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.

The Board of Trustees of the University of South Carolina met at 1:00 p.m. on Thursday, February 20, 1997, in the Ballroom of the Russell House University Union.

Board members present were: Mr. William C. Hubbard, Chairman; Mr. Mack I. Whittle, Jr., Vice Chairman; Dr. C. Edward Floyd, Chairman Emeritus; Mr. Herbert C. Adams; Mr. Arthur S. Bahnmuller; Mr. James Bradley; Mr. Mark W. Buyck, Jr.; Mr. Samuel R. Foster, II; Mr. William M. Gregg, II; Mrs. Helen C. Harvey; Mr. Toney J. Lister; Mr. Miles Loadholt; Mr. J. DuPre Miller; Mr. Robert C. Osborne, Jr.; Mr. M. Wayne Staton; and Mr. Othniel H. Wienges, Jr. Members absent were: Mr. Donald A. Bailey; Mr. Robert N. McLellan; Mr. Michael J. Mungo; and Dr. Barbara S. Nielsen. Faculty representative Henry T. Price and student representative Patrick Wright were also present.

Others present were: President John M. Palms; Secretary Thomas L. Stepp; Interim Vice President for Academic Affairs and Provost Donald J. Greiner; Vice President for Business and Finance John L. Finan; Vice President for Student Affairs Dennis A. Pruitt; General Counsel Walter (Terry) H. Parham; Vice President for Medical Affairs and Dean, School of Medicine, Larry R. Faulkner; Acting Vice President for Development Charles D. Phlegar; Chancellor, USC Spartanburg, John C. Stockwell; Dean, College of Liberal Arts, Lester A. Lefton; Dean, College of Journalism and Mass Communications, Judy VanSlyke Turk; Dean, College of Science and Math, Jerome D. Odom; Dean, College of Criminal Justice; C. Blease Graham; Interim Dean, College of Pharmacy, Farid Sadik; Interim Dean, School of Public Health, Dianne Ward; Associate Chancellor for Academic Affairs, USC Aiken, Blanche Premo-Hopkins; Associate Dean, College of Engineering, Joseph H. Gibbons; Associate Dean for Academic Programs, College of Nursing, Sue W. Young; Dean, USC Beaufort, Chris Plyler; Dean, USC Union, James W. Edwards; Dean, USC Lancaster, Joseph Pappin; Dean, USC Sumter; C. Leslie Carpenter; Vice Provost for Research Marsha R. Torr; Director, Department of Internal Audit, Alton McCoy; Director, Business Affairs, Richard Wertz; Director of Facilities Management and University Architect, Charles G. Jeffcoat; Assistant Director of Administrative Services, Facilities Management, Todd E. Barnette; Librarian for Automated Systems C. J. Cambre, Jr.; Director of Housing Gene Luna; Director, Department of Student Life, Jerry T. Brewer; Chief Executive Assistant to the President J. Lyles Glenn; Director of Presidential Communications and Research Pete F. Mackey; Director of Public Affairs Russell McKinney; representative from President's Office Gail Widner; representative from Media Relations Bond Nickles; representative from University Publications Chris Horn; Baptist Campus Minister Bryant Spivey; representative from South Carolina Department of Education William B. Nesbit; and a member of the press.

Mr. Hubbard called the meeting to order and stated that there were personnel matters with respect to honorary faculty titles, honorary degree candidates, appointments with tenure, and a contractual matter appropriate for Executive Session. He called for a motion to enter Executive Session. Mr. Whittle so moved, and Mr. Wienges seconded the motion. The vote was taken, and the motion carried.

The following persons remained for Executive Session: Dr. Palms, Mr. Stepp, Dr. Greiner, Mr. Finan; Dr. Pruitt; Mr. Parham; Dr. Faulkner; Dr. Stockwell, Mr. Glenn, Mr. McKinney, Ms. Medich, and Ms. Hyatt.

Executive Session

I. PERSONNEL MATTERS

II. CONTRACTUAL MATTERS

Return to Open Session

Chairman Hubbard called the meeting to order and 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.

Mr. Hubbard invited The Reverend Bryant Spivey, a Baptist Campus Minister, to deliver the Invocation. The members of the University family were invited to introduce themselves, and Mr. Nickles introduced the press.

I. APPROVAL OF MINUTES: The following seven sets of minutes had been circulated by mail to the Board for review and were presented for approval:

A. Academic Affairs & Faculty Liaison Committee, December 10, 1996

B. Ad Hoc Committee on Advancement, December 16, 1996

C. Board of Trustees, December 16, 1996

D. Executive Committee, December 17, 1996

E. Intercollegiate Activities Committee, January 30, 1996

F. Ad Hoc Committee on Advancement, January 30, 1996

G. Buildings and Grounds Committee, January 30, 1996

There were no additions, deletions, or corrections to the minutes, and they stood approved a distributed.

II. COMMITTEE REPORTS

A. Executive Committee

(The Honorable William C. Hubbard, reporting)

1. Report of the Meeting of December 17, 1996: Mr. Hubbard reported that the Executive Committee had met via telephone conference call on December 17, 1996 and took the following action:

a. Salary Supplements: Salary supplements in the amount of $10,200 were approved for the Chancellors of the Aiken and Spartanburg campuses. Dr. Alexander's supplement would be drawn from the USC Aiken account within the USC Educational Foundation, and Dr. Stockwell's supplement would be paid by the Carolina Piedmont Foundation.

b. Football Coach's Contract: Amendments were made to Head Football Coach Brad Scott's contract providing a greater incentive for Coach Scott to remain at the University through the year 2002. Mr. Hubbard referred Board members to the minutes of the Executive Committee meeting for additional information on the amendments.

