MINUTES OF THE MEETING of the MICHIGAN STATE UNIVERSITY BOARD OF TRUSTEES July 26-27, 1984 10095 I President Mackey called the meeting to order in the Lincoln Room of the Kellogg Center at 4:29 a. p.m... on Thursday, July 26. Present: Trustees Dade, Fletcher, Lick, Martin (4:55 p.m.), Reed, Sawyer and Wilson; President Mackey, Provost Winder, Vice Presidents Breslin, Cantlon, Dickinson, Schonbein, Stewart and Turner; Acting Vice President and Secretary Wilkinson, General Counsel Carr, former Vice President Thompson, Faculty Liaison Group, Student Liaison Group, Dr. Robert Lockhart, Director of Planning and Budgets, and Dr. James Potchen, Chairperson of Radiology. Absent: Trustee Crim. 1. Approval of Proposed Agenda Trustee Sawyer moved approval of the proposal agenda, seconded by Trustee Wilson. Approved by a vote of 6 to 0. 2. Approval of the Minutes of June 7-8, 1984 Trustee Lick moved approval of the June 7-8, 1984, Minutes. Trustee Fletcher requested that the June 7-8, 1984, Minutes be amended to show that he questioned why the action taken in the April 6, 1984, Executive Session relating to authority to settle litigation was not part of the regular Minutes of the Board. The Minutes were approved as amended by a vote of 6 to 0. 3. Presidential Search Committee Report Trustee Dade, Chairperson of the Presidential Search Committee, distributed a report and answered questions pertaining to this report (copy on file in the Secretaryfs Office) . 4. Public Comments Peter Taylor, student in James Madison College, expressed his views on the level of tuition rates (copy of his presentation is on file in the SecretaryTs Office). 5. Information and Discussion Items A. NMR: Revised Proposal Vice President Schonbein and Dr. Potchen, Chairperson of Radiology, made a presentation on the NMR Revised Proposal. B. Rights and Responsibilities Documents Provost Winder, Vice Presidents Cantlon and Turner, and General Counsel Carr reviewed the rights and reponsibilities documents: The Rights and Responsibilities of the Faculty of Michigan State University (FRR) Graduate Students Rights and Responsibilities at Michigan State University (GRR) Academic Freedom for Students at Michigan State University (AFR) 7. Budget and Financial Matters President Mackey called upon Dr. Robert Lockhart to summarize the 1984-85 budget guidelines. Dr. Lockhart stated that while the recommended budget guidelines were distributed with the agenda, the Admimistration was now presenting an alternate plan. This plan was developed following a meeting on July 25 of University representatives with Mr. Robert Naftaly, Director of the State Department of Management and Budget, and his staff. The purpose of this meeting was to discuss the University-Administration^ 1984-85 budget recommendations and its proposal to raise resident, undergraduate tuition rates. During the meeting, the forward funding concept was discussed and Mr. Naftaly stated that the continuation of the forward funding authority in 1984-85 was based on the implied understanding that MSU would use the full forward funding of $15.5 million authorized in the appropriation from the State for fiscal 1984-85. Mr. Naftaly stated that MSU could rely on the contin- uation of the forward funding authority indefinitely. In light of this strong assurance from the Executive Branch, the shared commitment to; maintain the quality of academic programs at MSU, and the shared concern to contain I costs to the student, the Administration presented this alternative plan which uses I the full forward funding authority in lieu of an increase in resident, undergraduate • tuition (copy of alternative budget proposal is on file in the SecretaryTs Office). I Dr. Lockhart summarized the proposed 1984-85 General Fund budget as follows: The proposal is based upon estimated funds available of $255,962,834, which includes ] continued - 1 Minutes of the Meeting, cont. July 26-27, 1984 7. Budget and Financial Matters, cont. revenues from State appropriations of $151,906,696 and student fees estimated at $83.5 million. The estimated revenues include the full forward funding authority of $15,544,736. The proposed expenditure increase include approximately $11.4 million for compensation adjustments, program allocations of $2,850,000, and a apecial allocation to the College of Engineering of $1,440,000. The adjusted expenditure base totals $266,536,972. This base will be reduced by permanent base budget reductions of 1.5% in the academic areas and 2.5% in the nonacademic areas plus cash management adjustments as required to reduce the expenditure base to the funds available, presenting a balanced