MINUTES OF A REGULAR MEETING OF THE
BOARD OF VISITORS OF
VIRGINIA COMMONWEALTH UNIVERSITY
May 15, 1998
A regular meeting of the Board of Visitors of Virginia Commonwealth Uni-
versity was held on Friday, May 15, 1998, at 9 a.m. in the University Meeting
Center.
Present were Messrs. Weinberg (Rector), Flippen, Markel and Townes;
Drs. Perkinson, Smith, Vaughan and White; and Ms. Powell. Absent were
Messrs. DeRusha, Marcus, Rigsby and Smith; Dr. Wootton; and Mesdames
Benner and Miles. Also present were Drs. Trani, Harris, Hiley, Kontos and
Rhone; Messrs. Bunce, Dayhoff, Gehring, Ross, Timmreck and Wyeth; and
Mesdames Jones, Messmer and Price.
Mr. Weinberg called the meeting to order and welcomed members of the
press.
The Report of the President followed:
The 1998-99 Board of Visitors Teaching Fellows were introduced.
Dr. Daisy F. Reed is Professor of Curriculum and Instruction in the School
of Education's Division of Teacher Education. Dr. Reed joined VCU in
1976. Dr. M. Samy EI-Shall is Professor of Chemistry in VCU's College of
Humanities and Sciences. Dr. EI-Shall came to VCU in 1989.
Ms. Carly Massey, Student Representative to the Board, will receive a
Bachelor of Fine Arts at Commencement on May 16, 1998. Ms. Massey
will be attending law school in New York in the fall. Ms. Massey was pre-
sented with a gift from the Board.
An update on enrollment figures was presented.
Ms. Powell reported for the Advancement Committee. University News
Services (UNS) has debuted a national video news release program. The pro-
gram is unique to others because of UNS's distribution method. VCU's video
release will be distributed to all NBC affiliates across the country on the network's
national satellite feed. Two VCU video news stories will be sent to 209 NBC af-
filiates each month. Once in the hands of the individual television stations, pro-
ducers will decide if and when the video release will air. WWBT, Channel 12,
has agreed to feed the news releases to NBC via satellite from the offices in
Richmond. Topics for the video pieces will range from medicine to technology to
educational programs at VCU and the hospitals. To help get the program off the
ground, UNS has brought on a full-time videographer/editor. The External Rela-
tions Report and the Advancement Division Reports were presented for informa-
tion.
Mr. Markel reported for the Finance and Investment Committee. A Bond
Resolution: Virginia College Building Authority (VCBA) Pooled Bond Program
was presented. Discussion followed regarding the terms of the University's par-
ticipation in the VCBA program, including the maximum amount to be borrowed
and interest rates, all as described in materials provided to the University by the
VCBA. The Committee recommended to the Board approval of further participa-
tion by the University in the Virginia College Building Authority (VCBA) Pooled
Bond Program, including the 1998 Loan Agreement and execution and issuance
of the 1998 Note to finance or refinance portions of the Fine Arts Center, Phase II
Project, the Repair Residence Halls Project, and the Renovations to the Parking
Deck "D" project, subject generally to the terms and conditions in the materials
and information provided to the University by the VCBA.
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The Operations and Services Agreement (OSA) with the Medical College
of Virginia Hospitals Authority was presented for information. The affiliation be-
tween VCU and the MCVH Authority required an OSA be developed to ensure
the continuation and expansion of services provided by one party to the other to
promote efficiencies and economies of scale beneficial to both parties.
Dr. White reported for the Health Affairs Committee. The Clinical, Educa-
tional and Research Services Agreement was presented. The Affiliation Agree-
ment between VCU and MCV Hospitals Authority requires a Clinical, Educational
and Research Services Agreement (CERSA) in recognition of the mutual inter-
dependence of the Health Sciences Schools and the Medical College of Virginia
Hospitals Authority (MCVHA). The CERSA became effective July 1, 1997, and
renews automatically for one-year terms, subject to annual review and modifica-
tion. Total CERSA Funding from MCVHA to VCU for 1998-99 is approximately
$29.6 million with payments to MCV Hospitals from VCU being $622,095 for the
Blackstone Family Practice residents' salaries for 1998-99. The Health Affairs
Committee recommended to the full Board for approval the Clinical, Educational
and Research Services Agreement for 1998-99.
The Sole Source Indigent Care Contract with MCV Physicians (MCVP) for
1998-99 was presented. MCVP will provide physician and other healthcare pro-
vider services for the care of indigent patients at MCV Hospitals. MCVP will work
with MCV Hospitals to determine the eligibility of patients lacking the necessary
financial resources or for patients that have exhausted insurance benefits and
comply with the "Guidelines for the Determination of Eligibility of Indigent Per-
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sons" as agreed to by the Commonwealth of Virginia. MCVP will provide high-
quality, cost-effective patient care services to patients identified as indigent. The
contract amount is for $13.8 million (estimated) for 1998-99 fiscal year. The
contract period is for July 1,1998 through June 30, 1999. The Health Affairs
Committee recommended to the full Board for approval the Sole Source Indigent
Care Contract Renewal between VCU and MCV Physicians for 1998-99.
