MINUTES OF THE MEETING of the MICHIGAN STATE UNIVERSITY FINANCE COMMITTEE August 15, 1974 -Mr-1 President Wharton called the Finance Committee meeting to order at 7:05 p.m. 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, and Scott, Assistant to the President Ballard, Attorney Carr. Absent: No one. 1. At the May 17, 1974 Board meeting the Trustees approved the purchase of several parcels Purchase of of land for a new horticulture research center• At that time action on the option on the 80-acre Kooiman property was delayed pending a further analysis of the desirability of acquiring the property. Executive Vice President Breslin reported that on July 23 Trustees Merriman and Huff and Dean L. L. Boger visited the property and it was their recommendation that the University exercise its option to purchase the Kooiman property at a cost of $80,000. additional land in Ionia Co. for| Hort. approved Motion was made by Trustee Huff, seconded by Trustee Radcliffe, and unanimously carried to approve the purchase of the Kooiman property at a cost of $80,000. 2. Vice President Wilkinson reported that Assistant Vice President Terry has been requested Public Acts 122 (1941) and 188 (1970) re Univ. receivables discussed to represent the various state universities at a meeting (coordinated by Tom Ford, analyst for the Senate Fiscal Agency) with representatives from the Council of State College Presidents and the State departments of State, Administration, Treasury, and Auditor General to discuss a proposed plan whereby under Act 122, Public Acts of 1941 as amended by Act 188, Public Acts of 1970, State agencies would take over the collection of University receivables. It was the consensus of the Trustees that Mr. Terry should attend the meeting without making any commitments on behalf of the University; Trustee Huff also asked that the minutes show that the Board is not ready at this point to accept the language of the Act as being applicable to MSUv Adjourned MINUTES OF THE EXECUTIVE SESSION OF THE MICHIGAN STATE UNIVERSITY BOARD OF TRUSTEES August 15, 1974 Immediately following the Finance Committee meeting, President Wharton convened an executive session of the Trustees. In addition to all Trustees and President Wharton, Executive Vice President and Secretary Breslin attended the meeting. 1. In view of recent media reports that public education institutions are alleged to have made contributions to a partisan political candidate, President Wharton asked that the terms and conditions within which he would serve as University President, approved by the Trustees December 12, 1969, be revised as follows: "d. Reimbursement of all costs of entertainment and expenses incurred for the benefit of the University, BUT SPECIFICALLY EXCLUDING CONTRIBUTIONS TO OR IN BEHALF OF PARTISAN CANDIDATES FOR OFFICE." On motion by Trustee Huff, seconded by Trustee Thompson, the recommended revision to the December 12, 1969 Board action was unanimously approved. 2. President Wharton presented and discussed his recommendations for the salaries for University vice presidents and the provost for 1974-75 which he would present in the open session. On motion by Trustee Thompson, seconded by Trustee Martin, it was voted that President Wharton1s salary for 1974-75 be set at $57,500. 1' •: • ;' :: '.• •' • :: :' ;' ;: ::: .'•; -. :' • . • ;:;: :: .::. :, • v : of t he ; • ' : . : : ' .:: • '•••".. : i • .; .; :; ' :. . :' • ':" : .' • • • • ;: :': • • ' ' ;:: ': •• • ; •: :-; MINUTES OF THE SPECIAL MEETING Contributions to partisal political can- candidates ex- cluded from Pres.Wharton's reimbursable expenses 7-1-74 salaries for vice presi- dents and pro- vost discussed Pres. Wharton's 7-1-74 salary approved ' MICHIGAN STATE UNIVERSITY BOARD OF TRUSTEES August 15, 1974 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, and Scott, Assistant to the President Ballard, Attorney Carr. Absent: No one. The Board convened in the Heritage Room, Kellogg Center, at 8:35 p.m. Minutes of the Special Meeting, cont, August 15, 1974 1. Motion was made by Trustee Thompson, seconded by Trustee Radcliffe, to adopt the agenda. Unanimously carried. 