MINUTES OF THE MEETING of the MICHIGAN STATE UNIVERSITY BOARD OF TRUSTEES September 25, 1982 President Mackey called the meeting to order in the Centennial Room, Kellogg Center, at 1:22 p.m., September 25, Present: Trustees Bruff, Fletcher, Howe (arrived at 3:30 p.m.), Krolikowski, Lick, Martin and Sawyer; President Mackey, Provost Winder, Vice Presidents Breslin, Cantlon, Schonbein, Stewart, Thompson and Turner; Associate Vice President and Secretary Wilkinson, General Counsel Carr, Assistant to the President Carlisle, Faculty Liaison Group, and Student Liaison Group, Absent: Trustee Reed. 1. Approval of the Proposed Agenda Trustee Bruff moved approval of the proposed agenda. Seconded by Trustee Krolikowski. Approved by a vote of 6 to 0. 2.: Approval of the July 22-23, 1982, Minutes Trustee Sawyer moved approval of the July 22-23, 1982, Minutes. Seconded by Trustee Lick. Approved by a. vote of 6 to 0. 3. Approval of the September 9, 1982, Minutes Trustee Lick moved approval of the September 9, 1982, Minutes. Seconded by Trustee Sawyer. Approved by a vote of 6 to 0. 4. Discussion Items a. Budget and Financial Matters Vice President Kenneth Thompson informed the Board on the revised 1982-83 General Fund Revenue Estimate (copy of material on file in the Secretary's Office). Vice President Thompson stated with final legislative action on the 1982-83 appropriations now approved that the Administration would be recommending final action on the budget at the October meeting of the Board of Trustees. President Mackey introduced a statement on salary adjustments (copy on file in the Secretary's Office). Trustee Bruff moved the approval of the above statement, seconded by Trustee Fletcher. Approved by a vote of 6 to 0* b. Interim Budget Financing Associate Vice President Roger Wilkinson and Assistant Vice President Steve Terry presented a financing plan for the financing of the construction of the Wharton Center (copy on file in the Secretary's Office). It was recommended that an action be taken later in the meeting to authorize borrowing for the above purpose* c. High Technology Agreement Vice President John Cantlon informed the Board about contract negotiations between the University and Recomtex, a Lansing area firm. It is proposed that this firm be involved in a research and development contract with the University and presently a MSU professor and his wife own stock in this "firm... • Following discussion of the above item, the Trustees requested that the Administration bring to the October Board meeting guidelines relating to conflict of interest in the area of licensing and research agreements, and if negotiations were conducted with this firm, a recommendation will be considered at the October Board meeting. ^Jf Z3tQ Public Comments Public Comments September 25, 1982 a. John O'Connor, representing ASMSU, read a statement regarding the matter of John J. Nowak III versus Alpha Pi Chapter of Delta Sigma Phi Fraternity. (Copy of statement on file in the Secretary's Office.) b. Henry Matthaei, student, addressed the Board concerning the John J. Nowak III matter versus the Delta Sigma Phi Fraternity. c. David Sopscak addressed the Board concerning the Russian Language Program in the College of Arts and Letters. ! A. PERSONNEL CHANGES Appointments j Appointments j 1. Bernard G. Pope, Professor, Physics and Astronomy, with tenure, at a salary of \ $40,000 per year on AY basis, effective September 1, 1982. J 2. Judy M. Olson, Professor, Geography, with tenure, at a salary of $37,500 per | year on AY basis, effective January 1, 1983. j 3. Keiji Marushige, Professor, Pathology, with tenure, at a salary of $42,000 per | year on AY basis, effective September 1, 1982. \ | Motion was made by Trustee Bruff, seconded by Trustee Lick, to approve the appointments. j Approved by a vote of 6 to 1. Trustee Fletcher voted No. Gift, Grant, & I B. GIFT, GRANT, & CONTRACT REPORT Contract Report j 1 Gifts and Grants totaled: $11,195,767. I Approved by a vote of 7 to 0 on motion by Trustee Bruff, seconded by Trustee Martin, I C. OTHER ITEMS FOR ACTION Wharton Center { !• Financing | Wharton Center Financing RESOLUTION REGARDING FINANCING OF THE WHARTON CENTER FOR THE PERFORMING ARTS | WHEREAS, Michigan State University borrowed $14,000,000 in November 1979 from the | National Bank of Detroit for the purpose of assisting the University in the construction j of the Wharton Performing Arts Center, and j WHEREAS, said construction loan is maturing on November 15, 1982, and the University | has available the sum of $7,075,000 which it plans to use toward the repayment of said j construction loan, and I \ WHEREAS, the Board has determined that it is in its best interest to borrow the sum j of $8,000,000 to be used to retire the balance of said construction loan and to provide | a debt service reserve fund for said bond issue in the amount of $1,075,000, and | WHEREAS, the Board wishes to sell said $8,000,000 of bonds at public sale to be held I on or about October 21, 1982, and 1 NOW, THEREFORE BE IT RESOLVED that the Vice President for Finance and Operations is I hereby directed and authorized to proceed to cause a notice of sale to be prepared and I published and to cause to be prepared such other documents which may be necessary to | effectuate said bond sale. The Vice President for Finance and Operations is hereby | authorized to hire such agents and attorneys as he deems appropriate to assist him | in the accomplishment of said bond sale and likewise to take any and all steps which he deems