10201 Trustee GPA Awards Public Comments MINUTES OF THE MEETING OF THE BOARD OF TRUSTEES MICHIGAN STATE UNIVERSITY February 6, 1987 The Trustee Finance Committee and the Trustee Policy Committee meetings were held in the Lincoln Room of the Kellogg Center beginning at 9:00 a.m. on Friday, February 6, 1987. The minutes of the committee meetings are on file in the Office of the Secretary of the Board of Trustees. As a segment of the Trustee Policy Committee, the Board of Trustees, the Administration, and the.Faculty and Student Liaison.representatives attended a presentation and tour of the National Superconducting Cyclotron Laboratory. The meeting of the Board of Trustees was called to order by President John DiBiaggio at 1:40 p.m. in the Board Room of the Administration Building. Trustees present: Malcolm G. Dade, Jr., Joel Ferguson, Lawrence D. Owen, Dean Pridgeon, Thomas Reed, Barbara J. Sawyer,, Kathy Wilbur, and Patrick J. Wilson. University officers present: President DiBiaggio,\Provost Scott, Vice Presidents Cantlon, Dickinson, Schonbein, Stewart, Turner, and Wilkinson, Senior Consultant Breslin, and Acting Secretary Davis. Faculty Liaison representatives present: Professors Abeles, Matthews, Silverman, and Texera, and Student Liaison representatives present: Heisler, Ladas, and SeIke. All actions taken were by unanimous vote of the Trustees present, unless otherwise noted. 1. On a motion by Mr. Owen, supported by Ms. Sawyer, THE BOARD VOTED to approve the proposed agenda. 2. On a motion by Ms. Wilbur, supported by Ms. Sawyer, THE BOARD VOTED to approve the Board Minutes of the meeting of October 3, 1986. 3. President DiBiaggio and Chairperson Dade recognized and congratulated Amy K. Krammin, Kimberlee A. Buck, John P. Bodeau, and Patricia A. Schafer as student recipients of the,Trustee GPA Awards for Winter Term 1987. 4. The following persons addressed the Board of Trustees: A. Richard Lassin, a health physicist at the National Superconducting Cyclotron. Laboratory.and. a member of Administrative-Professional Association, thanked, the Board for the opportunity ,to convey his sentiments and concerns about the contract negotiations between the APA and the University. He indicated several significant concerns including non-supervisory employees; the language in Article 16 which addresses the reduction of the work force; the probationary trial period for new employees of one full year, with no provision for grievance or arbitration rights; and,.the fact that there will be no salary adjustments for one to two years. He further stated that offering a 5% general salary increase is unacceptable. He asked the Board to give consideration to these concerns. B. James A. Tate, Associate Director and Coordinator for the College Achievement Admissions Program at Michigan State, said his colleagues asked him to report that they support his efforts but could not attend the Board meeting as MSU is hosting more than 400 alumni distinguished scholarship students. Dr. Tate said he came to MSU to serve and is dedicated and committed to performing a vital function with his mission to bring talented students to the University. He stated that he served on the AP Board in 1972-74. He urged the Board, to take affirmative steps to resolve the current bargaining crisis and, thereby, to improve relationships x^ith the APA. He would like to move forward together. 1 1 I ±0202 Public Comments cont. February 6, 1987 C. Jacqueline Payne, an employee of WKAR radio and a member of the Administrative-Professional Association, spoke of her concern of the slow pace of bargaining in the negotiations with the University. She indicated concern that the University seems to be locked into a 5% increase when employees would appreciate a 7% increase. She stated that the APA has demonstrated a willingness to compromise and provided the following: in 1980, when inflation was at 13.5%, AP salaries were raised 9%, and in 1981, inflation was at 10.2%, and raises were 8.5%. Clerical-Technical employees have received an average of 8.41% during these years which puts them ahead of inflation and their salaries are now about the same as the APs. During the financial crisis years in the early to mid-1980s, the University asked employees to accept decreased wage increases to help the University, APA accepted and members were told there would be adjustments in the future. She recognizes that the University wants to treat its employees fairly and asked that good faith be demonstrated in the negotiations. President's Report Biennial Organization of Board 5. The report of President DiBiaggio included the following items: A. Mr. Joel Ferguson was welcomed to his first Board meeting as a newly elected member of the Board of Trustees. B. The election of Board officers takes