MINUTES OF A REGULAR MEETING OF THE
BOARD OF VISITORS OF
VIRGINIA COMMONWEALTH UNIVERSITY
November 16, 1995
A regular meeting of the Board of Visitors of Virginia Commonwealth
University was held on Thursday, November 16, 1995, at 9 a.m. in the University
Meeting Center.
Present were Messrs. Siegel, DeRusha, Flippen, Framme, Markel,
Townes and Weinberg; Drs. Johnson, Vaughan, White and Wootton; and Ms.
Teig. Drs. Gilmer and Smith; and Mesdames Powell and Vaughan were absent.
Also present were Drs. Trani, Dewey, Gloster, Harris, Jones, Miller and Rhone;
Messrs. Bruegman, Ross, Bunce, Gehring and Wyeth; and Mesdames Burnside,
Price and Messmer.
Mr. Siegel called the meeting to order and welcomed members of the
press. Mr. Siegel recognized Dr. Trani for being honored by the National
Conference of Christians and Jews.
The President's Report followed:
The President wished Mr. Siegel a happy birthday. The fund-raising
video produced by Warner Brothers was viewed by the Board.
A research presentation on "What does all this Mean?" was presented by
Kenneth S. Kendler and Catherine W. Howard.
Mr. Framme reported for the Academic Policy Committee. The Committee
met with the Executive Committee of the Faculty Senate. Subjects discussed
were:
(1) Satisfaction with the administration of the University, goals and
initiatives, and progress on the strategic plan;
(2) High tuition--especially at the graduate level;
(3) Space limitations for physical science programs, especially lab
space;
(4) How to teach to a diverse group of students; advising implications;
(5) Growth in some areas without additional resources--faculty are
stretched in responsibilities--faculty do not have time to do
everything;
(6) Morale question primarily in terms of feeling limited resources
(operating dollars), ever-increasing responsibilities, and low or no
salary increases in recent years, yet a sense of loyalty to the
institution. Other comments made: the University is becoming more
and more one University; the University is a very heterogeneous
group; technology support of faculty is positive;
(7) Library needs and related issues.
The Request for Organizational Change in the Name of the Department of
History and Geography to be changed to the Department of History and
Geography to be moved to the Department of Urban Studies and Planning,
College of Humanities and Sciences was presented.
An Update on Technology and Library Services was presented. The
update included a report on the progress of user-focused networking services;
enterprise-wide database servers; student and faculty-centered administrative
services; groupware solutions; voice communications; multimedia course
development; healthcare applications; MCV Hospitals network; and educational
technology research. The Board of Visitors approved in May 1995, a request of
$29 million to fund the projects. Significant achievements include the One Card,
the expanded collections on-line in the library, and the development of new
databases.
Dr. Wootton reported for the Advancement Committee. The Legislative
Update was presented. The University has been working diligently on various
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options relating to the hospital privatization study. The Secretary of Education
submitted recommendations to the Governor and General Assembly on
November 1, 1995. Conversations with community organizations involving the
Daily Planet and the Jade Elephant continue.
Mr. Weinberg reported for the Finance and Investment Committee.
A Proposal to Fit-Up Biotech One was presented. In order to accelerate
occupancy in Biotech One, a proposal for VCU to make arrangements with the
Research Park Authority to move forward to complete the building's interior work
was made. Part of the work will be funded by a $1 million grant received from
the U. S. Department of Commerce. The largest source of funds would be drawn
from the $7.5 million in bank financing committed to completing the interior work
on Biotech One. The maximum annual financial obligation to VCU under the
plan would increase from $935,669 under the present Master Lease Agreement
to $2.363 million. VCU has reserved $2.2M to cover the risk.
The Quarterly University Budget Report ending September 30, 1995, was
presented. Revenues and expenditures are projected to be in balance at the
year-end.
