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Finance Committee Minutes -- October 28, 2002 -- Board of Trustees -- University of Louisville

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MINUTES OF THE FINANCE COMMITTEE
UNIVERSITY OF LOUISVILLE BOARD OF TRUSTEES

October 28, 2002

The Finance Committee of the University of Louisville Board of Trustees met in the Jefferson Room of Grawemeyer Hall, with members present and absent as follows:

Finance Committee Present:
Mr. William P. Mulloy, Sr., Vice Chair, Presiding
Mr. Ulysses L. Bridgeman, Jr.
Mr. Kevin D. Cogan
Mr. David Ensign
Mr. Nathaniel E. Green
Finance Committee Absent: Ms. Joyce Hagen-Schifano
Mr. Owsley B. Frazier
Other Trustees Attending:
Ms. Marie K. Abrams
Ms. Virginia C. Brown
Mr. Tommie Burns
Ms. Linda Wallbaum Cauble
Mr. Grant Helman
Mr. Milton M. Livingston
Ms. Jessica Loving
From the University:
Dr. James R. Ramsey, President
Dr. Shirley Willihnganz, Acting Provost
Ms. Angela Koshewa, University Counsel
Dr. Nancy C. Martin, Vice President for Research
Mr. Larry Owsley, Vice President for Finance & Administration
Dr. Joel Kaplan, Vice President for Health Affairs
Dr. Ron Moore, Vice President for Information Technology
Mr. Dan Hall, Vice President, University Relations
Dr. Eugene Gilchrist, Vice President for New Ventures
Mr. Mike Curtin, Director, Office of Planning & Budget
Mrs. Terri Rutledge, Associate Vice President for Finance &    Administration
Mr. David Barker, Director, Audit Services
Ms. Rae Goldsmith, Associate V. P. for Communications &    Marketing
Mr. John Drees, Director, Communications & Marketing
Mr. Ken Dietz, Director, Planning/Design/Construction
Ms. Carolyn Cochran, Assistant to the Provost
Mrs. Kathleen M. Smith, Assistant Secretary
Ms. Trisha Wolf, Board Liaison, President’s Office
Mrs. Debbie Dougherty, Board Liaison, President’s Office
Others Present: Mr. Bruce Traughber, Executive Director, ULH, Inc.

I. Call to Order

Having determined a quorum present, Vice Chair Mulloy called the meeting to order at 2:30 p.m.

  • Approval of Minutes, May 20, 2002

Mr. Cogan made a motion, which Mr. Ensign seconded, to approve the minutes of the May 20, 2002 meeting. The motion passed.

II. Information Update from Vice President for Finance & Administration

Vice President Owsley began an overview of significant planning and construction activities on campus with his introduction of Mr. Ken Dietz, University architect, and Mr. Bruce Traughber, Executive Director of ULH, Inc.

Mr. Owsley noted the most pressing construction priority at any university is parking and as such, it was critical to provide adequate parking. He described an expanded shuttle program, and distributed a current TARC bus schedule. Students may park at Papa John’s Cardinal Stadium where the shuttle picks up and drops off from 7:10 a.m. until 9:30 p.m. From August 26 through September 30, the shuttle served 60,000 passengers. Parking revenue funded the shuttle. In response to Ms. Abrams’ question concerning Thursday night football games and security issues, Vice President Owsley said the University has informed students that the shuttle service moves to the south end on game nights and there is an increased presence of police officers during the shuttle hours. After 5:30 p.m., the University provides escort service, if requested, to take students directly to their cars. He also reported the University has fourteen video cameras and seven monitors in place to monitor parking by video camera surveillance.

Research and Academic:

  • Baxter II Researchz

    Vice President Owsley stated the project, located at the corner of Preston and Chestnut, currently is under construction. He anticipated completion date to be January 2003.

    In response to Vice President Kaplan’s request for trial shuttle service between the Health Sciences and Belknap campuses, Vice President Owsley offered to contact TARC to determine if such a run could be available. Vice President also pointed out that UofL employees may use TARC transportation for free by showing their UofL employee identification.
  • Belknap Research

    Vice President Owsley shared information about this project and noted that construction will begin this spring.
  • HSC Research III

    Vice President Owsley reported that the University has received authorization to do programming for this building, but has not yet received authorization from the state to build it. He expected the size of the building to be approximately twice the height of the Baxter and Baxter II buildings, and the anticipated cost to be $90 million. The University is looking for an architect. Vice President Kaplan noted the Baxter II building already is filled, and expressed the strong importance of this building for research growth at the University. Vice President Martin stated the University is eager to plan this building, and reported the University will use some planning money if received from the Office of New Economy. Dr. Martin stated her goal is to have planning completed so that in the event there is capital construction in the next biennium, the University can go move forward quickly.
  • Cardiovascular Innovation Institute

    Vice President Owsley reported the University still is pursuing this joint project, and needs approval from the Council on Postsecondary Education. Vice President Owsley shared his enthusiasm about the Office of New Economy’s willingness to fund $5 million toward the project.
  • Ekstrom Library Addition

    Vice President Owsley explained that, when the addition is complete, the Ekstrom Library will house 3 million volumes. He noted the significance of this expansion, and reported the federal government is the funding source. He said the University has received two installments, with the third installment held up in the federal budget delay.