place at the first meeting of the year. The following persons were elected. On a motion by Mr. Owen, supported by Ms. Sawyer, Mr. Malcolm G. Bade, Jr. was elected Chairperson of the Board of Trustees. On a motion by Mr. Reed, supported by Ms. Sawyer, Mr. Patrick J. Wilson was elected Vice Chairperson of the Board of Trustees. President DiBiaggio thanked Mr. Reed for his service as Vice Chairperson. C. President DiBiaggio reported on the Governors State of the State address and his budget proposal for fiscal year 1988. The Governor's address was one of great enthusiasm and hope, recognizes the problems faced and provides greater latitude to addressing those problems within the community and institution. It reflected on many accomplishments of the past four years and spoke about the firm commitment in the future to improvement in all sectors of education including higher education. He gave an endorsement for the need of quality education throughout an entire lifetime and alluded to lifelong learning to which Michigan State has an interest and commitment. The address was positive and inspiring as the University attempts to meet the challenges of the future. A budget request of 5.3% for higher education is encouraging and reflects the Governor's firm commitment. While the budget recommendation does not approximate the request made by the University, there are certain aspects which are worthy of note: the Governor chose to recommend that $15 million be set aside to provide for the establishment of a formula which will allow for differentiation between the various institutions predicated upon the magnitude and scope of their programs and for addressing of certain inequities that may have developed at institutions over the last several years. This is a first step in the process of recognizing that consideration has to be given for institutions which have maintained stable enrollments or have increased enrollments, which have major graduate programs and research efforts, and have the level of commitment to public service that has been a tradition at Michigan State. It is a step towards realization of those variables. The amounts awarded to the University will move us closer to the goal established as the budget for the upcoming year. The Governor stated that assuming there are no changes in the budget recommendation that he'has made, that it would not be appropriate for him to direct institutions of higher education in Michigan as to the establishment of tuition and fees. The Governor recognizes that the recommendation is generous in light of the State's economy, but will not address the entire need of the institution. • • • 10203 President's Report cont. February 6, 1987 D. President DiBiaggio stated that Michigan State has had strong representation at the State level with the Legislature, Executive Branch, and the various State agencies and believes that the University needs to have representation in Washington to have a better understanding of what is happening as it relates to Michigan State which receives significant research grants and student aid from the Federal Government. Federal relations has been part of the overall responsibility of Vice President Connie Stewart, partly because of her earlier experiences in Washington. She has made a concerted effort to be in Washington as often as possible to meet the various requirements of the University, bottr in representing the University's views to the Congress and the Executive Branch and in meeting with various agencies with which MSU has contracts and grants. Mr. Jerry Roschwalb, Director of Government Relations for the National Association of Land-Grant Colleges and Universities and who is recognized in Washington as the most effective lobbyist for higher education associations, was asked to examine MSUTs circumstances to determine the best direction for the University. Mr. Roschwalb studied the direction of other institutions in the Big Ten and other major state institutions and recommended the appointment of.an individual to serve as a federal relations officer in Vice President Stewartfs office with a relationship to the Presidents Office as well. The establishment of an executive management position of Director of Federal Relations is proposed in the personnel actions. The President stated that he strongly endorses the position. E. In an attempt to make the community more aware of health and good health practices, President DiBiaggio has issued' a proclamation declaring Friday, February 13, 1987, as Healthy U's "Celebrate Health Day." It is a campus-wide event starting with a kickoff breakfast and ending with a Celebrate Health Day dance. The President stated that he is hopeful people will take advantage of the many planned activities. F. The annual Faculty