10546 MINUTES OF THE MEETING OF THE MICHIGAN STATE UNIVERSITY BOARD OF TRUSTEES April 12, 1996 The Trustee Finance Committee and the Trustee Policy Committee meetings were held in the Board Room of the Administration Building beginning at 9:00 a.m. on Friday, April 12, 1996, Minutes of the meetings are on file in the Off ice of the Secretary of the Board of Trustees. The meeting of the Board of Trustees was called to order by President McPherson at 10:35 a.m. in the Board Room. Trustees present: Dolores M. Cook, Dorothy Gonzales, Russell G. Mawby, Colleen McNamara, Donald W. Nugent, John D. Shingleton, and Bob Traxler. Trustee absent: Robert E. Weiss. University officers present: President McPherson, Provost Simon, Secretary Pogel, Vice Presidents Denbow, Greenleaf, June, Webb, Webster, and Wilkinson, Acting Vice President Gast, and Executive Director Williams. Faculty Liaison representative present: Deborah Moriarty. Student Liaison representatives present: Bernadette Donohue, Matthew Nelson, and Laurin Stine, and Student Liaisons-elect Frank Aiello and Karin Peterson. All actions taken were by unanimous vote of the Trustees present, unless otherwise noted. 1. On a motion by Ms. Cook, supported by Dr. Mawby, THE BOARD VOTED to approve the proposed agenda. 2. On a motion by Mr. Nugent, supported by Mr. Shingleton, THE BOARD VOTED to approve the minutes of the Board meetings of February 9, 1996 and March 7, 1996. 3. Trustee GPA Award recipients for Spring Semester 1996 were congratulated for their exceptional academic performance. Vice Chairperson Cook and President McPherson presented awards to Tuan D. Nguyen, Ryan W. Hawley, and Robert M. Molloy. Amy B. Schowinsky, Gary E. Meyer, and Douglas E. Zongker were unable to attend. Tuan D. Ryan W. Robert Amy B. Gary E. Douglas Nguyen Hawley M. Molloy Schowinsky Meyer E. Zongker President's Report 4.0000 4.0000 3.9900 3.9869 3.9864 3.9855 GPA, GPA, GPA, GPA, GPA, GPA, First Highest (Tie) First Highest (Tie) Second Highest Third Highest Fourth Highest Fifth Highest A. B. C. D. E. President McPherson thanked Student Liaisons Bernadette Donohue, Sha-Ron Hampton, Matthew Nelson, and Laurin Stine for their assistance during the past academic year and said their discussions had been important in the resolution of issues. Student Liaison members introduced the new representatives: Frank Aiello, Chairperson of ASMSU Student Assembly, and Karin Peterson, Chairperson of ASMSU Academic Assembly. The new COGS representative will be Joseph Caro, Vice President June told the students it had been enjoyable working with them. Professors Caria Carieton, Maureen McDonough, Deborah Moriarty, Charles Nelson, and William Taylor were acknowledged by the President for serving as Faculty Liaisons. For the University to move forward on various issues, President McPherson said the discussions and leadership of the faculty were critical, and he was appreciative. President McPherson commented on the continued success of the MSU Debate Team. The team was congratulated for its achievements. The women's basketball team which exceeded preseason expectations was congratulated for their participation in the NCAA tournament. The President commented on the Board's visit to the School of Journalism Laboratory Open House where the newest equipment and technology was demonstrated in producing a newsletter. I 1 Trustee GPA Award Recipients President1s Report 5. Guiding Principles Report 10547 April 12, 1996 jGuiding Principles I I Vice President Greenleaf reported on South Africa and the Guiding Principles involved with the initiative, such as Diversity within' community and Problem Solving. The purpose has been to reengage MSU in South Africa after the University had taken a lead in opposing apartheid* As a result of past activity, Michigan State is well known and highly respected. The Provost will provide $50,000 in seed money to match funds from various colleges. Currently, the Colleges of Agriculture and Natural Resources, Education, and Social Science have been most actively involved. Professor Donald Mead, a leading agricultural economist, has also played an important role. Activities in South Africa are very different than in earlier years. Foundations and governmental agencies are giving funds to institutions, so in order for MSU to participate/ partnerships will have to be formed. 6. There were no requests to address the Board of Trustees on issues germane to the agenda. 