2. Appointment of Vice President for Development: At the meeting of the Executive Committee held earlier this day, the appointment of Mr. Charles Phlegar as Vice President for Development was presented in Executive Session without objection. Mr. Phlegar's appointment was also presented, without objection, in Executive Session to this Board earlier in this meeting. Mr. Hubbard invited Dr. Palms to present Mr. Phlegar's appointment.

Dr. Palms said he recommended to the Board, with great enthusiasm, Mr. Charles Phlegar to hold the position of Vice President for Development. Through his efforts on the Bicentennial Campaign, Mr. Phlegar had proven that he had the focus and the ability to complete the Campaign and to create a new base of giving for Carolina.

Mr. Buyck moved to approve the appointment of Mr. Charles Phlegar as Vice President for Development, and Dr. Floyd seconded the motion. The vote was taken, and the motion carried. Dr. Palms invited Mr. Phlegar to stand and receive the Board's recognition.

3. Modification of Board Policy on Authority to Sign Contracts: At the meeting of the Executive Committee earlier this day, a modification of the policy on the Authority to Sign Contracts was approved. This modification would change the responsibility and signing authority for all Sponsored Program proposals from the System Vice President for Research to the Associate Vice Provost for Sponsored Programs. [See Exhibit A]

Mr. Buyck moved to approve the modification of the policy on the Authority to Sign Contracts, and Mr. Bradley seconded the motion. The vote was taken, and the motion carried.

B. Intercollegiate Activities Committee

(The Honorable Arthur S. Bahnmuller, reporting)

At the January 30th meeting of the Intercollegiate Activities Committee, Dr. McGee provided the names of football recruits who had orally committed to USC. A total of 25 players were permitted in any given year; the higher number of commitments was sought to allow for attrition.

Dr. McGee announced that former Gamecock football star George Rogers had been selected by the National Football Association for induction into the Collegiate Hall of Fame. That ceremony would take place in New York in December, 1997. Chairman Bailey thanked Dr. McGee for his hard work in achieving this honor for George Rogers and the University.

The Second Quarter Financial Statement for the Department of Athletics was thoroughly reviewed. Budget predictions for the fiscal year appeared to be quite accurate. The actual amount realized from annual club seat, suite, and zone seat payments was slightly higher than the projected $1.8 million. Payments had been accelerated on the Athletics Department's Bond Anticipation Notes. The goal was to reduce that debt to $11 million by 1999. Legislation was being sought to increase the Department's bonding capacity to $40 million.

Negotiations were continuing with local governments on the Memorandum of Understanding for the proposed new arena. That Memorandum of Understanding would be presented to the Board for approval at the appropriate time.

The University's faculty representative to the SEC and NCAA, Dr. Susie VanHuss, gave a report on the recent four-day NCAA meeting, including changes which had been made in the rules regulating employment for student athletes. Recent restructuring of the NCAA should give improved influence to the larger Division I institutions, which were greatly outnumbered by smaller schools.

The issue of lack of suitable space for the USC Athletics Hall of Fame was raised. Dr. McGee acknowledged that a permanent home was needed and reported that various options were under consideration.

C. Buildings and Grounds Committee

(The Honorable Mark W. Buyck, Jr., reporting)

Mr. Buyck stated that the Buildings and Grounds Committee had met on January 30 and received several reports and had met again earlier this day. The following items were reported:

- All of the projects were within budget and on schedule. The sole exception was one portion of the South Campus Housing Project, which was two weeks behind schedule.

- A five acre site for the Library Remote Storage Facility had been secured in cooperation with the state. The site was at the State Research Park near the intersection of Farrow Road and I-77. The Library Storage Facility project would be ready to bid later this year.

- In compliance with the established policy approved by the Board of Trustees, the administration approved an increase of $50,000 in the budget of the Baseball/Softball Renovation Project. This increase was necessary to award a contract to the low bidder. It would be funded with Athletics Department fund balances. The total budget would be $550,000. Approvals from Dr. Palms and Mr. Finan had been received for this budget increase.

- The Chairman and several members of the Committee, as well as other individuals interested in the libraries of the University, expressed alarm and concern regarding the condition of the South Caroliniana Library. The administration presented a review of the conditions of the Library including a video tape presentation, as well as plans for its renovation.

The University would continue to make corrections to the facility in a systematic manner to eliminate water penetration and minimize additional damage. The repairs to the structure must be completed in a systematic manner with a process which allowed small areas of the building to be repaired and the monitored.

The total repair to the facility, if completed at once, would cost approximately $750,000. A source of funding for the entire project had not been identified. Mr. Jeffcoat said that groups of the smaller repairs would be performed each year through the Facilities Fund until the building was totally renovated. Careful attention to this matter had been promised by the administration.

- The Committee heard a report on the possibility of relocating the Honors College to DeSaussure College. Physically, DeSaussure and Harper were nearly the same size, but they were different functionally. DeSaussure, which some consider the handsomest building on the Horseshoe, was configured with multiple small offices, while Harper contained some offices plus larger meeting spaces. The report indicated that DeSaussure could be modified to accommodate the administrative functions of the Honors College, but the classroom and other meeting spaces would still need to be located in Flinn Hall. The cost of modifying DeSaussure for the Honors College was approximately $300,000. However, the cost to renovate Harper to accommodate the College of Social Work was over $1 million.

The Committee discussed a more appropriate location for the College of Social Work, which was currently housed in at least six locations, as well as a long-term location for the Honors College.

1. Report on Updating Master Plan: Because considerable progress had been made on the Master Plan development of the campus, an update of the Master Plan had been commissioned. The original planning team of Sasaki Associates and Architects Boudreax, Hultstrand & Carter had been retained to assist with this important task.