Awards Convocation honoring distinguished faculty and Graduate Teaching Faculty will be held on February 12, 1987. It has also been the tradition for the President to give the State of the University address. The event is a very important one recognizing quality teaching and: scholarship, and Dr. DiBiaggio urged attendance. G. The initial meeting of the Capital Campaign organizing committee will be held on February 17, 1987. Governor Blanchard will host the committee of distinguished citizens at his home. H. President DiBiaggio reported that he has just returned from an extended trip of four nations of Africa—Senegal, Kenya, Ethiopia, and Zimbabwe—with Dean Ralph Smuckler, Trustee Barbara Sawyer, Dr. David Wiley, and Dr. Donald Isleib. The purpose of the travel was to assess the programs in Africa to determine ways in which they might be improved and expanded. The trip was extraordinary and a memorable experience which has impacted enormously on an understanding of Africa and its potentials as well as challenges. Africa is a magnificent continent of enormous physical beauty, beautiful people who are warm, friendly, welcoming, and who positively view Americans and the American commitment to the people of Africa. In every place visited, Michigan State University was highly regarded and the graduates are proud of Michigan State and positively view its accomplishments. Michigan State has several thousand graduates who reside in Africa. Many of the graduates are in prominent positions serving as ministers of government, business leaders, presidents of universities, and deans of schools. Strong workings relationships exist with Zimbabwe and Addis Ababa and the tentative agreements with Dakar in Senegal and Nairobi in Kenya are expected to become formalized. The visit to Harare, Zimbabwe coincided with the meeting of the African Association of Universities, and President DiBiaggio said he was given the privilege of addressing the group of vice rectors/presidents and vice chancellors on the land-grant movement in the United States. I I I I I 10204 Presidents Report cont. February 6, 1987 The President said he was impressed most by the intellectual community—the faculty in the universities are very distinguished, extraordinarily competent, and very dedicated people. The problem that Africa faces is that the core is very small because universities have evolved during the last few decades, so there is a critical need for more people of competency level. MSU can assist by working with their educational institutions to derive ways in which their faculty can earn additional education and research experience in the United States. Michigan State and many American universities are proud of the fact that they divested themselves of stocks in companies doing business in South Africa as a symbolic gesture of disapproval of apartheid as a form of government. While that symbolism was important, it is time to move from divesting from those companies to investing in the development of Africa's human capital which is the greatest contribution that can be made. Dr. DiBiaggio said he pledges to do all that he can to meet that commitment. The President said he is very impressed with the international component of Michigan State and each and every one can be very proud to be associated with a University which has never forfeited its service mandate but, in fact, has extended that mandate far beyond the borders of our own state and nation to the entire world. President DiBiaggio said Trustee Barbara Sawyer represented the Board of Trustees exceptionally well in every place visited and was a distinguished representative of the University. I. Trustee Barbara Sawyer described her perception of Africa, from the viewpoint of a Trustee, with a slide presentation and comments about the many prominent alumni in Africa, African children, as well as slides of Dakar, Senegal, Victoria Falls, Gorrie Island, and a Nairobi game park. Africans have a depth of appreciation of what MSU has accomplished. MSU has a relationship and rapport established in all instances, but especially in Senegal. The new government in Ethiopia which has strong communications in the academic area is expected to assist in fostering linkages with government. This came about by the outstanding leadership of Dean Ralph Smuckler and Dr. David Wiley, who have excellent contacts with the countries visited. Individual faculty members on site have personal relationships which have developed relative to representing Michigan State and people are reminded that it is Michigan State that is providing the service, that is giving them research, and that is doing the training and development. The history of Africa is not recent, as programs and progress have come about over the past 26 years. In the 