MINUTES OF THE INFORMAL MEETING of the MICHIGAN STATE UNIVERSITY BOARD OF TRUSTEES September 14, 1972 Present: President Wharton, Trustees Carrigan, Hartman, Huff, Martin, Stevens, and Thompson; Provost Cantlon, Executive Vice President and Secretary Breslin, Vice Presidents Muelder, Nonnamaker, Scott, and Wilkinson, Messrs. Ballard3 Carr, and Wilkie. Absent: Trustees Merriman and White. President Wharton opened the Informal Meeting of the Board of Trustees at 7:25 p.m. and announced that there would be two presentations before the Board. The first would deal with the activities of the MSU Counseling Center, and the second would, be concerned with the new Student Employment Office recently opened by the University. Presentation re Counseling Center Vice President Nonnamaker introduced Dr. Rowland R. Pierson, Director of the MSU Counseling Center, for a presentation on the Center's programs. Assisting Dr. Pierson were: Drs. Norman Abeles, Arnold S. Berkman, Ralph E. Kron, Gwendolyn Norrell, Gloria Smith, and Cecil L. Williams. Dr. Pierson defined the basic functions of the Counseling Center as providing counseling and testing services to MSU students and training graduate students in the field of counseling. He reviewed briefly the history of the Center. He mentioned that the first step in decentralizing the Center was made In 1964 with the establishment of one branch office. Currently, the Center operates five branch centers to serve students throughout the campus, the newest located in married housing. Dr. Abeles reported that the Center provides three types of counseling services to students: preventive counseling, exploratory counseling, and remedial counseling. He added that the Center's staff sincerely feels that counseling is teaching in the highest form. Dr. Williams discussed the Center's activities in the residence halls as having developed from including counseling In the "living-learning" concept established by MSU several years ago. In addition to working with students in the large residence hall complexes, the counseling branch offices also provide help to resident advisers (RA's) in their work with students. Dr. Williams added that practically every residence hall on campus has a liaison person assigned from the Counseling Center to serve as a link through which services can be provided. The Center's representatives also discussed the training activities of the Center in working with graduate students interested in counseling careers. The Counseling Center operates practicum programs for about 40 graduate students a year which include courses taught by the Center's staff for credit in psychology or education. Practicum students also see selected students at the Center to help them gain counseling experience. Last year, 13 staff members served on 73 doctoral and masters guidance committees. The Center also provides 16 half-time internships for MSU graduate students only. Last year there were 43 applications for the 16 spaces. Dr. Kron reported on the research activities of the Center. He maintained that it is highly important that the Center document and evaluate its counseling and testing programs, He discussed the various categories of research undertaken. He added that hopefully research will be conducted to better understand why some students don't use the services of the Center. In answer to questions by th£ Trustees, the Counseling Center representatives discussed the Center's role in working in suicide intervention and drug abuse. They added that the Center generally recommends, and students seem to prefer, taking drug abuse problems to the several off-campus centers operated by the greater Lansing community* A brief discussion centered around the differences between the activities of the Counseling Center and academic advising by faculty. There was general agreement that counseling and advising work together in helping students in their academic programs. Dr. Norrell pointed out that while the Center's main thrust is in working with students, a self-supporting counseling program for adults is operated for the MSU Continuing Education Service. Presentation re new student employment program Executive Vice President Breslin introduced John D. Shingleton, Director of the MSU Placement Bureau, for a presentation on the new student employment program. Mr. Shingleton reviewed the events leading up to the establishment of a Student Employment Office. The first step was the formation of a special committee named by President Wharton. The committee reviewed the present practice of student employment on campus. Generally, the