2. Wellness/Fitness Center: The Committee heard a recommendation from Mr. David Body of the firm Cannon-Parkin. Mr. Body had an outstanding national reputation with respect to wellness/fitness center projects. This $33 million proposed project would offer social and recreational opportunities for the entire University community that would be comparable, or superior, to those at peer institutions. The major components of the indoor facilities would include basketball gymnasiums, weight exercise rooms, aerobics and multipurpose rooms, a climbing wall, a natatorium, food facilities, and wellness facilities. The outdoor areas could include a recreational pool, sand volleyball courts, lap and social pool, and barbeque pits. Nine sites were under consideration, and three were examined in detail.

Additional information would be presented about site selection, specific sources of funding, needs analysis and refined programmatic data. The project, at the appropriate time, would be submitted to the Architectural Design Review Committee.

At the meeting held on January 30, it was moved to recommend to the full Board approval of the construction of the Wellness/Fitness Center Project based on the concepts presented during the meeting, with a cost not to exceed $33 million. The Committee agreed that the sources of funding would be specified before the presentation to the full Board on February 20.

The Buildings and Grounds Committee met earlier this day and recommended to approve the project to proceed through the state approval process in two stages. The first stage, consisting of A/E only (through design/development), would be established with a budget of $700,000 funded from Institutional Bonds. When the design was more finalized and a site determined, the second stage of the project would proceed. The final project including site, budget, and sources of funds would be approved by the Buildings and Grounds Committee and by the full Board. The Architectural Design Review Committee would also approve the project at the appropriate point in the process.

On behalf of the Buildings and Grounds Committee, Mr. Buyck moved approval of the design phase for the construction of a wellness-fitness center with a budget of $700,000 funded from Institutional Bonds based on the actions of the Buildings and Grounds Committee on January 30 and earlier this day. Mr. Staton seconded the motion. The vote was taken, and the motion carried.

3. Greek Housing: At the meeting of the Committee held earlier this day, the administration reaffirmed its commitment to expediting the Greek Housing project. A report would be received at the next meeting of the Committee on that process.

4. McMaster Project Increase: The Master Plan project to consolidate the art programs at McMaster College was originally approved by the Board in February 1996 with a budget of $8.1 million.

The University was required to provide additional seismic engineering and additional lead paint and asbestos abatement work than was originally anticipated. A request was made to increase the project budget by nine and one quarter percent ($750,000). The total project budget would become $8.85 million. The increase would be funded with Institutional Bonds, and a portion of it may be returned to the University from the Asbestos Abatement Trust Fund.

On behalf of the Buildings and Ground Committee, Mr. Buyck moved to increase the established budget of the McMaster Project by $750,000 for a total project budget of $8,850,000 to be funded with $4,450,000 from Institutional Bonds, $700,000 from Utility Reserve Funds, and $3,700,000 from Institutional Capital Project Funds. Mr. Gregg seconded the motion. The vote was taken, and the motion carried.

5. Lancaster Classroom Auditorium Building: This project had an original budget of $2.7 million in the 1992 Bond Bill. The architects had completed the preliminary programming and schematic design for this project. The budget must be increased before the final design, bidding, and construction of the facility could continue.

The Lancaster campus was extremely successful with its campaign to raise funds for this project and had received pledges in excess of $6 million. The Board and the Committee offered thanks to Mr. Bradley for his efforts in this capital campaign. The increase would raise the budget for the project to the level needed for construction, with the entire increase of $4,920,000 to be funded with private money.

On behalf of the Buildings and Grounds Committee, Mr. Buyck moved approval of the increase to the established budget of the Lancaster Auditorium/Classroom Building Project by $4,920,000 for a total project budget of $7,620,000 to be funded with $2,700,000 from Capital Improvement Bonds and $4,920,000 from private funds. Mr. Bradley seconded the motion.

Mr. Bradley said that the credit and thanks for the success of this capital campaign should go to Dean Joseph Pappin and Mr. Charles A. Bundy, President of the Springs and Close Foundations. The vote was taken, and the motion carried.

6. 1997-98 Annual Permanent Improvement Plan (APIP) Project Over $250,000: School of Medicine Building No. 3 Refurbishment: This 1997-98 APIP Project was for Building No. 3 on the School of Medicine campus. The facility would be used for instruction, laboratories, and faculty offices, and would be the only project over $250,000 submitted in the 1997-98 Annual Permanent Improvement Plan.

On behalf of the Buildings and Grounds Committee, Mr. Buyck moved approval of the 1997-98 APIP Project to refurbish the School of Medicine Building No. 3 with a total budget of $750,000 to be funded with $597,600 from School of Medicine Appropriated State Funds and $147,400 from School of Medicine Institutional Capital Project Funds. Mr. Miller seconded the motion. The vote was taken, and the motion carried.

Mr. Buyck asked that a scheduled meeting of the Buildings and Grounds Committee be held at the School of Medicine so the Committee could become familiar with the facilities there.

7. Housing Code Compliance Project Increase: The scope of the Housing Code Compliance Project was continually increased as funding became avail-able. This request would upgrade housing facilities with better fire alarm systems and exitways. Fire alarm systems had been installed in the Bates Area, Columbia Hall, Preston Residential College, the Women's Quad, and most of the Horseshoe residence halls. Alarms would be installed in all facilities by the year 2000.

On behalf of the Buildings and Grounds Committee, Mr. Buyck moved approval of expanding the scope and increasing the established budget of the Housing Code Compliance Project by $2,600,000 for a total project budget of $4,800,000 to be funded with $4,400,000 from Housing Funds and $400,000 from Renovation Reserve and Auxiliary Funds. Mr. Foster seconded the motion. The vote was taken, and the motion carried.

