MINUTES OF A REGULAR MEETING OF THE
BOARD OF VISITORS OF
VIRGINIA COMMONWEALTH UNIVERSITY
September 22, 1994
A regular meeting of the Board of Visitors of Virginia Com-
monwealth University was held on Thursday, September 22, 1994, at
9 a.m. in the University Meeting Center.
Present were Messrs. Whitworth (Rector), Flippen, Framme,
Meador, Siegel, Townes and Weinberg; Drs. Dombalis, Gilmer, John-
son, Smith, Vaughan and Wootton; and Mrs. Teig. Mr. Arenstein
and Ms. Vaughan were absent. Also present were Drs. Trani, Dew-
ey, Gloster, Harris, Jones, Rhone and Schexnider; Messrs.
Bruegman, Bunce, Cribbs, Jez, Smith and Wyeth; and Mesdames
Messmer, Perry-Johnson and Price.
Mr. Whitworth called the meeting to order.
The President's Report followed.
Dr. Trani introduced VCU's new student representative to
the Board, Mr. Ted McCaskey; Administrative Associate, Dr.
Michael Davis; and the Community Service Associates for the
Summer 1994; and Fall 1994. The Community Service Associ-
ates are: Dr. Mary Clement, Ms. Carolyn M. Lambert, Ms.
Susan Neal, Ms. Rosa Jimenez-Vasquez for the Summer 1994;
and Dr. Robert Godwin-Jones, Dr. Sheary Johnson, Mr.
Daniel Ream, Dr. Diane Simon and Dr. Blue Wooldridge for
Fall 1994.
The graduate programs at Virginia Commonwealth University
once again achieved top ranking in U.S. News & World Re-
port's 1994 Best Graduate Schools edition. For the second
year in a row, the Department of Health Administration was
ranked ninth, the School of Pharmacy was ranked tenth, and
the School of Dentistry was ranked 13th among the top profes-
sional graduate programs in the country. For the first time,
the School of the Arts was ranked among the top art schools
for graduate study -- 25th in the fine arts category.
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Mr. Meador reported for the Academic Policy Committee.
The Program Proposal for the School of Engineering was presented.
The program proposal has been under continuous review by the
Academic Planning Committee, the Industrial Advisory, two State
Council of Higher Education of Virginia (SCHEV) representatives,
and the School's planning team of senior administrators. The pro-
posed engineering program has strong orientations toward high-tech
manufacturing, medicine, and biotechnology, and is designed to
produce students who are highly competent in math and the sciences
but also have well-developed skills in writing, speaking, and inter-
personal relations. Foreign language and culture will be stressed so
that the School's graduates can better function globally, and the
School's programs will stress intellectual integration and synthesis
to temper the traditional academic emphasis on analysis and reduc-
tionist thought alone.
The Committee focused on the expected quality of faculty
and students. The proposal contained recommendations for the re-
cruitment of distinguished faculty; the resources needed, and the
sources of such resources; the unique features of the curriculum
and program; the recruitment of students; and the opportunities for
the close tie-in with the MCV Campus. The biomedical strengths will
allow the School to realize the level of quality expected.
Prior to submission to the Board of Visitors, the program
proposal was reviewed and approved by the University Undergradu-
ate Curriculum Committee and the Committee on Academic Affairs of
the University Council.
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Mr. Framme reported for the Advancement Committee. The
Legislative Update was presented. The effects of the Governor's
parole plan are under careful scrutiny as the University has been
asked to submit budget cuts of 2, 4, and 6%. Area neighborhood
concerns regarding parking issues resulting from the construction of
the School of Engineering continue to be addressed. VCU will contin-
ue to work with legislators in the State government as efforts to
reengineer or downsize the University are being realized. Board
members have been asked to work with the Office of Governmental
and Community Relations in meeting with officials to provide informa-
tion on VCU's efforts.
The Media Relations Plan Review was presented. The goal
of the Media Relations Plan is to depict VCU as a model urban insti-
tution where key issues of the 90's are being addressed, and where
significant contributions to Richmond, the region, and the nation are
being made. A timetable of both short and long-term goals was creat-
ed to raise the morale of the office and to increase the productivity
and quality of publications from News Services.
