MINUTES OF THE MEETING OF THE MICHIGAN STATE UNIVERSITY BOARD OF TRUSTEES February 22,2008 President Simon called the meeting of the Board of Trustees to order at 9:35 a.m. in the Board Room. Trustees present: Joel Ferguson, Melanie Foster, Colleen McNamara, Donald Nugent, Faylene Owen, George Perles (via telephone), and Scott Romney. Trustees absent: Dorothy Gonzales University officers present: President Simon, Provost Wilcox, Vice President Poston, Secretary Beekman, Vice President and General Counsel Noto, Vice Presidents Denbow, Gray, Hudzik, and Webster, Senior Advisor and Director Granberry Russell, and Senior Associate Vice President Maybank. Faculty liaisons present: Jim Potchen and John Powell. Student liaisons present: Eric Hinojosa, Michael Leahy, Jarrod Morrice, and Yanisleidy Reina. All actions taken were by unanimous vote of the Trustees present, unless otherwise noted. 1. 2. On a motion by Trustee Foster, supported by Trustee McNamara, the BOARD VOTED to approve the agenda. On a motion by Trustee Romney, supported by Trustee Owen, the BOARD VOTED to approve the minutes of January 18,2008. 3. President's Report A. State of the University Address President Simon stated that the 2008 State of the University Address and annual Awards Convocation was held on February 12. The awards program featured recognition of the recipients of the following awards: Distinguished Faculty, Teacher-Scholar, Outreach Scholarship Community Partnership, MSU Alumni Club of Mid-Michigan Quality in Undergraduate Teaching, Distinguished Academic Staff, and Excellence in Teaching Citations. She congratulated all those honored for their outstanding contributions to Team MSU and noted the State of the University address is available on the MSU web site. 6 . Chuck Webb named 2gth president of Spring Arbor University President Simon said that following a nation-wide search, the Spring Arbor University Board of Trustees announced the selection of Dr. Charles H. Webb as the University's 29th president. The announcement followed a special meeting of Spring Arbor's Board on Saturday, February 16. Spring Arbor's next president is a man of integrity and a leader with many talents. Chuck is a team builder and a consensus builder; he is smart and he is wise. His record at Michigan State University has been outstanding, advancing private giving and alumni relations with nationally renowned and honored programs. Chuck will leave MSU with a very successful advancement program that is poised for even greater success in the future. Because of Chuck Webb, the future is brighter at both MSU and Spring Arbor. C. Founding Dean of Osteopathic Medicine Dies President Simon stated that the founding dean of MSU's College of Osteopathic Medicine, Myron Magen, died at his home in East Lansing on February 13. He was 81. She noted that MSU and the osteopathic profession have lost a true visionary in Mike Magen. As the founding dean of the College of Osteopathic Medicine, Mike provided the strong leadership necessary to build a world-class medical education program. Throughout his life he was a tireless advocate not only for osteopathic medicine, but for all of health care. Trustee Owen presented a Resolution honoring Mike Magen. (Appendix A) Trustee Owen moved to approve the recommendation, with support by Trustee McNamara. THE BOARD VOTED to approve the recommendation. D. Alfred P. Sloan Research Fellow President Simon said that Professor Alexandra Gade, Department of Physics and Astronomy, has been selected as an Alfred P. Sloan Research Fellow. This is an extraordinarily competitive award, involving nominations of the very best scientists from the U.S. and Canada. Professor Gade's work brings distinction to MSU. E. MSU's Nettleman Earns National Honor President Simon noted that Dr. Mary Nettleman, Chairperson of the Department of Medicine, has been elected to mastership in the American College of Physicians, an internal medicine organization comprised of members, fellows, and masters. The honor makes Dr. Nettleman only the loth master in the State of Michigan. F. Two MSU Faculty Members Receive High French Honors President Simon stated that Steven Pueppke, Assistant Vice President for Research and Graduate Studies and Director of the Michigan Agricultural Experiment Station and the MSU Office of Biobased Technologies, and James Bingen, Professor of Community, Agriculture, Recreation, and Resource Studies, were presented with medals of honor by representatives of the French government at a ceremony on February 1. Dr. Pueppke was honored for his efforts over the past decade to build institutional relationships between U.S. and French university research facilities. Dr. Bingen was honored for his contributions to helping young