MINUTES OF THE MEETING of the MICHIGAN STATE UNIVERSITY BOARD OF TRUSTEES October 4, 1985 President DiBiaggio called the meeting to order in the Auditorium of the Academic Building at the Kellogg Biological Station at 10:45 a.m. on Friday, October 4, 1985. Present: Trustees Dade, Lick, Owen, Pridgeon, Sawyer, Wilbur and Wilson; President DiBiaggio, Provost Winder, Vice Presidents Cantlon, Dickinson and Stewart; Acting Vice President and Secretary Wilkinson, General Counsel Carr, Executive Assistant to the President Kimball, Assistant Vice President Studer, Faculty Liaison Group and Student Liaison Group. Absent: Trustee Reed. 1. President DiBiaggio opened the meeting by expressing appreciation to Dr. Harvey Liss, Mr. Warren Millett and Mr. Michael Baker for their hospitality and the arrangements for the tour of the Kellogg Biological Station which preceded the meeting. He stated that this facility is an excellent example of a land-grant university at work with its strong instructional, research and extension programs. He expressed appreciation to the Kellogg Foundation for its continuing financial support for the Kellogg Biological Station. 2. Approval of Proposed Agenda Trustee Dade moved approval of the proposed agenda, seconded by Trustee Sawyer. Approved by a vote of 7 - 0. 3. Approval of Minutes of August 9, 1985 Trustee Wilbur moved approval of the August 9, 1985 Minutes, seconded by Trustee Dade. Approved by a vote of 7 - 0. 4. Public Comments Secretary Wilkinson reported that there were no requests for public comments. 5. A. PERSONNEL ACTIONS Change of Status (1) It is recommended the title of Secretary of the Board of Trustees be deleted for Roger E. Wilkinson, Acting Vice President for Finance and Operations and Acting Treasurer, effective October 31, 1985. [Public 1 Comments Personnel Actions Change of Status Roger E. Wilkinson RESOLVED that the above recommendation be approved. j Approved by a vote of 7 - 0, on a motion by Trustee Wilbur, seconded by Trustee Owen, j (2) It is recommended the addition of the title Secretary of the Board of Trustees jDavid L. for David L. Kimball, Executive Assistant to the President, effective November 1, I Kimball 1985. RESOLVED that the above recommendation be approved. I \ Approved by a vote of 7 - 0, on a motion by Trustee Sawyer, seconded by Trustee Lick. \ Other Personnel Actions (1) It is recommended that an executive management position titled Assistant Vice President for University Relations be established effective November 1, 1985. RESOLVED that the above recommendation be approved. Approved by a vote of 7 - 0, on a motion by Trustee Owen, seconded by Trustee Dade. 5. B. GIFT, GRANT AND CONTRACT REPORT Other Personnel Actions Asst. Vice Pres Univ. Relations j Gift,.. Grant. & I Contract On a motion by Trustee Dade, seconded by Trustee Owen, it is recommended that the Report Board of Trustees accept the gifts, grants, and contracts as listed in the report j distributed with the agenda. RESOLVED that the above recommendation be approved. Approved by a vote of 7 - 0, on a motion by Trustee Dade, seconded by Trustee Owen. 10166 j Bids and Contract Awards Installation j of Well #29 | BIDS AND CONTRACT AWARDS October 4, 1985 (1) Installation of Well #29 The following bids were received on September 5, 1985 for Installation of Well #29. This project consists of drilling a new 16-inch diameter water well, constructing a new well house, installing 2,770 feet of water main, and related mechanical and electrical work. The purpose of this project is to restore lost water production capacity resulting from the deterioration of the older campus wells. BIDDER T. A. Forsberg Inc. Cadwell Brothers Const, Co. BASE BID $209,392.50 231,900.00 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: The Inner City Business Improvement Forum, Construction Association of Michigan, and Association of Minority Contractors. No minority or women owned businesses submitted bids. Due to the specialized nature of this project, it was determined that there were no subcontracting opportunities. It is recommended that a contract in the amount of $209,392.50 be ax^arded to T. A. Forsberg Inc. of Okemos, Michigan and that the following budget be established: Contract - T. A. Forsberg Inc. Design, Coordination, and Inspection Contingency Total $209,392.50 18,270.00 27,337.50 $255,000.00 This project was estimated at $260,000.00 by the Physical Plant Division in May, 1985. Funding for this project will be from the General Fund. RESOLVED that the above contract be awarded and project budget be established as recommended. ions in; search Areas- Giltner Hall, | ! e II Approved by a vote of 7 - 0, on a motion by Trustee Owen, seconded by