10285 MINUTES OF THE MEETING OF THE BOARD OF TRUSTEES MICHIGAN STATE UNIVERSITY July 28, 1989 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, July 28, 1989. The minutes of the committee meetings are on file in the Office of the Secretary of the Board of Trustees. The meeting of the Board of Trustees was called to order by President John DiBiaggio at 1:30 p.m. in the Board Room of the Administration Building. Trustees present were: Malcolm G. Bade, Jr., Joel Ferguson, Lawrence D. Owen, Thomas Reed, Barbara J. Sawyer, and Kathy Wilbur. Trustees absent were: Dean Pridgeon and Robert E. Weiss. President DiBiaggio, Provost Scott, University officers present included: Secretary Davis, and Vice Presidents CantIon, Dickinson, Turner, and Wilkinson. Faculty Liaison representatives present were: Professors Selke and Silverman. Student Liaison representatives present were: Flynn, Koh, Martell, and Steinke. All actions taken were by unanimous vote of the Trustees present, unless otherwise noted. 1. On a motion by Mr. Owen, supported by Mr. Dade, THE BOARD VOTED to approve the proposed agenda. 2. On a motion by Mr. Reed, supported by Mr. Owen, THE BOARD VOTED to approve the Board Minutes of the meeting of June 9, 1989. 3. The following individuals addressed the Board of Trustees. Public Participation A. Mr. Mark VanPutten, an attorney on the staff of the National Wildlife Federation and Director of the Federations Great Lakes office, commented on a letter to President DiBiaggio requesting an investigation of a statement issued by the MSU Center for Environmental Toxicology regarding the published results of a NWF two-year study of health risks associated with consuming Lake Michigan sport fish. B. Mr. Mark Ludwig, President of the Residence Halls Association, questioned the budget proposal to raise the institutional support payment assessed to University Housing and asked the University to scrutinize the assessment. C* Mr. Dennis Martell, President of the Council of Graduate Students (COGS), expressed concern for the special fees to be assessed to College of Engineering and College of Veterinary Medicine students and commented of his disillusionment with the legislature's lack of recognition to the Universityf.s needs. Mr. Martell conveyed appreciation to the Board for the three credit tuition waiver for graduate students and the 1 percent stipend increase for graduate assistants. Ms. Susan Steinke, Executive Director of Associated Students of MSU, stated her concern for students who have financial constraints placed upon them because of not qualifying for financial aid. The possibility of a mid-year increase is a further concern. Ms. Steinke remarked that MSU is expected to be accessible and to maintain a premiere land-grant institution, yet the legislature does not provide funding for these needs. Mr. John Flynn, Student Council representative and College of Engineering student, conveyed hope that the special fee in the College of Engineering will be temporary until additional alumni and corporate support is secured. D. Mr. Allen J. Elzerman, an MSU student, conveyed personal concern for increased tuition and the difficulty created for parents to provide additional financial support. i i i i i ±0288 Public Participation continued July 28, 1989 E. Ms. Audrey Cross, representing the Forest View Citizens Association, informed the Board of the Association's plans to preserve, restore, and maintain Forest Road. The Association desires communication with the University and, while not opposed to development of a research park, it is concerned about the environmental impact on the Forest Road neighborhood. F. Ms. Kay Palinski indicated the Eyde Company's desire for a continuation of the developing relationship with the University to provide productive results with regard to technology transfer at the Hannah Technology and Ms. Palinski requested the University's support. Research Center. G. Mr. Jack Watters, a member of LANPAC, commented regarding a meeting held with developers, realtors, and concerned citizens about the rezoning of the property at Collins and Forest Roads to facilitate the planned research park. The forum requests consideration of the effects the research park could have on the private sector, the Lansing economy, and the local citizenry. President1s Report 4. The report of the President included the following: A. In comments regarding the budget, President DiBiaggio expressed the University's commitment to both access and quality. He stated that the total cost of attending Michigan State must reflect both the value and worth of an excellent university education. Tuition and fee rates for full-time, resident undergraduate, lower division students will increase $222.75 per year or 7.9 percent. The increase will include a $3 per term technology fee for all students. The guidelines also include a proposal for special fees of $75 per term for junior, senior, and graduate engineering students. Tuition for graduate professional students in the College of Veterinary Medicine will reflect an additional increment of $100 per term. The fees