Agenda Item IIIa
South Carolina Centers of Economic Excellence
Minutes of the Review Board Meeting
February 28, 2011
Welcome and Introductions
Chair Pamela Lackey greeted those present and called the meeting of the South Carolina
Centers of Economic Excellence (CoEE) Review Board to order at 1:05 p.m. She
welcomed new Review Board members Ms. Catherine Heigel and Ms. Lisa Main. The
meeting was held in the ABC Conference Room of the Nelson Mullins Law Firm in the
Meridian Building in downtown Columbia.
Review Board members present included:
Pamela Lackey, Chair
Regan Voit, Vice Chair
Lyles Glenn
Patricia Wilson
Mike Couick
Melvin Williams
Catherine Heigel
Raymond S. Greenberg (ex officio)
Harris Pastides (ex officio)
James F. Barker (ex officio) (teleconf.)
Review Board members not in attendance:
Bobby Pearce, Secretary
Keith Munson
Others in attendance included:
Jim Hammond, Columbia Regional
Business Report
Ford Graham, S.C. Dept. of Commerce
Christine Curtis, USC
Stephen Kresovich, USC
Don Herriott, USC
Ken Reifsnider, USC (CoEE Chair)
Victor Giurgiutiu, USC
Wanda Hutto, USC
Stephen Lanier, MUSC
Mark Sothmann, MUSC
Bart Yancey, MUSC
Gerald Sonnenfeld, Clemson
John Kelly, Clemson (teleconference)
Tom Kurfess, Clemson (CoEE Chair)
Doug Hirt, Clemson
Imtiaz Haque, Clemson
Kathy Coleman, Clemson
Clare Morris, Clare Morris Agency
Trish Ostrowski, CMA (teleconference)
Julie Carullo, CHE
Gary Glenn, CHE
Mike Raley, CHE
Argentini Anderson, CHE
Laura Belcher, CHE
Arik Bjorn, CHE
Presentation of Resolution Recognizing the Service of Former CoEE Review Board
Chair Paula Harper Bethea
Chair Lackey informed the Review Board that Former CoEE Review Board Chair Paula
Harper Bethea had a business engagement and could not be in attendance to receive her
framed resolution from the CoEE Review Board. To honor her service to the CoEE
Program, Chair Lackey read the resolution aloud:
“WHEREAS, Ms. Paula Harper Bethea, served five-plus years as a distinguished
member of the South Carolina Centers of Economic Excellence Review Board
(Board);
“WHEREAS, Ms. Harper Bethea fulfilled the charge of the South Carolina
Research Centers of Economic Excellence Act (The Act) to fund endowments for
professorships in targeted research areas that will create well-paying jobs and
enhanced economic opportunities for the people of South Carolina;
“WHEREAS, Ms. Harper Bethea fulfilled the charge of The Act to provide
oversight of the Centers of Excellence Matching Endowment;
“WHEREAS, Ms. Harper Bethea did excellently serve the Board as Secretary and
Chair, manifesting a spirit of determined leadership that served to advance the
knowledge economy of the State of South Carolina;
“WHEREAS, Ms. Harper Bethea did demonstrate grace and acumen to sustain
support for the Endowed Chairs Program (Program), did work indefatigably to
recruit renowned researchers and investors to the State, and did greatly advance
local and national recognition of the Program.
“NOW THEREFORE,
“BE IT RESOLVED: The South Carolina Centers of Economic Excellence
Review Board commends Paula Harper Bethea for her extraordinary service and
leadership to this Board and to the economic well-being of the State of South
Carolina; and
“BE IT FURTHER RESOLVED: The South Carolina Centers of Economic
Excellence Review Board hereby acknowledges the dedication demonstrated by
Ms. Harper Bethea and thanks her warmly for her outstanding efforts.”
Consideration and Approval of Meeting Minutes
The minutes of the November 28, 2010, and December 6, 2010, CoEE Review Board
meetings were discussed briefly.
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Review Board Minutes of February 28, 2011
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•
Action on the November 28, 2010, and December 6, 2010, CoEE Review Board
Minutes
¾ Mr. Williams moved and Mr. Voit seconded a motion to approve the
November 28, 2010, and December 6, 2010, CoEE Review Board minutes as
drafted and presented to the Review Board. The motion was approved with all
members of the Review Board present voting in favor of the motion.