Mr. Weinberg reported for the Finance and Investment Commit-
tee. A Contract Notification for the Financial Advisory Services was
presented. The University and organizations affiliated with VCU
have engaged an outside firm to serve as a financial advisor. A
financial advisor will assist the staff in developing plans for
issuing debt and structuring bond financing. Four firms submitted
proposals. An evaluation of the proposals resulted in the selection
of Crestar Securities Corporation of Richmond to be the University's
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financial advisor. Crestar received the highest point total in the
evaluation process and offered the most attractive cost structure.
The Budget Reports for the Fiscal Year Ended June 30,
1994, and the 1994-95 Budget Plan were presented. The University
ended the 1994 fiscal year with a surplus of revenues over expendi-
tures amounting to $5.8 million, representing 1.4% of the total
annual budget. The budget for the current fiscal year is in balance.
Shortfalls in tuition revenue, due to the lower enrollments than
projected, continue to draw down budgeted contingency reserve
funds.
Dr. Gilmer reported for the Health Affairs Committee. Finan-
cial statistics for the twelve months ending June 30, 1994, were
reviewed There were some significant unknown expenses booked in
June 1994. For the twelve month period ending June 30, 1994,
there is an excess from operations of $3.7M.
Financial statistics for the two months ending August 31,
1994, show a continued decrease in patient volume, translating into
total operating income of $62.7M compared to the budget of $66.8M
and total expenses of $61.6M compared to a budget of $62.5M. The
Hospitals have been proactive in attempting to balance the budget,
and in April 1994, eliminated 150 positions and implemented a hiring
freeze in July 1994.
The Hospitals have implemented actions to balance the 1995
budget and compensate for the reduced patient volume. Expense
reductions identified to date will approximate $11.2M for the last
three quarters of 1995 (annual dollars are $13.6M), and when fully
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implemented, would result in the projected loss for 1995 of ($12.3)M
being reduced to a loss of ($1.1.)M.
The Hospitals have completed Phase I of the expense reduc-
tion strategies for the years 1995-1998. VCU/MCV Hospitals have en-
gaged Mercer Management Consulting for Phases II and III of the
expense reduction strategies currently underway at the Hospitals.
The initiative should reduce costs approximately $68M over the next
several years.
The contract for Contrast Media Non Ionic and Low Osmolari-
ty was presented. The Hospitals is exercising six months of the
first of three, one-year renewal options of the contract in order to
allow the Hospitals time to conduct a cost analysis and to establish
firm fixed pricing for the six month renewal period, June 15, 1994,
through December 14, 1994. The renewal is valued at approximately
$950,000.
The Contract for Perfusion Packs was presented. The pur-
pose of the contract is to establish firm fixed pricing for custom
perfusion packs used in surgery. The invitation to bid allowed for
the potential of six years for the contract. MCVH will initially
exercise the option to contract for four years with one two-year
renewal. The contract is valued at approximately $845,000.
Mr. Townes reported for the Property Committee. The Archi-
tect Selection for the Renovations of the Nelson Clinic was present-
ed. The architectural firm of Greaves, Finch & Associates from
Virginia Beach has been recommended to provide design services for
renovations to the seventh floor of Nelson Clinic. The $925,000
project upgrades clinical space for dermatology and provides addi-
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tional space for the extended-stay surgical recovery suite. On
motion made and seconded, the Architect Selection for the Renova-
tions of Nelson Clinic was approved.
The Capital Project Status Report was presented. Highlights
include:
Successful completion of a $2 million renovations
program in Scherer Hall at 923 West Franklin Street.
The administration and the architect are working on
options for dealing with the historic structure on the
School of Engineering site.
Value engineering is being utilized as a means of
keeping the Fine Arts Center and Convocation/Recrea-
tion Center construction projects within budget.
Delays are being encountered for general renovation
projects in West Hospital because of the State's re-
quirement for long-term, costly life and fire safety
renovations to the building. The University is commit-
ting to demolition of the building within 10 years as a
means of reaching a compromise with the State over the
extent of the life and fire safety renovations required.
The State did not approve a change order for
floors five and six of the new Ambulatory Care Facility,
which necessitated that these floors be completed in
accordance with the generic design. Any modifications
to these floors will be undertaken later after comple-
tion of the building.
Construction has begun on the Virginia Biotechnology
Research Park.
Dr. Smith reported for the Student Affairs Committee. A
follow-up report on Methods of Increasing Employment Options for
VCU Students/Graduates was presented. At the May 19, 1994, meet-
ing of the Student Affairs Committee of the Board of Visitors, Susan
Spencer, Interim Director of the University Career Center, present-
ed a report of the University Career Center. A follow-up report
was requested by the Committee on possible vehicles for increasing
employment options for VCU's students and graduates, with special
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attention on career fairs and the establishment of a state-wide or
regional clearinghouse on job opportunities.