The 1996-98 State Operating Budget Submission was presented. The
Committee reviewed the University's and Hospitals' requests for additional
funding for the 1996-98 Biennium. The requests are submitted to the Governor
to be included in the budget presentation to the General Assembly in December
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1995. In addition to salary increases and Capital needs which are considered
separately, the University's top five priorities for funding are:
• New School of Engineering
• Medical Education
• Pharm D. Program
• School of Dentistry
• Technology
Dr. Vaughan reported for the Health Affairs Committee. The Hospital
Finances were presented for the period ending September 30, 1995. Patient
volume continues to decline translating into lower revenue then budgeted. The
Hospitals continue departmental expense controls to adjust the cost of
operations to the decreasing patient volume. The lower revenues, when netted
against expense controls, translate into an operating excess of only $1.3M
compared to a budget of $2.2M. Non-operating income increases the excess to
$1.6M compared to a budget of $2.4M.
The 1996 statistics show operating revenue for the four months ending
October is below budget $(3.7)M while expense controls saved only $2.7M,
resulting in an operating excess of $1.9M compared to a budget of $2.9M. With
the addition of non-operating income, the total excess is $2.3M compared to a
budget of $3.3M.
The 1996-98 Medicaid/Indigent Biennial Budget was presented. Medicaid
is planning to fully implement managed care by July, 1996, and fundamentally
change the reimbursement mechanism to VCU/MCV Hospitals for services
provided to Medicaid and indigent patients. For the year 1996, the Hospitals i
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to receive $147.3M for the care of Medicaid/Indigent patients which is $(13.7)M
below the cost of providing the care. The Hospitals biennial request is to
implement cost containment/efficiency/productivity increases to reduce costs to
hopefully eliminate the current shortfall from the Medicaid/Indigent programs.
The 1996 Revised Hospital Budget was presented. VCU/MCV Hospitals
is recommending a revision to the FY 1996 budget to account for the declining
census, lower revenues, and expense controls occurring. The recommended
summary budget changes are:
Lower Revenues $ (5.9)M
Expense Savings (100 FTEs) 7.2
Change to Excess $ 1.3 M
Budgeted Excess 4.3
Revised Excess $ 5.6 M
Dr. Johnson reported for the Property Committee. The Architect Selection
for Sanger Hall: Fire Suppression System was presented. The purpose of the
project is to provide an automatic fire suppression system. The construction
budget is $1,194,900 with a total budget of $1,658,000. On motion made and
seconded, the architect selection of the firm of Roache, Mercer and Faison, Inc.
was approved.
Utility Easements were presented. The Richmond City Council will be
petitioned to close two public alleys located on the block bounded by Belvidere,
West Main, South Pine, and West Cary Streets. Upon closing the alleys, VCU
and the adjoining property owner (VCU Real Estate Foundation) will acquire
additional property from the existing property lines to the midline of the closed
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alleys. Virginia Power and C&P Telephone utility lines and a City of Richmond
sanitary sewer are located in a portion of the additional property.
The Acquisition and Lease of Property at 412 West Grace Street was
presented. The property located at 412 West Grace Street is being offered to
the VCU Real Estate Foundation at a below-market price. The property consists
of a paved parking lot with approximately 135 spaces on 32,010 square feet of
land. The VCU Real Estate Foundation will acquire the property and lease to
VCU for use as parking for a period of two years with three one-year renewal
options.
The School of Engineering Report was presented. On November 1, 1995,
the University filed a report with the Governor and the General Assembly on the
plans for the School of Engineering Construction Project. A 120,000 gross
square foot building is planned. Included in the building is a "clean room" which
is part of the incentive package offered to Motorola. The project will be financed
with State General Revenue Pledge Bonds issued by VCU. The project will be
managed and owned by the VCU Engineering School Foundation which will be
responsible for the Debt Service on the Bonds.
