MINUTES OF THE MEETING of the FINANCE COMMITTEE February 4, 1965 The Finance Committee convened at 7 a.m. for breakfast at Kellogg Center. The following members were present: Messrs. Harlan, Hartman, Huff, Merriman, Nisbet, Smith Stevens, White; President Hannah, Treasurer May and Secretary Breslin Absent: No one Investment Items 1. Scudder, Stevens and Clark and Mr. Cress recommend the following investment items:. Retirement Fund Amount Security Recommend selling: .19,500 shs. Union Pacific Railroad Co. $.40 preferred stock Recommend purchasing: $90,000 U. S. Treasury 4%% due 11/15/73 $100,000 Bethlehem Steel Corp 4% due 1/1/90 Approx. Price Principal Income 10 $195,000 $ 7,800 99% 101 90,338 101,000 $191,338 3,825 4,500 $ 8,325 On motion by Mr. Harlan, seconded by Mr. Stevens, it was voted to approve the above recommendations. 2. Communication from Mr. May: At the January meeting of the Board I reported a list of securities received from Mr. Ivan Wright for credit to his life income account: i This list included a gift of 100 shares of Tranter Manufacturing stock. Actually, Mr. Wright gave the University 330 shares. Will you please place acceptance of a gift of 230 shares of Tranter Manufacturing valued at $2,415 on the February Board agenda. This stock will be retained in the account of the University for the presenti $21,525 approp. for acoustical 3* Recommendation that the Board authorize a symphonic acoustical shell on the stage in the Ishell on stage of Aud. Auditorium at a total cost of $21,525 and authorize the appropriation to pay for it. On motion by Mr. Nisbet, seconded by Mr. White, it was voted to approve Items 2 and 3. IGerald R. Ford to be Commence- jment speaker iMarch 1965 IBids rejected |for steam tun- xel, steam Itransmission in and water aain to new IPower Plant 4. The Senior Class recommended that Gerald R. Ford, Congressman from Kent and Ionia Counties and recently elected a minority leader in the House of Representatives, be invited to deliver the commencement address on Sunday, March 14. The Faculty Committee on Honorary Degrees recommends that he be awarded an honorary degree Doctor of Laws. On motion by Mr. Merriman, seconded by Dr. Smith, it was voted to approve the above recommendation. Mr. White wished to be recorded as not voting on this item. 5. Communication from Mr. May: On January 28 the following bids were received for a steam tunnel, steam transmission main, and water line to connect the new Power Plant with our utility system: Christman Company Haussman Construction Granger Construction Reniger Williams Construction Don Gargaro Rath and Dexter $ 578,600 579,369 597,866 616,500 686,612 699,987 782,165 I I I 1 These bids were much higher than anticipated, and it is recommended that the Board reject all bids. We will then rebid the work, eliminating the water transmission line, changing the method of placing the steam main under the railroad tracks, and eliminating a number of valves to bring the cost of the work more in line with our original estimates. On motion by Mr. Harlan, seconded by Mr. Stevens, it was voted to approve the above recommendation that these bids be rejected and that the project be rebid. H 6. Mr. May introduced a detailed discussion reviewing the bid-letting on ail of the power plant components, pointing out that on the basis of present estimates, it is probable that the total cost of this project will exceed the budget and the amount of the State appropriation by as much as $750,000. i r FINANCE COMMITTEE ITEMS, continued 6. Power plant bid-letting, continued: February 4, 1965 After discussion, it was mutually agreed that the Board would proceed to let the balance of the contracts as advantageously as possible and hold in abeyance a decision with reference to the possibility of asking the Legislature for a supplementary appropriation to cover the additional costs. It was pointed out that the estimates of the total cost of this project by the engineers for the Legislative Committee were more than $1,000,000 in excess of the original University engineers1 estimates and the amount authorized in the legislative appropriation. Balance of contracts to be let as advantageous ly I as possible 7. Mr. May reported that bids on the electrical trades for the power plant are._ being taken after the adjournment of this meeting. He pointed out that, if the bids are within reason, it is necessary to award this contract, authorizing the beginning of construction. On motion by Mr. Harlan, seconded by Mr. Stevens, it was voted to authorize the President and Mr. May to award the contract to the low bidder when telephonic approval has been secured from a majority of the Board of Trustees. A report of the bids will be included in the agenda for the next Board meeting. 