Trustee- Sawyer. (2) Renovations in Research Areas of Giltner Hall, Phase II The following bids were received on September 12, 1985 for Phase II of Renovations in Research Areas of Giltner Hall. This project is a continuation of a program to upgrade the areas of Giltner Hall housing the Departments of Physiology and Microbiology and Public Health. It includes replacement of laboratory benches, sinks, fume hoods, ceilings, lighting, plumbing, ventilation, and electrical systems. BIDDER Nielsen Construction Company Haussman Construction Company BASE BID $169,450 218,300 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: The Inner City Business Improvement Forum, Construction Association of Michigan, and Association of Minority Contractors. The subcontracting goals for this project are 5% Minority Business Enterprises (MBE) and 5% Women Business Enterprises (WBE). The low bidder, Nielsen Construction Company, is a women owned enterprise and they have certified that they will also meet the MBE goal. It is recommended that a contract in the amount of $169,450 be awarded to Nielsen Construction Company of Holt, Michigan and that the following budget be established: Contract - Nielsen Construction Company Design Consultant - Mayotte, de'Haene & Assoc. Coordination and Inspection Contingency Total $169,450 14,500 7,000 17,000 $208,000 10167 Bids and Contract Awards cont. Renovations in Research Areas Giltner Hall, Phase II cont. Spartan Village Re-Roofing Seven Bldgs. 5. C, BIDS AND CONTRACT AWARDS, continued October 4, 1985 This project was estimated at $157,000 by the Physical Plant Division in February, 1985. Funding for this project will be from General Fund Alterations and Improvements funds. RESOLVED that the above contract be'awarded and project budget be established as recommended. Approved by a vote of 7 - 0, on a motion by Trustee Owen, seconded by Trustee Lick. (3) Spartan Village - Re-Roofing of Seven Buildings .The following bids were received on September 12, 1985 for Re-Roofing Seven Buildings in Spartan Village. This project replaces the original roofing installed when the buildings were built in 1957-58. The roofs have exceeded their 20-year life expectancy and require replacement. Alternate No. 1 adds two additional buildings to the project scope. BIDDER Sonnyfs Roofing Company, Inc. MacArthur Roofing & Sheet Metal Co. Haussman Construction Company Newton & Crane Inc. Detroit Cornice & Slate Co., Inc. ALTERNATE BASE BID NO. 1 $111,418 145,000 184,891 208,791 213,865 37,678 52,000 61,643 69,930 76,330 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: The Inner City Business Improvement Forum, Construction Association of Michigan, and Association of Minority Contractors. No minority or women owned businesses submitted bids. Due to the specialized nature of this project, it was determined that there were no subcontracting opportunities. It is recommended that a contract in the amount of $111,418 be awarded to Sonny's Roofing Company, Inc. of Lansing, Michigan and that the following budget be established: Contract - Sonny's Roofing Company, Inc. Design, Coordination, and Inspection Contingency Total $111,418 11,700 11,382 $134,500 This project was estimated at $150,000 by the Physical Plant Division in December, 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 - 0, on a motion by Trustee Wilbur, seconded by Trustees Owen and Sawyer. (4) Construction of a Dairy Barn at the U. P. Experiment Station, Chatham The following bids were received on September 12, 1985 for construction of a Dairy Barn at the U. P. Experiment Station, Chatham. This project will provide state-of-the-art facilities for investigative research of dairy herd management, nutrition and environment, in a northern Michigan setting, the result of which will be made available to the dairy industry through the Cooperative Extension Service. Alternate No. 1 provides a 16-foot addition to the comfort stall barn to accommodate eight additional stalls and related equipment. Alternate No. 2 provides for the construction of an 80-foot x 130-foot barn to enclose free stalls. \ Construction of I Dairy Barn at |-UP Experiment jStation, !Chatham 10168 j Bids and Contract Awards! j cont. Construction ofi Dairy Barn•at UP Experiment Station, Chatham cont. j Replacement of Elevator in Olin Health Center C. BIDS AND CONTRACT AWARDS, continued October 4, 1985 BIDDER Gary Niemela, Inc. Associated Constructors Ron LaBonte Builders, Inc. BASE BID $ 591,952 698,000 1,000,000 ALTERNATE NO. 1 ALTERNATE NO. 2 $ 19,793 16,000 50,000 $192,197 212,000 500,000 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: The Inner City Business Improvement Forum, Construction Association of Michigan, and