committee found the following problems: inequities in pay rates for students; no common job classification system for students; no job descriptions for student jobs; students experienced great difficulty in locating job openings on campus; no grievance procedures existed for students with problems of job inequities; no campuswide coordina tion of work-study jobs; and no central location on campus of data on student employees. As the result of the committee's work, the University recently established a job classification system for students; a rate structure; policies and procedures for MSU departments in hiring student employees; an audit system for better control of student employment on campus; a more adequate referral system for campus jobs; and work is underway to develop a more active program for locating off-campus and summer jobs for students. 7545 Minutes of the Informal Meeting, continued September 14, 1972 ; Mr. Shingleton reported there are usually about 7,000 campus jobs for students during any ! given year. Of these, first priority goes to those some 2,400 students qualifying for work-study jobs. Second priority is given to those merit scholars who desire campus jobs. He added that even by handling these two groups first, there still are quite a few campus jobs left for other students. As of this month, the Placement Bureau has opened a new Student Employment Office in the old Stefanoff Lounge in the Student Services Building as the University's first effort in centralizing student employment on campus. The office will work closely with the MSU Personnel Office and other University units involved in hiring students. \ j ! j j j President Wharton added that the new office is bound to encounter some difficulties in \ its first year. He maintained that the new office is an important underpinning for MSU?s j efforts to help students find needed employment in order to stay in school. He pointed I out that as the cost of higher education goes up, there will be greater demand for financial assistance through campus jobs. j President Wharton adjourned the Informal Meeting at 9:10 p.m. MINUTES OF THE MEETING of the MICHIGAN STATE UNIVERSITY FINANCE COMMITTEE September 15, 1972 , President Wharton called the Finance Committee meeting to order at 7:35 a. m. The following members were present: Trustees Carrigan, Hartman, Huff, Martin, Merriman, | Stevens, and Thompson; President Wharton, Executive Vice President and Secretary Breslin, ! Provost CantIon, Vice Presidents Nonnamaker, Scott, and Wilkinson, Assistant to the President Ballard, Attorney Carr. Absent: Trustee White. 1. The Investment Committee met and approved the following recommendations as submitted j Investment by Scudder, Stevens & Clark. Trustees Martin, Thompson, and Carrigan concurred in the acceptance of these recommendations. [Recommendations | Forest Akers Fund Amount Security Recommend selling: 425 Texaco Recommend purchasing: Approx. Price Principal Income Yield $ 31 $ 13,175 $ 705 5.35% 205 Standard Oil of California 63 12,915 594 4.60% Albert Case Fund . Recommend selling: 2,078 Texaco Recommend purchasing: 31 64,418 3,449 5.35% 1,020 . Standard Oil of California 63 64,260 2,958 4.60% A. V. Case-Memorial Scholarship Fund Recommend selling: 745 Texaco Recommend purchasing: 31 23,095 1,236 5.35% 360 Standard Oil of California 63 22,680 1,044 4.60% Harry Conrad Fund Recommend selling: 196 Texaco Recommend purchasing: 31 6,076 325 5.35% 95 Standard Oil of California 63 5,985 275 4.60% Consolidated Investment Fund Recommend selling: 3,175 Texaco Recommend purchasing: 31 98,425 5,270 5.35% 1,560 Standard Oil of California 63 98,280 4,524 4.60% mm Finance Committee Minutes, continued September 15, 1972 Investment Recommendations 1; Investment Transactions, continued Damm & Whalen Scholarship Fund Amount Security Recommend selling: 646 Texaco Recommend purchasing: Approx. Price Principal Income Yield $ 31 $ 20,026 $1,072 5.35% 310 Standard Oil of California 63 19,530 899 4.60% Jack B. Fields Memorial Fund Recommend selling: 115 Texaco Recommend purchasing: 31 3,565 191 5.35% 55 Standard Oil of California 63 3,465 159 4.60% John A. Hannah Professorship Fund Recommend selling: 2,480 Texaco Recommend purchasing: 31 76,880 4,116 5.35% 1,220 Standard Oil of California 63 76,860 3,538 4.60% LaVerne Noyes Scholarship Fund Recommend selling: 106 Texaco Recommend purchasing: 31 3,286 175 5.35% 50 Standard Oil of California 63 3,150 145 4.60% H. W. Klare & E. A. Klare Trust Fund Recommend selling: 830 Texaco Recommend purchasing: 31 25,730 1,377 5.35% 405 Standard