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
August 9, 2002
The University of South Carolina Board of Trustees met on Friday, August 9, 2002, at 4:50 p.m. in the Carolina Plaza Board Room.
Members present were: Mr. Mack I. Whittle, Jr., Board Chairman; Mr. Herbert C. Adams, Vice Chairman; Mr. Arthur S. Bahnmuller; Mr. James Bradley; Dr. C. Edward Floyd; Mr. Samuel R. Foster, II; Mr. Alexander English; Mr. William C. Hubbard; Mr. Toney J. Lister; Mr. Miles Loadholt; Mr. John S. Long; Mr. Robert N. McLellan; Ms. Darla D. Moore; Mr. Michael J. Mungo; Mr. James A. Shuford, III; Mr. M. Wayne Staton; Mr. John C. von Lehe, Jr.; and Mr. Othniel H. Wienges, Jr. Trustees absent were Mrs. Helen C. Harvey 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 Andrew A. Sorensen; Secretary Thomas L. Stepp; Executive Vice President for Academic Affairs and Provost Jerome D. Odom; 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 and Interim Vice President for University Relations Dennis A. Pruitt; Interim Vice President for Research Harris Pastides; 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; Dean of USC Beaufort Jane T. Upshaw; Dean of USC Lancaster John Catalano; Dean of USC Salkehatchie Ann Carmichael; Dean of USC Sumter C. Leslie Carpenter; Associate Dean, Academic and Student Affairs, USC Union, Anita K. Bowles; Vice President for Medical Affairs 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 College of Liberal Arts Joan Hinde Stewart; Clinical Associate Professor and Associate Dean, College of Pharmacy, Wayne E. Buff; Assistant Treasurer Susan D. Hanna; Executive Director of the Alumni Association, Division of Student and Alumni Services, Marsha A. Cole; Director of the Department of Internal Audit Alton McCoy; Assistant to the Vice President, Office of Business and Finance, Ken Corbett; Assistant Budget Director Glenda Ridgely; University Liaison John Gregory; Chairman of the Lancaster Commission for Higher Education W.L. McDow; Campus Minister, Presbyterian Student Association, The Reverend John Cook; retiring faculty members Richard Conant and Donald Gray of the School of Music, and Roger Sargent of the Norman J. Arnold School of Public Health; Director of the Office of Public Affairs Russell McKinney; and members of the media.
On behalf of the Board of Trustees, Chairman Whittle extended condolences to Mr. Mungo whose wife had recently died. He also extended Board condolences to the family of Mr. J. DuPre Miller, distinguished Trustee from the 4th Judicial Circuit for almost ten years, who had died in July.
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 Mr. John Sterling Long to the Board of Trustees. He explained that Governor Hodges had appointed Mr. Long to succeed the late Mr. J. DuPre Miller as the 4th Judicial Circuit representative. Earlier today, the Executive Committee had elected Mr. Long to serve on the committees on which Mr. Miller had served until the October organizational meeting of the Board.
Chairman Whittle welcomed everyone and invited Board members to introduce themselves. Mr. McKinney introduced the members of the media who were in attendance.
At Chairman Whittle's invitation, Mr. Cook 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 Sorensen 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 Board of Visitors appointments and Development Foundation Board nominations as well as contractual matters which were appropriate for discussion in Executive Session. Dr. Floyd 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. Sorensen, Mr. Stepp, Dr. Odom, Mr. Kelly, Dr. Hogue, Ms. Jameson, Dr. Pruitt, Dr. Plyler, Mr. Parham, Dr. Stockwell, Dr. Hallman, Mr. Gregory, 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.
The Fiscal Policy Committee had met on Thursday, June 27, 2002. Mr. McCoy had explained that all of the items on the audit tracking report were on track for correction.
The Committee had reviewed the following four internal audits: College of Journalism and Mass Communications; Rental Property; Dining Services; and the Institute of Public Affairs.
Various findings had been discovered during the internal audit of the College of Journalism and Mass Communications which Dean Price and his staff would resolve in the near future. The audit item involving purchasing cards and documentation had been discussed. Mr. McCoy had commented on the number of discrepancies which had been encountered; Dr. Odom would recommend the discontinuation of these cards if Mr. McCoy continued to find inappropriate uses.
The Rental Property audit had reviewed the various properties which the University either rented or leased. In the past, rental property had been managed through the finance division or the facilities planning area. Mr. McCoy had proposed that all of these agreements be coordinated through one particular office. In the future, Ms. Helen Ziegler, Director of Business Affairs, would be responsible for the rental property contracts.
