MINUTES OF SHE MEETING OP THE FINANCE. COMMITTEE November 20, 1958 The Finance Committee convened at Kellogg Center at 7-00 a.m. for breakfast. Following breakfast, the meeting took place.. The following members were present: Messrs. Brody, Harlan, Rouse, Smith, Stevens, Vanderploeg; Dr. Bartlett, President Hannah and Secretary McDonel Absent: Treasurer May 1. Scudder, Stevens and Clark and Earl Cress recommend with approximately $50,000 of the $150,000 Investment presently remaining available for such purposes in the Pension and Retirement Fund for purchase recommenda- of 750 shares Republic Steel at approximately $63 per share to yield k.kfy Itions On motion of Mr. Brody, seconded by Mr. Rouse, it was voted to approve Item 1. 2. Recommendation from Earl Cress that the Board authorize a borrowing from the National Bank of Approval of Detroit of $3^^50,000 at an interest rate of 3-3A$ to be repaid within 5 years. The security two resolu- pledged to pay this loan will be the net income from ^4-00 apartments of the 800 units in Spartan tions relative Village plus a second lien on the 19^-8 dormitory "borrowing of reduced to $2,500,000 and which will be paid off within 7 years, plus any excess income from the kOO apartment units in Spartan Village which are pledged to cover the apartment loan. to borrowing funds for November and The purpose of this loan is to reduce the construction loan now outstanding to the National Bank of Detroit from $if,500,000 to $2,225,000 or a payment on this note of $2,225,000 plus a reimbursement to Michigan State University for advances made to cover construction costs of this project in the amount of $1,^00,000. When the government loan is completed covering the 400 units of this project in the amount of $3j750;000 that money will be used to retire the balance of the construction loan that will then be owing to the National Bank of Detroit in the amount of $2,250,000, and the balance of $1,500,000 will be used to repay the University for the balance of the construction costs advanced by the University during the construction period. On motion of Dr. Smith, seconded by Mr. Stevens, it was voted to approve the following resolution of the Board authorizing borrowing funds from the National Bank of Detroit and executing term loan agreement: December payrolls WHEREAS, The State Board of Agriculture, in the exercise of its constitutional duties, has Approval of constructed on lands owned by it in East Lansing, Michigan known as "Spartan Village'T, 72 apartment resolution buildings, in which are located 39& one-bedroom apartment units and kok- two-bedroom apartment units,authorizing and has furnished and equipped the same, to provide housing facilities for students attending Michigan State University; and borrowing funds from National Bank WHEREAS, this Board has advanced from its own and borrowed funds approximately $7,^-00,000.00 of Detroit and on a temporary basis, to pay such costs of constructing, furnishing and equipping of such apartment Executing Term Loan units j and Agreement WHEREAS, the United States of America, through the Housing and Home Finance Agency, has agreed to loan to the Board the sum of $3,750,000.00, to be used to reimburse this Board, in part, for the sums expended by it for the cost of constructing the apartment buildings; which loan is to be secured by a pledge of the net income derived from the operation and renting of the apartment units located in 36 of the apartment buildings above described, which apartment buildings are numbered as follows: l6l2 through 1632, inclusive; 1523 through 1525, inclusive; 1550 and 1551; 1565 through 1 5 7^ inclusive, and contain 192 one-bedroom apartment units and 208 two-bedroom apartment units; and WHEREAS, Ann Arbor Trust Company, of Ann Arbor, Michigan, hereinafter sometimes referred to as "Agent", has submitted for the consideration of this Board a form of Term Loan Agreement, under the terms of which this Board may borrow from National Bank of Detroit, hereinafter sometimes referred to as "Bank", the sum of $3,650,000.00, which sum is the amount required, when taken together with funds to be borrowed from the United States of America, to reimburse the Board for the sums advanced by it to pay the costs of constructing, furnishing and equipping the 72 apartment buildings above referred to; which sum will be secured by a pledge of net income