Association of Minority Contractors. The low bidder, Gary Niemela, Inc., is a Women Business Enterprise. Due to the specialized nature of this project, it was determined that there were no subcontracting opportunities. It is recommended that a contract in the amount of $611,745 (Base Bid of $591,952 plus Alternate No. 1 of $19,793) be awarded to Gary Niemala, Inc. of Marquette, Michigan and that the following budget be established: Contract - Gary Niemela, Inc. Design Consultant - MJK Architects Coordination and Inspection Contingency Total $611,745 40,500 19,225 64,530 $736,000 This project was estimated at $700,000 by the Physical Plant Division in April, 1985- Funding for this project will be as follows: $500,000 from the Agricultural Experiment Station and $237,000 from an internal loan to be consolidated with the existing internal loan for the Dairy Research and Teaching Center. RESOLVED that the above contract be awarded and project budget be established as recommended• Approved by a vote of 7 - 0, on a motion by Trustee Dade, seconded by Trustee Owen. (5) Replacement of an Elevator in Olin Health Center The following bids were received on September 17, 1985 for Replacement of an Elevator in Olin Health Center. BIDDER Haussman Construction Company BASE BID $117,700 Inquiries were made to other potential bidders and it was learned that currently there is a high work volume in the Lansing area. Plus, projects which are primarily elevator work are not attractive to construction contractors. Haussman Construction did receive quotations from three elevator suppliers and, after comparing the bid with the estimate, it was determined that the bid represents a reasonable price. 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: The Inner City Business Improvement Forum, Construction Association of Michigan, and Association of Minority Contractors. No minority or women owned businesses submitted bids. Due to the specialized nature of this project, it was determined that there were no subcontracting opportunities* It is recommended that a contract in the amount of $117,700 be awarded to Haussman Construction Company of Lansing, Michigan and that the following budget be established: Contract - Haussman Construction Company Design, Coordination, and Inspection Contingency Total $117,700 9,300 „ 1 ^ 0 00 $139,000 This project was estimated at $155,000 by the Physical Plant Division in April, 1985. 5. C. BIDS AND CONTRACT AWARDS, continued October 4, 1985 Funding for this project will be from Olin Health Center funds. RESOLVED that the above contract be awarded and project budget be established as recommended. Approved by a vote of 7 - 0, on a motion by Trustee Owen, seconded by Trustee Dade. (6) Replacement of Freight Elevators in the Union Building The following bid was received on September 17, 1985 for Replacement of two Freight Elevators in the Union Building. BIDDER Haussman Construction Company BASE BID $159,200 Inquiries were made to other potential bidders and it was learned that currently there is a high work volume in the Lansing area. Plus, projects which are primarily elevator work are not attractive to construction contractors. Haussman Construction did receive quotations from three elevator suppliers and, after comparing the bid with the estimate, it was determined that the bid represents a reasonable price. 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: The Inner City Business Improvement Forum, Construction Association of Michigan, and Association of Minority Contractors. No minority or women owned businesses submitted bids. Due to the specialized nature of this project, it was determined that there were no subcontracting opportunities. It is recommended that a contract in the amount of $159,200 be awarded to Haussman Construction Company of Lansing, Michigan and that the following budget be established: Contract - Haussman Construction Company Design, Coordination, and Inspection Contingency Total $159,200 10,800 15,000 $185,000 This project was estimated at $165,000 by the Physical Plant Division in February, 1985. 