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THE GEORGE \TASHINGTON T'NWERSITY \-, lpashingron, D.C. MINUTES OF THE REGUI.AR MEETING OF THE FACULTY SENATE HELD ON NOVEMBER 1+ 2008 rN THE STATE ROOM Present: Executive vice President Lrhrnar, Registrar Amundson, Patliamentadan Chatnovitz; Dean Phitlips and Intetim Dean Reum; Professors Benton-Shorq Biles, Castlebetry, Cotdes, Cotty, Costanza, Galstoa, Garis, ftffth, Harington, Helgpt, Johnson, Lipscomb, Marotta, Prg.L patsons, plact(, Rycoft, Sirnon, Wilmarth and Windsor Absent Ptesideat Korpp; Deans Batmtq Btown, Butke, Dolling, Futte[ r,awrence and Scott; Professors Artz, Becket, Englander, flotez, Millet, Robinson and Wirtz The meeti.g was called to otdet by Executive Yice Prcsident forAcademic Atrairs Lehman at2:20p.m. APPROVAL OF THE MINUTES The minutes of the meeting of Scptemberl2,?-0ogwere appioved as disuibuted. INTRODUCTION OF RESOLUTIONS \.- No resolutions were intrcduced. PROGRESS REPORT OF THE SPECIAL COMMITTEE ON THE SCIENCE ANID ENGINEERING COMPLEX Ptofessot H.lg.tg Chait of the Faculty Senate Special Committee fot the Science and Engineering Complex, disttibuted a copy of his powerpoint report. (Ihe teport is attached.) Ptofessot Hetgett revieu,ed key points of the reporg beginning with a descdption of the ptoiect tG?msr committees and consultants invohed thus far in planning fot the possible consttuction of a Science and Engineedng Complex (SEC). The Sinate Special Committee was cteated by the Faculty Senate Executive Committee eatty in the surnrner of Z)08 as a means of ptoviding input into the ptanning process, as well as to keep the Faculty Senate, and through ig the GW facutty, apptised of planning activities for the SEC, which, if implemented, would be one of &e most significant undertakiogs in GW,s history. b" sevetd occasions duting tfre summet 6e Specid C.ommiaee heldmeetings, including one meeti.g at which Ptesident Knappr Executive Vice Ptesident l.ehrnan, aot E ..otive Vice Prcsideat and'freasuter l-ouis Katz wete presenL Duri.g that meeting the Committee was ptovided with poiected timelines for the ptoiect, and o6it issues were-discusse{ inctuding questions about foodiog and parking. During the fatl sernester membets of the Special v Faculty Senate Minutes, November 14,Z0|/g Page2 Committee also attended meetings of the other groups involved in the pr(rcess, as detailed in the report. The first section of the Special Committee's tepott provides infotmation about the membetship of eachlf ryv9tal groups involved in th; Ptenning Ptocess. These groups lclude the Physical Facilities Prciect Team, comptised of foutLembets of the filysicat Facilities deparmenq and the Ptoiect rhnning Committee, compdsed of two memberc of the Ptoiect Team, Associate Vice Ptesident l*nn, one frculty rcptisentative from the School of Elgineedng and Applied Scieoce (SEAS) and another ftom Columbian College of Ats and Sciences (CCAS). Two Faculty Senate lepresentatives ftom the Spccial Comdittee also sen/e on this Committee: Ptofessot Cotdes, Chair of the Senate Fiscal Planning and nudgeting Committee (FP&B), aod Ptofessor Helgert, Chair of the Seoate ph:ysical Facilities Committee. The GW Boatd of Trustees has also fotmed a Committee on the SEC. Tnrstee Nelson Carboaell Chairs that Committee, on which thtee other Ttustees senre. The adrnini564tion is reptesented by Yice Presidents Lehman" Katz, Pdce Jones, Gief of Staff Potet and Associate vice Prcsident fot Ptincipal Gifts Kudless. The Deens of CCAS and SEAS wete also appointed to this C,ommittee, along with Senate repiesentativee Cordes and Helger- One faculty membet ftom SEAS, another ftom CCAS, and a third &om the School of Medicine and Health Sciences (SMHS) were appointed as faculty iepreseotatives to the Committee. Fout othet membets of the Committee were drawn from the SEAS National Advisory Council aad the CCAS Nationd Advisory Council, as detailed in the re1xltt. The Faculty Senate Specid Committee fot the SEC is chaited by Ptofessor