8. Mr. Carr introduced a discussion reporting on the progress of negotiations with representa- tives of the State Administrative Board and the Attorney General, transferring by assignment of the construction contracts previously let on the power plant job. This contemplates an assignment by the Administrative Board of each of these contracts to the Board of Trustees implemented by an agreement releasing the funds for payment thereof. On motion by Mr. Nisbet, seconded by Mr. Huff, it was voted to approve in principle the agreement as reported by Mr. Carr with the exact wording of the agreement to be filed with the material for this meeting, when negotiations are completed. 9. We need Finance Committee approval, pursuant to authorization previously granted to close the purchase of that property located in the City of Lansing, County of Ingham, State of Michigan legally described as: The West 104 feet of the east 226.5 feet of the north 264 feet of the southeast quarter of Section 26, T4N, R2W from Robert 0. Hess and Odessa J. Hess, husband and wife for the sum of $15,000 cash. On motion by Mr. Huff, seconded by Mr. Merriman, it was voted to approve the above purchase. 10. The President reported on certain conversations with Gladys Olds Anderson with reference to the R. E. Olds home. After discussion, it was generally agreed that the University should investigate the possible uses that might be made of this home with the whole matter to come back to the Board before any final decisions are made. 11. Mr. Earl Cress met with the Trustees and reviewed the status of all of the revenue bond issues outstanding. It is necessary to borrow an additional $17,400,000 to be used for the following purposes: Holmes Hall Hubbard Hall Additions to Owen Halls Reserves Total $6,850,000 7,000,000 2,950,000 600,000 $17,400,000 Elec. trades bids for power plant to be reported,] March meeting Report of Mr. Carr on progress of negot. with St Adm Board trans, by assignment construction contracts previously let on pp job Approval purchase of Robert 0. and Odessa J. Hess property Report of certain conversa- tions re: R^-E. Olds home. Discussion by Earl Cress of status of revenue bonds # The first $4,400,000 is to be secured by increasing the amount of an existing bond issue from $12,500,000 to $16,900,000. This issue now has pledged to its repayment the income of McDonel Halls of $350,000 per year, the income of Wonders Halls of $350,000 per year, the income of Owen Halls at $120,000 per year and investment income at $20,000 per year. The additional revenues from Owen Hall will increase the income from that source from $120,000 to $350,000 per year. The tentative commitments for this additional financing are as follows: Detroit Bank and Trust Manufacturers National Bank City National Bank $1,500,000 2,500,000 400,000 at an interest rate of approximately 3.45%. A new loan is recommended in the amount of $13,000,000 with maturities from 1 to 20 years totaling $5,000,000 and the maturities from 21 to 40 years totaling $8,000,000 at an average interest rate of. 3.50%.• The security on this bond issue will be the income from Fee Halls, estimated at $375,000 per year and the Akers Halls at $375,000 per year. Tentative commitments for this borrowing are: National Bank of Detroit A large New York bank $ 5,000,000 8,000,000 continued - - 5208 Status of revenue bond issues. FINANCE COMMITTEE ITEMS, continued 11• Revenue bond issued, continued: February 4, 1965 The following Resolution was offered by Mr. Nisbet, seconded by Mr* Huff and unanimously adopted by the Board of Trustees: BE IT RESOLVED that the Resolution authorizing term loan agreement in the sum of $7,450,000 secured by a pledge of the net income of Holmes and Hubbard Halls, on a seven year term, at a rate of 2.75%, be and hereby is approved, subject to review of the final form thereof by the University Attorney. BE IT FURTHER RESOLVED, that either the President, Vice President for Business and Finance, or the Secretary, is authorized to accept commitments on behalf of the Board of Trustees covering a proposed Revenue Bond Issue in the sum of $13,000,000 on Holmes, Hubbard and Owen Halls together with an addition to the $12,500,000 Revenue Bond Issue dated July 1, 1963, on McDonel, Wonders and Owen Halls in the sum of $4,400,000. Said commitments shall carry an interest factor of approximately 3.5% and shall accord to the financing program detailed by Messrs. Cress and May at this meeting of the Board. Approval of utilization of I uncommitted \ funds 12, At the last Board meeting it was agreed that consideration should be given to the possibility of approving at this meeting the utilization of uncommitted funds for the purposes that are necessary in advancing the work of the University. As the first step in this program, it