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 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. William W. Doar, Jr.; Mrs. Helen C. Harvey; Mr. Toney J. Lister; Mr. Miles Loadholt; Mr. Robert N. McLellan; Mr. J. DuPre Miller; Mr. Michael J. Mungo; Mr. M. Wayne Staton; Mr. John C. von Lehe Jr.; and Mr. Othniel H. Wienges, Jr. Faculty representative, Professor Eldon D. Wedlock, Jr., was also present. Board members absent were: Mr. Samuel R. Foster, II; Mr. William M. Gregg, II; and Dr. Barbara S. Nielsen.
Others present were: President John M. Palms; Secretary Thomas L. Stepp; Executive Vice President for Academic Affairs and Provost Jerome D. Odom; Vice President for Business and Finance John L. Finan; Vice President for Student and Alumni Services Dennis A. Pruitt; Vice President for Development Charles D. Phlegar; General Counsel Walter (Terry) H. Parham; former Trustee Robert C. Osborne, Jr.; Director of Athletics Michael B. McGee; Chancellor, USC Aiken, Robert E. Alexander; Dean, USC Beaufort, Chris Plyler; Dean, USC Sumter, C. Leslie Carpenter; Dean, USC Union, James W. Edwards; Associate Provost and Dean of the Graduate School Marcia G. Welsh; Vice Provost and Dean for Libraries and Information Systems George D. Terry; Dean, College of Science and Mathematics, Gerard Crawley; Dean, School of Public Health, Harris Pastides; Interim Vice Provost and Executive Dean, Regional Campuses and Continuing Education, Carolyn West; Interim Dean, College of Liberal Arts, Gordon Smith; Interim Dean, College of Education, Frederic Medway; Interim Dean, College of Applied Professions, Patricia G. Moody; Associate Dean for Research and Faculty Development, College of Engineering, Michael Reischman; Vice Chancellor for Academic Affairs, USC Spartanburg, Jane Stephens; Vice Provost for Research Marsha R. Torr; Executive Director, University Foundations, Susie H. VanHuss; Director, USC Educational Foundation, Russell H. Meekins; Controller John H. Campbell; Director, Department of Internal Audit, Alton McCoy; Director of Business Affairs Richard D. Wertz; Chief Executive Assistant to the President J. Lyles Glenn; Director of Public Affairs Russell McKinney; Professor, College of Journalism and Mass Communications, M. Kent Sidel; representative from University Publications Chris Horn; and a member of the media.
Chairman Hubbard called the meeting to order. He 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. The Reverend Mark Blice-Baum, the Lutheran Campus Chaplain, was invited to deliver the invocation. Chairman Hubbard welcomed everyone to the meeting and especially welcomed new Trustees Mr. John C. von Lehe, Jr., from the 9th Judicial Circuit, and Mr. William W. Doar, Jr., President of the Alumni Association. The members of the University family were invited to introduce themselves. Mr. McKinney introduced the representative from the media.
I. Approval of Minutes: The following six sets of minutes were circulated by mail to the Board for review and were presented for approval:
A. Academic Affairs and Faculty Liaison Committee, June 11, 1998
B. Executive Committee, June 11, 1998
C. Executive Committee, June 15, 1998
D. Ad Hoc Committee on Advancement, June 23, 1998
E. Buildings and Grounds Committee, June 23, 1998
F. Board of Trustees, June 23, 1998
There were no additions, deletions, or corrections to the minutes; they stood approved as distributed.
II. Committee Reports
A. Academic Affairs and Faculty Liaison Committee
(The Honorable Helen C. Harvey, reporting)
Honorary Degree Candidate: On behalf of the Academic Affairs and Faculty Liaison Committee, Mrs. Harvey moved to remove from the table the name of Gilbert Melville Grosvenor. Mr. Grosvenor was scheduled to be the speaker at the August 8 Baccalaureate and Master's Commencement Exercises and would receive an honorary degree at that time. Mr. Mungo seconded the motion. The vote was taken, and the motion carried.
B. Executive Committee
(The Honorable William C. Hubbard, reporting)
1. Report of the Meeting of August 7, 1998: The Executive Committee met just prior to this Board meeting and took the following action:
a) Temporary Committee Assignments: According to established procedure, new Board members were given temporary committee appointments matching those of the Board members they replaced. Mr. Doar was appointed to the Fiscal Policy Committee, the Health Affairs Committee, and the Student-Trustee Liaison Committee. Mr. von Lehe was appointed to the Buildings and Grounds Committee, the Health Affairs Committee, and the Intercollegiate Activities Committee. The appointments would remain in effect until the committees were reformulated following the October Board meeting.
b) Salary Supplements: Chancellor Robert Alexander, USC Aiken, was to receive a $10,200 supplement drawn from the USC Aiken account within the USC Educational Foundation. Chancellor John Stockwell, USC Spartanburg, was to receive a $10,200 supplement paid by the Carolina Piedmont Foundation.
c) Contracts in Excess of $250,000: Approval was given for the extension of the Affiliation Agreement for Medical Education between Palmetto Health Alliance and the University of South Carolina through June 30, 2000. Approval was also given for the distribution of appropriated funds in the amount of $850,000 to the Southeast Manufacturing Technology Center.