Committee members had also discussed the Wedge Plantation. It had been determined that a clear understanding of the entire contractual agreement was necessary. This would include the submission of an annual report detailing expenses and insurance coverage. Mr. Kelly would submit to the Committee a recommendation for approval concerning the establishment of specific requirements and standards for the upkeep of the property and the buildings located thereon.
The Dining Services audit had revealed two findings which were appropriately addressed and corrected. A new food services contract had been approved effective July 1, 2002.
Following an extensive audit review of the Institute of Public Affairs in 2000 which had revealed fraudulent fiscal activities, the University had suspended the employment of five individuals from this area; the Executive Director had also resigned and forfeited the tenured faculty position. A subsequent State Grand Jury investigation had resolved the matter. The University had received complete restitution and appropriate charges had been filed against the individuals involved.
As a result of this particular audit, it had been determined that the University lacked a comprehensive fraud policy defining what employees should expect if fraud was encountered in the workplace. Mr. McCoy had recommended that a policy be developed and adopted. Every employee would be required to read the policy and sign an agreement of understanding.
The Committee had moved approval that the Internal Auditor's Office, the Vice President for Business and Finance, the Vice President for Human Resources, the Secretary of the Board of Trustees, and the Legal Department collaborate and subsequently recommend to the Fiscal Policy Committee for adoption a University fraud policy.
The Buildings and Grounds Committee had met earlier today and had discussed the following items:
Project Status Report: The Strom Thurmond Fitness/Wellness Center continued to be on schedule and within budget. The pedestrian bridge structures had been installed. Completing the interior, particularly the rotunda, natatorium and main entry plaza areas of the facility, was the primary focus. The expected completion date was December 14, 2002. The facility would open at the beginning of the Spring 2003 semester.
The Basketball Arena also continued to be on schedule; the expected completion date was November 11, 2002. The roof was nearly completed and work had progressed well on the exterior brick and stucco finishes. The interior framed walls on the concourse had been erected, and elevators and an escalator were currently being installed. A prototype of a furnished suite was also nearing completion. A major concert featuring singer Bruce Springsteen had been scheduled to perform in the arena on December 9, 2002.
The initial four houses of the Greek Village had been built. Occupancy was expected beginning with the fall semester. Two additional houses had been approved by the University's Architectural Design Review Committee (ADRC). Construction would begin immediately with completion expected for the Fall of 2004. Eight additional houses were awaiting ADRC review and approval.
Various projects requiring completion prior to the opening of the fall semester had been under construction since mid-May. Projects at Capstone, the Humanities Classroom building, McBryde, Sumwalt, and the Spartanburg Administration Building had included re-roofing, painting, interior finish work, and the installation of additional fire safety systems. These projects represented approximately $6 million of construction which would be completed in less than four months. Improvements to the food service facilities in the Russell House had also begun this summer.
The architects for the proposed new School of Law project (the Smith Group and the Boudreaux Group) had completed the programming necessary to determine the space requirements for the project. The designers had been authorized to proceed through the schematic design stage of the project. Drawings were currently being developed which would indicate the proposed design intent to prospective donors and the Architectural Design Review Committee was working with the Administration based on the initial concept. A capital campaign for the project was scheduled to begin in September 2002.
Report on Funding Change - USC Lancaster Classroom/Auditorium Building: The project had been established for the construction of a new Auditorium/Classroom building on the USC Lancaster campus. Private funding was the main component of this project's financial package.
The project had been approved by the Board of Trustees in June 1998. However, at that time, not all of the private funds had been received and State Institution Bonds were to be used in the event that private funding did not materialize. The project had been approved with a budget of $9.47 million funded with $2.7 million in Capital Improvement Bonds, $4.77 million in private funds, and $2.0 million in State Institution Bonds.
At this time, private funding had been received which eliminated the need to use Institution Bonds. The project budget remained at $9.47 million. The project was currently funded with $2.7 million in Capital Improvement Bonds, $6,626,363 in private funds, and $143,637 in USC Lancaster Institutional Capital Project Funds (ICPF).
Congratulations were extended to Mr. Bradley.
The following item required consideration by the Board today: The Norman J. Arnold School of Public Health: A project to begin feasibility studies and preliminary planning for a new School of Public Health facility was originally established by the Board of Trustees on June 23, 1998 with a budget of $10 million. Site selection and conceptual planning had been completed. A total project budget had been forecast and considerable funding had materialized. Before the project could proceed, approval was required to establish the total project budget.