Oil of California 63 25,515 1,174 4.60% Drury L. Porter Fund Recommend selling: Texaco Recommend purchasing: 31 2,790 149 5.35% Standard Oil of California 63 2,520 116 4.60% 90 40 Retirement Fund Recommend selling: 18,345 Texaco Recommend purchasing: 31 568,695 30,452 5.35% 9,020 Standard Oil of California 63 568,260 26,158 4.60% Fred T. Russ Fund Recommend selling: 230 Texaco Recommend purchasing: 31 7,130 381 5.35% 110 Standard Oil of California 63 6,930 319 4.60% F. A. & E. G. Simonsen Scholarship Fund Recommend selling: 314 Texaco Recommend purchasing: 31 9,734 521 5.35% 150 Standard Oil of California 63 9,450 435 4.60% Skinner Fund Recommend selling: 290 Texaco Recommend purchasing: 31 8,990 481 5.35% 140 Standard Oil of California 63 8,820 406 4.60% • i I I I Finance Committee Minutes, continued September 15, 1972 W&$: I Investment \ Re commend at 1 oris ' • ' •' ' ' ' • 2 Report by Detroit Bank & Trust Co. re Fee Trusts investments 1. Investment Transactions , continued Spartan Fund Amount Security Recommend selling: 277 Texaco Recommend purchasing: Approx. Price Principal Income Yield $ 31 $ 8,587 $ 460 5.35% 135 Standard Oil of California 63 8,505 391 4.60% White Motor Company Fund Recommend selling: 270 Texaco Recommend purchasing: 31 8,370 448 5.35% 130 Standard Oil of California 63 8,190 377 4/60% Ivan Wright Fund Recommend selling: 115 Texaco Recommend purchasing: 31 3,565 190 5.35% 55 Standard Oil of California 63 3,465 159 4.60% RESOLVED that the investment recommendations submitted by Scudder, Stevens & Clark and approved by the Investment Committee be approved. Motion to approve the above resolution was made by Trustee Carrigan, seconded by Trustee Thompson, and carried by a vote of 6 to 1. Trustee Huff voted "No" because he felt it unwise to trade Texaco stock for Standard Oil of California stock. 2. The Detroit Bank & Trust Co. has completed the following investment transactions for the appropriate Fee Trusts. Harry A. Fee Trust Trust No. 21169 (The Board of Trustees must approve sales for this trust.) Now Hold Sell Approx. Market Approx. Market Ledger Annual Value Income Value Est. 1,500 1,500 McGraw-Edison Co., common $ 42 $63,000 $30,236 $2,100 Buy -0- $35,000 par Georgia Pacific Corp. conv. sub deb 5¾% due 4-1-96 -0- $25,000 par Ramada Inns Inc., conv. sub deb 5% due 10-1-96 87 30,450 126 31,500 1,837 1,250 $61^950 ^3^087 Jesse T. Fee Trust Trust No. 22323 (The Detroit Bank & Trust Co. has sole investment authority" for this trust; this is being presented to the Board for information purposes only.) N0W Hold Sell Approx. Est. Approx. Market Ledger Annual Value Income Market Value n 1,000 1,000 shs. Stanley Works, common common 600 shs. Owen Illinois Inc. common 250 shs. Sterling Drug Inc., common 600 1,050 $ 46 43 34 $100,000 $53,000 Commercial Paper available, for investment $31 28 $46. 25 8 ,000 ,800 ,500 $ 800 840 138 $80,300 $59,658 $1,778 ,085 ,018 555 53,000 2,600 $133^300 $59^658 $4A378 I I ^B' ^S: Finance Committee Minutes, continued September 15, 1972 Fee Trusts Investments Investment Trusts, continued Jessie T. Fee Trust, continued Trust No. 22323, continued Buy Approx. Market Approx. Market Value Ledger Value $30,000 Ramada Inns Inc., 5% conv. $ 126 $ 126 deb due 10-1-96 2,000 shs. New England Gas & Electric 17 common- $37,800 34,00.0 2,440 Est. Annual Income $1,500 Preliminary 1973-74 budget request presented Report re filling of Hannah Chairs Resolution re MSU Office !Building (Manly Miles i Annex) 400 shs. Dun & Bradstreet Inc., 76 30,400 common 800 shs. Genuine Parts Corp., common L 38 30,400 660 360 $132,600 $4,960 RESOLVED that the sales be approved as noted and that this report be accepted by the Board of Trustees. Unanimously approved. Motion by Trustee Thompson, seconded by Trustee Stevens. 3. Vice President Wilkinson presented the preliminary 1973-74 budget request. The request received general approval and was acted upon in the open Board meeting which followed. Trustee Merriman asked for a progress report on the Hannah chairs and was informed by Provost Cantlon that one of the chairs is expected to be filled very soon and considerable progress has been made by several departments in identifying recipients of the professorships. 