MINUTES OF THE SPECIAL MEETING OF THE FINANCE COMMITTEE August 22, 1973 President Wharton called the Finance Committee meeting to order at 7:05 p.m. The following members were present: Trustees Carrigan, Huff, Martin, Merriman, Radcliffe, Stack, Stevens, and Thompson; President Wharton, Executive Vice President and Secretary Breslin, Vice President Wilkinson, Provost Cantlon, Vice Presidents Muelder, Nonnamaker, Perrin, and Scott, Assistants to the President Ballard and Turk, Attorney Carr. 1. Vice President Wilkinson introduced Mr. William Broucek, Senior Vice President of the Ann Arbor Trust Co., who presented the resolution and official statement covering the funding and fiscal arrangements for the guaranteed student loan program. The resolu- tion follows and the official statement is filed in the Secretary!s Office. Resolution re Guaranteed Student Loan Program approved 1 RESOLUTION OF THE BOARD OF TRUSTEES OF MICHIGAN STATE UNIVERSITY APPROVING DRAFT OF OFFICIAL STATEMENT RELATING TO GUARANTEED STUDENT LOAN FINANCING AND COMMITMENTS FOR THE PURCHASE THEREOF, WHEREAS, the Board of Trustees (the "Board11) of Michigan State University (the "University"), a body corporate, created by and existing under the Constitution of the State of Michigan and having full constitutional authority over and general supervision of the University and the control and direction of all expenditures of University funds in the exercise of its constitutional duties has determined that it is necessary and for the best interests of the University and its students that it make loans to stu- dents attending the University under the United States of America, Department of Health, Education and Welfare (the "HEW"), Guaranteed Student Loan Program; and WHEREAS, in the opinion of the Board it is necessary and expedient in order to provide the funds necessary to make said loans that the Board borrow the sum of not to exceed Two Million ($2,000,000.00) Dollars and in evidence thereof issue its notes or other obligations secured by and payable as to principal and interest out of the repay- j ment of said student loans, including as a part thereof interest subsidies with respect thereto to be received from HEW, with the principal of said student loans guaranteed by the Michigan Department of Education; and WHEREAS, there has been prepared and submitted to this Board a draft of an official statement relating to said Guaranteed Student Loan financing, which draft is oil file in the office of the Secretary of the Board of Trustees and made a part hereof; and WHEREAS, there has been submitted to this Board certain commitments to make the necessary loans to the University: NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF MICHIGAN STATE UNIVERSITY THAT: - 1. The Board does hereby determine it necessary and for the best interests of the University and its students that it make loans to students attending the University under the HEW Guaranteed Student Loan Program in the manner and generally subject to the terms and conditions described in said official statement. 2. The Vice President for Business and Finance of the University, the Ann Arbor Trust Company, of Ann Arbor, Michigan, and bond counsel, are hereby authorized and directed to prepare a final official statement, such term loan agreements or other security instruments and such resolutions as may be necessary in order to permit the University to borrow the funds as described in said preliminary official statement. 3. The commitments of the National Bank of Detroit, Detroit, Michigan, and The Detroit Bank and Trust Company, Detroit, Michigan, to make the loans to the University, on file in the Secretary's Office, are hereby approved, RESOLVED that the resolution and official statement as submitted be adopted. Unanimously approved. Motion by Trustee Carrigan, seconded by Trustee Thompson. 2. Executive Vice President Breslin recommended approval of contract agreements with AFSCME Locals 1585 and 999. Also, since the July 20 Board meeting when the contract with Operating Engineers Local 547 was approved, an additional six months on their contract at a wage increase of 2.75% for the period July 1, 1975 to December 15, 1975 had been negotiated and it was recommended that this additional six months be approved. RESOLVED that the contract agreements with Locals 1585 and 999 and the change in the contract with Local 547 be approved. Resolution approved by a vote of 7 to 0 on Trustee Thompson's motion, seconded by Trustee Stack. Trustee Stevens abstained. I Contracts with Locals 1585 and 999 and changes in Local 547 contract approved