MINUTES OF THE MEETING OF THE MICHIGAN STATE UNIVERSITY BOARD OF TRUSTEES April 10, 1998 The Trustee Finance Committee and Trustee Policy Committee of the Whole meeting s w ere held in the Board Room of the Administration Building beginning at 9:00 a.m. on Friday, April 10, 1998. Minutes of the meetings are on file in the Office of the S ecretary of the Board of Trustees. Trustee GPA Aw ards for Spring Semester 1998 w ere presented follow ing the Trustee Finance Committee meeting and prior to the Policy Committee of the Whole meeting . President McPherson announced the recognition w ould take place out of the usual order on the agenda since some of the students had to attend class. Each of the tw elve students w ill graduate w ith a 4.0 grade-point average. Chairperson Shingleton and President McPherson presented aw ards to Daniel S. Balint, Sarah E. Cloud, Brent M. Hendricks, Natalia N. Smirnova, Lissa A. Steffey, and Michael E. Young. Michell e M. DeRose, Paul T. Fanson, Tauny L. Histed, Rebecca L. Mitchell, Natalie A. Saund ers and Wesley A. Toland w ere unable to attend. The students w ere congratulated f or their exceptional academic performance. President McPherson called the meeting of the Board of Trustees to order at 10:40 a. m. in the Board Room. Trustees present: Dolores M. Cook, Dorothy Gonzales, Colleen McNamara, Donald W. Nugent (via telephone), John D. Shingleton, Bob Traxler, and Robert E. Weiss. T rustee absent: Joel Ferguson. University officers present: President McPherson, Provost Simon, Secretary Pogel, V ice Presidents Denbow , Greenleaf, Huggett, June, Webb, and Wilkinson, and Executi ve Director Williams. Faculty Liaison present: Daniel Kruger. Student Liaisons pre sent: Chad Smith and Tim Tesmer. Student Liaisons-elect Louis Smith and Nate S mith-Tyge also attended. All actions taken w ere by unanimous vote of the Trustees present, unless otherw ise noted. 1.On a motion by Mr. Shingleton, supported by Mr. Weiss, THE BOARD VOTED to a pprove the proposed agenda w hich w as amended to include resolutions to Co aches Mason and Izzo. 2.On a motion by Mr. Shingleton, supported by Mr. Weiss, THE BOARD VOTED to a pprove the minutes of the February 11, 1998 Board meeting. R:\UA 1\1998\BM4.10.98.98 10620 3.Mr. Weiss presented Board of Trustees resolutions to Hockey Coach Ron Mason a nd men' s Basketball Coach Tom Izzo to acknow ledge the successful season o f each coach, their staff members, and athletes. The resolutions are include d in the file of agenda materials. On a motion by Mr. Weiss, supported by Mr. Shingleton, THE BOARD VOTED to app rove the resolutions to Coach Mason and Coach Izzo. 4.President' s Report A.President McPherson congratulated w omen' s gymnastics Coach Kathie Klages for being selected the NCAA Central Region Coach of the Year. She led t he team to a 23-6 record and placed fourth in the Big Ten. The Presid ent said he is proud of the University' s athletic programs. Mr. Weiss recommended presenting a Board of Trustees resolution to Coach Klages a t the next meeting. B.Jennifer Sykes, a James Madison psychology and social relations junior, w as introd uced by President McPherson as the recipient of one of the 65 national ly-aw arded Truman Scholarships. The honor includes a $30,000 stipe nd to be used for graduate school. C.President McPherson announced that Michigan State has tw o w inners among the 3 16 Goldw ater Scholarships that are aw arded around the country. The students are Daniel Thornhill, a Zoology major in Lyman Briggs School and an Honors College student, and Andrew Mienaltow ski, Jr., an Ho nors College student majoring in Microbiology and Physiology, also in L yman Briggs. Recipients are aw arded a stipend of $7,500 to be used for tuition, books, and other expenses. The President said the importance of Truman and Goldw ater scholarships is recognize d throughout the country, and Michigan State is pleased to have its stu dents receive these honors. D.President McPherson reported that 14 graduate students have received National Sc ience Foundation graduate research fellow ships. Each fellow receives a $15,000 stipend and a cost of education allow ance of $9,500. The President said the aw ards are evidence of the quality of education pro vided at Michigan State. E.President McPherson asked retiring student liaisons to introduce their successors. Chad Smith introduced Nate Smith-Tyge, representative of the Student Assembly of ASMSU, and Tim Tesmer introduced Louis Smith, repres enting COGS. Tim Tesmer read a resolution from Governor Engler declaring April 5-11, 1998 as Gra duate and Professional Student Appreciation Week in Michigan. This i s the second consecutive year Michigan State has received this honor. R:\UA 1\1998\BM4.10.98.98450recpt 10621 5.Guiding Principles Report Vice President Greenleaf reported on TIMSS (The Third International Math and Scienc e Study) program. He said the project is an example of tw o principles, gener ate new know ledge and scholarship principle, and also the outreach principle o f problem solving. TIMSS is an international study that has been going on for a numbers of years in about 40 countries. The American headquarters is at Michigan State under the leadership of Professor Bill Schmidt of the College of Education w ith a team of other MSU people. NSF and the U.S. Department of Education are the primary funding sources of the program in the U.S. Mic higan State has received about $10 million thus far for its support. The proje ct is a survey of achievement and a detailed review of math and science curric ulum materials. It involves w orking w ith educators on new curriculum develo pments. 