7. Personnel Actions Provost Simon presented the following personnel action: A. Appointment jPublic participation - |no requests Personnel Actions ^Appointment 1) King, Lonnie J., AN-Dean, College of Veterinary Medicine; Professor, Department of Large Animal Clinical Sciences, $140,000, with tenure, effective July 1, 1996, On a motion by Dr. Mawby, supported by Ms. Gonzales, THE BOARD VOTED to approve the appointment recommendation. Dr. Simon reported that the search committee reached a strong consensus on Dr. King's candidacy. He was also the choice of the President and Provost. Dr. King has been described as a man of great vision who will help guide the future of Veterinary Medicine in its partnerships with Agriculture and Human Medicine. He is a leader with an inclusive style, is articulate, and a powerful communicator. Dr. Waldo Keller was recognized for serving as Acting Dean and then Dean during the search. Provost Simon characterized Dr. Keller as a bridge builder with faculty and other colleges; he prepared the college for the new dean. . B. Information Reports of Academic Personnel Actions of February 23, 1996 and March 29, 1996 were distributed with the Board Agenda and have been included with the agenda materials in the Office of the Secretary of the Board of Trustees. Information Reports ?of Academic Personnel Actions 8. The Gift, Grant and Contract Report for the period of January 13, 1996 through March 15, 1996 was presented by Dr. Gast. The report is a compilation of 311 Gifts, Grants and Contracts, 77 Consignment/Non-Cash Gifts, and no Consignment/Non-Cash Loans, with a total value of $23,277,982.80. The report is included with the Board Agenda in the Office of the Secretary of the Board of Trustees. , Grant and Contract Report On a motion by Mr. Shingleton, supported by Dr. Mawby, THE BOARD VOTED to approve the Gift, Grant and Contract Report. Dr. Gast commented that at the February Board meeting he had reported there had been no impact on the University's sponsored research programs by the shut- downs of the federal government. At this particular time, however, he believes there is some impact; but it is not serious. It is currently taking longer to get grants approved by federal agencies, but it is being monitored and the University should meet its expected annual goal. 9. The Trustee Finance Committee report and recommendations were presented by Committee Vice Chairperson Nugent. A. Bids and Contract Awards were recommended as follows: 1) a contract in an amount not-to-exceed $170,000 be awarded to Butler Restoration, Inc., of Lansing, Michigan, and that a budget in the amount of $210,000 be established for the project entitled: Akers Hall - Exterior Restoration. [Trustee Finance Commi ttee Bids and Contract Awards Akers Hall Exterior Restoration i ]! 10548 Trustee Finance Committee cont. Bids and Contract Awards cont. Hubbard Hall Replacement Roof International Center Roof Replacement McDonel Hall Roof Replacement Shaw Hall Roof Replacement Tennis Court Replacement Butterfield Hall Barrier Free Alterations Chemistry Alterations Holmes Hall - Lyman Briggs College Alterations Mason Abbot Halls Restoration Troy Management Education Center Veterinary Medical Center Renovations Akers, Holmes, and Shaw Halls - Student! Data Service Campus Fiber Optic System Phase 111 Birch Road Reconstruct!on Clinical Center Service Drive Reconstruction April 12, 1996 9. A. 2} a contract in the amount of $214,900 be awarded to CEI Roofing, Inc., of Howell, Michigan, and that a budget in the amount of $270,000 be established for the project entitled: Hubbard Hall - Roof Replacement Sections 1, 4, 5, 7, 8, 9, 10, 12, 13, and 16. 3) a contract in the amount of $259,847 be awarded to Bruno Martin Co., of Saginaw, Michigan, and that a budget in the amount of $323,000 be established for the project entitled: International Center ~ Roof Replacement Areas 2 through 5, and 7 through 10. 4) a contract in the amount of $294,930 be awarded to Schreiber Corporation, of Detroit, Michigan, and that a budget in the amount of $360,000 be established for the project entitled: McDonel Hall -Roof Replacement Sections 8 through 17. 5} a contract in the amount of $245,892 be awarded to Stephenson & Son's Roofing, Inc., of Burton, Michigan/and that a budget in the amount of $310,000-be established for the project entitled: Shaw Hall - Roof Replacement Sections 1, 3, 7, 9, 10, 12, 15, 17, 18, 20, 21, 23, 25, and 30. 6) a contract in the amount of $1,487,000 be awarded to ABC Paving Company, of Trenton, Michigan, and that a budget in the amount of $1,810,000 be established for the project entitled: Tennis Court Replacement. 7) a contract in the amount of $184,000 be awarded to Moore Trosper Construction Company, of Holt, Michigan, and that a budget in the amount of $230,000 be established for the project entitled: Butterfield Hall - Barrier Free Alterations- 8) a contract in the amount of $442,200 be awarded to Moore Trosper Construction Company, of Holt, Michigan, and that a budget in the amount of $533,000 be established for the project entitled: Chemistry - Alter First, Second and Fourth Floor Rooms. 9} a contract in the amount of $234,100 be awarded to Moore Trosper Construction Company, of Holt, Michigan, and that a budget in the amount of $287,000 be established for the project entitled: Holmes Hall - Lyman Briggs College Alterations to Rooms Cl, C2, and C3. 10) a contract in the amount of $124,258 be awarded to Hazar-Bestos Corporation, of Lansing, Michigan, for the project entitled: Mason Abbot Halls Restoration. - Asbestos Abatement. 