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 - 0, on a motion by Trustee Wilbur, seconded by Trustee Wilson. (7) Construction of an Engineering Research Complex The following bids were received on September 19, 1985 for Construction of an Engineering Research Complex. This project provides for - construction of new research space for the College of Engineering. This first phase includes site work, foundations, and construction of a pre-engineered building shell south of the Clinical Center. In the interest of expediting construction, interior building finishes and equipment will be designed and bid in the near future. BIDDER Design & Build, Inc. Granger Construction Company The Christman Company Parish Corporation Haussman Construction Company Clark Construction Co. BASE BID $ 912,000 1,000,000 1,016,975 1,049,000 1,059,000 1,132,666 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: The Inner City Business Improvement Forum, Construction Association of Michigan, and Association of Minority Contractors. No minority or women owned businesses submitted bids. 5. C. BIDS AND CONTRACT AWARDS, continued October 4, 1985 The subcontracting goals for this project are 5% Minority Business Enterprises (MBE) and 5% Women Business Enterprises (WBE). The low bidder has certified its intent to meet the goals. This will result in approximately $45,600 in subcontracts being awarded to both MBE and WBE. It is recommended that a contract in the amount of $912,000 be awarded to Design & Build, Inc. of Lansing, Michigan and that the following budget be established: Contract - Design & Build, Inc. Design Consultant - MJK Architects Coordination and Inspection Contingency Total $ 912,000 48,000 25,000 120,000 $1,105,000 This project was estimated at $1,345,000 by the Physical Plant Division in June, 1985. This project was authorized by the Board of Trustees at its June 25, 1985 meeting. Financing arrangements are being finalized in the review of capital projects. RESOLVED that the above contract be awarded and project budget be established as recommended and that this project be included in the University's 1986-87 capital outlay request to the State of Michigan. Approved by a vote of 7 - 0, on a motion by Trustee Sawyer, seconded by Trustee Lick. 5. D. OTHER ITEMS FOR ACTION (1) Adoption of 1985-86 Operating Budgets Distributed with the agenda are the proposed 1985-86 preliminary General Fund, Agricultural Experiment Station, Cooperative Extension Service, and Intercollegiate Athletics budgets. These budgets were developed in accordance with the guidelines approved by the Board of Trustees at its meeting on August 9, 1985. It is recommended that the budgets be approved as submitted. RESOLVED that the above recomendation be approved. Approved by a vote of 7 - 0, on a motion by Trustee Sawyer, seconded by Trustee Owen. (2) Establishment of a Fund Functioning as an Endowment It is recommended that the following fund functioning as an endowment be established and placed in the University's Common Investment Fund: Department of Food Science and Human Nutrition Discretionary. The purpose of this fund is to invest the $106,772 gift received from the Herman Blum Trust. The income will be spent according to the donorfs designation at the discretion of the Department Chairperson. RESOLVED that the above recommendation be approved. Approved by a vote of 7 - 0, on a motion by Trustee Lick, seconded by Trustee Wilson. 6. REPORTS TO THE BOARD A. BOARD COMMITTEE REPORTS (1) Audit Committee a. Receipt of Annual Financial Report The Audit Committee met on September 12, 1985 with Arthur Young and Company, the Board's external auditors, to review in detail the results of the audit and financial report for the fiscal year ending June 30, 1985. The committee recommends that the financial report be accepted as presented. RESOLVED that the above recommendation be approved. Approved by a vote of 7 - 0, on a motion by Trustee Sawyer, seconded by Trustee Pridgeon. 6. A. BOARD COMMITTEE REPORTS, continued October 4, 1985 (2) Special Trustee Review Committee Trustee Dade appointed Trustees Lick, Wilbur, Wilson, and Dade along with ex officio member David Kimball to serve on an ad hoc review committee for the purpose of reviewing the organization and effectiveness of the Board of Trustees. He requested that this committee present a preliminary report at the Board's December, 1985 meeting. B. PRESIDENT1S REPORT President DiBiaggio stated that he welcomed the return of the students to the campus and that the Trustees should know that the applicant pool for this year's freshman class was the second largest in the University's history. He indicated that we now predict an increase in fall term enrollment. He informed the Board that he visited fall term registration and has met with several students since their return to the campus. He stated that his visits with students, faculty, and staff have indicated a very positive attitude toward the University and that moral was high on campus. He thanked the Board for its participation in the recent Presidential Inauguration. He indicated that he is continuing to work with the Governor's staff to review the University's budget needs. The Board adjourned at 12:12 p.m. (JjA^Lor^^^ ize-fl Wilkinson i c r e t a ry of the Board of T r u s t e es m DiBiaggio President ^L