8. Spartanburg Rifle Ridge Apartments: This item had not been listed on the Committee agenda and consent by three fourths of the Committee was obtained before the matter was considered.

The purchase of these apartments at USC Spartanburg would not change the mission of the campus. This was an opportunity to address concerns for students' safety and security as well as integrating the campus housing into the life of the Spartanburg campus. The administration had negotiated with the owners of Rifle Ridge Apartments for its purchase. A price of $3,875,000 had been determined after appraisals and negotiations. Bonding at $4.5 million for twenty years would fund the purchase, as well as build a substantial reserve to manage maintenance, repairs, and renovations.

On behalf of the Buildings and grounds Committee, Mr. Buyck moved approval of the purchase of the Rifle Ridge Apartments at USC Spartanburg for $3,875,000 with a budget of $4.5 million to be funded with Revenue Bonds payable from the Rifle Ridge residence hall revenues. This project budget would provide funds for the property acquisition and necessary capital improvements. Mr. Lister seconded the motion. The vote was taken, and the motion carried.

9. South Campus Housing - East Quadrangle: The Committee heard a status report on the proposed South Campus East Quadrangle Housing. Various room and suite arrangements were developed to maximize the site and provide excellent housing programs. The result was a project budget recommendation of $19.8 million to produce 456 beds.

Although the project must be reviewed by the Architectural Design Review Committee, the Committee members emphasized that the new housing should mirror the current housing construction and not attempt to be something new or complementary.

The preliminary feasibility study indicated that these buildings should accommodate a mixture of three types of units: 1) the apartment type unit with each unit having a living room, kitchen area, and four private, single bedrooms; 2) units with two double bedrooms to accommodate four people in the same type of apartment setting; and 3) single bedroom, studio units.

On behalf of the Buildings and Grounds Committee, Mr. Buyck moved approval of the South Campus Housing Project - East Quadrangle Project as presented to build housing for 456 students on the Booker T. Washington site as a cost of $19.8 million to be funded from Revenue Bonds. Mr. Loadholt seconded the motion.

Mr. Gregg asked if this site would conflict with one of the sites considered for the wellness/fitness center. He was informed that this site was not large enough for the center, which was to include various recreational fields.

The vote was taken, and the motion carried.

D. Health Affairs Committee

(The Honorable J. DuPre Miller, reporting)

The Health Affairs Committee met on Friday, February 7, and received several reports.

1. College of Pharmacy: Interim Dean Sadik reported on the new professional degree program initiated in the College of Pharmacy. There were 60 students in the first Pharm.D. class. They would graduate in the year 2000. The B.S. in Pharmacy degree and the incremental Pharm.D. degree were being phased out.

Applications were at an all-time high with 477 students in the College. In December, the College of Pharmacy graduated 27 students with B.S. degrees and nine students with the Pharm.D. degree. It was anticipated that at the May graduation, 35 B.S. degrees and 12 Pharm.D. degrees would be awarded.

Job opportunities for the graduates continued to be excellent. Often students were recruited by employees before graduation. The average starting salary was between $54,000 and $56,000 for students with a B.S. degree. The attrition rate for the professional program was near zero percent; all students in the past 14 years had graduated.

The College offered an outreach distance education program to provide a means for B.S. degree practicing pharmacists to obtain the Pharm.D. degree while continuing to work. There were currently 150 students enrolled in this program.

The College of Pharmacy benefited from excellent collaboration with the Medical University of South Carolina, the USC School of Medicine, the College of Nursing, and other health related colleges.

The Center for Outcomes Research and Evaluation (CORE) had proven to be an excellent source of funding since its inception five years ago. It had attracted in excess of $1.5 million.

A director of development would be employed by March 1, 1997, to coordinate fundraising activity, and the College was optimistic that it could raise $2 million in the Bicentennial Campaign.

2. College of Nursing: Dean Parsons gave a report on the College of Nursing and outlined four goals: 1) achieve recognition for excellence in nursing education; 2) develop nurse-managed centers to respond to changing health care markets; 3) achieve recognition as one of the top 10 research programs in the Southeast; and 4) achieve an endowment of $3 million as part of the Bicentennial Campaign.

In 1991-92, 62 students graduated with 100 percent passing the licensure examination. The number of students increased each year with 81 graduating in 1995-96. Approximately 95 percent of the undergraduates and 80 percent of the master's degree program students were from South Carolina.

The College of Nursing projected the possibility of an over supply of registered nurses (those with associate and baccalaureate degrees) in the year 2000. Projections also predicted a need for fewer associate degree graduates and more baccalaureate degree graduates.

This information would be used to direct the emphasis of the College, and the Ph.D. program would be strengthened. Because of the number of baccalaureate graduates and the potential for an over supply of RNs, the College was considering the development of a Nursing Doctorate (ND) program similar to the Pharm.D. degree in the College of Pharmacy. The ND would be a professional practice degree.

The Women's Healthcare Center opened November 17, 1996, with two full time nurse practitioners on site. The Center served as a clinical site for undergraduate and graduate students. Dr. David Keisler, Chair of Family and Preventive Medicine, was the preceptor for the Center. Patient data was computerized and could be sent electronically to Dr. Keisler and other physicians for instant review.

The College aspired to have one of the top ten research programs in the Southeast. The goal was to increase research funding by ten percent each year.

The College also planned to increase endowed funds to $3 million during the Bicentennial Campaign.

3. School of Medicine: Dean Faulkner presented an excellent video tape used by the School of Medicine in the promotion of the School. The tape was produced by the University and was well received by the Committee.