will support special equipment and research needs in both colleges. B. The Michigan Festival will be held on the campus and in downtown East Lansing, August 18-27. Events will include the Festival of Michigan Folklife coordinated by the MSU Museum, children's activities, MSU academic exhibits, a food arcade, a Michigan products gift Lent, and on-stage entertainment. President DiBiaggio commented that Michigan State is pleased to be a part of this exciting event and looks forward to the strengthened partnership with the Michigan Festival and the City of East Lansing. C. President DiBiaggio reported that when speaking to various organizations he has emphasized the importance of stronger support for K-12 education and the creation of better business and community relations. In each instance the message has been warmly received. The President commended the Legislature for the strong action taken in this particular session on behalf of K-12 education. D. Distinguished visitor Dr. Kuk Bom Shin, President of Korea National University of Education and an MSU College of Education graduate, was introduced by President DiBiaggio. Dr. Shin hosted President DiBiaggio and Trustee Emeritus Patrick Wilson during their visit to Korea in 1988. Personnel Actions 5. On a motion by Mr. Owen, supported by Mr. Dade, THE BOARD VOTED to approve the following personnel actions. Appointments A. Appointments 1) Funk, Roger L., AY~Professor, Department of Art, $60,000, with Tenure, effective September 1, 1989. 2) Smitherman, Geneva, AN-Professor, Department of English, $75,000, with Tenure, effective September 1, 1989. 3) Peters, George F., AN-Professor, Department of Linguistics and Germanic, Slavic, Asian and African Languages, $65,000, with Tenure, effective August 1, 1989. 4) Vasquez, Mary S., AY-Associate Professor, Department of Romance and Classical Languages, $40,500, with Tenure, effective September 1, 1989. i i I I I I ±0287 Persc-nnel Actions continued Appointments continued July 28, 1989 5) Vance, Irvin E., AY-Professor, Department of Mathematics, $60,000, with Tenure, effective September 1, 1989. 6) Davis, Hiram L., AN-Director, Libraries; Professor, Department of Educational Administration, $92,000, with Tenure, effective October 1, 1989. Provost Scott commented on the educational background and experience of each appointee. The appointments include three minorities and two women. He further remarked that during the last 100 years, only three individuals have held the title of Director of Libraries at Michigan State; Dr. Hiram Davis is the fourth. B. Other Personnel Actions Other Personnel Actions 1) Silverman, Henry, AY-Professor, Department of History, to add title of Secretary for Academic Governance, Assistant Provost for Academic Services and for a change in salary rate from $53,312 to $55,812, effective September 1, 1989. Provost Scott remarked while he doesn't usually comment about Other Personnel Actions, he would request an expression of appreciation and congratulations, by applause, to Professor Henry Silverman who has been a key person in the University's academic governance system in addition to serving as a Faculty Liaison representative to the Board of Trustees. 2) Keahey, Kenneth K., AN-Professor, Department of Pathology; Animal Health Diagnostic Laboratory, continuation as Director, Animal Health Diagnostic Laboratory, effective July 1, 1989 through December 31, 1989. Pursuant to University policy and Board action, Professor Keahey would have relinquished his administrative duties as of July 1, 1989. It is recommended that he continue the administrative duties for the period specified above. 3) Shapiro, Beth, AN-Librarian IV and Deputy Director, Libraries, to change title from Deputy Director to Acting Director and for a change in salary rate from $65,500 to $68,000, effective July 1, 1989 through September 30, 1989. 4) Turner, Moses, AN-Vice President for Student Affairs and Services, to add appointment as Professor, Department of Educational Administration, with Tenure, effective September 1, 1989. 6. On a motion by Mr. Owen, supported by Ms. Wilbur, the BOARD VOTED to approve the Gift, Grant and Contract Report, for the period May 15, 1989 through June 30, 1989, with a total value of $9,975,128.82. A copy of the report is attached to the file copy of the Board Agenda in the Office of the Secretary of the Board of Trustees. 7. Ms. Sawyer, Chairperson of the Trustee Finance Committee, presented the reports and recommendations of the Committee. A. On a motion by Ms. Sawyer, supported by Mr. Dade, the BOARD VOTED to approve the Bid and Contract recommendations of the committee: 1) A contract in the amount of $844,391 be awarded to ENSR Operations of Canton, Ohio, and that a budget in the amount of $1,110,000 be established for the project entitled: Campus — Retrofill Transformers. Gift, Grant and Contract Report Trustee Finance Committee Bids & Contracts Campus Retrofill Transformers 2) A contract in the amount of $233,360 be awarded to Grand River Construction, Inc., of Hudsonville,. Michigan, and that a budget in the amount of $317,000 be established for the project entitled: Human Ecology Building.