6.There w ere no requests to address the Board of Trustees on issues germane to th e agenda. 7.Personnel Actions Provost Simon reported there w ere no personnel actions requiring Board of Trustees a pproval. Information Reports of Academic Personnel Actions of February 27, 1998 and March 30, 1998 w ere distributed w ith the Board Agenda and have been included w i th the agenda materials in the Office of the Secretary of the Board of Trustees . 8.Gift, Grant and Contract Report Vice President Huggett presented the Gift, Grant and Contract Report for the period o f January 27, 1998 through March 25, 1998. The report is a compilation of 267 Gifts, Grants and Contracts, 211 Consignment/Non-Cash Gifts, and no C onsignment/Non-Cash Loans w ith a total value of $18,084,328.54. The Gift and Grant report and the report of breakdow n by source of the funding are in cluded w ith the Board Agenda in the Office of the Secretary of the Board of T rustees. Dr. Huggett noted an entry on page tw o of the report w hich w as a $1.3 million item from NSF to Professor William Schmidt for the TIMSS study, the program rep orted on by Vice President Greenleaf. On a motion by Mr. Traxler, supported by Mr. Shingleton, THE BOARD VOTED to ap prove the Gift, Grant and Contract Report. 9.The Trustee Finance Committee report and recommendations w ere presented by T rustee Gonzales. R:\UA 1\1998\BM4.10.98.98 10622 A.Bids and Contract Aw ards 1)It w as recommended to aw ard a contract in the amount of $201,000 to Moore Tro sper Construction Company, of Holt, Michigan, and that a budg et in the amount of $285,000 be established for the project enti tled: Manly Miles Building – Front Entrance Barrier Free Improv ements. 2)It w as recommended to aw ard a contract in the amount of $149,700 to Moore Tro sper Construction Company, of Holt, Michigan, and that a budg et in the amount of $200,000 be established for the project enti tled: Wharton Center – Enclose Connector to Parking Ramp. 3)It w as recommended to aw ard a contract in the amount of $241,995 to Cadw ell B rothers Construction Co., of Lansing, Michigan; a contract in th e amount of $89,990 be aw arded to Marc Dutton Irrigation, Inc ., of Waterford, Michigan; and that a budget in the amount of $ 850,000 be established for the project entitled: South Campus Tree Plantings 1998. 4)It w as recommended to aw ard a contract in the amount of $1,635,000 to Sandbor n Construction, Inc., of Portland, Michigan, and that a budget in the amount of $3,450,000 be established for the project entitl ed: Campus – Fiber Optic System Phase V. 5)It w as recommended to aw ard a contract in the amount of $1,458,271 to F. D. Ha yes Electric Company, of Lansing, Michigan, and that a budget i n the amount of $2,330,000 be established for the project entit led: Holden, Hubbard, Mason/Abbot, Ow en, and Van Hoosen H alls – Student Data Services. 6)It w as recommended to aw ard a contract in the amount of $1,345,000 to Moore T rosper Construction Company, of Holt, Michigan, and that a bu dget in the amount of $1,969,000 be established for the projec t entitled: Eustace Hall – Addition and Rehabilitation. 7)It w as recommended to aw ard a contract in the amount of $121,000 to Superior E lectric of Lansing, of Lansing, Michigan, and that a budget in th e amount of $195,000 be established for the project entitled: L ot 91 (Northeast of Clinical Center) Reconstruction, Phase II. 8)It w as recommended to aw ard a contract in the amount of $162,850 to Western Waterproofing Company, of Livonia, Michigan, and that a budge t in the amount of $210,000 be established for the project entit led: Parking Ramp No. 1 – Restoration 1998. On a motion by Ms. Gonzales, supported by Mr. Traxler, THE BOARD VOTED to appr R:\UA 1\1998\BM4.10.98.98450recpt 10623 ove the recommendations. B.Establishment of Funds Functioning as Endow ment 1)It w as recommended to establish the Campus Life Enrichment Endow ment as a fun d functioning as endow ment. 2)It w as recommended to establish the Carl J. Sellner Scholarship as a fund functioni ng as endow ment. 3)It w as recommended to establish the CMP Fund as a fund functioning as endow me nt. On a motion by Ms. Gonzales, supported by Mr. Traxler, THE BOARD VOTED to appr ove the recommendations. C.It w as recommended to authorize the Vice President for Finance and Operati ons and Treasurer or Associate Vice President for Business and Finance to select a bond underw