Institutional Presentations for the FY 2010-2011 CoEE Commerce Award Cycle
Mr. Bjorn provided a summary of the June 2010 revisions to the South Carolina Research
Centers of Economic Excellence (RCEE) Act, which had enacted a new type of CoEE
Commerce Award to be made in concert with the South Carolina Department of
Commerce. In September 2010, Commerce Secretary Taylor issued a letter to the CoEE
Review Board, requesting three such CoEE Commerce Awards, two in association with
the new Boeing site in Charleston, and one in association with the ZF Group expansion to
the Upstate. In December 2010, the CoEE Review Board passed guidelines for the
issuance of such CoEE Commerce Awards, and in January 2011, the Review Board
released an RFP to receive CoEE Commerce Award proposals from the institutions for
the 2010-2011 CoEE Commerce Award cycle.
Mr. Ford provided information to the CoEE Review Board about the Boeing and ZF
Group expansions and the impact of these two corporations on the South Carolina
economy. The Boeing investment was expected to exceed $900 million and would
ultimately employ 16,000 individuals statewide. Mr. Ford described ZF Group as the
largest transmission manufacturer in the world; ZF Group employs roughly 60,000
people worldwide. The ZF Group Upstate expansion included a $350 million capital
investment in the state of South Carolina.
Chair Lackey reminded the Review Board that Secretary Taylor’s September 2010 letter
had indicated a priority order for the two Boeing awards.
Mr. Bjorn stated that CoEE Commerce Awards do not require a non-state match, as the
corporate investment serves the purpose of a non-state investment to counterbalance the
state’s investment. Also, funding for CoEE Commerce Awards derives from the
segregation of one-quarter of the unallocated funds (including accrued program interest)
in the Centers of Excellence Matching Endowment which is maintained by the Treasurer.
At present, $1.3 million was available for CoEE Commerce Award funding. CHE Staff
estimated that between June 2011 and June 2014, an additional $1 million in program
interest was likely to accrue for CoEE Commerce Award funding.
Mr. Bjorn also reminded the Review Board that the Centers of Excellence Matching
Endowment principal was now below $50 million, as the institutions had done an
excellent job of recruiting non-state match investments over the past year. However, this
meant that there would be less accrued program interest going forward; CHE staff
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anticipated that the Centers of Excellence Matching Endowment was likely to have a zero
balance by calendar year 2014.
The Review Board inquired about the absence of technical reviews for CoEE Commerce
Award proposals. Mr. Bjorn replied that the RCEE Act revisions exempted CoEE
Commerce Award proposals from the formal technical review to which Standard CoEE
Award proposals were subject. Mr. Bjorn informed the Review Board that because
technical reviews were not allowed, CHE staff had recommended that the principal
investigators present directly to the Review Board; this suggestion had been incorporated
into the CoEE Commerce Award Guidelines.
Mr. Bjorn noted that CoEE Commerce Awards were still subject to review by the CoEE
Onsite Review Panel, albeit the minimum number of panelists conducting the review no
longer was required to be five. CHE staff had contracted with three former members of
the CoEE Onsite Review Panel to review CoEE Commerce Award proposals, including a
new Onsite Review Panel Chair, Dr. Todd Sherer of Emory University.
Mr. Couick asked whether Boeing had indicated an early preference for any of the four
Boeing proposals, two submitted by Clemson University and two by USC. Chair Lackey
stated she was unaware of any preference by Boeing. Mr. Bjorn added that a proposal
could not be formally submitted unless Boeing endorsed it, which it had done for all four
proposals.
President Pastides stated that CHE staff’s summary of available funding made it clear
that not all three proposals were likely to be funding barring new appropriations to the
program. He asked whether the Review Board was going to make one or two awards.
Chair Lackey stated that she did not yet have an answer for that question, but that the
Guidelines permitted the Review Board to make awards pending available funding.
Mr. Couick stated that parts of the four Boeing proposals seemed to overlap each other.
He wondered whether the institutions would be willing to combine certain elements of
the proposals or whether they would be willing to collaborate to reduce the total number
of proposals. Chair Lackey asked the institutions to entertain the suggestion.
Mr. Bjorn reminded the Review Board that, in the end, the Commerce Secretary made the
final funding determination. The Review Board might award three proposals, but the
Commerce Secretary had the authority to issue certifications which caused funding to
transfer to an institution. If the Commerce Secretary issued no such certification, no
award funds would be transferred: “Even should one company in theory finish its
construction project first, the Secretary does not have to issue the certification if there is
another project he wishes to fund first.”
Mr. Bjorn reviewed the rules and procedures of the institutional presentations. Chair
Lackey invited Clemson University to proceed first. The Review Board received opening
remarks from President Barker and Dr. Sonnenfeld.
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CoEE Endowed Chair Dr. Thomas Kurfess provided a presentation for the CoEE
Commerce Award proposal, “CoEE in Advanced Materials Manufacturing,” in
association with the Boeing expansion. Following his presentation, Dr. Kurfess fielded
questions from members of the CoEE Review Board.
