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
December 17, 2001
The University of South Carolina Board of Trustees met Monday, December 17, 2001, at 10:15 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. 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; Mr. Michael J. Mungo; Mr. M. Wayne Staton; Mrs. Inez M. Tenenbaum; Mr. John C. von Lehe, Jr.; and Mr. Othniel H. Wienges, Jr. Trustees absent were: Mr. Alexander English, Mr. J. DuPre Miller, and Ms. Darla D. Moore. The faculty representative, Professor Robert Wilcox, and the student representative, Mr. Corey Ford, 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 for Information Technology and Chief Information Officer William F. Hogue; Vice President and Chief Financial Officer Richard W. Kelly; Vice President for Human Resources Jane M. Jameson; Vice President for Student and Alumni Services Dennis A. Pruitt; General Counsel Walter (Terry) H. Parham; Vice Provost and Executive Dean for Regional Campuses and Continuing Education Chris P. Plyler; Chancellor of USC Aiken Thomas L. Hallman; Chancellor of USC Spartanburg John C. Stockwell; 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; Dean of USC Union James W. Edwards; Vice President of 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 Graduate School Gordon B. Smith; Dean of the College of Hospitality, Retail, and Sport Management Patricia G. Moody; Associate Dean of Academic Affairs, The Darla Moore School of Business, Rodney L. Roenfeldt; Associate Dean of Administration, The Darla Moore School of Business, Robert E. Markland; Professor and Associate Dean of the College of Journalism and Mass Communications M. Kent Sidel; Director of Institutional Planning and Assessment Harry G. Matthews, Sr.; Director of Student Development and University Housing, Division of Student and Alumni Services, Gene Luna; Director of Facilities Planning and Construction and University Architect Charles G. Jeffcoat; Director of Planning Services, Facilities Planning and Construction, Donna Collins; Assistant Treasurer Susan D. Hanna; Assistant Athletic Director for Development, Department of Athletics, Brad Edwards; Budget Director, Office of Budget, William P. Bragdon; Assistant Budget Director, Office of Budget, Glenda Ridgely; Assistant to the Vice President, Office of Business and Finance, Ken Corbett; Associate Professor of Business Administration at USC Salkehatchie and South Carolina Representative William K. Bowers; University Legislative Liaison John D. Gregory; co-chairs, Beaufort Citizens Task Force for the Establishment of a Four-Year Degree Granting Institution, Richard Stewart and Wes Jones; staff member of the USC Beaufort Development Office Staci Breton; husband of Trustee Helen C. Harvey, Brantley Harvey; Bond Counsel: Robert Galloway of Haynsworth Sinkler Boyd, PA; Brent Jeffcoat of Parker Poe Adams & Bernstein, L.L.P; and Dianne McNabb of A.G. Edwards and Sons; Campus Minister, Presbyterian Student Association, The Reverend John Cook; former USC Columbia Student Government Association President Jotaka Eaddy; Lenora Eaddy; Jackie Gilloon; 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 to introduce themselves. He introduced the retiring faculty members who were present and asked them to step forward to the podium. Chairman Whittle explained that they had been awarded honorary titles at a previous Board meeting. President Palms and Chairman Whittle extended congratulatory handshakes to each of the faculty members. The Board of Trustees acknowledged their efforts with a round of applause and Chairman Whittle thanked them for their service to the University of South Carolina.
Chairman Whittle invited members of the University family to introduce themselves. Mr. McKinney introduced members of the media who were in attendance. At Chairman Whittle's invitation, Mr. Cook delivered the Invocation.
Chairman Whittle stated that there were personnel matters with respect to honorary faculty titles, mid-year tenure and promotion recommendations, and honorary degree nominations; a contractual matter with respect to a property acquisition; a contractual matter involving USC Beaufort; and a streeet naming that were appropriate for discussion in Executive Session. Mr. Bradley moved to enter Executive Session, and Mr. Fennell seconded the motion. The vote was taken, and the motion carried.