riter and a bond trustee for a proposed issue of general revenue bonds to refinance some or all outstanding bonds of the issued $83,270,000 General Revenue Bonds, Series 1992A, to pl an and prepare for the structuring and documentation of the proposed r efinancing bond issue, and to cause to be prepared and circulated a pre liminary offering statement for the proposed refinancing bond issue. On a motion by Ms. Gonzales, supported by Mr. Traxler, THE BOARD VOTED to appr ove the recommendation. D.It w as recommended to adopt a spending policy w herein the University may spend up to 5.25% of the average market value of the endow ment as calcula ted for the tw elve quarters of the three calendar years prior to the begi nning of the fiscal year and that this spending policy be review ed annu ally at the February meeting of the Trustee Finance Committee. On a motion by Ms. Gonzales, supported by Mr. Traxler, THE BOARD VOTED to appr ove the recommendation. E.It w as recommended to adopt the basic residence halls room and board rate of $2, 086 per semester effective fall semester 1998 and the basic University apartments rates of $420 per month for a remodeled, one-bedroom a partment and $465 per month for a remodeled, tw o-bedroom apartme nt effective August 1, 1998. On a motion by Ms. Gonzales, supported by Mr. Shingleton, THE BOARD VOTED to approve the recommendation. R:\UA 1\1998\BM4.10.98.98 10624 President McPherson noted the importance of the complimentary academic support r ole of residence halls staff. He said it is an integral part of the student ' s full experience at the University. F.It w as recommended to invest $3.6 million w ith the Common Fund Small Cap Gro w th Fund, in accordance w ith the University' s investment guidelines. On a motion by Ms. Gonzales, supported by Ms. Cook, THE BOARD VOTED to appro ve the recommendation. 10. President McPherson presented the report of the Trustee Policy Committee of t he Whole. A.There w ere no action items to be considered by the Board of Trustees. B.At the earlier committee meeting, Dr. Ralph W. Bonner, Director of Affirmati ve Action Compliance and Monitoring, presented the annual Affirmativ e Action Report. The report is included w ith the Board agenda materia ls. Dr. Bonner gave special recognition to University units he feels have done " an excelle nt job in diversifying their units and utilizing all of the necessary skills a t their hands." He named the Emmons Hall student group African Am erican Police Alliance, the College of Veterinary Medicine, the MSU Pur chasing Department, the Departments of English and Marketing and Su pply Chain Management, and MSU Police. C.Dr. Simon reported that each year a project is highlighted w hich reflects the principle of diversity w ithin community and active learning. Dr. June introduced Ms. Jeanne Gazel and Dr. Richard Thomas, Coordinators of The Multi-Racial Unity Project (MRULE), a new program seeking w ays t o promote unity, greater interaction, and cooperation among racial grou ps. Students commented about their experiences follow ing a video pr esentation of the program. 11.Chairperson' s Report and Trustees' Comments A.Chairperson' s Report Chairperson Shingleton identified the major accomplishments of the past year being t he tuition initiative, international programs, building programs, the serio us student initiative, and successful athletic programs w hich contribute to the spirit of the University. He said how pleased he is that Michig an State has Truman and Goldw ater scholarship w inners. B.Trustees' Comments R:\UA 1\1998\BM4.10.98.98450recpt 10625 1)Trustee Cook complimented Vice President Denbow , U niversity Relations, and its division of University Publications for the new " Facts in Brief." She said it is a reference tool that h as " w hat everyone needs to know about MSU." Ms. Cook said she w as impressed w ith the MRULE proje ct and enthusiastically supports the spirit of togetherness at the University. Ms. Cook commented that she is looking forw ard to part icipating in the dedication of DCL at MSU. In addition to the accomplishments mentioned by Chairperson Shingleton, Trustee Co ok remarked that it w as heartening to have the employees of th e University come together on such important issues as the revi sion of health benefits for support staff and the post-tenure revi ew document. She said it speaks w ell for support staff, facult y, administration, and the Board of Trustees. 2)Trustee Weiss thanked his colleagues for the privilege of presenting Board of Trustees resolutions to Coaches Mason a nd Izzo. He also said the DCL at MSU dedication w ill be a mon umental day for the University and the State of Michigan. He c ommended President McPherson and DCL and MSU board mem bers for their persistence in this accomplishment. Mr. Weiss asked that the Board go on record to explore w ays that NCAA rules might be changed to provide more equity to the parents of student ath letes w hen they travel to tournaments. President McPherson r esponded that conversations have begun and he w ill report bac k to the Trustees. Trustee Weiss commended faculty for w orking w ith the administration and others to put together a post-tenure review p rocess. He recognized the efforts of Provost Simon, Professor Norm Abeles, and former Faculty Liaison Maureen McDonough. 