4. Vice President Wilkinson recommended approval of the following resolution: WHEREAS the Board of Trustees, in the exercise of its constitutional duties has determined that it is necessary to construct an office building for the purpose of providing office space for University-related functions; and WHEREAS the Board, on January 21, 1972, authorized the construction of this building at a cost not to exceed two million dollars (2,000,000); and WHEREAS the Board has determined to borrow by means of internal financing, the sum of one million, eight hundred and sixty thousand dollars ($1,860,000) for the purpose of providing funds to pay the costs of construction of the office facility; therefore BE IT RESOLVED that the officers of the University be authorized to borrow, by means of an internal loan, the sum of one million, eight hundred and sixty thousand dollars ($1,860,000) for1the purpose of providing funds to pay the costs of construction of the office building. Interest is to be at 6% per annum, and the term is to be not more than ten (10) years. Further, the Board pledges the net income received by rental of space in the new facility, plus the net income received by rental of space in the Manly Miles Building, as revenue for repayment of such loan. The first annual payment will be due one year from the date of the initial tenant occupancy. Proposed Articles of Incorporation for MSU Foundation distributed Resolution unanimously approved. Motion by Trustee Huff, seconded by Trustee Carrigan. 5. Vice President Scott distributed the proposed Articles of Incorporation for the MSU Foundation. In response to Trustee Huff!s questions regarding control of the Foundation, President Wharton pointed out that the Board could exercise control by its six members preventing action and through non-acceptance of funds; i.e., a build-up of non-accepted funds would make the Foundation inoperative. President Wharton also indicated the Trustees would be furnished the names of the candidates (other than the 3 from the Board of Trustees and 3 from the administration) for the remaining 6 directorships of the Foundation. Report re re examination of Univ. College Specialists f salaries 6. In response to a suggestion made at the July Board meeting, the salaries for the University College Specialists category were reexamined. Provost Cantlon explained that the additional $250 salary increments recommended for the 24 Specialists (as listed under Salary Changes in the agenda for the open Board meeting) would make these salaries equitable with other departments in University College. Finance Committee Minutes, continued September 15, 1972 7.:- President Wharton and Executive Vice President Breslin reported that no significant progress had been made in contract negotiations with Locals 1585 and 999. There now seems to be a greater degree of uncertainty as to whether these locals will go on strike, 8. The Cooperative Extension Service Budget for the 1972-73 fiscal year shows that from federal sources the Nutrition-Education allocation is $1,645,669. Final accounting indicates that the appropriation will now be $1,672,017. It was requested by the Extension program that this additional $26,348 be allocated to account 71-7201 for the Nutrition-Education Program. RESOLVED that the foregoing budget allocation request by the Cooperative Extension Service be approved. Unanimously approved. Motion by Trustee Thompson, seconded by Trustee Hartman. ]Report re {contract |negotiations 1 with Locals j1585 and 99 •j App allocation i of Nutrition- jEducation sur- jplus to Nutri- jtion-Education i Program 9. Vice President Wilkinson and Mr. William Broucek of the Ann Arbor Trust Co. presented the Official Statement and Resolution relating to the financing of the proposed Ice Arena. Vice President Wilkinson also informed the Trustees that an interest rate of 5-3/4% was anticipated and that bids for the construction of this facility would be submitted for consideration at the October Board meeting. The student football ticket charge is the "special fee" referred to in the Official Statement. Official State ment and Resolution re I Ice Arena (approved On motion by Trustee Carrigan, seconded by Trustee Hartman, it was unanimously voted to approve the Official Statement and Resolution for the financing of the Ice Arena. Copy of the Official Statement is filed in the Secretary's Office and the Resolution is as follows: RESOLUTION OF THE BOARD OF TRUSTEES OF MICHIGAN STATE UNIVERSITY PROVIDING FOR THE CONSTRUCTING, FURNISHING AND EQUIPPING OF A NEW ICE ARENA: AUTHORIZING AND APPROVING AN OFFICIAL STATEMENT AND NOTICE OF SALE FOR THE BONDS TO BE ISSUED TO PAY PART OF THE COST THEREOF: AND FIXING A DATE OF SALE FOR SAID BONDS. ' WHEREAS, in order to properly serve the needs of students attending Michigan State University (the "University11), it is necessary and advisable that there be constructed, furnished and equipped a new ice arena