In response to the Committee's request, Ms. Spencer
launched a study using surveys and obtaining benchmark information
to determine how best to meet the need of VCU students and gradu-
ates for the highest quality system to learn about potential employ-
ment opportunities locally, statewide, nationally, and international-
ly. The usage of available technology to create a regional or state
databank to exchange employment information between employers and
potential employees in locales of colleges and universities through-
out the Commonwealth was recommended. The continued development
of a computer clearinghouse for job opportunities was also encour-
aged.
A report on Summer School Enrollment was presented. VCU
continues to offer comprehensive, flexible summer programming, sched-
uling 636 sections from May 23 to August 19. While courses originate
in the Academic Campus schools and the College, the Division of
Continuing Studies coordinates all aspects of summer studies at
VCU. During the Summer 1994 session, the University enrolled
8,173 students. The decline of 526 students from Summer 1993 con-
tinued the enrollment trends of the 1993-94 academic year. Summer
off-campus enrollment, however, increased by almost 100 students,
and involved several new community organizations and agencies.
Some of the issues raised included: the need to change the expecta-
tions of faculty that each person will be able to teach the maximum
load allowed in the summer, reducing or eliminating small and dupli-
cative sections, and the need to attract non-VCU students. The
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impact of the tuition differential in the Business School on the
decline in that school, opportunities for attracting international
students (e.g., South African students), the increasing costs to stu-
dents, and improved strategies for attracting more students were
other issues discussed. The Committee requested that a plan for
summer of 1995 be presented at a later meeting of the Committee.
A report on the Early Fall Enrollment was presented. Based
on registrations through September 16, 1994, the University is ex-
pected to have a Fall 1994 headcount enrollment of approximately
21,348 students, representing a decline of 506 from the 21,854 stu-
dents enrolled in the Fall of 1993. The size of the Fall 1994 fresh-
man class is 1,658 students, up from 1,567 freshmen in Fall 1993.
The mean combined SAT score of matriculated, regularly admitted
freshmen is 1003, down from 1010 a year ago. The size of the trans-
fer class for Fall 1994 is 1,703 students, compared to 1,672 trans-
fers in Fall 1993. On-campus enrollments are 19,848, down 458 from
last Fall. The shortfall in on-campus enrollments will be partially
offset by off-campus students. The Division of Continuing Studies
and Public Service anticipates 1,500 off-campus registrations by
October, approximately 400 students more than the original projection
of 1,101 off-campus students. The report also included information
on fall enrollments by race and ethnicity, and the increase in en-
rollment of African-American students was noted. One of the major
reasons for the decline in enrollment was noted as financially relat-
ed, including increased costs to students and lack of job opportuni-
ties for many of VCU's students.
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The Strategic Plan Implementation Report was presented.
The Strategic Plan Implementation Report: Year One (1993-1994)
presents a detailed summary of accomplishments in 1993-1994 and
plans for 1994-1995 related to each of the 162 objectives under the
fifteen strategic directions identified in the Strategic Plan.
Provost Harris and Dr. Barbara Fuhrmann, who coordinated the
compilation of the Implementation Report, presented the report to the
Committee. In 1993-1994, the implementation process brought togeth-
er students, faculty, classified staff, and administrators on 22 task
forces charged with designing and carrying out the implementation of
the plan. Additionally, a Council of Advisors was empaneled to
assist the Provost in overseeing and evaluating implementation of the
plan. The University needs to now address financial implications and
establish benchmarks to monitor ongoing implementation of the plan,
both of which will be the foci for 1995.
On motion made and seconded, the following items from the
Consent Agenda were approved:
Ad Hoc Committee on Joint Venturing
Minutes of a Meeting held July 13, 1994
Board of Visitors
Minutes of a Meeting held July 14, 1994
Academic Policy Committee
Program Proposal for School of Engineering
Advancement Committee
Minutes of a Meeting held July 13, 1994
Audit Committee
Minutes of a Meeting held July 14, 1994
Property Committee
Minutes of a Meeting held July 13, 1994
Architect Selection - Renovations of Nelson Clinic
Student Affairs Committee
Minutes of a Meeting held July 13, 1994
On motion made and seconded, the Consent Agenda Informa-
tion Items were accepted.