Americans understand French farming practices that enhance the viability of small family farms, both locally and globally. G. 2008 Churchill Scholar President Simon announced that Kate Leitch has been selected as a 2008 Churchill Scholar, the ~ 6 ' ~ churchill Scholar from MSU. Ms. Leitch is a senior majoring in zoology in the College of Natural Science and a member of the Honors College. She will study Physiology, Development and Neuroscience at the University of Cambridge. H. MSU Takes Home Big Ten Debate Title President Simon noted that The Big Ten Debate Championships were held the last week of January at Northwestern University. MSU entered four teams, all of which advanced to the elimination rounds. Three of these teams made it to the "final four1'-capping off a dominant performance by the Spartans. There was no Public Participation on Issues Germane to the Agenda. Personnel Actions Provost Wilcox presented the following appointment: 4. 5. Board of Trustees Minutes 02.22.08 Delfosse, Ernest S., AN-Professor, $189,600, with Tenure, effective May 1, 2008. Trustee McNamara moved to approve the recommendation, with support by Trustee Foster. Department of Entomology, Provost Wilcox said that Dr. Delfosse has a Ph.D. in Entomology from the University of Florida. He served as a research entomologist in Florida, a research scientist and leader in Australia, and director of the National Biological Control Institute. He is currently the National Program Leader for Weed Science for the USDA-ARS in Maryland. THE BOARD VOTED to approve the appointment. 6. Gifts, Grants, and Contracts Vice President Gray presented the Gift, Grant, and Contract report for the period November 22, 2007 through February I I , 2008. The total value for this period is $48,916,326.84. Trustee Nugent moved to approve the recommendation, with support by Trustee Ferguson. THE BOARD VOTED to approve the recommendation. Vice President Gray introduced Dr. David Skole, Professor of Global Change Science in the Department of Forestry. Dr. Skole's research is international environmental research using geo-spatial focused on numerical models, remote sensing, and geographic information systems. Dr. Skole has been working on carbon cycle science for more than 25 years. His research presentation focused on carbon sequestration for climate mitigation and rural poverty alleviation. (Appendix B) 7. Finance Committee Trustee Nugent presented the Trustee Finance Committee Report and recommendations. A. Bank Account Delegation It was recommended that the Board of Trustees adopt the following resolution: Resolved, that the Vice President for Finance and Operations and Treasurer, for Finance and Operations, and the Assistant Vice President, Chief Financial Officer and Controller, or any one of them, are authorized and the Assistant Vice President Board of Trustees Minutes 02.22.08 4 empowered to establish and maintain bank accounts as necessary for the orderly conduct of the business of Michigan State University and to designate signatories for the accounts, to act by actual and facsimile signatures; and That the Vice President for Finance and Operations and Treasurer may delegate the authority hereby granted; and That the authority and power conferred by this action shall vest in any successor positions to the Vice President for Finance and Operations and Treasurer, the Assistant Vice President for Finance and Operations, and the Assistant Vice President, Chief Financial Officer and Controller, or individuals appointed to these positions; and That this action supersedes all prior Board actions relating to authority concerning bank accounts and account signatories. Trustee Nugent moved to approve the recommendation, with support from Trustee Foster. THE BOARD VOTED to approve the recommendation. B. Increased Financing of MSU Programs of Higher Education in Dubai, United Arab Emirates It was recommended that the Board adopt the following resolution: Be it Resolved that the Board of Trustees September 12, 2007 resolution concerning Financing of MSU Programs of Higher Education in Dubai, United Arab Emirates "Original Resolution'' is modified to increase the maximum authorized amount of the Financing (as defined in the Original Resolution) from Three Million dollars ($3,000,000) to Five Million dollars ($5,000,000), and That all other resolutions and authorizations as set forth in the Original Resolution are confirmed, ratified, and in full force and effect. Trustee Nugent moved to approve the recommendation, with support from Trustee Ferguson. Vice President Poston said that this resolution was necessary due to the development of activities in Dubai at a rate that has exceeded initial projections. Given the rapid development, a number of