10315 MINUTES OF THE MEETING OF THE BOARD OF TRUSTEES MICHIGAN STATE UNIVERSITY June 8, 1990 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, June 8, 1990, 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 1:20.p.m. in the Board Room of the Administration Building. Trustees present were: Joel Ferguson, Lawrence. D. Owen, Dean Pridgeon, Thomas Reed, Barbara J. Sawyer, Robert E. Weiss, and Kathy Wilbur. Trustee absent: Malcolm G. Dade, Jr. University officers present included: President DiBiaggio, Provost Scott, Secretary Davis; Vice Presidents Cantlon, Guyer, Kurz, Turner, and Wilkinson. Faculty Liaison representative present was: Professor Van Tassell. Student Liaison representatives present were: Flynn, Martell, and Williams. 1. On a motion by Mr. Owen, supported by Ms. Sawyer, THE BOARD VOTED to approve the proposed agenda. 2. On a motion by Mr. Owen, supported by Mr. Reed, THE BOARD VOTED to approve the Minutes of the April 6, 1990, Board meeting. 3. President DiBiaggio and Chairperson Owen presented Trustee GPA Awards for Spring Term 1990 to Sherri A. Fresorger, Kevin M. Groothuis, David A. Wollman, and Hatem Y. Goucha. The students were commended for their academic achievements which resulted in three recipients graduating with a perfect 4.0 grade point average and the fourth student with a 3.9907. 4. The following individuals addressed the Board of Trustees on the subjects listed: Trustee GPA Award Recipients Public Participation Speaker Subject 1) Jed Magen, Faculty member, Department of Psychiatry Child Care in the University Community 2) John Roetman, MSU Retiree MSU Retirees Pension Benefits 3) John Anderson, Student People's Park 4) Glenn Clavet, Student and Staff member Substance Abuse on Campus 5) James C. Schaper, Student Concerns about work conditions for Fall of 1990 6) John Flynn, Student Comments of a Graduating Senior 5. The report of the President included the following: President's Report A. President DiBiaggio reported that degrees would be awarded to 3,410 undergraduates and 1,145 advanced candidates at Spring Term commencements. Mr. Lee Iacocca, Chair and Chief Executive Officer of the Chrysler Corporation, would be the speaker at the undergraduate ceremony where he would be awarded an Honorary Doctor of Engineering Degree. The speaker at the advanced degree ceremony would be Dr. Ralph Smuckler, Dean of International Studies and Programs. i i i 1G3I6 Presidents Report continued Personnel Actions Appointment June 8, 1990 B. President DiBiaggio announced the Big Ten has voted Penn State as its eleventh member and all of the institutions are looking eagerly to Penn State's contributions to the Big Ten, the CIC, and MUCIA. Dr. DiBiaggio reported that at the meeting he conveyed the concerns expressed by the Board, the Athletic Council, and others. However, the Presidents have agreed the decision has been made that the deliberation will not be made public and everything possible must be done to assure mutual benefits and outcomes. The Presidents have also been assured that Penn State will become an active participant in the Big Ten in both the academic and athletic areas* C. President DiBiaggio provided an overview of the UniversityTs diversity by highlighting activities of the past year including awards and distinctions received by MSU faculty and students, recently passed legislation granting full police officer/peace officer status to University police through their governing boards, and successful People to People meetings with community leaders in Benton Harbor, Battle Creek/Kalamazoo, and Grand Rapids. He reported it has been a very good year at Michigan State University. On a motion by Ms. Sawyer, supported by Ms. Wilbur, THE BOARD VOTED to approve the following personnel actions. A. Appointment 1. Bokemeier, Janet L., AN-Professor, Department of Sociology, - $70,000, with Tenure, effective July 1, 1990. Other Personnel Actions B. Other Personnel Actions 1. Andrew, Gwen, AN-Professor, Dean's Office, College of Social Science; Department of Social Work, to add title Acting Dean, Dean's Office, College of Nursing; to delete assignment Dean's Office, College of Social Science, effective September 1, 1990 to August 31, 1991; and for a change in retirement date from July 1, 1991 to July 1, 1992. Pursuant to University policy and Board Action, Professor Andrew would have relinquished her administrative duties from September 1, 1990 forward. It is recommended that she continue the administrative duties for the period specified above. C. Promotion and Tenure Recommendations The report of Promotion and Tenure Recommendations is attached to the f i le copy of the Board Agenda in the Office of the Secretary of the Board of Trustees. On a motion by Ms. Wilbur, supported by Ms. Sawyer, THE BOARD VOTED to approve the Gift, Grant and Contract Report for the period March 12, 1990, through May 21, 1990, with a total value of $17,256,815.59. 