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.

University of South Carolina
Board of Trustees
June 27, 2002

The University of South Carolina Board of Trustees met on Friday, June 27, 2002, at 10:30 a.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. Alexander English; Mr. A.C. Fennell, III; Dr. C. Edward Floyd; Mr. Samuel R. Foster, II; 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: 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; General Counsel Walter (Terry) H. Parham; Chancellor of USC Aiken Thomas L. Hallman; Chancellor of USC Spartanburg John C. Stockwell; Dean of USC Beaufort Jane T. Upshaw; Dean of USC Lancaster John Catalano; Dean of USC Salkehatchie Ann Carmichael; Associate Chancellor for Business and Finance, USC Aiken, Virginia S. Steel; Vice President and Dean of the School of Medicine Larry R. Faulkner; Dean of the College of Engineering and Information Technology Ralph E. White; Dean of the Norman J. Arnold School of Public Health Harris Pastides; Dean of the College of Library and Information Science Fred W. Roper; Dean of the College of Hospitality, Retail, and Sport Administration Patricia G. Moody; Associate Dean for Administration, Moore School of Business, Robert E. Markland; Professor and Associate Dean of the College of Journalism and Mass Communications M. Kent Sidel; Associate Vice Provost, Regional Campuses and Continuing Education, Carolyn A. West; Director of Student Development and University Housing, Division of Student and Alumni Services, Gene Luna; Assistant Treasurer Susan D. Hanna; Director of the Office of Budget William P. Bragdon; Assistant Budget Director Glenda Ridgely; Assistant Provost, Institutional Planning and Assessment, Harry G. Matthews, Sr.; Director of Student Life, Division of Student and Alumni Services, Jerry T. Brewer; Senior Director for Development J. Cantey Heath, Jr.; Assistant to the Vice President, Office of Business and Finance, Ken Corbett; Director of Internal Audit Alton McCoy; Executive Director of the Alumni Association, Division of Student and Alumni Services, Marsha A. Cole; Director for Planning Services, Facilities Planning and Construction, Donna Collins; Associate Professor, Department of Theatre, Speech, and Dance, H. Thorne Compton; incoming President of the Alumni Association James A. Shuford, III; Event Manager, Koger Center for the Arts, Michael Taylor; retiring faculty members: Joseph R. Cross, Jr. and Diana M. Osbaldiston, School of Law Library; and Frank B. Raymond, Dean of the College of Social Work; Director of Governmental and Community Relations, Office of the President, Shirley D. Mills; Business Manager for Student Development and University Housing, Division of Alumni and Student Services, Darryl Davis; USC Columbia students: Kaleta Brown, Katie Gomez, Sarah Grove, Drew Richardson, Alana Robles, and David Schroder; Chairman of the Lancaster Commission for Higher Education W.L. McDow; Religious Counselor, Hillel Jewish Counselorship, Bernard L. Friedman; University of South Carolina aircraft pilots Jim Hamilton and Ken Keverline; 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 the members of the media who were in attendance.

At Chairman Whittle's invitation, Mr. Friedman delivered the invocation.

Chairman Whittle introduced the retiring faculty members who were present and asked them to step forward to the podium. He explained that they had been awarded honorary faculty titles at the previous Board meeting. President Palms and Chairman Whittle congratulated each of the faculty members while the Board of Trustees acknowledged their efforts with a round of applause. Chairman Whittle thanked them for their service to the University of South Carolina.

Chairman Whittle stated that there were personnel matters with respect to honorary faculty titles, honorary degree nominations, tenure and promotion recommendations, appointments with tenure, and transfers of tenure which were appropriate for discussion in Executive Session. Mr. Bradley moved to enter Executive Session, and Mr. Mungo 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, Mr. Parham, Dr. Stockwell, Dr. Hallman, Mr. McKinney, Ms. Tweedy, and Ms. Warren.

Return to Open Session

  1. APPROVAL OF MINUTES: The following nine sets of minutes had been circulated by mail to the Board for review and were presented for approval:
    1. Fiscal Policy Committee, March 21, 2002
    2. Student-Trustee Liaison Committee, March 21, 2002
    3. Buildings and Grounds Committee, April 26, 2002
    4. Executive Committee, April 26, 2002
    5. Board of Trustees, April 26, 2002
    6. Board of Trustees, April 30, 2002
    7. Executive Committee, May 8, 2002
    8. Ad Hoc Committee on Advancement, May 23, 2002
    9. Buildings and Grounds Committee, May 23, 2002

    There were no additions, deletions, or corrections to the minutes; therefore, they stood approved as distributed.

  2. COMMITTEE REPORTS:
    1. Executive Committee (The Honorable Mack I. Whittle, Jr. reported)

      The Executive Committee had met on May 8, 2002, and had approved an employment contract for Women's Head Basketball Coach Susan K. Walvius. In addition, a food services contract with Sodhexo had been tentatively approved pending the satisfactory resolution of three specific conditions.

      During the meeting of June 20, 2002, the Executive Committee had approved a Student Housing Leasing Contract, an amendment to a contract with Host Communications, Inc., and a contract to lease a portion of the former BellSouth Building.

      The following two items had been approved for recommendation to the Board during the Executive Committee meeting of June 20, 2002:

      1. Reclassification of Student Facilities Fees as State Institution Bond Fees: As part of tuition and fees, the University of South Carolina Columbia had previously collected a Student Facilities Bond Fee, which the University must hold until the last Student Facilities and Plant Improvement Bonds had been paid; at this time, these bonds had been paid in full.

        Based on borrowing needs, the University was proposing to shift these fees to support additional borrowing capacity for State Institution Bonds. Pursuant to state law, the Student Facilities Fees had to be reclassified as State Institution Bond fees via a reallocation of $1 million FY02 General Fees to State Institution Bond Fees. Therefore, approval was requested to transfer $1 million in excess Student Facilities/Plant Improvement Bond Debt Service funds to General Operating Funds.

        Mr. McLellan moved approval of the transfer of $1 million from Student Facilities/Plant Improvement Bond Debt Service funds to General Operating Funds in order to reclassify the Student Facilities Fees as State Institution Bond fees via a reallocation of $1 million in FY02 General Fees to State Institution Bond Fees. Mr. Mungo seconded the motion. The vote was taken, and the motion carried.

      2. FY 2002-2003 Budget: Chairman Whittle called on Dr. Palms who commented that formulating the FY 2003 budget for the University of South Carolina had been very difficult. During the previous fiscal year, the University had withstood two mid-year cuts, the first cut in November of 2001 and the second cut in March of 2002. These cuts had totaled more than $15 million; USC Columbia had sustained a loss of nearly $11 million. A variety of instruments had been used to handle these reductions including departmental cuts, hiring freezes, purchasing and travel restrictions, and allowing departments to carry funds forward. Base appropriations for the upcoming fiscal year reflected a decrease of $20 million for the University system, and more than $14 million for the Columbia campus. It was anticipated that another cut of $4 million may occur near the beginning of the fiscal year.

        Dr. Palms stated that although the University had reduced appropriations with which to work, the budget process remained sound. Beginning in January, units had submitted their budgets to the Provost and appropriate staff and these budget requests had been intensely scrutinized.

        This year the University had three overriding concerns: the need to address the budget cuts from the last fiscal year and this fiscal year. The first budget cut had been met with combinations of institutional and departmental funds. The measures presented today would not restore those cuts. The second cut was met using institutional funds. The University must secure fiscal footing once again and, given the economic forecast, may well face another cut later this year.

        The administration's plan was premised on allocating any funds with the recommendations stemming from the Strategic Directions and Initiatives (SDI) Committee in order to keep the University's progress constant. The plan strived to service the students who were currently enrolled and particularly to be sensitive to the incoming freshman class in order to insure that sections of classes and other support systems were available to them.

        The recommended budget managed to meet all of these goals. The University will continue to target critical areas for advancement while replenishing crucial funds, restoring departmental and unit health, and providing necessary resources for some of the SDI recommendations.

        This budget also allowed the University to make an extremely important, though quite limited gesture, to the men and women who had created and sustained USC's progress. The faculty and staff had worked very hard with diminishing resources and fewer personnel. By working together and leaning on each other, they had achieved great things. Dr. Palms noted that these personnel had been one of the largest contributors to the Bicentennial Campaign -- over $6 million had been donated by the faculty and staff. There were 800 vacancies and there was still a hiring freeze. For this reason, Dr. Palms recommended a salary increase as outlined in the memo sent to the Board of Trustees earlier.