budget for the fiscal year. Following the above presentation, Trustee Sawyer shared with the Board a letter dated July 26, 1984, that she had received from Mr. Naftaly in which he stated that he welcomed the opportunity to discuss MSU's fiscal situation in greater detail with members of the Board of Trustees and other representatives of the University (copy on file in the Secretaryfs Office). The Trustees then discussed the alternative proposal in depth, including the risk of using the full forward funding authority. The Trustees also discussed student access to the University and the need to maintain the commitment to academic quality. Several Trustees recommended that an approach be developed \to .:. to continue to review the needs of the University and to communicate this informa- tion to representatives of both the Executive Branch and the Legislative Branch of the State Government. It was agreed that this matter would be further discussed by the Board of Trustees at its action session on Friday, July 27. President Mackey then called upon Professor John Henderson, representing the University Committee on Faculty Affairs. Dr. Henderson indicated that a letter sent to Provost Winder outlining the recommendations of the University Committee on Faculty Affairs was included with the proposed budget, guidelines distributed to the Trustees. He stated that the Committee was in considerable agreement with the administration's budget proposal; however, the Committee recommends a 7% faculty salary adjustment rather than the 5% included in the administration's proposal. The Board recessed at 6:17 p.m. for dinner, followed by an Executive Session. The Board reconvened at 8:10 p.m., July 27, 1984, for its action session in the Board Room, Administration Building. Trustee Lick arrived at 8:29 a.m. Absent: Trustee Crim. 9. A. PERSONNEL ACTIONS Personnel Actions Appointments Appointments 1. Eugene Corporon, Professor, Music, with tenure, at a salary of $38,000 per year on an AY basis, effective September 1, 1984. Transfers and Changes in Assignment 2. L. Dwight Schwartz, Professor, Animal Health Diagnostic Laboratory; Pathology; Cooperative Extension Service, with tenure, at a salary of $55,000 per year on an AN basis, effective August 1, 1984. 3. John B. Tasker, Professor, Pathology, and Dean, College of Veterinary Medicine, with tenure, at a salary of $85,000 per year on an AN basis, effective October 1, 1984. Transfers and Changes in Assignment 1. Approved an additional title of Acting Dean, Lifelong Education Programs, with a salary increase from $64,250 to $67,550 per year on an AN basis, for Judith Lanier, Professor, Teacher Education; Dean, College of Edcuaition, effective August 1, 1984. Approved by a vote of 5 to 1 on motion by Trustee Sawyer, seconded by Trustee Dade. Trustee Fletcher voted No. 9. B. GIFT, GRANT AND CONTRACT REPORT Gifts and grants totaled: $10,134,625. RESOLVED that the above be approved. Approved by a vote of 7 to 0 on motion by Trustee Reed, seconded by Trustee Martin. • i i i 9. C. BIDS AND CONTRACT AWARDS July 26-27, 1984 (1) University Village Window Replacement The following bids were received on June 21, 1984, for Replacement of Windows in University Village Apartments. This project provides for replacing the existing deteriorated single glazed windows with new double glazed aluminum windows. The installation of new windows will reduce energy consumption and increase occupant comfort. Additionally, the new windows are fabricated with a thermal break between the exterior and interior components which eliminates condensation on the interior: window face. Approved University Village Window Replacement 1 Contractor Acorn Building Components, Inc. Sullivan Ind., Inc. Metal Building Specialties, Inc. Base Bid $239,000 272,000 277,996 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. Acorn Building Components, Inc., the low bidder, is a Women Business Enterprise. No minority owned businesses submitted bids. Due to the specialized nature of this project, it was determined that there were no subcontracting opportunties. It is recommended that a contract in the amount of $239,000 be awarded to Acorn Building Components, Inc., of Detroit, Michigan, and that the following budget be established: Contractor - Acorn Building Components,. Inc. Design, Coordination and Inspection Contingency Total $239,000 13,950 23,050 $276,000 This project was estimated by the Housing and Food Services Division at $350,000 in April 1984. Funding for this project will be from the Auxiliary Activities Fund. RESOLVED that the above contract be awarded and project budget be established as recommended. Approved by a vote of 7 to 0 on motion by Trustee Sawyer, seconded by Trustee Reed. (2) Union Building; Window Replacement The following bids were received on July 11,. 