MINUTES OF A REGULAR MEETING OF THE
BOARD OF VISITORS OF
VIRGINIA COMMONWEALTH UNIVERSITY
January 16, 1997
A regular meeting of the Board of Visitors of Virginia Commonwealth Uni-
versity was held on Thursday, January 16, 1997, at 9 a.m. in the University
Meeting Center.
Present were Messrs. Siegel (Rector), Flippen, Marcus, Markel, Rigsby,
Smith, Townes and Weinberg; and Drs. Perkinson, Vaughan and Wootton. Ab-
sent were Mr. DeRusha; Drs. Smith and White; and Mesdames Powell and
Vaughan.
Also present were Drs. Trani, Dewey, Harris, Jones, Long and Rhone;
Messrs. Bunce, Gehring, Ross, Timmreck and Wyeth; and Mesdames Burnside,
Byrne, Messmer and Price.
Mr. Siegel called the meeting to order and welcomed members of the
press.
The President's report followed:
The Community Services Associates were introduced as follows: Dr. Eliza-
beth Cramer, Dr. Pamela Kiecker, Dr. Mary Clement, Dr. Humberto Fabelo, Dr.
Leavelle Cox, Dr. Laura Browder, Dr. McKenna Brown, Dr. Frank Farrington, Ms.
Denise Kasper, and Dr. LeEtta Pratt.
The Service Learning Associates were introduced as follows: Dr. Debra Ball-
inger, Dr. Elisabeth Kuhn, Dr. R. McKenna Brown, Dr. John Moeser, and Dr.
Barbara Myers.
The State of the Union Address reception is scheduled for February 4, 1997,
from 6 to 8 p.m. in the Rayburn House Office Building, Room 2125. A bus de-
parts Richmond at 3:30 p.m. and returns to Richmond around 10:30 p.m.
Mr. Flippen reported for the Academic Policy Committee. A Report on the
Teaching Award was presented. A proposed teaching award was discussed at
the November, 1996, meeting, and a subcommittee composed of Mr. Ted
Smith, a member of the Academic Policy Committee; Ms. Melissa Byrne, stu-
dent representative to the Student Affairs Committee of the Board of Visitors;
Dr. Stanley Strong, President of the Faculty Senate; and Dr. David Hiley, Vice
Provost for Academic Affairs, was appointed to study the matter and make a
recommendation. The subcommittee recommended the establishment of the
Board of Visitors' Teaching Fellows Award. The amount of the award would be
$2,500, with a goal of raising the award to $5,000 with private and foundation
support. The award would be in effect for 1997-98. The subcommittee was
asked to consider ways to promote the program and honor recipients.
A Report on Undergraduate Curriculum Changes including General Edu-
cation, VCU 101 and Service Learning was presented. The Strategic Plan for
the Future of Virginia Commonwealth University recommended establishing
a university-wide task force to review and revise undergraduate general educa-
tion requirements (the part of the undergraduate curriculum required of all un-
dergraduates). The task force proposal for a new general education plan was
approved by the Board of Visitors in January 1995. The University Under-
graduate Curriculum Committee was given the responsibility of overseeing the
development and approval of school-based plans.
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The Vice Provost for Academic Affairs reported on the general education
program scheduled to be implemented in Fall 1997. Emphasis in the general
education program, with new course development, will be in the areas of writing
skills, quantitative analysis, critical thinking, humanities, cultural understanding,
ethics and service learning opportunities for students. Assessment of the new
plan will take place and the Academic Policy Committee requested additional
information on the general education curriculum of the different schools at a fu-
ture meeting when all plans have been approved by the Undergraduate Cur-
riculum Committee of the University.
VCU 101 is a one-credit-hour course that all entering students are en-
couraged to take. Questions and discussions regarding content, length, and
relationship to the academic curriculum of the students followed the presenta-
tion. A progress report on VCU 101 will be presented at a later meeting.
Service Learning is a VCU initiative that integrates service with teaching
and research. Service Learning offers the University a mechanism to provide
an urban experience required of the students in the College of Humanities and
Sciences and the service experience recommended by the University's general
education requirements. To facilitate the creation of service learning courses at
VCU, the Office of Community Programs in the Division of Community and In-
ternational Programs has created the Service Learning Associates Program,
consisting of a core group of faculty working on course development, research,
and service projects.
