MINUTES OF A REGULAR MEETING OF THE
BOARD OF VISITORS OF
VIRGINIA COMMONWEALTH UNIVERSITY
March 23, 1995
A regular meeting of the Board of Visitors of
Virginia Commonwealth University was held on Thursday,
March 23, 1995, at 9 a.m. in the University Meeting Center.
Present were Messrs. Whitworth, Arenstein, Flippen,
Framme, Meador, Townes and Weinberg; Drs. Dombalis, Gilmer,
Johnson, Smith, Vaughan and Wootton; and Ms. Vaughan.
Absent were Mr. Siegel and Ms. Teig. Also present were
Drs. Trani, Dewey, Harris, Jones, Rhone and Schexnider;
Messrs. Bruegman, Bunce, Ross and Wyeth; and Mesdames
Burnside, Messmer and Price.
Mr. Whitworth called the meeting to order and
welcomed members of the press. The President's Report
followed:
Dr. Trani introduced the Community Services
Associates for the Spring Semester 1995. Included
are Dr. Molly Brunk, Dr. David Franks, Dr. Suzanne
Goren, Dr. Robert Harris, Dr. Peter S. Kirkpatrick
and Dr. David Urban.
Also introduced were C. Edward Gibbs and Bernard
Hamm, first year graduate students in Education
Administration. The purpose of visiting the Board
meeting was to fulfill a writing assignment for a
Public School Administration class.
The Honorable James S. Gilmore, III will partici-
pate in a Town Meeting on April 17, 1995, at 7 p.m.
in the Business Building Auditorium.
An update on enrollment figures was reviewed.
MCV Hospitals was one of 87 hospitals listed in the
Best Hospitals in America; and the programs for
Health Administration, Dental, Pharmacy, Fine Arts
and Physical Therapy were cited in U.S. News and
World Report.
Mr. Meador reported for the Academic Policy Commit-
tee. The Committee met with the Executive Committee of the
Faculty Senate. Subjects discussed were: declining budg-
ets (the impact on operational budgets of the departments);
the increasing number of students in specific classes;
students on academic warning; the large number of working
students at VCU; academic support needs; the limited amount
of E & G funds for basic support; and the willingness of
faculty to work with the Board, the legislature, and pri-
vate donors on increasing funds for higher education.
The Request for Name Change from the Department of
Fashion to the Department of Fashion Design and Merchandis-
ing, School of the Arts was presented. The basis of the
name change request is to more accurately reflect the two
areas of the department; to conform to practices of other
institutions; and to acknowledge that merchandising is
becoming an increasingly more popular field of study and is
the lowest cost program within the School of the Arts,
presenting opportunities for enrollment growth without
prohibitive attending expenses.
A request for Name Change from the Division of
Continuing Studies and Public Service to the Division of
Community and International Programs was presented. The
name change request emanates from the reorganization and
relocation of units in the Division called for in the
Strategic Plan for the Future of Virginia Commonwealth
University. The Division's new name reflects the two major
units remaining since the strategic directions have been
implemented: community programs and international programs.
The request has been presented and approved by the appro-
priate University channels. The Program Proposal for a
Bachelor of Arts in Music was presented. The establishment
of the new degree program offers students wishing to study
music the opportunity to combine a rigorous music curricu-
lum with a broader liberal arts focus. In turn, the pro-
gram would increase enrollments as well as provide an
educational foundation that can lead to graduate school or
teaching positions. No new resources would be required to
establish the program, and the State Council of Higher
Education for Virginia (SCHEV) has indicated support of the
new degree. The Report on Female and Other-Race Faculty
Recruitment and Retention Activities was presented. A
brief update of faculty recruitment and retention efforts
as outlined in the VCU Institutional Recruitment & Reten-
tion Plans and Instructional & Administrative Faculty Plans
submitted to the State Council of Higher Education for
Virginia (SCHEV) in February, 1994, was provided. The
information presented reflects the commitment and success-
ful recruitment and retention efforts being deployed by the
nine schools and the College to ensure a diverse faculty.
Mr. Framme reported for the Advancement Committee.