Helgett, with Ptofessot Biles from the School of Public Health and Heatth Services seniog Executive Committee liaison to the gFoup. Nine other faculty membem serye on the Sp-ci"asl Committee: five ftom CCAS, two froo the Elliott School of latetnationalAfiairs [including Ptofessot Cordes of the Senate FP&B Committee} and one each from the SMHS and thi SEAS. As set forth in the tepott, the chatge of the Special Committee is to anatze and rePort to the Senate on the ptoiected size aad scope of the SEC, as well as the proiected cost - including costs fff furnishiogs and equipment The Speciat Committee is also expected to report on the anticipated sonrces of ftrnding to meet building costs, as well as the ptoiected impact of the SEC on the Univerciqy's opetating and capital budgets over the next sevetdyears. Sevetal -s6tingsr wotkshops and conference have taken place duting the fatt semestet 2(X)8. The firct substantive meeting held this fall was a Visioning 1,,[66trng on Octobet 11 facilitated by Ftancis Cameton. Thrce membets of the Physical Facilities department were in attendance, alongwith Trustee Matk Hughes, Executive Vice president Lchrnan, and Associate Vice President Lcnn. Five SEAS representative also participated, including the Dean. CCAS was teptesented by si* f"""lty members. [Seven ate listed in the tepott as one of the hcutty membes could only attend half of the meeting, and a substitute was found fot the temaindet l As detailed in the neporq the agenda fot the meeting was to develop a visioa statement fot the building as well as to identify (rccupane, assess space tequirements, and develop a stategf fot building use. Also on the agenda werc explodng possible collaborations and syneqgies between depanments and faculty and the shadng of tesorrces such as equipment and special frcitities. Faculty Senate Minutes, Novembet 14,2008 Page 3 Because the final relxlrt on Visioning Meeting outcomes was not available befote the \-- Senate meeting on November 146, Ptofessot Helgen shared the unapptoved working dtaft which includes the vision agreed upon as well as grridiog pdaciptes fot the building. After reviewing each of the guiding ptinciples in the &aft, Professot Helgert added that the yi*lsniog Meeting repoft would be made available to the Senate once it wae final. Ptofessor Helget trert repofted on the meeting of the Boad of Tnrstees' SEC Committee held Octobet ?.L The puryose of this meeting was to relxlrt on the Yisioning Meeting held on Octobet 116, review ti-elines and milestones, fundtaising strategies, and anticipated enhancements to teaching, learning and research both upon completion of the buildiry, and five yeats after. Among the conclusions of this meeting were that ateas of activity in the buitdiry for institutes, centers and labomtories should be identified eady in the planning ptoce66 and that fundraising stategies should be developed by identifing ateas of intetest arnong potential doaors- Building needs and obiectives and fuadraising stntegies need to be specified for ptesentation at the Board of Trustees p6sting in Februaryr 2W9- Asubcommittee of the Boards SEC Committee consisting of Dean Dolling (SEAS), Dean Baratt (CCAS) and Ptofessor Weding (SMHS) wete asked to carry out the fotecasti.g of ptospective enhaacements to rcseatch aod teaching (the fourth item on the Committee's agenda) and submit their repoft the week of Novembet 10,2fi)& On Octobet 27 tlnid 2f., ?