11) a contract in the amount of $276,000 be awarded to Barton & Barton Company, of Rochester Hills, Michigan, and that a budget in the amount of $356,000 be established for the project entitled: Troy Management Education Center - Conversion to Natural Gas. 12) a contract in the amount of $159,000 be awarded to G* H. Ross Contractor, of Holt, Michigan, and that a budget in the amount of $222,000 be established for the project entitled: Veterinary Medical Center - Lecture Hall E-1GQ Renovations. 13) a contract in the amount of $1,339,317 be awarded to Clover Communications, Inc., of Novi, Michigan, and that a budget in the amount of $2,050,000 be established for the project entitled: Akers, Holmes, and Shaw Halls - Student Data Service. 14) a contract in the amount of $2,157,000 be awarded to Kares Construction Co., Inc. of Lansing, Michigan, and that a budget in the amount of $4,000,000 be established for the project entitled: Campus - Fiber Optic System Phase III. 15) a contract in the amount of $120,594 be awarded to Capitol Excavating and Paving Co., Inc., of Mason, Michigan, and that a budget in the amount of $156,800 be established for the project entitled: Birch Road Reconstruction. 16) a contract in the amount of $125,495 be awarded to Advanced Paving Co'., of. Albion, Michigan, and that a budget in the amount of $159,300 be established for the project entitled: Clinical Center Service Drive Reconstruction. l I 9. A. 17) a contract in the amount of $161,477 be awarded to Capitol Excavating and Paving Co., of Mason, Michigan, and that a budget in the amount of $219,200 be established for the project entitled; Red Cedar Road Reconstruction. April 12, 1996 18) a contract in the amount of $756,864 be awarded to Cadwell Brothers Construction Company, of Lansing, Michigan, and that a budget in the amount of $1,078,000 be established for the project entitled: Commuter Parking Lot 100 Construction. 19) a contract in the amount of $221,000 be awarded to Sandborn Construction, Inc.-, of Portland, Michigan, and that a budget in the amount of $287,000 be established for the project entitled: Parking Lot 11 Reconstruction. 20) a contract in the amount of $299,083.15 be awarded to Cadwell Brothers Construction C0V7 of Lansing, Michigan, and that a budget in the amoumt of $357,800 be established for the project entitled: Parking Lot No. 5 Reconstruction. i i 10549 Trustee Fi nance Committee cont. jBids & Contract (Awards cont. {Red Cedar Road jReconstruction [Commuter Parking [Lot 100 Construction parking Lot 11 Reconstruction Parking Lot 5 Reconstruction 21). a contract in the amount of $1,658,829/70 be awarded to E* T. Mackenzie Co., of Grand Ledge, Michigan, and that a budget in the amount of $2,175,000 be established for the project entitled: Commuter Parking Lot 79 Construction. [Commuter Parking Lot 79 Construction 22) a contract in the amount of $113,333.70 be awarded to Butler Restoration, Inc., of Lansing, Michigan, and that a budget in the amount of $175,000 be established for the project entitled: Parking Ramp No. 1 •:- Restoration 1996• Parking Ramp No. 1 sResto ration On a motion by Mr. Nugent, supported by Mr. Traxler, THE BOARD VOTED to approve the Bids and Contract Award recommendations; B. Funds Functioning as Endowments It was recommended to establish a fund functioning as an endowment for the Department of Human Environment and Design Faculty Development. Funds Functioning [as Endowments Human Environment Jand Design It was recommended to establish a fund functioning as an endowment to be known as the Helen Tretheway Discretionary Fund for the MSU School of Music. Helen Tretheway School of Music I It was recommended to establish a fund functioning as an endowment to be known as the Helen Tretheway Endowed Voice Scholarship. Helen Tretheway Voice Scholarship It was recommended to establish a fund functioning as an endowment, the Wilkie Crop and Soil Sciences Fund/ Wilkie Crop and Soil Science 1) 2} 3) 4} On a motion by Mr. Nugent/supported by Dr. Mawby, THE BOARD VOTED to approve the Funds Functioning as Endowments. C. It was recommended to adopt the basic residence halls room and board rate of $1,971 per semester effective fall semester 1996, It was also recommended to adopt the basic University Apartments rates of $399 per month for a remodeled, one-bedroom apartment and $441 per month for a remodeled, two-bedroom apartment effective August lf 1996. On a motion by Mr. Nugent, supported by Mr. Shingleton, THE BOARD VOTED to approve the Residence Halls and University Apartments rate recommendations. [Residence Halls Room and Board Rate University Apartments Rates D. It was recommended to appoint Arthur Andersen LLP as the University's auditors for the 1995-96 fiscal year. Appointment of Auditors On a motion by Mr. Nugent, supported by Dr. Mawby, THE BOARD VOTED to approve the recommendation. 