The architectural firm (FWA Group of Charlotte, North Carolina) had determined that the immediate needs of the school would require the renovation of approximately 133,000 gross square feet of space in the existing Carolina Plaza and new construction of approximately 88,000 gross square feet. The new construction would be located on University-owned land adjacent to and south of the Carolina Plaza, at the corner of Assembly and College Streets.
The total project budget for Phase I was estimated to be $26,500,000. Currently, $17,382,016 from various sources had been secured. Additionally, the Development Foundation of the University had agreed to extend to the School of Public Health a standing line-of-credit for the remaining $9,117,984. If adequate grant and private funding did not materialize, the line-of-credit would be utilized to continue the construction of the project without interruption. Alternately, should funds be borrowed from the Foundation, the School of Public Health would repay the amount borrowed using "indirect cost" funds generated from grants within the school.
In addition to the approval of Phase I, the School of Public Health was seeking contingent approval of another $3,000,000 for the construction of Phase II which would include laboratory space for the relocation of the existing speech and hearing clinic currently located off campus.
Board approval of the Phase II laboratory space and the $3 million budget required for its construction would be contingent upon receipt of grant or private funding to fully fund the additional project costs. Advanced Board approval for Phase II would prevent a delay in the implementation of the additional work, if the additional funding materialized during the construction of Phase I.
On behalf of the Buildings and Grounds Committee, Mr. Loadholt moved approval of the Phase I design and construction of the proposed new facility for The Norman J. Arnold School of Public Health; to increase the existing project budget by $16,500,000; and to approve an additional $3,000,000 for the design and construction of Phase II of the project, contingent upon receipt of the full $3 million from grant or private funds as described in the materials distributed for this meeting. Mr. Mungo seconded the motion. The vote was taken, and the motion carried.
During the Executive Committee meeting earlier today, the following three items were approved for recommendation to the Board:
Mr. Foster moved approval of the appointments to the Board of Visitors. Dr. Floyd seconded the motion. The vote was taken, and the motion carried.
Dr. Floyd moved approval of the Development Foundation Board nominations as presented. Mr. Mungo seconded the motion. The vote was taken, and the motion carried.
This $20 million issue would retire the 2002 BAN in the amount of $8.4 million and finance in full or part: (1) a portion of the costs of renovating and equipping the former BellSouth property and the President's House; (2) the Humanities and Social Sciences Building at USC Aiken; and, (3) the cost for constructing a 1,000-seat baseball stadium with associated service buildings and infrastructure improvements, and the cost for the site development of the stadium as well as the Convocation Center building at USC Aiken.
Mr. Mungo moved approval of the State Institution Bond Resolution as presented in the materials distributed for this meeting. Mr. Staton seconded the motion. The vote was taken, and the motion carried. [Attachment A]
Chairman Whittle explained that the newly-elected President of the Carolina Alumni Association, Mr. Alex Shuford, would serve as its representative on the Board of Trustees for the next two years. Traditionally, incoming Board members served on their predecessor's assigned committees until the October organizational meeting of the Board. Therefore, Mr. Shuford had been elected to serve on the Fiscal Policy Committee; the Health Affairs Committee; and the Student-Trustee Liaison Committee.
In addition, Mr. John Long of Cheraw, whom Governor Hodges had appointed to succeed the late Mr. J. DuPre Miller, had been elected to serve on the following Board committees until the October organizational meeting of the Board: Buildings and Grounds Committee; Health Affairs Committee; Intercollegiate Activities Committee; Ad Hoc Committee on Advancement.
Mr. Shuford noted that the first meeting of the Alumni Association's Board of Governors would be held on September 13-14. Several new members would be attending an extensive orientation session on September 13; board and committee meetings were scheduled for September 14. Of primary focus would be the Alumni Center, membership, and scholarship programs.
Mr. Shuford explained that Alumni Association student members will be serving lemonade to returning students this fall while soliciting their membership in the Association. He hoped to continue the outstanding level of recruitment for new student members.
Mr. Shuford remarked that Homecoming was scheduled for the weekend of October 4. He announced the names of those individuals who would receive Alumni awards on Friday evening of Homecoming Weekend. Mr. Paul Goldsmith will be awarded the Algernon Sydney Sullivan Award. Distinguished Alumni Awards will be presented to Major General Kathryn Frost, assigned to the Pentagon and a member of the Alumni Association Board of Governors; Andrew Card, the White House Chief of Staff; and Justice Harriet O'Neal of the Texas Supreme Court. Honorary life memberships will be given to Coach Lou Holtz and Beth Holtz and Dr. Warren Irvin, a Columbia resident and supporter of the Thomas Cooper Library. Ms. Tracy Young Cooper, South Carolina Teacher of the Year, will receive the Outstanding Black Alumnus Award. And, finally, Ms. Sally McKay, former Executive Director of the University's Bicentennial, will receive the Outstanding Young Alumnus Award.
