 | Board of Visitors minutes October 11, 1985 |  |
REPORT BY THE RECTOR ON THE ACTIONS OF THE EXECUTIVE COMMITTEE
- The Rector announced that the following resolutions were adopted by the Executive Committee:
(a) Resolution Pledging Certain Endowment Funds
to Assure Completion of the University of
Virginia Hospitals' Replacement Hospital and
Renovation Project- WHEREAS, pursuant to a resolution adopted by the Board of Visitors of the University of Virginia on October 5, 1984, The Rector and Visitors of the University of Virginia (the "University") has commenced a major replacement and renovation project for the University of Virginia Hospitals (the "Project"), as more particularly described in the Official Statement dated May 30, 1985 relating to $95,386,796 Hospital Revenue Refunding Bonds (Series C) of the University; and
- WHEREAS, a substantial portion of the funds necessary to complete the Project is expected to be derived from moneys not yet available, including appropriations from the Commonwealth of Virginia, fund-raising pledges and money from operations of the Hospital;
- WHEREAS, the Executive Committee of the Board of Visitors, in order to help assure the availability of funds sufficient to complete the Project and to enhance the marketing of the Series C Bonds at reasonable interest rates, has determined that it is in the best interests of the University, its Medical School, and the University of Virginia Hospitals to pledge that portion of the University's current "quasiendowment" dedicated to Hospital and Medical School purposes (the "Pledged Endowment") for such purpose and to the extent hereinafter described; now, therefore,
- BE IT RESOLVED by the Executive Committee of the Board
of Visitors of the University of Virginia:
- Section 1. It is in the best interests of the University, its Medical School, and the University of Virginia Hospitals to pledge the Pledged Endowment as provided herein.
- Section 2. If at any time prior to completion of the Project the amount on deposit to the credit of the Construction Fund (as defined in the Master Resolution adopted by the Executive Committee on November 30, 1984), is not adequate to pay costs of the Project then due and the University has not theretofore provided the full amount of its scheduled equity contribution, the University will expend the income and, if necessary, the principal of the Pledged Endowment to remedy any shortfall in such scheduled equity contribution.
- Such obligation shall terminate upon the earlier of completion of the Project or the full funding of the University's scheduled equity contribution.
- Section 3. The University covenants that it will not reduce voluntarily the value of the Pledged Endowment to less than $20,000,000 prior to the termination date; provided, however, that the University shall not be obligated to remedy any reduction below $20,000,000 resulting from a decline in the market value of investments.
- Section 4. When the amount of the University's scheduled but unpaid equity contribution is reduced to $20,000,000, the pledge of the Pledged Endowment shall thereafter be reduced on a dollar-for-dollar basis by each equity contribution thereafter deposited to the Construction Fund.
- Section 5. The pledge of Pledged Endowment shall not in any way secure the payment of principal of or interest on the Series C Bonds, and, prior to completion of the Project, the University may use the income earned on the Pledged Endowment not then needed to fund the equity contribution and any principal amount of the Pledged Endowment in excess of $20,000,000 for any purpose of the University.
- Section 6. This resolution shall take effect immediately upon its passage.
(b) Authorization for the Vice President for
Business and Finance to Enter Into a Contract
with the Alumni Association Relative to Real
Estate on Route 29 North- (a) RESOLVED that the Vice President for Business and
Finance be, and he hereby is, authorized to enter into a
contract with the Alumni Association of the University of
Virginia which should, among other things, provide for:
- (1) The exercise, by the Alumni Association, of the option, dated as of May 26, 1983, between the Alumni Association and Woodbrier Associates Limited Partnership, HWKG Corporation, Wendell W. Wood, individually and as attorney-in-fact for Charles C. Heinrich and Geraldine Heinrich, and Marlene C. Wood, wife of Wendell W. Wood, covering the real estate situated in the County of Albemarle, Virginia, located South of the North Fork of the Rivanna River, West of Route 29 North, and East of Route 606, which contains approximately 191 acres;
- (2) A loan by the University to the Alumni Association of $1,118,000 to cover the cost of acquiring the property;
- (3) Examination of title by the Alumni Association and approval of any objections to title by the University;
- (4) The closing of the purchase by the Alumni Association; and
- (5) The agreement by the Alumni Association to convey the property upon the request of the University to the University, its designees or assigns.
