April 23 2001 BOT Special Minutes

Special Meeting of the Board of Trustees
of the University of Louisville

In Open Session
The Board of Trustees of the University of Louisville met on Monday, April 23, 2001 in the Jefferson Room of Grawemeyer Hall with the members present and absent as follows:

Present: Mr. T. W. Samuels, Jr., Chairman, Presiding
Mr. Ulysses L. Bridgeman, Jr., Treasurer
Mrs. Linda Wallbaum Cauble
Mrs. Ann Ford Cobb
Mr. Kevin D. Cogan
Dr. Richard C. Feldhoff
Mr. Grant M. Helman
Mr. Milton M. Livingston
Ms. Jessica Loving (arrived at 4:20 p.m.)
Mr. William P. Mulloy, Sr.
Mr. Darryl T. Owens (departed at 5:05 p.m.)
Mr. J. Chester Porter
Ms. Angela M. Richie
Mrs. Joyce Hagen Schifano (departed at 5:20 p.m.)
Mrs. Melissa Long Shuter
Mrs. Sandra Metts Snowden
Mrs. Elizabeth H. Worland
Mrs. Mary A. Yarmuth
Absent: Mrs. Marie K. Abrams
Mr. Nathaniel E. Green
From the University:
Dr. John W. Shumaker, President
Dr. Carol Z. Garrison, Provost
Mr. Joseph S. Beyel, Vice President for Development and    Alumni
Dr. Denise D. Gifford, Vice President for Student Affairs
Dr. Nancy C. Martin, Vice President for Research
Dr. Ronald L. Moore, Vice President for Information Technology
Mr. Larry L. Owsley, Vice President for Finance &    Administration
Mr. David F. Barker, Director of Audit Services
Ms. Cheri Jones, Associate Director, Audit Services
Mr. Michael J. Curtin, Director, Planning and Budget
Mr. Thomas H. Lyons, University Counsel
Mrs. Terri Rutledge, Associate Vice President for Finance &    Administration
Ms. Trisha Wolf, Board Liaison, President's Office
Dr. Eugene Gilchrist, Consultant
Ms. Carolyn Cochran, Office of the Provost
Mr. James Harris, Executive Vice President, Student Government Association
Mr. Carlton Brown, Incoming Student Government Association    President
Dr. Peter Hasselbacher
Mr. Bill Nunez, Office of Planning and Budget
Ms. Susan Ingram, Office of Planning and Budget
Dr. Joanne Rowe, School of Education
Dr. Diane Kyle, School of Education
Mrs. Debbie Dougherty, Board Liaison, President's Office
Ms. Rae Goldsmith, Associate V. P. for University Relations
Mr. John Drees, Director of Public Information
Mrs. Kathleen M. Smith, Assistant Secretary, Board of Trustees

I. Call to Order

Having determined a quorum present, Chair Samuels called the meeting to order at 4:20 p.m.

II. Consent Agenda

Chair Samuels called the role of consent agenda items as follows:

A. Approval of Minutes

  • Minutes of Regular Board meeting, 2/26/01
  • Minutes of Executive Committee meeting, 3/26/01

B. From Academic and Student Affairs Committee and Personnel Committee

  • Approval of Outcomes Research Institute
  • Approval of Proposal to Establish Spinal Cord Injury Research Center
  • Approval of Diversity Vision Statement
  • Approval of Monthly Personnel Actions

C. Candidates for Degrees and Certificates in May

Hearing no opposition from any Trustee present, the Chair declared the Consent Agenda actions adopted.

III. Trustees Award Nomination

Committee Chair Cobb reported the Committee met twice to review 22 nominations and narrowed the pool to three finalists before selecting Dr. Joanne Rowe as its recommendation for the 2001 Trustees Award. Dr. Rowe currently serves the University as Professor of Health Promotion, Physical Education and Sport Studies in the College of Education and Human Development and as Assistant Dean of the Graduate School. Mrs. Cobb read the following testamentary statement about Professor Rowe's candidacy.

Dr. Rowe has made significant contributions to the disabled populations throughout Jefferson County, with her volunteer programs. She designed the Motor Skill and Motor Learning Lab areas in Crawford Gym, and actively pursued other structural changes to ensure accessibility for all individuals. Dr. Rowe is devoted to working with students with disabilities and she excels in this area. She developed and teaches a class that is specifically targeted for students with disabilities. One student with a visual disability commented on Dr. Rowe's assistance in other classes he was taking…because of his disability, he failed the final. The student talked with the instructor, but was not allowed to retake the test. The student talked with Dr. Rowe, and within a few days, the instructor contacted the student and allowed him to retake the test.

