meeting held May 20, 1993
Release of Capital Equipment Funds
Quality Assessment and Improvement Plan
Property Committee
Minutes of a Meeting held May 20, 1993
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Lease of Space at 6-8 South Harrison Street
Lease of Space at 1000 West Franklin Street
Lease Renewal of Space at 327 West Main Street
Lease Renewal of Space - Cathedral Properties
(10 North Brunswick Street, 1128 Floyd
Avenue, 1315 Floyd Avenue, 107 North Morris
Street)
Project Plans for Cardiology Specialty Area
Project Plans for Radiology Specialty Area
Architect Selection - Recreation Facilities,
Phase II
Student Affairs Committee
Minutes of a Meeting held May 20, 1993
The following items were submitted for information:
Academic Policy Committee
Progress Report - SACS Self Study
Strategic Plan Update
Advancement Committee
1992-93 and 1993-94 Goals and Objectives
Advancement Division and
Governmental Relations Reports
Finance and Investment Committee
Investment Report for the Quarter Ended
March 31, 1993
Health Affairs Committee
Contract for Hospital Housekeeping Management
Contract for Service Fees for Organ and
Tissue Acquisition
Hospital Finances:
Statistics - July, 1992 through May, 1993
Response to HJR 623
Strategic Plan Update
Property Committee
Notification of Contract Award - MCV Campus
Replacement Steam Plant - Boiler Procurement
Capital Project Status Report
Student Affairs Committee
Report on Academic Progress of Athletes/
Graduation Rates
Strategic Plan Update
Revisions to the Patient Bill of Rights and Responsibilities,
Policy #4100.01 were presented and discussed. The word race
should be included in Section II, #A-1. The revisions are: "health
needs regardless of race, ethnicity, religious preference, gender,
age, marital status, or sexual orientation." In Section II, item 8,
"They may consent to or refuse to consent after discussion with the
14
individual authorized to conduct this research." On motion made
and seconded, the revisions to the Patient Bill of Rights and Respon-
sibilities were approved.
Mr. Whitworth appointed Mr. Townes to serve as chair for
the Nominating Committee for Officers and Members of the Executive
Committee. Mrs. Epps, Mr. Weinberg and Mr. Whitworth will serve
as members.
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 affect-
ed by such evaluation including the Faculty Appointments and Chang-
es in Status and other Personnel Actions, Full and Consultative
Hospital Privileges, and the Annual Reappointment of Affiliate and
Clinical Faculty and the Patient Care Staff (Non-Physician) Competen-
cy Data, and to discuss the investing of public funds including the
Revision of Statement of Investment Objectives, Policies and Guide-
lines for the Operating Pool and a Report on the Investment Manager
Selection, 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 including the approval of the Named Funds
Report as authorized by Section 2.1-344 (a)1, 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:
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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 dis-
cussed in the executive session meeting to which this certification
resolution applies, and (ii) only such public business matters as
were identified in the motion convening the executive session meeting
were heard, discussed or considered by the Board of Visitors of
Virginia Commonwealth University.
Roll Call Vote: Ayes Nays
Mr. F. Dixon Whitworth, Jr., Rector X
Mr. Richard A. Arenstein X
Dr. Thomas J. Berenguer X
Rev. Dr. Constantine N. Dombalis X
Mrs. Rozanne G. Epps X
Mr. Lawrence W. Framme, III X
Dr. Robert D. Gilmer X
Dr. William E. Holland Absent
Dr. Harry I. Johnson, Jr X
Mr. Richard L. Meador X
Dr. Clifton L. Peay X
Mr. Stuart C. Siegel X
Ms. Eva S. Teig Left before voting
Mr. Clarence L. Townes, Jr. Left before voting
Mr. Jay M. Weinberg X
VOTE:
AYES: 12
NAYS: 0
ABSENT DURING MEETING: 1
ABSENT DURING VOTING: 3
On motion made and seconded, the Board accepted the execu-
tive session Committee Reports, the Report of the President; ap-
proved the Faculty Appointments and Changes in Status and other
Personnel Actions including the appointment of Dr. Howard P.
Tuckman as Dean of the School of Business, the Full and Consulta-
tive Hospital Privileges with Mr. Arenstein and Dr. Peay abstaining,
and the Annual Reappointment of Affiliate and Clinical Faculty and
the Patient Care Staff (Non-Physician) Competency Data; approved
Revision of Statement of Investment Objectives, Policies and Guide-
lines for the Operating Pool and a Report on the Investment Manager
16
Selection; approved the Named Funds Report; and accepted the
Report of the General Counsel.
The meeting was adjourned at 12 :15 p . m .