        For faculty and other unclassified employees, a one percent increase was to be awarded on the basis of merit. For classified staff, a one time only bonus of up to $1,000 will be awarded on the basis of merit. Both would go into effect August 16, 2002. This recommendation applied to USC Columbia only. The regional deans and chancellors of the four-year campuses had been apprised of the "Columbia" plans and they were at liberty to make a similar gesture should their budgets permit.

        At this point, Dr. Palms asked Rick Kelly to review the budget for this coming year in greater detail.

        Mr. Kelly reviewed the FY 2003 budget for the University in detail. He noted that the actual process had begun in January and had involved a number of meetings and consultations, and participation from all parts of the University. For the upcoming fiscal year, unlike the current year, knowledge of General Assembly action had guided the formulation of the proposed budget.

        Budgetary priorities had included ensuring the financial stability of this institution as it addressed the mid-year cuts and the loss of other state dollars; and the Strategic Directions and Initiative (SDI) Committee recommendations which the Board of Trustees had approved during the April 26, 2002, meeting.

        Mr. Kelly recapped the budget cuts which the University had sustained, and specifically the Columbia campus figures. On November 1, 2001, the Budget and Control Board had authorized a 4 percent cut of $6.8 million; another cut had been authorized in March 2002 of 2.52 percent or $4.135 million. He noted that the General Assembly had rolled those mid-year budget reductions into the legislative allocation for this year. In July, the University would sustain a third cut of 2.035 percent or $3.34 million reduced from the University's base allocation. These cuts totaled 8.55 percent or $14,314,218 of state-appropriated base funds. In addition, the Columbia campus had lost $640,000 of the CHE (Commission on Higher Education) funding.

        Mr. Kelly reviewed the various University sources of funds for allocation. He explained that the General Fund Recurring Unallocated Balance of $467,442 and the General Fund Nonrecurring Carry Forward of $1,964,869 were carry forward amounts; the second figure was a one-time carry forward amount of money. The annualization of a tuition increase which the Board of Trustees had approved in the spring of 2002 would generate $1,277,133 of revenue.

        Recommended to the Executive Committee during the June 20, 2002, budget review had been a 17 percent tuition increase. This figure represented the total package -- a 15 percent tuition increase and a 2 percent technology fee charge -- which would generate $11,560,000 new dollars. In addition, the previous budget had been built on a 3,200 freshman head count; expected for this year was a freshman class of 3,500 or more. Those new students would create additional revenues of at least $1,020,000.

        Mr. Kelly briefly summarized the remaining line items explaining that these particular sources of funds were "pass throughs." Included were State Health Insurance increases, which the state had annualized at $440,422; Institutional Direct Charges changes of $244,747; a Law School fee increase in excess of the tuition limit in the amount of $321,262; other General Fund revenues of $130,000.

        The last three items -- change in non-resident scholarship fees of -$400,000; fee distribution for the Wellness Center at $65 of -$2,220,000; and fee distribution for student computing fee at $50 of -$1,805,000 were recognized as deducts from the revenue sources as Mr. Kelly briefly explained each one to the Board.

        Mr. Kelly indicated that the total of fund revenue available for allocation in 2003 was $13,000,855 less the third budget cut of 2.035 percent or $3,340,432 which had not been addressed. The Executive Committee had approved the recommendation to reduce this amount from the general fund and not the institution as a whole. Therefore, net fund balance available in fiscal year 2003 for allocation was $9,660,423.

        Mr. Kelly briefly discussed the allocation of those funds which would be distributed among four general categories: $2,438,262 to Academic Programs; $269,201 to Other Academic and Student Services Programs; $2,400,921 to General Institutional Costs; and $2,474,995 to Central Operations and Support Programs.

        In conclusion, Mr. Kelly stated that the total allocation of funds for FY 2003 was $7,583,379 with $2,077,044 remaining as a net balance.

        Dr. Palms added that the state had not allocated funding for salary increases. In appreciation, the University was initiating an average one percent merit increase to faculty for that purpose; staff would receive an average of a one-time-only $250 merit bonus.

        Dr. Palms also noted that President-Elect Sorensen had concurred with the proposed budget as presented.

        Mr. Fennell was concerned that faculty raises had not been adequately addressed in this fiscal year budget, particularly since no funding for any inflationary increase had been included in the previous budget. He believed that the University should consider the possibility of further increasing tuition to generate additional money for that specific purpose.

        Dr. Palms replied that this concern had been intensely debated and discussed "in light of what some other institutions are doing." Dr. Palms explained that the University had been very sensitive to the economic profile of the students attending this institution. Student debt accumulation was the largest in the history of the University; articles had been published recently discussing the fact that middle class families were having difficulty affording higher education. "Taking all that into consideration, talking to the Financial Aid staff, and balancing out that need of faculty retention vs. student affordability, this was our collective decision."

        Mr. von Lehe supported the tuition increase as presented. "My own feeling is that what Dr. Palms has got here is about as far as we ought to go."

        Mrs. Harvey inquired about tuition increases at other schools. Chairman Whittle responded that Clemson University had raised tuition 14.6 percent; for the College of Charleston a 15 percent increase had been adopted. Dr. Palms noted that schools in the research category with tuition below the average of the Higher Education Price Index plus $250 were prohibited from going above that amount. Since the University was below that average, it would have been possible to increase the tuition further. However, he explained that University officials had proceeded with caution when considering a tuition increase; many factors had influenced this decision including the fact that tuition and faculty salaries were reoccurring expenses and that the increased size of the freshman class was most probably a one-time occurrence. "To rely on a tuition increase to commit to reoccurring obligations would not be sound fiscal responsibility in my judgment," Dr. Palms stated.

        On behalf of the faculty, Professor Wilcox expressed concern about the possibility of following a policy of gradually increasing the class size on a regular basis. He asked that the administration carefully consider the associated hidden costs.

        Chairman Whittle commented that Mr. Kelly, Secretary Stepp, and President-Elect Sorensen had held numerous conversations about this matter. The freshman class size for the following year would be determined in July and the concomitant budget would reflect this established number. The information would be presented to the Board of Trustees in the fall for consideration. In addition, a detailed enrollment management process would be utilized to assure the quality of those individuals admitted to the University.

        Dr. Odom explained that the enrollment management process had yielded a higher percentage of acceptances this year than in previous years. "You admit a lot of people knowing that you are only going to get a certain percentage who accept your offer to attend. We admitted people based on a particular rate or yield of acceptance. For a variety of reasons -- possibly the current success of the athletics program, the September 11 tragedy, the lottery -- the acceptance rate had yielded an increase of four percentage points greater than the average during the previous five years; therefore, more students were planning to attend the University this fall than had been originally anticipated."

        Chairman Whittle noted that President-Elect Sorensen had indicated that the size of the freshman class would drive the budget; establishing that number in July or August would ensure firmer numbers for the budget earlier in the year.

        Mr. Mungo stressed the fact that the average SAT score for admitted students had increased 15-20 points for the fall semester; better students were choosing to attend the University.

        Mr. Staton believed that the previously-expressed concerns were valid and should be considered in the future.

        Chairman Whittle recognized the Student Government Association president, Ankit Patel, who presented a proposal to increase the student activity fee in the amount of $20; currently, this fee was $46. He provided examples of student activity fees from other peer institutions including the University of Alabama with a fee of $111.25; University of Florida with a fee of $7.43 per credit hour; LSU with a fee of $117.75; Emory University with a fee of $75; Berkeley with a fee of $98.75; and Vanderbilt University with a fee of $631.

        Of the requested $20 increase, Mr. Patel explained that $10 would be designated for the programming board (Carolina Productions); $2 would be designated for student government; $6 would be designated for the Russell House renovation fee; and the remainder would be designated for the creation of a late night Carolina program for students.

        Mr. Patel also discussed the possibility of the Student Government Association conducting a transportation study. "The biggest complaint you hear from students is the issue of parking." He believed that the problem could be mitigated if an appropriate method of transporting students was developed. Mr. Patel suggested that a portion of the student activity fee designated for the student government could be used to conduct a study through the Moore School of Business's statistics department; this report would survey such factors as the average use of the shuttle system while highlighting the key areas to which students were traveling.

        In response to Mr. Patel's presentation, Mr. Kelly indicated that the student activity fee had been previously considered. Because of the proposed 17 percent tuition increase, that particular increase had not been forwarded for consideration. He hoped to continue working with the students in supporting their efforts to improve the shuttle system and respected the fact that the student government had presented this request today.

