6346 Note: Minutes of the Special Meeting of the Board of Ttuste£s hald oti February 4, 1069 will be found on page 6370-A. MINUTES OF THE MEETING of the FINANCE COMMITTEE February 20, 1969 The Finance Committee convened at Kellogg Center at 7:30 p.m. The following members were present: Messrs. Hartman, Huff, Martin, Merriman, Nisbet, Stevens, Thompson, and White; President Hannah, Acting Vice President Wilkinson, and Secretary Breslin. Absent: No one, Investment recommendations 1. Recommendations from Scudder, Stevens & Clark and Earl Cress: Approx. Price Principal Income Yield 33 $99,000 $ 900 0.9% 53 35 123 270 38 29 97 10,600 10,500 12,300 13,500 2,660 11,600 240 285 32 80 63 400 2.3% 2.7% 0.3% 0.6% 2.4% 3.4% 38,800 2,480 6.2% 74 33 44,400 49,500 600 450 1.4% 0.9% 53 .. 270 38 35 123 21,200 13,500 19,000 21,000 18,450 480 80 450 570 2.3% 0.6% 2.4% 2.7% 48 0.3% Forest Akers Fund Amount Security Maturing: $10,000 U.S. Treasury Bills 1/28/69 Recommend: Roll-over into 6 months maturity A. V. Case Memorial Scholarship Fund Recommend selling: 3,000 shs. International Mining Recommend purchasing: 200 shs. 300 shs. 100 shs. 50 shs. 70 shs. 400 shs. up to $40,000 Magnavox Federated Dept. Stores Polaroid Xerox Hanes (making 300) Scott Paper U.S. Treasury Bills i^pprox. 6 months maturity) Albert Case Fund Recommend selling: 600 shs. 1500 shs. Abbott Laboratories International Mining Recommend purchasing: 400 shs. 50 shs. 500 shs. 600 shs. up to 150 shs. Magnavox Xerox Hanes Federated Dept. Stores Polaroid Class of 1915 Fund Maturing: $3,000 U.S. Treasury Bills 2/28/69 Recommend: Roll-over into 6 months maturity Consolidated Investment Fund Recommend purchasing: up to 150 shs. Hanes Corp. (making 900) 38 5,700 135 2.4% Damm & Wahlen Scholarship Fund Maturing: $5,000 U.S. Treasury Bills 2/28/69 Recommend purchasing: $6,000 U.S. Treasury Bills (approx. 6 months maturity) James & Lynelie Holden Fund Maturing: $10,000 U.S. Treasury Bills 2/28/69 Recommend: Roll-over;into 6 months maturity 4,811 5,820 I I I Minutes of the Finance Committee Meeting February.20j 1969 k' V Investment recommendations Approx. Price Principal Income Yield j 38 38 92 74 38 53 75 $26,600 $ 770 2.! 26,600 630 2.4% 36,800 44,400 1, 650 600 4.5% ! 1.4% 11,400 31,800 270 720 2.4% 2.3% 37,500 2, 250 6.0% 74 14,800 200 1.4% 270 13,500 80 0.6% 92 90 92 74 60 73 75 350 ,520 15,716 4.5% 45 ,000 2,250 5.0% 69 392 ,000 ,200 3,188 5,300 4.6% 1.4% 120 ,000 8,500 7.1% 146 ,000 9,250 6.3% 150 ,000 9,250 6.2% 270 35 53 94 210 222 ,500 ,000 ,600 560 5,700 5,040 0.6% 2.7% 2.3% 1. Investment Items, continued Insurance Fund Amount Security Recommend selling 700 shs. CNA Cum- Cv. Pfd. "A" Recommend purchasing: up to 700 shs. Hane& Corp. Jenison Fund Recommend selling: $40,000 600 shs. U.S. Treasury Bonds 4.125% 2/15/74 Abbott Laboratories Recommend purchasing: up to 300 shs. 600 shs. $50,000 Hanes (making 665) Magnavox General Motors Acceptance 4.50% 11/1/85 # H.W. & E.A. Klare Trust Fund Recommend selling: 200 shs. Abbott Laboratories Recommend purchasing: up to 50 shs. Xerox Retirement Fund Recommend selling: $381,000 $50,000 $75,000 U.S. Treasury Bonds 4.125% 2/15/74 Federal Land Banks 4.50% 2/20/74 U.S. Treasury Bonds 4.25% 5/15/74 5,300 shs. Abbott Laboratories Recommend purchasing: $200,000 $200,000 $200,000 up to 350 shs. 6,000 shs. 4,200 shs. Missouri Pacific 4.25% 1/1/2005 Consolidated Edison 4.625% 11/1/90 U.S. Steel 4.625% 1/1/96 Xerox Federated Dept. Stores Magnavox Fred T. Russ Fund Maturing: $10,000 U.S. Treasury Bills 2/28/69 Recommend: Roll-over into 6 months maturity F. A. & E. G. Simonsen Fund Maturing: $4,000 U.S. Treasury Bills 2/28/69 Recommend: Roll-over into 6 months maturity Spartan Fund Maturing: $12,000 U.S. Treasury Bills 2/28/69 Recommend: Roll-over into 6 months maturity i Minutes of the Finance Committee Meeting February 20, 1969 Investment recommendations 1.