/d/il&, Dean Dolling and turo faculty members ftom SEAS, along with anothet ftom CCAS and two membets of the Physical Facilities depatment attended a Ttadeline Confetence in San Diego, Califomia on college and uaivetsity science facilities. At this confetence ptesentatioas wene made by facufty and administmtorc and plannes and architects about planned and completed science and engireering builditrg \., ptoiects at a numbet of U.S. institutions. The reporrt sets foith the common motivations which prcmpt consttuction of these types of new buildings, as well as common buildiry obiectives. Ptofessot Helgett tepotted that the space allocation in these qpes of frcilities was a hotly debated issue, but the consensus was that there should be no ownership of Labomtodes ot equipment by tesearchets or departmerB. Futthet, the allocation of these resources should be based, as set fotth h the reporg upon the scope and televance of teseatch, level of funding, and institute ptiotities. Petiodic evaluation of space utilization is also to be based oa ptoductivity and an impotant compoaeot of t\is evaluation is to be based on financial measunes. On Octobet 31, 2008, a wotkshop on Planning New Spaces fot Science was held at Phillips HalL The wotkshop was facilitated by two members of the Physical Facilities Office and Jeanne Narum of Proiect Kaleidoscope. Patticipants included chairc and key faculty ftom the nine deparmetrts from SEAS and CCAS [Electricat and Computer Eagineedng, Computet Science, Mechanical and Aemspace Engineering, Civil and Euvitonmental Engineering, Engineering Management and Systems Engineedag, Chemistry, Biologr, Physics, and PhysicalAathropolog;yl involved in the ptoiect, as well as Ptofessors Cotdes and Helgert ftom the Specid Senate C,ommiuee. Accoding to the status tePorrt' the obiective of the wodrshop was to lolprrlat€ a set of questions leadi.g to a report to the GW Boatd of Trustees in February N9 on the scope and impact of the SEC. Key strategies to achieve this obiective inctuded determining GW's crrrent stengths in science and engineeting, and detetmining the telationship of the SEC to othet curent Faculty Senate Minutes, November 14, 200g Page 4 developments and futue plans- The wodcshop teceived ptesentations concetning the experiences of Geotgia Tech and Boston Couege es pait ol a thfud strategy to considet lessons leatned by othet institutioos undettafrng pio;."o similat to the SEC. conclusions reached at the workhop wete that -the src should be dever,oped asK aeny intemational crosstoads fot science Td engineedng- Therc is a need for large spaces io the building, both to host national and tt"-.f,"".r conferences and wotkshops and ptovide latge clas*ooms with modetn audiovisual eqoifment. Buildiry-wide opport,aities nbee edde vtoe lobpee pdr.ovided, and new pedagogical models, """1 as ptoiect based leamiag, need to rt is anticipated that at the Boatd of Trustees meeting in Febnraty zXX), the Board will teview the SEC building Prciect, and approval wifl be sought fot a plaunilg budget for pteliminaty wotk in progrm-i"g aoa arciitectural design-- The Boad is expected to consider the aeeds and obiective" that the proiect will addtess, as well as a financial model aud fundraising requitements. Aftet the g;ard going fotwatd with the next stage of the SEC poiect, q "pproo.. l^ptogammiry P gerirop the ptogtam for the buitding will be eteftfaoinret'd nT haen dz oannin agt cphtioteccetsusr afol tf ittmhe- wSiElrC b ceo huiltde db etg" ina oaisg erra dayi .a ms Miloary.,g 2 0e0t9 * o lt1 oe/oa tlley v?e-l0 1o0f. Ptofessor Helgett said it has been sttessed tnat tuJsgc is wefl vithin the preseat campus PIaa ftamewotk, so rliffisuls' in getting apptoval by the zondegBoatd fot the pmiect is not aaticipated- The next ,.-8i-:1t of the Special Committee's tepon outlines buitdiry paramete," and occupancy and utilization data. The SEC will be asingle building occupying Squarc 55, the site of the curent Parking Gatage, ana nuiloio[ K, bod of which will be demolished' oo a total site atea or52,000 "q'"*. reeg G sEC wil occup5r 90ye of &at lot, toisf r9n(gP "eliognhgt ffloro Stst taebeotv eI t gisto eusntdirn taot eaO h ethigaht ti fousif mloa rrreiernt uartno osgq rIu rSnere feoto t"aogae .a sbto vpe. agoro*oua hde &igahtt can be achieved is 4001000 sq-luoabtbei efese q with 6u/o of that assignable space and the rest devoted to hallways, elevatot and halhrays, rest(xlms, and so forth. rt is pestatimnal;tlegd Pthtoact eas gs't kits is50 e,0xfpi)e scqteuda rcth faete ctwlasilsl aboeo amvsa iwlabiute bbee loown tghreo ufnirds.t Aflto tohirs. sTrahgeer eo fia stlhs eo possibility that aa auditorium witl also be built on the first level r,abotatoties are ro occullya floots 2 tluough 7 and k-b* gtade spzrce. Facutty and administrative offices will b€ on the 7* and 86 floots' Thete is a tlqativi pl"" q, qts00-p..h"g spaces belon, gmde, and fot some 5,fi)0 squate feet of tetail space Eye Stteet.