Mr. Markel reported for the Property Committee. The Architect Selection
for Sanger Hall Renovations was presented. The purpose of the project is to re-
pair, replace, and improve major building systems in Sanger Hall. The scope of
work includes: elevator upgrades; improvements to the existing heating, ventila-
tion and air conditioning (HVAC) system; improvements to the electrical and
emergency generator systems; improvements to the existing building envelope;
classroom modernization; and other limited architectural renovations. The con-
struction budget is $10,700,000 with a total budget of $13,292,000. LKPW Ar-
chitects, LLP is the firm recommended for the project. The Property Committee
recommended to the full Board the approval of the firm of LKPW Architects, LLP
as the Architect Selection for Sanger Hall Renovations.
The Architect Selection for the Hibbs Food Services Renovations was
presented. The project renovates major portions of the first and second floors
and a small portion of the basement to expand and consolidate food services
functions within the Hibbs building, the only facility on the academic campus
which serves students enrolled in the University's board plan. The scope of work
includes: consolidating and modernizing serving, dining and food preparation for
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students, converting the second floor kitchen to a catering kitchen, and upgrading
related support facilities for a more streamlined and efficient food service opera-
tion. The construction budget is $1,925,000 with a project budget of $3,500,000.
MMM Design Group is the firm recommended for the project. The Property
Committee recommended to the full Board the approval of the Architect Selection
of MMM Design Group.
The Architect Selection for the Hibbs Computer Laboratory Renovations
was presented. The project renovates 15,000 GSF in the basement of the Hibbs
Building for use as a state-of-the-art computer lab, not only for individual student
use but also for teaching and small classes. The construction budget is
$350,000 with a project budget of $630,000. Cheryl D. Moore, Architect is the
firm recommended for the project. The Property Committee recommended to the
full Board the approval of Cheryl D. Moore, Architect, for the Hibbs Computer
Laboratory Renovations.
The Architect Selection for the Business Building Structural Deflection was
presented. The project corrects recently discovered structural deficiencies in the
School of Business Building. To correct a sagging floor condition, load-bearing
columns will be added at each of the four corners of the building. The additional
columns are expected to prevent weakening of the existing columns supporting
the sagging slab and reinstate the structural integrity of the building. The firms
of Marcellus Wright Cox & Smith Architects, P.C. and Dunbar, Milby, Williams,
Pittman & Vaughan are recommended as architects for the project. The con-
struction budget is $490,000 with a project budget of $650,000. The Property
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Committee recommended to the full Board the approval of Marcellus Wright Cox
& Smith Architects, P.C. and Dunbar, Milby, Williams, Pittman & Vaughan as ar-
chitects for the Business Building Structural Deflection project.
The Architect Selection for the School of Pharmacy Renovations was
presented. The project converts a 1,776 GSF wet laboratory into a new "skills
center" to train students to better interact with patients in today's customer ori-
ented health care environment. The skills center will incorporate: patient con-
sultation rooms; patient counseling sections; space simulating a hospital phar-
macy environment (compounding and dispensing areas, sterile products area,
biotechnology room, and patient education areas), and related support space.
The construction budget is $310,000 with a project budget of $500,000. The firm
of Vitetta Group was recommended for the project. The Property Committee
recommended to the full Board the approval of the architect firm of Vitetta Group
for the project.
The Lease of Facilities at 1001 East Broad Street was presented. The
Richmond Aids Consortium of the School of Medicine's Infectious Disease Divi-
sion has been located at 1001 East Broad Street for the past five years. The cur-
rent lease expires on May 31, 1998, and the consortium wishes to remain in the
location. The long-term objective of the consortium is to discover improved clini-
cal methods to manage HIV. A market survey is underway to compare the pro-
posed rental rate with comparable space. The lease will provide for a five (5)
year initial term and automatic renewal options. The proposed lease term is for
an initial term June 1, 1998, to June 30, 2003, with automatic year to year re-
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newals. The proposed rental rate is not anticipated to exceed $25,000 annually
for the initial term of the lease. The Property Committee recommended to the full
Board the approval of the lease at 1001 East Broad Street for a full five-year, full
service lease for a 1,631 square foot office facility.
The Lease of Facilities at 1500 West Broad Street was presented. The
lease is for a 4,000 square foot vehicle maintenance facility plus 17,400 square
feet of land at 1500 West Broad Street, currently occupied by VCU's Physical
Plant Motor Pool. The lease will continue to provide a vehicle maintenance facil-
ity and parking area for the Physical Plant Motor Pool. The facility maintains and
services a variety of vehicles used by the University. The lease will provide for a
three (3) year initial term and automatic renewal options. The lease term is from
June 1, 1998 to May 31, 2001, with automatic annual renewals. The rental rate
is $32,000 annually for the initial term of the lease. The University will be respon-
sible for all operating costs and maintenance expenses. The Property Commit-
tee recommended to the full Board the approval of the Lease of Facilities at 1500
West Broad Street.