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. 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. Reed, THE BOARD VOTED to approve the following Bid and Contract recommendations with a consent agenda format. 1) A contract in the amount of $145,000 be awarded to Design & Build, Inc. of Lansing from Lansing, Michigan, and that a budget in the amount of $170,000 be established for the project entitled: New Horticultural Demonstration Gardens -•. Entrance Pavilion and Sign Walls. 2) A contract in the amount of $186,500 be awarded to Kares Construction Company of Lansing, Michigan, and that a budget in the amount of $248,000 be established for the project entitled: Marshall Hall - Handicapper Alterations. 3) A contract in the amount of $134,200 be awarded to Haussman Construction Co., of Lansing, Michigan, and that a budget in the amount of $220,000 be established for the project entitled: Music Building - Main Entrance Barrier Free Construction. Promotion and Tenure Recommendati ons G i f t, Grant and Contract Report Trustee Finance Committee Bid & Contract Recommendati ons New Horticulture Demonstration Gardens Marshall Hall Handicapper Alterations Music Building Main Entrance Barrier Free Construction I I 1 i A I I I ±0317 Trustee Fiannce Committee continued Fee Hall Parking Lot Expansion Parking Ramp No. 1 Restoration 1990 Parking Ramp No. 2 Restoration 1990 Regional Chilled Water Plant #1 ..- Addition #3 Steam Tunnel Harrison Avenue, Kalamazoo Street Increase in retiree benefits (UNCRP) June 8, 1990 4) A contract in the amount of $243,900 be awarded to Design & Build, Inc. of Lansing, from Lansing, Michigan, and that a budget in the amount of $322,000 be established for the project entitled: Parking Lot 30 - Expansion (Fee Hall). 5) A contract in the amount of $628,041.80 for the Base Bid plus Alternates No. 1 and No. 2, be awarded to Western Waterproofing Company, of Detroit, Michigan, and that a budget in the amount of $763,000 be established for the project entitled: Parking Ramp No. 1 - Restoration 1990. 6) A contract in the amount of $227,962.50 for the Base Bid plus Alternates No. 1 and No. 2, be awarded to D.C. Byers Company/Lansing, of Lansing, Michigan, and that a budget in the amount of $355,000 be established for the project entitled: Parking Ramp No. 2 — Restoration 1990. 7) A contract in the amount of $394,900 be awarded to Design & Build, Inc. of Lansing from Lansing, Michigan, and that a budget in the amount of $467,000 be established for the project entitled: Regional Chilled Water Plant #1 - Addition #3 (Architectural). 8) A contract in the amount of $448,900 be awarded to Granger Construction Company of Lansing, Michigan, contingent upon the City of East Lansing proceeding with the Harrison Avenue Bridge widening project, and that a budget in the amount of $535,000 be established for the project entitled: Steam Tunnel -Harrison Avenue-Kalamazoo Street. B. On a motion by Ms. Sawyer, supported by Mr. Owen, THE BOARD VOTED to approve an increase in the monthly benefits for retirees in the University Non-Contributory Retirement Plan (UNCRP), effective October 1, 1990, according to the following formulas: 1) For those retirees who did not participate in the TIAA-CREF retirement plan with a University contribution (known as the "UNCRP only" group), a 2% increase in monthly UNCRP benefit for each full year since the date of first payment of benefits, through March 31, 1990. 2) For those retirees who participated in TIAA-CREF with a University contribution and receive from UNCRP either a benefit attributable to service prior to participation in TIAA-CREF (known as the "frozen benefits" group) or an amount based upon a minimum guarantee (known as the "comparison" group): a. A 2% increase in monthly UNCRP benefit for each full year since the date of first payment of benefits for those whose benefits began prior to April 1, 1969. b. A 1.5% increase in monthly UNCRP benefit for each full year since the date of first payment of benefits for those whose benefits began between April 1, 1969, and March 31, 1976. c. A 1% increase in monthly UNCRP benefit for each full year since the date of first payment of benefits for those whose benefits began between April 1, 1976, and March 31, 1983. C. On a motion by Ms. Sawyer, supported by Mr. Reed, THE BOARD VOTED the redeployment of investment assets currently managed internally through the appointment of: Redeployment of Investment Assets 1) TA Associates Realty as a real estate manager with an allocation of $3.5 million for the Advent Realty Limited Partnership II. 2) Trust Company of the West (TCW) as a restructuring investment manager with an allocation of $3.5 million for TCW Special Credits Fund II. These appointments are subject to completion of appropriate legal documents as reviewed by the Office of the General Counsel. D. On a motion by Ms. Sawyer, supported by Mr. Owen, THE BOARD VOTED