Mr. Williams declared a conflict of interest. He stated that his company was engaged in
business with Boeing and that he would recuse himself from voting in any part of the
CoEE Commerce Award process but would participate in questioning the principal
investigators.
Mr. Couick indicated that Dr. Kurfess’ proposal seemed to resemble closely the proposal
submitted by Dr. Reifsnider of USC. Dr. Kurfess replied that Dr. Reifsnider’s proposal
had not been shared with him so he could not comment.
Mr. Voit said that generally the proposals did not seem to address economic development
enough. He asked that a portion of the Onsite Review Panel presentations be devoted
exclusively to economic development. The institutions agreed to incorporate specific
time to economic development in the site visit presentations.
Dr. Douglas E. Hirt of Clemson University provided a presentation for the CoEE
Commerce Award proposal, “CoEE in Materials Joining Technologies,” in association
with the Boeing expansion. Following his presentation, Dr. Hirt fielded questions from
members of the CoEE Review Board.
Mr. Glenn asked whether the science of both Clemson proposals was distinct enough to
warrant multiple chairs at Clemson. Dr. Hirt replied that the research foci of the
proposed chairs were noticeably distinct from one another.
Dr. Imtiaz Haque of Clemson University provided a presentation for the CoEE
Commerce Award proposal, “CoEE in Smart Manufacturing Systems and Assembly,” in
association with the ZF Group expansion. Following his presentation, Dr. Haque fielded
questions from members of the CoEE Review Board.
Chair Lackey invited USC to proceed next. The Review Board received opening remarks
from President Pastides.
CoEE Endowed Chair Dr. Ken Reifsnider provided a presentation for the CoEE
Commerce Award proposal, “CoEE in Multiphysics of Heterogeneous Engineered
Functional Materials and Structures,” in association with the Boeing expansion.
Following his presentation, Dr. Haque fielded questions from members of the CoEE
Review Board.
Dr. Victor Giurgiutiu of USC provided a presentation for the CoEE Commerce Award
proposal, “CoEE in In-Process Nondestructive Monitoring of Structural Composites,” in
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association with the Boeing expansion. Following his presentation, Dr. Haque fielded
questions from members of the CoEE Review Board.
Several members of the Review Board commented that it was quite difficult to
differentiate the science of the proposals absent the technical reviews the Review Board
was accustomed to receiving. The Review Board generally agreed that all five proposals
seemed worthy to send onward to the Onsite Review Panel. President Pastides and
President Barker agreed that all five proposals were indicative of the highest level of
research and academic excellence at their respective institutions.
Mr. Bjorn reminded the Review Board that, per the Guidelines, the Onsite Review Panel
could not recommend one proposal over another, and could only state whether an
individual proposal was “favorable” or “unfavorable.”
•
Action on Forwarding of 2010-2011 CoEE Commerce Award Proposals to May 2011
CoEE Onsite Review Panel Institutional Site Visits
¾ Mr. Glenn moved and Mr. Munson seconded a motion to forward all five 20102011 CoEE Commerce Award Proposals to the May 2011 CoEE Onsite Review
Panel institutional site visits and requested that the institutions consider
possibilities to collaborate or reduce the full number of proposals. The motion
was approved with all members of the Review Board present voting in favor of
the motion, with the exception of Mr. Williams, who recused himself from
voting.
Consideration of New Logo and Brand for the CoEE Program
CoEE Communications Committee member Ms. Wilson provided a summary of the
process to develop a rebrand of the CoEE Program to the SmartState Program.
On November 22, 2010, and December 6, 2010, the CoEE Communications Committee
met with a group of institutional representatives and other program stakeholders to
discuss updating the current CoEE Program brand and logo:
The Committee determined that the current brand and logo, which were approved in
2007, have not been effective tools for generating awareness about the program to the
majority of key demographic groups. However, based upon the input of institutional
representatives, the Committee determined that the formal program name, “South
Carolina Centers of Economic Excellence,” has been well-received by the academic
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research and development community, especially for the purposes of recruiting CoEE
Endowed Chairs, and should be retained for the purposes of formal program
correspondence and marketing by the institutions.
The Committee met on three more occasions in December and January with CHE staff
and Clare Morris Agency (CMA) staff for the purpose of creating a new general logo and
brand for the program.
The Committee ultimately settled on a proposed new general program brand, based on
the successful knowledge-based economic development initiative in Queensland,
Australia, which was led by the Honorable Dr. Peter Beattie: SmartState. The
Committee consulted with Dr. Beattie for his opinion on the new general program brand.
Dr. Beattie stated that it would indeed be an honor if the CoEE Review Board chose to
share the program name with its sister state.
The Committee entertained more than 50 new logo designs developed for and by CMA.