10550 Trustee Finance Commi ttee cont. Budget Actions MSU Tuition Guarantee Extended April 12/1996 9. E. Budget Actions 1) MSU Tuition Guarantee Guidelines for Development of 1996-97 Budgets i It was recommended to extend the MSU Tuition Guarantee for the Fall 1996 entering class. Tuition rate increases for the next three years (fiscal years 1996-97, 1997-98, and 1998-99) will be held to the projected rate of inflation, and, as an added incentive to the students of the Fall 1996 entering freshman class to graduate in four years, this assurance will be extended to them for a fourth year (fiscal year 1999-2000). This action is contingent upon state appropriation increases for Michigan State University's general fund of at least the rate of inflation. After adjustments for inflation, this action will result in no real tuition increases for the next three years for all students and for the next four years for the Fall 1996 entering freshman class, If the state does not provide at least cost of living increases, it is anticipated that the tuition decision will be considered by the committee accordingly in order to sustain quality* The MSU Tuition Guarantee acknowledges the potential for restructuring the existing tuition and fee structure to address concerns such as course load, and part-time and off-campus students, within the context of an overall inflation-based adjustment. 2) Guidelines for the Development of the 1996-97 Budgets Vice President Wilkinson said that the Guidelines are basically for a 3% growth in the operating budgets, a 3% tuition and fee adjustment in keeping with the Tuition Guarantee, and working with a 1% efficiency factor with the base operating units to provide dollars for program reallocations. In addition, the Guidelines provide for a Quality Fund to focus on special University needs to ensure excellence. If the State appropriation is above the general rate of inflation, those funds would be released following discussions with the Board at a later date. The Guidelines suggest that the Quality Fund should be used for financing part of the new science building and providing for faculty market adjustments as high priorities. Remaining dollars in the Quality Fund would go to a series of significant programmatic priorities. Provost Simon noted that the faculty salary recommendation inherent in the Guidelines is consistent with the structure of the Faculty Affairs recommendation including that all increases be based on merit. Where it differs is in the amount recommended in terms of the specific percentages. The Quality Fund would be used to deal with the recruitment and retention of those key faculty essential to MSU's reputation. Provost Simon said that a budget from her perspective is always an art of the possible, as opposed to the art of the preferred. Given the quality and contributions of the MSU faculty, it would have been justifiable to have recommended much more in terms of the compensation increase. But in the context of the art of the possible, there is also a need to support the Science Building. This should not be interpreted as bricks and mortar being more important than people, but that for the faculty to be successful, it must have facilities such as the Science Building to advance quality and reputation• It was recommended to adopt the Guidelines for the Development of the 1996-97 Budgets and direct the administration to implement the tuition and fee schedule contained herein, and to develop the General Fund, Agricultural Experiment Station, Michigan State University Extension, and Intercollegiate Athletics budgets in accordance with these guidelines for submittal to the Board of Trustees at its June meeting. On a motion by Mr. Nugent, supported by Ms. Gonzales, THE BOARD VOTED to approve the recommendations. Reports on Bond Financing and Investment Restructuring F. Trustee Nugent reported that the Committee received a report on the recent bond financing authorized by the Board of Trustees at its February meeting. The Committee also received a report on investment restructuring actions taken by the Committee pursuant to delegated authority granted by the Board of Trustees at its February meeting. i f i 10551 iTrustee Finance Committee cont. April 12, 1996 9* Gv Vice President Wilkinson presented a rendering of the new tennis courts. H. Trustee Traxler advised the Committee that he sent a letter to Chairperson Weiss announcing his resignation as Chairperson of the Trustee Finance Committee. He said it had been a pleasure to serve as Chairperson and thanked the President for his help and cooperation. Mr* Traxler also thanked Mr. Wilkinsonr Mr, Terry, Dr. Simon, and the professional staff. President McPherson thanked Trustee Traxler for his service to the committee and assistance with the tuition guarantee proposal. The President said he looked forward to Mr. Traxler!s continued advocacy for both quality and cost attainment. 10. Committee Chairperson McKamara presented the report of the Trustee Policy Committee as follows. Trustee Policy Committee A. By Trustee McNamara reported there were no action items to be presented by the Policy Committee. Two Ordinances, skateboarding and sales, will be reviewed by the Committee over the next two months and a recommendation is expected to be presented at the June Board meeting. 