The official minutes of the University of South Carolina Board of Trustees are maintained by the Secretary of the Board. Certified copies of minutes may be requested by contacting the Board of Trustees’ Office. Electronic or other copies of original minutes are not official Board of Trustees' documents.
Board of Trustees
April 26, 2002
The University of South Carolina Board of Trustees met Friday, April 26, 2002, at 2:20 p.m. in the Carolina Plaza Board Room.
Members present were: Mr. Mack I. Whittle, Jr., Chairman; Mr. Herbert C. Adams, Vice Chairman; Mr. Arthur S. Bahnmuller; Mr. James Bradley; Mr. A.C. Fennell, III; Mr. Samuel R. Foster, II; Mr. Alexander English (via telephone); Mrs. Helen C. Harvey; Mr. William C. Hubbard; Mr. Toney J. Lister; Mr. Miles Loadholt; Mr. Robert N. McLellan; Ms. Darla D. Moore; Mr. Michael J. Mungo; Mr. M. Wayne Staton; Mr. John C. von Lehe, Jr; and Mr. Othniel H. Wienges, Jr. Trustees absent were: Dr. C. Edward Floyd; Mr. J. DuPre Miller; and Mrs. Inez M. Tenenbaum. The faculty representative, Professor Robert Wilcox, and the student representative, Mr. Ankit Patel, were both present.
Others present were: President John M. Palms; Secretary Thomas L. Stepp; Executive Vice President for Academic Affairs and Provost Jerome D. Odom; Vice President and Chief Operating Officer J. Lyles Glenn; Vice President and Chief Financial Officer Richard W. Kelly; Vice President for Information Technology and Chief Information Officer William F. Hogue; Vice President for Human Resources Jane M. Jameson; Vice President for Student and Alumni Services Dennis A. Pruitt; General Counsel Walter (Terry) H. Parham; Vice Provost and Executive Dean for Regional Campuses and Continuing Education Chris P. Plyler; Chancellor of USC Aiken Thomas L. Hallman; Chancellor of USC Spartanburg John C. Stockwell; Interim Dean of USC Lancaster John Catalano; Dean of USC Salkehatchie Ann Carmichael; Dean of USC Sumter C. Leslie Carpenter; Associate Dean for Academic and Student Affairs, USC Union, Anita K. Bowles; Dean of the South Carolina Honors College Peter C. Sederberg; Dean of the College of Engineering and Information Technology Ralph E. White; Dean of the Norman J. Arnold School of Public Health Harris Pastides; Interim Dean of the College of Journalism and Mass Communications Henry T. Price; Acting Associate Dean of the College of Hospitality, Retail, and Sport Management Donald E. Stowe; Associate Vice Chancellor for Business Affairs, USC Spartanburg, Robert Connelly; Vice Chancellor for University Advancement, USC Spartanburg, John Perry; Vice Chancellor for Student and Diversity Affairs, USC Spartanburg, Leon E. Wiles; Assistant to the Vice President, Office of Business and Finance, Ken Corbett; Director of the Budget Office William P. Bragdon; Assistant Treasurer Susan D. Hanna; Director of Student Development and University Housing, Division of Student and Alumni Services, Gene Luna; Director for Human Resources Programs and Services Jeffery G. Cargile; Director of the Department of Internal Audit Alton McCoy; Associate Professor in the College of Journalism and Mass Communications Sonya F. Duhe ; Retiring faculty member George L. Geckle of the College of Liberal Arts; Lutheran Campus Minister, The Reverend Martin P. Jessiman; Chairman of the Lancaster County Commission for Higher Education W.L. McDow; Bond Counsel Dianne McNabb of A.G. Edwards and Sons, Inc.; Director of the Office of Public Affairs Russell McKinney; and members of the media.
Chairman Whittle stated that notice of the meeting had been posted and the press notified as required by the Freedom of Information Act; the agenda and supporting materials had been circulated to the members; and a quorum was present to conduct business.
Chairman Whittle welcomed everyone and invited Board members and members of the University family to introduce themselves. Mr. McKinney introduced members of the media who were in attendance.
At Chairman Whittle's invitation, Reverend Jessiman delivered the invocation.
Chairman Whittle introduced a retiring faculty member and asked him to step forward to the podium. Chairman Whittle explained that Dr. George Geckle had been awarded an honorary faculty title at the December 2001 Board meeting. President Palms and Chairman Whittle congratulated Dr. Geckle while the Board of Trustees acknowledged his efforts with a round of applause. Chairman Whittle thanked him for his service to the University of South Carolina.