        Mr. Adams asked that this request be referred to a Board Committee for further study. It was decided to refer this request to the next Student-Trustee Liaison Committee meeting in September for appropriate consideration and action. Incorporating this fee proposal increase request into the process for the October Board of Trustees' meeting would then be possible. Secretary Stepp indicated that Board approval at that time could lead to a spring semester increase, if desired.

        Mr. Mungo moved approval of the adoption of the University operating budget for FY 2003 as presented including tuition and fee schedules and housing budgets associated with fee schedules, the athletics budget, and the designated funds budget. Mr. Bradley seconded the motion. The vote was taken, and the motion carried. [Exhibit A]

    2. Ad Hoc Committee on Advancement (The Honorable Herbert C. Adams reported)

      The Ad Hoc Committee on Advancement had met on May 23, 2002 and had discussed the following items:<\p>

      The Bicentennial Campaign Progress Report through April 2002 had been reviewed. The 2001-2002 fiscal year goals totaled $90,000,000. A breakdown by designation of the present value for gifts and pledges received through April 30, 2002 had totaled $62,365,366. The grand total of the face value for gifts and pledges from July 1, 1995 through April 30, 2002 had been $477,247,133, and the grand total of the present value for gifts and pledges during that same period had been $407,540,036.

      The collective statistics for the Directors of Development including solicitation and closure goals for the 2001-2002 fiscal year had also been provided.

      A bar graph had been presented which showed $49,757,032 in year-to-date gifts, $1,203,988 in planned gifts, $6,699,663 in pledges, and $4,704,683 in private grants.

      Additional data had also been presented. A graph summarized fiscal year comparisons of the face value totals and the present value totals from July 1, 1995 through March 31, 2002 in detail. Another graph had portrayed gifts by designation in the categories of Operations and Maintenance, Faculty Development, and Academic Enhancements during the same time period. Donors throughout the campaign had included 51,704 alumni, 28,245 non-alumni, 5,371 corporations, 6,486 parents, 996 clubs and associations, and 226 foundations. The total number of donors from July 1, 1995 through March 31, 2002 had been 93,028. A graph depicting the form of the various commitments had indicated that more than $208 million in cash, $80.4 million in pledges, $31.5 in private grants, $58.1 in gifts-in-kind, and $26 million in planned gifts at present value had been given.

      As of May 15, 2002, more than $600,000 had been raised for the John M. Palms Bicentennial Chair Fund and the level at the time of the May 23, 2002, meeting had increased to approximately $700,000 in gifts and pledges.

      Mr. Robert C. McNair from Texas had challenged the Board by pledging personally to match all gifts contributed by the members of the Board of Trustees (up to $700,000 total) to the Palms Chair. When the state match to the chair had been obtained, when a Center of Excellence had been implemented, gifts would again be matched; therefore, a contribution by a Board member could be quadrupled.

      The Bicentennial Campaign celebration had been held on Tuesday, May 28, 2002, at 5:30 p.m. by the reflecting pool at Thomas Cooper Library.

      The Committee had also discussed a draft of the 2002-2003 Post-Campaign Priorities. The primary focus had been to continue the campaign through June 30th. An assessment of the campaign would be conducted to determine what did and did not work so that preparations for the next campaign could begin. A post-campaign survey would be considered for targeted donors, non-donors, campaign leaders, deans, administrators, and development staff members. Communications would be maximized with donors and volunteers to increase interest in future giving.

      The new president of the University would be introduced to the top donors, volunteers and prospects, as well as to the broader spectrum of alumni, non-alumni friends, and business and community leaders in South Carolina and other states.

      Development Office strategic planning would be based on the new administration's vision for the University and would be tied into marketing plans. Successful development officers would be retained and motivated. Donor research information collected during the campaign would be reviewed to pursue loose ends and to revisit missed opportunities. Newly identified donors will be channeled to USC volunteer boards to infuse new perspectives and to increase the donors' sense of ownership. Unmet campaign needs will be reviewed and new, current needs will be determined with particular emphasis on raising funds for the endowed chairs/centers of excellence program. Gift levels and gift naming opportunities will be reassessed. The annual fund programs will be strengthened and expanded.

      The immediate post-campaign period will provide an opportunity to target small capital campaign projects such as the new alumni center and the Law School building; other such projects would be identified and prioritized.

      The Committee had been informed that a post-campaign assessment would be reviewed in the fall; that action will close the campaign.

      Mr. Robert Staton, Interim Vice President for Development, had accepted a position with the South Carolina United Way; Dr. Dennis Pruitt had agreed to become the acting individual overseeing specific functions within the Development area. The new president would have the prerogative to conduct a search for a new Vice President of Development and to address organizational issues pertaining to the area.

      Dr. Palms had been congratulated by the Committee for his efforts throughout the campaign and for all he had accomplished for the University of South Carolina.

    3. Buildings and Grounds Committee (The Honorable Miles Loadholt reported)

      The Buildings and Grounds Committee had met on May 23, 2002 and had discussed the following items:

      Project Status Report: The Architectural Design Review Committee had met last December and had approved the design for the South Campus Housing - Phase III project. The building's exterior will be cream-color brick and the windows will be trimmed in white; the roof of the building will be copper. Three buildings were planned with a total of approximately 167,000 square feet and 500 beds. Little and Associates of Charlotte and the Boudreaux Group of Columbia will be the architects for the project. Construction of the project was scheduled to commence in August 2002, with occupancy expected in August 2004.

      The Callcott Renovation project had been completed on time and within budget. The project budget had been $3,068,000. The facility contained 53,000 square feet, eight classrooms, 60 faculty offices and work rooms, and 12 computer laboratories for use by students. The building would become the home of the Department of Geography.

      A report had been mailed to Committee members pertaining to the Allocation to West Campus/Wellness Center Project (Greek Village). The Committee had not taken action on this matter.

      The Board of Trustees had approved a project for the development of the USC Spartanburg Athletics Complex in October 1998, with a budget of $5 million. The complex would include a baseball field, softball field, soccer stadium, tennis complex, and support buildings. All funds had not been available when project approval had been received; however, the Board would be updated as funds were received. The current project budget was $1,345,000. Recently, the Carolina Piedmont Foundation had committed an additional $430,000 to the project for building 6 of the proposed 12 tennis courts as well as the playing area for the baseball field. The revised project budget would be $1,775,000 funded with $600,000 from Spartanburg County and $1,175,000 from the Carolina Piedmont Foundation.

      Administrative approval had been obtained to increase the budget for the Capstone Renovations by $150,000 funded with Housing funds. The additional funds had been required to remove vinyl asbestos tiles from the students' rooms. The total project budget had been $1,650,000 funded with Housing funds. No action was required by the Committee regarding this matter.

      The following items required consideration by the Board today:

      1. CPIP Projects for Year 1: The Annual Permanent Improvement Program (APIP) and the Overall Permanent Improvement Plan (OPIP) had been consolidated into a five-year planning process known as the Comprehensive Permanent Improvement Plan (CPIP), which was required by the State Budget and Control Board. The Board of Trustees last approved the University's CPIP on February 8, 2001. Since that time, eleven projects had been included in the CPIP. Each of the eleven projects exceeded $250,000 and Board approval was required. The CPIP would later be reviewed by the Commission on Higher Education and the Budget and Control Board. Those approvals were expected in August 2002.

        1. Moore School of Business Master Plan and Renovation: The project had been originally established in October 2001 with a budget of $150,000 to begin the planning phase. An architectural firm, LS3P Associates from Charlotte, had been selected for the project. Preliminary programming and planning had indicated that $32.5 million would be required to complete the desired renovations to the school.

          Board approval was requested to take the next step and to increase the project budget to $1,500,000 for design services and possibly the initial phases of renovation as described in the materials distributed for this meeting.

        2. President's House Preservation/Renovation: The President's house needed significant maintenance. A recommendation had been made to close the house for a period of one year to 18 months. Necessary preservation and renovation work would be performed including replacement of the heating and air conditioning systems, replacement of the roof, and an update of the electrical, communication, and plumbing systems. The windows in the house would be preserved as specified by historic guidelines. The selection of an architect would take place immediately so that the planning process could begin. The site work was anticipated to begin in October or November 2002. The proposed project budget had been recently revised from $2,000,000 to $2,150,000. The additional funds had been necessary to cover various costs such as relocation and storage of items from the house. The project budget will be funded with a combination of Institutional Bond funding and Institutional Funds.

          Board approval was requested to establish a project to renovate and preserve the President's house with a budget of $2,150,000 to be funded with Institutional Bonds and Institutional Funds as described in the materials distributed for this meeting.

