Minutes -- June 24, 2002 -- Board of Trustess -- University of Louisville
MINUTES OF THE SPECIAL MEETING
OF THE BOARD OF TRUSTEES
OF THE UNIVERSITY OF LOUISVILLE
The regular meeting of the Board of Trustees of the University of Louisville met on Monday, June 24, 2002 in the Ballroom of the University Club, Belknap Campus, with the members present and absent as follows:
Ms. Jessica S. Loving, Chair
Mr. Ulysses L. Bridgeman, Jr.
Ms. Linda Wallbaum Cauble
Mr. Kevin D. Cogan
Dr. Richard C. Feldhoff
Mr. Owsley B. Frazier
Mr. Nathaniel E. Green
Mr. Milton M. Livingston
Mr. William P. Mulloy, Sr.
Mr. J. Chester Porter
Ms. M. Annette Schnatter
Ms. Melissa Long Shuter
Ms. Sandra Metts Snowden
Ms. Elizabeth H. Worland
Ms. Mary A. Yarmuth
Ms. Marie Abrams
Ms. Joyce Hagen-Schifano
Mr. Grant Helman
Mr. Christopher Marlin
Mr. Darryl Owens
|From the University:||
Dr. Carol Z. Garrison, Acting President
Dr. Shirley Willihnganz, Acting Provost
Ms. Angela Koshewa, University Counsel
Mr. Larry L. Owsley, Vice President for Finance & Administration
Mr. Joseph Beyel, Vice President for Development and Alumni
Dr. Denise 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
Dr. Eugene Gilchrist, Vice President for New Ventures
Dr. David Howarth, Associate University Provost
Mr. David F. Barker, Director of Audit Services
Mr. Michael J. Curtin, Director, Planning & Budget
Dr. Hannelore Rader, University Librarian
Ms. Julie DeMunbrun, Office of University Counsel
Ms. Carolyn Cochran, Office of the Provost
Ms. Julie Hermann, Associate Athletic Director
Ms. Rae Goldsmith, Associate VP for University Relations
Ms. Terri Rutledge, Assistant VP for Finance and Administration
Ms. Susan Ingram, Assistant Director, Office of Planning & Budget
Ms. Cheri Jones, Assistant Director, Audit Services
Ms.Susan Wilhelm, Controller’s Office
Mr. John Drees, Director of Communications and Marketing
Mr. Ralph Fitzpatrick, Minority Affairs
Mrs. Kathleen M. Smith, Assistant Secretary
Ms. Trisha Wolf, Board Liaison, Office of the President
Ms. Debbie Dougherty, Board Liaison, Office of the President
Ms. Sally Vamvakias, Association of Governing Boards
Ms. Virginia C. Brown
Mr. David Ensign
Ms. Leslie Vidra, UofL Foundation Counsel
Mr. William Funk, Korn Ferry
I. Call to Order
Having determined a quorum present, Chair Loving called the meeting to order at 1:50 p.m. On behalf of the Board, Chair Loving expressed appreciation to President Garrison for her leadership and acceptance of the interim position of Acting President. Chair Loving offered the support of the Board to keep the University’s progress moving in its current direction. Chair Loving also welcomed Acting Provost Shirley Willihnganz in her current position.
Ms. Shuter introduced Virginia C. (Ginger) Brown. Ms. Brown replaces Ms. Shuter as Chair of the Staff Senate and Staff Trustee, effective July 2002.
Dr. Feldhoff introduced Professor David Ensign. Mr. Ensign currently serves as Vice Chair of the Faculty Senate and will begin serving as Chair of Faculty Senate effective September, 2002.