A Master Site Plan Update was presented. The next steps in the process
are:
• The consultants will complete the analysis of existing reports and studies;
• the consultants will complete the detailing of the existing facilities
environment;
• the Community Advisory Boards, governmental agencies and University
governance and advisory committees will be briefed on progress; and
• the consultants will prepare a draft document identifying planning issues and
alternative strategies for dealing with the issues.
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A notification of Contract Award for Life, Health and Code Renovations
was presented. The project involves the installation and replacement of fire
alarm systems along with the required asbestos abatement in six University
buildings. The award was made to T. E. Blackstone Company of Ashland,
Virginia for a negotiated price of $415,824.
A Proposal to Fit-Up Biotech One that was presented to the Finance
and Investment Committee was also presented to the Property Committee.
Dr. Johnson reported for the Student Affairs Committee. The Committee
met with a group of Virginia Commonwealth University students. Subjects
discussed were:
(1) Adjustment to the University;
(2) Knowledge of resources--how to access resources;
(3) The high quality of the faculty;
(4) Deficiencies--computers, limited courses in some of the majors;
(5) Reasons for coming to VCU--location in State Capital, opportunities
for applied learning, faculty reputation, majors;
(6) Why VCU is not better known to potential students--need to do more
in-state recruiting, make better use of technology, better marketing
and recruiting;
(7) Parking problems and lack of facilities on MCV Campus.
An update on the Security Report was presented. The plan to implement
recommendations of the consultant on security and safety was presented. The
plan ranks the recommendations in priority order, states resource requirements,
and assigns responsibility for implementation.
Discussion focused on the timeframe for implementation, the positive
results of the study, the relationship of the hospital security force with the VCU
Police Department, and the need to publicize the effective job being done and
the implementation efforts of the plan.
A Report on Fall Enrollment was presented. Based on registrations
through November 14, 1995, the University is expected to have a final Fall 1995
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headcount enrollment of 21,391. Last year's enrollment was 21,523. A few off-
campus courses may be developed prior to final reporting to SCHEV. On-
campus enrollment is down slightly, but off-campus enrollment is expected to
show an increase over last year.
A Report on Enrollment Management Planning was presented. The
Executive Director of University Enrollment Services reported on marketing and
recruiting plans for undergraduate admissions. Strategic marketing objectives
include increasing the number of incoming freshmen to 2,000, maintaining the
incoming transfer cohort at 1,625, increasing the number of out-of-state
freshmen, maintaining the diversity of the student body, and maintaining the SAT
mean of 1100 (based on the new SAT system; the new system is the same as
1,000 under the old system) for regularly admitted freshmen. The objectives are
being addressed through market segmentation research, recruitment
publications, direct marketing, special programs, telemarketing, alumni
involvement, and other means. Discussion focused on the need to enhance
VCU's recruiting efforts and to better market the University. A progress report in
March was requested.
On motion made and seconded, the following items from the Consent
Agenda were approved:
Board of Visitors
Minutes of a Meeting held September 21, 1995
Academic Policy Committee
Minutes of a Meeting held September 20, 1995
Request for Organizational Change - Name of
Department of History and Geography to be
Changed to Department of History - Geography to
be moved to Department of Urban Studies and
Planning, College of Humanities and Sciences
Advancement Committee
Minutes of a Meeting held September 20, 1995
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Audit Committee
Minutes of a Meeting held September 21, 1995
Finance and Investment Committee
Minutes of a Meeting held September 20, 1995
Health Affairs Committee
Minutes of a Meeting held September 20, 1995
1996 Hospital Revised Budget
Report of Capital Equipment and Renovation Release
for the First Quarter of FY 1996 ending September
1995
Property Committee
Minutes of a Meeting held September 20, 1995
Biotech One
Architect Selection - Sanger Hall:
Fire Suppression System
Utility Easement - Fine Arts Center
Acquisition and Lease of Property -
412 West Grace Street
Student Affairs Committee
Minutes of a Meeting held September 20, 1995
On motion made and seconded, the items on the Consent Agenda for
Information were accepted.