expenditures must occur earlier in the process than was initially anticipated. This change remains consistent with the business plan. Vice President Hudzik said that MSU is very active in Dubai. Critical support staff are now on site and are preparing for the recruitment and admissions process. There have been approximately 1,100 serious inquiries from prospective students, and there are 90 applications on file for undergraduate students and 65 applications for graduate students. THE BOARD VOTED to approve the recommendation. C. Authorization to Plan (footprint change) Forest Akers Golf Course- East Driving Range Enclosure It was recommended to the Board of Trustees that it authorize the administration to plan for modifications that will result in a material change to the campus footprint for the project entitled Forest Akers Golf Course-East Driving Range Enclosure. Trustee Nugent moved to approve the recommendation, with support from Trustee Owen. Vennie Gore, Assistant Vice President of Housing and Food Services, said that the footprint at the East Akers Golf Course would be extended for the covered driving range. The project will be supported by existing Housing and Food Service funds and will generate revenue sufficient to cover the costs of construction and operations within eight years. THE BOARD VOTED to approve the recommendation. D. Project Approval-Authorization Building-Window Replacement to Proceed-Natural Science It was recommended to the Board of Trustees that it authorize the administration to proceed with the project entitled Natural Science Building-Window Replacement and to approve a budget of $1,200,000. Trustee Nugent moved to approve the recommendation, with support from Trustee Foster. THE BOARD VOTED to approve the recommendation. Board of Trustees Minutes 02.22.08 E. Project Approval-Authorization Apartments-Zone One Demolition-Phase II to Proceed-Spartan Village It was recommended to the Board of Trustees that it authorize the administration to proceed with the project entitled Spartan Village II and to approve a Apartments-Zone One Demolition-Phase budget of $5,200,000. Trustee Nugent moved to approve the recommendation, with support from Trustee McNamara. Mr. Gore stated that 34 buildings would be removed and the water distribution system will be repaired and replaced. The strategic planning process will include the Spartan Village property and future uses. THE BOARD VOTED to approve the recommendation. F. Project Approval-Authorization lmprovements to Proceed-Holden Hall-Space It was recommended to the Board of Trustees that it authorize the administration to proceed with the project entitled Holden Hall- Space lmprovements and to approve a budget of $9,450,000. Trustee Nugent moved to approve the recommendation, with support from Trustee Owen. Mr. Gore stated that updating of student rooms will include new lighting, paint, carpet, blinds, and loft-able furniture. Public areas will receive updates, including the creation of a high tech lounge for students to gather around technology, a recycling center, and a community kitchen for student use. THE BOARD VOTED to approve the recommendation. G. Bid and Contract Award (budget adjustment) Mary Mayo Hall Renovations It was recommended to the Board of Trustees that a contract in the amount of $8,756,000 be awarded to Kares Construction Company, Inc. and the budget be increased from $12,500,000 to $12,750,000, for the project entitled Mary Mayo Hall Renovations. Trustee Nugent moved to approve the recommendation, with support from Trustee Romney. Mr. Gore stated that this is a restoration project that will include mechanical and electrical upgrades, life safety upgrades, carpet, and furnishings. The building will be closed at the end of spring semester for construction and is scheduled to be completed in August 2009. THE BOARD VOTED to approve the recommendation. H. Bid and Contract Award RoadIMiddlevale Road Reconstruction-Phase (budget IV reduction) Crescent It was recommended to the Board of Trustees that a contract in the amount of $856,400 be awarded to E.T. MacKenzie Company and the budget be reduced from $2,300,000 to $1,500,000, for the project entitled Crescent RoadIMiddlevale Road Reconstruction- Phase IV. Trustee Nugent moved to approve the recommendation, with support from Trustee Romney. THE BOARD VOTED to approve the recommendation. I. Bid and Contract Award-West Circle Housing Complex-Steam, Electrical, and Water Distribution Enhancements-Phase I It was recommended to the Board of Trustees that a contract in the amount of $2,800,000 be awarded to Sandborn Construction, Inc., for the project entitled West Circle Housing Complex-Steam, Electrical, and Water Distribution Enhancements-Phase I. Trustee Nugent moved to approve the recommendation, with support from Trustee Foster. THE BOARD VOTED to approve the recommendation. J. Bid and Contract Award-Spartan Stadium-East Upper Stand Maintenance It was recommended to the Board of Trustees that a contract in the amount of $1,062,998 be awarded to the E & L Construction Group for the project entitled Spartan Stadium-East Upper Stand Maintenance. Trustee Nugent moved to approve the recommendation, with support from Trustee Owen. Board of Trustees Minutes 02.22.08 8 THE BOARD VOTED to approve the recommendation. 