- Investment Items, continued White Motor Company Fund Maturing: $10,000 U.S. Treasury Bills 2/27/69 Recommend: Roll-over into 6 months maturity Recommend selling: 300 shs. Abbott Laboratories Recommend purchasing: 200 shs. up to 40 shs. Magnavox Xerox Ivan Wright Fund Maturing: $3,000 U.S. Treasury Bills 2/27/69 Recommend: Roll-over into 6 months maturity Ivan & Jean Wright Beneficiary Fund Recommend selling: 130 shs. Abbott Laboratories Recommend purchasing: up to 35 shs. Xerox Approx. Price Principal Income Yield .74 $ 22 g200 $ 300 1 .4% 53 270 10 ,600 240 2 .3% 10 ,800 64 0 .6% 74 9,620 130 " 1.4% 270 9,450 56 0.6% . sale of stock rec from ! yt.V.Burlingame |2. Authorization was requested to sell the following stock: a. 63 shares of Eaton & Howard stock received from Mr." and Mrs. Mark V. Burlingame for the MSU Development Fund. On motion by Mr. Nisbet, seconded by Mr. Merriman, it was unanimously -voted to approve the Investment Items and the sale of the 63 shares of Eaton & Howard stock. ^Procedures to be 3. Communication from PvOger Wilkinson: Sfollowed in matter of H. A. | Fields estate I Attached is a gift and grant form and _a schedule of the items received from the Estate of Harold A. Fields, deceased. ; • . i ; Under the terms of the last will and testament of Mr. Fields, it was provided that the residue should be given to James R. Ramsey of Lansing, Michigan, in trust for the following uses and purposes: a. To pay to Mrs. Gertrude Schmidt the sum of $250 on the first day of January and June of each year as long as she shall"live (using interest and principal, if necessary), and b. Immediately following her death to transfer whatever remains of said funds to Michigan State University to provide scholarships for needy students as a memorial to testatorfs son Jack B. Fields, who was killed in action November 13, 1944, while serving in France with the Twelfth Air Corps, 443 Squadron, said fund to be known as the "Jack B. Fields Memorial Fund for Needy Students." It was agreed with Mr. Ramsey that his services as trustee were not necessary to assure payment of the annuity to Gertrude.Schmidt and that the University could handle this responsibility while holding the trust corpus for the purposes indicated in the will. \ I On motion by Mr. Huff, seconded by Mr. Stevens, it was voted to approve the above procedure. Report on dis- ;4* Mr. Breslin and Provost Neville discussed with the Trustees the hearings held before the Appropriations Committee of the Senate with reference to legislative appropriations for cussions re approp. for 1969- 1969-70. 1970 Baseball field to be named "John Kobs Field" 5. The Athletic Council, the Varsity Alumni Club, and others have been pressing for some years for the naming of the baseball field only as "John Kobs Field." This has beaaheld in abeyance for a variety of reasons. Mr. Breslin led a preliminary discussion with the understanding if this idea is favored by the Trustees that it be included in the agenda for the regular meeting in March. On motion by Mr. Huff, seconded by Mr. Stevens, it was voted to take formal action on the naming of the baseball field at the March meeting of the Trustees. I I I I i i i i Minutes of the Finance Committee Meeting February 20, 1969 6. Mr. Breslin and Mr. Carr discussed the present status of the controversy involving the University, the AFSME Union and Local 547 International Union of Operating Engineers. After discussion, it was moved by Mr. Thompson, seconded by Mr. Nisbet, that the University would work out the necessary details with Local 547, International Union of Operating Engineers and Local 1585, American Federation of State, County and Municipal Employees for the purpose of recognizing the Operating Engineers as the exclusive bargaining agent for the Power Plant employees. Motion carried. Mr. Stevens asked to be recorded as not participating in the discussion or voting on this issue. S349 lint. Union of [Operating Engr- ito be recognized las exclusive bargaining agent; If or Power Plant Employees 7. Mr. Breslin and Provost Neville discussed with the Trustees possible solutions of the problem raised by Senator Zollar and others having to do-.with'the present tuition charges made