on the campus of Michigan State University, East Lansing, Michigan, having a seating capacity of 7,500 and containing approximately 113,000 square feet as a two-level structure with the ice sheet and locker rooms on the lower level and the seating, concessions, and concourse on the upper level (the ;"Project11), in accordance with plans and specifications prepared by Daverman Associates, architects of Grand Rapids, Michigan; and WHEREAS, the estimated cost of the Project, including funds for a debt service reserve, has been determined to be Four Million Nine Hundred Thousand ($4,900,000.00) Dollars; and WHEREAS, to provide funds necessary to pay part of the cost of constructing, furnishing and equipping the Project, including funds for a debt service reserve, the Board of Trustees of Michigan State University (the "Board"), deems it necessary and advisable to borrow the sum of Three Million Six Hundred Thousand ($3,600,000.00) Dollars, and In evidence thereof issue its negotiable bonds (the "Bonds"), secured by and paybale out of fees collected each term from students attending the University; and WHEFJEAS, the Board under the provisions of Section 6, Article VIII, of the Michigan Constitution of 1963, has full power under its constitutional authority and supervision of the University and control and direction of expenditures from the University funds to acquire and construct the Project, to issue and sell the Bonds, and pledge student fees for their payment; and WHEREAS, it is necessary to approve the Official Statement and the Notice of Sale for the Bonds and to fix a date for public sale of the Bonds; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF MICHIGAN STATE UNIVERSITY, as follows: 1. That the Bonds shall be sold at public sale on October 19, 1972, and the Vice President for Business and Finance is authorized to open, examine and audit the proposals for the purchase of the Bonds and to submit the proposals to the Board for action at the meeting of the Board to be held on October 20, 1972. 2. That the Official Statement for the Bonds is hereby approved and the Vice President for Business and Finance is hereby authorized and directed to cause the Official Statement to be distributed. 3. That the Notice of Sale for the Bonds is hereby approved and the Vice President for Business and Finance is authorized to cause said Notice of Sale to be published in the Bond Buyer, New York, New York, in sufficient time to adequately notify interested persons of the proposed sale. 7SB0 Approval first entry for funding of new retirement program Finance Committee Minutes , continued September 15, 1972 j10. At the June 23, 1972 meeting of the Board of Trustees, the funding of the new 1 j s retirement program relating to the dormitory and food service operation was approved by the Trustees with the understanding that periodic reports would be made to the Trustees relating to this matter. Audit report for fiscal year ending June 20, 1972 accepted ! j j It was reported to the Trustees that the first entry to commence to fund this program was recorded as of June 30, 1972 and reflected in the year-end financial statements. The funding entry was as follows: An allocation of $178,600 was made from the Reserve from Unobligated Bonded Appropriations, a contribution of $269,200 of the net income from certain apartments pledged to fund the retirement program, and $570,200 from the Reserve for Auxiliary Enterprises. Resolved that the above report be accepted. j Unanimously accepted. Motion by Trustee Hartman, supported by Trustee Carrigan. ill. Representatives from Ernst & Ernst made their presentation concerning the financial \ examination of the University records as of June 30, 1972. The Trustee Audit Committee, consisting of Trustees Hartman and Thompson, met on August 30 with Mr. Kenneth Bucknell and Mr. Roger Schwartz, representatives from Ernst & Ernst, to review the financial examination of the University records as of June 30, 1972. Also in attendance at this meeting were representatives from the administration including Vice President Wilkinson, Director of Internal Audit Robert Wenner, and Director of Financial Analysis Jonas Cook. The Ernst & Ernst report included a review of the internal control procedures of the University, a review of the financial statements as of June 30, 1972, and a discussion of the management letter submitted to Vice President Wilkinson. A thorough discussion concerning financial matters took place, and the Audit Committee requested that Vice President Wilkinson submit a report to the total Board that this