MINUTES OF THE MEETING
of the
FINANCE COMMITTEE
November 21, 1969
Mr. George Cress and Mr. William Broucek presented the following
resolution relating to Trust 5942 for Oakland University:
RESOLUTION OF THE BOARD OF TRUSTEES OF MICHIGAN STATE
UNIVERSITY
WHEREAS, the Board of Trustees of Michigan State University
entered into a Construction financing Agreement with Michigan
National Bank, of Lansing, Michigan, and Ann Arbor Trust
Company, of Ann Arbor, Michigan, as Trustee, dated as of
December 15, 1967, providing for the borrowing of $4,000,000.00
from Michigan National Bank on behalf of Oakland University,
affiliated with Michigan State University, and the execution
and issuance of a Construction Financing Note to said Bank
in evidence of the borrowing, said Note being due and payable
December 15, 1969 and bearing interest at the rate of 4
¼ % to maturity, 5% thereafter; and
WHEREAS, it was the intent of this Board to repay the Construction
Financing Note prior to maturity with proceeds received
from the sale of long term bonds secured by revenue derived
from the operation of Vandenberg Hall on the campus of Oakland
University, but conditions presently existing in the municipal
bond market prohibit the sale of such long term bonds at
this time; and
WHEREAS, Ann Arbor Trust Company, fiscal agent of this
Board, has requested an extension of the Construction Financing
Note from Michigan National Bank and the Bank has agreed
to such an extension;
NOW, THEREFORE, BE IT RESOLVED by the Board of Trustees
of Michigan State University, acting on behalf of Oakland
University, that this Board accept the agreement of Michigan
National Bank to extend the Construction Financing Note
due and Payable December 15, 1969, in the original amount
of $4,000,000.00, on the terms and conditions as outlined
in the letter of said Bank dated November 3, 1969 as requested
in the letter of Ann Arbor Trust Company dated October 30,
1969, copies of both letters to be attached to this resolution
and made a part thereof by reference.
BE IT FURTHER RESOLVED that said Construction Financing
Note, with principal balance owing as of December 15, 1969
in the amount of $3,825,000.00 shall be due and payable
December 15, 1970, shall bear interest at the rate of 5%
per annum, and that all other terms and conditions of the
Construction Financing Agreement dated as of December 15,
1967 between this Board, Michigan National Bank and Ann
Arbor Trust Company, as Trustee, shall remain in force and
effect until such time as the said Note shall be paid in
full.
BE IT FURTHER RESOLVED that the financial officers of Michigan
State University shall maintain deposits in Michigan National
Bank in excess of $4,500,000.00 in one-year time certificates,
with the understanding that the Bank will pay interest on
such Certificates at the rate of 6 ¼% per annum.
On motion by Mr. Thompson, seconded by Mr. Stevens, it
was unanimously voted to approve the above resolution.
SPECIAL MISCELLANEOUS
On motion by Mr. Merriman, seconded by Dr. Martin, it
was voted to approve the Finance items on the preceding
pages.
After discussion during the presentation by Chancellor Varner
of the Oakland University tenure items, a motion was
made by Mr. Huff, seconded by Dr. Martin, that if, in the
judgment of the administration of either MSU or Oakland University,
there is likely to be some controversy around a non-reappointment,
the Board is to be advised of this but the name of the faculty
member concerned will not be included in the public record.
Motion carried, with Mr. Thompson voting "No."
Chancellor Varner reported that in a recent referendum to
determine whether the $2.00 publications fee assessed all
undergraduates each semester for the Oakland Observer
should be abolished, out of 5,000 students who could have
voted, only 891 chose to vote and of these 638 voted "No,"
250 voted "Yes." Chancellor Varner therefore recommended
the following:
That Oakland University discontinue collecting the $2.00
fee.
That the Observer be published off campus, not
using University accounts, officials, or facilities.
That no University constraints be imposed--that the Observer
will be free to publish as it pleases and will be subject
only to civil laws of the State.
On motion by Mr. Stevens, seconded by Mr. Huff, it was
voted to approve Chancellor Varner's recommendations,
with the understanding that this action is subject to further
review at some future date. Dr. Martin voted "No."
Bid proposals for Oakland University Central Heating Plant.
