MINUTES OF THE MEETING of the MICHIGAN STATE UNIVERSITY BOARD OF TRUSTEES June 7-8, 1984 w&tim President Mackey called the meeting to order in the Lincoln Room of the Kellogg Center at 4:31 p.m., June 7. Present: Trustees Crim, Dade, Fletcher, Lick (arrived at 4:53 p.m.) Martin (arrived at 5:10.p.m.), Reed, Sawyer and Wilson; President Mackey, Provost Winder, Vice Presidents Breslin, Cantlon,. Dickinson, Schonbein, Stewart, Thompson and Turner; Associate Vice President and Secretary Wilkinson, General Counsel Carr, Assistant to the President Carlisle, and Faculty Liaison Group. 1. Approval of Proposed Agenda Trustee Reed moved approval of the proposed agenda, seconded by Trustee Crim. Approved by a vote of 6 to 0. President Mackey reviewed the changes in the agenda material for the Board of Trustees. President Mackey announced an Executive Session would be held Friday afternoon following the action session. 2. Approval of the Minutes of April 5-6, 1984, April 14, 1984, May 7, 1984, and May 21, 1984 Trustee Reed moved approval of the April 5-6, 1984, Minutes. Seconded by Trustee Crim. The Minutes were approved by a vote of 6 to 0. Trustee Sawyer moved approval of the April 14, 1984, Minutes. Seconded by Trustee Wilson. The Minutes were approved by a vote of 6 to 0. Trustee Reed moved approval of the May 7, 1984, Minutes. Seconded by Trustee Sawyer. The Minutes were approved by a vote of 6 to 0. Trustee Reed moved approval of the May 21, 1984, Minutes. Seconded by Trustee Sawyer. The Minutes were approved by a vote of 6 to 0. The Board of Trustees convened at 3:37 p.m. for the Audit Committee meeting followed by the Investment Committee meeting. Trustee Sawyer moved the agenda be amended to move Item 11. A. (5), Presidential Search Committee report, to Item 9.1. Trustee Dade seconded. Approved by a vote of 8 to 0. The Board recessed at 5:54 p.m. The Board reconvened at 8:34 a.m., June 8, in the Lincoln Room of the Kellogg Center for the Land and Physical Facilities Committee meeting. Present: Trustees Crim, Dade, Fletcher, Lick, Martin, Sawyer, Reed, and Wilson; President Mackey, Provost Winder, Vice Presidents Breslin, Cantlon, Dickinson, Schonbein, Stewart, Thompson and Turner; Associate Vice President and Secretary Wilkinson, General Counsel Carr, Assistant to the President Carlisle, Faculty Liaison Group, Student Liaison Group, Dr. Robert Lockhart, Director of Planning and Budgets, and Dr. Lawrence Von Tersch, College of Engineering. 3. Budget and Financial Matters President Mackey introduced the discussion on the budget and financial matters and called upon Dr. Robert Lockhart, Director of Planning and Budgets, to present a historical overview on the funding of the University. continied - - - I I I i f J ii 10084 Minutes of the Meeting, cont. June 7-8, 1984 3. Budget and Financial Matters, cont. Dr. Lockhart summarized for the Board the relative support by the State of j Michigan for higher education from the mid 1960fs to the present. He reviewed the fiscal history of the University for the same period including enrollment changes, program emphasis and change and sources of funding for the University general fund programs. Dr. Lockhart also reviewed the StateTs financial support for the main campus during the 1970fs and the support received for "Line Itemn programs in the medical areas. He summarized the administration^ 1981 recommendations in the Coordinated Proposal and the Modified Coordinated Proposal as adopted by the Board of Trustees. Dr. Lockhart completed his background presentation comparing the financial support received by the MSU campus compared with Wayne State University and the University of Michigan - Ann Arbor campus. (Copy of his remarks on file in the SecretaryTs Office.) Dr. Lockhart presented a 3-year budget document for fiscal 1984-85 thru 1986-87. This document summarizes revenue and expenditure projections for the 3-year period and is being used as a budget planning tool. (Copy on file in the Secretary's Office.) Dr. Lockhart then reviewed the 1984-85 General Fund Budget Planning Update. He summarized the changes from the Board of Trustees meeting of April 5-6, 1984, and discussed the "Forward Funding" concept. (Copy of materials on file in the Secretary's Office.) 