Dr. Rowe made a contribution to nontraditional students when she designed and began teaching HPES 144, Physical Activity for the Older Adult. The nominator continued, "Jo also goes out of her way to advise and teach nontraditional students who are having difficulties adjusting to either starting or returning to college and she constantly advocates and supports their cause." Many students commented regarding her willingness to listen to them.

She has served on the Athletic Association Board of Directors for a number of years and has been a strong voice for equal opportunity for women athletes. One nominator said, "I know of no other faculty member who has had more impact on gender equity discussions than has Joanne Rowe. Long before the hiring of Tom Jurich and the creation of the Gender Equity Committee, Joanne lobbied tirelessly to defend the needs of our women students."

One nominator concluded her letter by saying, "Jo Rowe has made numerous contributions to our students. These contributions have been vital to their professional growth and have substantially improved the quality of their undergraduate experiences." She has been described as a demanding yet caring, disciplined yet soft, shrewd yet unaffected one-on-one mentor and friend to our students. Another nominator said, "Jo is a champion of the underserved. She willingly steps forward to make life a little easier for those around her…She is one of those who makes a difference." She has been described as a caring individual, who takes a personal interest in her students by checking their progress on a regular basis.

Trustee Cobb moved that the Board accept the Committee's recommendation for the 2001 Trustees Award. Dr. Feldhoff seconded the motion, which passed unanimously. Chair Samuels introduced Joanne Rowe to the Board as the recipient of the 2001 Trustees Award and asked her to make a few comments to the group.

Dr. Rowe thanked the Committee for its work and the Board for making this award available to faculty. She also said the faculty admired this award and the Board honors all faculty each time it selects a winner. The Board gave Dr. Rowe a round of applause. Chair Samuels thanked Dr. Rowe for her work with all students, especially those with physical challenges.

IV. Executive Session

In response to a request from the Chair, Mr. Porter moved and Mrs. Cobb seconded the motion to go into Executive Session to discuss personnel matters. The motion passed unanimously.

V. Open Meeting Reconvenes

Chair Samuels reconvened the Open Session of the Board meeting at 4:35 p.m. and reported that personnel matters were discussed. President Shumaker presented the three nominees for the Board to consider granting honorary degrees to outstanding professionals who will enrich the educational experience of UofL students. Ms. Loving made a motion, seconded by Mrs. Cobb

to approve the President's recommendation for honorary degrees as follows:

Mary Rowntree, Doctor of Education (Honoris Causa)
Stephen Bright, Doctor of Public Service (Honoris Causa)
Robert Nardelli, Doctor of Business Administration (Honoris Causa) contingent upon approval of the Graduate Faculty at its 4/24/01 meeting).

VI. Progress Report on Challenge for Excellence

Chair Samuels noted President Shumaker will provide this report at the May meeting so that the Board could have additional time to discuss the Tuition proposal.

VII. Interim Report of Tuition Policy Committee

Dr. Shumaker summarized discussions about the proposed fee increases for School of Music students, whereby Trustee Richie expressed concern about the increase. The President noted the Council on Postsecondary Education (CPE) has advocated as a practice that tuition revenue of the state's higher education institutions generate roughly 37% of institutional operating funds (UofL's tuition revenue is approximately 31.3% of its total budget.) After discussing possible new fees at the Trustees' Finance Committee in March and listening to strong requests from student representatives for simplifying the tuition rate structure at UofL, the President proposed to consolidate tuition and mandatory fees into a single amount. This recommendation received a positive reception from the Tuition Policy Committee. The single rate will permit the University, with greater clarity, to convey tuition costs to current students, prospective applicants, parents, and the public. The University will publish a single tuition rate annually, which will not be subject to change during that period. Dr. Shumaker proposed capping annual tuition increases at 7% during the four years a student pursues an undergraduate degree, which he added is a very unique initiative and allows financial predictability for students. This cap will be in effect, unless there is some urgency for a higher increase, e.g., a significant budget reduction from the state or an emergency financial situation from one of the schools. In such event, the University's Tuition Policy Committee would again follow a similar process for review and approval. This change will take effect with the Fall 2001 semester. Trustee Richie thanked Dr. Shumaker and Mike Curtin for their assistance in working with her on this issue. She added that many students worry about escalating tuition fees. Responding to Trustee Richie's concern over increases in professional school tuition rates, Mr. Curtin advised that UofL professional school tuition rates compare well to, and in most cases are lower than, its benchmark institutions.