The following persons were invited to remain: Dr. Palms, Mr. Stepp, Dr. Odom, Mr. Glenn, Mr. Kelly, Dr. Hogue, Ms. Jameson, Dr. Pruitt, Dr. Plyler, Mr. Parham, Dr. Stockwell, Dr. Hallman, Ms. Hanna, Mr. Gregory, Mr. McKinney, Dean Upshaw, Mr. Weston Jones, Mr. Dick Stewart, Ms. Tweedy, and Ms. Warren.
Executive Session
Return to Open Session
There were no additions, deletions, or corrections to the minutes; therefore, they stood approved as distributed.
Dr. Palms had also requested a mid-year tuition increase effective January, 2002, to help manage this mid-year budget cut. He had suggested a tuition increase at USC Columbia for resident undergraduates of 4.9 percent, and 1.8 percent for nonresident undergraduates. This request was at the highest rate permitted by state regulations for resident student tuition while taking into consideration the market sensitivities and the scholarship impact for out-of-state student tuition. This increase would generate approximately $1.2 million annually. The Committee had approved the tuition increase on behalf of the Board so that students could be informed in a timely manner and the necessary mechanics to change tuition collection could be put into place.
It had been determined that discussions of University funding strategies in view of lessening state support would be necessary and would require extensive consideration and review. The work of the SDI Committee was providing initial direction to this approach.
Chairman Whittle also reported that earlier today, the Executive Committee had approved a contract with JDA Software Group, Inc.
The following two items had been approved for recommendation to the Board:
Mr. Staton moved approval of the Moore School of Business Proposed Program Fees as approved by the Executive Committee earlier today and mailed with the materials for this meeting. Mr. Bradley seconded the motion. The vote was taken, and the motion carried.
Mr. Lister moved approval of the Athletics Facilities Revenue Bond Anticipation Notes as approved by the Executive Committee earlier today. Mr. Bradley seconded the motion. The vote was taken, and the motion carried. [Exhibit A]
The following individuals would be awarded the title Distinguished Professor during their final year of service. That title would change to Distinguished Professor Emerita at retirement:
The following individuals would be awarded the title Distinguished Professor during their final year of service. That title would change to Distinguished Professor Emeritus at retirement:
The following individuals would be awarded the title Emerita Professor at their retirement:
The following person would be awarded the title Emeritus Professor effective concurrent with his retirement August 15, 2001:
The following person would be awarded the title Emeritus Professor effective with his retirement:
On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of these honorary faculty titles. Mr. Bahnmuller seconded the motion. The vote was taken, and the motion carried.
The following individuals would be promoted to Associate Professor with Tenure:
The following person would be promoted to Professor:
The following person would be awarded tenure at the rank of Associate Professor:
On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of these tenure and promotion recommendations. Mr. Hubbard seconded the motion. The vote was taken, and the motion carried.
This request had received all appropriate approvals. On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved approval of this Moore School of Business departmental name change as described in the materials distributed for this meeting. Mr. Bradley seconded the motion. The vote was taken, and the motion carried.
On behalf of the Academic Affairs and Faculty Liaison Committee, Mr. McLellan moved to remove the names of Donald L. Evans, Charles W. Coker, and David H. Wilkins from the table. Mr. Foster seconded the motion. The vote was taken, and the motion carried.
Administrative approval had been obtained to increase the existing Engineering Shop Budget by $50,500 due to environmental concerns which had been identified on the adjacent property. This increase would be funded with Appropriated State Funds from the administration and the College of Engineering and Technology; therefore, the total project budget would be $1,124,500 with $955,000 in Institutional Capital Project Funds, $160,500 in Appropriated State funds, and $9,000 from other departmental funds. It was anticipated that the building would be completed and occupied in the early part of 2002.
The following items from the Buildings and Grounds Committee meetings of November 16, 2001, and December 12, 2001, required consideration by the Board this day:
On behalf of the Buildings and Grounds Committee, Mr. Loadholt moved to increase the project budget by $28.5 million funded with Housing Revenue Bond Funds and to change the source of funds for the initial project budget from Housing Maintenance Reserve Funds to Housing Revenue Bond Funds. This increase would result in a total project budget of $29 million funded entirely with Housing Revenue Funds as described in the materials distributed for this meeting. Mr. Foster seconded the motion.