II. Consent Agenda
Approval of Minutes
- Regular Board Meeting, April 22, 2002
- Executive Committee Meeting, May 2, 2002
- Executive Committee, May 20, 2002
- Special Board Meeting, May 24, 2002
From the May 20, 2002 Academic & Student Affairs Committee
- Action Item: Approval of the Institute for Entrepreneurial Research
From the May 20, 2002 Finance Committee
- Action item: Approval of Housing Fees, 2002-03
From the May 20, 2002 Executive Committee
- Action item: Approval Regarding Completion of the Board’s Goals
- Action item: Approval of Compensation for Acting President
From the June 24, 2002 Personnel Committee
- Action Item: Approval of Personnel Recommendations
- Action Item: Approval of 2002 Alumni Fellow Award, College of Arts & Sciences
- Action Item: Approval of Five Year Review of Kent School of Social Work Dean
- Action Item: Approval of Appointment of UMC Representatives
Chair Loving read the roll of consent agenda items. Hearing no objection, Chair Loving declared the consent agenda approved.
III. Update on Cancer Hospital
President Garrison reported that she and Vice President Kaplan have been working with the Brown Cancer Center, Norton’s Healthcare and University Hospital to complete this project. She described the innovative plan as an opportunity to elevate cancer care to regional excellence. Vice President Kaplan provided a status update. He noted the cancer hospital will locate at the Pavilion (formerly Methodist Hospital), and the radiation oncology treatment will remain at the Brown Cancer Center. He commented on the progress of drafting a number of documents (affiliation agreement, bylaws, medical staff principles, etc.) and indicated a possibility of presenting a final business plan to the Board very soon. VP Kaplan projected an optimistic opening date for the hospital as early as January 2003, and a naming opportunity close to that date. In response to Trustee Cogan’s question about the naming of the hospital, VP Kaplan expressed an interest to name the hospital after a donor. Dr. Kaplan recognized VP Beyel’s assistance on numerous philanthropy issues. He also stated that UofL Healthcare will manage the cancer hospital.
VP Kaplan informed the Board about the recent opening of the molecular research imaging center, which is a major new health initiative in conjunction with the Brown Cancer Center.
VP Kaplan also shared information about the upcoming creation of the cardiovascular program with Jewish entitled the University of Louisville/Jewish Hospital Center for the Development of Heart Assist Devices. He reported the new facility’s location to be next to the MDR Building at the HSC.
IV. Action Item: Approval of Capital Construction Projects: Renovation of Rooms
204, 206, and 209 in the School of Dentistry
President Garrison reported this item as part of the regular capital budget for 2000-02, and the state had approved the University’s request to renovate the dental clinics and sterilization areas. The project total is $3,637,000. She noted the University would like to begin the project, phase it over the next year or two, and schedule the renovation to be minimally disruptive to the activities of the Dental School. The first phase of the renovation focuses on space identified for the Center for Oral Health and Systemic Disease and supports an endowed chair in this field. As the project evolves, Dr. Garrison agreed to bring back to the Board additional information about subsequent phases. Larry Owsley has worked closely with the Dental School on this proposal and its phasing. VP Owsley noted the University’s readiness to proceed as soon as the Board approves the renovation project. In response to Dr. Feldhoff’s inquiry, VP Owsley stated the funding would come from a combination of non-state funds. Ms. Shuter made a motion, which Ms. Yarmuth seconded, to approve the
The Acting President recommends that the following project be approved:
Project Estimated Cost Fund Source Renovation Rooms:
204, 206, & 209 Dental School
$587,601 Research Funds
The motion passed.
V. Action Item: Approval of Land Lease for Student Housing Project
President Garrison shared her enthusiasm in proposing an additional student housing project in partnership with the UofL Athletic Association. She indicated the ULAA board of directors recently approved the proposal and sent it forward to the Trustees with ULAA’s recommendation for support. She stated this student housing project would be funded from private sources, and the ULAA will guarantee the occupancy of the facility. VP Owsley stated the University received authorization for the project during the FY 2002 –2004 state budget process, and the appropriations bills of the House and Senate included the capital project. He expects the Governor will include it in his “Executive Budget” effective July 1, 2002. Mr. Owsley went on to provide the following overview:
- The University will enter into a land lease for approximately 1.5 acres with ULH, Inc. The site will be on the west side of Fourth Street at the south end of the University’s parking lot.