derived from the operation of and renting of the apartment units located in 36 of the apartment buildings above referred to, which buildings are numbered as follows: 1429 through IV36, inclusive; lW-0 through 1^52, inclusive; and 1535 through 15^9, inclusive, and contain 20½ one-bedroom apartment units and 196 two-bedroom apartment units. NOW, THEREFORE, BE IT RESOLVED BY THE STATE BOARD OF AGRICULTURE that a Term Loan Agreement, substantially in the form presented to this Board, be entered into with National Bank of Detroit and Ann Arbor Trust Company, as Agent, which agreement shall be dated as of November 1, 1958, and pursuant to which the sum of $3,650,000 may be borrowed from the Bank under the following terms: 1.- Amount of Loan 2. Interest Rate: 3» Terra: 3-3A per annum All principal and accrued interest to be paid on or before November 1, 1963. $ 3, 650,000.00 Resolution authorizing borrowing funds from Nat« Bank of Det. Finance Committee Meeting Items, continued: November.20, 1958 2. Resolution authorizing borrowing of funds from Rational Bank of Detroit, etc*, continued: k. Security: To secure the payment of principal and interest under the terms of the Term Loan Agreement, the Agent shall have: (a) (b) (c) A first lien upon the Student Apartments Net Income derived from the operation of the apartment units located in the apartment buildings numbered as follows: lU29through 1^3^ inclusive; ikhO through 1*1-52, inclusive; and 1535 through 1549, inclusive; A second lien on Net Income pledged to secure Michigan State College of Agriculture and Applied Science Dormitory Revenue Bonds, 19^-8 Series, issued pursuant to a Trust Agreement made and entered Into by and between this Board and Ann Arbor Trust Company, as Trustee, dated as of December 15, 19^-8, The covenants and agrees to pay to the Bank such excess funds as shall be earned through the operation of the apartment buildings, the net income from which will be pledged under the terms of a Loan Agreement to be entered into between this Board and the United States of America, which shall not be required for the purposes of paying debt service, creating reserves and other specified purposes designated in said agreement. BE IT FURTHER RESOLVED that any two of the following officers of Michigan State University, to-wit: John A* Hannah, its President; Karl H. McDonel, its Secretary; and Philip J. May, its Vice President and Treasurer, be and they are hereby authorized, empowered and directed, in the name of The State Board of Agriculture and as its corporate act and deed, to gxecute and enter into the aforementioned Term Loan Agreement between The State Board of Agriculture, National Bank of Detroit, and Ann Arbor Trust Company, as Agent; and they are further authorized, empowered and directed to execute the promissory note of the Board as evidence of said loan. BE IT FURTHER RESOLVED that any two of said officers be and they are hereby authorized, empowered and directed, in the name of The State Board of Agriculture and as its corporate act and deed, to perform all acts and deeds and execute all instruments and documents necessary, expedient and proper in connection with the borrowing of said sum of Three Million, Six Hundred Fifty Thousand Dollars, in accordance with the terms and conditions of said Term Loan Agreement, and the pledging of the security above described. BE IT FURTHER RESOLVED that any two of said officers be and they are hereby authorized, empowered and directed, for and in the name of The State Board of Agriculture and as its corporate act and deed, to make, consent to and agree to any changes in the terms and condi tions of said Term Loan Agreement which they may deem necessary, expedient and proper, prior to or at the time of the execution of said Term Loan Agreement, but no such amendments shall change the provisions therein for the amount to be borrowed, the interest to be paid thereon, or the security pledged. BE IT FURTHER RESOLVED that said officers, either in said Term Loan Agreement or in the note to be executed as evidence of the loan by the Bank, shall not pledge the credit of or create any liability on the part of the State of Michigan, The State Board of Agriculture, or any member or officer of this Board, or of their successors, other than to pledge the security above described. BE IT FURTHER RESOLVED that any two of said officers be