-A *t t d obiective for the SEC is to ethnec oprlarang set acaodlsla, bnoor adteivpea tttemseenattaclh s bpeatcwe" etwoeoongu-s ldci ibnec em, aednJgaivnaeieladuntgi taon sdr ,mIHeadi;c.pinaer,r mhoewne6v.er, as collaborative teseatch with the lliedical schoot would come about as a resulr of shared research space and equipment Acnral space allocatioas have not yet been designated but these will be made on a competitive basis. rn tetms of a fossible clnsuuction tirneliner soil tests uader the patking gatage have been conductcd .oa ro initial site suwey has been completed' Acoustic and vibtation measunements in the vicinity of the p-l.a have been taken to ensute that the site is suitable. rt is possible that the building be stared in ?.0t1 aill completed in ml4. "Lui Tuning to theissu.-9f-p"t"g,^Ptofessor Hetgett acknowtredged &e imponance of this issue to manJr. The univetsity rrting G-rd;" fuuare 55 curently holds 1250 Faculty Senate Minutes, Novembet 14,2008 Page 5 spaces, mostly used by fac"lty. The Universiqfs Campus Plan tequites that GW maintain the crr.ot number of pa*ing spaces avail;able. Ptofessot Helget said it was his underctanding that some 362 parking spaces would be avail,able fot Univemity use undet Square 54, with Boston Ptopetties, the lessee, tetaining the rcst Uader the Squate 80 buildfug on G Stteeq it is o<pected that 178 epaces would be avail,able. Ptofessot Helgett added that the balance of tequired spaces will have to be wotked ouq but it is clear that without a solution to Se paddng ptoblem the SEC building is not going to happen, period. In conclusion, Professot Helget said he would defet to Ptofessot Cotdes to ptovide financial infotmation about the SEC proiect. He said it was his understanding that nothing is teally firm at this poing and the poiected cost of the buildiog aod thc frrnding stmtegy fot it ate under development- Thus fat, planning funds allocated to Facilitics Prciect Management arnount to $1,5fi),fi)0 - $?001000 in Fiscal Yeat 2(X)8, and $8fi),0fi) for Fiscal Year?fr09. Additional planning and ptogmmming funds depend upon futthet development and a decision by the Board of 'ftustees to go forward with the next phase of the proiect Professot Galston said she had oot heard the term 'gteen' [sustainabiliryl mentioned in the presentatioo, and she inquited if the SEC ptoiect would be 'gteen.' Professor Helgert rcsponded that sustainability was a topic *idely discussed at the San Diego Confetence, md it is a vety sttong consideration among people who are yenturres sirnilar to the SEC. He added that he could not imagine that GW would not place grcat emphasis on this aspect of the ptoiect Ptofessor Wilmaith noted that a maior stated rationale fot the SEC was that itwould rcplace GVs erristi.g science and engineedng facilities fot teaching and tesearch, which are outdated. Substaadatd cl,asstoom and labotatory frcilities fot science and eagineering \-. have been cited as an obstacle to the rcctuitment sf highly qualified undetgtaduate and gmduate studeots. Plofessor \fiharth said that it was not clear from Professot Helgetfs relnrt whethet these labomtoty and teaching needs - both uodetgaduate atrd/ot gtaduate - - would be satisfied by building the SEC. Pmfessor Hetgert said that at the momcnq there is no conctete plan as yet to detetmine how new space in the SEC will be allocated between teaching, classtooms, md tesearch. He said that his sense was that classrooms and teaching facilities in the SEC would be couptred very tightly to &e laboratoties. What was leamed as a tesult of the San Diego confetence was trat it is notwise to