3)Trustee Nugent congratulated graduating seniors. He said it is exciting to hear abo ut the scholarship w inners and Trustee GPA recipients. He sai d the faculty and staff team w ork has improved the excellence and viability of the University. Mr. Nugent congratulated President McPherson for his n R:\UA 1\1998\BM4.10.98.98 10626 omination to the Dow Jones Board. 12.The follow ing individual addressed the Board of Trustees on an issue not germane to the agenda. A.Pamela Romano Dilley, an arts educator in northern Michigan, encouraged Board m embers to continue to support MSU' s graduate art education program. She spoke of the importance of an art education curriculum for childre n and suggested it could be one of the possible solutions to violence in the schools. Ms. Dilley commented about the student art projects th at she displayed. She quoted from " The Everyday Work of Art," by Er ic Booth and presented his book to the Board. 13.President McPherson reported that there had not been a request for an Executive Session. 14.On a motion by Mr. Traxler, supported by Ms. Gonzales, the Board voted to adjou rn at 11:38 a.m. Peter McPherson, President Nancy H. Pogel, Secretary R:\UA 1\1998\BM4.10.98.98450recpt 10627 Index Page(s) Chairperson' s Report/Trustees' Comments ............................................. 10626-27 Executive Session (None) .......................................................................... 10627 Finance Committee .............................................................................. 10622-25 Bids and Contract Aw ards ............................................................... 10623-24 Eustace Hall - Renovation ................................................................. 10623 Fiber Optic System Phase V - Campus ............................................... 10623 Lot 91 (Northeast of Clinical Center) Reconstruction, Phase II ............... 10623 Manly Miles Building - Front Entrance Barrier Free Improvements ........... 10623 Parking Ramp No. 1 - Restoration 1998 ............................................. 10624 South Campus Tree Plantings 1998 ................................................... 10623 Student Data Services - Holden, Hubbard, Mason/Abbot, Ow en, and Van Hoosen Halls - ................................................................... 10623 Wharton Center - Enclose Connector to Parking Ramp .......................... 10623 Bond Refinancing ................................................................................. 10624 Endow ment Spending Policy ................................................................. 10624 Funds Functioning as Endow ment .......................................................... 10624 Campus Life Enrichment ................................................................... 10624 CMP Fund ...................................................................................... 10624 Sellner, Carl J. - Scholarship ............................................................. 10624 Investment, Common Fund Small Cap Grow th Fund ................................. 10625 Residence Halls and University Apartments Rates 1998-99 ....................... 10625 Gift, Grant and Contract Report ................................................................. 10622 Guiding Principles Report ........................................................................... 10622 Personnel Actions (None) .......................................................................... 10622 Information Reports .............................................................................. 10622 Policy Committee of the Whole .................................................................. 10625 Reports .............................................................................................. 10625 Affirmative Action and Diversity Annual Report ................................... 10625 Multi-Racial Unity Project (MRULE) .................................................... 10625 President' s Report .................................................................................... 10621 Public Participation .........................................................................10622,10627 Germane to Agenda (None) ................................................................... 10622 Other Issues ........................................................................................ 10627 Resolutions, Board of Trustees .............................................................. 10620-21 Coaches Izzo and Mason ................................................................. 10620-21 Trustee GPA Aw ards ................................................................................ 10620 R:\UA 1\1998\BM4.10.98.98 10628