On motion made and seconded, the following Resolution was approved:
Master Lease Amendment
RESOLVED, that Virginia Commonwealth University ("VCU") hereby is
authorized, directed and empowered to amend and modify the Master Lease
dated as of August 18, 1994 ("Master Lease"), between the Virginia
Biotechnology Research Park Authority ("Authority"), as landlord, and VCU, as
tenant, so as to cause the Authority, as landlord, to construct such tenant
improvements requested by VCU, as tenant, under the Master Lease, with VCU
paying the costs and expenses of such tenant improvements as additional rent
under the Master Lease, thereby increasing the aggregate maximum possible
liability of VCU as tenant under the Master Lease, as so amended, to
$2,363,000, as described in the Proposal to Fit-Up Biotech One; and further
RESOLVED, that Eugene P. Trani, President, or any officer of VCU designated
by President Trani, be, and they hereby are, authorized, directed and
empowered to do all acts and things on behalf of VCU as they, or any of them,
may deem necessary or appropriate to effect the transactions contemplated by
these Resolutions, in their sole discretion, with their signatures thereon to be
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conclusive evidence of the authority granted hereby; and any changes approved
by Dr. Trani or his designee, and any previous such action hereby is ratified,
confirmed and approved.
Note: Mr. Framme is a member of the Virginia Biotechnology Research Park
Corporate Board of Directors.
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 affected by such evaluation including the Faculty
Appointments and Changes in Status and Other Personnel Actions, the Full and
Consultative Hospital Privileges, the Faculty Salary Recommendation for 1995-
96 for the School of Medicine, the Faculty Incentive Payment for December 1,
1995, for the School of Medicine, the Report of the Vice President for Health
Sciences including the AMC Strategic Plan Update and an update on University
Health Services, and the Report of the General Counsel, and to discuss the
condition, acquisition or use of real property for public purpose, or of the dispo-
sition 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, and to discuss legal matters and probable litiga-
tion with its attorney including the aforementioned Audit Reports as may be
necessary, and to discuss the investing of public funds including the Transfer of
Funds, and to discuss matters relating to gifts, bequests, and fundraising activi-
ties including the Development Report, the approval of the Named Funds Report
and Revisions of the Solicitation, Acceptance and Administration of
Contributions Statement Policy 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.
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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 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. Stuart C. Siegel, Rector X
Mr. William C. DeRusha X
Mr. Edward L. Flippen X
Mr. Lawrence H. Framme, Ill Left before voting
Dr. Robert D. Gilmer Absent
Dr. Harry I. Johnson, Jr. X
Mr. Steven A. Markel X
Ms. Diane Linen Powell Absent
Dr. Lindley T. Smith Absent
Ms. Eva S. Teig X
Mr. Clarence L. Townes, Jr. X
Dr. David A. Vaughan X
Ms. Sandra M. Adair Vaughan Absent
Mr. Jay M. Weinberg Left before voting
Dr. H. George White, Jr. X
Dr. Percy Wootton X
Vote:
Ayes: 11
Nays: 0
ABSENT DURING MEETING: 4
ABSENT DURING VOTING: 6
On motion made and seconded, the Board approved the Faculty
Appointments and Other Personnel Actions, the Full and Consultative Hospital
Privileges, the Faculty Salary Recommendation 1995-96 for the School of
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Medicine, the Faculty Incentive Payment for December 1, 1995, for the School of
Medicine, the Named Funds Report, the Revisions to the Solicitation,
Acceptance and Administration Contributions Statement Policy, the Transfer of
Funds, with Mr. Flippen abstaining, the acquisition of property; and accepted the
Development Report, the AMC Strategic Plan Update including the Progress
Under Initial Plan and New Initiatives, the University Health Services Update, the
Report of the Special Awards Committee, the Report of the General Counsel, the
Report of the Audit Committee and the Report of the Rector.
The meeting was adjourned at 12:30 p.m.
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