now looks like there may be as much as $500,000 unexpended in this fiscal year in the undergraduate special education account assigned to the Office of the Provost. It is recommended that $348,000 of this fund be transferred to the following projects with an authorization for the President, Provost and Vice President for Business and Finance to proceed to make expenditures under this appropriation as follows: a. For building of classrooms and offices in the Brody Group of dormitories Remodeling Equipment $ 75,000 30,000 b. For equipment in the Chemistry Building for the use of the expanding Biophysics program c. For equipping teaching and research laboratories in the new Chemistry Building $105,000 75,000 100,000 d. For the purchase of additional books for the Conrad Library 25,000 e. For the purchase of additional equipment and replacement of some present equipment in the Closed Circuit Television Studios for on-campus teaching uses 43,000 $348,000 On motion by Mr. Huff, seconded by Mr. Stevens, it was voted to approve the above recommendations, Adjourned. MINUTES OF THE MEETING of the BOARD OF TRUSTEES February 5, 19 65 Present: Mr. Huff, Chairman; Messrs. Harlan, Hartman, Merriman, Nisbet, Smith, Stevens, White; President Hannah, Treasurer May and Secretary Bresiin Absent: No one The meeting was called to order at 10:15 a.m. The minutes of the January meeting were approved. SPECIAL MISCELLANEOUS r I I 1. Approval of the Finance Committee items on the preceding pages. I Approval of special re- port of Mich. Coord. Council for Public Higher Educ On motion by Mr. Nisbet, seconded by Mr. Stevens, it was voted to approve the Finance Committee Items. 2. Mr. Huff indicated that recently the Michigan Coordinating Council for Public Higher Education had accepted and approved a report of the special committee making recommenda- tions with reference to branch colleges of existing institutions, with the understanding that this report would be submitted to the various Boardsof Control of the various state-supported colleges and universities for their approval. On motion by Mr. Huff, seconded by Mr. Stevens, it was voted to approve the above recommendation. NEW BUSINESS Resignations and Terminations February 5, 1965 5209 \ Resignations 1. Cancellation of the appointment of Howard B. Meek, Visiting Professor of Hotel, Restaurant and Institutional Management April 1, 1965. 2. Brendan Coleman, Instructor in Secondary Education and Curriculum; August 31, 1965 to accept a position at Mankato State College. 3. Walter Georg Mayer, Assistant Professor (Res.) of Physics and Astronony February 28, 1965 to accept another position. 4. Gordon T. Coats, Assistant Professor of Continuing Education, March 19, 1965 for personal reasons. Leaves--Sabbatical , iLeaves 1. Otto Suchsland, Associate Professor of Forest Products, with full pay from June 15, 1965 to December 14, 1965 to study plywood production in Washington and Louisiana. 2. Lawrence J. Baril, Instructor in Police Administration and Public Safety, with full pay from April 1, 1966 to August 31, 1966 to study and travel in Scandanavia. 3. Lucille K. Barber, Professor of Social Work, with full pay from September 1, 1965 to December 31, 1965 to study at the University of Chicago, University of Illinois and Loyola. 4. Mary Alice Burmester, Associate Professor of Natural Science, with full pay from April 1, 1965 to June 30, 1965 for study and travel in western USA. 5. Tamara Brunnschweiler, Librarian in the Library, with full pay from March 1, 1965 to August 31, 1965 for study and research in Colombia. 6. Harry A. Grater, Jr. Associate Professor in the Counseling Center, with full pay from July 1, 1965 to December 31, 1965 for study and research in East Lansing. 7. Marjorie A. Kinney, Assistant Professor of Nursing with full pay from April 1, 19 65 to September 30, 1965 to study at New York University. - Leaves--Health 1. Helen Hollandsworth, Associate Professor of Secondary Education and Curriculum, with full pay from January 13, 1965 to February 28, 1965. 2. Meta W. Vossbrink, Associate Professor of Secondary Education and Curriculum, with full pay from December 18, 1964 to February 28, 1965. 3. Buford L. Stefflre, Professor of Guidance and Personnel Services with full pay from January 6, 1965 to January 31, 1965. Leaves--Other 1. Axel L. Andersen, Professor of Botany and Plant Pathology without pay from April 1, 1965 to March 31, 1967 to work on the staff of USDA. 2. Claude A. Welch, Associate Professor of Natural Science and Associate Director of the Honors College without pay from July 1, 1965 to August 31, 1965 to work at the University of : California and lecture in Japan. 3. Mary M. Leichty, Assistant Professor in the Counseling Center without pay from July 1, 1965 to July 31, 1965 for travel in Europe. 