Chairman Whittle stated that there were personnel matters with respect to honorary faculty titles, an appointment with tenure, honorary degree nominations, and the USC Lancaster dean appointment which were appropriate for discussion in Executive Session. Mr. Bradley moved to enter Executive Session, and Mr. Bahnmuller seconded the motion. The vote was taken, and the motion carried.
The following persons were invited to remain: Dr. Palms, Mr. Stepp, Dr. Odom, Mr. Glenn, Mr. Kelly, Dr. Hogue, Ms. Jameson, Dr. Pruitt, Dr. Plyler, Mr. Parham, Dr. Hallman, Dr. Stockwell, Dr. McGee, Mr. McKinney, Ms. Tweedy, and Ms. Warren.
Return to Open Session
There were no additions, deletions, or corrections to the minutes; therefore, they stood approved as distributed.
Mr. Kelly summarized the Designated Fund Activity for the Year Ended June 30, 2001. He noted that the budgeted figure was $765,000; of that amount, $726,000 had been spent. He also summarized the Koger Quasi-Endowment Fund for FY 2001 indicating that two endowment funds were associated with the Koger Center; currently, the total of the two accounts was approximately $2 million.
The fund balance for the Bookstore Quasi-Endowment Fund for FY 2001 was $3,868,644. Ms. Zeigler, Director of Business Affairs, had anticipated that the previously-committed goal of $496,000 from bookstore revenues would be given to the scholarship fund.
The Committee also received the Quarterly Report Ending December 2001 which summarized the Designated Fund Activity during this three-month period.
Mr. McCoy reviewed the Audit Tracking Report explaining that two audits more than six months old had been listed. Since the report was prepared, the ring sales audit had been resolved. In addition, a refund from BellSouth had resolved the Carolina Mall audit; therefore, no audits over six months old remained on the report.
The Committee had also reviewed the following internal audits: Undergraduate Admissions; Koger Center; School of Nursing; Beaufort Campus; and Faculty House. No findings were reported for the School of Nursing. Various findings had been reported for Undergraduate Admissions, Beaufort Campus and Faculty House; corrective measures had been adopted.
It was decided that Mr. Kelly would present a financial plan to President Palms regarding the future operation of the Koger Center. Under consideration was management of the center by a professional company. Following the retirement of Mr. Ron Pearson as Director on March 31, Mr. Kelly would assume responsibility for the oversight of the Koger Center.
Mr. McCoy presented the annual report on SEC and ACC Endowments for the Committee's information.
Students reported on the many activities taking place on their respective campuses; they continued to be heavily involved with their campuses' activities and in their communities.
Most campuses had been in the process of holding student elections. New officers had been elected at USC Columbia for the next year; they were Ankit Patel, President; Katie Dreiling, Vice President; and Becky Floyd, Treasurer.
In addition, USC Columbia featured a report about community service/stewardship programs on the campus. Dr. Pruitt commented that community service programs were considered hallmarks of the University of South Carolina.
One of the programs was Dance Marathon which was a national event. All of the money raised at USC Columbia was donated to Palmetto Health Richland. When this program began at USC Columbia in 1999, the campus had broken the national record for total money raised during the initial year; this year, approximately 250 dancers had participated.
The campus had also sponsored its 4th Martin Luther King, Jr., Day of Service this past January. More than 200 students, faculty, and staff as well as 24 local community agencies had participated. Various activities during the day of service had included working with senior citizens in assisted living and nursing facilities; reading to children; and cleanup projects. At the end of the day, reflection services had been conducted at each site to reconnect with Dr. King's message.
Habitat for Humanity was one of the fastest growing international service organizations and functioned in 66 countries, all 50 states, and over 600 campuses globally. Habitat for Humanity provided housing for families who lived in substandard conditions.
This past fall, USC had sponsored its first "blitz build" on campus; in one week, a Habitat house had been built for a woman and her son who lived in Columbia. More than 250 individuals had volunteered. USC's long-term goal was to compete with Clemson University; its students built six houses every year.
Best Buddies, another community service program, was part of an international organization. Its mission was to enhance the lives of developmentally-disabled adults by providing one-on-one friendships; in the Columbia area, these individuals were paired with USC students.
Each month individual as well as group activities were scheduled. "Buddy pairs" must speak with each other at least once a week via the telephone or mail and spend time together at least twice a month. It was hoped that bringing together college students with these special adults would form friendships which extended beyond the organization commitment and the college experience.