3.1 College of Engineering Dr. Lawrence Von Tersch, Dean of the College of Engineering, using a slide presentation, gave an academic program review of the College of Engineering. The Board recessed at 12:08 p.m. The Board reconvened for its action session at 1:27 p.m. in the Board Room of the Administration Building. Trustee GPA Awards for Spring Term 1984 Elizabeth A. Bird Christopher A. Newlon Kimberly A. Garver John M. Andersland Wendy L. Frankel Trustee GPA Awards In an informal ceremony, President Mackey presented Trustee GPA Awards to the following students graduating at the top of their class at the 1984 Spring term commencement: First Highest Elizabeth A. Bird, Engineering Arts, 4.000 average, graduate of Milan High School, Milan, MI Christopher A. Newlon, Computer Science, 4.000 average, graduate of Alexis I. duPont High School, Wilmington, DE Second Highest Kimberly A. Garver, Nutritional Sciences, 3.9938 average, graduate of North Farmington High School, Farmington, MI Third Highest John M. Andersland, Botany and Biochemistry, 3.9890 average, graduate of East Lansing High School, East Lansing, MI Fourth Highest Wendy L. Frankel, Lyman Briggs School - Biology Field of Concentration, 3.9878 average, grad- uate of Southfield-Lathrup High School, Lathrup Village, MI 5. President Mackey then introduced Dr. N. Edward Tolbert, professor in Biochemistry, and recognized him as a new member of the National Academy of Sciences* i 6. Public Comments (a) Sharon Hall, MSU senior, addressed the concern of the student body regarding sexual assault on campus. (b) Mary Ann Ellinwood, MSU alumna, expressed concern for making Kresge Art Center accessible to handicapped people. continued ----- Minutes of the Meetings cont. June 7-8, 1984 6. Public Comments, cont. (c) Beverly Adams, MSU senior with art related major, added to the above thoughts. (d) Steven Belkoff, -MSU student and Engineering Council President, spoke on the proposed College of Engineering surcharge. (e) John Kasenene, MSU graduate student, addressed the topic of visiting South African Officials and the impact of the McGoff name on the Festival Stage relating to their visit. (f) Valerie Colbert, MSU senior and African Studies Center graduate assistant, expressed her ideas on the College of Nursing graduation ceremonies being held from the McGoff Festival Stage. (g) Judith Stoddart5 MSU senior and Rhodes Scholar, gave her views as a graduating senior and expressed her gratitude for the opportunities that MSU had afforded her to develop herself and her goals. 7. Presidential Search Committee President Mackey introduced Trustee Bade, Chair1 of the Presidential Search Committee. Trustee Dade moved that the Board adopt the $50,000 preliminary budget approved at the May 21 meeting as the budget for the Presidential Search Committee and directed the administration to charge such costs as incurred to the appropriate cost centers. Trustee Sawyer seconded. Approved by a vote of 8 to 0. Trustee Dade made another motion that the Presidential Search Committee, advisory to the Board of Trustees, move the appointment of the following persons to the Presidential Search Committee: (a) Trustees Crim, Dade, Fletcher, Lick, Martin, Reed, Sawyer and Wilson (b) Student, Charles R. Krupka (c) Alumna, Janet M. Topolsky (d) Academic Administration, Dean Richard Lewis (e) Faculty, Patricia Barnes-McConnell and G. J. (Mike) Karabatsos Trustee Lick seconded the motion. Approved by a vote of 8 to 0. Trustee Dade announced that the first Presidential Search Committee meeting will be held Saturday, June 16, at 10:00 a.m. in the Kellogg Center in a room to be announced. He also announced that John E. (Terry) Denbow would serve as the Press Liaison person for the Presidential Search Committee. ,: As previously announced, a Personnel Committee would be formed of Trustees Lick, Reed, Dade, a faculty representative, and G. J. (Mike) Karabatsos. The first meeting of this committee will be held at 4:30 p.m., Friday, June 8, in Room 443B Administration Building. Trustee Dade then expressed the sincere appreciation of the Board for the fine assistance of Mrs. Bea Mott in helping with the Presidential Search Committee1s work thus far. 8. ACTION ITEMS A. PERSONNEL ACTION (1) Appointment Michael K. Moch, Professor, Management, with tenure, at a salary of $43,000 per year on an AY basis, effective September 1, 1984. Approved Appointments to the Presidential Search Committee John E. Denbow | to Serve as j Press Liaison | for the j; Presidential I Search .