E. Academic Affairs and Faculty Liaison Committee

(The Honorable Helen C. Harvey, reporting)

1. Honorary Faculty Titles: The following honorary faculty titles had received all academic and administrative approvals and were presented, without objection, in Executive Session to the Academic Affairs and Faculty Liaison Committee on February 7 and to this Board earlier in this meeting.

a) Ms. Kathryn Green Pearson, Assistant Professor in the College of Nursing, would be awarded the title Emerita Professor upon her retirement May 15, 1997.

b) Dr. Arthur J. Van Alstyne, Associate Professor of Geography in the Department of Sociology, USC Aiken, would be awarded the title Emeritus Professor upon his retirement August 4, 1997.

On behalf of the Committee, Mrs. Harvey moved approval of the requested honorary faculty titles. Mr. Bradley seconded the motion. The vote was taken, and the motion carried.

2. Appointments with Tenure: The following recommendations for tenure had received all academic and administrative approvals and were presented, without objection, in Executive Session to the Academic Affairs and Faculty Liaison Committee on February 7 and to this Board earlier in this meeting.

a) Dr. August E. Grant would be appointed with tenure at the rank of Associate Professor in the College of Journalism and Mass Communications.

On behalf of the Committee, Mrs. Harvey moved approval of the appointment with tenure of Dr. August E. Grant at the rank of Associate Professor in the College of Journalism and Mass Communications. Mr. Osborne seconded the motion. The vote was taken, and the motion carried.

b) Dr. M. Asif Khan would be appointed with tenure at the rank of Professor in the College of Engineering.

On behalf of the Committee, Mrs. Harvey moved approval of the appointment with tenure of Dr. M. Asif Khan at the rank of Professor in the College of Engineering. Mr. Staton seconded the motion. The vote was taken, and the motion carried.

3. Name Change for the Center for Real Estate and Urban Economic Studies, College of Business Administration: The College of Business Administration had requested permission to change the name of the Center for Real Estate and Urban Economic Studies to the Center for Applied Real Estate Education and Research. The Center conducted activities in four areas related to the real estate industry in South Carolina: research, education, outreach, and publications. The proposed name would better describe the Center's goals and mission.

On behalf of the Committee, Mrs. Harvey moved approval of the requested name change; Mr. Staton seconded the motion. The vote was taken, and the motion carried.

4. Name Change for the Center for Industry Policy and Strategy, College of Business Administration: The College of Business Administration had requested permission to change the name of the Center for Industry Policy and Strategy to the Center for Enterprise Development. The renamed center would focus its efforts on enhancing research and outreach activities designed to promote economic development in South Carolina.

On behalf of the Committee, Mrs. Harvey moved approval of the requested name change. Mr. Gregg seconded the motion. The vote was taken, and the motion carried.

5. Program Proposals: The following three program proposals and modifications had received all academic and administrative approvals and were approved by the Committee for recommendation to the full Board:

a) New Program: Bachelor of Arts Degree in Communications, USC Aiken: This proposal was for a broad based liberal arts degree in communications. The graduates would obtain a thorough understanding of fundamental communication processes across a variety of contexts. Graduates would be prepared to enter a number of diverse employment fields. Faculty and resources were already in place, and no additional costs were anticipated.

On behalf of the Committee, Mrs. Harvey moved approval of the establishment of the Bachelor of Arts Degree in Communications at USC Aiken. Mr. Loadholt seconded the motion. The vote was taken, and the motion carried.

b) New Program: Bachelor of Science in Management of Technology, USC Spartanburg: USC Spartanburg was proposing a baccalaureate program for persons holding the Engineering Technology Associate Degree. This was developed in close coordination with the Greenville Technical College and would be a model program combining existing resources from the two institutions.

On behalf of the Committee, Mrs. Harvey moved approval of the establishment of the Bachelor of Science in Management of Technology at USC Spartanburg. Mr. Lister seconded the motion. The vote was taken, and the motion carried.

c) Modification: Post-Master's Certificate of Graduate Study in Advanced Practice Nursing, College of Nursing, USC Columbia: This was a request to rename the existing program which prepared advanced practice nurses and to add two additional nurse practitioner emphasis areas: the acute care nurse practitioner and the community psychiatric mental health nurse practitioner.

On behalf of the Committee, Mrs. Harvey moved approval of the modification of the Post Master's Certificate of Graduate Study in Advanced Practice Nursing, College of Nursing, USC Columbia. Mr. Bahnmuller seconded the motion. The vote was taken, and the motion carried.

6. Changes to the Columbia Campus Faculty Manual: The following three changes to the Columbia Campus Faculty Manual had been approved by the Columbia Campus Faculty Senate. The Office of the General Counsel had reviewed the proposed changes and determined that they had received all appropriate approvals and were legally sufficient.

a) Page 11, Under the Heading: Faculty Committees; First Paragraph:

REPLACE: Every committee shall meet at least four times per year.

WITH: Every committee shall meet at least once per year and whenever new members are elected or appointed. Those committees that have agenda items shall meet as often as necessary to complete their business.

b) Health Professional Undergraduate Advisement Committee:

Reference to this committee would be deleted. This function had been re-established in an area outside of faculty governance.

c) Page 18, New Description of Duties Replaces Current Entry for Bookstore Committee:

This committee serves to mediate any disputes or problems with the local bookstores whose primary purpose is to serve the university community. Faculty members or bookstores with problems should contact the chair of this committee. The committee should also report any major problems to the Faculty Senate with recommendations. The committee is composed of six members appointed by the Chair of the Senate. The members shall serve terms of three years, with two members appointed annually.