The Executive Committee approved the following items for recommendation to the full Board:
2. Board of Visitors Appointments
Nominations for At-Large Members
- Out-of-State: Mr. John T. Langston, III, Charlotte, NC, and The Reverend George Bryant Wright, Jr., Marietta, GA.
- In-State: Mr. Luther J. Battiste, III, and Mr. A. Stanley Harpe.
Ratification of Judicial Circuit Appointees
- New Appointments
1st -- Mrs. Connie Coyle
3rd -- Dr. Robert C. Wimberly
4th -- Mr. Lon Wayne Lester
5th -- Ms. Marie-Louise Ramsdale
7th -- Mr. James M. Pickens
8th -- Mrs. Judith Mundy Burns
9th -- Mr. James A. Bell
10th -- Mr. John W. Fields
12th -- Dr. Kevin J. O'Kelly
- Reappointments
2nd -- Mr. James L. Verenes
6th -- Mr. Arthur K. Collier
11th -- Dr. Bartlett J. Witherspoon, Jr.
13th -- Mrs. Mary P. Johnston
15th -- Mrs. Jody S. Carpenter
16th -- Mrs. Carolyn B. Carpenter
Ratification of Presidential Appointees
- New Appointment: Mr. David G. Hodges
- Reappointments: Mr. Stephen K. Benjamin
Mr. Ronald F. Loewen
Mr. Adams moved approval of the appointments to the Board of Visitors, and Mr. Buyck seconded the motion. The vote was taken, and the motion carried.
3. Foundation Investment of Funds: Dr. Palms referred to his letter to the Board of July 31, 1998, which stated the policy regarding implementing legislation passed by the General Assembly earlier this year. The Board was requested to approve the terms and conditions of a loan to the USC Educational Foundation. The recently enacted legislation allowed the University to lend certain funds to its support foundations for the purpose of generating higher yield to provide additional funds for scholarships. The most recent five-year yield for funds on deposit with the State Treasurer was about six percent, while the Educational Foundation averaged twelve percent during the same period. Last year the State Treasurer's yield was 6.9 percent, and the Educational Foundation's yield was 22 percent.
With the Board's approval of the agreement, the appropriate funds would be transferred to the Foundation. The amount available was approximately $22 million, although it could approach $25 to $30 million. The Foundation would use its same investment philosophy and strategy, and the University and Foundation would follow the same fund management approach as in the past. The Foundation would create a loan reserve equal to the yield the funds would have generated had they been on deposit with the State Treasurer last year. This would insure a guaranteed rate of return. The draw schedule in the proposed agreement would fit the University's cash flow needs. Income derived from this investment would be used for scholarships. Dr. Palms then outlined the procedure to be followed. The funds would be transferred following a review by the respective bond counsel for recently issued University bonds. The review was meant to insure that accounts transferred to the Foundation had not been pledged or included with any previous bond issue. If any funds were identified as having been pledged, then such funds would not be transfer-red to the Foundation for investment. The expertise and success of the Foundation personnel, the Foundation's volunteer investment experts, and the retained invest-ment advisors, make this a great opportunity.
Mr. Bradley moved approval of the proposed Foundation investment of funds, and Mr. Mungo seconded the motion. The vote was taken, and the motion carried.
4. Appointment to the Development Foundation Board: Mr. Charlton deSaussure had been nominated to fill Seat XI on the Development Foundation Board. Mr. Buyck moved approval of Mr. deSaussure's appointment to the Development Foundation Board, and Mr. von Lehe seconded the motion. The vote was taken, and the motion carried.
5. Building Name Change: It was requested that the name of the Gregory P.E. Center on the USC Lancaster campus be changed to Gregory Health and Wellness Center. Mr. Bradley moved approval of the requested name change, and Mr. Staton seconded the motion. The vote was taken, and the motion carried.
6. Change in Source of Funding: Mr. Hubbard referred to a memorandum from John Finan which had been distributed to the Board members at this meeting. The memorandum requested a change in the source of funding for the acquisition of 730 Devine Street. The source of funds should be Institutional Funds (Research Grant Indirect Cost Recovery). The funding source had been inadvertently approved for Institutional Bonds. Mr. Mungo moved approval of the requested change in source of funding, and Mr. Bradley seconded the motion. The vote was taken, and the motion carried.