{• Committee Personnel | Actions | Appointment I I I i i 10086 Personnel Actions Change of Status 8, ACTION ITEMS, cont. June 7-8, 1984 A. PERSONNEL ACTION, cont. (2) Change of Status Approved for James H. Anderson, Professor, Agricultural Engineering, and Dean, College of Agriculture and Natural Resources, at a salary of $76,000 per year on an AN basis, the addition of the title of Vice Provost for Agriculture and Natural Resources, effective July 1, 1984. .' Approved for Charles B. Rossiter, Associate Vice President for Development and Director of Development, an additional title of Associate Vice President for Development, and an increase in salary of $59,000 per year, on an AN basis, effective June 1, 1984. Approved by a vote of 7 to 1 on motion by Trustee Sawyer, seconded by Trustee Lick. Trustee Fletcher voted No. ^j Academic Promotions (3) Academic Promotions The following promotions, which include the award of tenure, are recommended to be effective July 1, 1984: TO ASSOCIATE PROFESSOR Agriculture and Natural Resources Eric W. Crawford Eileen P. vanRavenswaa Michael T. Weber James G. Steffe James E. Jay Steven J. Bursian Russell D. Freed Jonathan B. Haufler William W. Taylor Bruce Harte Joseph D. Fridgen Arts and Letters Peter Marabell Susan E. Metros Barbara K. Abbott James B, Forger Charles H. Ruggiero Dennis P. Seniff Business Edmund Outslay Raymond S. Schmidgall Education Crystal F. Branta Deborah L. Feltz Linda M. Anderson Margaret B. Floden Engineering Reinier J. Boumeester Lionel M. Ni Rohan C. Abeyaratne Agricultural Economics Agricultural Economics Agricultural Economics Agricultural Engineering; Food Science and Human Nutrition Agricultural and Extension Education Animal Science Crop and Soil Science Fisheries and Wildlife Fisheries and Wildlife Packaging Park and Recreation Resources American Thought and Language : TY . ; • Art Linguistics and Germanic, Slavic Asian and African Languages; Philosophy Music Music Romance and Classical Languages Accounting Hotel, Restaurant and Institutional Management Health and Physical Education Health and Physical Education Teacher Education; Counseling, Educational Psychology and Special Education Teacher Education Civil and Sanitary Engineering Computer Science Metallurgy, Mechanics and Materials Science «!.••] 8- ACTION ITEMS, cont. June 7-8, 1984 A, PERSONNEL ACTION, cont, (3) Academic Promotions, cont* TO ASSOCIATE PROFESSOR 145087 Human Medicine Patrick C. Alguire James E. Mayle Kenneth A. Schwartz Dennis L. Murray Natural Science Dennis W. Fulbright John Allison Katharine C. Hunt Paul M. Hunt Lai-Sang Young Frances F# Ekern Donald 0, Straney Nursing Marilyn L. Rothert Osteopathic Medicine William M. Falls Jasper I. Lillie Kenneth D. Stringer Social Science Vincent J. Hoffman Merry A. Morash Carol J. Haddad Antonio A. Nunez Paul P. Freddolino Anthony M. Bauer Veterinary Medicine Thomas H. Herdt Roger K. Maes Mark D. Kittleson Medicine Medicine Medicine Pediatrics and Human Development Botany and Plant Pathology Chemistry Chemistry Chemistry Mathematics Natural Science Department Zoology Anatomy Family Medicine Pediatrics Criminal Justice Criminal Justice Labor and Industrial Relations Psychology Social Work Urban Planning and Landscape Architecture Large Animal Clinical Sciences Microbiology and Public Health; Animal Health Diagnostic Laboratory Small Animal Clinical Sciences Vice President for Student Affairs and Services Linda M. Forrest Counseling Center (4) Tenure Recommendations The following actions are recommended by the departmental chairpersons and the deans in accordance with the tenure rules* (a) Associate Professors who acquire tenure with the reappointment, effective September 1, 1985: F. Owen Irvine George C* Stockman Brian S. Thompson Christopher Somerville Henry E. Beckmeyer William J. Somerset Rose T. Zacks Frank A. Nickels Economics Computer Science Mechanical Engineering Botany and Plant Pathology; Plant Research Laboratory Osteopathic Medicine Department Osteopathic Medicine Department Psychology Large Animal Clinical Sciences Personnel Actions Tenure Recommendation I I I 1 10088 8c ACTION ITEMS, cont. June 7-8, 1984 A. PERSONNEL ACTION, cont, (3) Academic Promotions, cont, TO ASSOCIATE PROFESSOR, cont. (b) Assistant Professors who acquire tenure with the reappointment, effective September 1, 1985: Anne C. Meyering Gretchen Barbatsis Jeanne Brown Clare E. Collins Carol K. Lyon Mildred D. Omar History Telecommunication Family and Child Ecology; Cooperative Extension Service