The proposed new program logo utilizes the colors of blue and green and shows a
stylized globe and geographic image of South Carolina. The longitudinal and latitudinal
lines along the globe form a forward-pointing arrow. The font of the text SmartState is in
bold type and is forward-leaning to emphasize the future.
The Communications Committee presents to the CoEE Review Board a recommendation
for the acceptance of a new general brand and logo for the S.C. Centers of Economic
Excellence Program:
•
Action on New Logo and Brand for the CoEE Program
¾ The CoEE Communications Committee moved to rebrand the CoEE Program as
the SmartState Program. After further discussion, by general consent, the
CoEE Review Board tabled the motion pending further development and review
by the CoEE Communications Committee.
Consideration of First of Two Possible Six-Month Drawdown Deadline Extension
Requests for Hydrogen & Fuel Cell Economy CoEE (USC)
President Pastides requested the first of two possible six-month Drawdown Deadline
extensions for the Hydrogen & Fuel Cell Economy CoEE (USC). Dr. Curtis stated that
USC was working hard to gather development support for this Center.
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•
Action on First of Two Possible Six-Month Drawdown Deadline Extension Requests
for Hydrogen & Fuel Cell Economy CoEE (USC)
¾ Mr. Williams moved and Mr. Voit seconded a motion to grant the first of two
possible Six-Month Drawdown Deadline Extension requests for the Hydrogen &
Fuel Cell Economy CoEE (USC), extending from March 1, 2011, to
September 1, 2011. The motion was approved with all members of the Review
Board present voting in favor of the motion.
Report of Type II Match Exchange for Renal Disease Biomarkers CoEE (MUSC)
MUSC and CHE staff presented as information to the CoEE Review Board a Type II
Match Exchange for the Renal Disease Biomarkers CoEE (MUSC). An MUSC
Foundation non-state match $500,000 and a Veteran’s Administration in-kind gift of
$204,390 had been exchanged for a gift of $422,629 from a single private donor, a
reconstituted in-kind gift from the Veteran’s Administration valued at $268,520, and
several smaller private donor gifts valued at $26,352.
•
No action taken
Report on CoEE Council of Chairs
In the interest of time, Dr. Kurfess presented a brief update on the CoEE Council of
Chairs, which included plans to engage the South Carolina Governor’s School for
Science and Mathematics in a summer internship program and the continued planning of
the CoEE Program National Conference in December 2011 in Charleston.
Program Updates: Certification of Matches and Draw Downs; December 31, 2009,
Biannual Match Report; Program Accounts and Balances; Conflict of Interest
Report
Mr. Bjorn reviewed the program financial summaries, noting that as of January 1, 2011,
of the $197.6 million the CoEE Review Board had awarded (which included 49 CoEEs
and 87 CoEE Endowed Chairs), $178.9 million in non-state matching funds had been
pledged, $160.6 million in pledges had been received, and $155 million in state funds had
been drawn down by the research institutions.
Mr. Bjorn briefly reviewed the December 31, 2010, Biannual Match Report. In the final
six months of the 2010 calendar year, the three senior research institutions collected
$9.6 million in non-state matching pledges; received $11.8 million in non-state matches;
and drew down state funds in the amount of $22 million. All CoEEs awarded during
fiscal years 2003 through 2008 have achieved 100% of total non-state matching pledges.
Mr. Bjorn provided an update on program accrued interest. Through December 31, 2010,
the Centers of Excellence Matching Endowment had accrued $27.3 million in interest.
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Thus far, the CoEE Review Board has obligated $17.6 million in interest for additional
proposals, all of which had been awarded. Another $4.1 million has been spent on
program operating expenses and institutional administration costs. Net interest revenue
was approximately $5.6 million, of which one-quarter ($1.3 million) must be dedicated to
CoEE Commerce Award funding. CHE staff projected that the Centers of Excellence
Matching Endowment was likely to be zeroed out by calendar year 2014.
•
No action taken
Other Business and Announcements
Chair Lackey asked Ms. Catherine Heigel to take Bobby Hitt’s place as a new member of
the CoEE Communications Committee. Chair Lackey also announced the resignation of
CoEE Endowed Chair Dr. John Ziegert at CU-ICAR. President Barker stated that
Clemson University had begun a hiring committee search to appoint a replacement.
Chair Lackey also announced that the Stroke CoEE at MUSC, through the work of CoEE
Endowed Chair Dr. Robert Adams, had achieved the milestone of its 1,000th stroke
teleconsult.
Chair Lackey thanked all individuals present for their gifts of time and energy to the
CoEE Program and to economic development in South Carolina.
Having no other business, Chair Lackey adjourned the meeting at 3:55 p.m.
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