to all scholarship students, and particularly those financed with State of Michigan funds. Discussion re tuition charges jto scholarship, students After discussion, on motion by Mr. Stevens, seconded by Mr. Huff, it was voted to authorize Mr. Breslin to work directly with members of the Senate Appropriations Committee and try to arrive at a good solution to the problem of tuition charges made to scholarship students under the Michigan Higher Education Assistance Authority. It was the consensus of the group that the arrangements should include a charge to MHEAA of an amount equal to the average tuition collected from students paying Michigan residence fee. Trustees Thompson and Merriman voted "No.11 Oakland University 8. Communication from Attorney Carr: .... _ Authorization to purchase Barnett property by In 1957, Byron T. Barnett and his sister, Elizabeth Barnett, sold land in Section 18, Avon Township, Oakland County, Michigan, to the State Board of Agriculture for inclusion Oakland Univ. within the Oakland University Campus. The grantors retained a fraction over 36 acres • for purposes of maintaining the family residence. .. At the time of closing, we secured ] an option to purchase this remainder at a price of $2,000 per acre. The option is ; exercisable upon the death of the survivor of the two Barnetts unless earlier activated \ by notice in writing. During the intervening period of time, Byron Barnett has died, and Elizabeth Barnett is \ the sole surviving owner. She has decided to sell the land, reserving a life interest j J in a parcel supporting the old family residence. In light of the skyrocketing value of this real estate which is currently assessed at three and a half times the option figure and possesses a market value of twice the assessment, we notified her attorney of the desire of the Board of Trustees to effectuate its option rights. I ; | ; It is requested that this matter is included in the agenda for the meeting scheduled February 21, 1969, and that the officers be authorized to work out the details of the i : transfer, paying the indicated per acre cost following receipt of a survey by \ Howard Keith, R.L.S. On motion by Mr. Thompson, seconded by Mr. Huff, it was voted to authorize the purchase of the Barnett property under the terms outlined in item 8. ; \ 9. Mr. Varner suggested that the Trustees authorize the officers of the University to sell Authorization to immediately sell stock from donors when it is offered for gift purposes without specific authority of the Trustees. This is occasioned by the fact that the resulting delay recently resulted stock given to in a depreciation of about $2,200 from the original value of gifts to Oakland UniversityMSU and Oakland This delay and loss of funds affects the tax advantage to donors, irritates them, and may affect adversely their future generosity. Univ. \ . The Trustees recognize the need for the immediate sale of stocks and bonds given to Michigan | State University and Oakland University, and on motion by Mr. Nisbet, seconded by Mr. Huff, ; it was unanimously voted to authorize the officers of the universities to sell immediately \ such stocks and bonds and report these actions to the Board at its next meeting. 10. Secretary Breslin recommended that Ralph Calder and Associates be employed as the architects for the proposed Basketball-Events Building. On motion by Mr. Nisbet, seconded by Mr. Thompson, it was voted to employ Ralph Calder and Associates as the architects for the Basketball-Events Building. The vote was 5 "Yes," 3 "No.": Calder & Assoc. Architects for Basketball- Events Building 11. Secretary Breslin recommended the installation of security measures to protect the computer installation in the Computer Center at an estimated cost of $21,000, with $7,500 charged to Dean Von Tersch's funds and $13,500 to the Secretary's Alterations and Improvements account. Security measuies to be installed in Comp. Center Mr. Huff moved, seconded by Mr. Stevens, to install the recommended security measures in the Computer