Nursing Nursing Nursing Approved by a vote of 7 to 1 on motion by Trustee Lick, seconded by Trustee Sawyer, Trustee Fletcher voted No. (5) Administrative Appointment It is recommended that Roger E. Wilkinson be appointed Acting Vice President for Finance and Operations and Acting Treasurer effective July 9, 1984, at an annual salary of $73,600. Mr Wilkinson will continue to serve as Secretary of the Board of Trustees. RESOLVED that the above recommendation be approved. Approved by a vote of 8 to 0 on motion by Trustee Martin, seconded by Trustee Wilson. B. GIFT, GRANT AND CONTRACT REPORT Gifts and grants totaled $14,626,889. Approved by a vote of 8 to 0 on motion by Trustee Reed, seconded by Trustee [Sawyer. C. BIDS AND CONTRACT AWARDS (1) North Kedzie Fire Safety Alterations The following bids were received on May 10, 1984, for Fire Safety Improvements in Kedzie Hall North. This project provides for installing fire rated doors and frames at several locations, fire sprinklers in various storage rooms, and smoke detectors and fire dampers in air handling ducts. These improvements will enhance the fire safety protection for the structure and building occupants. Roger E. Wilkinson Appointed Acting Vice President for Finance and Operations and Acting Treasurer Effective July 1, 1984. Will Continue to Serve as Secretary of the Board of Trustees. Approved North Kedzie Hall Fire Safety Alterations Contractor Base Bid Hanel-Vance Construction Co. Haussman Construction Co. McNeilly Construction, Inc. Irish Construction Co., Inc. ResCom Construction, Inc. $77,860 78,700 79,816 82,800 96,635 Notification and/or plans and specifications were sent to the offices of Builders Exchange and Dodge Reports in Lansing. The following minority organizations were also notified: Inner-City Business Improvement Forum, Michigan Minority Business Council, Association of Minority Contractors, and the Greater Lansing Minority Association. No minority or women-owned businesses submitted bids. The subcontracting goals for this proj-ect are five percent Minority Business Enterprises (MBE) and five percent Women Business Enter- prises (WBE). The low bidder has certified that it will comply with the requirements. The MBE and W3E subcontracts will total approxi- mately $7,800. continued - - - i i 10089 8. ACTION ITEMS, cont. June 7-8, 1984 C. BIDS AND CONTRACT AWARDS (1) North Kedzie Fire Safety Alterations, cont. It is recommended that a contract in the amount of $77,860 be awarded to Hanel-Vance Construction Co. of Okemos, Michigan, and the following budget be established: Contractor - Hanel-Vance Construction Co. Design, Coordination and Inspection Contingency Total $ 77,860 10,250 16,090 $104,200 This project cost was estimated at $110,000 by the Physical Plant Division in August 1975. Funding for this project is by a special appropriation from the Michigan Department of Management and Budget. RESOLVED that the above contract be awarded and project budget be established as recommended. Approved by a vote of 8 to 0 on motion by Trustee Sawyer, seconded by Trustee Martin. (2) Spartan Stadium Restoration of Seating in Upper Deck The following bids were received on May 17, 1984, for Deck and Seating Restoration of the Upper Decks in Spartan Stadium. This project includes removing existing wood seats, sandblasting rusted steel surfaces and expansion joints, installing waterproof traffic topping and new aluminum seating at the east and west upper decks. This work, which is the third phase of stadium restoration, will improve the appearance, provide a protective coating to the top of the steel upper decks, and provide more comfortable seating. Approved Spartan Stadium Restoration of Seating in Upper Deck Contractor Bornor Restoration, Inc. The Grunwell-Cashero Co., William H. Kelly Company Inc. Base Bid $715,130 821,344 831,000 Notification and/or plans and specifications were sent to the offices of Builders Exchange and Dodge Reports in Lansing. The following minority organizations were also notified: Inner-City Business Improvement Forum, Michigan Minority Business Council, Association of Minority Contractors, and the Greater Lansing Minority Association. No minority or women-owned businesses submitted bids. The subcontraction goals for this project are five percent Minority Business Enterprises (MBE) and five percent Women Business Enter- prises (WBE). The low bidder has certified that it will comply with