i i Procedure for selection of broker and submission of competitive bids for lia- bility insur- ance approved Minutes of the Special Finance. Committee ^"Meeting, continued August 22, 1973 3. The University's liability insurance program, which includes general liability, auto- motive liability, and the professional malpractice coverage, will expire November 20, 1973. A memorandum broker and the submission of competitive bids to provide for the continuation of the liability insurance program was distributed to the Trustees. A copy is also on file in the Secretary's Office and made a part of these minutes. outlining procedures to be followed in the selection of an agent or Motion was made by Trustee Thompson, seconded by Trustee Radcliffe, to approve the procedure for the selection of an agent or broker and the submission of competitive bids for the liability insurance program. Unanimously approved. Meeting adjourned at 7:41 p.m., when the Trustees and President Wharton met in Executive Session. MINUTES OF THE SPECIAL MEETING of the BOARD OF TRUSTEES August 22, 1973 Present: Trustees Carrigan, Huff, Martin, Me r rim an, Radcliffe, Stack, Stevens, and Thompson; President Wharton, Executive Vice President and Secretary Breslin, Vice President Wilkinson, Provost Cantlon, Vice Presidents Muelder, Nonnamaker, Perrin, and Scott, Assistant to the President Ballard, Attorney Carr. ;The Board convened in the Lincoln Room, Kellogg Center, at 8:30 p.m. - President Wharton presiding. Motion was made by Trustee Radcliffe, seconded by Trustee Thompson, to adopt the agenda. jUnanimously carried. 1973-74 Budgets 11. 1973-74 Budgets and Fees approved \ A. Following an opening statement by President Wharton in which he gave background informa- tion on the preparation of the budget, the following 1973-74 budgets were presented by Vice President Wilkinson and Provost Cantlon. (1) UNIVERSITY GENERAL Estimated Revenue Estimated Expenditures Student Fees State Appropriation Federal Funds: Morrill-Nelson Other Income: $ 31,450,900 77,325,100 250,000 Salaries Labor Supplies 6c Equipment Services $79,885,245 9,633,156 24,251,873 2,035,726 $ 325,000 Application Fees 1,200,000 Departmental Receipts Interest Income 905,000 Recovery on Research Contracts 3,650,000 Equity 6,080,000 700,000 (2) AGRICULTURAL EXPERIMENT STATION Estimated Revenue Federal Grants: Hatch (Requires matching) Hatch R.R.F.(Requires matching) Mclntire-Stennis $1,496,516 281,554 (Requires matching) State Appropriations: Regular State Field Crop Research: 53,146 $ 1,831,216 5,172,000 Bean and Beet Soft White Winter Wheat Sod Production Horticulture Crop Research: Vegetable and Fruit Mechanization of Harvesting Extending Peach Tree Life Weather Adaptability Livestock Research: Mastitis Beef Cattle Forage Cattle & Swine Infertility Calf Mortality Pollution Control Pest Control: Pesticide Research Control of Fruit Pests Highway Trees Rural & Community Dev. 80,000 75,000 50,000 110,000 40,000 24,000 36,000 25,000 75,000 75,000 50,000 140,300 500,000 60,000 10,000 38,000 $ $ 6,560,300 8,391,516 Estimated Expenditures $5,132,384 Salaries Fringe Benefits Project E 760,000 $ 5,892,384 2,499,132 I • Minutes of the Special Meeting, continued August 22, 1973 1. 1973-74 Budgets and Fees- continued A. Budgets, continued (3) COOPERATIVE EXTENSION SERVICE Estimated Revenue 1973-74 budget, cont • Estimated Expenditures Salaries $8,838,800 Federal: Smith-Lever Amended (Requires matching) AMA Federal (Requires matching) Nutrition Education Rural Development State Appropriations County Grants $3,431,718 " .r Fringe Benefits 920,000 $9,758,80q Travel & Maintenance 1,198,652) 128,711 1,481,083 42,740 $5,084,252 5,697,000 176,200 $10,957,452 (4) INTERCOLLEGIATE ATHLETICS Authorized Expenditures $ 2,292,357; RESOLVED that the 1973-74 General Fund, Agricultural Experiment Station, Cooperative Extension Service, and Athletic budgets be approved as submitted. Approved by a vote of 7 to 1, Trustee Huff voting "No."Motion by Trustee Merriman, seconded by Trustee Carrigan. B. Student Fees Vice President Wilkinson recommended that, effective fall term 1973, the following fee schedule be adopted: Student Fees eff fall term 1973 approved Resident, undergraduate Resident, graduate Non-resident, undergraduate Non-resident, graduate Off-campus credit Per Credit Hour Proposed Current $16 17 36 37 24 $15 16 34 35 23 RESOLVED that the recommended fee schedule, to be effective fall term 1973, be approved. Approved by a vote of 7 to 1, Trustee Huff voting "No." Motion by Trustee Thompson, seconded by Trustee Carrigan. C. Faculty Salaries