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Dr. Wootton reported for the Advancement Committee. The External Rela-
tions Report was presented. MCV Hospitals' Chest Pain Triage System has re-
ceived recent national coverage through a video news release. Features on the
system appeared in the country's top television markets including New York City,
Chicago, Los Angeles, and Cleveland. Also ABC's World News Tonight is ex-
pected on campus next week to do a story. Several of VCU's faculty have ap-
peared or have been featured in national media in the past two months: Dr.
Harry Bear of the Massey Cancer Center appeared on CBS This Morning on a
VCU study involving breast cancer; Ms. Diane-Cook Tench, director of the VCU
Ad Center, has appeared several times in USA Today and the Los Angeles
Times critiquing national advertisements; Dr. Billy Martin in the pharmacology
department will appear on CBS's 48 Hours and has appeared in the Los Angeles
Times discussing marijuana addiction; and Dr. Richard Costanzo in the physiol-
ogy department was part of U.S. News and World Report's cover story on the
senses.
Over 6,000 copies of the VCU legislative priority card have been printed
and distributed to local, state and federal officials as well as the Boards, Foun-
dations, alumni, staff and friends of VCU. VCU is working with the Administra-
tion and the legislature on the final resolution of the Trigon stock, which based
on the Governor's proposals, would be split 40 percent for VCU, 40 percent for
UVA and 20 percent for Eastern Virginia Medical School with the funds being
used for financial incentives to encourage residents/physicians to practice in
medically undeserved areas of the Commonwealth.
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Mr. Markel reported for the Finance and Investment Committee. The
Foundation Report was presented. The Committee reviewed a report on the
University's five affiliated foundations:
MCV Foundation
VCU Foundation
VCU Intellectual Property Foundation
VCU Real Estate Foundation
VCU School of Engineering Foundation
The report discloses pertinent financial and operating information about each
foundation, including the history and purpose of each foundation, the list of cur-
rent trustees and financial highlights. The report is provided on an annual basis
to assure the Board of Visitors that the foundations are being managed in keep-
ing with the guidelines and principles established by the Board of Visitors for the
University foundations.
The Student Loan Default Rate Report was presented. The majority of
financial aid at VCU is provided through loans. Approximately 66% of the stu-
dents receive some form of financial aid and 85% of all undergraduate financial
aid recipients receive loans. VCU's current default rates are below the compli-
ance levels necessary for full participation for all federal loan programs.
A special meeting of the Finance and Investment Committee of the Board
of Visitors of Virginia Commonwealth University was held on Wednesday, Janu-
ary 15, 1997, at 8:30 a.m. The meeting included a presentation from Mercer In-
vestment Consulting, Inc. The "Investment Trustee Handbook" enables the
Board members to understand the overall fiduciary responsibilities of the Board
concerning the University's Foundations. Issues concerning tuition, enrollments
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and scholarships were discussed. Another special meeting of the Finance and
Investment Committee is scheduled for March 20, 1997, to further discuss the
Board's role in the financial matters of the University.
Mr. Weinberg reported for the Health Affairs Committee. The Hospital Fi-
nances were presented. Budget reductions in Medicare have not yet occurred,
and the increased inpatient volume and improved rate adjustments in contracts
over what was budgeted contribute to additional revenue of $1.8M or 1.1% for
the November 1996 period. The Hospitals continues departmental expense
controls and expenses are within $113,000 of the budget, even with the increase
in the inpatient census, for the five month period ending November, 1996. Op-
erating revenues and operating expenses result in an excess of $8.2M com-
pared to a budget of $6.5M.
Mr. Weinberg reported for the Property Committee. The Architect Selec-
tion for the Student Housing Renovations, Phase II was presented. The purpose
of the project is to renovate several student housing structures on the Academic
and MCV Campuses. The renovations include: window replacement, electrical
upgrades, and heating, ventilating and air conditioning upgrades. The construc-
tion budget is $2,882,000 with a total budget of $3,797,000. Wiley and Wilson, a
Richmond-area full service engineering and architectural firm, was recom-
mended.
The Architect Selection for the Track and Soccer Center (Center) was
presented. The purpose of the project is to construct a track and soccer center
to be located at the City of Richmond's Sports Center. The Center will be owned
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and operated by VCU with shared use determined by a joint operating agree-
ment with Virginia Union University, the City of Richmond, and private sponsors.