Dr. Sorensen addressed the historic preservation of the 1600 block of Pendleton Street, explaining that he had begun his term of office as President of this institution hoping to negotiate a compromise regarding the University properties located in this block. Several meetings had been held with the Greater Columbia Hotel and Motel Owners Association; the consensus of opinion had indicated that members were unwilling to consider the possibility of a hotel or motel located on any University property. In addition, the Neighborhood Association's president and vice president would not entertain the idea of any commercial development in the 1600 block of Pendleton Street. Further, the Columbia Historic Preservation Group had stated that the preservation of the Kirkland House located on University-owned property in this block was critical.
Numerous alternatives had been offered, none of which had been acceptable to all of these groups. Dr. Sorensen commented that he had withdrawn from further discussions with these groups which had stimulated City Council member, Ann Sinclair, to work closely with Mayor Coble in order to develop a proposal which the City of Columbia would present to the University in the near future. Dr. Sorensen had requested that Board members recuse themselves from these discussions until the City had offered a concrete proposal.
Secondly, in response to the size of the incoming freshman class, Dr. Sorensen had convened a meeting with Dr. Odom, Dr. Pruitt, and Mr. Kelly in early July; at that time, he had asked them to develop several alternative enrollment management models. During the October Board of Trustees meeting, three different models for the incoming freshman class will be presented. Each model would vary according to the following: (1) size; (2) proportion of African-Americans; (3) proportion of out-of-state residents; and, (4) average SAT scores.
Dr. Sorensen asked that Board members consider the following four general rules associated with these variables: (a) the larger the class, the lower the SAT score and, conversely, the smaller the class, the higher the SAT score; (b) the higher the average SAT score, the greater the amount of scholarship support that will be required because virtually all of the students would be eligible for scholarships; (c) the higher the average SAT score, the lower the proportion of students from low income families (a positive correlation existed between socio-economic status and standardized test scores); (d) the higher the proportion of out-of-state residents, the higher the tuition revenue proportionately and the higher the SAT scores and, conversely, the fewer spaces available for South Carolina residents.
Dr. Sorensen hoped to present a matrix which addressed all of these variables and various possible alternatives.
Chairman Whittle asked that the administration carefully review the capacity of the current University infrastructure, without the consideration of new construction, in order to determine the ideal size of the freshman class. Dr. Sorensen added that scholarship characteristics of the incoming freshman class also needed to be addressed as well as the University's ability to respond to the concomitant teaching needs of a larger class.
At this time, Dr. Odom briefly discussed Fall 2002 teaching concerns as a result of the largest incoming freshman class in the history of the University. Several months ago, he had requested additional academic funding because a much larger number of students had accepted admission than the yield formula had projected. The following five units had received increased funds: College of Liberal Arts; College of Science and Mathematics; Computer Science and Engineering; University 101; and the School of Nursing. Dr. Odom would receive a report of these particular funding expenditures from the various deans in the spring semester.
Increasing the number of offerings rather than increasing the class size had been emphasized. In the College of Liberal Arts, for example, 37 new sections of English 101 and English 102 had been added for the fall semester; in the College of Science and Mathematics, 3 Biology 101 sections had been added and 10 Geology 101 sections had been added; for University 101, 26 new sections had been added for the fall semester and 4 new sections had been added for the spring semester; the Computer Science Department had hired a new instructor who would teach 6 new sections of Computer Science 101 in the fall and spring semesters as well as assuming advising responsibilities.
Dr. Sorensen asked Dr Pruitt, Vice President for Student Affairs, to address the infrastructure and the qualities and characteristics of the incoming class. Dr. Pruitt indicated that a one-page sheet of information regarding the infrastructure would be distributed to Board members in the upcoming weekly mailing.
Dr. Pruitt noted that an additional 450 freshmen, an additional three percent, would be attending the University than last year. He emphasized that this was a very manageable number. Of those students who would be living in a hotel or motel during the fall semester, he assured Board members that their experience would be as positive as those students who would occupy the residence halls; careful consideration had been given to this aspect of student life. The family of every individual assigned to a hotel had been contacted to ascertain whether additional considerations were necessary. The administration "has done everything we can to present and provide for these students the same experience." Dr. Pruitt commented that within two years an additional 1,100 rooms would be available because of the completion of houses in the Greek Village and the completion of new residence halls.