the requirements. The MBE and WBE subcontracts will total approximately $71,500. It is recommended that a contract in the amount of $715,130 be awarded to Bornor Restoration, Inc., of Lansing, Michigan, and that the following budget be established: Contractor - Bornor Restoration Design, Coordination and Inspection Contingency Total $715,130 36,000 35,870 $787,000 This project cost was estimated $761,000 by the Physical Plant Division in April 1984. continued - - ~ I I I I I 10GS0 Establishment of the Endocrine Research Center Effective July 1, 1984 Administered Jointly by Departments of Physiology and Animal Science :8. ACTION ITEMS, cont. June 7-8, 1984 C. BIDS AND CONTRACT AWARDS, cont. (2) Spartan Stadium Restoration of Seating in Upper Deck, cont. Funding for this project will be from the Intercollegiate Athletics funds. RESOLVED that the above contract be awarded and project budget be established as recommended. Approved by a vote of 8 to 0 on motion by Trustee Martin, seconded by Trustee Sawyer• 9. D. OTHER ITEMS FOR ACTION (1) Establishment of the Endocrine Research Center Dr. 'R. H. Nelson, Chairperson of the Department of Animal Science, Dr. H. V.' Sparks, Chairperson of the Department of Physiology, Dr. •R, G. Gast, Director of the Agricultural Experiment Station, and Dean James H. Anderson, College of Agriculture and Natural Resources, recommend that the University give official recognition to the endocrine research unit as a formal entity. Deans Byerrum, Keller, Magen, and Weston join in this recommendation, also. On March 27, 1984, this proposal was discussed with the Executive Committee of Academic Council which advised that no further consultation with academic governance was necessary. This successful unit of the University has functioned on this campus for over 25 years, contributing excellent research in the area of reproductive and developmental biology. This recommendation seeks official recognition of the endocrine research unit by the Board of Trustees as a multidisciplinary unit jointly administered by the Departments of Physiology and Animal Science. Recognition involves no additional budget commitment. RESOLVED that the Endocrine Research Center, administered jointly by the Departments of Physiology and Animal Science, be established effective July 1, 1984. Approved Packaging Building Addition Architect -— Ralph Calder and Associates, Inc. of Detroit Approved Completion of Bessey Hall Air Conditioning Student Information System, and Microcomputer Laboratories Projects on a Funds Available Basis Approved by a vote of 8 to 0 on motion by Trustee Lick, seconded by Trustee Sawyer. (2) Packaging Building Addition - Architect It is the recommendation of the Ad Hoc Architectural Evaluation Committee that the University engage Ralph Calder and Associates, Inc., of Detroit, Michigan, as the consulting architectural/ engineering firm for the Packaging Building addition. RESOLVED that the above recommendation be approved. Approved by a vote of 8 to 0 on motion by Trustee Martin, seconded by Trustee Lick. (3) Funding of Special Projects The University recognizes an extensive list of projects which it attempts to complete on a funds available basis. This year, the following three projects will be given priority. (Detail distributed with the agenda.) 1. Bessey Hall Air Conditioning 2. Student Information System 3. Microcomputer Laboratories $150,000 200,000 200,000 RESOLVED that the above recommendation be approved. Approved by a vote of 8 to 0 on motion by Trustee Lick, seconded by Trustee Martin. i i 10091 Approved Interim Budget Authorization for 1984-85 at 1983-84 Expenditure Levels Until 1984-85 Budget has Been Established Approved Financing for Plant Research Laboratory Addition Approved Development Fund Reorganization 9. D. OTHER ITEMS FOR ACTION, cont. June 7-8, 1984 (4) Continuing Budget Authorization for 1984-85 It is recommended that interim budget authorization be granted which will permit the operation of the University at the 1983-84 budget expenditure levels until the 1984-85 budgets have been established and approved by the Board of Trustees. 