The Center will include: an eight-lane, 400 meter synthetic track; a natural grass
soccer field; bleacher seating for 3,000 to 4,000 people; locker rooms, rest-
rooms, under-bleacher storage; conference and office space; a press box; and
concession areas. Project costs do not include costs to the City of Richmond
estimated at $500,000. The construction budget is $3,244,000 with a total
budget of $4,000,000. Lehman-Smith-Wiseman and Associates with Interna-
tional Sports Management, Inc. was the recommended architectural team.
The Architect Selection for the West Hospital Life and Fire Safety was
presented. The purpose of the project is to renovate West Hospital to incorpo-
rate life/fire safety upgrades including: adding exit stairways to the east, south
and west wings; upgrading existing building systems for improved fire protection
integrity; and other modifications required to meet building code standards. The
construction budget is $1,103,000 with a total budget of $1,552,739. Baskervill
and Son was the recommended firm.
The Project Plans for the Clinical Research Center were presented. The
purpose of the Clinical Research Center (CRC) relocation (9,595 GSF) is to pro-
vide for improved inpatient and outpatient care areas; to increase the amount of
clinical support space in order to meet increasing patient care demands; and to
assure continued program accreditation from the Joint Commission on Accredi-
tation of Healthcare Organizations (JCAHO). The construction budget is
$317,000 with a total project budget of $554,759.
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The Project Plans for the Outpatient Cancer Center were presented. The
project renovates the ground floor and a portion of the basement of North Hos-
pital to relieve overcrowding and consolidate outpatient cancer services. The
space is adjacent to the Massey Cancer Center and the existing radiation oncol-
ogy services. Consolidation of services at a single site will improve significantly
the efficiency of patient care delivery by reducing the need for duplicate equip-
ment and services and improving communication among healthcare providers.
The construction budget is $2,684,500 with a total budget of $3,518,000.
The Notification of Contract Award for ADA Compliance (Handicapped
Access) and Sanger Hall Wall Repair were presented for information. The ADA
Compliance project consists of construction modification and improvements to
seven facilities on both campuses to enhance access for persons with disabili-
ties. Four locations are on the Academic Campus and three on the MCV Cam-
pus. The total project cost is $538,000. Sunbelt-Browning, Inc. is the construc-
tion contractor. Construction is scheduled for completion in May, 1997.
The Sanger Hall Wall Repair involves exterior repairs to the masonry and
stone of the east side of Sanger Hall. The total project budget is $944,795.
White Construction Company is the construction contractor. Construction is
scheduled for completion in September, 1997.
The Committee reviewed information on the leasing activities for the Vir-
ginia Biotechnology Research Park and the Capital Project Status Report.
Mr. Townes reported for the Student Affairs Committee. A presentation of
the changing nature of libraries with the increasing use of technology in libraries
8
was presented by the Executive Director of University Library Services and In-
terim Vice Provost for Information Technology. Also presented was information
on the University's effort to work toward a client-centered, integrated, enterprise-
wide suite of administrative applications using state-of-the-art technology. The
need to address problems related to the Year 2000 date was discussed. Ques-
tions were raised about the status of the State Library for Tompkins-McCaw Li-
brary on the MCV Campus.
An Update on Student Housing Planning was presented. A report on stu-
dent housing planning at VCU shows future needs, and the options under con-
sideration for addressing the needs were discussed by the Vice Provost for Stu-
dent Affairs. Discussed were student housing renovations and repairs as well as
the need for additional housing as student enrollment increases. Short-term
strategies will include changes in current housing facilities to convert space for
use by freshmen and new students, making some of the rooms more attractive,
and using hotel space for a few weeks in the Fall, if needed, until "no shows" are
determined. Long-term growth of new students and retention of upper class stu-
dents in student housing will require new housing facilities. The new housing
may include on-campus housing near the Gladding Residence Center or a pri-
vate developer working with the University.
