February 26 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, February 26, 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
Mr. Nathaniel E. Green, Secretary
Ms. Linda Wallbaum Cauble
Mrs. Ann Ford Cobb
Mr. Kevin D. Cogan
Dr. Richard C. Feldhoff
Mr. Grant M. Helman
Mr. William P. Mulloy, Sr.
Mr. J. Chester Porter
Ms. Angela M. Richie
Mrs. Joyce Hagen Schifano
Ms. Melissa Long Shuter
Mrs. Sandra Metts Snowden
Mrs. Mary A. Yarmuth
Absent: Mrs. Marie K. Abrams
Mr. Milton M. Livingston
Mr. Darryl T. Owens
Mrs. Elizabeth H. Worland
Conference Call: Ms. Jessica Loving
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
Mr. Daniel Hall, Vice President for University Relations
Dr. Joel A. Kaplan, Vice President for Health Affairs
Dr. Nancy C. Martin, Vice President for Research
Mr. Ronald L. Moore, Vice President for Information Technology
Mr. Larry L. Owsley, Vice President for Finance &     Administration
Mr. David F. Barker, Director of Internal Audit
Mr. Michael J. Curtin, Director, Planning and Budget
Mr. Thomas H. Lyons, University Counsel
Mr. Ralph Fitzpatrick, Special Assistant for Minority Affairs
Mrs. Terri Rutledge, Associate Vice President for Finance &     Administration
Ms. Trisha Wolf, Board Liaison, President's Office
Ms. 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 4:07 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, 11/27/00
  • Minutes of Special Board Meeting, 12/21/00
  • Minutes of Executive Committee Meeting, 1/22/01

B. From Academic and Student Affairs Committee:

  • Approval of Rapid Prototyping Center
  • Approval of Certificate in Environmental Engineering

C. From Personnel Committee:

  • Approval of Personnel Document for University Libraries
  • Approval of Personnel Actions

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

III. Presentation on Privatization Initiative

Trustee Mulloy reviewed the Committee's process that led to the selection of the Greenebaum, Doll, & McDonald firm. Other firms interviewed were Stites & Harbison and Wyatt, Tarrant & Combs. Mark Ament and Ivan Diamond from Greenebaum, Doll, & McDonald (GDM) thanked the Board for the opportunity to work with the University on this new effort. Mr. Ament would be the lead partner on the project. Mr. Mulloy expressed appreciation to the members of the Committee for their sustained commitment throughout this process. Trustees Porter and Metts stated their strong support for the actions the University has taken to bring this initiative forward. Mr. Mulloy introduced Mr. Gene Smith, a community member of the committee and a venture capitalist, who spoke about his experience with the Ad Hoc Committee. Mr. Smith indicated his firm has invested in a biotech start-up with Vanderbilt University. Vanderbilt has various department heads working with his staff, and from his observations, the path UofL has charted is a better way to work with prospective venture capitalists, according to him. He indicated that because Vanderbilt makes decisions collegially actions that should take a couple months to work out take 1-2 years. Mr. Smith shared with his CEO of the Vanderbilt partnership some of the information regarding the work of the Privatization Committee. His CEO was very enthusiastic about UofL's direction and has begun talking with officials at University Hospital about possible opportunities for collaboration. Mr. Smith strongly endorsed the action of the Ad Hoc Committee and recommended the Board approve the creation of the prospective LLC.

Mr. Ament assured Dr. Shumaker there is a complete legal separation and isolation of potential liability between the LLC and the University of Louisville Research Foundation, Inc. the entity that will provide initial funding. Responding to Ms. Metts inquiry about the Board's involvement, Mr. Ament noted that the Board would be required to approve "big picture" actions, such as sale of the entity, dissolution of the entity, investment partners, and others of this nature. Chair Samuels informed the Board that the approval of the recommendation would come during the meeting of the UofL Research Foundation, which would immediately follow the Trustees meeting.

IV. Executive Session

In response to a request from the Chair, Mr. Green moved and Ms. Cobb seconded a motion to go into Executive Session.

V. Open Meeting Reconvenes

Chair Samuels reconvened the Open Session of the Board meeting at 4:58 p.m. Mr. Samuels reported that the Board discussed personnel matters in Executive Session. No action was necessary.

VI. President's Report

Dr. Shumaker thanked Trustees Cogan and Mulloy for their leadership on the Privatization Initiative and expressed appreciation to the other members of the committee for their support throughout the process.

In response to the President's request, Vice President Owsley briefed the Board on the situation with Wallace's Book Stores at UofL. Mr. Owsley reported that he had sent a letter to the firm indicating it was in default of its contract, and it had until Wednesday to correct the situation. The firm is current with its payments to UofL, but it is in default because it is unable to order books. Its suppliers have it on credit hold. Mr. Owsley noted the University may be going out to other vendors if the situation worsens.

VII. Other Business

Ms. Cauble expressed kudos to the President and his staff for achieving all eight of the CPE diversity goals. The achievement was a first for the University and represented remarkable progress.

Mr. Green briefed the Trustees about the press conference and launching of the "Our Highest Potential" initiative. If successful, the effort would add eight endowed chairs in fields important to African Americans. President Shumaker indicated that it is a national story that will soon receive national media attention.

  • Report of the Chair

    Chair Samuels expressed strong support for the President as he works through the important issues facing the University.

VIII. Adjournment

The meeting adjourned at 5:08

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