meeting was held and that the report of the auditors was accepted. I RESOLVED that the Audit Committee report be accepted and the financial report submitted by Ernst & Ernst for the fiscal year ending June 30, 1972 be accepted. IUnanimously approved. Motion by Trustee Huff, seconded by Trustee Merriman. ;12. Progress Reports and Announcements Trustees-East Lansing City Council meetings set for Oct. 20,^ 1972 and Apr 20J I 1973 Change in Board Bylaws discussed Expected enrollments for\ fall term 1972 I Report re federal funding of financial aids Faculty col- I lective bargain-- ing vote set j for Oct. 23,1972 CT hearing with \ MERC set for • Sept, 20,1972 Continuation of j Grand Rapids Womenfs. Ctr. to j be investigated \ a. President Wharton announced that arrangements will be made for the Trustees to meet for luncheon with the East Lansing City Council on October 20 and again on April 20, 1973. b. President Wharton suggested that the Trustees might wish to give some thought to changing the Board Bylaws to provide for a meeting of the Trustees in August and the elimination of the December meeting. Brief discussion followed but no action was taken. c. Provost Cantlon announced that enrollments for fall term 1972 are expected to be close to predictions. Following a national trend, graduate enrollments will be down. Total on-campus enrollment is expected to be approximately 41,390. d. In view of an anticipated reduction of Federal funding of financial aids for 1972-73, the Trustees on April 21, 1972 approved financial aids packaging at last year's levels. Vice President Nonnamaker distributed a memorandum showing levels which were set for Educational Opportunity grants, Work-Study, and National Direct Student Loans, and the Federal awards actually made for these three categories, Dr. Nonnamaker also distributed and discussed a memo giving the packaging guidelines used in awarding financial aid for 1972-73. Copies of these memoranda are filed in the Secretaryfs. Office. e. President Wharton announced that the faculty will vote on collective bargaining on October 23, 1972, and the Clerical-Technical employees will have their hearing with MERC on September 20. f. Provost Cantlon reported that Continuing Education Director Armand Hunter plans to investigate Mrs. Levin1s report that the University of Michigan and Western Michigan University may be interested in a cooperative arrangement for the continuation of the Women's Center in Grand Rapids. Because the Center has not been self-sustaining, its formal operation has been discontinued. | Administration l authorized to | choose most [ appropriate of i 3 options for j lake develop- | ment portion of Water Quality Improvement | project Finance Committee Minutes, continued September 15, 1972 12. Progress Reports and Announcements, continued g- Vice President Muelder reported developments in the application for the funding of the Waste Water Control project. A new application has been submitted to the Chicago Office of the Environmental Protection Agency. September 22 is the last day for delivery by EPA of an acceptance ax^ard, and September 25 is the deadline for acknowledging the award. The following low bids were received on May 25 by the City of East Lansing: Contract I - Transmission line Mid-West Contracting, Inc. Contract II - Lake Development Chris Nelson & Son, Inc. Contract I'll - Irrigation Piping Eisenhour Construction Co. All bids for Contract II were: Chris Nelson & Son F. J. Siller & Co. Eisenhour Construction Co. Brown Brothers, Inc. $352,683..60 $996,564.00 $162,455.80 $996,564.00 $1,281,224.00 $1,444,706.00 $1,465,288.00 Chris Nelson refused to accept a contract presented to. him on August 23 because an error had been made by his earth moving subcontractor. In a letter dated September 6, the Nelson firm requested an additional $84,125 indicating for that additional amount he would sign a contract. He further asked for a time extension to complete by August 1, 1973. Because the time for acknowledging the award is so limited, the administration requested authorization from the Trustees to proceed with the most advantageous of the four-following options: 1. Give Chris Nelson a contract and increase his price to include the $84,125. 2. Go to the second low bidder. 3. Rebid the entire Lake Development package as a package. 4. Rebid the work in smaller units. - Motion was made by Trustee Stevens, seconded by Trustee Thompson, to authorize -the administration to utilize whichever option from Nos. 2, 3, or 4 is most appropriate. Unanimously carried. Meeting adjourned at 10:17 a.m.