WIXLIB

410133Minutes of the Meeting/ continued8.C.April 4, 1985BIDS AND CONTRACT AWARDS, continued(2) Clarksville Horticulture Experiment Station, continuedINotification and/or plans and specifications were sent to the offices of BuildersExchange and Dodge Reports in Lansing and Michigan Contractor & Builders in Detroit.The following minority organizations were also notified: Inner City BusinessImprovement Forum, Construction Association of Michigan, and Association of MinorityContractors. No minority or women-owned businesses submitted bids.Due to the specialized nature of the project, it was determined that there were nosubcontracting opportunities.IIt is recommended that purchase orders be issued to the following contractors inthe amounts indicated:Century Rain Aid of Madison Heights, MichiganSmith & Evans Electric of Lake Odessa, MichiganTrickl-eez Company of St. Joseph, Michigan (Base Bid: 49,945plus Alternate No. 1: 46,900) 268,35176,85096,845It is also recommended that the following budget be established: 268,35176,85096,84530,0007,00020,954Contract - Century Rain AidContract - Smith & Evans ElectricContract - Trickl-eez CompanyControl System and Computer InterfaceEngineering ConsultantContingencyTotal 500,000This project, excluding the control system and computer interface, was estimatedat 475,000 by the engineering consultant in Feburary, 1985.Funding for this project will be from the Agricultural Experiment Station.RESOLVED that the above purchase orders be awarded andthat the budget be established as recommended.IApproved by a vote of 7 to 0 on a motion by Trustee Sawyer, seconded by Trustee Reed.(Trustee Wilbur was out of the room at the time of the vote.)(3) Munn Ice ArenaThe following bids were received on March 14, 1985 for Replacement of the Ice RinkRefrigeration System in Munn Ice Arena. This project replaces the original icerink floor containing deteriorated refrigeration piping.Base BidBidder 255,410376,500450,554Holmsten Ice Rinks, Inc.John E. Green Company, Inc.Mollenberg-Betz Machine CompanyNotification and/or plans and specifications were sent to the offices of BuildersExchange and Dodge Reports in Lansing. The following minority organizations were alsonotified: Inner City Business Improvement Forum, Construction Association ofMichigan, and Association of Minority Contractors. No minority or women-ownedbusinesses submitted bids.Due to the specialized nature of this project, it was determined that there wereno subcontracting opportunities.iIt is recommended that a contract in the amount of 255,410 be awarded to HolmstenIce Rinks, Inc., of St. Paul, Minnesota, and that the following budget be established: 255,41020,00044,590Contract - Holmsten Ice Rinks, Inc.Design, Coordination & InspectionContingencyTotali 320,000This project was estimated at 320,000 by the Physical Plant Division in January,1985.Funding for this project will be from Intercollegiate Athleticfunds.RESOLVED that the above contract be awarded and thatproject budget be established as recommended.Approved by a vote of 7 to 0 on a motion by Trustee Sawyer, seconded by Trustee Reed.(Trustee Wilbur was out of the room at the time of the vote.)!Approved(Munn Ice Arena]Ice RinkjRefrigeration\SystemjReplacement