Ms. Richie read a Student Government Association Student Senate Resolution adopted in August 2000 regarding tuition increases. The Resolution is as follows:

22 AUGUST 2000

WHEREAS , The Student Government Association of the University of Louisville is responsible to fully serve and represent all students at the University of Louisville; and
WHEREAS , The last 15 years there has been an increase in tuition ranging from 1.5% to 16.7% per year; and
WHEREAS , The cost of being a student at the University of Louisville is increasing steeply and the costs of housing, food, transportation, health care, textbooks, etc. continue to rise; and WHEREAS, Tuition and fee increases are of great concern to an already financially strapped and increasingly indebted student body; and
WHEREAS , Affording short notice to the Student Government Association to deliberate on tuition and fee increases does not allow sufficient time to analyze the effect and impact that any increase will have on the student body and does not allow for adequate input from the student body; and
WHEREAS , Tuition and fee increases should benefit all students of the University of Louisville; and
WHEREAS , Student fee increases are not for the purpose of supplementing a university budget or for funding departmental costs that were once covered by the university; and
WHEREAS , Sudden increases in tuition and fees do not give the student body adequate time to financially plan for their tenure at the University of Louisville;
THEREFORE BE IT RESOLVED , that the University should understand that the Student Senate and the Student Government Association wish to work in cooperation with the University administration on matters such as tuition and fee increases; and
BE IT FURTHER RESOLVED , that the Student Government hereby formally requests that the maximum of 35% of the university's public funds come from tuition and fees, and that the university implements a maximum cap for tuition be set at a 6% increase per year; and
BE IT FURTHER RESOLVED , that the Student Senate and the Student Government Association believe that an adequate opportunity to contribute constructive advice and observations, including the exploration of potentially preferable alternatives, is fair and of benefit to both the student body and the administration when increased financial obligations for students are proposed; and
BE IT FURTHER RESOLVED , that the Student Government hereby formally requests that tuition to be set at least three (3) years before the increase will take effect, and that fee increases be set at least one year before the fee increase will take effect; that the administration work in cooperation with the Student Government Association for at least three (3) months while classes are in session during the fall or spring semesters to explore and develop preferable alternatives, and have the opportunity to share their perspectives on the purposes of such increases; and
BE IT FURTHER RESOLVED , that the Student Government hereby formally requests that any time the administration proposes a tuition or fee increase, the administration should make a presentation on the proposal to the Student Senate and a Town Hall meeting of the Student Government Association before the plan is presented to the Board of Trustees.

Mr. Porter made a motion, Mrs. Metts seconded the motion

to approve the President's recommendation for a single tuition rate per the schedule attached for the Academic Year (AY) 2001-02. (copy attached)

The motion passed without opposition.

VIII. Resolution Authorizing the Transfer of the Land Lease Granted to Collegiate Housing Foundation, Inc. (CHF) to UHL, Inc.

Dr. Shumaker advised that the complete set of actions follows:

  • ULH, Inc. the corporate entity that operated University Hospital prior to the Humana lease in the 1980s, will be restructured with a Board of Directors and Officers identical to the University of Louisville Foundation. The corporate purposes will be (a) to lease land and issue revenue bonds for university housing, and (b) to receive and dispose or retain gifts of real estate in a chain of title independent of the University of Louisville Foundation.
  • ULH, Inc. will approve a resolution to effect the bond sale, resulting in an improved leasing arrangement that will be passed on to the tenants of Bettie Johnson Hall.
  • The Board of Trustees will approve a recommendation to assign the land lease from Collegiate Housing Foundation, Inc. to ULH, Inc. so that bond refinancing may occur.
  • Refinancing will allow 1) a rental increase to be postponed; 2) an option of nine-month instead of twelve-month leases; and 3) a monthly credit to students for a portion of their utility costs.

Mr. Porter made a motion, seconded by Mrs. Metts

to adopt the President's recommendation authorizing the transfer of the land lease granted to Collegiate Housing Foundation, Inc. (CHF) to ULH, Inc. (copy attached)

There being no opposition, the motion passed unanimously.