Provost Cantlon recommended that faculty salaries, as shown on the lists submitted to the Trustees, be approved. RESOLVED that the faculty salaries, to be effective July 1, 1973 unless : otherwise noted, be approved as recommended. Changes in University Officers1 salaries are included in this resolution. Unanimously approved. Motion by Trustee Stevens, seconded by Trustee Radcliffe. D. Administrative-Professional Salaries Executive Vice President Breslin recommended that Administrative-Professional salaries, as shown on the list submitted to the Trustees, be approved, effective July 1, 1973. RESOLVED that the Administrative-Professional salaries, to be effective July 1, 1973, be approved as recommended. Unanimously approved. Motion by Trustee Carrigan, seconded by Trustee Thompson. Faculty salaries- eff July 1, 1973 approved A-P salaries eff July 1, 1973 approved I 1 I Minutes of the Special Meeting, continued August 22, 1973 1. 1973-74 Budgets and Fees, continued E. Wage Schedules Effective July 1, 1973 Hourly wage schedules eff July 1, 1973 approved Executive Vice President Breslin recommended that the following salary schedules be approved. CLERICAL-TECHNICAL SCHEDULE OF CLASSIFIED SALARY RANGES BY GRADES Effective July 1, 1973 Grade I II III IV V VI VII VIII IX X XI XII Salary Grade 7 8 9 10 11 12 13 14 15 16 17 18 19 Annual Salary Minimum $ 5,618 5,766 5,842 6,079 6,643 6,822 7,060 7 921 8,887 9,511 10,210 10,834 Maximum $ 6,552 6,807 6,956 7,342 7,832 8,531 8,768 10,151 11,086 11,816 12,439 13,361 SCHEDULE OF HOURLY (NON-UNION) RANGES Effective July 1, 1973 Hourly Range Minimum $ 2.70 2.78 2.81 2.93 3.19 3.28 3.39 3.81 4.27 4.58 4.91 5.20 5.29 ADMINISTRATION-PROFESSIONAL SALARY SCHEDULE Effective July 1, 1973 Minimum $ 8,100 8,700 9,500 10,300 11,200 12,200 13,300 14,400 15,600 17,000 18,500 20,100 21,800 Maximum $ 3.15 3.28 3.34 3.53 3.76 4.10 4.22 4.88 5.33 5.68 5.98 6.42 6.95 Maximum $11,300 12,300 13,300 14,500 15,700 17,100 18,600 20,200 22,000 23,800 25,900 28,100 30,600 a RESOLVED that the wage schedules, to be effective July 1, 1973, be approved as recommended. Unanimously approved. Motion by Trustee Thompson, seconded by Trustee Martin. Graduate and Undergraduate Assistant Stipends Provost Cantlon recommended that the following Graduate and Undergraduate Assistant stipends be approved. GRADUATE ASSISTANT STIPENDS Effective Fall Term 1973 Graduate and Undergraduate Assistant Stipends eff. fall term 1973 approved Level I 1/4-time 1/2-time 3/4-time Level II 1/4-time 1/2-time 3/4-time Senior Level 1/4-time 1/2-time 3/4-time Nine Months $1500 - 3000 - 4500 - $2000 4000 6000 $1625 - 3250 - 4875 - $2125 4250 6375 $1725 - 3450 - 5174 - $2950 5900 8850 Monthly $166.67 333.33 500.00 - $222.22 - 444.44 - 666.67 $180.56 361.11 541.67 - $236.11 - 472.22 - 708.33 $191.67 383.33 575.00 - $327.78 - 655.56 - 983.33 Minutes of the Special Meeting, continued August 22, 1973 1. 1973-74 Budgets and Fees, continued f. Graduate and Undergraduate Assistant Stipendsi, coiitiiiue procedures to select participants on a random basis. They have also prepared a proposed budget for the first year and the level of fees for service required to maintain the program on a self-supporting basis. The Family Health Care Pilot Project will be the first effort of the University with respect to providing health care for student families. It-is the intent of the University to use this pilot project in evaluating the feasibility of eventually extending health care to all student dependents. A thorough study of this project will be made during the coming year and based on the experience gained from this evaluation and depending upon available resources, the Health Care Authority will be making further recommendations in this area. This program was recommended to the Board for approval. On motion by Trustee Carrigan, seconded by Trustee Huff, it was unanimously voted to approve the Married Studentsf Family Health-Care-Demonstration program. I I I • i Development of new health facility approved (Minutes of the Special Meeting, continued August 22, 1973 Health Care, continued D. The Future of Olin Health Center In the fall of 1972, it was brought to our attention that Olin Health Center was in non-compliance with several regulations of the State Hospital and Institution Code. When we became aware of this violation, the President instituted a study by a group of appropriate personso He also alerted the Board to this problem and that a specific set of recommendations would be submitted upon completion of the investi- gation. Actually, the negative inspection reports of the State