8. Policy Committee Trustee McNamara presented the Trustee Policy Committee Report and recommendations. A. Responsible Contractor PolicyIProject Labor Agreements It was recommended to the Board of Trustees that it adopt a Responsible Contactor Policy and that it approve amendments to Board Policy 02-06-01, "Construction and other Real Property Improvements: Project Planning and Approval" and that, in 24 months, the Policy Committee shall review the University's experience with project labor agreements and with the Responsible Contractor Policy. (Appendix C) Trustee McNamara moved to approve the recommendation, with support from Trustee Nugent. Vice President Poston stated that this policy was the result of analysis over an extended period of time regarding the potential use of project labor agreements. Vice President Poston stated that there are certain circumstances when the use of a project labor agreement would benefit the University. President Simon commended Trustee McNamara for her leadership on the issue. She stated that the Board effectively balanced institutional interests with MSU's social responsibility. Trustee McNamara thanked President Simon for being open to the policy and the process involved. She also thanked Vice President Poston and General Counsel Noto for their many hours of work in addition to the many other campus and community members involved in the process. Trustee Nugent thanked Trustee McNamara for her hard work on this important issue. Trustee Owen commended Trustee McNamara on her efforts. THE BOARD VOTED to approve the recommendation. B. Split of the Marketing and Supply Chain Management Department It was recommended to the Board of Trustees that the Marketing and Supply Chain Management Department be split into two separate departments: (1) the Marketing Department and (2) the Supply Chain Management Department. Trustee McNamara moved to approve the recommendation, with support from Trustee Nugent. Provost Wilcox said that the activities in the Marketing and Supply Chain Management Departments have evolved over time into two separate specialties and this is a natural recognition of that evolution. THE BOARD VOTED to approve the recommendation. C. Notice of Intent to Negotiate a Contract with Biochemicals, LLC, a Company in which a Faculty Interest Exists lntermediary intent to negotiate contracts with Pursuant to State law, Trustee McNamara gave public notice of the University's lntermediary Biochemicals, LLC, a Michigan limited liability company based in Okemos. Dr. J. Gregory Zeikus, a Professor in the Department of Biochemistry and Molecular Biology, Dr. Robert M. Worden, a Professor in the Department of Chemical Engineering & Materials Science, and Dr. Claire Vieille, an Associate Professor in the Department of Biochemistry and Molecular Biology and the Center for Microbial Ecology, each own, or have options to buy, an equity interest of more than 1 percent of the company. D. Approval of Contract Terms: NanoBrick, LLC It was recommended to the Board of Trustees that it approve the execution of a license agreement with NanoBrick, LLC, consistent with earlier public notice given at a Board meeting and with the "License Agreement Term Sheet" presented to the Board. (Appendix D) Trustee McNamara moved to approve the recommendation, with support from Trustee Nugent. THE BOARD VOTED to approve the recommendation. 9. Trustees Comments Trustee Ferguson thanked Trustee McNamara for her outstanding work on behalf of the Board. Board of Trustees Minutes 02.22.08 10 Trustee Romney congratulated Trustee McNamara on a job well done. Trustee Owen said the Faculty Liaison group had covered many issues at its meeting, including recruitment and retention of faculty, retirement, health care, tuition, and environmental stewardship. She asked Professor John Powell, Faculty Liaison member, to speak about the meeting. Professor Powell said that an important part of what makes MSU great is its faculty. In order to be able to pursue a global mission on a world stage, MSU has to be able to recruit and retain high quality faculty. Many times high quality faculty focus on research, but it is also important for them to focus