Minutes -- Feb. 26, 2001 -- Board of Trustees -- University of Louisville
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.
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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
