- 17 - MINUTES OF THE COMMITTEE ON INVESTMENTS AND FINANCE September 2, 1982 A meeting of the Committee on Investments and Finance was held at the Des Moines Club at 12:00 noon on September 2, 1982. Those present were Martin Bucksbaum, chairman; Kenneth Austin; Edward Glazer; Robb Kelley; Wilbur Miller; Kenneth Myers; Jack Pester; E. G. Precht; Wayne Skidmore; and Tom Urban. Also present were Carl Kasten, B. G. Morrow, and Ray Zemon, a partner of Lincoln Income Group, a division of Lincoln Capital Management Company of Chicago. Mr. Bucksbatmi introduced Mr. Zemon whose organization manages fixed income securities. He described his organization and methods of operation. He indicated the group has been operating for approximately a year and a half. The organization includes seven managers who operate approximately 25 fixed income portfolios. Minimum size of the protfolio is $10 million. Management fee is .3 of 1% of assets under management. Their concem does not take custody of the securities. Following the presentation, Mr. Zemon left the meeting and Mr, Bucksbaum asked for comments and questions regarding Lincoln*s possible service.s to the University. Mr. Kasten mentioned that a relatively large number of concerns had called over recent years, expressing interest in handling the University's account. After discussion, motion was made that the University's endowment fund portfolio be transferred frora the Harris Bank to Lincoln Capital Management Company, thereby shifting the entire portfolio into fixed income securities and that a custodian be engaged for the custodianship of the securities, and that this recommendation be made to the Executive Committee of the Board of Trustees, After a second, the motion was approved, Mr. Bucksbaum indicated he would review with Lincoln Capital Management Company the matter of managing a fund of $6 million, since this is below their minimum^ and would also discuss with them their fee for such management. The recommendationsfor purchases and sales of securities made by the Harris Bank to the Coramittee chairman since the meeting of April 7, 1982 were reviewed. On motion duly made and seconded these transactions were approved. Copies of these proposals are enclosed with these Minutes. The Short-Term Investment Report was presented by Mr. Morrow, A discussion was held concerning the investment in Govemment paper, Commercial Paper, Bank C.D.'s, and Savings and Loans, limits of investment in various concems, and the percent distribution of 50% Government's, 25% Commercial Paper, and 25% Bank C.D.'s, Mr, Morrow reported Commercial Paper purchases in any corapany were being limited to $250,000 to $350,000, although approved procedure allowed a range of $250,000 to $500,000. On motion raade and seconded the current investment policy vas changed as follows: - 18 - 1. Remove Walter E. Heller and Commercial Credit from the approved list. 2. Remove Continental Bank of Chicago, Citibank, Manufacturers Hanover Trust, and Bank of America frora the approved list. 3. Limit of $100,000 each on all other banks on approved list and add the following banks: Commerce Bank (Kansas City), Omaha National, First National (St. Louis), Mercantile Trust (St. Louis), American National (Chicago), Harris Bank (Chicago), and First National (St. Paul). 4. Continue with the approved list of Des Moines banks, but with a limitation of $100,000 at each separately insured banking location. 5. Invest up to $100,000 in other Iowa banks insured by the FDIC. 6. Reinstate the American Federal Savings and Loan Association, Midland Financial Savings and Loan Association, and United Federal Savings and Loan Association with a $100,000 per firm limit. 7. Adjust the distribution between types of investment with a 50% minimum in U.S. Government and agency issues (including bank repurchase agreements backed by Govemment or agencies) , a maximum of 25% in Commercial Paper, and a maximum of 50% in CD. 's. The motion was approved with the recommendation that the policy changes be approved by the Executive Committee of the Board of Trustees. There being no further business the meeting was adjourned. Respectfully submitted. Carl A. Kastei? Secretary Pro Tem - 19 - Major Project The roof on Old Main Auditorium is in need of replacement. There are five layers of roofing placed on top of each other during the 80-year life of the building. The last layer was installed twenty-two years ago. It was recommended that replacement of Old Main Auditorium roof be approved at an estimated cost of $60,000 with funds from the Second Century Fund. Upon motion by John Ruan, III and second by Kenneth Austin the recommendation was approved. Real Estate 1164 - 26th Street This is a residential property south of University Avenue currently used for faculty offices for the College of Education. It is proposed that the offices be moved to one of the properties vacated by the College of Business