4. William J. Mueller, Assistant Professor in the Counseling Center without pay from July 5, 1965 to July 30, 1965 to teach at Ohio State. 5. W. Lowell Treaster, Professor and Director of Information Services, with full pay from May 17, 1965 to June 4, 1965 to take the Detroit Press Club European Tour. Appointments Appointments 1. Anne Joanne Kinsel, Home Economics Agent, Macomb County, at a salary of $8,000 per year on a 12-month basis effective February 1, 1965. 2. George Frederic Jennings, 4-H Agent, Isabella County, at a salary of $8,200 per year on a 12-month basis effective March 1, 1965. 3. Vladimir I* Grebenschikov, Associate Professor of German and Russian, at a salary of $11,000 per year on a 10-month basis effective September 1, 1965. 4. Donald N. Baker, Assistant Professor of History, at a salary of $8,000 per year on a 10-month basis effective September 1, 1965. 5. Paul J. Hauben, Assistant Professor of History at a salary of $9,000 per year on a 10-month basis effective September 1, 1965. 5210 NEW BUSINESS, continued Appointments Appointments , continued February 4, 1965 6. Anthony Molho, Assistant Professor of History, at a salary of $8300 per year on a 10-month basis effective September 1, 19 65. 7. E. Jerome McCarthy, Professor of Marketing and Transportation, at a salary of $16,500 per year on a 10-month basis effective September 1, 1965. 8. Yvonne Waskin, Instructor in Elementary and Special Education, at a salary of $1,300 for the period April 1, 1965 to June 30, 19 65. 9. Joseph E. Varner, Professor of Plant Research Laboratory and Biochemistry, at a salary of $24,000 per year on a 12-month basis effective May 20, 1965. 10. William E. Cooper, Assistant Professor of Zoology, at a salary of $9,500 per year on a 10-month basis effective September 1, 1965. 11. Michael E. Borus, Assistant Professor of Labor and Industrial Relations, at a salary of $11,143 per year on a 12-month basis effective September 1, 1965 to June 30, 1966. j 12. Donald S. Gochberg, Instructor in Humanities, at a salary of $7,800 per year on a 10-month | basis effective September 1, 19 65. ; 13. Roy T. Matthews, Instructor in Humanities, at a salary of $7,400 per year on a 10-month basis effective September 1, 1965. I 14. Benjamin A. Banta, Assistant Professor of Natural Science, at a salary of $9,000 per year on a 10-month basis effective September 1, 1965. 15. Charles R. Peebles, Assistant Professor of Natural Science, at a salary of $8,500 per year on a 10-month basis effective September 1, 1965. 16. Jogindar S. Uppal, Assistant Professor of Social Science, at a salary of $8,500 per year on a 10-month basis effective September 1, 19 65. 17. Fritz L. Hermann, Librarian, Library, at a salary of $6,000 per year on a 12-month basis effective February 15, 1965 to June 30, 1965. 18. Warren P. Stoutamire, Associate Professor at the Biological Station and Botany and Plant Pathology, at a salary of $2,500 for the period June 21, 1965 to August 12, 1965. \ 19. Harold S. Johnson, Assistant Professor of Political Science at a salary of $8,500 per year on a 10-month basis effective September 1, 1965. Transfers Transfers 1. Marvin M. Eppelheimer from 4-H Agent Branch County, to 4-H Agent, Newaygo County, at a salary of $8,500 per year effective Mar.1, 19 65, 12-month basis. 2. Edward A. Poole, from 4-H Agent, Isabella County to 4-H Agent, Washtenaw County at the same salary of $8,000 per year on a 12-month basis effective March 1, 1965. 3. Donald L. Schmidt, from Food Service Manager. AP-1, Case Hall to Manager AP-IV, Case Hall at an increase in salary to $7,800 per year effective February 1, 1965. 4. Ronald Smith, from Food Supervisor VIII Brody Hall to Food Service Manager AP-I Case Hall at an increase in salary to $6,840 per year effective February 1, 19 65. [Salary inc. Salary Changes 1. Increase in salary for Krishna Kumar, Research Associate, Physics and Astronomy to $735 per month from December 1, 1964 to May 31, 1965. 2. Increase in salary for Robert A. Weisflog, Food Service Manager AP-I, Shaw Hall, to $7,000 per year effective February 1, 19 65. 3. Increase in salary for Ellis D. Norman, Food Service Manager AP-I, Wilson Hall to $7,000 per year, effective February 1, 1965. On motion by Mr. White, seconded by Mr. Stevens, it was voted to approve the Resignations and Terminations, Leaves, Appointments, Transfers, and Salary Changes. Ch ef. date lappt. G.L. I Beckstrand IJas Costar I Chairman Guid and Pers Serv [Term. R.L. lEbel as Chair- Iman Miscellaneous 1. Change in the effective date of appointment of Gordon L. Beckstrand, Professor (Extension) of Cooperative Extension Service, from March 1 to February 20, 1965. 2. Appointment of James W. Costar, Professor of Guidance and Personnel Services, as Chairman of the Department \