Housing

  • Bettie Johnson Hall

    Vice President Owsley reported that since opening Bettie Johnson Hall, a residence housing facility of 493 beds, the facility is 98% occupied and Phase II is under construction. He noted Phase II construction is coming along quite well.

  • Cardinal Hall

    Vice President Owsley reported this facility will have 38 beds, 49% for men’s basketball players, with the balance for general student population. He reported construction will begin between November 15 and December 1, 2002, with the projected opening by Fall 2003.
  • Community Park

    Vice President Owsley briefed the Committee on this project, noting that Vice President Gifford planned to discuss it in more detail at the Academic & Student Affairs Committee meeting.

Other

  • HSC Parking Structure

    Vice President Owsley described the current considerations to address the issue of parking at the Health Sciences Campus.
  • Oppenheimer Hall Addition

    Vice President Owsley updated the Board on this project and noted it would consolidate the Kent School of Social Work activities into a single location. In response to Ms. Brown’s inquiry regarding the site, Vice President Owsley discussed several considerations including parking.
  • Diversity Center

    Vice President Owsley stated that he is working with Dr. Mordean Taylor-Archer to develop this center, which would be built with private funding. He noted the University would locate the center on the south side of the University Club circle.
  • Shelby Technology & Business Park

    Vice President Owsley reviewed the status of the Shelby Technology & Business Park, noting the Board approved the concept last year and in January 2002, the University hired Bruce Traughber. Mr. Traughber reported the proceeds of this activity will fund acquisition of additional land for the Health Sciences Campus and academic programs for all university campuses. He recapped the status of the project. In response to Ms. Abrams’ rezoning inquiry, Mr. Traughber said the University is working with zoning attorneys and will work with other appropriate groups once the University obtains a draft of the zoning district. In response to Mr. Helman’s question concerning metro government, Mr. Traughber noted the City of Louisville and the Court approved the plan. In response to Ms. Brown’s question about the status of the cemetery, Mr. Traughber responded that the cemetery is protected. Mr. Traughber noted the purpose behind this park development is to generate income for university purposes.
  • Airport Noise Study & Recommendations

    Vice President Owsley reported that since 1999 the Regional Airport Authority (RAA) has conducted an “Airport Noise Compatibility Study.” The Regional Airport Authority will hold a public hearing on November 8th and take action on November 20th. Vice President Owsley briefed the Finance Committee on the current status of the study process and provided the University’s position in a letter to the Chairperson of the Sensitive Facilities Committee. In response to Ms. Cauble’s question, Vice President Owsley stated he raised his concern to the RAA regarding the flight patterns over Papa John Cardinal Stadium.
  • Financial System and GASB 35 Implementation

    Vice President Owsley reported the auditors are reviewing the financial statements. He noted the implementation of Peoplesoft system has delayed getting the statements to the auditors. He agreed to share the audited statements with the Board at a later date.

III. Action Item: Approval of Investment of Bond Reserves

Vice President Owsley reported that with the recent acquisition of MidAmerica Bancorp by Branch Banking and Trust (BB&T), an updated Board approval for Series C Housing bond indenture is needed. Mr. Ensign made a motion, which Mr. Green seconded, to approve the

President’s recommendation that the funds held in the relevant bond reserves, specified under the housing resolution section b.12 (Series C housing dated August 1, 1983) may be invested by the Trustee (BB&T) at the Trustee’s direction, investments permissible under this section, without further resolution by the Board, and unless superseded by the Board through subsequent resolution.

The motion passed.

IV. Action Item: Approval of Acceptance of Andersen Strickler Report Relating to Housing Projects

Vice President Owsley noted that bondholders for Bettie Johnson Hall and the Phase II dormitory require the Board of Trustees, prior to the acquisition, construction, or operation of any additional student housing facilities to assure that actions will not negatively impact the occupancy of the project during the terms of the bonds. He reported that Andersen Strickler, LLC conducted a student housing market study, which was completed on April 17, 2002. This study, which is acceptable evidence that Phase II dorm and construction of Cardinal Hall, will not adversely impact Bettie Johnson Hall. The report found that construction of additional student housing facilities (Phase II dorm) and proposed Cardinal Hall will not negatively impact the occupancy of the Project during the term of the bonds, as required under Ground Lease Section 11.8. Mr. Cogan made a motion, which Mr. Ensign seconded, to approve the

President’s recommendation that the Board accept the attached Andersen Strickler report which concludes that construction of additional student housing facilities (Phase II dorm) and proposed Cardinal Hall will not negatively impact the occupancy of the Project during the term of the bonds, as required under Ground Lease Section 11.8.

The motion passed.

V. Adjournment

Mr. Green made a motion, which Mr. Ensign seconded, to adjourn the meeting at 2:30 p.m. The motion passed.

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