1984, for Replacement of Windows in the Union Building. This, project provides for replacing the existing deteriorated single glazed windows with new double glazed aluminum windows. The installation of new windows will reduce energy consumption. Additionally, the new windows are fabricated with a thermal break between the exterior and interior components which eliminates condensation on the interior window face. Approved Union Building Window Replacement Contractor Base Bid Alternate 1 Alternate 2 Pontiac Glass, Inc. Architectural Building Products, Inc. Metal Building Specialties Co. Koerts Glass & Paint Co., Inc. $263,800 332,552 340,221 396,399 $14,200 9,495 8,731 19,950 $144,000 105,090 146,458 174,000 Alternate 1 is an add for furnishing aluminum replacement sills, add for encasing the window frames, sills, and trim in Corian. Alternate 2 is an Ralph Calder & Associates, Inc., the professional services contractor, estimated the construction cost at $300,000 in April 1984. Notification and/or plans and specifications were sent to the offices of Construction Association of Michigan in Detroit, Builders Exchange in Lansing, Kalamazoo and Grand Rapids, and Dodge Reports in Detroit, Kalamazoo, Grand Rapids, Flint, and Lansing. The following minority organizations were also notified: Inner City Business Improvement Forum, Michigan Minority Business Council, and the Association of Minority Contractors. No minority or women owned businesses submitted bids. Due to the specialized nature of this project, it was deterimined that there were no subcontracting opportunities. continued - - - 1 40098 Approved Parking Improvements South of Pesticide Research Center 9. C. BIDS AND CONTRACT AWARDS, cont. July 26-27, 1984 (2) Union Building Window Replacement5 cont. It is recommended that a contract in the amount of the Base Bid of $263,800 be awarded to Pontiac Glass, Inc., of Pontiac, Michigan. It is also recommended that the following budget be established: Contractor - Pontiac Glass, Inc. Ralph Calder & Associates, Inc. Physical Plant Construction Inspection Interior Window Finishes Contingency Total $263,800 27,000 5,300 40,900 13,000 $350,000 Funding for this project will be from the Auxiliary Activities Fund. RESOLVED that the above contract be awarded and project budget be established as recommended. Approved by a vote of 7 to 0 on motion by Trustee Wilson, seconded by Trustee Sawyer, (3) Parking Improvements South of Pesticide Research Center The following bids were received on July 12, 1984, for Parking Improvements South of the Pesticide Research Center. When completed this parking lot will provide 115 additional parking spaces in the vicinity of the Plant Biology Addition and the Pesticide Research Center. Also included is a new entrance door in the Pesticide Research Center to provide access to the parking lot. Contractor Capitol Excavating & Paving Co. Cadwell Brothers Construction Co. Eastlund Concrete Construction, Inc. Brown Brothers, Inc. Thompson-McCuly Co. & Subsidiaries Base Bid $ 97,786 109,600 114,600 123,000 139,400 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 project are five percent Minority Business Enterprises (MBE) and five percent Women Business Enterprises (WBE) . The low bidder has certified that it will comply with the require- ments. The MBE and WBE subcontracts will total approximately $9,800. It is recommended that a contract in the amount of $97,786 be awarded to Capitol Excavating & Paving Co. of Mason, Michigan, and that the follow- ing budget be established: Contractor - Capitol Excavating & Paving Co. Pesticide Research Center Alterations Plant and Soil Sciences Storm Sewer Revisions Temporary Parking Lot Campus Park & Planning Site Work and Design Physical Plant - Engineering Services Contingency Total $ 97,786 12,500 14,500 8,000 29,560 3,200 14,454 $180,000 This project, excluding the storm sewer and temporary parking work, was estimated at $150,000 by the Division of Campus Park and Planning in June 1984. Funding for this project will be financed as part of the external borrowing for the Plant Research Laboratory addition as approved by the Board of Trustees at its June 7-8, 1984, meeting. RESOLVED that the above contract be awarded and project budget be established as recommended. Approved by a vote of 7 to 0 on motion by Trustee Reed, seconded by Trustee Martin. i i i i • 9. D. OTHER ITEMS FOR ACTION, cont. July 26-27, 1984 (3a) Rights and Responsibilities Documents