dedicate this sott of new space to standard classtooms, but ather to pair classtooms to specializ66 rca6hing l,abs that involve students, particularly undetgraduates, in rcseatch dmost &o'm day me. Ptofessot Simon obsered that the University is contractually obligated to ptovide roughly 3Z) patiing spaccs to the GW Hospital Thetefote, if the University Pa*ing Gatage is totn down, 3N of the availablc 362 pa*ing spaces under Squate 54 (the Boston Propenies proiect) are alrcady taken, and onfy 42 lrret spaces will be avail,able. This leaves ovet 9(X) pa*ing spaces to be replaced. Professor Simon also asked about the amount of indfuect cost recoverlr monies available if deparments to be involved in the SEC proiect wete to move today. Ptofessor Helgett said he did not have the infotmation to answet this question dfuectly but that the issue had been diecussed at the San Diego confetence, aod the prcvailing view is that increased indircct cost reoovery might well be abtre to cover the opetating costs of the new buildi.g. Faculty Senate Minutes, November 14, 200g Page 6 Ptofessor Plack said she undetstood rhat the nine CCAS and SEAS depattments would have office space in the SEC, but would not be guamateed hb space. professot Hglsett tesponded that lab space would be awatded on a competitive basis. professot plack asked if sMHs faculty cfio wcte not housed in the buitdiry could eompete for &e lrb space available' vice Ptesideat r-ehman said that it has always been the fot the buildi.g tlat tab 6pace would be availeble on a competitive basis with the id"eia" itoh.a t scientists from the Medical Centet would be able to conduct teseatch in the buildfug with engineets and other science faculty on a collaborative basis. Vice ptesiden"tl oLocgh man added in tesponse to Ptofessot Yihatth's question that the teaching of sciencer particrrladrr i1 student's fitst ot second year, is reatry very apidly changingl These in the SECa [1i[ding will take place oa the firct floot and be visiue to the campus "c"oirrnimri4"n" ity, and this will assist in rccnriting students who can obsene the tea@;tt r*l"g intetface directly. Ptofessot vilmarth observed that a significant nurnbet of public and pdvate univetsities have teceatly constructed or ate .,r.t*y constucting o.or-".i.o"e facilities in an effon to atttact qronsored teseatch. He asked wf,ethet there iia potential ptoblem that the univetsity may be entedng what-is atready a saturated oa*eqL terms of attracting sponsored teseatch, if many othet univemities are seeking to do the sarne thfug. ptofessor Helgert said he thought fte point well taken, and that the selection of crhich tesearch ptoiects should be pusued coulO be a ctitical one. Discuesion followed. Professot Matota noed that gL5 million will have been e-lnended by the end of FY 09 on SEC pioicct praoning aad inquited about the soutce of this funding. Vice Ptesident r-chman said the i-4" *L. t t o ftom the caprtal budget Ptofessot Simon erprcssed cotrsetn about sources of research fudfug going forwat4 aoting that -fuading from the National rastitutes of Heatth is not expected to inctease. vice Ptesideot r'ehman said that &e SEC concept was not based solely on a biomedical reseatch model but upon one that that is a combination of all of the sciences. Prcfessot Vindsot said that he thought that GV might be about to produce paradigm shift, from its ptesent focus on basil and health sciences. He added thag despitea the discussion about tte sEGs physical f""ility aod so fotth, he had not heard anything !a,biloduint gth'se imnvisessitomne-n At tthteaot twioinll mo"u.sdt btoe bpea imd atoie t htois hisitseu ea dfodtit itohnea lS fEaCcu tloty stuoc acceheiedv. eV tichee iPgtnesoidreendt' LPethomfeasnso at gPraemedo athsa st athidis h we iu[ nbdee ats vtoeori yth.aat .t"hiel nopstotopno sCitoioflne,g € buptr oiti ehcats hnaodt bbeeeenn deemed successful and seemed to be viewed as a very fine model fot the SEG professot I{elgeit said that 1"ety- detailed tepoiL which he ofreted