2^^m This expenditure authorization will be as follows: General Fund Agricultural Experiment Station Cooperative Extension Service Intercollegiate Athletic Program $240,784,960 20,384,320 24,153,377 7,235,000 RESOLVED that the above recommendation be approved. Approved by a vote of 8 to 0 on motion by Trustee Martin, seconded by Trustee Lick. (5) Financing Plant Research Laboratory Addition Distributed with the agenda is background information on this subject from the Office of the Vice President for Finance and Operations and Treasurer. It is recommended that the administration be authorized to arrange the sale of 10-year variable rate demand bonds ("Put Bonds") supported by a backup credit facility such as a bank letter of credit. It is further recommended that this program be arranged during the summer months through Citizens Trust Company in its capacity as the University's debt service trustee. Arrangements to be subject to final approval by the Board of Trustees. RESOLVED that the above recommendation be approved. Approved by a vote of 7 to 0 on motion by Trustee Sawyer, seconded by Trustee Lick. Trustee Martin left the room prior to this vote, (6) Development Fund Reorganization The Development Fund is reorganizing administratively and realigning the duties of several professionals in order to provide closer direction of an expanded staff and a much more extensive program. Under the reorganization plan, the Director of Corporate Relations and the Director of Foundation Relations will be assigned additional supervisory duties. These new duties will make the positions similar to the Director of Major Gifts, currently designated as an Executive-Management position. The plan calls for the designation of these two directorships as Executive-Management. Under the plan, also, the Director of Development, an Executive-Management position, will become the chief operating officer of the MSU Development Fund and will be given the additional title of Associate Vice President for for Development. The Development Fund is adding no new staff, nor are any new positions being created. It is, therefore, recommended that the Director of Development be given the additional title of Associate Vice President for Development and that this position be designated Executive- Management. It is also recommended that the positions of Director of Corporate and Director of Foundations Relations be designated as Executive-Management. RESOLVED that the above recommendations be approved. Approved by a vote of 7 to 0 on motion by Trustee Lick, seconded by Trustee Sawyer. Trustee Martin left the room prior to this vote. i i i Approved Stadium Club Construction 9. D. OTHER ITEMS FOR ACTION, cont. June 7-8, 1984 (7) Stadium Club Construction As reported in each of Vice President Dickinson's past two annual reports to the Board of Trustees, the Ralph Young Fund Advisory Committee has been planning to construct a Stadium Club to serve as an incentive for membership in the new Biggie Munn Club. The annual membership fee for individuals will be $3,000. The annual fee for corporate memberships will be $5,000. The income generated through membership fees is expected to cover the estimated $400,000 cost of constructing and furnishing the facility in a period of approximately two years. The payment period will be determined by the extent to which the total cash is reduced by gifts of labor and material. The facility is expected to increase annual income for athletics by approximately $300,000. Additional background information was provided to the Trustees in a June 1 letter from Vice Presidents Dickinson and Thompson. Construction must begin in June of 1984 if the facility is to be completed in time for use during the 1984 season. RESOLVED that the administration is authorized to enter into appropriate arrangements to alter existing space in the Stadium to serve as the Spartan Club facility as described in Vice Presidents Dickinson and ThompsonTs June 1 letter to the Trustees. Final details concerning contractual arrangements and budgets are to be reported to the Board. Approved Bank Signatory- Authorization Effective July 9, 1984 Approved by a vote of 8 to 0 on motion by Trustee Wilson, seconded by Trustee Dade. (8) Bank Signatory Authorization It is hereby authorized that, effective July 9, 1984, Roger E. Wilkinson, Acting Vice President for Finance and Operations and Acting Treasurer, is empowered to establish and maintain bank accounts as necessary for the orderly conduct of the business of Michigan State University. The authorized signatories (both actual and facsimile signatures) are Roger E. Wilkinson, Acting Vice President for Finance and Operations and Acting Treasurer, and Stephen H. Terry, Assistant