The Lease of Facilities for the Virginia Institute for Developmental Disabili-
ties was presented. The lease is for approximately 6,000 square feet. The Vir-
ginia Institute for Developmental Disabilities is currently located on the 15th and
16th floors of the Historic District Hotel located at 301 West Franklin Street. The
Institute provides interdisciplinary training and technical assistance, develops and
offers individual family-centered services; disseminates information and products;
conducts research; promotes prevention; and advances policy changes and ad-
versary efforts. The hotel is embarking on a major renovation with an unclear
completion date. Therefore, termination notice was given to the property man-
ager effective June 30, 1998. The proposed initial lease term is for July 1, 1998
to June 30, 2003, with automatic year to year renewals. The proposed rental
rate is anticipated not to exceed $72,000 annually for the initial term of the lease.
The realtor is offering free rent or parking or a combination of both. The recom-
mendation is to enter into a five-year, full service lease for a 6,000 square foot
office facility at 700 East Franklin Street. The Property Committee recommended
to the full Board the approval of the Lease of Facilities for Virginia Institute for
Developmental Disabilities at 700 East Franklin Street.
The Revised Occupancy Agreement for the Workplace Initiatives Program
was presented. Under the terms of the Master Lease Agreement between VCU
and the Virginia Biotechnology Research Park Authority, VCU wishes to lease
approximately 15,000 rentable square feet of space. The proposal also includes
the fit-up of approximately 638 square feet of space in Biotech One for use by the
Workplace Initiatives Program (Integrated Maintenance Management Program).
The Property Committee recommended to the full Board the approval of the Re-
vised Occupancy Agreement for Biotech One with the Workplace Initiatives Pro-
gram.
Mr. Townes reported for the Academic Policy Committee. A Program Clo-
sure for the B.A. Degree in Chemistry was presented. Historically, the Depart-
ment of Chemistry offered both a B.A. and B.S. degree in chemistry. The differ-
ence in degree requirements was primarily the difference in general education
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requirements. Offering a B.A. in chemistry is an artifact of an early stage in Vir-
ginia Commonwealth University's history. There are no longer differences be-
tween the general education requirements for a B.A. and B.S. degree in the Col-
lege of Humanities and Sciences. No students have been enrolled in the B.A.
program in chemistry for 20 years. The request to discontinue the B.A. in chem-
istry reflects the fact. The request has been reviewed and approved by the Col-
lege of Humanities and Sciences Curriculum Committee, the University Under-
graduate Curriculum Committee, President's Council, and University Council.
The Academic Policy Committee recommended to the Board the approval of the
proposal to close the B.A. degree program in Chemistry.
An Organizational Change for the Department of Pharmacy, School of
Pharmacy was presented. The organizational change is a response to the in-
crease in clinical faculty in the School of Pharmacy subsequent to the imple-
mentation of the PharmD program and the recommendation by the accrediting
body for the School of Pharmacy. The Academic Policy Committee recom-
mended to the Board the approval of the proposal to create a Department of
Pharmacy, with a Division of Pharmacy Administration, within the Department of
Pharmacy.
The Faculty Transition Incentive Program was presented for information.
The VCU Faculty Senate drafted the Faculty Transition Incentive Program, which
has been reviewed by several governing groups in the University and by legal
counsel. The purpose of the Program is to provide a mechanism for the release
of tenured faculty resources for budget reallocation or reduction in accordance
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with the University Strategic Plan goals, changes in enrollment, and other Uni-
versity needs. The program is a management tool, not a faculty fringe benefit
program. The plan will be brought back to the Board for action in September or
November, 1998, and, if approved, will require approval by the Attorney Gen-
eral's office and the Internal Revenue Service.
A Report on Minority Faculty was presented for information. VCU has
made significant progress in increasing the numbers of minorities and females in
instructional faculty positions over the past five years. The report presented by
the Director of EEO/AA Services included on-going recruitment and retention
strategies.
A Report on Grants, Contracts, and Intellectual Property was presented
for information. The report indicates that VCU continues to exceed in all criteria
to maintain prestigious recognition as a Research I University. Faculty members
were awarded more than $96 million in external funds for fiscal year 1997. Ef-
forts to increase the amount to $135 million in the Strategic Plan will require con-
certed activities and appropriate resources such as start-up costs for faculty.
The Strategic Plan Phase II Implementation Report was presented for in-
formation. The report included a detailed summary of accomplishments and
plans related to each of the objectives under the strategic directions identified in
the plan.
Mr. Townes reported for the Student Affairs Committee. A Report on New
Facilities was presented. Effective August 1, 1998, the Welcome Center will be-
come the site where prospective students and families will be welcomed to VCU.
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