appropriate with regard to obtaining credit insurance and/or credit ratings. The result of said bond sale will be referred to the Board at the regularly scheduled October meeting. RESOLVED that the above be approved. i j Approved by a vote of 7 to 0 on motion by Trustee Bruff, seconded by Trustee Martin. C. OTHER ITEMS FOR ACTION, cont. September 25, 1982 2/ Interim Budget Adjustments Vice President Kenneth Thompson recommended additional budget adjustments totaling $522,000 for the 1982-83 Interim Budget (copy on file in the Secretary's Office). RESOLVED that the additional budget items be approved. Approved by a vote of 7 to 0 on motion by Trustee Bruff, seconded by Trustee Martin* 3. Labor Contract with IATSE, Local 274 The International Alliance of Theatrical Stage Employees and Motion Picture Machine Operators, Local 274, has ratified a tentative agreement for a three-year contract from September 1, 1981, through August 31, 1984. Salient features of the agreement are as follows: There is no wage rate increase for the contract's first 18-months with the exception of one half- time employee who will receive 8.5% effective March 1, 1982. Contract changes and new provisions in overtime, minimum work guarantee, Music and Theatre Department performances, performances by local non-profit organiz ations, and jurisdiction within the Wharton Center will resolve the numerous issues which have arisen over the last few years. RESOLVED that the contract effective September 1, 1981, through August 31, 1984, with the International Alliance of Theatrical Stage Employees and Motion Picture Machine Operators be approved. Approved by a vote of 7 to 0 on motion by Trustee Bruff, seconded by Trustee Lick. 4. Establishment of a Fund Functioning as an Endowment It is recommended that the following fund functioning as an endowment be established and placed in the University's Common Investment Fund: Civil and Sanitary Engineering Endowment Scholarship Fund - The purpose of this fund is to invest funds contributed for the benefit of the Civil and Sanitary Engineering Department. The income will be used for Civil and Sanitary Engineering scholarships. RESOLVED that the above be approved. Approved by a vote of 7 to 0 on motion by Trustee Bruff, seconded by Trustee Howe. 5. Voter Registration Drive WHEREAS, Michigan State University has long played a vital role in this community, the state and the nation, and WHEREAS, a large number of students, faculty and staff of Michigan State University are a vital segment of the East Lansing Community, and WHEREAS, in this election year, each voter will have the opportunity to choose among candidates and express their opinions on issues which will have a great impact on higher education and the quality of life in the East Lansing Community, and WHEREAS, cooperation between Michigan State University and the East Lansing Community is vital to the progress and growth of both, and WHEREAS, VOTER a non-partisan organization in cooperation with the Clerk of the City of East Lansing has launched an intensive voter registration campaign, continued - - Voter Registration Drive, cont. I C. OTHER ITEMS FOR ACTION, cont. September 25, 1982 •I • j 5. Voter Registration Drive, cont. BE IT THEREFORE RESOLVED, that this body as representatives of Michigan State University strongly supports the efforts of the City of East Lansing and VOTER in their ongoing voter registration drive, and strongly encourages the cooperation of every segment of the University community with the City of East Lansing and VOTER in their effort to promote participation in the dem ocratic process through voter registration, and BE IT FURTHER RESOLVED, that in conjunction with the City of East Lansing, Board of Trustees declares September 27th through October 4th to be Voter Registration Week, and the BE IT FURTHER RESOLVED, that coordination of this effort be through the Office of the Vice President for Student Affairs. BE IT FURTHER RESOLVED, that to facilitate meaningful participation in the electoral process on the part of the student body of Michigan State University, the Board will make available, at cost, labels containing student names and local addresses as set forth in the Student Directory to the political parties and candidates in the November 1982 general election. These labels will be furnished only for the purpose of disseminating information about the issues and the candidates. Posted notices at registration have allowed students not wishing to have their names and addresses released for this purpose to withhold this information. Approved by a vote of 6 to 1 on motion by Trustee Bruff, seconded by Trustee Sawyer. Trustee Fletcher voted No. Reports to the Board D. REPORTS TO THE BOARD Board Committee j 1-- Board Committee Reports Reports a. Audit Committee Audit Committee Trustee Sawyer reported that the Board Audit Committee met with Arthur Young & Company, the Board's external auditors, and reviewed in detail the results of the audit and the University's annual financial report for the year ended June 30, 1982. The Committee voted to recommend to the Board that the financial report be accepted. RESOLVED that the financial report for 1981-82 be accepted as presented. Approved by a vote of 7 to 0 on motion by Trustee Sawyer, seconded by Trustee Martin. President's Report 2. President's Report President Mackey reported that it is anticipated with the late registration process that we will meet our enrollment target of 40,000 students. Adjourned at 3:43 p.m. ^£^£^ ty^^U^ Secretary ^:/^