Vice President for Finance. This action supersedes all prior Board actions relating to authorized bank signatories. RESOLVED that the bank signatory authorization be approved as recommended. Approved by a vote of 8 to 0 on motion by Trustee Fletcher, seconded by Trustee Dade. 10. REPORTS TO THE BOARD A. Board Committee Reports (1) Audit Committee The Committee reviewed a report from the BoardTs auditors, Arthur Young & Company, on the scope of work to be performed in auditing the University's financial records for 1983-84. The Committee also reviewed the auditor's proposed fee of $90,000 to perform this work. In addition, the Committee reviewed the status of implementation of recommendations from last year's management letter. 1W93 Investment Committee: Approved Revision of Board Policy Number 01-07-01 to incorporate Section VIII to Govern Endowment Spending Land and Physical Facilities Committee: Approved . Gift from Kraft, Gadola, and Sode of 2.65 Acres of Land at Northeast Corner of Holt and College Roads in Alaiedon Township, Ingham County Approved Sale of 7.2 Acres of Land on Pine Tree Road, Delhi Township, Ingham County Approved Sale of 4.7 Acres in South Haven Area to Polezoes Construction Company Approved Purchase of .7 of an Acre Plus Facili- ties, South of Ludington for Research by Department of Fisheries and Wildlife 10. REPORTS TO THE BOARD, front. June 7-8, 1984 ' A. Board Committee Reports, cont, (2) Investment Committee The Committee discussed a proposed Endowment Spending Policy and voted to recommend to the Board that the policy be adopted and incorporated into the Boardfs Policy Manual. The Committee also reviewed a report on investment performance of the pooled cash portfolio. RESOLVED that Board Policy Number'.01-07-01 be revised as recommended to incorporate a new Section VIII to govern endowment spending. Approved by a vote of 8 to 0 on motion by Trustee Wilson, seconded by Trustee Sawyer. (3) Land and Physical Facilities Committee The members of the Trustees Land and Physical Facilities Committee at their meeting this morning approved the following actions: (a) Accepted a gift of 2.65 acres of land located at the Northeast corner of Holt Road and College Road in Alaiedon Township, Ingham County, from Messrs. Kraft, Gadola, and Sode, Approved the acceptance of this gift by a vote of 8 to 0 on motion by Trustee Lick, seconded by Trustee Reed. (b) Approved the sale of 7.2 acres of land located on Pine Tree Road, Delhi Township, Ingham County, to Mr. Milton B. Embs, for a sum of $19,569. Approved the sale of this land by a vote of 8 to 0 on motion by Trustee Lick, seconded by Trustee Reed. (c) Approved the sale of 4.7 acres of land in the South Haven area to the Polezoes Construction Company, Inc., for the sum of $51,430. Approved the sale of this land by a vote of 8 to 0 on motion by Trustee Lick, seconded by Trustee Crim. (d) Approved the purchase of approximately .7 of an acre of land, plus facilities, located South of Ludington, Michigan, at a price of $40,000 for the continuation of research by the Department of Fisheries and Wildlife. Approved the purchase of this land and facilities by a vote of 8 to 0 on a motion by Trustee Lick, seconded by Trustee Dade. (4) Bylaws Committee Mr. Thompson has recently drafted statements of policy on faculty rights and responsibilites on Board/University mission (philosophy) for consideration to exist separately from "operational" Bylaws. He has also prepared Bylaws relatively barren of policy statements for review. These documents should be forwarded for your comments. It is the Committee's intent to refine this work with help from L. W. Carr and to have a product for consideration and committee review. Early fall should see results of this effort. continued - - - I I I i ±0094 10. REPORTS TO THE BOARD, cont. June 7-8, 1984 A. Board Committee Reports, cont. The issues which need Trustee views include: (a) Should the Bylaws of the Board be "operational11 only—or should the fundamental policies on faculty and students rights and responsibilities remain in the Bylaws? (b) Who are the "Board officers"—contrasted with "University officers"? It makes a difference both with respect to appointment, duties, and structure. (c) The anti-discrimination policy is, at best, fussy and not situated in the proper section—True/False Please feel free to expand these observations in your review. Adjourned at 4:03 p.m. Secretary