Center. Unanimously carried. jMinutes of the Finance Committee Meeting February 20, 1969 1 Physical Plant [12. Engr.Serv. to \ \ design and \ supervise \ constr. of Botany Field Lab. Some years ago it was necessary to require the College of Agriculture to move the Botany Field Laboratory and Plant Pathology plots from the corner of Forest and Beaumont Roads to a new site to make it possible to increase the power of WKAR-FM. The new site for this project is to be on College Road as a part of the University farm. It is estimated that the cost of the building and the moving will total $67,000 with the building estimated to cost $42,400. The project cost is to be shared equally between research facilities funds of the United States Department of Agriculture and the Agricultural Experiment Station funds. This authorization is recommended so that Physical Plant Engineering Services can proceed to design and supervise the construction involved. !On motion by Mr. Nisbet, seconded by Mr. Thompson, it was voted to approve the above jrecommendation. ;13. CTV facility to be installed ! for married \ housing units | \ I It was recommended that the Trustees authorize the installation of a CTV facility covering our married housing units by the National Cable Company which has been authorized for this service by the City of East Lansing. After the installation, the service is to be offered to occupants on an optional contract basis with a $5 installa- tion charge and a $5 per month service charge to be collected directly by the National Cable Company from the users. Approval of the Board of Trustees is required to allow commencement of the construction of the community television system to be available for use in the fall of 1969. This was recommended by Mr. Foster and Mr. Wilkinson. Mr. Hartman moved, seconded by Mr. Huff, that the above recommendation be approved. Carried. Purchase of Ethel Hicks property for $42,000 14. After extensive negotiations, the heirs of Ethel Hicks have agreed to sell the property at 3122 Collins Road for a sales price of $42,000 with the right of possession for one year following the date of closing. It was recommended that the Trustees authorize the completion of this purchase. I Purchase of J.W. and E.M. Osterday prop, for $18,000 15. Arrangements have been completed to purchase the 3.7 acres of land at 4100 Collins Road \ i from Joseph W. and Elsie M. Osterday at a purchase price of $18,000 plus unpaid back taxes. On motion by Mr. Huff, seconded by Mr. Merriman, it was voted to approve the purchase of the Hicks property at 3122 Collins Road and the Osterday property as recommended in items 14 and 15. 16. Communication from Roger Wilkinson: Bids on $2,800,000 hous- ing and refund-j '•_ ing revenue :bonds for iapartments and "Holden Hall rejected \ At the December 1968 Board meeting the Trustees authorized the Ann Arbor Trust Company to proceed in arranging the financing of $2,800,000 housing and refunding revenue bonds. These bonds were to provide the financing of 228 apartments and the unfinanced portion of Holden Hall. It was reported to the Trustees that the interest rate would be approximately to 5-3/4%. These bonds were to be issued on a bid basis, and the Ann Arbor Trust Company was authorized to receive the bids. A committee was established by the Board which consisted of the Chairman of the Board, the President, the Secretary, and the Acting Vice President. On February 6 the following bids were received: Halsey, Stuart & Company First of Michigan (underwriters) Bank of the Commonwealth (underwriters) 6.1118 5.9886 5.9672 Due to the high interest rates, it was the decision of the committee that these bids would be rejected. This was also the advice of the Ann Arbor Trust Company. After discussion, Chairman Stevens suggested that the University be ready to construct additional married student apartments when interest rates are more favorable. Construction commitments reviewed 17. The following communication from Mr. Wilkinson is for information, with discussion and action suggested