        3. EMP - West Energy Boiler and Tank Replacement: This project was part of the Energy Master Plan which had been presented to the Board of Trustees in October 1999. The existing equipment in the energy plant was more than 30 years old and replacement was required. The replacement of the boiler and DA (deaerator) tank in the West Energy Facility No. 1 would improve the reliability and efficiency of the energy system. The proposed project would result in an estimated savings of $47,000 in utility costs per year.

          Board approval was requested to establish a project to replace the West Energy Facility No. 1 boiler and DA tank with new energy efficient equipment with a budget of $477,000 to be funded with utility and utility reserve funds as described in the materials distributed for this meeting.

        4. EMP - West Energy Cooling Tower Replacement: This project had been included in the energy master plan. The equipment was more than 15 years old and had worn out because of exposure to the elements and the continuous flow of recycled water. The proposed new tower would be more efficient and would allow additional cooling capacity. The proposed project would also include equipment automation and connection to the existing energy management system.

          Board approval was requested to establish a project to replace the West Energy Facility No. 4 cooling tower with a new energy efficient cooling tower with a budget of $487,000 to be funded with utility and utility reserve funds as described in the materials distributed for this meeting.

        5. East and West Energy Motor Control Replacement: This project would replace the motor control center electrical switchgear with new equipment in the East Energy and West Energy Facilities. The equipment had outlived its useful life and had been unreliable and prone to failure.

          Board approval was requested to establish a project to replace the motor control center electrical switchgear with new equipment in the East Energy and West Energy Facilities with a budget of $290,000 to be funded with utility and utility reserve funds as described in the materials distributed for this meeting.

        6. USC School of Medicine - Building No. 3: This project involved the renovation of Building No. 3 on the V. A. Campus of the School of Medicine. The facility had been acquired through the federal government and was in need of repair; the repair work will be performed as funding became available. Planning was in progress for the upfit of the first and second floors. The current project budget was $1,545,000 and a budget increase of $350,000 was requested.

          Board approval was requested to increase the project budget by $350,000 funded with School of Medicine Institutional Capital Project Funds (ICPF). The increase would result in a total project budget of $1,895,000 funded with $350,000 in Capital Improvement Bonds, $1,047,600 in Appropriated State Funds, and $497,400 in ICPF as described in the materials distributed for this meeting.

        7. USC Aiken - Convocation Center: This project would involve the construction of a new Convocation Center and Lecture Hall for the Aiken campus and would also include the relocation of existing athletic fields and improvements to parking, landscaping, and the infrastructure. The project had been partially funded and approved with a budget of $6,050,000. While planning continued for the Convocation Center, USC Aiken wished to proceed with the construction of a new 1,000 seat baseball stadium and associated service buildings, as well as site development for the stadium and the future Convocation Center building. The installation of the utility infrastructure and site grading for the stadium, field, parking lots, and roads had been included. The work to construct the baseball field would require site work to be performed for the Convocation Center. One million dollars of the proposed increase had been received from professional baseball player Roberto Hernandez.

          A request was made to increase the project budget by $3 million to accomplish these objectives.

          Board approval was requested to increase the project budget by $3 million to be funded with $1,220,000 in Institution Bonds, $400,000 in Institutional Capital Project Funds (ICPF), $1 million in private funds, and $380,000 in county funds. The increase would result in a total project of $9,050,000 funded with $6 million in Capital Improvement Bonds, $1,220,000 in Institution Bonds, $400,000 in ICPF, $1 million in private funds, and $430,000 in county funds as described in the materials distributed for this meeting.

        8. USC Aiken - Humanities & Social Sciences Roof/HVAC Replacement: The roof on the Humanities and Social Sciences building was more than 25 years old and required replacement. The rooftop heating units and chillers also needed to be replaced. Air quality problems had been experienced within the building and testing had been conducted to ensure that the problems would not continue.

          Board approval was requested to establish a project to replace the roof and rooftop heating units and chillers on the Humanities and Social Sciences building with a budget of $665,000 to be funded with Institution Bonds as described in the materials distributed for this meeting.

        9. USC Spartanburg - Smith Building Roof Replacement: This project would replace the 19-year-old Smith Building roof. Damage to laboratories containing expensive equipment and to other classrooms and offices had been caused by leakages.

          Board approval was requested to establish a project to replace the roof of the Smith Building with a budget of $350,000 to be funded with USC Spartanburg Institutional Capital Project Funds (ICPF) as described in the materials distributed for this meeting.

        10. USC Spartanburg - Roads and Parking Lots: This project involved the construction of new parking lots which would provide approximately 300 new parking spaces for the USC Spartanburg campus. The construction of sidewalks and paths to link various areas of the campus would also be provided. The project would include curbs, gutters, landscaping, irrigation, lighting, and other items related to the lots and walkways.

          Board approval was requested to establish a project to construct new parking lots including sidewalks and paths to link various Spartanburg campus areas with a budget of $400,000 to be funded with USC Spartanburg Parking Revenue as described in the materials distributed for this meeting.

        11. USC Beaufort - New River Classroom/Lab Building: The proposed project involved the construction of a new two-story building containing classrooms and lab space at the USC Beaufort New River facility. Classrooms and laboratories would be programmed for computer connections and all classrooms would be wired for distance education. Real time conferencing would be incorporated into the facility.

          Board approval was requested to establish a project to construct a two-story building at the New River facility containing classrooms and lab space with a budget of $3.5 million to be funded with County Bond Funds as described in the materials distributed for this meeting.

      2. USC Beaufort - Performing Arts Center Roof Replacement: This project would replace the Performing Arts Center roof at USC Beaufort. An asphalt shingle roof, which had been installed in 1992, had deteriorated. The harsh coastal climate had contributed to the failure of the roof. Water infiltrating into the attic had produced extensive damage and mechanical equipment was in danger of ruin. The installation of a metal roof was recommended. The project would be reviewed and approved by the City of Beaufort Board of Architectural Review (BOAR).

        Board approval was requested to replace the Performing Arts Center roof at USC Beaufort with a budget of $325,000 to be funded with USC Beaufort Renovation Reserve Funds as described in the materials distributed for this meeting.

      3. Energy Master Plan Projects & Infrastructure Repair and Expansion: The Energy Master Plan had been presented to the Board in October 1999. A project to continue the implementation of energy projects and the repair and expansion of the University's energy infrastructure had been approved by the Board in May 2001. The project had been approved with a budget of $3 million funded with Institutional (facilities) Funds. As additional funds were identified, the project budget would be increased, allowing the work of the Energy Master Plan project to continue. An additional $1.2 million had been identified for the continuation of the project. Approval of the project to expand the energy infrastructure in order to serve the facilities in the west campus area was requested. The $1.2 million was the remaining balance of previously approved projects which had been closed; the funds had been unused.

        Board approval was requested to increase the project budget by $1.2 million to be funded with Institutional Funds. This increase would result in a total project of $4.2 million funded with Institutional Funds as described in the materials distributed for this meeting.

      Mr. Loadholt moved approval of the following items as described in the materials distributed for this meeting, with the clear understanding that the records and actions of the Board would reflect that each item was a separate and distinct action of the Board, no single item related to the others in legalistic, procedural considerations. Mr. Lister seconded the motion. The vote was taken, and the motion carried.

      • CPIP Projects for Year 1
        • Moore School of Business Master Plan and Renovation
        • President's House Preservation/Renovation
        • EMP - West Energy Boiler and Tank Replacement
        • EMP - West Energy Cooling Tower Replacement
        • East and West Energy Motor Control Replacement
        • USC School of Medicine - Building No. 3
        • USC Aiken - Convocation Center
        • USC Aiken - Humanities and Social Sciences Roof/HVAC Replacement
        • USC Spartanburg - Smith Building Roof Replacement
        • USC Spartanburg - Roads and Parking Lots
        • USC Beaufort - New River Classroom/Lab Building
      • USC Beaufort - Performing Arts Center Roof Replacement>
      • Energy Master Plan Projects and Infrastructure Repair and Expansion

      A report of the housing roofing study had been furnished to Committee members, as well as a report of the life-cycle cost of various roofing materials. The Committee took no action on these matters.

    4. Academic Affairs and Faculty Liaison Committee (The Honorable Robert N. McLellan reported)

      1. Honorary Faculty Titles: Seventeen requests for honorary faculty titles had been mailed with the materials for this meeting. They had received all appropriate approvals and had been presented to the Academic Affairs and Faculty Liaison Committee and to the full Board in Executive Session without objection.

