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 Executive Committee of the University of South Carolina Board of Trustees met on Friday, September 13, 2002, at 2:00 p.m. in the Carolina Plaza Board Room.

Members present were: Mr. Mack I. Whittle, Jr., Chairman; Mr. Herbert C. Adams, Vice Chairman; Mr. James Bradley; Dr. C. Edward Floyd; Mr. William C. Hubbard; and Mr. Michael J. Mungo. Other Trustees present were: Mr. Arthur S. Bahnmuller; Mr. Alexander English; Mr. Samuel R. Foster, II; Mrs. Helen C. Harvey; Mr. Toney J. Lister; Mr. Miles Loadholt; Ms. Darla D. Moore; Mr. James A. Shuford, III; Mr. John C. von Lehe, Jr.; and Mr. Othniel H. Wienges, Jr.

Others present were: President Andrew A. Sorensen; Secretary Thomas L. Stepp; Executive Vice President for Academic Affairs and Provost Jerome D. Odom; Vice President and Chief Financial Officer Richard W. Kelly; Vice President for Information Technology and Chief Information Officer William F. Hogue; Vice President for Human Resources Jane M. Jameson; Vice President for Student and Alumni Services and Interim Vice President for University Relations Dennis A. Pruitt; Vice Provost and Executive Dean for Regional Campuses and Continuing Education Chris P. Plyler; Dean of USC Lancaster John Catalano; Legal Counsel Walter (Terry) H. Parham; Associate Vice Provost for Regional Campuses and Continuing Education Carolyn A. West; Director of Student Life, Division of Student and Alumni Services, Jerry T. Brewer; Executive Director of the Alumni Association, Division of Student and Alumni Services, Marsha A. Cole; Director of Business Affairs Helen Zeigler; Director of Academic and Student Support Services, Regional Campuses and Continuing Education, David Hunter; President of the Student Government Association Ankit Patel; Director of the Office of Public Affairs Russell McKinney; and a member of the media.

Chairman Whittle called the meeting to order and invited Board members to introduce themselves. Mr. McKinney introduced a member of the media who was in attendance. 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 members of the Committee; and a quorum was present to conduct business.

There were contractual matters which were appropriate for discussion in Executive Session. Chairman Whittle called for a motion to enter Executive Session. Mr. Mungo so moved, and Mr. Bradley seconded the motion. The vote was taken, and the motion carried.

The following persons were invited to remain: Dr. Sorensen, Mr. Stepp, Dr. Odom, Mr. Kelly, Dr. Pruitt, Ms. Jameson, Mr. Parham, Ms. Zeigler, Ms. Cole, Ms. Tweedy, and Ms. Warren.

Return to Open Session

1. Contracts Valued in Excess of $250,000:
   1. Alumni Association Affinity Card Contract: Chairman Whittle called on Mr. Parham who was presenting for Executive Committee approval a proposed license agreement between the University of South Carolina and the Alumni Association. This agreement would permit the Alumni Association to use the University's trademarks and logos in connection with the marketing and promotion of an affinity card. In exchange, the Alumni Association had promised the following financial guarantees to the University:
      • the sum of $200,000 per year;
      • fifty percent of any royalties received by the Alumni Association above the minimum guarantee of the financial institution;
      • the sum of $330,000 per year to the Athletics Department.

      The royalty fees would be paid within 30 days of the execution of the contract. In addition, the Alumni Association would guarantee that the financial institution issuing the affinity card would waive the fees related to University transactions for which this card was used. The Alumni Association would also lease a suite in the new basketball arena and would guarantee that at least $70,000 per year would be spent on advertising, signage, and promotional materials through the Athletics Department. The term of the agreement was seven years.

      Mr. Bradley moved approval of the Alumni Association Affinity Card contract as described in the materials distributed for this meeting. Mr. Mungo seconded the motion. The vote was taken, and the motion carried.

   2. Collegiate Licensing Company Contract: Chairman Whittle called on Mr. Kelly who explained that the University was currently in a contractual agreement with Collegiate Licensing Company, which terminated September 30, 2002, for the marketing and enforcement of the University's trademarks and licensing. He was recommending for Executive Committee approval a seven-year contract with Collegiate Licensing Company which provided an 85 percent revenue return rate and a guaranteed minimum of $250,000. Mr. Mungo moved approval of the Collegiate Licensing Company contract as described in the materials distributed for this meeting. Mr. Hubbard seconded the motion. The vote was taken, and the motion carried.