Dr. Pruitt presented a brief overview of the incoming freshman class which, he remarked, was "the best freshman class the University of South Carolina has ever recruited." Demographically, 55 percent of the class was female, 45 percent was male, a relatively consistent figure. An additional 3 percent were nonresidents; one of the University's goals sought a 30 percent nonresident admission rate. There was a 22 percent increase in students who were majoring in science and math; a 32 percent increase in students who were majoring in engineering; a 13 percent increase in students who were majoring in liberal arts; a 12 percent increase in students attending the Honors College; and a 3 percent increase in students attending the Moore School of Business.
Dr. Pruitt commented that the South Carolina Honors College boasted an average 1397 SAT score for its incoming freshman class, again the highest in the history of this institution. The enrollment of this college would increase 30 students or approximately 12 percent. For the baccalaureate students, the SAT score had increased 11 points to 1130; the transition year program had experienced a 50 point SAT score increase from 945 to 995. Collectively, the SAT score for all students had increased 21 points from 1101 to 1122; the projected goal of an 1117 SAT score for this semester had been surpassed.
Dr. Pruitt reviewed scholarship data about the incoming class. He explained that Carolina Scholars numbered 20 with a 13 point increase in SAT scores to 1486; McNair Scholars numbered 20 with an 8 point increase in SAT scores to 1464; National Merit Scholars numbered 35 with a 17 point increase in SAT scores to 1481. An additional 94 Palmetto Scholars from 157 to 251 would be attending the University with an SAT score of 1330. And, there will be 24 Alumni Scholars with an SAT score of 1356.
Ms. Moore asked the number of students who would not return to school in the spring semester. Dr. Pruitt indicated that the percentage would be relatively small; on an annual basis, the University retained 80-81 percent of admitted students which was approximately 5 percent higher than the national average. Of those students not returning, 9 percent were academically eligible but chose to transfer.
Dr. Sorensen addressed the area of relations among the eight USC campuses. He stated the following:
"I desire to build on and strengthen the ties with each of the seven other campuses. I have scheduled numerous visits to Spartanburg, Aiken, and Beaufort, and I am thankful that the heads of those respective campuses are here today, as well as other campuses. We need to respect the individual mission of each campus, but at the same time affirm that the whole is greater than the sum of the parts."I look forward to working closely with the heads of each of the campuses, developing highly effective articulation agreements and exploring avenues for reciprocal relations among all our campuses so that each institution can benefit from the others.
"So, it is not just a case of these campuses benefiting from their affiliation with Columbia, but Columbia's benefiting from our affiliation with them. I have told each of the heads of those campuses that my presence there is more than just an empty gesture; it is a sincere manifestation of my desire to improve on those relations.
And, finally, at Dr. Sorensen's request, Provost Odom briefed Board members regarding the Washington Advisory Group (WAG). He explained that two members of this advisory group, Drs. Eric Block and Joe Wyatt, will visit the campus on August 19-20. At that time, they will hear a series of presentations from various individuals about the progress of the SDI recommendations to date.
Responding to a question from Dr. Floyd regarding the financial impact of an additional 1,000 students, Mr. Kelly initially commented that the state's formula funding of higher education would have affected the enrollment numbers if the General Assembly had fully funded the appropriations which, he noted, it had not. Currently, he believed that the higher education formula was at approximately 70 percent. As Mr. Kelly had explained to Dr. Floyd earlier, at this point no state dollars would be available to cover the cost of 1,000 additional students.
Looking toward the University as a source of income, Mr. Kelly noted that, based upon the current ratio of in-state and out-of-state students, 1,000 students would raise approximately $6.3 million per year of tuition for the first year. Applying the attrition rate for this institution and assuming no increase in tuition during a four-year period, more than $20 million would be generated.
Chairman Whittle commented that this figure did not reflect the associated indirect costs of this increase. He stressed the importance of having a trained professional carefully review these costs "before we will truly know what is the adequate size of this university and, incrementally, what is it going to cost us to add these additional students." Dr. Sorensen explained that during the October Board meeting a thorough report addressing both the revenues and expenditures associated with various sizes of incoming classes would be presented for discussion.
Dr. Sorensen also echoed the condolences which Chairman Whittle had initially expressed to Mr. Mungo regarding the recent death of his wife and to the family of Mr. J. DuPre Miller who had died in July.
Dr. Floyd moved approval of the removal of the names of the honorary degree recipients from the table as presented. Ms. Moore seconded the motion. The vote was taken, and the motion carried.
Since there were no other matters to come before the Board of Trustees, Chairman Whittle declared the meeting adjourned at 6:05 p.m.
Respectfully submitted,
Thomas L. Stepp
Secretary