Fire Marshal date back to 1957* His various reports identified areas in which change or improvements are needed in order to maintain the facility in conformance with the prescribed standards. These exceptions have ranged from rather minor changes in housekeeping procedures to rather significant and costly physical renovations and upgrading. Until recently, the Fire MarshalTs objections had been met by specific corrective action or by agreements in respect to "border-line11 items where fiscal considerations made complete corrections impossible. Moreover, the Fire Marshal had, in effect, "suspended11 certain potential exceptions after the University established the College of Human Medicine in anticipation that the presence of that College would lead to the establishment of new clinical facilities elsewhere on the campus. This was in 1963. C2T Following the fall 1972 inspection of Olin, the Fire Marshal decided that he could no longer continue to certify the facility in the absence of significant progress toward either complying with his earlier reports or establishing a new facility. More recently, the State Health Department has issued a similar notice of its intent to decertify Olin based on the Fire Marshal's action. We corresponded with the Fire Marshal and State Health Department and persuaded them to reverse their decertification actions pending certain physical corrections and the resolution of the problem through the study of the ad hoc committee. The President's charge to the committee was for recommendations which would support one of the two basic alternatives: 1) Make the necessary alterations and improvements to bring Olin up to standards and adapt it to meet the academic requirements of our curricula in the health professions. 2) Construct an entirely new facility elsewhere on campus to meet the combined needs as stated in alternative one, above. The Trustees received copies of the recommendations of the committee as submitted on May 4, 1973, and a copy is filed in the Secretary's Office. On June 21, 1973 after further review, the HCA recommended that the University build a new student health facility in the vicinity of the Clinical Sciences Building. After a thorough review of these recommendations by the President and the officers, we recommend to the Board that they approve in principle the development of such a facility and authorize the administration to begin the necessary study and plans. Approval of this recommendation will make it possible for the administration to begin to explore means of financing the new facility. Further, approval of the recommendation will permit the University to begin planning for the services and clientele which the new facility will accommodate. If the recommendation is approved, the administration will, as soon as possible, come back to the Board with its recommendations with respect to the financing of the facility, a description of the services to be performed, and the nature of the clientele. Change in Juvenile Curfew Ordinance 21.01 approved bn. motion by Trustee Carrigan, seconded by Trustee Martin, it was unanimously voted to approve the above recommendation. 6. Juvenile Curfew Ordinance A change in the curfew ordinance has been proposed so as to comply with a judicial decision of the 54-B District Court due to the ambiguity of the terms "loiter, idle or congregate." The changes proposed by the Department of Public Safety were reviewed by the University Attorney and modified slightly for approval as follows: Section 21.00 - Curfew. Amend subsection .01 .01-No person who is 16 years of age or younger shall be in or upon any public building, street, alley or park within the confines of Michigan State University between the hours of 10 p.m. and 7 a.m. unless accompanied by a parent or guardian, or person delegated by such parent or guardian, or where the minor is upon an errand or other legitimate business directed by his parent or guardian. RESOLVED that Ordinance 21.01 be amended as recommended, effective immediately. Unanimously approved. Motion by Trustee Merriman, seconded by Trustee Thompson. Minutes of the Special Meeting, continued .August 22, 1973 7. Student Labor Rates Executive Vice President Breslin recommended that the minimum rate for student employ- ment be $1.90 per hour, effective September 16, 1973. RESOLVED that the minimum rate for student employment be $1.90 per hour, effective September 16, 1973. Unanimously approved. Motion by Trustee Thompson, seconded: by Trustee Martin. Adjourned at 10:30 p.m. 7889 Minimum student pay rate in- creased to $1.90 per hour President I # 1