   3. Department of Veterans Affairs Contract: Chairman Whittle recognized Mr. Parham who presented for Executive Committee approval a proposed agreement between the College of Pharmacy and the U.S. Department of Veteran Affairs. Under this agreement, the College of Pharmacy would provide clinical pharmacy specialists to work 40 hours per week at the VA Hospital to provide certain healthcare services to patients, students, and staff.

   In exchange for these services, the VA would: (1) allow 36 pharmacy students to be trained in the VA's Primary Care and Clinical Pharmacy Clinics as part of their pharmacy curriculum; and (2) pay the College of Pharmacy for those faculty services received during a one-year period from September 2002 - August 2003 the amount of $72,408. At the option of the Department of Veterans Affairs, the term of the agreement could be extended an additional 4 one-year periods at the following rate: Year Two - $76,560; Year Three - $80,400; Year Four - $84,480; Year Five - $88,800 for a total of $402,648.

   Mr. Bradley moved approval of the Department of Veterans Affairs contract as described in the materials distributed for this meeting. Dr. Floyd seconded the motion. The vote was taken, and the motion carried.

2. Indefinite Delivery Contracts: Mr. Parham stated that he was presenting for approval six indefinite delivery construction contracts between the University and the following companies: (1) C.E. Bourne & Co., Inc.; (2) Watertight Systems, Inc.; (3) Preferred Construction Co., Inc.; (4) Assurance Waterproofing Co., Inc.; (5) Murton Roofing of SC, Inc.; and (6) Roofco, Inc.

   Mr. Parham explained that in order to respond to small construction needs efficiently on this campus, Mr. Kelly, with the approval of the State Engineer, had solicited bids from construction companies which would perform work for the University. The only selection criterion was cost; that is, the University selected these six companies because they had offered the largest discount from the standard construction cost estimates contained in the R.S. Means Repair and Remodeling Cost Data Book (2002 23rd Edition). The percentage of discount offered by each company, which ranged from 35.2 percent to 46 percent, had been indicated in the respective contract.

   Under these contracts, the six companies were "on call" and Mr. Kelly or Mr. Jeffcoat could assign them a project "as needed"; the University was not obligated to use any of these companies.

   Before a project was assigned, a particular company was required to provide a construction estimate which the Facilities Management staff then reviewed; a final construction project cost was subsequently negotiated. If an acceptable cost could not be established, the project was not assigned to that company.

   Mr. Parham noted that the State Engineer's regulations provided that no company could be paid more than $150,000 on any one project, or more than $750,000 during any two-year period, for work performed under an indefinite delivery contract.

   By approving these contracts, the Board of Trustees was not waiving any other applicable required project approvals which included the Procurement Code requirement that projects valued at $150,000 or more be separately bid; the state regulation which required a State Project Approval for any project valued at $100,000 or more; and the required Board of Trustees approval for any project valued at $250,000 or higher.

   Mr. Mungo moved approval of the six Indefinite Delivery Construction Contracts as described in the materials distributed for this meeting with the clear understanding that the records and actions of the Executive Committee on behalf of the Board of Trustees would reflect that each item was a separate and distinct action of the Board, no single item related to the others in legalistic, procedural considerations. Mr. Bradley seconded the motion. The vote was taken, and the motion carried.

   At this time, President Sorensen complimented Mr. Kelly and Mr. Parham and their respective staffs for their outstanding efforts to develop innovative revenue-generating contracts which the Executive Committee had approved earlier during the meeting.

3. USC Beaufort Fee Increase: Chairman Whittle called on Dr. Plyler who initially stated that since 1983 USC Aiken had offered a business administration degree with a management specialty at the USC Beaufort campus. Because USC Beaufort had received permission to develop as a senior teaching institution, USC Aiken would not offer this business management degree on the Beaufort campus following the 2003-2004 academic year. No additional students would be accepted into the Aiken program; beginning January 2003, those students in the current program would transition into the Beaufort program.

   In order to equal the Aiken tuition for this program, USC Beaufort was requesting a fee increase for that degree-specific program. This program will be approved by the Commission on Higher Education and will satisfy the SACS (Southern Association of Colleges and Schools) accreditation requirement as a four-year degree granting institution.

   Mr. Mungo moved approval of the USC Beaufort fee increase as described in the materials distributed for this meeting. Mr. Bradley seconded the motion. Secretary Stepp noted that this Executive Committee approval would reflect an action on behalf of the entire Board and would be reported to the Board at the next meeting.

   The vote was taken, and the motion carried.

Since there were no other matters to come before the Committee, Chairman Whittle declared the meeting adjourned at 3:00 p.m.

Respectfully submitted,
Thomas L. Stepp
Secretary