2. I Contracts awarded for final work in Fee Hall ; conversion for j medical programs On July 9 bids were received for the final work on the conversion of the remaining areas of Fee Hall (excluding student apartment areas) to academic space for medical programs• The following bids were received: General Contractors Charles Featherly Construction Co. Granger Construction Co. The Christman Co. Hanel-Vance Construction Co* Clark Construction Co. Mechanical Contractors Bosch Plumbing and Heating Co. Dard, Inc. Electrical Contractors Quality Electric, Inc. Hall Electric Co. Hatzel and Buehler, Inc. Root Electric Superior Electric of Lansing, Inc. Kent Electric Co. Lansing Electric Motors Construction, Inc» Base Bid $680,000 735,000 738,600 741,900 793,000 $565,322 619,000 $245,621 255,021 274,280 277,716 279,479 299,750 336,685 Alt. No. 1 (ADD) $ 12,800 15,000 15,960 15,440 21,000 „ $ 1,520 950 440 500 1,049 200 Alternate No-.• 1 provided for replacement of existing corridor doors. The bidding documents specified that bids submitted would be valid for 30 days (until August 8 ). The total amount of the low base bids received exceeded the funds available and it was decided that, in the best interest of the University, we should review the work and eliminate or change items then negotiate with the low bidders to reduce the cost of the project to the available funds. Therefore, the low bidders were asked to extend the award time from 30 to 60 days. The general trades and mechanical trades contractors agreed to the time extension, but the electrical contractor advised that he could not grant the additional 30 days for award without possible price escalation consideration. Pre-contract bulletins were issued defining work which could be eliminated or adjusted. Negotiations were completed resulting in a total cost reduction of $92,549 from the base bids. To avoid the possible escalation requirement of the electrical contractor, we prepared contracts based on bids and pre-contract bulletin reductions within the 30-day time limitation required in the bidding documents. RESOLVED that the Board confirms the awarding of a single contract to the Charles Featherly Construction Co. of Lansing, Michigan, in the amount of $1,398,394 which assigns Bosch Plumbing and Heating Co. of Grand Rapids, Michigan, as the mechanical contractor and Quality Electric, Inc. of Lansing, Michigan, as the electrical contractor or grant the option of writing separate contracts in lieu of assignment with the Charles Featherly Construction Co. assuming the responsibility for project coordination and scheduling at no additional cost to the University, and that the following base bids be reduced as follows: Charles Featherly Construction Co. Base Bid Less Pre-contract bulletin 1-G Bosch Plumbing and Heating Co. Base Bid Less Pre-contract bulletin 1-M Quality Electric, Inc. Base Bid Less Pre-contract bulletin 1-E $680,000 27,207 $565,322 56,697 $245,621 8,645 $ 652,793 508,625 236,976 398,394 $1, and that the project budget be established as follows: Construction Contract Contingencies Engineering, Supervision, and Expediting $1, 398,394 30,606 71,000 500,000 $1, State funds as provided for this project of $1,455,000 are available and $45,000 will be provided from University alterations and improvements accounts. i i i I I Minutes of the Special Meeting, cont. August 15, 1974 2. Bids for Conversion of Fee Hall, cont. Funds are not provided in this budget to make the changes in the doors as outlined in Alternate No. 1. Should it later be determined that this change is necessary, this alternate will cost approximately $14,320 and will be funded through an alteration and improvement allocation. Unanimously approved. Motion by Trustee Merriman, seconded by Trustee Huff. Fee Hall Contract1 cont. 3. In accordance with the guidelines adopted at the July 19, 1974 Board meeting, the following 1974-75 budgets are recommended for approval. 1974-75 budgets ;j approved A. UNIVERSITY GENERAL Estimated Revenues Estimated Expenditures State Appropriation $85,665,800 Salaries $ 89,389,915 Federal Funds: Morrill-Nelson University Funds: Student Fees Application Fees Departmental Receipts Interest Income Recovery on Research Contracts Equity 250,000 Labor 9,709,910 Supplies &. Services 26,283,665 Equipment 2,251,510 $33,301,200 360,000 1,208,000 1,800,000 4,400,000 650,000 41,719,200 $127,635,000 $127,635,000 B. COOPERATIVE EXTENSION SERVICE Estimated Revenues Estimated Expenditures Federal: Smith-Lever Amended (Requires matching)$ 3,894,343 Federal Retirement 496,000 AMA Federal (Requires matching) 128,711 Nutrition Education 1,571,083 Rural Development 42,740 $ 6,132,877 State Appropriations County Grants 6,401,000 195,000 $12,728,877 Salaries $9,900,000 Fringe Benefits 1,228,000 $11,128,000 Travel & Maintenance 1,600,877 $12,728,877 I i 'Minutes of the Special Meeting, cont. August 15, 1974 1974-75 budgets, cont. |3. 