The newly-elected SGA president had provided a brief overview about the student activity fee; an increase would be requested in the upcoming fiscal year budget.
The following person would be awarded the title Distinguished Professor during his final year of service. That title would change to Distinguished Professor Emeritus and Dean Emeritus effective upon his retirement: Dean Frank B. Raymond, III
The following would be awarded the title Distinguished Professor during their final year of service. That title would change to Distinguished Professor Emeritus effective upon retirement:
The following individual would be awarded the title Emerita Professor effective upon her retirement: Professor Nancy Babb
The following individual would be awarded the title Emerita Professor concurrent with her retirement: Dr. Sandra L. Wertz
The following would be awarded the title Emeritus Professor effective upon retirement:
The following person would be awarded the title Emeritus Professor concurrent with his retirement: Dr. J. Michael Ryan
The following person would be awarded the title Law Librarian Emerita effective upon retirement: Diane M. Osbaldiston
The following person would be awarded the title Law Librarian Emeritus effective upon retirement: Joseph R. Cross Jr.
On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of these honorary faculty titles. Mr. Fennell seconded the motion. The vote was taken, and the motion carried.
On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of the request to award Dr. Christopher Holcomb tenure at the rank of Associate Professor in the Department of English, College of Liberal Arts, effective with his appointment as Associate Professor in the Department of English, College of Liberal Arts. Mr. Loadholt seconded the motion. The vote was taken, and the motion carried.
On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of the Graduate Program in Nuclear Engineering as described in the materials distributed for this meeting. Mr. Wienges seconded the motion. The vote was taken, and the motion carried.
Mr. von Lehe requested that a statement be added which indicated that this program was environmentally sensitive.
In addition, the Academic Affairs and Faculty Liaison Committee had reviewed the SDI recommendations as assigned by Chairman Whittle during the February 8, 2002, meeting of the Board of Trustees. Committee consideration of these recommendations was reflected in the minutes distributed for this meeting and in the final recommendations about the SDI Committee report presented by the President for consideration at this meeting.
Mr. McLellan thanked Dr. Odom and the faculty representatives who helped to guide the Committee's discussion and those individuals from the administration who had expressed their candid views to the Committee on the various items.
The following SDI recommendations had been forwarded for consideration as presented:
For the College of Fine and Performing Arts/School of Music Recommendation it had been noted that the timing of such an action was not critical; further research had been requested before pursuing this recommendation.
The Buildings and Grounds Committee had met on March 20, 2002, and had reviewed the Deferred Maintenance SDI Recommendation. The results were contained in the minutes which had been distributed and the final report of the President on the SDI Committee recommendations presented for action today.
The Buildings and Grounds Committee had met earlier today and discussed the following item which required consideration by the Board:
USC Spartanburg Housing: This project involved the construction of the first of two phases of new campus housing along Hodge Drive adjacent to the existing University Commons housing facility. Phase I included a facility of approximately 100,000 square feet which would consist of a multi-floor unit, courtyard and adjacent recreational areas.
An architectural and engineering services firm would be selected for both Phase I and Phase II. Complete design services would be provided for Phase I with some basic schematic and design work for Phase II, to effectively integrate the two construction projects.
The facility would house approximately 300 private student rooms in a suite configuration. The building would have four levels for student housing with a separate common living area on each floor. A ground floor would provide space for housing offices, a laundry facility, computer/learning area, and a community recreational space with outside patio. The proposed opening of the new facility was scheduled for the fall of 2004.
The project would be developed by the Carolina Piedmont Foundation. The Foundation Board had passed a resolution on April 16, 2002, which had approved this project and appropriate agreements with the University to manage the dorm, suitable commitments from financial institutions, as well as an arrangement to limit financial liability on behalf of the Foundation. JEDA (Jobs Economic Development uthority) approval had been obtained for the project authorizing a bond issue by the Carolina Piedmont Foundation for $15,100,000.
On behalf of the Buildings and Grounds Committee, Mr. Loadholt moved approval of the development of campus housing by the Carolina Piedmont Foundation on behalf of USCS, authorized through an agreement between the Foundation and the University in which USCS would be given operational management authority. Mr. Foster seconded the motion. The vote was taken, and the motion carried.
During the Executive Committee meeting of March 20, 2002, the following two SDI recommendations had been reviewed and forwarded as presented to President Palms for consideration: the Value-Centered Management Recommendation and the Information Technology Recommendation.
In addition, the Executive Committee had approved an amended employment contract for Head Baseball Coach Ray Tanner.