III. Report of the Chairman: Mr. Hubbard said that, on behalf of the Board, he wanted to welcome the two new members of the Board, Mr. Doar and Mr. von Lehe. Mr. Hubbard then deferred to the President for his report.
IV. Report of the President: Dr. Palms welcomed the two new Board members on behalf of the Administration. He then called on the Provost to introduce the new deans on campus, as well as the newly appointed interim deans.
Dr. Odom introduced Dr. Gerard (Gary) Crawley, the Dean of the College of Science and Mathematics. Dr. Crawley is from Australia, received his undergraduate degree in physics with first class honors from Melbourne University, and received his Master's degree with honors from the same University. He then received his Ph.D. in physics from Princeton University. Dr. Crawley came to USC from Michigan State University where he had held a number of positions including assistant professor, associate professor, full professor, chair of the department, Dean of the Graduate School, and Associate Provost for Graduate Studies. Dr. Crawley spent a year as the Division Director of Physics at the National Science Foundation in Washington. Dr. Odom said he was an excellent scientist, having published nearly 150 papers and refereed publications in physics from Michigan State University. Dr. Crawley has held a number of Visiting Professorships around the world. Dr. Odom said he was very pleased to have Dr. Crawley at the University of South Carolina. Dr. Crawley said he was pleased and excited to be joining the University, and he was looking forward to working with the administration, faculty, and students.
Dr. Odom then introduced Dr. Harris Pastides, the new Dean of the School of Public Health. Dr. Pastides is a native of New York City and received his undergraduate degree at the State University in New York at Albany. He holds two master's degrees: one in public health from the Yale Medical School and one in epidemiology from the Yale Graduate School. Dr. Pastides received his Ph.D. from Yale University. He was assistant, associate, and full professor at the University of Massachusetts at Amherst and came to USC after serving there as chair of the Department of Epidemiology and Biostatistics. Dr. Odom said Dr. Pastides was an excellent scientist, having published about 50 publications, about 25 book chapters, and 4 books. He had been a senior Fulbright scholar at the University of Athens in Greece, had given lectures worldwide, and is currently a consultant to the World Health Organization. Dr. Pastides will be joined in Columbia by his wife and two children.
Dr. Pastides said it was a privilege to have been named Dean of USC's School of Public Health, and he was in full concordance with the stated aims of the President and the Provost to take the University to AAU status and to make it a truly excellent national university.
Dr. Odom then introduced four interim deans: Dr. Patricia Moody from the Department of Retailing serving as Interim Dean of the College of Applied Professions; Dr. Frederic Medway from the Department of Psychology serving as Interim Dean of the College of Education; Dr. Gordon Smith from the Department of Government and International Studies serving as Interim Dean of the College of Liberal Arts; and Dr. Carolyn West, Professor of Biology at USC Sumter, as Interim Vice Provost and Executive Dean of Regional Campuses and Continuing Education.
Dr. Palms reported that Mr. Parham was continuing his discussions with Lancaster solicitor John Justice regarding the criminal aspects of the USC Lancaster Graduate Regional Studies matter. As the Board had been informed, the solicitor and one of USC's investigators presented to the grand jury information gathered by the University for possible indictments against Dr. Ed Wade. Dr. Palms said that the day before this meeting the grand jury handed down indictments against Dr. Wade.
One of the University's principal interests remains that of gaining access to Dr. Wade so that he may be asked questions, under oath, about his handling of the program and its overall operations. The University was engaged in discussions with the solicitor and Dr. Wade's attorney concerning the conditions for such an interview. The University continued to seek terms for an interview that would clearly strengthen the University's information but would not interfere with possible criminal investigations against Dr. Wade. The University hoped for a satisfactory conclusion to these discussions.
Dr. Palms stated that the next day was another great commencement day for the University. The honorary degree recipient, Mr. Gilbert Melville Grosvenor, was a man who had probably done more for the understanding of geography in America than anyone else in the last several decades. He was a long-term chairman of the National Geographic Society's Board of Trustees and its Education Foundation. Mr. Grosvenor has had a distinguished career in publishing and advancing science education and in increasing awareness and appreciation of the environment.