        The following individual would be awarded the title Distinguished Professor during his final year of service. That title changed to Distinguished Professor Emeritus and Dean Emeritus concurrent with his retirement: Dr. William J. Mathias

        The following individual would be awarded the title Distinguished Professor during her final year of service. That title changed to Distinguished Professor Emerita concurrent with her retirement: Dr. Beverly A. Busching

        The following individuals would be awarded the title Distinguished Professor during their final year of service. That title changed to Distinguished Professor Emeritus concurrent with their retirement:

        1. Professor John Adams
        2. Dr. Leonard R. Gardner

        The following individuals would be awarded the title Distinguished Professor during their final year of service. That title would change to Distinguished Professor Emeritus effective with their retirement:

        1. Dr. Carter Bays
        2. Dr. Richard Conant
        3. Dr. John Mark Dean
        4. Dr. Leland G. Ferguson
        5. Dr. Donald Gray
        6. Dr. Henry T. Price
        7. Dr. Roger G. Sargent

        The following individual would be awarded the title Emerita Professor concurrent with her retirement: Dr. Shirley J. Thompson

        The following individual would be awarded the title Emeritus Professor concurrent with his retirement: Professor William T. Cordray

        The following individuals would be awarded the title Emeritus Professor effective with their retirement:

        1. Dr. Gerald Cowley
        2. Dr. W. Jackson Lyday
        3. Dr. James L. Stiver

        The following individual would be awarded the title Emeritus Librarian effective with his retirement: Dr. Thomas L. Johnson

        On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of these honorary faculty titles. Mrs. Harvey seconded the motion. The vote was taken, and the motion carried.

      2. Tenure and Promotion Recommendations: Two lists of tenure and promotion recommendations had been mailed with the materials for this meeting. The recommendations for tenure and promotion contained on the lists had received all appropriate approvals, and had been presented to the Academic Affairs and Faculty Liaison Committee and to the full Board in Executive Session without objection.

        1. Columbia Campus: On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of the Columbia Campus tenure and promotion recommendations as distributed. Mr. Bahnmuller seconded the motion. The vote was taken, and the motion carried. [Exhibit B]

        2. Regional Campuses: On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of the Regional Campuses tenure and promotion recommendations as distributed. Mr. Fennell seconded the motion. The vote was taken, and the motion carried. [Exhibit B]

      3. Appointments with Tenure:
        1. A requested appointment with tenure for Charles Bierbauer had been presented to the Academic Affairs and Faculty Liaison Committee and to the full Board in Executive Session without objection.

          On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of the request to award tenure to Charles Bierbauer at the rank of Professor in the School of Journalism and Mass Communications, College of Mass Communications and Information Studies, effective with his appointment as Professor in the School of Journalism and Mass Communications, College of Mass Communications and Information Studies. Mr. Foster seconded the motion. The vote was taken, and the motion carried.

        2. A requested appointment with tenure for Paul A. Willis had been presented to the Academic Affairs and Faculty Liaison Committee and to the full Board in Executive Session without objection.

          On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of the request to award tenure to Professor Paul A. Willis at the rank of Professor in the University Library effective with his appointment as Professor in the University Library. Professor Willis was the Dean-Elect of Libraries. Mr. Lister seconded the motion. The vote was taken, and the motion carried.

        3. A requested appointment with tenure for Dr. Suzanne Ozment had been presented to the Academic Affairs and Faculty Liaison Committee and to the full Board in Executive Session without objection.

          On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of the request to award tenure to Dr. Suzanne Ozment at the rank of Professor at USC Aiken effective with her appointment as Professor at USC Aiken. Mr. von Lehe seconded the motion. The vote was taken, and the motion carried.

        4. A requested appointment with tenure for Dr. Charles F. Mactutus had been presented to the Academic Affairs and Faculty Liaison Committee and to the full Board in Executive Session without objection.

          On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of the request to award tenure to Dr. Charles F. Mactutus at the rank of Professor in the Department of Psychology, College of Liberal Arts effective with his appointment as Professor in the Department of Psychology, College of Liberal Arts. Mrs. Harvey seconded the motion. The vote was taken, and the motion carried.

        5. A requested appointment with tenure for Dr. Rosemarie M. Booze had been presented to the Academic Affairs and Faculty Liaison Committee and to the full Board in Executive Session without objection.

          On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of the request to award tenure to Dr. Rosemarie M. Booze at the rank of Professor in the Department of Psychology, College of Liberal Arts effective with her appointment as Professor in the Department of Psychology, College of Liberal Arts. Mr. Staton seconded the motion. The vote was taken, and the motion carried.

        6. A requested appointment with tenure for Dr. Mary Hjelm had been presented to the Academic Affairs and Faculty Liaison Committee and to the full Board in Executive Session without objection.

          On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of the request to award tenure to Dr. Mary Hjelm at the rank of Associate Professor at USC Salkehatchie effective with her appointment as Associate Professor at USC Salkehatchie. Mr. Wienges seconded the motion. The vote was taken, and the motion carried.

      4. Transfers of Tenure:
        1. A request to transfer the tenure of Dr. Cole Blease Graham had been mailed with the materials for this meeting and had been presented to the Academic Affairs and Faculty Liaison Committee and to the full Board in Executive Session without objection. Dr. Graham's tenure would be transferred from the College of Criminal Justice to the Department of Government and International Studies in the College of Liberal Arts.

          On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of the transfer of Dr. Graham's tenure as presented. Mr. Mungo seconded the motion. The vote was taken, and the motion carried.

        2. A request to transfer the tenure of Dr. Kim E. Creek had been mailed with the materials for this meeting and had been presented to the Academic Affairs and Faculty Liaison Committee and to the full Board in Executive Session without objection. Dr. Creek's tenure would be transferred from the Clinical Unit to the Basic Science Unit in the School of Medicine.

          On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of the transfer of Dr. Creek's tenure as presented. Mr. Bahnmuller seconded the motion. The vote was taken, and the motion carried.

        3. A request to transfer the tenure of Dr. Charles Wilbanks had been mailed with the materials for this meeting and had been presented to the Academic Affairs and Faculty Liaison Committee and to the full Board without objection. Dr. Wilbanks' tenure would be transferred from the Department of Theatre, Speech, and Dance to the Department of English in the College of Liberal Arts.

          On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of the transfer of Dr. Wilbanks' tenure as presented. Mr. Bradley seconded the motion. The vote was taken, and the motion carried.

        4. A request to transfer the tenure of Dr. David Berube had been mailed with the materials for this meeting and had been presented to the Academic Affairs and Faculty Liaison Committee and to the full Board without objection. Dr. Berube's tenure would be transferred from the Department of Theatre, Speech, and Dance to the Department of English in the College of Liberal Arts.

          On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of the transfer of Dr. Berube's tenure as presented. Mr. English seconded the motion. The vote was taken, and the motion carried.

      5. Departmental Name Change: College of Liberal Arts: Department of Languages, Literatures, and Cultures:

        Following Board of Trustees' approval of the Strategic Directions and Initiatives Committee recommendation to merge the three foreign language departments at the University, the College of Liberal Arts had requested that the name of this new department be the Department of Languages, Literatures, and Cultures. This request had received all appropriate approvals.

        On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of this College of Liberal Arts departmental name change as described in the materials distributed for the meeting. Mr. Fennell seconded the motion. The vote was taken, and the motion carried.

      6. College Name Change: College of Journalism and Mass Communications and the College of Library and Information Science to the College of Mass Communications and Information Studies: Following the Board of Trustees' approval of the SDI recommendation to combine the College of Journalism and Mass Communications and the College of Library and Information Science, the joint faculties of the two colleges had requested that the name of the combined unit become the College of Mass Communications and Information Studies. The combined college would contain two schools: the School of Journalism and Mass Communications and the School of Library and Information Science. This request had received all appropriate academic and administrative approvals.

        On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of this college name change as described in the materials distributed for this meeting. Mr. Foster seconded the motion. The vote was taken, and the motion carried.

      7. Name Change and Change of Responsibility: College of Criminal Justice: The Board of Trustees had approved the recommendation to transfer the College of Criminal Justice to the College of Liberal Arts as a department. The College of Liberal Arts had requested a new departmental name of the Department of Criminology and Criminal Justice. This name change and change of responsibility had received all appropriate academic and administrative approvals.

        On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of this departmental name change and change of responsibility as described in the materials distributed for this meeting. Mr. Lister seconded the motion. The vote was taken, and the motion carried.

      8. Bachelor of Arts in Comparative Literature: College of Liberal Arts, USC Columbia: The College of Liberal Arts had requested the establishment of a Bachelor of Arts in Comparative Literature. This program had received all appropriate academic and administrative approvals.