The following three items had been approved for recommendation to the Board during the Executive Committee meeting earlier today:
Mr. Bradley moved approval of the appointment of Dr. John Catalano as Dean of USC Lancaster effective April 1, 2002. Mr. Mungo seconded the motion. The vote was taken, and the motion carried.
Chairman Whittle congratulated Dean Catalano and Board members extended him a round of applause.
This resolution had also included a provision for Bond Anticipation Notes. The University was proposing the use of one-year Revenue Bond Anticipation Notes to lower the cost of interest and avoid arbitrage payments to the IRS. In June the University would borrow $13,800,000 with the BAN. An evaluation of the use of BANS, or long-term financing, would be conducted in 2003 when the $13,800,000 BAN had matured.
Mr. Fennell moved approval of the resolution authorizing Housing Revenue Bonds in the amount of $29,000,000, including the use of one-year Revenue Bond Anticipation Notes in the amount of $13,800,000, to finance the construction of the South Campus-Phase III housing and the renovation of other housing facilities on the Columbia Campus. Mr. Foster seconded the motion. The vote was taken, and the motion carried. [Exhibit A]
In a memorandum to the Executive Committee dated April 19, 2002, President Palms had responded to the Strategic Directions and Initiatives Committee Report. His recommendations had been based upon input from the Board of Trustees, Council of Academic Deans, Faculty Senate, Student Senate, Graduate Council, and various partnership and foundation boards within the University family.
During the Executive Committee meeting earlier today, the Committee had approved President Palms' recommendations. It had been requested that the new president review these recommendations and report to the Executive Committee in the fall regarding any changes.
Chairman Whittle also noted that incorporating the SDI recommendations into the University system would be an on-going and dynamic process. The Board of Trustees would review the financial impact of this process as necessary.
Mr. Mungo moved approval of Dr. Palms' recommendations regarding the Strategic Directions and Initiatives Committee Report as distributed and approved by the Executive Committee. Mr. Lister seconded the motion. The vote was taken, and the motion carried.
Mr. Fennell stressed the importance of the Alumni Association's forming a life-long relationship with students beginning the moment they enrolled at the University. During incoming freshman orientation sessions, Association staff members invited students to become members "so that they immediately become familiar with the Association and its programs, and most importantly, its commitment to serve them."
Mr. Fennell noted that the Alumni Association's student member program currently boasted a membership of more than 2,800; it was the largest student organization on campus and one of the largest student member programs in the country. Members received various benefits throughout the year including coupons for free food, entertainment opportunities, bookstore discounts, and career workshops with alumni.
The Alumni Association also sponsored the Garnet Circle Student Alumni Council which was composed of 60 student leaders who organized a variety of significant campus projects throughout the year; they were also given the opportunity to pair with an alumni mentor. The Association had recently celebrated the ring ceremony which was considered one of the most important Garnet Circle projects. During the previous Wednesday, more than 400 people had gathered on the Horseshoe to witness Dr. Palms' presentation of the official USC class ring to graduates.
During the following week, the Alumni Association was scheduled to host a party for graduating seniors; introductory alumni association memberships would be offered at that time.
Mr. Fennell remarked that the Alumni Association partnered with various campus departments including Student Life and Multicultural Affairs. The Association also supported Homecoming and the Dance Marathon.
Mr. von Lehe requested that Mr. Fennell submit a written report to the Board of Trustees at the June meeting regarding the status of the Alumni Association before he completed his term of office as President of the Alumni Association at the end of June.
Mr. Hubbard explained that the Search Committee had held its first meeting on July 18, 2001, and had met on 14 occasions since that time, including the meeting earlier today.
The Search Committee had carefully evaluated 223 individuals who had been recruited, nominated, or who had applied for the position of University president. A total of 12 prospects had visited the campus and had met with 455 faculty, students, administrators, and business and community leaders from across the state.
Various Search Committee members had met prospective candidates in their respective home areas; the Search Committee had formally interviewed 10 candidates including one woman and one African-American candidate.
All of the candidates who were evaluated commended Dr. Palms' leadership and the progress which he had brought to the University of South Carolina during his tenure as president. This leadership and progress had enriched the pool of candidates despite higher education budget cuts in the state.
All of the candidates believed that the University was well positioned to achieve a new level of excellence; all of the candidates had commended the work of the Strategic Directions and Initiatives (SDI) Committee and believed that it had created a strong foundation for the future progress of this institution; all of the candidates had commended the collaborative efforts during the SDI study, especially the positive working relationship among Board members, administration, and faculty.