- New Electrical Substation. Human Ecology Bldg. New Electrical Substation 3) A contract in the amount of $137,700 be awarded to Forrester Construction Company, Inc., of Flint, Michigan, and that a budget in the amount of $163,000 be established for the project entitled: Natural Science Building - Renovate Fume Hoods. Natural Science Bldg. renovate fume hoods Trustee Finance Committee cont. Victor Ray Gardner Scholarship and Delia K. Swsnder Fund Guidelines for Development of Budgets July 28, 1989 On a motion by Ms. Sawyer, supported by Mr. Reed, the BOARD VOTED to approve the establishment of the Victor Ray Gardner Scholarship and the Delia K. Swander Fund for Small Companion Animal Research and Care as funds functioning as endowments. On a motion by Ms. Sawyer, supported by Mr. Owen, the BOARD VOTED to adopt the Guidelines for the Development of the 1989-90 Budgets and direct the administration to implement the tuition and fee schedule contained therein, and to develop the General Fund, Agricultural Experiment Station, Cooperative Extension Service, and Intercollegiate Athletics budgets in accordance with these guidelines for submittal to the Board at its October meeting. Further, current 1988-89 year-end balances of $900,000 are authorized for use as a nonrecurring transition pool to bridge anticipated savings required to meet reallocation targets. Ms. Sawyer commended Mr. Martell and Ms. Steinke for their comments regarding the State's failure for action that could have resulted in greater equity for Michigan State. Ms. Sawyer reported that public recognition of the structure for funding of fiscal year equated students in this yearTs budget process is an important starting point for the Sawyer indicated support of the budget State of Michigan. guidelines as presented, but stated the administration and the Board reserve the right to review the guidelines in the fall when actual expenses and revenues are determined. Ms. Mr. Reed stated he supported the budget guidelines with reservation due to the irresponsible action of the Appropriations Committee. Chairperson Owen stated that there is no defense for a legislative action that provides various ranges of increases for universities and does not value the research universities and those that make an extra effort to attain national and international significance. Mr. Owen believes tuition costs should be contained and is persuaded that a 7.9 percent increase is the limit that should be imposed upon Michigan State students and their parents this year. Mr. Owen said he "believes that we can prudently balance the budget with that sort of increase, but had the legislature acted, in my view, properly we would not be stretching and squeezing to the extent that we are forced to do." President DiBiaggio reiterated his earlier comments of concern of the burden to students of increasing costs while the concern of access grows along with that burden. The quality of the institution must be maintained and access to an institution that is not of first-rate quality denies opportunity, so the University must be equally concerned with access and with opportunity. He said it will be very difficult to have a reduction in addition to the 5 percent colleges and units have already been asked to take for redistribution. The President is hopeful that students understand the administration and the Trustees are attempting to maintain an environment that is not overburdening and overwhelming in cost. With this action the University continues to jeopardize its ability to completely fulfill the responsibilities and mission and to genuinely respond to the needs of the State and its economic development. It is appreciated that the Board understands the position of both the administration and the students and is prepared to review this matter at a later date when there is a better understanding of the actual fiscal circumstances. Adoption of Residence Hall and University Apartments rates D. On a motion by Ms. Sawyer, supported by Mr. Owen, the BOARD VOTED to approve the adoption of the basic Residence Hall rate of $979 per term effective fall term 1989 and the University Apartments rates of $263 per month for a one-bedroom apartment and $289 per month for a two-bedroom apartment effective September 1, 1989. Michigan State remains among the lowest of Big Ten institutions in room and board costs and remains very low among the Michigan institutions. President DiBiaggio reported that, even with the increment, the rates are low yet include amenities such as linen service and telephones which are not available on other campuses. Ms. Sawyer commented on the efficiency of Michigan StateTs housing program and the quality of life in the residence halls. l 10289 Trustee Policy Commi ttee Revision of Hannah Professorship Program July 28, 1989 8. Mr. Ferguson, Chairperson of the Trustee Policy Committee, presented the reports and recommendation of the Committee. A. On a motion by Mr. Owen, supported by Mr. Dade, the BOARD VOTED to approve the revision of the John A. Hannah