For summer commencement exercises 98 Ph.D.s would be awarded, as well as 715 master's degrees, 661 baccalaureate degrees, 94 associate degrees, and 3 law and professional speciality degrees. With those degrees, the University will have awarded a total of 7,464 degrees in the past academic year: 263 doctoral degrees, 2,154 master's degrees, 3,972 baccalaureate degrees, 66 medical degrees, and 243 law degrees. Dr. Palms said the University had announced that private support reached a total of $101.3 million for the year. This was more than 50 percent higher than the previous year. These funds were vital to support outstanding faculty, enhance the library, create scholarships, and move the institution to AAU status. Support for scholarships reached $33.7 million; support for academic programs was enhanced by $53.4 million; funding for faculty development including chairs and professorships reached $3.1 million. The endowment rose from $146 million to $201 million. More than 50,000 alumni gifts were received, 15 of which were $1 million or more. Dr. Palms extended appreciation to Darla Moore, Robert and Janice McNair, and Board members Miles Loadholt and his wife Ann and Helen Harvey and her husband Brantley. Dr. Palms congratulated Dr. McGee because the Department of Athletics had raised a record $9.19 million. Dr. Palms thanked Mr. Phlegar, his team of develop-ment officers, and the volunteer leadership. He joined with the Board in applauding their success.
Dr. Palms added that faculty and staff had pledged over $3 million to the Campaign during last year's Annual Fund. He said the faculty had been aggressive in seeking external funding for their scholarship and research. During the past year, external research support increased by 14 percent for a total of $93 million. The number of proposals had increased by 11 percent, and eight of the University's colleges had met or exceeded their goals. Dr. Palms then highlighted some of the programs which had received funding: 1) $3.7 million for the wide band-gap semiconductor program, followed by an additional $5 million; 2) $3 million for the Center for Water Research; 3) $1 million for the Department of Psychology's study of Children at Risk of Violent Behavior; 4) an additional $1.3 million for the program to design and configure ships for the Navy; and 5) $1.4 million for the College of Criminal Justice program to train Russian police chiefs.
Dr. Palms reported that in the recent edition of U.S. News and World Report, which ranked graduate schools, USC's Department of Government and International Studies was ranked second in the Southeast and nineteenth in the nation for the study of international politics and international studies.
Students would be arriving on campus in a week to begin the fall semester. There were 250 new students in the Honors College, 21 students from the Governor's School for Science and Math, and a record number of National Merit Scholars.
V. Recognition of Mr. Robert C. Osborne, Jr.: Mr. Osborne was invited to come forward for recognition. Mr. Stepp read the following Resolution:
WHEREAS, Robert C. Osborne, Jr., has been president of the University of South Carolina Alumni Association and an ex officio member of the Board of Trustees for two years; and
WHEREAS, Robert C. Osborne, Jr., has served with distinction as a member of the Fiscal Policy Committee, the Health Affairs Committee, the Student-Trustee Liaison Committee, the Ad Hoc Committee on Advancement, and the Architect/Engineering Selection Committee--Ruth Patrick Science Education Center Expansion, USC Aiken; and
WHEREAS, during his tenure as president of the Alumni Association, he was responsible for helping the association better define its unique mission to create an inform-ed, involved body of alumni and worked arduously to achieve improved representa-tion from members of the association in its governance; and
WHEREAS, Mr. Osborne led the search committee that named the new Alumni Association director;
NOW, THEREFORE, BE IT RESOLVED that the Board of Trustees at this time expresses its sincere appreciation of Robert C. Osborne, Jr., for his tenure of dedicated ser-vice to the University and to the cause of higher education in South Carolina as a member of the University of South Carolina Board of Trustees; and
BE IT FURTHER RESOLVED that a copy of this resolution be presented to Robert C. Osborne, Jr., as a token of the high esteem in which he is held.
Mr. Osborne said he missed the June Board meeting, but he wanted to come to this meeting to say what a privilege it had been to serve with the Board. In addition, the opportunity to sit at the same table at which his grandfather sat for so long made it very special. The University had a good Alumni Association and Alumni Council and was extremely fortunate to have Marsha Cole as Director of the Alumni Association. Mr. Osborne said that Dennis Pruitt had been a great help during the past few years, and he knew the organization was in good hands with Bill Doar as the new president. He thanked the members of the Board for the Resolution and for the privilege of being with them for the past two years.
Mr. Hubbard announced that members of the Board were invited to tour the newly renovated Flinn Hall at the conclusion of the meeting.
Mr. Hubbard said there was a matter of receipt of legal advice appropriate for Executive Session and called for a motion. Mr. McLellan so moved, and Mr. Adams seconded. The vote was taken, and the motion carried. Mr. Hubbard stated that at the conclusion of the Executive Session the meeting would be adjourned. The following persons were invited to remain: Dr. Palms, Mr. Stepp, Mr. Parham, Mr. Glenn, Ms. Hyatt, and Ms. Medich.
Executive Session
Receipt of Legal Advice
There being no further matters to come before the Board in Executive Session, Chairman Hubbard declared the meeting adjourned at 3:30 p.m.
Respectfully submitted,
Thomas L. Stepp
Secretary