On behalf of the Committee, Mrs. Harvey moved approval of the three requested changes to the USC Columbia Faculty Manual. Mr. Miller seconded the motion. The vote was taken, and the motion carried.

F. Ad Hoc Committee on Advancement

(The Honorable Mack I. Whittle, Jr., reporting)

1. Status of Advancement: At its meeting on January 30, 1997 the Committee heard a report on the status of advancement. For every dollar raised last year, the University spent 12 cents; it was estimated that it would cost eight cents per dollar next year. The national average was 16 cents per dollar.

The fundraising goal for the current fiscal year was $40 million. By the end of December, 1996, the total raised was $17.6 million. This meant $22.4 million must be raised before June 30, 1997, and the current projections for January to June 1997 estimated that $37 million would be raised in that six month period. In an update received this morning, over $10 million had been raised in January 1997.

2. Bicentennial Campaign: At the end of December 1996, the Bicentennial Campaign had reached $51.3 million ($61.3 million through January 1997). The administration was hopeful that this amount would increase to $75 million by July 1, 1997, and $125 million by the actual "kickoff" date of April 30, 1998.

The internal goal was to raise $100 million of endowment, which, when added to the existing endowment, would bring the University's total endowment to over $200 million.

The Campaign co-chairs, hopefully a prominent South Carolinian and a person of national prominence, should be in place by May 1. The co-chairs would then appoint the Executive Committee. "Principal Gift" co-chairs would begin to focus on the top 50 gifts, and Dr. Palms would direct attention to the top 10 gifts of $5 million and above.

The University Vision Statement was being finalized and printed, and the Campaign Case Statement would be ready March 1. The Leadership Dinner was scheduled for May 1. That would be an important event for the members of the Board and all volunteers to attend. It would serve as an internal "kickoff" for more than 400 volunteers and would add momentum to the Campaign.

3. Facilities Naming Opportunities, Policies and Procedures: In addition to the Ad Hoc Committee on Advancement, this policy had been throughly reviewed by the Buildings and Grounds Committee, the Academic Affairs and Faculty Liaison Committee, and the Intercollegiate Activities Committee. Comments and suggestions from the members of those committees were incorporated into the draft policy distributed with the materials for this meeting.

Dr. Palms, in the spirit of the proposed policy, appointed the following people to serve on the Gift Naming Opportunities Committee: Board of Trustees members: William C. Hubbard and Mark W. Buyck, Jr.; Secretary Thomas L. Stepp; Development Office: Harriette Wunder and Cantey Heath; Office of Business and Finance: Charles Jeffcoat; Office of the Provost: Donald Greiner; President's Office: J. Lyles Glenn; and Office of Public Affairs: Russell McKinney.

On behalf of the Ad Hoc Committee on Advancement, Mr. Whittle moved approval of the policy as distributed to the Board of Trustees. [See Exhibit B] Mr. Wienges seconded the motion. The vote was taken, and the motion carried.

III. CHAIRMAN'S REPORT

Chairman Hubbard gave the following report:

First, I'd like to thank our Chancellors: Dr. Stockwell and Dr. Alexander. I'd like to thank our Deans from our Regional Campuses: Mr. Pappin, Mr. Carpenter, Mr. Edwards, Mr. Plyler, and Mr. Clayton. I'd like to thank all of our Deans on the Columbia Campus. I'd like to thank our senior staff. I'd like to especially thank Dr. Greiner for the terrific job he is doing in his position as Interim Provost--a difficult job under any circumstances--a particularly difficult job, I would imagine, on an interim basis. I'd like to thank Dr. Palms, Mr. Stepp, Ms. Jenkins, Ms. Medich, Ms. Hyatt, and every member of this Board. I'd like to thank you all because I think that all of you are helping take Carolina to the next level.

You can feel the energy on this campus and throughout the System emanating from higher standards for admission, higher standards for tenure and promotion, new buildings that put students first, a capital campaign that will fund the excellence we all seek, a basketball team that is ranked ninth in the nation, and seven other intercollegiate teams that at this moment in time are ranked in the top 25 nationally--just the sort of excellence across the board that Dr. McGee promised when he became our Athletics Director.

Our plans, Dr. Floyd, are coming to fruition, our aspirations are becoming a reality. Yet, we are not where we all want to be. We never will be, because our goal should always exceed our grasp. But it is in the forward progress that new energy is unleased and new opportunities present themselves.

Our immediate challenge is to better make the case for this University and for higher education. We must make it known that South Carolina appropriates $1,400 less per student per year for higher education than other Southeastern states. We must make it known that fewer state dollars go for higher education in South Carolina than went to higher education in South Carolina in 1989-1990. And we must make it known that over the past two years Georgia has increased funding for higher education by 16 percent and Florida by 19 percent.

Tell everyone you see and repeat the message that we can do better. I'm encouraged by what I am hearing from the leaders in the Legislature this year. I think the atmosphere is changing; I think some positive developments are occurring. Get behind your legislator, get behind your senator, state the message, stay on message, and keep repeating the message.

I look forward to being with all of you at our Retreat and Planning Conference in Greenville in March. We have made exciting plans for a meeting that will bring together the three University Boards, the administration, many upstate business leaders, and upstate policy makers. I am grateful to the Secretary, Mr. Whittle, Mr. Lister, Mr. McLellan, Paul Goldsmith and Joe Anderson for planning what will be a great meeting March 20 through 22 in Greenville. We anticipate great plans and progress to come from that meeting, and I thank all of you for your hard work and for your leadership.

IV. PRESIDENT'S REPORT

Dr. Palms said that the actions taken by the Board at this meeting reflected a tremendous amount of work on the part of the Trustees. This was one of the busiest times in the life of the University. It was the middle of Black History month; the University was getting ready for Women's History month; a University Interfaith Breakfast would take place next week, a first for this campus.