Mr. Hubbard commented that he had read an article in the USC Times which had indicated that the building facade would be brick rather than stucco. He was concerned that the use of brick would not conform to the other residence halls constructed in that area. Mr. Hubbard asked if the Architectural Review Committee had approved this particular change, noting that such an alteration had never been presented to the Buildings and Grounds Committee.
Secretary Stepp explained that the Architectural Design Review Committee had met the previous week on rather short notice. Some members had examined the proposed design of this project; neither Mr. Buyck nor Mr. Loadholt had been able to attend. He indicated that they were to review the presentation later today. If they approved the proposed design, more refined drawings could be made available to the Buildings and Grounds Committee after January 1, 2002.
It was decided to amend the motion to include approval of the building's exterior facade by the Architectural Design Review Committee, the Buildings and Grounds Committee, and the full Board. Mr. Hubbard expressed concern that the Board of Trustees seemed to be "approving more with less information." The vote was taken, and the motion as amended was carried.
The University and the Development Foundation had been jointly pursuing an alternate site location for the child development center which was temporarily housed in a facility on Whaley Street. The University owned property at Pickens and Wheat Streets, the proposed location for this center. The administration was requesting approval to sell 75,000 square feet of the property to the Foundation for the development of the children's center. The appraised value of the land would determine the actual price for the transfer of property ownership contingent upon the amount of area needed to develop the project. The value of the land was appraised at $7.50 a square foot; the anticipated sale price would range between $550,000 and $700,000.
On behalf of the Buildings and Grounds Committee, Mr. Loadholt moved approval of the sale of approximately 75,000 square feet of University-owned land located at Wheat and Pickens Streets to the Development Foundation. The purchase price was estimated between $550,000 and $700,000 as described in the materials distributed for this meeting. Mr. Hubbard seconded the motion.
Mr. Mungo requested additional information regarding in-house transactions; specifically, he asked where the money was deposited after the sale of the property to the Foundation. Mr. Kelly explained that the funds would be placed in a non-designated account under the purview of the President and the Board of Trustees.
The vote was taken, and the motion carried.
This project, which will be implemented in phases, would renovate approximately 20,000 square feet of existing space to provide offices for researchers, shell space for laboratories, and a seminar room. Included in the renovations would be the lobby area and Greene Street entrance. The project's proposed budget of $1.5 million will be funded with Supplemental State Appropriated Funds.
On behalf of the Buildings and Grounds Committee, Mr. Loadholt moved approval of the Sumwalt College renovations for the USC NanoCenter project with a budget of $1.5 million to be funded with Supplemental State Appropriated Funds as described in the materials distributed for this meeting. Mrs. Harvey seconded the motion. The vote was taken, and the motion carried.
On behalf of the Buildings and Grounds Committee, Mr. Loadholt moved approval of the naming of the Sumter buildings as described in the materials distributed for this meeting. Mr. Bahnmuller seconded the motion. The vote was taken, and the motion carried.
In 1997, the appraised value had been $10,200,000. BellSouth had offered to sell the property to the University for $6.9 million; the difference would be considered a gift to the University. It was anticipated that the closing for this transaction would occur in mid-April. In addition, it had been estimated that the cost to renovate the facility, including asbestos abatement and other related costs, would be $10.8 million.
This purchase would provide needed area to centralize a majority of the University's administrative functions. As a result, critical space located in the interior of the campus would open for use by academics, research, and student activities. The availability of increased parking would be an added benefit.
Two leases were material to this transaction. University and BellSouth officials will negotiate directly with the landowners to lease to the University an existing parking lot located on 1.65 acres of adjoining land for $56,000. In addition, BellSouth had offered to lease its property for one dollar until the mid-April closing to facilitate the process of the University's preparing the building for occupancy and to access the parking facility.
Funding for the one-time acquisition cost of $6,900,000 and the necessary cost of renovation would be provided from $1.1 million of asbestos funds; $2.1 million of institutional bonds; $2 million of parking revenue bonds; and $14.4 million of general revenue bonds. Those funds which serviced existing leases would be committed to the defeasance of bonds necessary to purchase the BellSouth property. Recurring maintenance and operations costs of approximately $1,375,000 annually would be an additional expense to be included in the University budget beginning next year.