        On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of the Bachelor of Arts in Comparative Literature as described in the materials distributed for this meeting. Mr. Hubbard seconded the motion. The vote was taken, and the motion carried.

      9. Bachelor of Science in Business Administration with a Concentration in Management, USC Beaufort: USC Beaufort had requested the establishment of a Bachelor of Science in Business Administration with a Concentration in Management. This program had received all appropriate academic and administrative approvals.

        On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of the Bachelor of Science in Business Administration with a Concentration in Management as described in the materials distributed for this meeting. Mrs. Harvey seconded the motion. The vote was taken, and the motion carried.

      10. USC Columbia Faculty Manual Changes: Proposed changes to the USC Columbia Faculty Manual had been mailed with the materials for this meeting. These changes had received all appropriate academic and administrative approvals.

        On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of the proposed changes to the USC Columbia Faculty Manual as described in the materials distributed for this meeting. Mr. Loadholt seconded the motion. The vote was taken, and the motion carried. [Exhibit C]

      11. USC Aiken Faculty Manual Changes: Proposed changes to the USC Aiken Faculty Manual had been mailed with the materials for this meeting. These changes had received all appropriate academic and administrative approvals.

        On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of the proposed changes to the USC Aiken Faculty Manual as described in the materials distributed for this meeting. Mr. Loadholt seconded the motion. The vote was taken, and the motion carried. [Exhibit D]

      12. USC Aiken Revised Mission Statement: On behalf of the USC Aiken Faculty, Chancellor Hallman had requested a revised mission statement for the University of South Carolina Aiken. It had been the result of six months' work by a Strategic Planning Steering Committee and reflected the values that this institution had endorsed through the study. As strategic planning efforts continued, this statement of purpose would guide assessments of current programs and practices and point the way for recommendations about future developments at USC Aiken. This request had received all appropriate academic and administrative approvals.

        On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of the USC Aiken revised mission statement as described in the materials distributed for this meeting. Mr. Loadholt seconded the motion. The vote was taken, and the motion carried.

      13. USC Spartanburg Faculty Manual Changes: Proposed changes to the USC Spartanburg Faculty Manual had been mailed with the materials for this meeting. These changes had received all appropriate academic and administrative approvals.

        On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of the proposed changes to the USC Spartanburg Faculty Manual as described in the materials distributed for this meeting. Mr. Lister seconded the motion. The vote was taken, and the motion carried. [Exhibit E]

      14. Removal of Honorary Degree Candidates From the Table: On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved to remove the names of the following honorary degree recipients from the table:
          Katie Adams Hodge awarded in May in Spartanburg
          J. Verne Smith awarded in May in Spartanburg
          James E. Talley awarded in May in Spartanburg

          Mr. Lister seconded the motion. The vote was taken, and the motion carried.

          Mr. McLellan noted that Senator Harris Wofford would be the Speaker at the August Commencement.

    5. Fiscal Policy Committee (The Honorable M. Wayne Staton reported)

      The Fiscal Policy Committee had met on Thursday, June 20, 2002, and had reviewed the following items.

      Mr. Kelly had summarized the Designated Fund Activity for Quarter Ending March 31, 2002. Overall, revenues should meet expenditures for the period without use of prior year balances and expenditures had continued to be on line with budgets and past experience through the third quarter.

      The Committee had also approved the Designated Fund Budget for 2002-2003. At that time, it was noted that the scholarship budget had been increased by $275,000 which would be funded by an increase in Trademark and Licensing revenue from FY 2002.

      In addition, the Internal Audit Department's budget request for FY 2003 had been submitted for Committee approval. The director, Alton McCoy, had been able to redistribute funds in order to utilize a $69,313 surplus from FY 2002 to improve the operation of the department in FY 2003.

    6. REPORT OF THE BICENTENNIAL YEAR CELEBRATION: Chairman Whittle recognized Mr. Wienges who extended a deeply-felt "God Bless You" to Dr. Palms for his leadership during his term as President of the University of South Carolina.

      Mr. Wienges made the following remarks:

      The Final Report of the USC Bicentennial Year Celebration is at your place. As Chair of the Bicentennial Commission, I am very pleased to present you with this account of six years of planning and execution.

      Early in 1996, President Palms appointed a Pre-planning Committee to begin consideration of what the Bicentennial Year should be like, what its tone should be, what might be its theme, and how should it be organized.

      The Committee met for nine months and then delivered its blueprint for a successful year of remembrance, looking to the future, and reconnecting the University to the people of South Carolina. The length of the celebratory year was defined, the tone was set, and a structure was recommended.

      A Bicentennial Commission supported by nine standing committees was created. In my view, the key to the success of our celebratory year was conducting it through the academic structure of the University – making it a living part of the ongoing life of the mind of this vital institution.

      There were large public events that were totally successful – an opening day ceremony with a free lunch for anyone who wanted to come, a postal card dedication, and a grand closing ceremony culminating the year at the State Capitol. University Day was moved by necessity from the now infamous date of September 11, 2001.

      But, there were also literally one hundred seminars, lectures, concerts, and academic events which reached deep into the very fabric of our institution and out into the State -- such as our Middle School Project – "Meet in the Middle."

      Now, I will not take long but I want to tell you about the budget. Our sister institution to the North, Chapel Hill, spent $2.3 million dollars in 1993 dollars on a bicentennial year. We sought to be more prudent and aimed at approximately $2 million dollars as valued in the year 2000. Tight budget times came on this University and we pared our budget requests – but not our standards – to $1.6 million. The books are now closed. Your Bicentennial Celebration was brought in well under budget – with its major objectives fully accomplished for only $1.2 million.

      I would like to thank John Palms and the members of the University Administration. I would like to thank the distinguished members of the Bicentennial Commission. I thank deeply the Executive Committee – our operating body – and its Chair, Dr. Thorne Compton. And I thank our excellent staff: Executive Director Sally McKay, Associate Director Harry Lesesne, and staff assistant Jill Grantz. I would also like to express my appreciation to our Board Secretary, Thomas L. Stepp, and his staff who undertook the administrative responsibility for managing this operation as a challenge managed without additional overhead costs to Carolina.

      Tomorrow, the Bicentennial Office will close. The impact of its efforts are worthy of note. So, study the report before you. Let it lead your memory to your favorite highlights of the year.

      Carolina has surpassed 200 years of experience; Carolina has surpassed the expectation of its founders; and, every day, Carolina excels in its service to this State by building on these 200 years to achieve excellence in the centuries to come.

      Chairman Whittle stated that this report would be received for information.

    7. ALUMNI ASSOCIATION REPORT: Chairman Whittle recognized Mr. Fennell who initially commented that Dr. and Mrs. Palms had provided enormous support to the Alumni Association, particularly during his term of office the past two years. In recognition of their support and on behalf of the almost 200,000 current alumni, Mr. Fennell presented Dr. and Mrs. Palms a framed watercolor entitled "Yellow Sky Over Pritchards" which had been painted by Betty Walker, an alumna from the University of South Carolina class of 1948.

      Mr. Fennell presented the following progress report of the Carolina Alumni Association during his two-year tenure as President from 2000-2002:

      As the Alumni Association entered the year 2000 it was guided by specific, measurable goals and objectives. Thanks to dedicated volunteer leadership and the commitment of staff and volunteers, the Association is proud to report that those goals have been achieved.

      Goal 1. Increase membership in the Association to 30,000.

      In December 2001 we celebrated the enrollment of the 30,000th Association member. Membership growth is among the highest in the nation, thanks to the energetic "Show Your Card" program that added significant, tangible benefits to the pride of affiliation with USC.

      Goal 2. Ensure that education is a key component of Association programming.

      In June 2000 the Association launched Alumni University. We just completed our third year of this popular program that connects alumni to faculty and reinforces the essential mission of the University. The alumni travel program, having grown approximately 300 percent features education programming both at pre-trip receptions and during each trip. Back-to-Class and reunion seminar programs provide additional opportunities to connect alumni to programs.

      Goal 3. Increase outreach to students. Enroll 800 students as members.

      The student membership program of the Association is the largest student organization on campus and one of the largest in the country. More than 2,800 Carolina students are enrolled, receiving benefits, and learning the value of Association membership.

      Goal 4. Provide direct support to the stated goals of the University, including those of advancement, development, and enrollment management.

      The Association expanded its Legacy Program. Now in addition to hundreds of students receiving the Legacy Scholarship, more than one thousand children of alumni are receiving regular contacts to encourage them, from birth to high school age, to look closely at Carolina.