- ULH, Inc. will enter into a development agreement with a private developer who will construct a thirty-six bed, 32,000 square-foot facility to be available for occupancy in August 2003.
- The University will exercise approval rights for the building design and construction materials. Construction requirements and permitting will follow university standards.
- The University of Louisville Athletic Association will secure private funds to furnish and equip the facility. ULAA will also guarantee occupancy for the facility.
- ULH, Inc. will provide management services to operate and maintain the facility similar to the arrangements with Bettie Johnson Hall.
- At the end of the lease period in twenty years, the leasehold improvements will revert to the University of Louisville for one dollar.
In response to Ms. Snowden’s question about funding, VP Owsley stated the project was all that could be afforded at this time. In response to Mr. Cogan’s question concerning the inclusion of all men’s basketball players, VP Owsley noted that all 17 men’s basketball players would be housed in this facility; the remaining rooms would be assigned to the general student population. In response to Ms. Shuter’s question regarding gender equity, VP Owsley responded that the new housing facility should not impact gender equity. Ms. Hermann stated that this facility will not be considered an athletic dorm, noting that athletes will occupy 17 of the 36 rooms. In response to Mr. Green’s question regarding the percentage of students living on-campus, Vice President Gifford reported that prior to the construction of new dorms, the number of students living on campus was approximately 2000; the estimated current number is now 2500. Current projects under construction will provide 400 additional beds. She indicated there is significant interest for on-campus housing. Mr. Cogan made a motion, which Ms. Shuter seconded, to approve the
President’s recommendation that the University of Louisville enter into a land lease with ULH, Inc. for the purpose of developing a student housing project in conjunction with the University of Louisville Athletic Association.
The motion passed.
VI. Action Item: Approval of Operating Budget Proposal for 2002-03
President Garrison reported that she and staff have worked with university and board leadership for the past several months on this budget proposal. She indicated the University received $7.5 million in new funds, representing a 2.4% overall increase. She stated the budget proposal is very similar to the proposal reviewed by the Finance Committee, with one addition; however, the University has added a $25 per semester tuition increase, approved by the Board on May 24, 2002, to help meet pressures in intercollegiate athletics. She said this budget moved the University in the directions identified in Phase III of the Challenge for Excellence and confirmed the top four priorities as faculty and staff salary catch-up, improving graduate student support/research, diversity initiatives, and enhancing the undergraduate experience (not in priority order). President Garrison thanked Mike Curtin and his staff for their assistance with the development of this proposal and then asked Mr. Curtin to brief the Board in greater detail. Mr. Curtin gave an overview of the operating budget, trend data, and financial analysis. He noted the following points contained in this budget:
- A budget reduction strategy. The state budget bill has not passed.
- An important consideration was the internal reallocation process the President started four years ago. Over the past ten years, UofL has internally reallocated $20 million.
- There was significant increase in graduate and undergraduate student financial aid.
- This budget does not contain any permanent salary increase for faculty and staff; however, it does contain funds for catch up for faculty and staff. Administration is still considering the provision of a one-time performance recognition award for employees which may be awarded in the Fall 2002.
- Despite the tight budget situation, the University has continued its progress with diversity on campus.
- This budget does not include a provision should the University face another state budget reduction.
Mr. Curtin observed the potential need to review this budget once again when the state makes its final state revenue forecasts available. In response to Dr. Feldhoff’s question concerning the increase in UofL corporations income, Mr. Curtin stated that this has been a very successful program which included grants, contracts and clinical income. In response to Mr. Green’s question concerning the state budget, Mr. Curtin responded that the Governor proposes to load budget figures into the state’s accounting system. He noted that without a budget, the state will make an administrative accommodation to use the House Bill figures as the operative document at least until the legislature passes a budget. Ms. Yarmuth made a motion, which Mr. Green seconded, to approve the
Acting President’s recommendation that the Board of Trustees approve the proposed University operating budget for fiscal year 2002-03 (copy attached).