On behalf of the Buildings and Grounds Committee, Mr. Loadholt moved approval of the BellSouth property acquisition as described in the materials distributed for this meeting. Mr. Mungo seconded the motion. The vote was taken, and the motion carried.
For clarification purposes, it was explained that the University had asked the City of Columbia to honor this request; it was not considered a University gift naming process. For the record, Mr. Hubbard reminded Board members that private donations were financing the construction of these houses at a cost "of housing students to the University that is approximately one fourth of what it would cost the University to build a free-standing residence hall."
The vote was taken, and the motion carried.
USC Aiken was commemorating its 40th anniversary in conjunction with the Bicentennial Celebration in Columbia; the campus had initiated its festivities with the inauguration of Dr. Thomas Hallman as the 4th Chancellor. A former student who played baseball for the Kansas City Royals had donated $1 million to fund the construction of a new baseball stadium.
USC Aiken was also involved in strategic planning activities which would address and establish campus goals for the next fifteen years. Ten committees had been formed to review various aspects of university life from student life to the projected image of the campus. Each committee included at least one student member.
At USC Beaufort, the SGA had sponsored several fall events including a "Welcome Back to School" in August and a Haunted House in October to raise money for the Rape Crisis Center of the Low Country and a new scholarship fund.
Tentative spring events included a lecture series sponsored by a different club or organization and a Founder's Day, or possibly Founder's Month, to celebrate the founding of the Beaufort College, now officially designated as USCB.
The USC Columbia SGA was in the process of formulating creative and comprehensive marketing strategies to address poor voter participation during this past election. In the future, debates between candidates would be scheduled to discuss topics of concern and to respond to questions raised.
To address state budgetary concerns, four student committees had been formed. The University Impact Committee had been researching the effects on the University of a pending budget cut; the Economic Factors Committee had been promoting the message that higher education was critical to the economic well-being of the state; the Political Activism Committee had been encouraging student letter-writing to the various state legislators; and the Miscellaneous Committee had been enlisting the participation of alumni and parents.
A Campus Activist Network would be established to increase communication among student organizations; this network will be used to coordinate budget cut efforts and to distribute information about University events.
Other Columbia SGA activities involved discussions and negotiations with University administrators to endorse an academic forgiveness policy and the review of the allocation of student activity fees at the University.
At USC Lancaster, the SGA had sponsored several events during the Fall semester such as a "Back to School Blast"; a "Quiz Bowl" with Gamecock football tickets as prizes; and a raffle for USC vs. Florida football game tickets (all proceeds had been donated to the March of Dimes).
To increase student and faculty interaction, a student forum was planned during the Spring semester so that students could discuss problems and concerns with the deans and faculty members.
The Walterboro and Allendale campuses of USC Salkehatchie had both enjoyed the various Bicentennial celebrations during the past year, especially a recent lecture by Harry Lesesne, the Bicentennial historian.
The Allendale SGA had hosted a home beauty and fashion show to raise money for American Red Cross disaster relief efforts; in conjunction with this event, the baseball team had sponsored a car wash. As a result of these efforts, more than $400 had been donated to the Red Cross.
During the first week of the Fall semester at USC Sumter, the SGA had planned a different activity for each day; many students had attended these events.
To honor those individuals who lost their lives during the September 11th terrorist attacks in Washington, D.C., and New York City, the Sumter campus had held a Day of Remembrance on September 14th.
At USC Union, the Truluck Activities Center renovations had been completed this year and various events such as a guidance counselors' conference, a Halloween social, and a Thanksgiving dinner had been held in the center. An official open house for the community was planned in the near future. In addition, SGA members had been collecting canned goods to donate to the Salvation Army before the holiday break.
In the Spring semester, USC Union students hoped to participate in the "America's Promise" reading program; various SGA members planned to read to children at an elementary school each week.
In conclusion, President Palms thanked the students, particularly for the outreach they were making in the community. He believed that communities were coming together since the September 11th tragedy and that all of our campuses were contributing toward that effort.
Committee members were in the process of evaluating candidates for this position.