on teaching and the undergraduate and graduate programs at MSU. Trustee Owen congratulated Vice President Webb on his appointment as President of Spring Arbor University and wished him well in his new position. Trustee Nugent thanked Vice President Webb for his many years of service to MSU. Trustee Perles wished Vice President Webb the best of luck as President of Spring Arbor University. Trustee Foster said that she also wished Vice President Webb well as he begins his presidency. She noted that the Student Liaison group discussed a possible lecture series for MSU professors, student safe rx and making the MSU campus as safe as it can be, and the 40 anniversary of the Council of Graduate Students (COGS). She asked student liaison Jarrod Morrice to discuss upcoming COGS events. Mr. Morrice announced that celebrations would be held on March 14-15 for the 4oth anniversary of COGS. Events include the hosting of the Midwest Conference for the National Association of Graduate Professional Students, a bowling night, and a banquet. 10. Public Participation on Items not Germane to the Agenda A. Graduate Employees Union Contract Negotiations Sandra Schmidt, President of the Graduate Employees Union, said teaching assistants are of great value to MSU. She stated that one-third of MSU classes are taught by teaching assistants. Teaching assistants typically have master's degrees and are established in their field. Ms. Schmidt stated that teaching Board of Trustees Minutes 02.22.08 11 assistants, in preparing to be professors, have a commitment to teaching and learning to teach well. Ms. Schmidt said that one of the items related to the contract negotiations is professional development opportunities. The teaching assistants are asking for better and more discipline- specific professional development that benefits the individual needs of the departments. Ms. Schmidt stated that the other concern for teaching assistants is compensation. She said that the teaching assistants are asking for a raise equal to the rate of inflation. She asked the Board to support a solid, quality, and timely contract for the teaching assistants. B. Graduate Employees Union Contract Negotiations Benjamin Dettmar, international graduate student and teaching assistant, said that the issue of compensation greatly affects International students have specific fees international students. such as service fees upon arrival, visa fees, etc. It can also be difficult for international students to secure loans; oftentimes the interest rates are very high. Mr. Dettmar stated that the small increase being sought by the teaching assistants is critical to the international student population. He urged the Board to support the teaching assistants. C. Graduate Employees Union Contract Negotiations Jarrod Morrice, president of COGS, said that graduate students perform research not only to increase the knowledge base of their field, but to apply that information while teaching. Mr. Morrice noted that teaching assistants have varied roles, with some teaching recitations and others responsible for undergraduate labs. He said he supports an increase for teaching assistants and encouraged the Board to support it. D. Campus Civility Ben Morlock, Chairman of the MSU College Republicans, said he wanted to speak to the misconception that the MSU College Republicans and the Young Americans for Freedom are associated with each other. He stated that the MSU College Republicans have approximately 600 MSU student members, and the purpose and intent of the organization is to advance Republican principles and serve as a network for MSU's Republican students. Mr. Morlock stated that the MSU College Republicans have not violated the MSU Anti-Discrimination Policy. He indicated that the Board of Trustees Minutes 02.22.08 12 MSU administration has made no attempts to contact him regarding the allegations made against the group. Mr. Morlock said that some individuals on campus would like to chill free speech on campus and have asked the Board to define what free speech is and what hate speech is. He stated that all speech, whether it is offensive or hateful, is protected under the First Amendment of the United States Constitution. Mr. Morlock asked the Board to resist demands from organizations on campus that ask to suppress student rights. 11. On a motion by Trustee Owen and supported by Trustee Romney, THE BOARD VOTED to adjourn at 11:40 a.m. Respectfully submitted, William R. Beekman Secretary of the Board of Trustees Appendix A an- * J J 3 d ! J - ?- --- - , Ld - -Ad 5 d d L Carbon markets can reduce poverty A billion people live in extreme poverty surviving on less than $1 per day as subsistence farmers Carbon is now a Cbmmodity that can'be grown on farms '