MINUTES OF THE MEETING of the FINANCE COMMITTEE October 17, 1969 Acting President Adams called the Finance Committee to order at 7:30 a.m. at Kellogg Center. The following members were present: Messrs. Hartman, Huff, Martin, Merriman, Nisbet, Stevens, Thompson, and White; Acting President Adams, Acting Vice President Wilkinson, and Secretary Breslin. Absent: No one. 1. Investment recommendations from Scudder, Stevens & Clark and Mr. Earl Cress, as I Investment follows : ,| recommendations John A. Hannah Professorship Fund Approx. Amount Security Price Principal Income Yield Recommend selling: $42,000 Fprd Credit Demand Notes $ 42,000 8.0% (out qf $196>, DO.O) Recommend purchasing: Up to 1,000 shs. RCA Corp. $ 42 42,000 $ 1,000 2.4% Retirement Fund Recommend purchasing; Up to 8,200 shs. RCA Corp. 42 344,400 8,200 2.4% Forest Akers Fund Exchange: 230 shs. Chubb Corp. 55 12,650 414 3.3% For: 345 shs. INA Corp. 36 12,420 483 3.9% and $22 per share in cash 5,060 Recommend purchasing: Up to 120 shs. RGA Corp. 42 5,040 120 2.4% Akers Golf Course Fund Exchange: 200 shs. Chubb Corp. 55 11,000 360 3.3% For: 300 shs. INA. Corp. 36 10,800 420 3.9% and $22 per share in cash 4,400 Recommend purchasing: Up to 110 shs. RCA Corp. 42 4,620 110 2.4% Consolidated Investment Fund Exchange: 1,100 shs. Chubb Corp. 55 60,500 1,980 3.3% For: 1,650 shs. INA Corp. 36 59,400 2,310 3.9% and $22 per share in cash 24,200 Recommend purchasing: Up to 570 shs. RCA Corp. 42 23,940 570 2.4% John A. Hannah Professorship Fund Exchange: 750 shs. Chubb Corp. 55 41,250 1,350 3.3% For: 1,125 shs. INA Corp. 36 40,500 1,575 3.9% and $22 per share in cash 16,500 6586 Finance Committee Meeting minutes, continued October 17, 1969 Investment ; 1. Investment recommendations, continued recommendations John A. Hannah Professorship Fund, continued Approx. Amount Security Price Principal Income Yield Recommend purchasing: Up to 400 shs. RCA Corp. (making 1,400) $ 42 $ 16,800 400 2.4% Jenison Fund Exchange: 738 shs. Chubb Corp. 55 40,590 1,328 3.3% For: 1,107 shs. INA Corp. 36 39,852 1,549 3.9% and $22 per share in cash 16,236 Recommend purchasing; Up to 400 shs. RCA Corp. 42 16,800 400 2.4% Retirement Fund Exchange: 10,000 shs. Chubb Corp. 55 550,000 18,000 3.3% For: 15,000 shs. INA Corp. 36 540,000 21,000 3.9% and $22 per share in cash 220,000 Recommend purchasing: Up to 5,200 shs. RCA Corp. (making 13,400) 42 218,400 5,200 2.4% Ivan Wright Life Income Fund Exchange: 100 shs. Chubb Corp. 55 5,500 180 3.3% For: 150 shs. INA Corp. 36 5,400 210 3.9% and $22 per share in cash 2,200 Recommend purchasing: Up to 50 shs. RCA Corp. 42 2,100 50 2.4% On motion by Mr. Nisbet, seconded by Mr. Thompson, it was unanimously voted to approve the investment recommendations. IMSU-Oakland loan 2. Recommendation of the Ann Arbor Trust Company for the University and the Michigan pf $3,848,000 National Bank to arrange a one year's extension on the MSU-Oakland loan of approximately extended for 1 $3,848,000 which is identified as Trust 5942. year On motion by Mr. Nisbet, seconded by Mr. Huff, it was unanimously voted to approve the above recommendation. Bids to be taken 3. Communication from Acting Vice President Wilkinson: 'for renewal of ;Univ. master This is to inform the Trustees that the master insurance policy of the University insurance policy expires on February 28, 1970. The University staff is now preparing information so that the bids can be' received and submitted to the Board of Trustees for approval. Recent information, both local and national, would indicate that there will be a major increase in the cost of our insurance program due to the national state of student unrest. After discussion, it was felt by all Trustees that the master insurance policy for the buildings and contents of Michigan State University must be bid. i$200,000 pro­ 4. Communication from Acting Vice President Wilkinson: vided for com­ puter costs of When the University accepted the Centers of Excellence grant, it was agreed that $200,000 Centers of would be provided from overhead funds to cover computer costs relating to this program. Excellence grant! For the 1968-69 fiscal year, $26,000 was allocated to meet this commitment. Finance Committee Meeting minutes, continued October 17, 1969 4. Communication from Acting Vice President Wilkinson; continued: $200,000 for computer costs This is to request that an additional $174,000 be transferred from the overhead account of Centers of to cover this commitment and that the allocation be made as follows: Excellence grant Chemistry $15, 000 Physics $78, 000 Computer Center $81, 000 On motion by Mr. Stevens, seconded by Mr. Merriman, it was unanimously voted to approve the transfer of funds as requested. 