The death of James Dickey was a great loss for the University. Pat Conroy spoke at the memorial service which was attended by 700 people. James Dickey was a pre-eminent American living poet and he would be very, very difficult to replace.

A number of academic searches were in progress, the most important one being the Provost search. Dr. Palms said he was given four names by the search committee, and he was finalizing the process. He said that Dr. Greiner was doing an excellent job as Interim Provost, but it was important to move ahead with an appointment.

There was reason for optimism at the news coming from the Legislature, particularly the House. The budget was still very tight, and the state had tremendous needs. But it was hoped that there would be additional funds for the programmatic needs of the University. The first priority was faculty and staff raises fully funded by the Legislature. Particularly on the Columbia Campus, outside pressure was felt in competition for the very best persons. It was appropriate that faculty and staff on all of the campuses have sufficient incomes to offset the cost of living and to grow and develop professionally. The potential of a Bond Bill was encouraging; it appeared there would be a Bond Bill containing $30 million for Carolina, with $15 million for the Columbia campus and $13 million for the Regional campuses. The budget also included $5 million to complete the Graduate Science Building and $10 million for the new arena.

Dr. Palms commended Dr. Floyd for his work on the Commission on Higher Education (CHE). There had been a tremendous effort in defining the performance outcome parameters and how they would best serve the three kinds of institutions within the University: the Regional campuses, the two comprehensive teaching campuses, and the Columbia campus. Eventually the total budget would be decided by the performance measures. South Carolina was the first state which was trying to do this in a comprehensive way. It was creating a lot of anxiety and would be bureaucratically burdensome on the University, but it was important to try to make it work.

Dr. Palms commended Dr. Alexander for his work as the president of the Council of Presidents this year. He had taken a lead role in the work on establishing performance outcome parameters. The private university presidents were also cooperating on this; their institutions would be affected by the funds available for scholarships.

USC had 700 more freshmen enrolled for next year over the number last year at this time. The applicant pool on the Columbia campus was up about ten percent, and the SAT scores were up over ten percent. The retention for this semester was higher than it was last year; therefore, overall enrollment was stronger this year. The University continued to attract the best students in South Carolina.

The Presidential Council on Economic Development was recently formed and had its first meeting. A number of colleges, programs, institutes, and centers were involved with economic development, but there has been no one point of initial contact. The Council, headed by Doug Dobson, would serve that need.

Research was extremely important to the University. It was directly involved with faculty development; good research and teaching were closely integrated. An announcement would be made in a few days singling out the University for national recognition in integrating faculty development, research and scholarship, and a commitment to teaching.

Last year the faculty on all of the campuses wrote a total of 1,400 proposals for competitive research. In the past five years the University had gone from around $40 million a year to almost $80 million this year in research funding.

Dr. Palms invited Dr. Torr to present information on the University's efforts in the area of research.

Dr. Torr said that the overriding goal in Dr. Palms' Vision Statement for the University was to focus the attention of everyone at the University in becoming eligible, over the next half decade, for membership in the Association of American Universities (AAU). South Carolina was the only state in the Southeast which did not have at least one university in that set of top 60 institutions. The Vision Statement also contained a goal of reaching a level of research funding of $140 million.

Dr. Torr then went on to show where the University was in terms of the goal, and reviewed the research funding by college. The information presented at the meeting is maintained in the permanent meeting file held by the Board Office.

Research funding from 1982 through 1996 had grown from just under $17 million a year in 1981-82 to $77 million a year in 1995-96, a growth rate of 350 percent in a fifteen year period. Unfortunately, that growth rate was not enough to take the University to AAU membership. If federal funding for research did not change over the next five years and the University was able to continue what it had been doing, by the year 2001 the base level of funding for research, service, and training would be $100 million, or $40 million short of the goal. The $140 million would have to be brought in every year.

In a listing of the top 95 institutions, in terms of their funding for research, service, and training for 1995, the University of South Carolina was number 92. The University would need to be about number 70 in order to become eligible for AAU membership; it had risen 17 places in the research ranking in the past two years. A new ranking was due to be published in February 1998. The target was to rise 4 or 5 positions a year at a time when federal and state funding for research and development was dwindling.

Dr. Torr reviewed the research funding levels for the College of Science and Mathematics which improved by about ten percent a year over a nine year period, College of Engineering - 44 percent a year, College of Social Work - 100 percent a year, College of Pharmacy - 22 percent a year, College of Liberal Arts - 4 percent a year, College of Nursing - 10 percent a year. The College of Business Administration lost research funding at the rate of 2.6 percent a year. The School of Medicine has a 4 percent a year growth trend, School of Public Health - 30 percent a year. These figures included total funding for research, training, and service in the form of grants or contracts.

To achieve AAU membership, the University must first achieve Research I ranking by the Carnegie Institution. For that ranking, only federal funding directly to a university for research was considered. USC was also ranked 92 on the listing of federal research dollars. The next year in which Carnegie Institution rankings would be listed was not announced in advance; it was anticipated that it would be 1999. Also the threshold for Research I status was not announced in advance.

The part of the federal budget from which research was funded was constantly shrinking. The federal agencies which provide research funding had begun to decrease their research budgets. However, Dr. Torr said that with the right kind of effort, the University should be able to meet its goal for research funding.

Dr. Palms said that achieving AAU membership was the single most important thing the University could do for the state of South Carolina. The University now had a third foundation: the South Carolina Research Institute. It was hoped that it would be able to hire staff to engage in research on a full time basis. These persons would do some teaching, but they would not be full time faculty. The University must grow in state funding to retain its outstanding faculty. This was necessary to stay competitive in the league of academic institutions in which the University wanted to participate. The University had a budget of nearly $500 million, but it had an impact of $1.5 billion on the economy.