The Legislative Update was presented. The University was
able to surpass anticipated legislative goals. In 1996,
VCU will be more ambitious concerning the MCVH privatiza-
tion study. Virginia Commonwealth University, the Univer-
sity of Virginia and the Department of Planning and Budget
have been charged with the duty of creating a plan for
privatization. VCU will take a leadership role in the
development of the plan. The alleviation of bureaucratic
ties will allow the University hospitals to compete more
efficiently and run more cost effectively in the Health
Services Industry. Downsizing efforts continue on both
campuses. Cuts up to 20-30% in the hospital are expected.
The Workforce Transition Act will be implemented in compli-
ance with the Strategic Plan. The status of the relocation
of the Daily Planet was discussed. Although location
options have been sited, neighboring communities affected
are in opposition to a move. A guided tour of the Engi-
neering site at 608-10 West Cary Street was held February
6, 1995. A new site location has yet to be determined for
the relocation of the house located 610 West Cary Street.
Of the three initial options for the site, only relocation
and demolition of the house remain. The University has
offered not only the building but financial aid towards the
relocation.
The following Resolution was presented for the
Virginia Commonwealth University School of Engineering
Foundation:
WHEREAS, it has been proposed that there be created
the Virginia Commonwealth University School of Engineering
Foundation (the "Engineering Foundation") which would be
operated exclusively to benefit Virginia Commonwealth
University ("VCU") and would have among its purposes rais-
ing private funds in support of the VCU School of Engineer-
ing and investing and expending those funds to benefit the
VCU School of Engineering.
WHEREAS, the purposes of the Engineering Foundation
and its proposed organizational structure and operating
policies have been presented to and reviewed by the Board
of Visitors, which has determined that the Engineering
Foundation will be created and operated exclusively for the
benefit of VCU in full compliance with applicable guide-
lines for VCU-related foundations.
NOW, THEREFORE BE IT HEREBY RESOLVED, by the Board
of Visitors of Virginia Commonwealth University that the
creation, organization and operation of the VCU School of
Engineering Foundation are deemed to be in the best inter-
ests of VCU and are hereby approved.
The draft of the VCU School of Engineering Founda-
tion Bylaws and Articles of Incorporation was presented.
The only cross over membership of the School of Engineering
Foundation will occur between the Board of Visitors and the
School of Engineering with one member of the Board of
Visitors on the new board.
Mr. Weinberg reported for the Finance and Invest-
ment Committee. The 1995-96 Budget Plan and the 1994-95
Budget Performance Report were presented. The 1995-96
budget will be submitted to the Board of Visitors for
approval at a special meeting on April 20, 1995. Prior to
the meeting, a budget work session is being arranged with
the Board to review the University and Hospital budgets.
The session will give Board members an opportunity to
discuss the budget prior to Board approval. As of the
quarter ended, December 31, 1994, revenues and expenditures
are expected to be in balance at year end for all Universi-
ty programs in 1994-95.
The Investment Report for December 31, 1994, was
presented. The investment return for the VCU Cash Manage-
ment Pool for the year ended December 31, 1994, was +1.3%.
The percentage compares favorably to the target index of
+0.98%. The annual return at December 31, 1994, for the
VCU Foundation was +0.6% compared to -0.7% for the MCV
Foundation.
Dr. Gilmer reported for the Health Affairs Commit-
tee. The Hospital Finances were presented. The Financial
statistics for the seven months ending January 31, 1995,
were presented. Inpatient days exceeded the budget by .9%
and inpatient admissions were below the budget by (1.3)%.
The Hospitals excess revenues over expenses from operations
for the seven month period was $2.2M compared to a budget
of $1.9M. When non-operating income is included, the total
excess of revenues is $2.8M compared to a budget of $2.3M.
The financial statistics for eight months ending February
28, 1995, show a leveling of patient volume. Continued
savings in overtime more than offset over budget conditions
in the non-personnel budget. The Hospitals operating
excess was $2.5M for the eight month period, compared to a
budget of $2.3M. Adding non-operating income translates
into a total excess of $3.2M compared to a budget of $2.8M.
The Contract for Environmental Services was pre-
sented. MCV Hospitals requested and received approval to
implement Phase I of the privatization program which in-
cludes privatization of cleaning services for selected
buildings and services. The privatization will not result
in any employees losing jobs through layoffs. All posi-
tions will be filled through vacant positions. The
Morrison Crothall contract was increased from the present
contract price of $717,353 to $1,461,873. The process
would reduce salary budgets in the Hospitals by $972,058,
while only increasing the Morrison Crothall contract by
$744,520, resulting in a total annual savings of $274,556.