At this time, Mr. Hubbard advised Board members that the Search Committee was pleased to announce the three finalists. One of the finalists, Mark Emmert, who was Chancellor of Louisiana State University, had formally withdrawn from the process earlier this month.
The second finalist, Dr. Richard W. Miksad, was Dean of the School of Engineering and Applied Science at The University of Virginia and the Thomas M. Linville Professor of Engineering. He had received a B.S. in Mechanical Engineering from Bradley University, an M.S. from Cornell University in Mechanical Engineering, and a Sc.D. in Oceanography from the Massachusetts Institute of Technology.
Before joining The University of Virginia in 1994, Dr. Miksad had been Chair of the Department of Aerospace Engineering and Engineering Mechanics at the University of Texas at Austin. Prior to that, he had taught at the Imperial College of Science and Technology in London, England, and the Rosenstiel School of Marine and Atmospheric Sciences in Coral Gables, Florida.
Dr. Miksad had conducted research in the areas of hydrodynamic stability, nonlinear dynamics of transition to turbulence, wave forces on offshore structures, and the atmospheric and oceanic transport of pollutants.
The third public finalist was Dr. Andrew A. Sorensen. Dr. Sorensen was the President of the University of Alabama. He had received a B.A. in History from the University of Illinois at Urbana/Champaign, a Bachelor of Divinity in Ethics from Yale University, a Master of Public Health in Health Behavior and Health Education from the University of Michigan, a Master of Philosophy in Medical Sociology from Yale University, and a Ph.D. in Medical Sociology, also from Yale University.
Prior to becoming President of the University of Alabama, Dr. Sorensen had been Director of the School of Public Health at the University of Massachusetts at Amherst, Executive Director of the AIDS Institute at Johns Hopkins Medical Institutions, and Provost and Vice President for Academic Affairs at the University of Florida.
Among Dr. Sorensen's current board memberships and activities were the Alabama Shakespeare Festival Theatre, the National Space Science and Technology Center, the Council of Presidents of the Southeastern Universities Research Association, and the South Regions' Minority Business Council.
Mr. Hubbard emphasized that each of the three finalists had been recruited by the University of South Carolina. It was hoped that the remaining public candidates would visit the campus during the following week.
Dr. Palms noted that the Southern Growth Policy Board had issued a publication entitled Innovation You: New University Roles in a Knowledge Economy. Currently, the Governor of South Carolina was chairing this policy board. Dr. Palms believed that the report mirrored this institution's goals.
Dr. Palms commented that various individuals had expressed the opinion that "our ambitions really go beyond what is realistic about our capacity here at this time and the resources that this state can bring to bear to this university."
At the present time, it was anticipated that the University would receive less money from the state than in 1991 when Dr. Palms initially arrived on campus. "Somehow, we had a master plan with almost $300 million that we have accomplished." In the last 5 years, 490 professors had been hired to replace retiring faculty members; of that number, 303 or 84 percent had left AAU institutions to join the University family. Dr. Palms adamantly declared that this institution could reach that level of quality. He urged the Board of Trustees and administration to remain committed to the goal of "being worthy and eventually of being invited into the most elite group of comprehensive research universities -- the Association of American Universities."
Dr. Palms thanked Board members for supporting the concept of endowed chairs, noting that when the Bicentennial Campaign was inaugurated every dean had as a goal to increase the number of endowed chairs. Using state lottery money to provide the resources for this funding would ensure the support of a broad constituency of business people, as well as bi-partisan support from both houses of the Legislature.
The three state research institutions would be challenged to match these funds at the rate of $30 million per year for a 5-year period. The fact that this state "would put $300 million into the concept of endowed chairs -- centers of excellence in the 3 research universities -- to grow a true knowledge-based economy, would be something that would make a statement to the entire country and certainly to the citizens of this state." Dr. Palms asked the Board to assist the new president with efforts to raise this money for the University.
Again, Dr. Palms thanked all of the groups involved in the SDI process. "I am particularly impressed that this Board would devote as many hours as you have to this process." He emphasized the importance of the process to the faculty, to the students, to alumni, to the Foundation members. He noted that others outside of the University family had marveled at the civility during the various discussions of sensitive academic issues. "It is a tribute to you that you allowed this process to take place and it has culminated today in your endorsing this document."
Since there were no other matters to come before the Board of Trustees, Chairman Whittle declared the meeting adjourned at 4:25 p.m.
Respectfully submitted,
Thomas L. Stepp
Secretary