0134Minutes of the Meeting, continued8.C.April 4, 1985BIDS AND CONTRACT AWARDS, continued(4) Spartan StadiumThe following bids were received on March 21, 1985 for Restoration and Seatingat the North and South End Zones of Spartan Stadium. This project includesremoving existing wood seats and steel brackets, repairing deteriorated concretesurfaces and expansion joints, and installing waterproof traffic topping and newaluminum seating at the north and south end zones. This work, which is thefourth phase of a six phase program to restore the stadium, will improve appearance,reduce maintenance, and provide more comfortable seating. The base bid providesfor work at the south end zone and alternate No. 1 adds all work at the north endzone.Approved SpartanStadium Seatingand Restorationat North andSouth End ZonesBidderWilliam H. Kelly CompanyWestern Waterproofing Company:D. C. Byers Company of LansingThe Grunwell-Cashero Company, Inc.Western Waterproofing Co., Inc., andits Wholly-Owned Subsidiary BriskWaterproofing Company, Inc.Jayda Construction CompanyBase BidAlternate No. 1 312,140.00367,810.00369,640.00414,000.00436,380.00 454,883.24280,441.70Notification and/or plans and specifications were sent to the offices of BuildersExchange and Dodge Reports in Lansing. The following minority organizations werealso notified: Inner City Business Improvement Forum, Construction Association ofMichigan, and Association of Minority Contractors. The low bidder is a woman-ownedbusiness. No minority-owned businesses submitted bids.Due to the specialized nature of this project, it was determined that there wereno subcontracting opportunities.It is recommended that a contract in the amount of 509,340 (Base Bid: 312,140plus Alternate No. 1: 197,200) be awarded to the William H. Kelly Company ofEast Lansing, Michigan, and that the following budget be established:Contract - William H. Kelly CompanyDesign, Coordination, and InspectionContingencyTotal 509,34025,66050,000 585,000This project was estimated at 887,000 by the Physical Plant Division in February,1985. The estimate was based on actual construction costs for restoration of theeast and west upper and lower stands.Funding for this project will be from Intercollegiate Athletic funds.RESOLVED that the above contract be awarded and thatproject budget be established as recommended.Approved by a vote of 8 to 0 on a motion by Trustee Lick, seconded by Trustee Sawyer.8.Approved HannahProfessorshipsRestructuringTo Add OneAcademic ChairD.OTHER ITEMS FOR ACTION(1) Restructuring of Hannah ProfessorshipsOn November 21, 1969, the Board of Trustees established the John A. Hannah Professorships and, periodically, has designated resources within the University for the supportof this program in addition to those that have been received as gifts. Also, theTrustees have periodically reviewed this program for the establishment of financingprinciples for its administration.When established, the goal of this program was to provide for ten professorships ata principal value of 300,000 each, or a total endowment of 3,000,000. When fullyfunded, this would have provided approximately 15,000 per professorship to be addedto the departmental funding of a full professor's position.In December of 1977, in order to reflect inflationary factors since the establishmentof the Hannah Professorships, the Trustees restructured the program which had anendowment value of approximately 2,500,000 as of that date, recognizing fiveprofessorships with an estimated income of approximately 25,000 each.On June 26, 1981, the Board revised the program to work toward the objective offully endowing five academic chairs under the Hannah program at an endowed valueof 1,000,000 supporting each chair. To achieve this objective, the Board designatedcertain unrestricted funds and reinvested accumulated income.continued - - -

Minutes of the Meeting, continued8 / D.April 4, 1985OTHER ITEMS FOR ACTION, continued(1) Restructuring of Hannah Professorships, continuedIThis objective has now been met, and the endowed fund has a market value in excessof 5,700,000.It is now recommended that the Board revise the program to add one additionalacademic chair under the Hannah program with an endowed value of 1,000,000.This chair can be funded through the appreciation in market value in this fundplus the reinvestment of accumulated income of approximately 300,000. Thisaction would result in six fully endowed chairs at a value of 6,000,000.RESOLVED that the above recommendation be approved.IApproved by a vote of 8 to 0 on a motion by Trustee Wilson, seconded by Trustee Lick.(2) Endowed Chairs and ProfessorshipsEndowed chairs and professorships are essential for success in national andinternational competition for superior facility members in selected areas ofacademic endeavor. Michigan State University has made significant progress inestablishment of endowed chairs and professorships in recent years. The momentumin this area is of fundamental importance for Michigan State University to continueits centers of academic excellence.Approved theRosenberg Chair in BiologicalScienceAt the Universityfs request, the MSU Foundation has taken formal action to provideassistance to the University by providing funds to ensure that additional endowedchairs and professorships can be filled in the near future to maintain this momentum.The MSU Foundation approved up to 150,000 to complete the funding of the BrinkerProfessorship in Veterinary Medicine. Michigan State University has the onlyveterinary medicine program in the State of Michigan. Competition from new collegesof veterinary medicine in other states is making recruitment and retention ofsuperior faculty at Michigan State University extremely difficult. The BrinkerProfessorship will assist the effort to meet this nationwide competition.IjjjjjjThe MSU Foundation approved up to 110,000 to complete the endowment of the MeadowsjChair in Dairy Science. The dairy industry is the most important sector of agriculturejin Michigan in terms of dollar volume. Support for the dairy industry requires vigorousresearch for which Michigan State University is responsible. The Meadows Chair isjcentral to plans to ensure that the Michigan State University dairy science programjcontinue its leadership role.In addition, the Executive Committee of the MSU Foundation endorsed the proposal thatthe Foundation provide endowment funds in the amount of 1,000,000 to permit the MSUBoard of Trustees to establish the Rosenberg Chair in Biological Science. BiologicalScience is fundamental to many areas to which Michigan State University has enduringcommitments.The Rosenberg Chair will honor Professor Barnet.t Rosenberg and willpermit Michigan State University to compete internationally for superior talent toensure continuing advances in fundamental knowledge in biology. The Board of theFoundation is prepared to act on this matter following action by the Trustees.The administration recommends that the MSU Board of Trustees authorize theadministration to request that the MSU Foundation provide 1,000,000 to fundthe Rosenberg Chair in Biological Science.RESOLVED that the administration is authorized to request funding .in the amount of 1,000,000 from the MSU Foundation toendow the Rosenberg Chair in Biological Science.Approved by a vote of 8 to 0 on a motion by Trustee Reed, seconded by Trustee Lick.(3) Endowed ScholarshipsILMichigan State University has been notified that it will receive a bequest in theamount of approximately 570,000 from Mr. Jay Samuel Hartt. We recommend that 500,000 of this bequest be committed to endow five (5) scholarships. These JaySamuel Hartt Scholarships would be awarded to outstanding students in areas inthe arts, letters, and humanities. The specific areas would be designated by theProvost based on recommendations developed by appropriate academic units. Eachscholarship would be awarded for the duration of the studentTs degree programprovided that the studentTs progress toward the degree and academic performancejustified continuation of the scholarship.continued - - -Approved EndowedScholarships:Jay SamuelHarttScholarshipsTrusteeScholarships