Mr. Townes reported for the Property Committee.
The Project Plans for the Fine Arts Center were presented.
Following the January meeting, the Committee requested that
the administration reevaluate the design options for the
building as well as the site. The administration retained
a local architect to independently evaluate the building
design and the location. The independent evaluation noted
that any major changes in design or location could not be
accomplished within the existing budget. The only feasible
alternative is to make aesthetic changes in the present
design. The changes, coupled with an expected delay in the
project schedule, could add $1 million to the cost of the
project. The costs will be dealt with once the project is
bid.
The Lease Renewal for 401 East Main Street was
presented. The renewal term is for one-year and is for
approximately 11,750 square feet of office space at 401
East Main Street for the University's Procurement and
Stores Department. Procurement and Stores has occupied the
space for the past seven years.
The Lease Renewal for 217 West Grace Street was
presented. The renewal term is for forty-two months and is
for approximately 15,225 square feet of administrative
office/daycare/residential space at 217 West Grace Street
for the University's Perinatal Addiction Center which has
occupied the space for the past five years. The Center
provides comprehensive medical, psychiatric and psychoso-
cial services to pregnant and post-partum women, infants,
and preschoolers within a residential framework.
The Architect Selection for the Outpatient Parking
Deck was presented. The project will provide 479 vehicle
parking spaces on nine levels and the roof area of the
parking building to be located at the corner of 12th and
East Marshall Streets. The total budget for the project is
$9,567,300.
A Request for Proposals for Renovations Management
Services was presented. VCU seeks proposals for private
construction management firms for the management and deliv-
ery of University and Hospital renovation services includ-
ing, but not limited to, major building repairs, reimburs-
able building maintenance, and minor construction. Approv-
al is recommended for the issuance of a Request for Propos-
als to privatize the management and delivery of renovations
services. The renovations work to be included in the
contract is projected to be $3 - $6 million annually.
The Easement for the VCU Natatorium was presented.
A City of Richmond combined sewer main currently crosses
the land between the MCV Campus Gymnasium and the Physical
Plant shops building and interferes with the proposed
Natatorium addition to the MCV Gymnasium. The City will
not approve the proposed relocation of the sewer main
without an appropriate easement.
Mr. Arenstein reported for the Student Affairs
Committee. The Committee met with a group of students to
discussed concerns with safety issues in the library and
parking areas, bureaucracy, student involvement in Univer-
sity affairs and housing programs. Also discussed were
issues related to the nature of the University with an
urban campus as well as a variety of academic issues such
as missing books and periodicals in the library, deficien-
cies in technology and computers, laboratories for biology
majors, academic scholarships, faculty/student interac-
tions, and student advising.
The Report on Information Technology was presented.
The report provided an overview of activities planned and
underway to help realize greater efficiencies in the opera-
tion of the University and improve the quality of services
to students. An update was provided on the implementation
of a network infrastructure that will support multimedia
education-on-demand to offices, classrooms, residence
halls, and, at a later time, to other remote locations such
as off-campus residences, businesses, and clinics. The
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asynchronous learning environment also will include a
digital library and additional student-oriented applica-
tions to enhance the quality, convenience, and cost-effec-
tiveness of instruction.
The Student Enrollment report was presented.
Statistical information was presented on actual and pro-
jected student enrollments for the period 1990 to 1995.
Recruitment and marketing strategies, enrollment projec-
tions, financial implications, and admissions/enrollment
data and trends were discussed.
On motion made and seconded, the following items
from the Consent Agenda were approved with Mr. Weinberg
abstaining on the architect selection for the Outpatient
Parking Deck:
Ad Hoc Committee on Joint Venturing
Minutes of a Meeting held January 18, 1995
Board of Visitors
Minutes of a Special Meeting held January 18,
1995
Minutes of a Meeting held January 19, 1995
Academic Policy Committee
Minutes of a Meeting held January 18, 1995
Request for Name Change - From Department
of Fashion to Department of Fashion
Design and Merchandising, School of the
Arts
Request for Name Change - From Division
of Continuing Studies and Public Service
to Division of Community and Internation-
al Programs
Program Proposal - Bachelor of Arts in Music
Advancement Committee
Minutes of a Meeting held January 18, 1995
Approval of the VCU School of Engineering
Foundation
Audit Committee
Minutes of a Meeting held January 19, 1995
11
Executive Committee
Minutes of a Meeting held February 8, 1995
Finance and Investment Committee
Minutes of a Meeting held January 18, 1995
Health Affairs Committee
Minutes of a Meeting held January 18, 1995
Contract for Environmental Services
Property Committee
Minutes of a Meeting held January 18, 1995
Project Plans for Fine Arts Center
Lease Renewal for 401 East Main Street
Lease Renewal for 217 West Grace Street
Architect Selection - Outpatient Parking Deck
Repairs to 1015 Grove Avenue - Music Center
Request for Proposals Authorization -
Renovations Management Services
Easement - VCU Natatorium
Student Affairs Committee
Minutes of a Meeting held January 18, 1995
On motion made and seconded, the items on the
Consent Agenda for Information were accepted.