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Ms. Teig reported for the Nominating Committee that consist-
ed of Messrs. Arenstein (Chair), Framme, Weinberg and Whitworth
and Ms. Teig. The Committee recommended the following slate:
Stuart C. Siegel, Vice Rector; Harry I. Johnson, Jr., Secretary;
and Richard L. Meador and Clarence L. Townes, Jr. , members-at-
large. On motion made and seconded, the slate of officers were
elected.
On motion made and seconded, the Board convened into execu-
tive 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, the Reappointment of Medical Staff, the Quarter-
ly Safety and Risk Management Report and the Semi-Annual Hospital
Quality Progress Report, and to discuss the condition, acquisition
and use of real property for public purpose, or of the disposition of
publicly held property, or of plans for the future of a state insti-
tution of higher education which could affect the value of property
owned or desirable for ownership by such institution including the
Research Park Post Closing Resolution, and to discuss legal matters
and probable litigation with its attorney relating to the aforemen-
tioned Audit Reports as may be necessary and a discussion and/or
consideration of contractual or other legal relationships involving
MCV Hospitals, and to discuss the investing of public funds including
an Investment Review with Investment Consultant and to discuss
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matters relating to gifts, bequests, and fundraising activities
including the Development Report with a review of a Top Prospect
List and a review of the Nucleus Fund Projects, Review of Business
School Staffing Arrangement and the approval of the Named Funds
Report, and to discuss matters relating to honorary degrees and
special awards as authorized by Section 2.1-344 (a)1, (a)3, a(6),
a(7), a(8) and a(10) 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 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 Absent
Rev. Constantine N. Dombalis Left before voting
Mr. Edward L. Flippen X
Mr. Lawrence W. Framme, III X
Dr. Robert D. Gilmer X
Dr. Harry I. Johnson, Jr. X
Mr. Richard L. Meador X
Mr. Stuart C. Siegel X
Dr. Lindley T. Smith X
Ms. Eva S. Teig X
Mr. Clarence L. Townes, Jr. X
Dr. David A. Vaughan X
Ms. Sandra Adair Vaughan Absent
Mr. Jay M. Weinberg X
Dr. Percy Wootton Left before voting
VOTE:
Ayes: 12
Nays: 0
ABSENT DURING MEETING: 2
ABSENT DURING VOTING: 4
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On motion made and seconded, the Board accepted the Re-
port of the President; approved the Faculty Appointments and Chang-
es in Status and other Personnel Actions including addendum items,
the Annual Reappointment of Affiliate and Clinical Faculty, the Full
and Consultative Hospital Privileges, Medical Staff Appointments and
the Named Funds Report, accepted the Risk Management and Safety
Report, the semiannual Hospital Quality Progress Report; approved
the Acquisition of Real Property including 519-23 North Harrison
Street and 1069 West Broad Street, subject to final price negotia-
tion, accepted the Report of the General Counsel; accepted the report
of the Audit Committee regarding the meeting held September 22,
1994; accepted the Executive Committee Reports; approved the Post-
closing Resolutions regarding the Biotechnology Research Park Trans-
action documents with Lawrence H. Framme, III abstaining; approved
Crump Property with Mr. Jay M. Weinberg abstaining and approved
the resolution approving the conveyance of VCU's interest in the
the following Resolution of Commendation:
A Resolution In Honor Of
H. Stephen Moore, Jr.
September 22, 1994
WHEREAS, H. Stephen Moore, Jr., has served Virginia Common-
wealth University with distinction for twenty-five years;
WHEREAS, H. Stephen Moore, Jr., has transformed a small
personnel operation into a comprehensive human resource organiza-
tion;
WHEREAS, Virginia Commonwealth University has developed a
top-rated organization that has been recognized nationally for its
creative and innovative approaches to human resource management;
WHEREAS, Virginia Commonwealth University has been cited
as having one of the best human resource programs in the country;
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THEREFORE, BE IT RESOLVED that Virginia Commonwealth
University and its Board of Visitors extend best wishes and apprecia-
tion to H. Stephen Moore, Jr., on his retirement. In recognition of
his service to Virginia Commonwealth University and the Common-
wealth of Virginia, the Board of Visitors bestows the title of Assis-
tant Vice President for Human Resources Emeritus.
The meeting was adjourned at 12:30 p.m.
Harry I. Johnson,