at the March Trustees meeting: 1 ; ; ; j i j- : It has been the practice to review with the Trustees each spring the construction commitments and, also, to request the necessary funds to complete the financing of our present construction program. This information is outlined as follows: 1. Schedule of funds needed to complete present construction program. a. Plant Research Laboratory No. 2 b. Pesticide Research Laboratory c. Library Addition d. Olin Health Center Addition e. Speech and Hearing Clinic Less, Surplus in construction accounts: a. Baker Hall b. Botany Addition Net cost to complete construction $ 50,000 76,000 20,000 10,000 45,000 $201,000 $ 34,000 £167^000 Total $24,000 10,000 i I Minutes'of the Finance Committee Meeting February 20, 1969 17. Communication from Mr. Wilkinson, continued 2. Schedule of funds needed to finance new construction program: 6351 Construction commitments reviewed a. Wells Hall Addition b. Observatory c. Office of Campus Park and Planning d. Public Safety Building Net cost of new construction $300,000 660,000 150,000 600,000 \ It is recommended that indirect cost revenue available in 1968-69 be allocated to cover item 1 and, to whatever extent possible, item 2 with /the balance to be financed \ j in 1969-70. The estimated revenue available at this time is $1,300,000. In review, the Trustees should be informed that we have previously committed the $1,000,000 allocation of student fees for construction purposes as follows: !• For the 1968-69 fiscal year, $1,000,000 applies to the Kedzie Addition. j \ \ 2. For the 1969-70 fiscal year, $700,000 applies to the Kedzie Addition and $300,000 i I applies to the New Administration Building. We have also committed $685,000 for each of the fiscal years from 1968-69 to 1972-73 for the purchase and operation of the CDC 6500 computer. This commitment is from j indirect cost revenue. Since we have now received a grant to support the purchase of j • the computer, this commitment will be reduced by approximately $1,000,000. j Long-range projects include the Life Science Building for which there-will be a commitment of approximately $2,000,000 and the Animal Care Center which is.also a $2,000,000 project. Another future project is an incinerator for the health and science areas. . 18. A copy of the Ann Arbor Trust Company investment inventory as of December 31, 1968 was distributed to the Trustees. \ ; ] 1 \ I 19. The Trustees were given a communication from the First Federal Savings and Loan Association of Detroit dated January 30 assuring the Trustees that the corporation will not involve itself in any business activities affecting Michigan State University or Oakland University. i Adj ourned. MINUTES OF THE EXECUTIVE SESSIONS of the BOARD OF TRUSTEES February 20 and 21, 1969 Following the Finance Committee meeting on Thursday evening, February 20, the President asked for an executive session of the Board with Secretary Breslin and Attorney Carr attending. All Trustees were present. Discussions pertaining to Pres. Hannah's departure from The substance of the President's remarks centered around his confirmation as Director of the the University Agency for International Development by the Senate and the date of his departure as President of Michigan State University. The President expressed the thought that he should depart the University soon after confirmation by the Senate. He expressed the hope that he \ j may be able to remain on campus through March 30 in an effort to effect an orderly ; transition. . The President recommended that when his retirement becomes effective the Board appoint Provost Neville as Acting President of the University for the interim period pending the appointment of the next president of the University. The President concluded his remarks by saying that in his judgment there are two areas within the University that should not be allowed to lose their, momentum. They are: 1. The involvement of this University in international education, and 2. The University:s efforts and involvement in helping to