to make available to the senate, had been ptesented T -t. San Diego confetence abour r,is. Theii new science facility has paoven quite successfuI in tecnritillg studerts, but not as suosessful as they had hoped in atEacting top rcseatchem with latge teseatch grants. ate beinPgrc bfeusislto at Laipds comb asrae idc osmhep eutnindge tfsotto oteds ethatacth a scptoascse &ine t hcomun. trwy,h asct ieisn cneo tf accleiliatite iss how teaching and teseatch will proceed irr""rty ate holsed in the SEC but their labe and support facilities ate elsewhere because they are not awarded leb space in the SEC. Ptofessor Lipscomb said she &ought it was unclear what Gw is rcally qyiog ao do with t\is Faculty Senate Minutes, Novembet 14,2008 Page 7 buildin$ it's not clear that what has been done at Boston College is teally comparable to what GV is trying to do. Professor Helgen responded that most of the pteseatations at the San Diego confetence concerned nerw or cortemplated science [particulady biomedical sciencel buildings mther than the science and engiaeedng model intended fot the SEC. REPORT ON THE T'NWERSITTS OPERATING AhID CAPITAL BI,]DGETS, AAID THE IMPACT OF THE SCIENCE AND ENGINEERING COMPLH( ON THOSE BT'DGETS Professor Cotdes, Chair of the Fiscal Planning and Budgeting Committee disttibuted a copy of his powerpoint report, which is attached. The first portion of the repoft ptovides infotmation about &e Capital Budget fot Ncw Coastuction and Maiot Reaovations apptoved by the GW Board of Trustees for FiscalYeat (FY) 09. The infotmation ptovided excludes the Medical Center. Professor Cotdes obsewed that the totd amount apptoved thtough W tL fot capital proiects is approximately $170,0fi),@ essentially the SEC would cost at least this muc\ and ptobably more, so it would be a oaiot pmiect. The tepott also ptovides a Debt Managemeot $rrrnrnaly which desctibes the total arnormt frmded by specific reveaue sorrces and genetal revenur, as well as the total debt outstandiflg and lL annual debt senice fot FY 05, and the estimated totals fot FY 08 and FY Apptoximately 75 7o of the Capital Budget fot FY09 is fundcd by debt compated W 86% fot Ff 08. While contdbutions and endowment payout funded !o/o of the Capital Budget in Ff 08, ir FY 09 14Yo of the Capitd Budgetwill come ftom these sowces. The repott outlines 1fos link between the Capital and Opemting Budgets, as ptofects funded by the Capitd Budget impact futute Opeating Budgets in sevenl wa]6r ftom the cost of debt service to the operating, staffand equipment costs of new buildings. The SEC would be a maior nery prciect and as thete is little ot no (x)rn in the curent Opetating Budget to frrad ir Thetefote, significant additiond sounces of revenue will be rcquited if the SEC is to become a redity. finfotmation on the Opemting Budget for FY $] is ptovided on page I in the rcport l \Ehile a precise estirnate of building costs is not yet available and will not be urtil more ercensive planning is complete, Professot Cotdes ptovided an illusttation fot a funding model fot the SEC. If the constuction cost is Wn to $5fi) per sqrnre foot for 450,000 squate feeq the cost of the SEC, excluding tesearch equipmenq woul mnge ftom $180 to $270 milliot at prcsent day rates. These numbets could shange. Ptofessot Cotdes said that President Koapp has cleady stated sevetd tirnes thag rnlike priot ptoiects whete funding was detived ftom tuition, ftat will not be the case fot the SEC. Sources of funding for the complex can be thought of as a three-legged stoot consistiog of tevenue ftom Squate 54 (the old GV hospital site), increased inditect cost recoveries ftom spoosoted reseatch, and incteased chadtable giving. In the scenatio set forth in the reporq assuming a building construction cost of $250 rnilliop (slightty above the midpoint of the high and low figutes fot cost of construction lrer squane foot), and assuming futther that this cost would be lfiF/o finaoced with debt having an amomization pedod of 30 years and a fixed intetest