I Distributed with the agenda are the following Rights and Responsibilities Documents: • Rights and Responsibilities of the Faculty of Michigan State University (FRR) Graduate Students Rights and Responsibilities at Michigan State University (GRR) Academic Freedom for Students at Michigan State University (AFR) i0099 Approved Rights and Responsibili-^ ties Documents: RESOLVED that the above documents be approved by the Board of Trustees. Approved by a vote of 7 to 0 on motion by Trustee Martin, seconded by Trustee Wilson. It was agreed that if subsequent actions are taken by the Board of Trustees relating to the Board of Trustees Policy Manual and Board of Trustees Bylaws, that these actions take precedence over the Rights and Responsibilities Documents. (Copy of Rights and Responsibilities Documents on file in the Secretary^ Office.) (3b) Bylaws for Academic Governance With the approval by the Board of Trustees of the Academic Freedom for Students at Michigan State University (AFR) (see above), it is recommended that the Bylaws for Academic Governance be revised to add Sections 6.3. and 6.4. as approved by the Academic Senate. Approved Revision of Bylaws for Academic Governance 6.3- University Academic Integrity Review Board 6.3.1. The composition and jurisdiction of this body are set forth in Academic Freedom for Students at Michigan State University. 6.3.2. Faculty members of the University Academic Integrity Review Board shall be appointed by the President from a list of nominees of twice the number of positions to be filled supplied by the faculty of the University Committee on Academic Governance. 6.3.3. The term of office of faculty members to the University Academic Integrity Review Board shall be three years. Provisions shall be made to stagger appointments to assure continuity. Terms of office begin September 1. No member shall serve more than two consecutive terms. 6.3.4. No faculty members of Academic Council or any committee appointed or nominated by Academic Council or Faculty Council shall be eligible to serve concurrently on the University Academic Integrity Review Board. 6.4. University Student Appeals Board 6.4.1. The composition and jurisdiction of this body are set forth in Academic Freedom for Students at Michigan State University. 6.4.2. Faculty members of the University Student Appeals Board shall be appointed by the President from a list pf nominees of twice the number of positions to be filled supplied by the faculty of the University Committee on Academic Governance. 6.4.3. The term of office of faculty members to the University Student Appeals Board shall be three years. Provisions shall be made to stagger appointments to assure continuity. Terms of office shall begin September 1. No member shall serve more than two consecutive terms. 6.4.4. No faculty members of Academic Council or any committee appointed or nominated by Academic Council or Faculty Council shall be eligible to serve concurrently on the University Student Appeals Board. RESOLVED that the above recommendation be approved. Approved by a vote of 7 to 0 on motion by Trustee Sawyer, seconded by Trustee Lick. 1 i ioioo Approved Establishment of the Biotechnology Research Center Effective July .1, 1984 •9. A, OTHER ITEMS FOR ACTION, cont. July 26-27, 1984 (4) Establishment of the Biotechnology Research Center The Michigan State University Budget Request for 1984-85, as approved by the Board of Trustees on October 13-14, 1983, included a Program Revision Request to establish a Biotechnology Research Center. The appropriation bill approved by the Michigan Legislature for 1984-85 includes funds for this purpose. The proposed Biotechnology Research Center would facilite and advance faculty research in this vital area. Colleges involved would be Agriculture and Natural Resources, Engineering, Human Medicine, Natural Science, Osteopathic Medicine, and Veterinary Medicine. It is proposed that a Biotechnology Research Center be established at Michigan State University. The purpose of the Center would be to stimulate and augment promising research in a broad spectrum of biotechnology including genetic modi- fication of plant and animal cells; cloning, transfer and regulation of genes pertinent to biotechnology; bioprocessing engineering; and design of macromol- ecules, their synthesis and mode of action. The mechanisms for stimulating research would be such actions as to increase the faculty's potential for greater research productivity by releasing the faculty from other duties for a time, by providing summer salaries—particularly for young faculty—and by providing support for postdoctoral fellows. The