1960s several things happened when Africa was recognized as an important continent. Michigan State faculty committed themselves to becoming personally involved. Through President John Hannah, the significance of Michigan State's international mission became known when an AID grant and federal funds were made available to develop the Nigerian project. Involvement and relationships in Africa have evolved over time. Michigan State's African Studies Center, where twenty-three African languages are taught, is annually ranked first or one of the top three in the country. The accomplishments in Africa, especially Nigeria, set the stage for Michigan State's presence and acknowledged the quality of programs in other international settings such as Latin America, Asia, and China. We are very proud of what has been done and what the potential is for growth. African countries are young and have grown very fast. This visit reminded the people of Africa of Michigan State's interest in helping them fulfill their commitment. Former President John Hannah began by looking at Michigan State's mission in the international arena and now President John DiBiaggio has the same commitment and has started the process through this visit of letting the world know what Michigan State has to offer. I I I 1 1 February 6, 1987 President DiBiaggio concluded by stating that the" people of Africa appreciated the MSU visitors who bring MSU closer to those nations and institutions and reaffirm the commitment to work with them. He encouraged the Trustees to consider and plan for international travel experiences, as there will be future trips to Indonesia, Malaysia, the Philipines, and China, The message from this Board of Trustees has to be clear how strongly supportive we are of continuing the commitment to faculty who carry the international mission forward. On a motion by Ms. Wilbur, supported by Mr. Wilsonj THE BOARD VOTED to approve the following personnel actions. A. Appointments Rigas, Harriett, AN-Professor, Department of Electrical Engineering and Systems Science, $82,000, with Tenure, effective March 1, 1987, B. Other Personnel Actions Sullivan, Richard E., AN-Professor, Departments of History and Humanities, to add title of Acting Associate Provost, Office of the Provost, and to change from $61,800 on an academic year appointment basis to $82,050 on an annual appointment basis, effective January 1, 1987 to February 28, 1987; and for a change in consultant-ship from January 1* 1987 through December 31, 1987 to March 1, 1987 through February 29, 1988 followed by retirement March 1, 1988. 10205 Presidents Report cont. Personnel Actions Appointments Other Personnel Actions C. It is recommended that an Executive Management position, titled Director of Annual Giving Programs, be established effective March 1, 1987. Executive Mgt. Di rector of Annual Giving Programs Further, it is recommended that the appointment approval and all other personnel actions relating to this position be delegated to the President with the authority to redelegate in accordance with a plan for redelegation filed with the Board of Trustees. D. It is recommended that an Executive Management position, titled Director of Federal Relations, be established effective February 6, 1987. Executive Mgt. Director of Federal Relations Further, it is recommended that the appointment approval and all other personnel actions relating to this position be delegated to the President with the authority to redelegate in accordance with a plan for redelegation filed with the Board of Trustees. On a motion by Mr. Owen, supported by Mr. Wilson, THE BOARD VOTED to approve the Gift, Grant and Contract Report, with a total value of $6,492,699.90. A copy of the report, Agenda Attachment D, is attached to the file copy of the Board Agenda. Mr. Owen presented the report and recommendations of the Trustee Finance Committee: A. On a motion by Mr. Owen, supported by Ms. Sawyer, THE BOARD VOTED to approve the following Bids and Contracts: 1. A contract in the amount of $157,001 be awarded to Haussman Construction Company of Lansing, Michigan, and that a budget in the amount of $214,000 be established for the Renovation and Replacement of Two Elevators in Anthony Hall. 2. A contract in the amount of $400,879 be awarded to Haussman Construction Company of Lansing, Michigan, and that a budget in the amount of $450,000 be established for Renovation and Replacement of Four Elevators in Giltner Hall. 3. A contract in the amount of $164,519 be awarded to Schreiber Corporation of Detroit, Michigan, and that a budget in the amount of $195,000 be established to Replace Roofing on Wells Hall and the Cyclotron Building. Gift, Grant and Contract Report Trustee Finance Committee Bids and Contracts Two Elevators in Anthony