On motion made and seconded, the following items from the Consent
Agenda were approved:
Board of Visitors
Minutes of a Meeting held November 21, 1996
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Academic Policy Committee
Minutes of a Meeting held November 20, 1996
Teaching Award
Advancement Committee
Minutes of a Meeting held November 20, 1996
Audit Committee
Minutes of a Meeting held November 21, 1996
Finance and Investment Committee
Minutes of a Meeting held November 20, 1996
General Intent to Reimburse Resolution (see Resolution below)
Health Affairs Committee
Minutes of a Meeting held November 20, 1996
Property Committee
Minutes of a Meeting held November 20, 1996
Architect/Engineer Selection for Student Housing
Renovations, Phase II
Architect/Engineer Selection for Track and Soccer
Center
Architect/Engineer Selection for West Hospital Life and
Fire Safety
Project Plans for Clinical Research Center, North
Hospital
Project Plans for Outpatient Cancer Center, North
Hospital
Student Affairs Committee
Minutes of a Meeting held November 20, 1996
RESOLUTION OF VIRGINIA COMMONWEALTH UNIVERSITY
DESIGNATING THE VICE PRESIDENT FOR FINANCE AND
ADMINISTRATION
AS THE PERSON AUTHORIZED
TO DECLARE OFFICIAL INTENT
TO ISSUE BONDS TO REIMBURSE EXPENDITURES
WHEREAS, the United States Department of the Treasury has promul-
gated Treasury Regulations Section 1.150.2 (the "IRS Regulations") governing
when the allocation of bond proceeds to reimburse expenditures previously
made by an issuer or beneficiary of a bond issue shall be treated as an expen-
diture of the bond proceeds; and
WHEREAS, the IRS Regulations provide that a declaration of official in-
tent by an issuer or beneficiary may provide evidence that, on or prior to the date
of payment of expenditures, the issuer or beneficiary intended to reimburse such
expenditures with proceeds of bonds; and
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WHEREAS, Virginia Commonwealth University issues bonds, or is the
beneficiary of bonds, from time to time, issued pursuant to Article X, Section 9(d)
of the Constitution of Virginia (the "Bonds"); and
WHEREAS, Section 1.150-2(e)(1) of the IRS Regulations authorize any
person or entity designated by the issuer to declare official intent on behalf of the
issuer;
NOW, THEREFORE, BE IT RESOLVED THAT Virginia Commonwealth
University hereby designates its Vice President for Finance and Administration
as a person authorized to declare official intent on behalf of Virginia Common-
wealth University pursuant to the IRS Regulations.
Adopted by Virginia Commonwealth University this 16th day of January,
1997.
On motion made and seconded, the Items on the Consent Agenda for In-
formation were accepted.
On motion made and seconded, the Board convened into executive ses-
sion to discuss certain personnel matters involving the performance of identifi-
able 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 Draft Affiliation Agreement
between Virginia Commonwealth University and the Medical College of Virginia
Hospitals Authority, the Draft Bylaws for the Medical College of Virginia Hospitals
Authority, the Draft Master Lease, the Draft Clinical, Educational and Research
Service Agreement (CERSA), the Draft Operations and Services Agreement
(OSA), Faculty Appointments and Changes in Status and other Personnel Ac-
tions, the Full and Consultative Hospital Privileges, and the Revised Bylaws and
Rules and Regulations of the Medical Staff and the Report of the Vice President
for Health Sciences, and to discuss legal matters and probable litigation with its
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attorney including the Report of the General Counsel and the aforementioned
Audit Reports as may be necessary, and to discuss matters relating to gifts, be-
quests, and fundraising activities including the Report of the Vice President, the
Campaign Update, the Development Report, a Report on Alumni and Friends
Challenge 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(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 discussed in the executive ses-
sion meeting to which this certification resolution applies, and (ii) only such public
business matters as were identified in the motion convening the executive ses-
sion 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 Absent
Mr. Edward L. Flippen X
Mr. M. Boyd Marcus, Jr. X
Mr. Steven A. Markel X
Dr. W. Baxter Perkinson, Jr. X
Ms. Diane Linen Powell Absent
Mr. Robert E. Rigsby X
Dr. Lindley T. Smith Absent
Mr. Ted L. Smith X
Mr. Clarence L. Townes, Jr. X
Dr. David A. Vaughan X
Ms. Sandra M. Adair Vaughan Absent
Mr. Jay M. Weinberg X
Dr. H. George White, Jr. Absent
Dr. Percy Wootton X
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Vote:
Ayes: 11
Nays: 0
ABSENT DURING MEETING: 5
ABSENT DURING VOTING: 5
On motion made and seconded, the Board accepted the Report of the
President; approved Faculty Appointments and Changes in Status and other
Personnel Actions, as amended; approved the Full and Consultative Hospital
Privileges, the Named Funds Report; approved the Revised Bylaws and Regula-
tions of the Medical Staff; accepted the Report of the Special Awards Committee;
accepted the Executive Session Committee Reports and accepted the Report of
the General Counsel.
The meeting was adjourned at 12:15 p.m.
Stuart C. iegel, Rector
Edward L. Flippen, ecretary
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