and they are hereby authorized, empowered and directed, for and in the name of The State Board of Agriculture and as its cor porate act and deed, to accept the commitment of National Bank of Detroit. MINUTES OF THE MEETING of the STATE BOARD OF AGRICULTURE November 20, 1958 Present: Dr. Smith, Chairman; Messrs. Brody, Harlan, Rouse, Stevens, Vanderploeg; Dr. Bartlett, President Hannah and Secretary McDonel Absent: Treasurer May The meeting was called to order at 10:25 a.m. The minutes of the previous meeting were approved. SPECIAL MISCELLANEOUS 1. Approval of the Finance Committee Items above. On motion of Mr. Brody, seconded by Mr. Rouse, it was voted to approve the Finance Committee Items. Approval Finance Committee Items SPECIAL MISCELLANEOUS, continued 2. Ordinarily the legislative appropriation is received in 12 equal monthly installments. The State of Michigan has "been unable to meet this commitment in recent months. The allocation which would normally have "been received in early September was received in late October. The payment that would normally have been received in early October in the amount of $2,109,583 has not yet been received. The November allocation in the same amount has not been received, and there is some indication that the December 1 allocation will also be delayed. As of today, the state is back in its payments in the amount of $4,219,166, and after December 1 the total amount will be $6,328,7^9. ^Approval of Itwo resolu tions re: Sborrowing Imoney to imeet November and December Ipayroll. November 20, 1958 4061 If we are to meet our labor payrolls and our salary payrolls, pay our employees for travel, and discount our bills, it will be necessary for us to go to the l^ichigan banks and borrow substantial sums of money to get us through the month of November and the month of December. After we have used our available resources plus our continuing income, it will be necessary for us to borrow approximately $900,000 in order to keep our month-end commitments for November and an additional $2,555.? 000 in December. If we receive one monthly allocation from the state during December, the December borrowing can be reduced by the amount of the payment, or by $2,109,000. It is recommended that the Board approve resolutions which have been drawn by the Board's attorney, Mr. Leland Carr, which m il authorize and permit the necessary borrowing in the amount of up to $900,000 at the end of November and up to an additional $2,555,000 at the end of December. The Michigan National Bank will loan us the amount required at the end of November at an interest rate of 3i$ f °r the period of the loan. The December borrowing will be negotiated as necessary from Michigan banks on the basis of the most favorable terms available. On motion of Mr. Brody, seconded by Mr. Vanderploeg, it was voted to approve the above recommenda tion and the following resolutions: Resolution No. 1: WHEREAS, the financial condition of the State is such that the Treasurer, in his capacity as disbursing officer, has declined to make payment to this Board of the appropriation of the Legislature covering the month of November, 1958, and WHEREAS, it m il be necessary, because of the situation thus created, for this Board in order to meet current expenses including payroll, bills and other obligations, to borrow money for such purposes, NOW THEREFORE, BE IT RESOLVED that the President, Vice President for Business Affairs and Secretary of Michigan State University or any of them be and hereby are authorized and empowered to negotiate for the borrowing of necessary funds in an amount not to exceed nine hundred thousand ($900,000.00) dollars for the month of November, 1958, under the most favorable terms with interest not to exceed three and one-half (3zf°) percent. BE IT FURTHER RESOLVED that said officers or any of them are authorized and empowered to execute all evidences of indebtedness incident thereto, pledging for paymentihereof the anti cipated revenues from the State of Michigan in accordance with the appropriation of the Legis lature for the current fiscal year and such other security as may be necessary. Resolution No. 2: WHEREAS, the financial condition of the State is such that the Treasurer, in his capacity as disbursing officer, has indicated that payment to this Board of the appropriation of the Legislature covering the month of