tate of 60/0, then apptoximately $18 million in annual debt senice costs would be added to the Universiqls budget lssurning that opemtions and maintenance costs for the SEC would be $14 per sqnarc foot, as is pledicted fot the new School of Public Health and Health Services building, that would add anothet $63 million per year to the Universiqfs aanual Faculty Senate Minutes, November l4r?fr}g Page 8 ethxep ecnusreesn. tT aokpeenra rtoingge thseqrp, luans A-n nwuoalu ll"dA uge. ,c igeaapte oaf. $T2h1.i3s milluillsiotrnat i-o nn edaodeys tnheo ta tmakoeu nitn toof account equipment cost6' some ot all of which may be covered by s$n"ored research grarrts. *esT o meet these debt service and mainteaance costs, Ptofessot Cotdes, illustmtion paaosnssnrsu iabll ep a$rey5vo meunti ulloeionsn ot hpj$ee 7tc aymepiitftlfia gola;f'6 aP6de "rd *iyt.eio ani "(&l$ ofioomzd otihrieu" tiU ocnniivtl e"rrrse itcqfo,fesv esetqineudsao r(weif m sa4e nwbt,oL bin.a,cs reaedloa onsgne aw 4it.h4 oah crurent inditect cost tecoveties is achicved). After taLing .."oLa oi ,h.r. above additional aicbtfcneusolusovnkutsieeedlleddrdaiudn i d netgbo\ s ogre ,pf a ' aci$Parnl2rnnpoca5 r sem0aotea hnvemdseant e uteii$ dtfa$etl 0li vt ef- hlueaurlen.aned ts&igA'ul gttaenniht6itoiites vlet g ihoeiaaane tgmpr bii p- tyof oytuF uaf Po nontbdtattene- iifnessitinwngxied[aa ed eimn,es n"$scnp4tue ll$xf eedip1n ,i 0r bat--j rsyapgiiu" npe- ddi,niose rrt$,bn""hb1aigi 2si.*oo " omtfg"e .* igrmlg.llidi foratt phsn;br e .eraiw oo Bnrogieod.u -dag $lcudradioc ps ren ooedwtfmt imoTbtoautuiu liltlnd$siioot1. e h5anUea0 ssn vb m efduwo eiitllitlordli l o ti tnhbhbneeege, outlay is apprcved, initially these ftrnds-would be"draurn fromfu ncdass hfo rte stheeiy ebsu, ilbduint gth.i sIf stuhmis would become a defered er?ense included in the cost of the buildiog it .u tphteo vfiidguePr eatos pf eegsrivsspeoenr c catoivrr:ed neoosnj etahmgetp umhalaa sfg,itnzoeitidue dctethio aontf-s itn.h feAo t Umil.faautigor..no1 ip., -toi.mvoipd.a ecdot fit nhthe te hS ebE uCtde gpweootrautr lydis ihmmavpeeaa,cn att notdof wthee llsaEsC e wstoirunradt eneseodf ctoo inncslutnderc ttiieo neastnim{aotpede tcaostitn ogf .te*ose.a-etc"hp e"q.iuoipran.enn t and hfuing sraffas otobe ndeeveedl ofpoet dt hbee feoxtelr athnes iFoenb otufa tthye, zpoooolt no9f af1tr!l l--t.im.-,eir Jgi,. "c.o.a saidnedr aetioogni nneeeetdinsg t "ofo "b""erir" lgttpyiv tew nh oto wthiell wrciqllu bfuee s aigdadiiftiicoannatl foofrf itchee sbpuaitdcien.g ,r ta insd c ale mata iforor min ctheea silelu rsrt tgamtio nw giilv beea rtchqaut itfeinda-ncing needs Ptofessot wilmatth asked if the figues for th1 univetsiqfs opetatrng budget ptesented in the teport teflect the most cnfiert infotmation available. Given the curent finaacial ctisis, there ate gowing concetns :unoog the faculty that the univetsity will suffet a substaatial deteriomtiol-1it tuition.lr.or." provide a significantfy highet f-racrlneocuterdt of financial aid otto t hsattg tdhee nueni.v eprtsoifteys wsoilrl need to Cordes responded that budgellr:|-beo first quatet of FY 09 (which endaetde opnro sveidpeta m qL.rar remtt,y m, aonadl, tthhuast fthrre iut naipvpeetsaitqs,l sft ocmur ethnet pblu'adngneetd p' tioni ewchtiiocnhs " aan"ee oar " t-a.tug estu. rrptl utes mfoatin FsY t oo bl em s.eyeune i fa fnuttiuciep antuemd.b eptrso fewsisllo cr owmilem iaa. ,ahs noted that the Boatd of rrustees has approved inidai plaaning fff a nesr buitding for the School of Public Health and Health serices, and trete has also been discussion of eithet pBut$el1nuan5icdvo0ege v'm eatsatti iinqtlwgdlfi s ooio tntc tk wa'r ipenaPrpsgttla oa hlfG ceibsinstu osgimdou Rgrpp oer \csfatlss ib slPmHoiotouaaaftel t Lshthh so Iaot.u rts a rt ctphoiopaeriepa aueewt-ssnhi d"te"heiottauh.ptste oetithqos ot afhsfs.eo"at rptp i t iothanhiae.o"trc" s n tebsbo u e pmsdeutganocye h altc enddo.ioyssit e c d-bsu=i ssa.rcs**oui.oots. n,,is n iahcoafl$nufd1e d ifcnlte)at katttehhhnneeed Medical Centee He _added that pethaps