IX. Policy on Privatizing Operations

President Shumaker presented the proposed policy statement with the approval of the Faculty and Staff Senates. He then asked the faculty and staff representatives to comment on the process. Trustee Shuter remarked that it was a pleasure to work with the President and his staff. She appreciated the opportunity to provide input regarding the policy. Trustee Feldhoff stated that both the Faculty and Staff Senate worked well with the President and Provost, and he continues to look forward to working with them on the implementation of this policy. Ms. Cauble made a motion, seconded by Ms. Shuter to

Adopt the President's recommendation regarding the policy on privatization as follows:

Privatization of any university activity shall be approved in advance by the Board of Trustees upon recommendation of the President after consultation with the Staff and Faculty Senates. In addition to budgetary factors, the Board of Trustees shall consider the relationship of such activities to core university functions. Privatized ventures with faculty participation shall be optional.

There being no opposition, the motion passed unanimously.

X. Report of the President

At the request of Dr. Shumaker, Mr. Owsley reported on the pending contract with Barnes and Noble to manage the bookstores at UofL and to replace the current agreement with Wallace's Bookstore. Payments by Wallace's Bookstores are current, but a serious issue is the firm's inability to order books because of its poor creditor relations. Mr. Owsley noted his pleasure to be working with Barnes and Noble again.

Dr. Shumaker described the careful review of the athletic budget situation, recognizing one important step toward addressing the situation will be to strengthen the financial management infrastructure. He introduced Dr. Eugene Gilchrist, who has been working at UofL in the capacity of consultant since April. Dr. Gilchrist will assume the responsibilities, effective May 1, 2001, of chief financial officer in athletics, as well as Assistant to the President. Dr. Gilchrist thanked Dr. Shumaker and the Board of Trustees for this opportunity. Dr. Gilchrist noted the Athletics Department is a very successful organization and has worked hard on its goal to achieve gender equity. At the same time, he noted growing pains and management stress can be experienced by such quick growth.

Dr. Shumaker reported that in mid May, he will join the governor on an international trade mission to Japan and Korea to promote new business development in Kentucky. Dr. Shumaker noted that Hyundai bought Kia Motors, and is seeking a U.S. location. Dr. Shumaker will serve as the Governor's emissary to these important firms and facilitate the Governor's meetings.

Dr. Shumaker further reported that the Gheens Science Center will be dedicated tomorrow. He promised an astonishing show.

XI. Report of the Chair

Chair Samuels advised the date is not set yet to hold the joint meeting of the UofL and UK boards of trustees meeting. This meeting will be a great opportunity for the Commonwealth of Kentucky. He thanked Dr. Shumaker for his leadership on this issue.

Both Chair Samuels and President Shumaker expressed appreciation to Angela Richie on this occasion of her last meeting. Mr. Helman made a motion, which was seconded by Mrs. Cauble

to adopt the following Resolution in appreciation of Angela Richie's work:

WHEREAS , Angela M. Richie served the University of Louisville faithfully, energetically, and effectively as a student member of the Board of Trustees;

WHEREAS , in her capacity as a member of the Board, she distinguished herself as a hard-working and cooperative participant in a wide range of Board activities, winning the respect and affection of her fellow Trustees;

WHEREAS , she served as vice chair of the Academic and Student Affairs Committee, as well as a member of standing committees of the Board, including the Executive Committee and the 2000-2001 Trustees Award Committee;

WHEREAS , she served diligently and capably as a member of the Boards of Directors of the University of Louisville Athletic Association, Inc., the University of Louisville Research Foundation, Inc., and ULH, Inc.;

WHEREAS , she provided great insight through her service on University-wide committees, including the University-wide Policy Advisory Committee and the University's Budget Advisory Committee;

WHEREAS , she is widely regarded by her University colleagues as a staunch advocate for the welfare of the University students and has very ably and forcefully expressed the views of the students to the University Administration and the Board of Trustees;

NOW THEREFORE BE IT RESOLVED , that the Board of Trustees of the University hereby expresses its sincere admiration and deep appreciation to Ms. Angela M. Richie for her outstanding performance as a member of the Board of Trustees from April 2000 to May 2001; and

BE IT FURTHER RESOLVED , that a copy of this Resolution, appropriately signed, be presented to Ms. Richie.

The motion passed unanimously.

President Shumaker stated that it has been a delight to work with Ms. Richie who had great focus and clarity. The Board recognized Ms. Richie with a round of applause. Ms. Richie expressed her appreciation to the Board of Trustees.

Ms. Richie introduced Mr. Carlton Brown, a Speed Scientific School student, as the new student body representative.

XII. Adjournment

The meeting adjourned at 5:25 p.m.

Office of the President

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