Center would sponsor a variety of events to promote communication among MSU research scientists doing work related to biotechnology. The Center would have a part-time Director selected from researchers already on our faculty. The duties of the Director would include administration of the funds provided by the State of Michigan and coordination of activities of the Center with the biotechnology efforts of the Agricultural Experiment Station. The Director would receive research facilitation proposals from faculty or departments and with the assistance of a Scientific Advisory Committee would award grants based at least in part on the ability of the funds to augment timely research productivity of faculty. Promising new research ideas that may lead to major external funding should be particularly encouraged. The Center would also have a Policy Board made up of the Deans of the Colleges of Agriculture and Natural Resources, Engineering, Human Medicine, Natural Science, Osteopathic Medicine, and Veterinary Medicine. The function of the Policy Board would be to set general policy for operation of the Center and for the utilization of funds by the Director. The Dean of the College of Natural Science would be the lead Dean for the Center. It is recommended that the Board of Trustees establish this Center. RESOLVED that the Board of Trustees approves establishment of the Biotechnology Research Center effective July 1, 1984. Approved Nuclear Magnetic Resonance Revised Proposal Approved by a vote of 7 to 0 on motion by Trustee Reed, seconded by Trustee Martin. (4) NMR: Revised Proposal Distributed with the agenda is information relating to the NMR Facility. It is recommended that the administration be authorized to enter into . appropriate arrangements with the General Electric Company for construction of a turn-key facility to house the NMR scanning equipment and to provide the NMR equipment at a contract price of $2.2 million; that financial arrangements currently being completed by the administration for the sale of ten-year variable rate bonds (put bonds) be amended to provide additional financing in the amount of $2 million for this project; and that if a Certificate of Need for this project is received by the University, the prior authorization to provide an additional $476,000 through the issuance of an internal loan be continued as recommended (copy on file in the Secretary's Office). RESOLVED that the above recoinmendation be approved. Approved by a vote of 7 to 0 on motion by Trustee Sawyer, seconded by Trustee Lick. 9. D. , OTHER ITEMS FOR ACTION (1) 1984-85 Budget Guidelines Approved 1984-85 Budget Guidelines Alternative 1984-85 budget guidelines were distributed during the meeting and contained recommendations for tuition and fee adjustments, budget and salary guidelines, graduate and undergraduate stipends and student employee continued - - - 1 1 1 1 1 9. D. OTHER ITEMS FOR ACTION, cont. July26-27, 1984 (4) 1984-85 Budget Guidelines., cont. wage adjustments as well as the Agricultural Experiment Station, Cooperative Extension Service, and Intercollegiate Athletics Program budgets. RESOLVED that the tuition and fee schedules be approved as recommended effective with the fall term 1984 and that the development of the 1984-85 budgets, including salary and wage adjustments, proceed as recommended in the alternative budget proposal with final action thereon at the October meeting of the Board. (A copy of the alternative 1984-85 budget guidelines on file in the Secretary*s Office.) I • Approved by a vote of 6 to Trustee Martin voted No. (5) Establishment of Ad Hoc Committee 1 on motion by Trustee Sawyer, seconded by Trustee Lick. Trustee Sawyer moved that the Board -of Trustees authorize establishment of an Ad Hoc Board Committee to review the long-term needs of the University and ways to communicate these needs effectively. The Committee should present a report to the Board at its next regular meeting. motion that the Chairperson designate the members of the Committee. Approved by a vote of 7 to 0. Seconded by Trustee Reed. Trustee Reed included in his support of the ( Approved Establishment of Ad Hoc Committee to Review Long- Term Needs of the University 10. REPORTS TO THE BOARD A. President!s Report President Mackey expressed his appreciation to former Vice President Thompson for outstanding service to Michigan State University and wished him well in his new assignment at the University of Alabama at Huntsville. The Board of Trustees also expressed their appreciation to former Vice President Thompson, and wished him well in his new assignment. Adjourned at 9:12 a.m. Secretary i i