the Senaie o..a" to take a look at the Medical centet's budget as werl,.but that infotmatioa is not teflected in tre report. Faculty Senate Minutes, November 1412008 Page 9 Discussion followed, with Professor Simon saying he understood that the information in the report was illustrative rather than a final statement of budget options for the SEC; however he said thought that actual construction costs for the SEC might actually be significantly more than those in the report. Professor Cordes responded that at this stage, the actual numbers can only be crudely estimated. Professor Simon asked how some $2 million annually had become unavailable, as the estimate of revenue for Square 54 was teported at $9 million per year rather than $7 million. Professor Cordes responded that the lease fot Square 54 has been capitalized, $162 million and this figure was added to the ^t endowment. Thus the annual payout from the revised endowment total would account for the difference. From an accounting perspective, this is a perfectly appropriate way in which to capita,lize the value of the lease in question. Professor Simon said he wondeted what the University intends to do with the additional $2 million in cash flow that the University will teceive each yeat from Square 54 over and above the endowment payout value. Professor Gtiffith said he would be reluctant to criticize the decision to capitalize the lease for Square 54 and add the monies to the endowment, but the understanding has been that between $9 and $10 million annually would be available, and that number would inctease ovet the life of the lease. He noted that this seems to be a way of constraining how the money from Square 54 would be made available for use. He added that, while he understood there ate still ongoing discussions about whether there should be some sort of special payout from the segrnent of the endowment represented by the Square 54 lease, at present thete are fewet funds available than anticipated. Professot Griffith also said that the SEC proiect struck him as one in which the University is once again reaching very far from the relatively stable equilibtium it enioys now. He asked if Vice President Lehman had a sense that the Boatd of Trustees is firmly behind the SEC ptoiect, and would use their contacts to assist in the fundraising necessa{y for the ptoiect to succeed. S7ithout serious support ftom the Boatd, it is likely that the Development Office will be hard-pressed to raise the funds necessary. Vice President Lehman responded that Trustee Carbonell had presented a repoft at the June Board fetreat, and that those Trustees pfesent were supportive of pursuing the SEC ptoposal. In addition, Boatd memberc toured the existing lab facilities in science and engineering on the Foggy Bottom campus, so they are aware of the condition of existing facilities, which they take seriously. Board members understand that the SEC proiect is iust a proposal, and they expect that all of the analysis that is underway will be completed, after which they will make a decision. Professor Griffith asked if the Board would be asked to consider whethet the building should be built fully, or should be completed in phases, as has been discussed. Yice Ptesident Lehman responded that the Board would, as Professor Cordes had indicated, examine diffetent scenarios, including phased-in construction, as they analyze cost factors associated with the SEC. Professor Cordes observed that models ot scenarios put together would change over timel at this point the question is whether or not resources should be spent to take the next step in planning for the SEC, which in part will determine the amount of funding rcquired and what the likelihood is of raising this funding from the different sources available. Vice President Lehman added that the five and ten year proiections of enhancements to teaching and research had been received from Dean Barratt, Dean Dolling, and Professor Veding. These materials will be used to begin 1