Administration and the house razed. The land gained by the removal of the house and the adjacent lot would be used for additional parking (38 spaces) at a cost of $40,000. The book value of the structure is $21,875, and the estimated cost of demolition is $4,000, It was recommended that the above property be razed and that the book value of the property be transferred from the Endowment Fund to the Plant Fund with the use of current fund surplus in the Quasi-endowment Fund for the property and Second Century Campaign funds for the cost of the parking. Upon motion by Kenneth Myers and second by Thomas Urban the recommendation was approved. - 20 - STUDENT LIFE Personnel Dr. Adams presented the following personnel changes for approval: Mr. Ronald Lee has resigned as Assistant Director of Intraraurals, effec­ tive August 20, 19 82, to accept a position as Director of Intramurals at the University of Kentucky. He had been at Drake since August, 1981. Mr. Henry Kutak has been appointed to the position of Associate Director of Financial Aids effective July 29, 1982, at a salary of $23,000 per year, Mr. Wayne Harper has been appointed to the nine-month position of Assistant Director of Intraraurals and Recreational Sports effective August 25, 1982, at a salary of $10,500. Mr. Paul Dale has accepted a nine-raonth appointraent as Complex Director of Goodwin-Kirk Residence Hall beginning August 13, 1982, at a salary of $1,100 per month plus furnished apartraent and board. Ms. Janice Simmons has accepted a nine-month appointment as Assistant complex Director of Goodwin-Kirk Residence Hall beginning August 13, 1982 at a salary of $600 per month plus furnished apartraent and board. Mrs. Cheryl Mitchell Brewster has accepted a nine-month appointment as [all Director of Morehouse Hall beginning August 13, 1982, at a salary of |750 per month, plus furnished apartment and board. Upon motion by William Friedman, Jr., and second by John Ruan, III the above personnel changes were approved. Student Development Services The summer Transitional Services Program has been completed. Of the 17 students who started the program, one dropped out and 14 were eligible for admission since they received grades of "C" or better. One student was asked to leave Drake and another student will be allowed to continue for one additional term. Each student completed eight hours of credit. The faculty, counselors and hall director did an excellent job. The study skills instructor initiated the new program of TSP staff members attending class lectures with the students and working closely with the residence hall director. The faculty and staff held weekly conferences and exchanged information about each student's progress. The final orientation session was held on Saturday, August 28, Approximately 280 students attended this session, Joe Fisher, Director of the Reading and study Skills Center, taught a college survival skills workshop, August 2-5, Sixty- five persons were enrolled in the workshop. - 21 - The testing calendar for 1982-83 has been distributed to campus offices. National tests will be conducted during most of the weekends during fall semester, FINANCIAL AID During August the majority of the time in the Office of Financial Aid is spent preparing for registration and the begin­ ning of the academic year. Students who qualify for the special services prograra are also identified and contacted. Financial aid packages for students have been adjusted many times. For example. Pell Grant validations (the 1040 income tax form), the lateness of the Pell Grant payment schedule and late lowa Tuition Grant and Iowa State Scholarship notification have contributed to a significant increase in paper processing. Because of the Pell Grant and Iowa Tuition Grant problems, 795 financial award letters were changed. Telephone calls to the office, counseling interviews, and arrangements for Drake private loans have significantly increased during the past three weeks. The Job Locator Program continues to be successful. All students with work in their financial aid package have been placed, and supervisors have been given the names of the students working in their departments. More than 1,000 college work study students have been assigned jobs on campus. In addition, 90 students have chosen co-op placement instead of accepting the college work study money. This arrangement allows us to save $135,800 of work study money. We are continuing to develop a new "on-line" computer systera. We intend to have the 1983-84 financial aid packages on this pr og r am, By the middle of August we had processed 1,360 Guaranteed Student Loan Applications for $3,652,336 compared to 2,015 for $5,473,692 for 1981. STUDENT LIVING ENVIRONMENTS The opening of the school year went extremely well. In fact. It was a quality production. The residence hall staff spent two weeks m training while preparing for the opening of the residence halls.