Professorship program to add one additional academic chair with an endowed value of $1,000,000. This chair can be funded through the appreciation in market value in this fund plus the reinvestment of accumulated income. Ferguson requested Provost Scott to comment on the Hannah Mr. Professorship in Integrative Studies. Dr. Scott reported that the program which began in 1969 has been revised by, the Board to increase the number of professorships and identify key areas of interdisciplinary scholarship appropriate to the mission of Michigan State University. It is possible to recommend adding a seventh chair due to the appreciation in market value of the funds together with the reinvestment of accumulated income. Six Hannah Professors are in areas that are interdisciplinary, the seventh one is in integrative studies. At a time when the University is making significant revisions in the undergraduate curriculum, this professorship will fulfill the original mission and the current one of melding liberal and professional education. B. At the morning committee meeting, Provost David Scott and Vice President for Student Affairs and Services Moses Turner provided an update on the plans and developments in implementation of THE MSU IDEA. A summary of planning and current activities was noted with respect to administrative thrusts, faculty recruitment, student recruitment and financial support, curriculum development and outreach, and the development of a climate supportive of pluralism and diversity. Update on MSU IDEA C. On a motion by Mr. Ferguson, supported by Mr. Reed, the BOARD VOTED to approve the Research Park Resolutions: Research Park Resolution WHEREAS, after investigation and careful consideration the Board of Trustees of Michigan State University has determined that development of a research park on the acreage owned by it and known as the Collins Road Property would be beneficial to Michigan State University, its faculty and students; and WHEREAS, the Board of Trustees has further determined that such development can best be accomplished by transfer of the Collins Road Property to the Michigan State University Foundation, by way of a deed restricting it to use as a scientific and technological research park; and WHEREAS, the Board of Trustees understands that the MSU Foundation intends to develop the Collins Road Property research park in a manner that best retains the natural beauty of the surroundings and protects the environmental aspects of the area; and WHEREAS, the Board of Trustees understands that the MSU Foundation intends to develop the Collins Road Property research park under the guidance of and in compliance with the attached Research Park Mission Statement; NOW, THEREFORE, BE IT RESOLVED that title to the Collins Road Property be transferred to the Michigan State University Foundation, a Michigan nonprofit corporation, by way of deed with restrictions substantially in the form of the draft Deed Restrictions-—Collins Road Property attached to these Resolutions; and BE IT FURTHER RESOLVED that concurrently with transfer of the Collins Road Property the Board of Trustees of Michigan State University obtain and accept an Option to Purchase the Collins Road Property from the Michigan State University Foundation, substantially in the form of the draft Option to Purchase attached to these Resolutions; and I I I I I 10230 Trustee Policy Commi ttee continued Research Park Resolution continued July 28, 1989 BE IT FURTHER RESOLVED that the Board of Trustees adopts the Research Park Mission Statement attached to these Resolutions, as being reflective of the goals and objectives of Michigan State University in supporting development of a research park; and BE IT FURTHER RESOLVED that the President or the Vice President for Finance and Operations of Michigan State University, and such other officers of the University as either may designate, each are authorized to take such steps and execute such documents as are necessary or advisable to implement the actions authorized by these Resolutions and generally to advance the goal of research park development on the Collins Road Property, and further are directed to deliver to the Michigan State University Foundation a copy of the Research Park Mission Statement adopted by these resolutions. A copy of the Research Park Mission Statement, draft Deed Restrictions - Collins Road Property, Option to Purchase, and related documents are attached to the file copy of the Board Agenda in the Office of the Secretary of the Board of Trustees* Mr, Ferguson commented that the proposal is an attempt to develop a research park that the University is very much involved in, while at the same time protecting the integrity of area research parks. Ms, Wilbur emphasized a desire for the Board to work in cooperation with the MSU Foundation as the project moves forward. Chai rperson1s Report The report of the Chairperson and Trustees included the following: A. Chairperson Owen reported that he had no additional comments. 10. The meeting was adjourned. DiBiaggio esident Mar y 1 eK.IDav %A Secretary Ph.D. I i i r t