December, 1958, will not be made, and WHEREAS, it will be necessary, because of the situation thus created, for this Board in order to meet current expenses including payroll, bills and other obligations, to borrow money for such purposes, ".. NOW THEREFORE, BE IT RESOLVED that the President, Vice President for Business Affairs and Secretary of Michigan State University or any of them be and hereby are authorized and empowered to negotiate for the borrowing of necessary funds in an amount not to exceed two million five hundred fifty-five ($2,555^000.00)7¾¾¾¾¾ for the month of December, 1958, under the most favorable terms with interest not to exceed that declared by the Federal Reserve Board for said month. BE IT FURTHER RESOLVED that said officers or any of them are authorized and empowered to execute all evidences of indebtedness incident thereto, pledging for payment thereof the anticipated revenues from the State of Michigan in accordance with the appropriation of the Legislature for the current fiscal year and such other security as may be necessary. MEW BUSINESS Resignations and Terminations Resignations 1. Clayton C. Ingerson, Associate Agricultural Agent, October 31, 1958 to enter private business. 2. Edna E. Sommerfeld, Assistant Professor, Extension, January 15, 1959 to accept a position at Pennsylvania State University. 3. Cancellation of the appointment of J. W. Creighton, Professor of Forest Products, January 1, 1959- "iMEW BUSINESS, continued- Resignations and Terminations, continued November 20, 1958 \k. Daris D. Moyer, Instructor (Ext.) in Poultry Science, December 8, 195$ to accept a position as Turkey Specialist for A. E. Staley Manufacturing Company at Decatur, Illinois. 5. Edwin B. Sprague, Instructor in Natural Science, December 31, 195^ to accept a position with industry. 6. Carolyn B. Middleton, Assistant Professor of Textiles, Clothing and Related Arts, December 31, 1958, to become a full time homemaker. "7- Branford P. Millar, Professor of English, January 31, 1959 to become President of Portland, Oregon State College. 8. Aileen Brothers, Textbook Editor, M.S.U. Press, November 30, 1958 to accept a position with J. B. Lippincott Company in Chicago * 19. Rudolf E. Nobel, Psychiatrist, Health Service, November 30, 195¾ to spend full time in private practice. Leaves--Sabbatical 1. A. J. Panshin, Professor and Head of Forest Products, with full pay from January 1, 1959 to March 31, 1959 to revise a textbook. 2. Philip J. Thorson, Assistant Professor of Mechanical Engineering with half pay from September 1, 1959 to August 31, i960 to study for his Ph.D. at the University of Michigan. 3. Murray Jones, Associate Professor of Art, with half pay from September 1, 1959 to August 31; i960 to study and travel in Japan. [k. Edith A. Doty, Assistant Professor of Foreign Languages, with half pay from September I, 1959 to August 31 > i960 for study and travel in the Philippines and Spain. 5. Donald J. Montgomery, Professor of Physics and Astronomy, with half pay from September 1, 1959 to August 31 j> i960 for study at the University of Grenoble, France. 6. Henry S. Leonard, Professor and Head of Philosophy, with half pay from September I, 1959 to August 31 > i960 to write a book on logic. 7« Earl C. Richardson, Associate Professor, Information Services (Ext.) with full pay from April 1, 1959 to September 30, 1959 for study at M.S.U. and travel. 8. Wilson B. Paul, Director of the Lecture-Concert Series, with full pay from June 15, 1959 to September 30j 1959 to travel around the world. Leaves—Other 1. Paul J. Deutschmann, Professor of Communication Arts, without pay from October 1, 1959 to December 31, 1959 to teach at Stanford University*. 2, George L. Brandon, Associate Professor of Teacher Education, without pay from December 1, 1958 to December 15, 1958 to act as Consultant to the U. S. Office of Education. ts Appointments 1. Clark D. Paris, Instructor (Res.) in Horticulture, at a salary of $5200 per year on a 12-month basis effective November 1, 1958 to October 31, 1959. 2. Constance B. Elliott, Assistant Instructor in Short Courses, at a salary of $50 per raonth from November 1, 1958 to February 28, 1959. 