      In 2001, the Association launched a series of on-line offerings to facilitate alumni interaction with the University. The e-newsletter gives monthly updates to more than 30,000 alumni whose e-mail addresses are on file. The e-newsletter was the perfect vehicle for enlisting alumni support for the University's budget with the Legislature and was used by the Presidential Search Committee to keep alumni informed of its progress. The opening of the e-store not only allowed alumni to purchase Gamecock items and join the Association on-line, it also provides a vehicle for on-line giving.

      The Alumni Scholars program awards nearly $500,000 in direct support to some of the University's most aggressively recruited students. Funds for this program are entirely generated by the membership and entrepreneurial activities of the Association.

      It is rewarding and satisfying to talk about what we have achieved. But significant challenges lie ahead of us. First among these is the construction of the Alumni Center. The facility we envision will be a tremendous asset for the University. It will, by its nature provide a much needed, visible home to alumni. It will serve as testament that the University recognizes the critical value of alumni involvement and support. And it will be a symbol of that commitment on the part of alumni. It will also provide much needed venues for meetings, seminars and celebrations. It will undoubtedly become the venue of choice for every elegant event in the area.

      Making this vision real is the commitment of the Association, its staff and its volunteers. We can and will provide this building and all it offers. To do so, we need the support of everyone in this room. We have a solid history of achieving our goals and we will achieve this one as well.

      I thank you for the opportunity to serve as a member of this Board. It has been one of the most rewarding experiences of my life. As we prepare to welcome the 27th president of the University of South Carolina, I ask that you also welcome my successor, the 87th president of the Alumni Association, from Beaufort, South Carolina, Alex Shuford.

      Again, thanks for all of your support. I have enjoyed my two years.

      Chairman Whittle thanked Mr. Fennell for his contribution to the Board of Trustees.

    8. REPORT OF THE PRESIDENT: Chairman Whittle recognized President Palms who made the following remarks:

      Thank you, Mr. Chairman.

      I want to express my deepest appreciation for the opportunity of service that this Board has provided me. I think of all the professions in education, there is no better one than being the president of a major university in our free democracy in the United States -- a place where we facilitate individuals to develop their inherent capabilities so that they can be self-sustaining and contribute to this great country.

      I appreciate the opportunities I have had to work with outstanding colleagues, including yourselves, and the devotion that you have made to this institution, and the commitment.

      There is no greater excitement than being around university students and I want to thank them and for always uplifting me. At a time when you might be down, you walk on the Horseshoe and run into a few students. In about 5 or 10 minutes you just feel great....

      And, in conclusion, I would be remiss if I didn't use the words that have stimulated and have influenced me so much and words that I really truly believe in -- ‘Learning humanizes your character and does not permit it to be cruel.'

      Thank you.

      Dr. Palms comments were received with applause from the Board and spectators.

    9. OTHER MATTERS:

      1. Presentation of Hamilton Resolution: Secretary Stepp presented the following resolution to Jim Hamilton, retiring University aircraft pilot, commenting that Mr. Hamilton "has literally held most of our lives in his hands very often."

        UNIVERSITY OF SOUTH CAROLINA
        BOARD OF TRUSTEES
        Resolution

        WHEREAS, Jim Hamilton served the University of South Carolina for more than twenty years as a pilot of impeccable skill and unimpeachable judgement who has diligently exercised his duties and enormous responsibilities;

        WHEREAS, Major James P. Hamilton, United States Air Force Retired, served our country for more than twenty years of active military duty as a pilot of great distinction including service in the time of war in Vietnam;

        WHEREAS, USC Chief Pilot Hamilton plans to retire on July 1, 2002 after 6,413 flights for Carolina, consisting of 7,375 flight hours, and 1,659,000 nautical miles flown which have contributed to a remarkable career of 41 years of accident free flight;

        WHEREAS, Call Sign "Geech" has flown United States and Foreign Ambassadors, Members of the Cabinet of the President of the United States, Senators and Congressmen, various Governors of South Carolina and of other States, countless University Honorary Degree Recipients, Members of the Board of Trustees, and three Presidents of the University of South Carolina (as well as Presidents of other Universities and numerous candidates for the Presidency of the University and athletics coaches and candidates for athletics' coaching positions);

        WHEREAS, this tireless and good humored commander of "Slick Air" has never taken advantage of his official position in his pursuit of hundreds of trips to railroad hobby shops across America, nor his accumulation of the nation's largest directory of Bar-B-Que restaurants; and

        WHEREAS, his love for and desire to serve the University of South Carolina are as unquenchable as his in-flight consumption of black coffee, currently estimated at 14,752 cups;

        THEREFORE BE IT RESOLVED that the Board of Trustees wishes Jim Hamilton Godspeed in his retirement and expresses its admiration and respect for this ambassador of goodwill and talented aviator whose good judgement has ceaselessly served Carolina well; and

        BE IT FURTHER RESOLVED that a copy of this Resolution be presented to Major Hamilton as a token of the high esteem in which he is held, even when cancelling flights to protect members of the University Family from proposed decisions decidedly less prudent than his own.

        PRESENTED THIS 27th DAY OF JUNE 2002 AT COLUMBIA, SOUTH CAROLINA

        Board Chairman, Mack I. Whittle, Jr.
        University President, John M. Palms
        Board Secretary, Thomas L. Stepp

      2. Presentation of Athletics Resolutions: Secretary Stepp indicated that Mr. Lister, as Chairman of the Intercollegiate Activities Committee, had requested the following resolutions:

        1. Women's Basketball: Secretary Stepp presented the following resolution in honor of the University of South Carolina's 2001-2002 Women's Basketball Team.

          UNIVERSITY OF SOUTH CAROLINA
          BOARD OF TRUSTEES
          Resolution

          WHEREAS, the University of South Carolina's 2001-2002 Women's Basketball Team finished the season with 25 victories, the third highest, and first 20 victory season in more than a decade;

          WHEREAS, the team earned a second place finish in the SEC and concluded the season ranked number six in the nation (the highest ranking in more than two decades);

          WHEREAS, this dynamic team of excellent student athletes drew crowds culminating in a season home attendance record and the first sellout of a women's basketball game in the history of the Carolina Coliseum; and

          WHEREAS, the 2001-2002 Carolina Women's Basketball Team competed to reach successfully the "Elite Eight" in national competition for the first time in the history of the University;

          THEREFORE BE IT RESOLVED that the Board of Trustees of the University of South Carolina in session assembled this 27th day of June, 2002, unanimously congratulates Coach Susan Walvius and the members of the USC Women's Basketball Team on these accomplishments;

          BE IT FURTHER RESOLVED that the Board proudly recognizes and congratulates Coach Susan Walvius on being named SEC Coach of the Year;

          BE IT FURTHER RESOLVED that the Board is highly appreciative of the manner in which Carolina coaches, staff, and players have represented the University; and

          BE IT FURTHER RESOLVED that a copy of this Resolution be presented to Coach Walvius and the players and staff of the USC Women's Basketball Team in recognition of these accomplishments and well deserved acclaim.

          PRESENTED THIS 27th DAY OF JUNE 2002 AT COLUMBIA, SOUTH CAROLINA

          Mack I. Whittle, Jr., Chairman, Board of Trustees
          Toney J. Lister, Chairman, Intercollegiate Activities Committee
          John M. Palms, President, University of South Carolina
          Thomas L. Stepp, Secretary, Board of Trustees

        2. Women's Track: At the request of Mr. Lister, Secretary Stepp presented the following resolution in honor of the University of South Carolina's 2002 Women's Track Team.

          UNIVERSITY OF SOUTH CAROLINA
          BOARD OF TRUSTEES
          Resolution

          WHEREAS, the University of South Carolina's Women's Track and Field Team set seven school records during the 2002 season;

          WHEREAS, the team produced 32 All-Americans, two NCAA Individual Champions, and three NCAA Relay Champions;

          WHEREAS, the Carolina Women's Track and Field Team competed for and won the SEC Women's Outdoor Championship; and

          WHEREAS, the team won the University's first-ever NCAA team championship as this group of outstanding scholar athletes claimed the 2002 NCAA Women's Outdoor Championship;

          THEREFORE BE IT RESOLVED that the Board of Trustees of the University of South Carolina in session assembled this 27th day of June, 2002, unanimously congratulates Coach Curtis Frye and the members of the USC Women's Track and Field Team on these outstanding accomplishments; and

          BE IT FURTHER RESOLVED that the Board proudly recognizes Coach Curtis Frye for the magnificent distinction and honor of being named National Track Coach of the Year and an assistant coach for the track team of the United States of America for the 2004 Olympic Games; and

          BE IT FURTHER RESOLVED that the Board is highly appreciative of the manner in which these athletes and coaches have represented the University; and

          BE IT FURTHER RESOLVED that a copy of this Resolution be presented to Coach Frye and the players and staff of the University of South Carolina Women's Track and Field Team as a token of the respect and admiration which they have garnered from their fans, the people of South Carolina and the United States of America.