The Presidential Evaluation Committee was appoint-
ed. A report will be presented to the Board in May.
Messrs. Meador, Siegel and Townes and Dr. Johnson will
serve on the Presidential Evaluation Committee with Mr.
Whitworth serving as Chair.
Mr. Whitworth appointed the Board Nominating Com-
mittee for the Rector. Mr. Meador was asked to serve as
Chair with Drs. Gilmer and Smith; Mr. Weinberg; and Ms.
Teig serving as members.
Mr. Whitworth reported that the survey conducted on
the feasibility of holding a retreat was divided. Accord-
ingly, a retreat will not be held in 1995.
On motion made and seconded, the Board convened
into executive session to discuss certain personnel matters
involving the performance of identifiable employees or
12
faculty of VCU, and to discuss the evaluation of perfor-
mance of departments or schools of VCU where such matters
regarding such individuals might be affected by such evalu-
ation including the Faculty Appointments and Changes in
Status and Other Personnel Actions and Full and Consulta-
tive Hospital Privileges, Family Practice Residency Pro-
gram, the Generalist Initiative, the Quarterly Risk Manage-
ment and Safety Report and the University Health Services,
Inc., Update, and to discuss legal matters and probable
litigation with its attorney including the aforementioned
Audit Reports as may be necessary, and to discuss the
condition, acquisition or use of real property for public
purpose, or of the disposition of publicly held property,
or of plans for the future of a state institution of higher
education which could affect the value of property owned or
desirable for ownership by such institution including the
Acquisition of the Blackstone Family Practice, and to
discuss matters relating to gifts, bequests, and fund-
raising activities including the Development Report and the
approval of the Named Funds Report, and to discuss matters
relating to honorary degrees and special awards as author-
ized by Section 2.1-344 a(1), a(3), 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:
13
Virginia Commonwealth University hereby certifies that, to
the best of each member's knowledge, (i) only public
business matters lawfully exempted from open meeting re-
quirements by Virginia law were discussed 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
Rev. Constantine N. Dombalis Left before voting
Mr. Edward L. Flippen X
Mr. Lawrence W. Framme, III Left before voting
Dr. Robert D. Gilmer Left before voting
Dr. Harry I. Johnson, Jr. X
Mr. Richard L. Meador Left before voting
Mr. Stuart C. Siegel Absent
Dr. Lindley T. Smith X
Ms. Eva S. Teig Absent
Mr. Clarence L. Townes, Jr. X
Dr. David A. Vaughan X
Ms. Sandra Adair Vaughan X
Mr. Jay M. Weinberg X
Dr. Percy Wootton Left before voting
VOTE:
Ayes: 9
Nays: 0
ABSENT DURING MEETING: 2
ABSENT DURING VOTING: 7
On motion made and seconded, the Board accepted the
Report of the President; approved the Faculty Appointments
and Changes in Status, including the Appointment of former
Governor L. Douglas Wilder as Distingushed Professor in the
Center for Public Policy; approved the Full and Consulta-
tive Hospital Privileges and the Named Funds Report; ac-
cepted the Quarterly Risk Management and Safety Report, the
Executive Session Committee Reports and the Report of the
14
General Counsel; and approved the Transfer of Funds from
MCV Hospitals to University Health Services, Inc., for
acquisition of Blackstone Family Practice, and approved the
Board of Visitors' Student Scholarship Award Recommenda-
tion.
Ms. Joyce Dodd, the new Director of the School of
Mass Communications, was introduced to the Board.
The meeting was adjourned at 1:15 p.m.