0136Minutes of the Meeting, continuedApril 4, 1985! 8. D. OTHER ITEMS FOR ACTION, continuedI— '. . . . . .i:;(3) Endowed Scholarships, continuedWe recommend that the remainder of the Hartt bequest be combined with income fromthe Jenison Fund and income from oil royalties from the Jones property to providefunds to endow five (5) additional scholarships to be known as Trustee Scholarships.These scholarships would be allocated to specific areas selected to encourageoutstanding students to enroll in programs in which Distinguished Faculty arepursuing active scholarly and creative projects. The specific areas would bedesignated by the Provost based on recommendations developed by appropriateacademic units. Different specific areas could be selected from time to time.Each scholarship would be awarded for the duration of the studentfs degree programprovided that the student's progress toward the degree and academic performancejustified continuation of the scholarship.IRESOLVED that the bequest from Jay Samuel Hartt to MichiganState University be designated as a fund functioningas an endowment. Income from 500,000 of the bequestis to be used to fund five (5) Jay Samuel HarttScholarships. The remainder of the Hartt bequest willbe combined with income from the Jenison Fund andincome from oil royalties from the Jones property toestablish a fund functioning as an endowment in theamount of 500,000, the income to fund five (5) TrusteeScholarships.Approved by a vote of 8 to 0 on a motion by Trustee Reed, seconded by Trustee Lick.(4) Financing Plan for Recreational/Athletic inancingPursuant to the Board of Trustees action of November 12, 1984, distributed withthe agenda is the recommended financing plan for the recreational/athleticfacilities. It is recommended that the administration be authorized, with theassistance of Cambridge Associates, to solicit proposals for financing approximately 35 million in new debt to finance the construction of these facilities to beissued during the first half of the 1985-86 fiscal year. It is further recommendedthat debt service funding for this obligation be as outlined in this report and besupported by an increase in on-campus fee rates of the equivalent of 1 per credithour effective Fall Term 1985 and an additional 1 per credit hour effective FallTerm 1986. RESOLVED that the above recommendations be approved.Approved by a vote of 8 to 0 on a motion by Trustee Lick, Seconded by Trustee Wilson.(5) Appointment of Architects and Construction Manager for the All-Events Arenaa.Approved AllEvents ArenaArchitects andConstructionManagerAppointment of ArchitectsDistributed with the agenda is the report of the Selection Committee for thearchitectural/engineering firms for the All-Events Arena. It is recommendedthat the Committee's recommendation that Giffels/Hoyem-Basso Associates, Inc.,in association with Howard Needles Tammen & Bergendoff, be appointed as thearchitectural/engineering firms for this project.RESOLVED that the above recommendation be approved.Approved by a vote of 8 to 0 on a motion by Trustee Wilson, seconded by Trustee Lick.(6) 1984-85 General Fund Carry-Forward PlanApproved CarryForward Plan foti1984-85 withExpendituresDuring 1985-86The Board of Trustees, at its April 6, 1984 meeting, authorized the carry-forwardof up to 4% of unit budgets from 1983-84 to 1984-85. Review of the carry-forwardprocedure indicates that it provided administrators with increased flexibility andresulted in efficient use of resources.Accordingly, it is recommended that a carry-forward plan of up to 4% of budgets beimplemented for 1984-85 and that such funds be authorized for expenditure during1985-86.RESOLVED that the above recommendation be approved.Approved by a vote of 8 to 0 on a motion by Trustee Reed, seconded by Trustee Dade.i