Mr. Hubbard commended Dr. Palms, Dr. Odom, Mr. Glenn, members of the administration, as well as the faculty and Board of Trustees, for the excellent condition of this institution; on a national basis, the University was highly regarded as an institution of prominence. Many outstanding candidates considered a potential affiliation with the University of South Carolina as its president very attractive.
Mr. Hubbard expected to present candidates to the Board of Trustees in March so that a decision could be made within a time frame which would provide an appropriate transitional period. On behalf of the Committee, he thanked everyone for their support, and for honoring the confidentiality requirements of potential candidates.
The Strategic Directions and Initiatives Committee was in the process of drafting a report concerning its findings and recommendations for the future development of the University; this report should be delivered to the President's Office in early January. Following this submission, the faculty would review the information under the able assistance of Professor Wilcox, President of the Faculty Senate.
Dr. Palms thanked Provost Odom for his outstanding efforts in coordinating and directing the work of the SDI Committee. He especially thanked Mr. Adams, as a Board member, for the countless hours he had willingly devoted to this process.
The report should be viewed as "a strategic framework, an academic framework, which will drive the allocation of resources." It will guide future University budgetary planning processes.
Dr. Palms invited everyone to the Bicentennial Closing Ceremony on Wednesday, December 19, scheduled to begin at 11:00 a.m. in front of Rutledge Chapel on the Horseshoe, and followed by a ceremonial procession to the Capitol at 11:30 a.m. to commemorate the signing of the Charter of the University 200 years ago on that date. He thanked everyone who had contributed toward the success of the bicentennial celebration especially Mr. Wienges as chair, Mr. Stepp, and the Bicentennial Commission staff.
Dr. Palms congratulated Harry Lesesne, Bicentennial Historian, for the recent publication of his book, The History of The University of South Carolina from 1940-2000. In addition, Caroline Matalene and Katherine Reynolds had collaboratively authored the book entitled Carolina Voices: Two Hundred Years of Student Experiences which contained "wonderful letters from students" including an 1809 letter from William C. Preston, president of this institution from 1845-1851.
In conclusion, Dr. Palms extended warm holiday wishes to the Board of Trustees.
Ms. Eaddy was deeply honored to have served the University and to have had the opportunity to "give back to the University just a small bit of what the University has given me." She also recognized her mother, who had attended this meeting, as the source of her inspiration. In conclusion, Ms. Eaddy commented that she was eagerly anticipating that final handshake from President Palms as she walked across the Coliseum stage during the graduation ceremony later today.
WHEREAS, representatives of the Beaufort community have proposed a public/private partnership to finance the expansion of USC Beaufort with the goal of its becoming a separately accredited, four-year degree granting higher education institution within the University of South Carolina, and
WHEREAS, this proposal has been received, reviewed, and responded to formally by President John M. Palms in a letter dated December 14, 2001, and
WHEREAS, the Board of Trustees has been informed of these proposals and discussions during the course of this meeting,
NOW, THEREFORE, BE IT RESOLVED that the Board of Trustees hereby endorses an agreement in principle with the concept of the USC Beaufort mission statement being amended to allow it to become a four-year degree granting higher education institution within the University of South Carolina subject to the drafting and final approval of a more formal, detailed, written agreement conditioned upon (1) the letter from President John M. Palms of December 14, 2001; (2) the letter from Dr. Rayburn Barton of the South Carolina Commission on Higher Education of November 28, 2001; (3) that Beaufort County provide capital funding and operating funding for USC Beaufort for not less than five years as outlined in the pro forma budget approved by Paine-Webber; (4) that a legally-binding option be generated to convey the campus property to the University of South Carolina upon payoff of the "TIF" financing; and, (5) that Beaufort County Council and the Beaufort County Commission on Higher Education agree that any contemplated action intended to withdraw USC Beaufort from the governance of the University of South Carolina be approved by a majority vote of the USC Board of Trustees before any such action is considered.
Mr. Mungo moved approval of this resolution as read. Mr. Staton seconded the motion. The vote was taken, and the motion carried.
There were no further matters to come before the Board of Trustees, and Chairman Whittle declared the meeting adjourned at 12:00 p.m.
Respectfully submitted,
Thomas L. Stepp
Secretary