solve the problems of Black Americans and other minority group people. ********** The Trustees met in executive session at 2:30 p.m. on Friday, February 21, 1969. Present were Trustees Hartman, Huff, Martin, Merriman, Stevens, Thompson, and White; President Hannah, Secretary Breslin, and Attorney Carr. j \ j \ \ ) ; \ Absent: Trustee Nisbet : iTrustees 1. In accordance with action taken at the earlier regular meeting of the Board of Trustees, jSub-committee i I I Chairman Stevens appointed a subcommittee composed of himself, Mr, Hartman, and Mr. Merriman to work with the All-University Committee on Search and Selection for the \work with All- new president. jappointed to jUniversity |Search and I Selection Com. 6352 ^Statement to jBoard by Andy Pyle for "The Movement." Dir. of Inter- collegiate Athletics to report to Secy Breslin during period new president is being selected Minutes of the Executive Session February 21, 1969 \2. Mr. Andy Pyle, a representative of the organizing committee of "The Movement" was allowed to make a statement before the.Trustees. ..The following demands were included in Mr. PyleTs statement: a. We demand that Professor Garskof be rehired with tenure and full privileges as a professor, including the right to conduct classes his own way. b. We demand that the University institute a policy of open admissions for black, Third Worldy and white working class people. 3. Chairman Stevens introduced the subject of his concern relative to the potential problems that might occur this spring with black students, and specifically the black athletes. He indicated that he felt this was a very sensitive area. It was moved by Mr. Merriman, seconded by Mr. Huff, that after the departure of President Hannah and during the period that the new president is being selected, Director of Athletics Munn report to Secretary Breslin concerning all matters dealing with Inter- collegiate Athletics. Unanimously carried. 4. It was suggested that Secretary Breslin work out the best possible dates for the May Board meeting which will be held at Gull Lake. The three suggested dates were: May 14, 15, 16 May 15, 16, 17 May 16, 17, 18 Adjourned. MINUTES OF THE SPECIAL SESSIONS of the BOARD OF TRUSTEES February 21 and 22, 1969 with The Trustees met at 8 a.m. on February 21 at Kellogg Center. Academic Council Ad Hoc Com. on Present: Procedures for r Selecting Chief j Academic Officers of University ; Messrs. Hartman, Huff, Martin, Merriman, Nisbet, Stevens, Thompson, and White; President Hannah, Provost Neville, Acting Vice President Wilkinson, Chancellor Varner, Attorney Carr, Secretary Breslin. Members of the Academic Council Ad Hoc Committee on Procedures for Selecting Chief Academic Officers of the University: John F. A. Taylor, Chairman, Arthur Adams, H. John Carew, R. L. Featherstone, C. C. Killingsworth, Donald J. Montgomery; Dale E. Hathaway, Chairman of the Academic Council Steering Committee. I This meeting was called to discuss the proposed recommendations of the Ad Hoc Committee prior to presentation of the Committee's report to the Academic Council at a special meeting I of the Council on Tuesday, February 25. The meeting adjourned at 10 a.m. with plans to meet again following the regular Trustees1 meeting to continue this discussion. With the exception of Mr. Nisbet, all Trustees, Secretary Breslin and Attorney Carr met with the Ad Hoc Committee following the executive session of the Trustees on Friday afternoon, February 21. This meeting adjourned at 6 p.m. to meet again at 8 a.m. on Saturday, February 22. ********** Present at 8 a.m. on February 22 were: Trustees Hartman, Huff, Stevens, and Thompson; ; Attorney Carr, Secretary Breslin, all members of the Ad Hoc Committee except Mr. Killingsworth. The Trustees and the Ad Hoc Committee of the Academic Council continued their discussion relative to the procedures for the selection of the new president. The proposals as originally submitted by the Ad Hoc faculty committee as amended were finally agreed to \ unanimously. Adjourned at 10:25 a.m. l