1 Ordinances ;Skateboarding and sales to be reviewed At the Committee meet ing, Dr. Ralph W. Bonner, Director of the Off ice of Affirmative Action, Compliance and Monitoring, presented the 1994-95 Annual Report on Affirmative Action and Diversity. Dr. Bonner stated that "diversity and pluralism are essential for a university like MSU to maintain its continuing world-class distinction." He believes "that affirmative action is not irrelevant. It remains an important tool in the efforts to continue making progress toward a fairer and more representative America." Affirmative Action and Diversity Annual Report 11. President McPherson reported on some of the more significant awards of Michigan State faculty. President's Report A. B. C. D. Howard Brody, Professor of Family Practice and director of MSU's Center for Ethics and Humanities in the Life Sciences, has been elected to the prestigious Institute of Medicine (IOM). The Institute is composed of more than 500 members, all of whom have made significant contributions to health and medicine. James J. Pestka, Professor of Food Science and Human Nutrition, has been elected to fellowship in the American Academy of Microbiology. Fellowship is the highest honor the Academy bestows. June Thomas, Professor of Geography and Urban Affairs, has received the Gold Award of the Society of National Association Publications EXCEL awards. Hira L. Koul, Professor of Statistics and Probability, has been awarded the Alexander von Humboldt Research Award for senior U.S. Scientists. The award, offered by the German government, will enable him to study for one year at any university in Germany. 12. Trustees1 Comments A. Trustee Cook remarked that it had been a pleasure to represent Chairperson Weiss at the Board meeting as he was attending the out-of- state wedding of his son. B. C. Ms. Cook said she looked forward to commencement as one of the highlights of the academic year. Trustee Cook complimented student employees, especially Lisa Roelof and Brian Radowick, for their assistance in the offices and in making guests comfortable in the football box. Trustee Traxler said he had neglected to mention Secretary Pogel in his earlier comments and wanted to acknowledge her excellent performance. Trustee Mawby expressed appreciation for the leadership Trustee Traxler has provided to the Finance Committee and is delighted that he will continue as a member of the committee* Dr. Mawby said he continues to be impressed with people and exciting events of significance and substance that are taking place at the University. One example is the CQI Program which he believes will enhance the character of the University and the experience everyone who engages with the University will have. Chairperson's Report and Trustees1 ' Comments , ill s 10552 April 12, 1996 Chairperson's Report and Trustees' Comments continued 12. D. Trustee McNamara stated that she is quite alarmed about the language and discussion regarding race that has recently appeared on The State News editorial page. She does not believe it is intellectual discussion representative of the majority of students/ faculty, and staff at the University. E. F. G. Trustee Nugent thanked Trustee Traxler for his leadership as Finance Committee chairperson. He said he was pleased that Trustee Traxler would continue as a member of the Finance Committee. Trustee Gonzales commented on the Affirmative Action report presented by Dr. Bonner. She stated that inclusiveness and opportunity at the University are the result of many individuals. In particular, she recognized William Wiseman as an individual who has demonstrated inclusiveness in purchasing practices over a long career. Ms. Gonzales thanked Trustee Traxler, in his role as committee chair, for challenging Board members to be prudent. Trustee Shingleton thanked Student Liaison members for their contributions as representatives of the student body. He encouraged Trustees to attend the honor awards program for handicapper students that afternoon. Mr. Shingleton also commended the committee which selected the new dean of Veterinary Medicine and complimented Dr. Waldo Keller for his role. Public Participation on Other issues 13. The following individuals addressed the Board of Trustees on issues not germane to the agenda. A, Maunda Burke and Amy Shindorf, MSU students, encouraged the University to participate in the U.S. Environmental Protection Agency's Green Lights program. They recommended that the University replace its T-12 light bulbs with a T-8 light bulb which uses less energy, produces more light, and needs to be replaced much less often creating a savings of work hours. Executive Session not requested 14. An Executive Session was not requested. 15. On a motion by Ms. Gonzales, supported by Mr. Traxler, the meeting adjourned at 11:33 a.m. /Pet&r McPherson, President fancv H; Poael. Seer Nancy H. Pogel, Secretary ,