On November 13, 1969, bid proposals were received and opened
at Oakland University for the Central Heating Plant. A tabulation
of the bids submitted is as follows:
| Architectural |
E. E. Powell General Contracting |
$ 968,000 |
| |
Lerner-Linden Incorporated |
1,029,000 |
| |
Palmer-Smith Company |
1,042,000 |
| |
Spence Brothers |
1,047,000 |
| |
Sorensen Gross Company |
1,065,000 |
| |
A. Z. Shmina & Sons Company |
1,068,000 |
| |
J. A. Fredman, Inc. |
1,098,000 |
| |
J. A. Ferguson Construction Co. |
1,133,761 |
| |
|
(p. 380) |
| Electrical |
Schultz Electrical, Inc. |
$389,750 |
| |
Standish Electric Engineering |
492,805 |
| |
T.L. Jacobson Electrical, Inc. |
508,850 |
| |
Post Electric Company |
688,000 |
| |
|
|
| Mechanical |
Eames & Brown Inc. |
$1,492,000 |
| |
The Stanley-Carter Company |
1,510,000 |
| |
Down River Mechanical, Inc. |
1,564,565 |
| |
The Steve Kruchko Company |
1,802,000 |
| |
Glanz and Killian Company |
1,864,100 |
| |
John E. Green Plumbing & Heating Co., Inc. |
2,686,00 |
Within an hour of bid opening, Schultz Electrical, Incorporated,
the low electrical bidder, called and informed Oakland University
that an error of $115,998.30 had been made in their bid proposal
and they asked to be allowed to withdraw their bid proposal
and to have their certified check returned. On November 17,
we received a letter from Schultz stating that they could
not do this job for the amount of their bid. After a review
of the situation, the Oakland University staff is willing
to release Schultz Electrical, Incorporated from their bid
proposal, return their bid security, and take the next qualified
bidder, Standish Electric Engineering. However, in order to
prevent any questions at a later date by the State of Michigan
about increasing the construction budget by $103,055, the
difference between Schultz Electrical, Incorporated and Standish
Electrical Engineering bids, and the return of the bid security
to Schultz, it was decided to place this matter before the
State of Michigan Administrative Board for their concurrence
in selecting Standish Electric Engineering for this project.
This was done on November 17, 1969. (Copy of letter
addressed to Mr. Ralph Danielson is filed with materials for
this meeting.) Mr. Danielson informed Oakland University that
this matter would be handled at the next Administrative Board
meeting on December 2, 1969.
The bid proposals have been examined by the architect-engineer
and our staff, and it is recommended that E. E. Powell General
Contracting Company and Eames and Brown, Inc. bids be accepted
and that the Standish Electric Engineering bid be accepted
pending the concurrence of the Administrative Board. It is
further recommended that the following project budget be approved:
| Construction |
E. E. Powell General Contracting |
|
$ 968,000 |
|
| |
Eames and Brown, Inc. |
|
1,492,000 |
|
| |
Standish Electric Engineering |
|
492,805 |
|
| |
Install boilers |
$312,430 |
|
|
| |
Other boiler costs due |
55,543 |
367,973 |
$3,320,778 |
| |
to delay in project |
|
|
|
| |
Professional services |
|
308,401 |
|
| |
Furnishings, Equipment |
|
10,000 |
|
| |
Supervision, Field Insp., C.P.M. |
|
60,000 |
|
| |
This project |
150,821 |
|
|
| |
Bal. of authorized funds |
650,000 |
800,821 |
|
| |
|
|
$4,500,000 |
|
The source of funds for this project will be $4,500,000
authorized by the State of Michigan.
On motion by Mr. Huff, seconded by Mr. Thompson, it was
unanimously voted to award the contracts and approve the
budget for the Oakland University Central Heating Plant as
recommended.
Academic Promotion:
David C. BRICKER, from Instructor to Asst. Prof - Education
at $10,500, eff, 12/1/69
Appointment:
Joseph D. HOVANESIAN as Professor - Engineering at $17,000,
eff. 8/15,/70
Change of Status:
Donald R. BRITTON, eff, date as Gen'l Mgr of MBT at $15,000
9/1/69
Jerry DAHLMANN from Dir (AP-5) Off-Campus Study Programs at
$13,200 to Adm. Dir (AP-VIII) School of Perf. Arts at $14,000,
eff. 10/1/69
C. Ronald HORVATH from Admissions Counselor at $10,500 to
Asst. Dir. Admissions & Scholarships at $11,100, eff.
111/69
The following actions are recommended by Chancellor Varner
in accordance with the tenure rules:
Associate Professors who have served their probationary terms
and acquire tenure with this reappointment, effective August
15, 1970:
| ARNOLD, Harvey J. |
Mathematics |
| EDGERTON, Robert H. |
Engineering |
| WITT, Howard R. |
Engineering |
Assistant Professor who has served his probationary term
and acquires tenure with this reappointment, effective August
15, 1970:
| DAVIS, James E. |
Chemistry (p. 381) |
Third probationary appointment as Assistant Professor for two
years, effective Aug. 15, 1970:
| BOTSAS, Eleutherios |
Economics |
| DOVARAS, John N. |
Music |
| DWYER, Donald H, |
Art |
| GERULAITIS, Renate S. |
Modern Languages and Literatures |
| HIRSCHFELD, Adeline G. |
Speech (Arts and Sciences) |
| HURD II, John |
Economics |
| RUSSELL, Joel W. |
Chemistry |
| SCHILLACE, Ralph J. |
Psychology |
| SMITH, Fred W. |
Advising & Counseling (Arts and Sciences) |
| TUCKER, Richard P. |
History |
Second probationary appointment as Assistant Professor for
two years, effective Aug. 15, 1970:
| ANDREAS, Carol R. |
Sociology and Anthropology |
| BLOCKOVICH, Robert N. |
Psychology |
| BRILL, Max |
|
| COLE, Madison |
Biological Sciences |
| COWLISHAW, John D. |
" " |
| DeVORE, Ronald A. |
Mathematics |
| KATZ, Evelyn W. |
Psychology |
| KROMPART, Robert J. |
History |
| KYKER, Jr,, Granvil C. |
Physics |
| LOUGHEED, Jacequline |
Education |
| NACHMAN, Louis J. |
Mathematics |
| SCHOCHETMAN, Irwin |
" |
| TOWER, John E. |
Economics |
| USUI, Kiichi |
Art |
| WAGNER, Cherryl |
Classics |
| WOODHOUSE, Caleb R. |
History |
Second probationary appointment as Instructor for two years,
effective August 15, 1970.