Dr. Floyd asked for a synopsis of the level of state funding for Southeastern institutions. Mr. Hubbard said that information had been distributed about a year ago. It would be updated and distributed to all the Board members. Mr. Bahnmuller suggested that the information should also be provided to the members of the Legislature, as well as the Governor. Mr. Whittle said the retreat would offer an excellent opportunity to provide funding priority needs to all three Boards.

V. CERTIFICATE TO PATRICK WRIGHT

Mr. Stepp read the text of a certificate of appreciation to outgoing Student Body President Patrick Wright:

UNIVERSITY OF SOUTH CAROLINA

Presented to

Patrick La'mon Wright

in appreciation

for distinguished service rendered

in the cause of higher education

in South Carolina

and to the University of South Carolina

as the student representative to the Board of Trustees

from March 1996 to February 1997

Presented this 20th day of February 1997

Mr. Wright said that the past year had been a good experience for him, and he had had a number of opportunities to help the University, having been at Carolina for seven years as an undergrad and in Law School. It was a great experience, and he was happy to have the opportunity to get to know the Board members and to try to advance the student body and the University. A lot of progress was made, and he was happy to see admission standards increasing. Mr. Hubbard thanked Mr. Wright for his efforts as Student Body President and as the student representative to the Board of Trustees.

There being no further business for the Board, Mr. Hubbard called for a motion to adjourn. Mr. Bahnmuller so moved, and Mr. Adams seconded. The vote was taken, and the motion carried. The meeting adjourned at 3:08 p.m.

Respectfully submitted,

Thomas L. Stepp

Secretary

Exhibit A

POLICY: AUTHORITY TO SIGN CONTRACTS

1. All previous delegations or appointments of authority to sign contracts, checks, vouchers, and agreements, or to negotiate and accept contracts and grants binding upon the University are rescinded, and all previous resolutions or motions delegating such authority are revoked, provided, it is understood that all contracts executed pursuant to this policy shall be within the scope of existing Board Policy and including all procedures established by Board policy.

2. The Secretary of the Board of Trustees is authorized to sign Board documents and resolutions for and on behalf of the Board of Trustees; and such Assistant Secretaries as may from time to time be designated in writing by the Secretary of the Board are authorized to perform the same duties in the absence of the Secretary or at his discretion. (All designations of Assistant Secretaries heretofore made by the Board are rescinded).

3. The President of the University and the Secretary of the Board of Trustees are delegated authority to sign contracts and agreements which are binding upon the University, and no contract or agreement shall become binding upon the University unless such contract or agreement shall have the signature of the President or the Secretary of the Board of Trustees affixed thereto or except as set forth below:

(a) the Secretary of the Board of Trustees is authorized to appoint in writing an Assistant Secretary to perform this duty in the absence of the Secretary or at his discretion;

(b) the Secretary of the Board of Trustees is authorized to delegate to the Chancellors of the four-year campuses and the Chancellor for University Campuses and Continuing Education the authority to sign contracts and agreements which do not exceed $25,000 excepting sponsored research grants and contracts and personnel agreements;

(c) the Associate Vice Provost for Sponsored Programs shall have the response-bailed to review and evaluate all sponsored program proposals, awards, contracts, accountability statements, and agency approval requests, and the authority (including the authority to delegate same to an Associate Director) to sign such documents on behalf of the University of South Carolina system;

(d) the USC-Columbia Athletic Director shall have the authority to sign agree-ments engaging the University of South Carolina to participate in intercollegiate athletic contests provided that a duplicate original of such athletic contest agreements shall be deposited in the System Legal Department not less than fifteen days from the date of execution thereof;

(e) the Director of Purchasing shall have the sole authority to sign official University of South Carolina purchase orders; and

(f) in addition to the signature of the President or the Secretary, all contracts with a total value in excess of $250,000 shall require the approval of a majority of the Executive Committee of the Board of Trustees.

4. Special ventures, exchanges, and agreements to provide academic services must be viewed as contracts and any such agreement must be routed through the Executive Vice President for Academic Affairs and Provost for review prior to execution as provided for herein. Except as provided otherwise in this policy, no element of the institution is authorized to prepare contracts and offer the same for acceptance by outside parties without prior review of such contracts in the Office of the Secretary of the Board of Trustees and the System Legal Department.

5. Except as provided otherwise in this policy, authority to sign contracts on behalf of the University is now centralized in the Office of the Secretary of the Board of Trustees with authority to review for approval before contracts are signed. The Office of the Secretary shall maintain a file containing all original contracts and agreements or duplicate originals as the case may be to which the University is a party; provided, however, that the Office of Sponsored Programs and Research may forward a copy of the final "Proposal/Award Processing Form" to this central repository on a timely basis. The Secretary of the Board of Trustees shall have the authority and duty to review and evaluate all aspects and implications of University contracting, reporting to and advising the President and the Board of Trustees thereon.

The Academic Affairs and Faculty Liaison Committee of the University of South Carolina Board of Trustees shall review in advance all recommendations relating to the naming of University academic units and endowed funds. In each category below, dollar figures represent the minimum amounts needed for endowments in varioussized programs. The larger number is not a cap; it is a minimum figure for a larger or more comprehensive program.

in cases where a gift, either inter vivos or testamentary, has been accepted by the Board for the construction of a building, part of a building, creation of an outdoor space, or other facility and the terms of the gift require or request that a particular name be used.

Finally, the President and the Board of Trustees retain the right to approve or disapprove any naming opportunity in serving the best interests of the University of South Carolina.