5. Communication from Acting Vice President Wilkinson: $70,000 allo­ cated for It is requested that the Board of Trustees approve an allocation of $70,000 to cover, 1970 catalog the printing and distribution of the 1970 University catalog. This follows past policy of the University wherein a special request is made for major j printing of the catalog since funds are not adequate in the UniversityVs major printing budget to cover this expenditure. On motion by Mr. Nisbet, seconded by Dr. Martin, it was unanimously voted to approve the above request. 6. Communication from Acting Vice President Wilkinson: App sale of 1000 sh Gen On August 28, 1969, Mr. Benjamin H. Anibal gave 1,000 shares of General Motors common Mot stock, gift stock to Oakland University. The value of the stock on the date of the gift was j of B.H.Anibal 71.9375 per share and totaled $71,937.50. Half of the donation is to be used for the j to Oakland purchase of books for Kresge Library and half for the Mary Fogarty Anibal Memorial University Scholarship Fund. Mr. Anibal wishes no public announcement to be made of this gift. It is recommended that the Board of Trustees accept this gift and authorize the sale of the securities at its October meeting so that the proceeds may be used for the intended purpose. I On motion by Mr. Huff, seconded by Mr. Stevens, it was voted to approve the above recommendation. 7. The University is very anxious to alleviate a troublesome condition at the west end ! Improvements of South Service Road as it connects with Harrison Road, and therefore it is |to be made on recommended that: I South Service I Road at a. Approximately 235 feet of the west end of South Service Road be widened by 1 Harrison Road 12 feet; b. 270 feet of South Harrison Road be widened by 12 feet at the point where it connects with South Service Road; c. 230 feet of the median on South Harrison Road be taken to provide a 12-foot wide turning lane for those vehicles entering South Service Road. The total cost of this project is estimated at $10,000 and would be assumed by the Food Stores reserve account. Included would be the widening as proposed in items a, b, and c, replacing the curbing, removing a catch basin, and replacing the street lights. The project has the approval of the Traffic Engineer of the City of East Lansing, Mr. Gordon Melvin. On motion by Mr. Huff, seconded by Mr. Thompson, it was unanimously voted to approve the above project. 8. Secretary Breslin requested instruction relative to the petition for recognition from Frat.Ord.of the Fraternal Order of Police, Capital City Lodge 141, as the collective bargaining Police, Capital agent for members of the Department of Public Safety. City Lodge 141 to represent After discussion, it was moved by Mr. Huff, seconded by Dr. Martin, that the University members of grant voluntary recognition to the Fraternal Order of Police, Capital City Lodge 141, as | Dept of Pub Saf the collective bargaining agent for members of the Department of Public Safety. It was suggested by Mr. Nisbet that the Executive Vice Presidents office develop a recommended procedure to be used in future recognition of bargaining units. Mr. Thompson again stated j the position he had taken previously that the election process is the fairest to all | involved, since this way everyone has . a voice in determining who will represent him.as his j bargaining agent. Motion carried by a vote of 7 to 0, with Mr. Stevens not voting. 9. Discussion regarding appointment of Donald Tatroe as Professor in the Department of Appt of Donald Administration and Higher Education, College of Education. Tatroe as Prof, Admin & Higher After discussion it was moved by Mr. Huff, seconded by Mr. Nisbet, that Dr. Donald Tatroe Educ be appointed as Professor in the Department of Administration and Higher Education, | College of Education, for one year ending July 31, 1970. It is further understood that thej appointment for Dr. Tatroe for the year 1970-71 will be discussed in the spring of 1970. j Motion carried by a vote of 7 to 1, with Mr. White voting MNo.tT ! I Finance Committee Meeting minutes, continued October 17, 1969 $3300 allocated! to Search & 10. Request that the All-University Search and Selection Committee be granted an additional Selection Com.