to approve the revision of the current Statement of Investment Objectives for the Endowment and Retirement Funds to include the investment managers referenced in the previous action. Revision of Statement of Investment Objectives i i Trustee Finance Committee continued Year-end Projects June 8, 1990 E. On a motion by Ms. Sawyer, supported by Mr. Owen, THE BOARD VOTED to approve the following year-end projects financed from the General Fund during Fiscal Year 1989-90: a. Handicapper Accommodations b. Road Repairs and Deferred Maintenance Projects c. The.MSU IDEA, d. Transition Funding/Course Access $250,000 $500,000 $250,000 $700,000 Adotpion of Interim Budget F. On a motion by Ms. Sawyer, supported by Mr. Owen, THE BOARD VOTED to adopt the interim budget which will permit the operation of the University at 1989-90 budget expenditure levels until the 1990-91 budgets have been established. This expenditure authorization will be as follows: ..$375,898,000 University General Fund Agricultural Experiment Station.......$ 26,441,376 $ 29,513,768 Cooperative Extension Service... $ 12,379,500 Intercollegiate Athletics Program .. Membership in Tri-j County Metro ; Narcotic Squad \ Governmental Board; Annual audit Ernest & Young Trustee Policy Committee Amend MSU Ordinance • A6.039 G. On a motion by Ms. Sawyer, supported by Mr. Reed, THE BOARD VOTED to approve the recommendation that Michigan State University through the Department of Public Safety become a member of the Tri-County Metro Narcotic Squad Governmental Board and that the Director of the Department of Public Safety or designee represent the University on this board. H. At the morning meeting, the Committee discussed the scope of the annual audit with representatives from Ernst & Young. 9. Mr. Weiss presented the Trustee Policy Committee reports and recommendations as follows: On a motion by Mr. Weiss, supported by Ms. Wilbur, THE BOARD VOTED to amend Michigan State University Ordinance 46.039 to be in compliance with a mandatory provision of State law regarding impoundment of vehicles if it is determined individuals have six or more outstanding violation citations. Dissolution of j. School of Health j Education, Counseling Psychology & Human\ Performance; re- establish Phy. Ed. & Exercise Science! Establish Dept. Physical Medicine &. Rehabilitation B. On a motion by Mr. Weiss, supported by Ms. Wilbur, THE BOARD VOTED dissolution of the School of Health Education, Counseling Psychology and Human Performance, and reestablishment of a department designated as the Department of Physical Education and Exercise Science in the College of Education. C. On a motion by Mr. Weiss, supported by Mr. Owen, THE BOARD VOTED establishment of a Department of Physical Medicine and Rehabilitation in the College of Osteopathic Medicine. Committee Reports D. At the morning meeting, the Committee received the following reports: Academic Admin- istrative Positions MSU Alumni Association Report Public Relations Report 1) Dr. Scott provided a report on academic administrative positions which have been filled and those currently vacant. He also reported there are four dean searches in progress as well as searches for 14 chairpersons/unit directors. 2) Dr. Charles Webb, Executive Director of the MSU Alumni Association, reported on the initiatives undertaken during the past year. 3) Mr. Terry Denbow, Director of Public Relations and Assistant Vice President for University Relations, introduced the annual Public Relations report. The following staff members presented reports of their divisional activities: Ms. Kathleen McKevitt, Publications; Ms. Nancy Brent, Freedom of Information Officer; and Mr. David Broi^n, Broadcast/Marketing/Photo. Chai rperson1s Report 10. The report of the Chairperson and Trustees included the following: A. Mr. Owen expressed appreciation on behalf of the Board to Dr. John Cantlon and commented on his distinguished career at the University. Mr. Reed supported those comments. i 10319 June 8, 1990 B. C. D. E. Mr. Weiss stated that he wished to respond to the public participant who commented about substance abuse since chemical dependency is an underlying problem in dealing with crime. Mr. Weiss believes that Michigan State, as a land-grant University- has a mission and an obligation to develop effective substance abuse training and treatment which could be implemented in the community. Trustee Comments Mr. Ferguson commented on the effectiveness of the open discussion that occurred at the special Board meeting on June 2. Mr. Dennis Martell, student liaison member, emphasized the importance of child care to graduate and undergraduate students. Ms. Sawyer requested a report from Dr. Moses Turner on University child care. Dr. DiBiaggio welcomed Dr. Moses Turner to the first Board meeting since returning from a recent illness. 11. The meeting was adjourned. ) iB iag g io ^ f e s i d e nt Marylee Secretary I I i i