- (b) RESOLVED FURTHER that the University lend $1,118,000, interest-free, to the Alumni Association of the University of Virginia for use by the Alumni Association to accomplish the purchase and acquisition of the above-described property.
- (c) RESOLVED FURTHER that the University be, and it hereby is, authorized to reimburse the Alumni Association for expenses incurred by it in the acquisition and management of the property.
- (d) RESOLVED FURTHER that the Vice President for Business and Finance be, and he hereby is, authorized to execute the contract between the University and the Alumni Association and to instruct the Alumni Association to exercise the option.
(c) Investment Guidelines for the Consolidated
Endowment Fund- RESOLVED by the Executive Committee of the Board of Visitors of the University of Virginia that the investment guidelines for the Consolidated Endowment Fund be amended to permit international investments of up to 10% of the market value of the portfolio and to restrict the minimum average maturity of the bond portfolio to five years as provided in Attachment B.
(d) Authorization for Vice President for Business
and Finance to Reallocate Endowment Funds- RESOLVED by the Executive Committee of the Board
of Visitors of the University of Virginia that the Vice
President for Business and Finance is authorized prior to
June 30, 1985, to reallocate endowment funds as follows:
Brundage Story & Rose -$20.5 million Grantham Mayo +$10.0 million Common Fund International +$ 6.5 million Fayez Sarofim +$ 4.0 million (e) Authorization for Vice President for Business
and Finance to Select a New Trustee for Pooled
Income Fund- RESOLVED by the Executive Committee of the Board of Visitors of the University of Virginia that the Vice President for Business and Finance is authorized to replace United Virginia Bank as trustee of the pooled income fund with a new trustee to be selected following a search conducted by the Investment Office.
(f) Amendment of the Compensation Plan Dated
June 27, 1984- RESOLVED by the Executive Committee of the Board of Visitors of the University of Virginia that the Compensation Plan dated June 27, 1984, pertaining to specified administrative officers of the University of Virginia is amended effective July 1, 1985 consistent with the 1985-86 budget previously approved by the Board of Visitors.
(g) Approval of Amendment to the Trustee
Agreement for the Pooled Income Fund- RESOLVED that the Trust Agreement for Pooled Income Fund be amended pursuant to the attached Second Amendment of Trust Agreement for Pooled Income Fund which substitutes The Connecticut Bank & Trust Company, N.A. for United Virginia Bank as Trustee of Pooled Income Fund.
(h) Approval of Sale of Corona, Queens,
New York Property Owned Jointly by
Iona College and University of Virginia- In December 1976, John G. Hagan gave to the University a 25% undivided interest in one unimproved lot and later a 50% undivided interest in another unimproved lot located at 98th Street and 55th Avenue, Corona, Queens, New York. Said lots are owned jointly with Iona College and contracts of sale have been entered into providing for the sale of one parcel of $191,500 and the other parcel for $55,000. Upon the recommendation of Ray C. Hunt, Jr., Vice President for Business and Finance, the Executive Committee adopted the following resolution contingent upon Mr. Hunt's approval of the appraisal:
- RESOLVED by The Executive Committee of the Board of Visitors of the University of Virginia that the University sell and convey, subject to the approval of the Governor of the Commonwealth of Virginia, the University's undivided 25% interest in one parcel of land located at the southeast corner of 55th Avenue and 98th Street, Corona, Queens, New York to Miusan Chun, Koon Ah Ma, Roman Ngo, Peter Tse and Jack Ma, the total purchase price for the entire property being $191,500 and also the University's undivided 50% interest in that unimproved lot on the westerly side of 98th Street, 60 feet south of its intersection with 55th Avenue, Corona, Queens, New York, to Ting K. Chan, the total purchase price for the entire property being $55,000.
- RESOLVED FURTHER that Ray C. Hunt, Jr., Vice President for Business and Finance, be and he hereby is, authorized to execute and deliver indentures conveying said properties, to affix the University's seal thereto, and to do all other things necessary to accomplish the sale and conveyance of the University's interest in said properties.
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| Board of Visitors minutes October 11, 1985 | |