| BERTOCCI, Peter J. |
Sociology & Anthropology |
| BRAKKE, Perry M. |
Art |
| CHANDLER, Frederick D. |
Education |
| COPPOLA, Carlo |
Modern Languages & Literatures |
| GUERTLER, Reiner M. |
" " " |
| HEIDENREICH, Herbert M. |
Political Science |
| ICE, William D. |
" " |
| PITTS, Monique B. |
Modern Languages & Literatures |
| SACKS, Karen B. |
Sociology & Anthropology |
| WILD, Arthur W. |
Political Science |
Third probationary appointment as Special Instructor for
two years, effective August 15, 1970, through August 14, 1971:
| BRICKER, David C. |
Education |
| CLATWORTHY, F. James |
" |
Recommendations from the Director of Personnel:
Establish a Construction Project Coordinator AP-V position
for Physical Plant.
Establish an Executive Secretary VIII position in Professional
Performing Arts.
Gifts and Grants:
Grants to be used for scholarship purposes as follows:
For the George H. Gardner Scholarship Fund Endowment:
-- $2,000 Mrs. Ruth Gardner, Miami, Fla,
--$2,000 Mrs. Ann S. Hartwell, Fort Lauderdale, Fla.
For the Michael Werenski Memorial Loan Fund:
--$ 15 Mr. & Mrs, Donald G, Malm, Troy
--$ 25 G. Philip Johnson, Rochester
--$ 100 Mr. & Mrs. John Werenski, Warren
-- $ 229 friends of Oakland and other parents for the
Matilda R. Wilson Honor Scholarship
For the Scholarship Fund #29727:
--$ 8,000 Macomb County Scholarship Committee, Romeo
--$ 1,000 Roy G. Michael Charitable Foundation &
Trust, Ferndale
--$ 835 Oakland County Scholarship Com. (Tribune Fund),
Rochester
-- $ 500 Rotary Club of Pontiac
--$ 250 Mrs. Ludmila Velinsky, DeKalb, Illinois
--$ 50 Mrs. E. L. Windeler, Sr., Drayton Plains
--$100 Alpha Delta Kappa, Zeta Chapter, Troy
To aid specified students:
--$ 307.50 Hellen J. Baldwin, Berkley
-- $1,637.50 The Daily Tribune, Royal Oak
--$ 750 Elks National Foundation, Chicago, Ill
--$ 175 Mumford Parents Club, Detroit
--$ 500 National Assoc. of Secondary School Principals, Washington,
D.C.
--$ 100 Order of Eastern Star of Michigan, Clarkston
--$ 100 Sand Creek P.T.A „ Sand Creek
--$ 40 Troy High School Spanish Club (p. 382)
--$ 200 Troy High School "Troy Education
Association"
--$ 200 Troy High School "Student Government"
--$ 200 Troy High School "Student Government Scholarship,"
--$ 150 Waterford Township High School, Pontiac
Gifts and Grants
| |
|
Department |
Director |
Purpose |
| |
|
|
|
|
$255,232 |
Health, Ed. & Welfare |
Dean of Students |
Thomas Dutton |
Fed. student loans under terms Nat'1
Def. Stu. Loan |
$ 53,848 |
Health, Ed. & Welfare |
" |
" |
Ed. Oppor. grants |
$108,660 |
Health, Ed. & Welfare |
" |
" |
Stu. employmt funds under Col. work-study
program |
$ 1,000 |
Mr. & Mrs. Don Ahrens |
Chancellors Off.
|
D. B. Varner |
Chancellor's Club |
$ 1,000 |
Mr. Ben Mills |
" |
D. B. Varner |
" |
| $ 7,500 |
Christ Church Cranbrook |
Urban Affairs |
Elmer Cooper |
Support Pon. Black Cultural center |
$ 250 |
Ford Motor Co.Fund |
Urban Affairs |
" |
"
"
|
$ 452 |
Friends Black Cul. Cntr |
" |
" |
" " |
| $ 50 |
Ford Fund Ed. AID |
Chancellors Off |
D. B. Varner |
MBMF |
$ 2,000 |
David L. Gamble |
" |
D. B. Varner |
MBMF |
$ 2,000 |
E.E. Powell Co |
" |
D. B. Varner |
MBT 5-year plan |
$ 2,000 |
Hiram Walker & Sons |
" |
D. B. Varner |
MBT 5-year Plan |
On motion by Mr. Merriman, seconded by Mr. Thompson, it
was voted to approve the Oakland University items.
Adjourned at 11:50 a.m.
The next meeting of the Board is scheduled for Thursday and
Friday, December 11 and 12, 1969. (p. 383)