          PRESENTED THIS 27th DAY OF JUNE 2002 AT COLUMBIA, SOUTH CAROLINA

          Mack I. Whittle, Jr., Chairman, Board of Trustees
          Toney J. Lister, Chairman, Intercollegiate Activities Committee
          John M. Palms, President, University of South Carolina
          Thomas L. Stepp, Secretary, Board of Trustees

        3. Men's Baseball: At the request of Mr. Lister, Secretary Stepp presented the following resolution in honor of the University of South Carolina's 2002 Men's Baseball Team.

          UNIVERSITY OF SOUTH CAROLINA
          BOARD OF TRUSTEES
          Resolution

          WHEREAS, the University of South Carolina's Baseball Team garnered the most wins – 162 – of any college baseball team over the last three seasons;

          WHEREAS, the 2002 team set a new at home attendance record of 151,521 fans attending games at Sarge Frye Field; WHEREAS, the team set the school single season record for victories at 57;

          WHEREAS, three Gamecock baseball team players were named All-American and one SEC Player of the Year;

          WHEREAS, this outstanding team won the third USC SEC Eastern Division Championship in four years and the second SEC championship in three years;

          WHEREAS, the team made Carolina's first appearance in the College World Series since 1985 and finished that competition as runner-up for the National Championship; and

          WHEREAS, the team finished the season ranked number two in the nation, tying the highest such ranking in school history;

          THEREFORE BE IT RESOLVED that the Board of Trustees of the University of South Carolina in session assembled this 27th day of June, 2002, unanimously congratulates Coach Ray Tanner and the members of the USC Baseball Team on these accomplishments which have brought honor and distinction to the University;

          BE IT FURTHER RESOLVED that the Board is highly appreciative of the manner in which these players and coaches have represented the University; and

          BE IT FURTHER RESOLVED that a copy of this Resolution be presented to Coach Tanner and the players and staff of the 2002 University of South Carolina baseball team.

          PRESENTED THIS 27th DAY OF JUNE 2002 AT COLUMBIA, SOUTH CAROLINA

          Mack I. Whittle, Jr., Chairman, Board of Trustees
          Toney J. Lister, Chairman, Intercollegiate Activities Committee
          John M. Palms, President, University of South Carolina
          Thomas L. Stepp, Secretary, Board of Trustees

      3. Presentation of Fennell Resolution: Secretary Stepp presented the following resolution saluting Mr. Fennell.

        UNIVERSITY OF SOUTH CAROLINA
        BOARD OF TRUSTEES
        Resolution

        WHEREAS, The Honorable A.C. "Bubba" Fennell, III, has served with distinction as President of the University of South Carolina Alumni Association for the past two years and has most ably represented the Association as a member of the University's Board of Trustees;

        WHEREAS, Mr. Fennell has served with distinction as a member of the Fiscal Policy Committee, the Health Affairs Committee, and the Student-Trustee Liaison Committee;

        WHEREAS, Bubba Fennell has displayed an admirable commitment to his community and this state through service to the Self Memorial Hospital, the Greenwood and S.C. United Way, the Greenwood Kiwanis Club, the S.C. Festival of Flowers, the Bowers-Rodgers Home for Abused Children, the Boy Scouts of America, the Easter Seal Society, Erskine College and Lander College;

        WHEREAS, in all of these activities Bubba Fennell has consistently risen to positions of top leadership - leadership that has been recognized in many ways including receipt of the S.C. Association of CPA's Public Service Award, the Greenwood Sertoma Service to Mankind Award, and the distinguished Jefferson Award presented on the principle espoused by Thomas Jefferson that "One man with courage is a majority;"

        WHEREAS, Bubba and Jo Ann Fennell are both alumni of our alma mater at which he was a member of the Beta Alpha Psi Honorary Accounting Fraternity, Delta Sigma Pi Business Fraternity and Alpha Phi Omega Service Fraternity and for which he has served in numerous local and statewide alumni activities and as an active participant in Carolina Commencement Exercises; and

        WHEREAS, Mr. Fennell has distinguished himself in his chosen profession of Certified Public Accountant and has displayed special devotion to the Greenwood First Baptist Church;

        THEREFORE BE IT RESOLVED that the Board of Trustees in session assembled this 27th day of June, 2002, expresses its sincere appreciation of A.C. "Bubba" Fennell for his many acts of service to his fellow man and to the University always displaying an indomitable "Fighting Gamecock" spirit; and

        BE IT FURTHER RESOLVED that a copy of this resolution be presented to "Bubba" Fennell as a token of the high esteem in which he is held.

        PRESENTED THIS 27TH DAY OF JUNE 2002 AT COLUMBIA, SOUTH CAROLINA

        Board Chairman, Mack I. Whittle, Jr.
        University President, John M. Palms
        Board Secretary, Thomas L. Stepp

      4. Presentation of Palms Resolution: At Chairman's Whittle request, Secretary Stepp presented the following resolution to President Palms.

        UNIVERSITY OF SOUTH CAROLINA
        BOARD OF TRUSTEES
        Resolution

        WHEREAS, John Michael Palms has led a distinguished life of service in the fields of science and education;

        WHEREAS, Dr. Palms has devoted his life's work to the highest principles of the life of the mind applied to improving the human condition on many fronts;

        WHEREAS, he has served with distinction as the 26th President of the University of South Carolina since 1991 and has led the University through many accomplishments establishing new levels of excellence and service;

        WHEREAS, President Palms is a man who has lived up to the principles of his faith, has served others with conscientious diligence, and is renowned for his exemplary role as husband, father, and grandfather; and

        WHEREAS, his presidency has been the subject of considerable recognition and appreciation during recent months and the Board of Trustees has caused the University to award him the institution's highest honor, the honorary doctoral degree;

        THEREFORE BE IT RESOLVED that the Board of Trustees hereby recognizes these tributes from many sources to Dr. Palms and joins in them by expressing its appreciation for his dedication to the University of South Carolina;

        BE IT FURTHER RESOLVED that the Board of Trustees hereby bestows on President Palms the title Distinguished President Emeritus effective July 1, 2002; and

        BE IT FURTHER RESOLVED that a copy of this Resolution, adopted in session assembled this 27th day of June, 2002, be presented to John M. Palms as a token of the esteem in which he is held.

        PRESENTED THIS 27TH DAY OF JUNE 2002 AT COLUMBIA, SOUTH CAROLINA

        Mack I. Whittle, Jr., Chairman, Board of Trustees
        Thomas L. Stepp, Secretary, Board of Trustees

        Chairman Whittle commented that President Palms had been recognized on numerous occasions during the past months including the gala preceding the presentation of his honorary degree during the May Commencement Ceremony and Governor Hodge's presentation to him of the Order of the Palmetto during the June 20, 2002, Executive Committee meeting.

        "I would be remiss, if, on behalf of this Board and on behalf of the alumni and the staff and faculty, I didn't tell you how much we appreciate the energy and the enthusiasm and the way that you have approached this job. You took over in very rough times and we all do not always want to remember those, but in fact we do and we understand that leadership takes on many different forms. There are people who can manage something that is already there. But it takes a different person who not only has to lead, but has to grow and develop and change an institution. It was your and Norma's leadership that has allowed us to improve this university. You have surely set the course for us. You have given us a roadmap to measure the way. And I think history will show that you were the start of this university's reaching the academic excellence that many of us have aspired to over the years. For that we are very appreciative."

      At this time, Mr. Mungo recognized Secretary Stepp and the tremendous amount of work he had accomplished. Mr. Mungo noted that Secretary Stepp served as secretary/treasurer of the University; secretary of the Board of Trustees; and had served as secretary of the Presidential Candidate Search Committee and executive responsible for the Bicentennial Year. "This man has the greatest interests of the University at heart always." In appreciation, Board members stood and extended to Secretary Stepp a hearty round of applause.

    Since there were no other matters to come before the Board of Trustees, Chairman Whittle declared the meeting adjourned at 1:17 p.m.

    Respectfully submitted,
    Thomas L. Stepp
    Secretary