Hall Four Elevators in Giltner Hall Replace Roofing on Wells Hall and Cyclotron Bldg. I I I I I | 10206 Exterior Restoration of Wells Hall, Fee Hall, and Kresge Art Center Investment Policyj Amendment MSU Alumni Association Life Membership Fund Participation in Risk-Sharing Facility Trustee Policy Committee February 6, 1987 4. A contract in the amount of $191,349 be awarded to Bornor Restoration, Inc. of Lansing, Michigan, and that a budget in the amount of $235,000 be established for Exterior Restoration of Wells Hall, Fee Hall, and Kresge Art Center. B. On a motion by Mr. Dade, supported by Mr. Owen, THE BOARD VOTED to approve that the Investment Policy (01-07-01) be amended to modify Section VIII - Endowment Spending to permit an upper spending limit of 6.325% in lieu of the present 5.5% and a lower limit of 5.175% in lieu of the present 4.5%. The spending rate for fiscal 1987-88 shall be set at 5.75% of the average quarterly market value of an endowment unit over the 1986 calendar year. C. On a motion by Mr. Owen, supported by Mr, Wilson THE BOARD VOTED to approve the establishment of the MSU Alumni Association Life Membership Fund as a fund functioning as an endowment. Income from this fund will be used to meet annual membership costs for new life members of the MSU Alumni Association. D. On a motion by Mr. Reed, supported by Mr. Dade, THE BOARD VOTED to approve that Michigan State University participate in the Risk-Sharing Facility currently being developed by the Council of Presidents of Michigan State Colleges and Universities for the purpose of providing excess liability coverage, provided that apparent advantages will accrue to the University. 9. Mr. Wilson presented the report of the Trustee Policy Committee. A. Mr. Wilson reported that he was encouraged by the presentation of the revitalization of Lifelong Education Programs which emphasizes the commitment the Board has made to sustaining and enhancing that program. Mr. Wilson thanked Provost Scott for the report. B. Dr. Sam Austin and Dr. Henry Blosser, Co-Directors of the National Superconducting Cyclotron Laboratory, arranged a presentation and tour of the Cyclotron Laboratory as a part of the review of academic programs. Mr. Wilson stated that the visit of the Cyclotron was extraordinary and he is proud that Michigan State is a vital partner in research efforts not only to the specific application of cancer therapy, but the extraordinary theories that are being generated by the scientists at the Cyclotron. Chairperson1 s Report 10. The Report of Chairperson Dade included the following: A. Mr. Dade thanked Ms. Sawyer for the educational and informative review of Africa with her slide presentation and comments. B. Mr. Dade expressed appreciation to Mr. Wilson and members of the Policy Committee for arranging the presentation, tour, and luncheon with members of the faculty and staff of the National Superconducting Cyclotron Laboratory. Trustee Committee- Appointments C. Mr. Dade stated it was a pleasure to report the appointments of Trustees to various committees: Trustee Policy Committee Trustee Finance Committee Patrick J. Wilson, Chairperson Joel Ferguson Dean Pridgeon Kathy Wilbur Lawrence D. Owen, Chairperson Malcolm G. Dade, Jr. Thomas Reed Barbara J. Sawyer D. Mr. Dade reminded members of the annual meeting of the Michigan Association of Governing Boards to be held at the Radisson Hotel in Lansing, February 15, 1987. Trustee Joel Ferguson has been appointed the MAGB delegate and Trustee Dean Pridgeon will serve as the alternate. The annual meeting of the Association of Governing Boards will be held in New Orleans, LA, March 22-24, 1987, and Mr. Dade encouraged as many Trustees as possible to attend this informative meeting. February 6, 1987 Fa Michigan State is pleased to be a part of a group of representatives of Governing Boards of Universities of the Big Ten. Trustee Kathy Wilbur has been appointed to represent Michigan State. A meeting of the group will be held at the University of Minnesota, May 31-June 1, 1987. G. The June, Board of Trustees meeting date is being changed to June 12, 1987, from June 5, 1987. The April meeting date will be changed to a date to be announced. H. Four members have represented the MSU Board of Trustees on the MSU Foundation Board. The MSU Foundation has changed its bylaws and, hereafter, there will be two Board of Trustee representatives on the Foundation Board. To insure that each member will have a two-year term the continuation of the appointments of Trustees Dade and Owen for a two-year term will set a precedent for the succession. 11. The meeting was adjourned. 10207 Chai rperson's Report cont. Board of Trustees Representation on MSU Foundation Board /J0hnDiBiaggio ^President y Acting Secretary i i I i i