MINUTES OF A MEETING OF THE
EXECUTIVE COMMITTEE OF THE
BOARD OF VISITORS OF
VIRGINIA COMMONWEALTH UNIVERSITY
September 17, 2002
A meeting of the Executive Committee of the Board of Visitors of Virginia
Commonwealth University was held on Tuesday, September 17, 2002, in the
University Meeting Center located at 101 North Harrison Street.
Present were Dr. Perkinson (Rector), Messrs. Axselle, Markel and Rigsby;
and Mrs. Petera. Also present were Dr. Long, a member of the Board of Visitors,
Drs. Trani, Kontos, Peale, Retchin, Torr, and Toscan; Messrs. Blanks, Messplay
Ross, Timmreck and Wyeth; and Mesdames Balmer, Chinnici and Messmer.
Dr. Perkinson called the meeting to order. The State Budget Reduction
Briefing was presented. On August 19, 2002, Governor Warner directed
agencies and institutions to prepare reduction plans of 7%, 11% and 15% of the
general fund budgets. At the 15% reduction level, VCU would experience a
26.7% reduction in general funds from 2001-02 (pre-reduction) levels by 2003-
04. VCU's reductions are particularly challenging because VCU has the largest
percentage of Virginia resident students of all doctoral institutions and the largest
percentage of general funds. VCU's enrollment projections through 2005-06
reflect steady growth in Virginia residents with little immediate prospect of
additional state funding support. Although tuition increases in the current year
were larger than what VCU has seen since the early 1990s, 2002-03 rates for
resident undergraduates are less than the 1990-91 rate adjusted for inflation.
VCU's budget reduction planning process stressed communication,
collaboration and differential cuts. The University identified some actions that
were used to reduce cuts to instructional programs. Beyond the reduction offsets
that have been identified as a part of the draft plans, the University is considering
additional options: imposition of a course withdrawal fee; closing the University
during the winter holidays; offsetting reductions in auxiliary enterprise programs
(intercollegiate athletics and Student Affairs). Moreover, additional tuition
revenue from enrollment growth will be directed to those schools with the largest
enrollment increases, primarily the College of Humanities and Sciences.
Reductions will be extremely difficult to achieve and involve layoffs, reductions in
course offerings, and increased class sizes.
Larger budget reductions in the Schools of the Arts, Education,
Engineering, and Graduate Studies will result in smaller budget reductions in the
College of Humanities and Sciences, VCU Libraries, the Schools of Business
and Social Work and the 2003 Summer School. Targeted budget actions in
Health Sciences will enable smaller reductions for the Schools of Nursing and
Allied Health.
Finance and Administration must deal with both reductions in operating
funds and significant reductions in maintenance reserve funding. One of VCU's
major concerns continues to be the reductions in maintenance reserve funding.
Last biennium and before the mid-year reductions, VCU's maintenance reserve
funding was $9.6M; mid-year reductions reduced the funding to $7.2M. The
2002-04 budget approved by the General Assembly in the spring of 2002
2
reduced the funding to $4M. The Governor is withholding one-half of VCU's
funding, leaving VCU with about $2M for the biennium to address major repairs
to roofs, chillers and structural repairs. The reductions reinforce the importance
of the General Obligation Bond Bill. Many of the Bond Bill projects entail major
renovations of existing structures. Dr. Kontos and Dr. McDavis also made
comments on the State Budget Reduction.
Following a brief presentation and on motion made and seconded, the
following Resolution was approved:
RESOLUTION OF THE EXECUTIVE COMMITTEE OF THE BOARD OF
VISITORS OF VIRGINIA COMMONWEALTH UNIVERSITY APPROVING A
PROJECT FOR BOND FINANCING
WHEREAS, the Board of Visitors (the "Board") of Virginia Commonwealth
University (the "Institution") adopted a resolution on August 2, 2002 (the "Prior
Resolution") authorizing the issuance and sale of the Institution's 2002A Note to
the Virginia College Building Authority (the "Authority") under the 2002A Loan
Agreement to finance or refinance from the proceeds of the Authority's
Educational Facilities Revenue Bonds (Public Higher Education Financing
Program), Series 2002A all or a portion of the costs of construction and
improvement of the Institution's Bowe Street parking, arts laboratory and athletic
facility, the construction and acquisition of housing (the Capitol Medical Building)
for the Academic Campus and construction of Gladding Residence Hall, all
located on the Institution's Academic Campus (collectively, the "2002A Project"),
provided that, among other things, the principal amount to be paid under the
2002A Note shall not be greater than the aggregate amount authorized for the
2002A Project by the General Assembly of Virginia, including any adjustments
required or permitted by law, and in no event shall exceed $30,000,000; and
WHEREAS, the Institution further desires to finance an additional Project
with proceeds of the 2002A Note under the 2002A Loan Agreement through the
Program in accordance with the terms and conditions of the Prior Resolution as
supplemented hereby;
NOW, THEREFORE, BE IT RESOLVED BY THE EXECUTIVE
COMMITTEE OF THE BOARD OF THE INSTITUTION:
Section 1. The 2002A Project is hereby supplemented to include the
Institution's Renovation and Construction of an Addition to Student Centers
(Student Commons-Phase III) Project (the "Student Commons Project").
Section 2. The principal amount to be paid under the 2002A Note with
respect to the Student Commons Project shall not exceed $10,000,000 and shall
otherwise be consistent with the parameters set forth in Section 3 of the Prior
Resolution so that the total principal amount of indebtedness authorized by the
Prior Resolution and this resolution does not exceed $40,000,000. Subject to the
applicable terms and conditions of the Prior Resolution, the principal amount of
the 2002A Note shall not without further authorization exceed $40,000,000.
Section 3. The authorization to officers of the University with respect to
the 2002A Project, the 2002 Note and related financing documents is extended
to cover the Student Commons Project, the portion of the 2002A Note related to
the Student Commons Project and all related documents.
Section 4. Any capitalized term used but not defined herein shall have
the meaning given such term in the Prior Resolution.
Section 5. This resolution shall take effect immediately upon its
adoption.
On motion made and seconded, the Executive Committee convened into
closed 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 evaluation will
necessarily involve discussion of the performance of specific individuals,
including matters concerning the School of the Arts; and to consult with legal
counsel pertaining to specific legal matters requiring the provision of legal advice
or counsel, where such consultation or briefing in open meeting would adversely
affect the negotiating or litigating posture of VCU, including a report from General
Counsel, as authorized by Section 2.2-3711 A(1) and A(7) of the Virginia
Freedom of Information.
Following closed 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 closed session
meeting to which this certification resolution applies, and (ii) only such public
business matters as were identified in the motion convening the closed session
meeting were heard, discussed or considered by the Executive Committee of the
Board of Visitors of Virginia Commonwealth University.
Roll Call Vote Ayes Nays
Dr. W. Baxter Perkinson, Jr., Rector X
Mr. Ralph L. "Bill" Axselle, Jr. Left before voting
Mr. Steven A. Markel X
Mrs. Anne P. Petera X
Mr. Robert E. Rigsby X
Vote:
Ayes: 4
Nays: 0
ABSENT DURING MEETING: 0
ABSENT DURING VOTING: 1
The meeting was adjourned at 3 p.m.