3. B. C. Roberts, Lecturer in Economics at a salary of $100 for the period December *f, 1958 to December 5> 195^. k. Appointment of the following Lecturers in Social Work without salary effective September 1, 1958 to August 31, 1959: Eloaer M. Arneson Alfred C. Ball . Robert A. Berles Ruth Mary Bertsch Irma M. Bradley William R. Brewer Helen I. Brown Rose T. Brunson Flora I. Burgess Clarence S. Cole Jane Cole Rheta M. Collins Berneita K. Ebert Joseph R. Gorman Edith Hendrick Schuyler Henehan Dorothea K. Hunter Ruth T. Koehler Lorraine Lull Patricia A. Millar Adeana Peterson Marguerite M. Parrish Ted A. Parnaretos Rebecca Anthony Vaughn Elizabeth M. Ungvary William D. Rennie 5« S. Margaret Gillam, Assistant Professor of Foods and Nutrition and Continuing Education, at a salary of $8000 from December 1, 1958 to November 30, 1959. 6. Michael Cimino, Assistant Instructor in Art, at a salary of $23¼ for the period October 27, 1958 to December 8, 1958. MEW BUSIIffESS, continued Appointments, continued November 2 0, 1958 4067 \ Appointments 7. William E. Field, Lecturer in Veterinary Pathology, at a salary of $^50 for each month December 1 0, 1958 to June 3 0, 1959- 8* George Karas, Director of the Physical Plant at Michigan State University-Oakland at a salary of $7800 per year on a 12-month basis effective December 1, 1 9 5 $. 9. James A* Matteson, Conference Coordinator in Continuing Education, at a salary of $^-200 per year on a 12-month basis effective November 1, 1 9 5 8. 1 0. Robert S. Hanes, Assistant Auditor in the Business Office, at a salary of $6500 per year on a 12-month basis effective November 1 0, 195^- Salary Changes 1. Increase in salary for Shigemi Honma, Assistant Professor (Res.) of Horticulture, to $8200 per year, effective December 1, 1 9 5 ^. 2. Increase in salary for Elizabeth M. Drews, Associate Professor of Foundations of Education, to $8500 p er year effective December 1, 1 9 5 8. 3* Increase in salary for Bernard M i k o l, Instructor in Counseling, to $7000 per year effective December 1, 1958* Miscellaneous 1, Assignment of Margaret B. Harris to the Cooperative Extension Service at a salary of $8000 p er year on a 12-month b a s i s, effective November 1, 1 9 5 8, to fill position 8k. returned from assignment to the University of the Ryukyus. Miss Harris has Change in the effective date of the appointment of Robert Gustafson as Associate Professor (Research) of Agricultural Economics from November 1 to December 1, 1 9 5 8. 3. Change In status of Trent R. L e w i s, Instructor (Research) in Dairy, from a regular appointment under tenure to a temporary appointment ending December 3 1, 1959* Change in status of Donald Hillman, Field Dairyman (Extension) in Dairy from half time at $^-300 per year to full time at $8000 per year on a 12-month basis, effective January 1, 1959- Inc. in sal aries for: Shigemi Honma Elizabeth M. Drews Barnard Mikol ; Reinstatement iMargaret Harri at $8000 ;Ch. ef. date jappt. R.G. I Gustafson to bee. 1^8 iCh. status ;-Trent Lewis and Donald Hillman also 5« Change in status of Roland H. E b e l, Instructor in Political Science, from part-time at a salary Roland H.Ebel of $2^4-00 on a 10-month basis to two-thirds time at a salary of $4200 per year on a 12-month b a s i s, effective November 1, 1 9 5 8. David Berlo Hd. Dept. Gen 6. Designation of David K. Berlo as Head of the Department of General Communication Arts at the same salary of $7700 per year on a 10-month basis, effective December 1, 1958. Communication Arts Add. $1500 pd 7. Payment of $1500 each to F. S. Tse and J. E. L a y, Associate Professors In Mechanical Engineering +Q ? i g( T se & "J. E. Lay for attending simmer institutes during the summer of 1 9 5 8, paid one-half from Atomic Energy Commission grant, account 3I-380I, and one-half from University General funds. 8. Change Aleksander Kivilaan from Instructor (Research) to Assistant Professor (Research) of Botany and Plant Pathology with a salary increase from $5000 to $5200 per year on a 12-month b a s i s, effective November 1, 1 9 5 8. D r. Kivilaan's appointment expires on Jnne 3 0, 1959. 9. Appointment of Paul D. Bagwell as Director of Scholarships, effective December 1, 1958. Termination of military leave for James A. Matteson, Clerk III in Continuing Education, effective October 3 1, 1 9 5 8. Report of the death of George C. Kimball, Specialist in the Vietnam Project, on November 8, 1 9 5 8 .G e o- Kimball Report of the death of Elwln L. Willett, Associate Professor (Research.) of Dairy, on October 2 2, iE.-" Willett 1958, D r. Willett was born on M ay 2 6, 1913* a n