Minutes of the Meeting, continued8.D.April 4, 1985OTHER ITEMS FOR ACTION, continued(7) Establishment of 1985-86 Housing Rates(a) Residence Hall RateIt is recommended that the residence hall rate be established at 827 per termfor the 1985-86 school year, effective with the Fall Term. This is an increaseof 23 per term over the current rate.ApprovedResidence Hall! Rate for 1985-86RESOLVED that the residence hall ratebe approved as recommended.(b) University Apartments RateIt is recommended that the University Apartments basic rate be established at 227 per month for a one-bedroom apartment and 245 per month for a two-bedroomapartment for the 1985-86 fiscal year, effective July 1, 1985* This is anincrease of 7 and 9 per month, respectively, over the current rates. Approved UniversityI Apartments Ratevfor 1985-86RESOLVED that the University Apartments ratesbe approved as recommended.The above residence hall rate and University Apartments, basic rate were approved by avote of 8 to 0 on a motion by Trustee Dade, seconded by Trustee Owen.9.REPORTS TO THE BOARDA.Board Committee Reports(1)InvestmentTrustee Wilson reported that the Committee received a report on performanceof the UniversityTs Pooled Cash Investment Portfolio and voted to recommendmodifications to the Pooled Cash Investment Objectives to the Board ofTrustees.The Committee also heard a report from Cambridge Associates, Inc., theUniversity's investment consultant, on the performance of the University'sPermanent Investment Program, and received a report from representativesof McCowan Associates, Inc., one of the managers of the PermanentInvestment Portfolio.In addition, the Committee discussed financial market conditions relativeto the proposed debt issue associated with the proposed Recreational/Athletic Facilities Package. InvestmentCommittee:ApprovedRevision ofStatement ofInvestmentObjectives forthe PooledCash FundRESOLVED that the Statement of Investment Objectives forthe Pooled Cash Fund be revised to increase theallowable investment in regulated pooled moneymarket investment funds to a limit of 35% of theportfolio, with up to 35% in any one investmentfund.Approved by a vote of 8 to 0 on a motion by Trustee Wilson, seconded by Trustee Lick.(2) Land and Physical FacilitiesTrustee Wilbur reported that the Land and Physical Facilities Committeeapproved the following actions:(A)Sale of 235.556 acres to Mr. Carl R. Sams at a selling price of 942,224.00.At the time of closing, there will be a down payment of 500,000.00, with thebalance of 442,224.00 to be paid over a ten-year period at 11% interest.(B) Listing of 11.45 acres on Sandhill Road at a selling price of 20,000.00.(C) Listing of 2.9 acres of landlocked property North of Sandhill Road andWest of College Road for a selling price of 2,250.00.(D) Accepted the gift of 81.75 acres of land close to the Kellogg Forest inRoss Township, Kalamazoo County, from the Maxwell A Goodwin Trust. Thisland will be used by the Kellogg Forest for teaching and research.It should be noted that action item (C) was rescinded since the Universitydoes not have title to this property. This 2.9 acres is owned by theMichigan State Highway Department.Land andPhysicalFacilities:Approved Saleof 235.556 AcreListing of11.45 Acres onSandhill RoadAccepted Giftof 81.75 Acresof Land Closeto KelloggForest

0138Minutes of the Meeting, continuedApril 4, 19859.REPORTS TO THE BOARD, continuedA.Board Committee Reports, continued(3) BylawsTrustee Wilson reported that the Board has committed to resume its review ofthe Bylaws of the Board of Trustees with the assistance of the administration,and that this item will be reviewed at future Board meetings.(4) Executive Management CompensationTrustee Dade announced that the Ad Hoc Executive Management CompensationCommittee had been meeting and called upon Trustee Wilson to introduce aresolution relating to this review, as follows:ApprovedExecutiveManagementCompensationbe Suspendedfor New Hiresto GroupRESOLVED that executive management compensation be suspendedfor all new hires to the executive management group.Pending further review, any deferred compensationarrangement that may be recommended for new hireswill be subject to Board approval.RESOLVED further that executive management compensation andbenefits will continue to be studied under thedirection of the Ad Hoc Committee.Approved by a vote of 8 to 0 on a motion by Trustee Wilson, seconded by Trustee Dade.President Mackey asked for clarification on this- action as it applies to anyemployment offers currently pending. He was particularly concerned about theappointment of the Executive Assistant to the President. The consensus of theBoard was that this action is applicable for all new appointments subsequent tothis meeting.10.BOARD COMMENTSA.Trustee Dade expressed his appreciation to the faculty, staff, and students whorecently wrote to The Detroit News clarifying the academic quality of thisinstitution.B.Trustee Dade announced that the first week of Fall Term would be Michigan StateWeek, and introduced the following resolution:

Committee Chairpersons: Affirmative Action - Lick Audit - Sawyer Investment - Wilson Land and Physical Facilities - Wilbur MAGB: Delegates Lick & Wilbur Alternate-Pridg