1974-75 Budgets, cont, I c- AGRICULTURAL EXPERIMENT STATION ; \ | Estimated Revenues Estimated Expenditures Salaries $ 5,961,522 Fringe Benefits 800,000 $ 6,761,522 Project Expense 2,071,812 Federal Grants: Hatch (Requires matching)$ 1,516,593 Hatch R.R.F. (Requires matching) 286,004 Mclntire-Stennis (Requires matching) 72,710 Rural Development Title V 42,727 $ 1,918,034 State Appropriations: Regular State Field Crop Research: $ 5,482,300 Bean & Beet Soft White Winter Wheat Sod Production 80,000 75,000 35,000 Horticulture Crop Research: Vetegable & Fruit Extending Peach Tree 120,000 Life Weather Adaptibility Livestock Research: Livestock Production Beef Cattle Forage Cattle & Swine Infertility Calf Mortality Pest Control: 24,000 36,000 50,000 75,000 75,000 50,000 500,000 Pesticide Research Control of Fruit Pests 60,000 Accelerated Tree Growth & Nursery Stock Rural & Community Development Municipal & Agri- cultural Wastes 75,000 38,000 140,000 6,915,300 $ 8,833,334 $ 8,833,334 D. INTERCOLLEGIATE ATHLETICS Authorized Expenditures $2,399,500 | j RESOLVED that the 1974-75 General Fund, Cooperative Extension Service, Agricultural Experiment Station, and Intercollegiate Athletics budgets be approved as submitted. Unanimously approved. Motion by Trustee Huff, seconded by Trustee Martin. 4. Faculty Salaries Provost Cantlon recommends that faculty salaries, as shown on the lists submitted to the Trustees, be approved. [ j RESOLVED that the faculty salaries, to be effective July 1, 1974 unless otherwise noted, be approved as recommended. Changes in University officers1 salaries are included in this resolution. 7-1-74 faculy salaries approved ^Unanimously approved. Motion by Trustee Huff, seconded by Trustee Martin. 7-1-74 A-P salaries approved .15. Administrative-Professional Salaries !• Executive Vice President Breslin recommends that Administrative-Professional salaries, \ as shown on the list submitted to the Trustees, be approved, effective July 1, 1974/ I. .1.. RESOLVED that the Administrative-Professional salaries, to be effective July 1, 1974, be approved as recommended. {Unanimously approved. Motion by Trustee Martin, seconded by Trustee Merriman. i i i i i Minutes of the Special Meeting, cont. August 15, 1974 6. Provost Cantlon recommends that the following Graduate and Undergraduate Assistant stipends be approved. GRADUATE ASSISTANT STIPENDS Effective Fall Term 1974 Fall Term 1974 Graduate and UndergradeAsst. stipends approved LEVEL I 1/4 time 1/2 time 3/4 time LEVEL II 1/4 time 1/2 time 3/4 time LEVEL III (SENIOR) 1/4 time 1/2 time 3/4 time NINE MONTHS MONTHLY $1600 - 2100 $3200 - 4200 $4800 - 6300 $177.78 - 233.33 $355.56 - 466.67 $533.33 - 700.00 $1750 - 2250 $3500 .-. 4500 $5250 - 6750 $194.44 - 250.00 $388.89 - 500.00 $583.33-750.00 $1850 - 3100 $3700 - 6200 $5550 - 9300 $205.56 - 344.44 $411.11 - 688.89 $616.67 -1033.33 UNDERGRADUATE ASSISTANT STIPENDS Effective Fall Term 1974 . Per hour Per month .MINIMUM $ 2.07 $89.00 MAXIMUM $ 4.00 $172.00 RESOLVED that the Graduate and Undergraduate Assistant stipends, to be effective fall term 1974, be approved as recommended. Unanimously approved. Motion by Trustee Merriman, seconded by Trustee Thompson. 7. The Administration recommends that all student employees receive an across-the-board increase of 15c an hour, effective September 22, 1974. The new minimum student wage rate will be $2.05 per hour. 8% student pay j increase approved RESOLVED that all student employees receive a 15c per hour wage increase, effective September 22, 1974. Motion was made by Trustee Thompson, seconded by Trustee Radcliffe, to approve the above resolution. During the discussion it was pointed out that the increases at the top level of the student wage scale would amount to only about 5%. Trustee Thompson amended his motion, which was seconded by Trustee Carrigan, to approve an across-the-board 8% increase to the student wage scale, making the minimum student wage $2.05 per hour and the maximum $3.38 per hour. Unanimously approved. Adjourned at 9:40 p.m. President I i i