The motion passed.
VII. Report of the President
President Garrison recognized University Librarian Hannelore Rader for her leadership in helping the University obtain membership in the Association of Research Libraries (ARL). Dr. Garrison noted ARL is one of the University’s strategic quality initiatives and a benchmark targeted in the Challenge for Excellence accomplishment prior to 2008. Dr. Garrison congratulated Ms. Rader and her staff for their hard work. Ms. Rader thanked the administration for its support. The University Librarian noted that by unanimous vote, ARL selected U of L Libraries to be the 124th member in this prestigious association. ARL includes the most important and prestigious research libraries in North America. She said this is a major achievement for the University and the Libraries in their quest to become one of the top research universities. Dr. Rader received a round of applause from the Board.
President Garrison reported on the status regarding QCCT issues and she reported that payments from the City and County appear to be worked out. She indicated the Mayor and the County Commissioners have agreed to fund the QCCT for the budget year beginning July 1st and for all payments due during the calendar year 2002 prior to the adoption of the budget. Dr. Garrison recognized Vice Presidents Joel Kaplan and Larry Owsley for their persistence in getting this matter resolved.
President Garrison reported that in the fall the University will participate in a routine certification of its athletic programs. The University was last certified in 1996. The NCAA will certify every 10 years, replacing its previous practice to visit schools every five years. She stated the University will begin gearing up for that certification in the next couple of months. Dr. Garrison promised to keep the Board apprised as more information evolves.
Cardinal Park Facility
President Garrison noted the positive Courier-Journal article concerning the outside use of Cardinal Park facilities.
Melissa Shuter and Darryl Owens
Dr. Garrison acknowledged the leadership of two outstanding trustees whose terms expired June 30, 2002. She presented Ms. Melissa Long Shuter with a small token of appreciation and read the following resolution in her honor:
MELISSA LONG SHUTER
WHEREAS, Melissa Long Shuter has served the University with distinction as the representative of the staff to the Board of Trustees since 1999;
WHEREAS, in her capacity as a member of the Board, she committed her energy and experience to various standing committees of the Board, including the Executive Committee, Trustees Award Committee and Personnel Committee, leading the Committee as its vice chair for 2000-02;
WHEREAS, because of her many talents, she also served on various special University and Board Committees, including the 2002-03 Presidential Search Committee;
WHEREAS, she willingly served on the Board of Directors of university affiliated corporations, including the University of Louisville Research Foundation, Inc., and ULH, Inc.; and
WHEREAS, she demonstrated her full and loyal support to the University, thereby winning the admiration, affection, and respect of her fellow Trustees.
NOW THEREFORE BE IT RESOLVED, that the Board of Trustees of the University of Louisville hereby expresses its sincere admiration and deep appreciation to Melissa Long Shuter for her hard work and outstanding performance as a member of the Board of Trustees from June 1999 through June 2002; and
BE IT FURTHER RESOLVED, that a copy of this Resolution, appropriately signed, be presented to Ms. Melissa Long Shuter.
Ms. Shuter received a round of applause. Chair Loving noted the Board’s appreciation for Ms. Shuter’s excellent service.
President Garrison noted that Mr. Darryl Owens’ term also is ending June 30, 2002. Since he is not present at this meeting, she will send his resolution and gift to him along with the Board’s deep appreciation for his service.
VIII. Report of the Chair
Chair Loving announced that immediately following the meeting, Sally Vamvakias, from the Association of Governing Boards, will lead a workshop for the Board. The purpose of the workshop is to expand the Board’s orientation and to explain what other boards do to enhance their involvement with their universities. She encouraged Board members to stay and participate in the program.
Ms. Shuter made a motion, which Ms. Cauble seconded, to adjourn the meeting at 2:45 p.m. The motion passed.