SAGINAW VALLEY STATE UNIVERSITY

BOARD OF CONTROL

OCTOBER 13, 2003

REGULAR FORMAL SESSION

INDEX OF ACTIONS

RES-1571 RESOLUTION TO APPROVE PURCHASE OF

NATURAL GAS

APPROVED 2

RES-1572 RESOLUTION TO AMEND PRIOR RESOLUTION

APPROVING PLANNING AND DESIGN OF THE

MAIN CAMPUS ENTRANCE SIGNAGE

APPROVED 3

RES-1573 RESOLUTION TO APPROVE RECONSTRUCTION

OF COLLEGE DRIVE

APPROVED 5

RES-1574 RESOLUTION TO RECEIVE AND ACCEPT THE

ANNUAL FINANCIAL AUDIT AND THE FEDERAL

AWARDS AUDIT FOR FISCAL YEAR 2002-2003

APPROVED 6

RES-1575 RESOLUTION TO APPROVE THE ADDITION OF

GRADES KINDERGARTEN THROUGH FIFTH

TO NORTHWEST ACADEMY

APPROVED 7

RES-1576 RESOLUTION TO APPROVE REAPPOINTMENTS OF

MS. ALMA GILMORE DOUD AND MRS. ROZ RYMAL

AND APPOINTMENTS OF MS. IRENE CLAIRE

HENSINGER AND MS. SUE PUMFORD TO THE

MARSHALL M. FREDERICKS SCULPTURE

MUSEUM BOARD

APPROVED 7

RES-1577 RESOLUTION TO APPROVE APPOINTMENT TO

SVSU FOUNDATION BOARD

APPROVED 8

RES-1578 RESOLUTION TO ADOPT PROPOSED AMENDMENTS

TO THE CHARTER OF SAGINAW VALLEY STATE

UNIVERSITY STUDENT ASSOCIATION

APPROVED 9

RES-1579 RESOLUTION TO EXTEND ELECTRIC SALES

AGREEMENT

APPROVED 10

BM-997 MOTION TO ADJOURN

APPROVED 18

MINUTES

BOARD OF CONTROL

Regular Formal Session

October 13, 2003

Board of Control Room, Third Floor, Wickes Hall

Present: Braun

Cotter

Gamez

Gilbertson

Karu

Law

Sedrowski

Sims

Yantz

Absent:

Others

Present: S. Barbus R. Lopez

L. Beuthin D. Martin

D. Boehm R. Maurovich

J. Boehm T. McCann

M. Brandimore B. Mudd

G. Coburn J. Muladore

S. Crane R. Portwine

D. Dawson C. Rathburn

L. Farynk T. Rex

J. Garibay R. Schneider

E. Hamilton M. Shannon

S. Hocquard J. Stanley

A. Hratchian R. Thompson

D. Irish M. Thorns

J. Kortz R. Yien

C. Looney Press (1)

I. CALL TO ORDER

Chairperson Sims called the meeting to order at 1:31 p.m.

II. PROCEDURAL ITEMS

A. Approval of Agenda and Additions to and Deletions from Agenda

President Gilbertson asked that the original Action Item #2 (Resolution to Amend Prior Resolution Approving Planning and Design of the Main Campus Entrance) be divided into two separate resolutions - Action Item #2 (Resolution to Amend Prior Resolution Approving Planning and Design of the Main Campus Entrance Signage) and Action Item #3 (Resolution to Approve Reconstruction of College Drive). He also asked that a Resolution to Extend Electric Sales Agreement be added as the last Action Item.

Hearing no objections, Chairperson Sims declared the agenda approved as revised.

B. Approval of Minutes of August 14, 2003 Regular Formal Session of the Board of Control

It was moved and supported that the minutes of the August 14, 2003 Regular Formal Session of the Board of Control be approved.

The minutes were unanimously APPROVED as written.

C. Recognition of the Official Representative of the Faculty Association

Professor Marcia Shannon, President of the Faculty Association, reviewed the awards that were given to students and faculty members at the Faculty Association Fall Banquet on October 10^th. She noted that ten $1,000 endowed scholarships were awarded to students. Paul Teed, Associate Professor of History, received the SVSU Faculty Association Award for Scholarship, and Gretchen Mooningham, Professor of Mathematical Sciences, was presented the SVSUFA Award for Service.

D. Communications and Requests to Appear Before the Board

• ?Four SVSU staff members ( Jon Kortz, Tim Rex, Greg Coburn, and Bob Lopez) were introduced to the Board and commended for their heroic efforts on October 8^th. While driving on campus, custodian Jon Kortz noticed a woman slumped over the wheel of her car and driving erratically. He climbed into the moving vehicle and stopped it. Groundskeeper Tim Rex witnessed the incident and called for help. Rex, groundskeeper Greg Coburn, and foreman Bob Lopez, pulled the woman, Patricia Koucky of Saginaw, from her car. After determining that she had no pulse, they began to perform cardiopulmonary resuscitation (CPR). All three had prior CPR training. Lyn Behnke, an adjunct nursing instructor, assisted in applying CPR until emergency crews arrived. Medical personnel credited the SVSU staff members for saving Mrs. Koucky's life.
• ?Staff Members of the Month

Stephen L. Hocquard, Staff Member of the Month for September, and Merry Jo Brandimore, Staff Member of the Month for October, were presented to the Board. (See Appendix One: Hocquard, and Appendix Two: Brandimore)

III. ACTION ITEMS

1) Resolution to Approve Purchase of Natural Gas

RES-1571 It was moved and supported that the following resolution be adopted:

WHEREAS, SVSU issued a Request for Proposals in May 2003 seeking bids for the purchase of natural gas; and

WHEREAS, Alliance Energy Services, LLC was the low bidder;

NOW, THEREFORE, BE IT RESOLVED, That the President or the Vice President for Administration and Business Affairs be authorized to enter into a Gas Sale and Transportation Contract with Alliance Energy Services, LLC for the period August 1, 2003 through August 31, 2004.

James Muladore, Vice President for Administration and Business Affairs, told the Board that Resolution 1571 would approve a one-year contract for natural gas acquisitions from Alliance Energy Services, LLC. Traditionally the University, using two-year contracts, has purchased natural gas from the wellhead, but the market has been quite volatile, with natural gas prices more than doubling in the past five years. Although the price the University will be paying under this contract is about 35% higher than the contract that just expired, it is still much lower than it was in the spring. At this point in time, this contract is an attempt to save money on utility outlays, and is in the best interest of the institution.

The motion was APPROVED by a vote of seven in favor, with Chairperson Sims abstaining.

2) Resolution to Amend Prior Resolution Approving Planning and Design of the Main Campus Entrance Signage

RES- 1572 It was moved and supported that the following resolution be adopted:

WHEREAS, The Michigan Department of Transportation will begin construction in 2003-2004 of a four-lane boulevard to replace the existing M-84 roadway. This project will require replacement of SVSU's main entrance signage; and

WHEREAS, Saginaw Valley State University supports this roadway project and by previous Board resolution has authorized the transfer of 16 acres of University property to the State to accommodate the project; and

WHEREAS Resolution 1527, approved by the Board on December 13, 2002, authorized the planning and design of the University's main campus entryway, including installation of new signage and development of storm water retention ponds at the M-84 and College Drive intersection; and

WHEREAS, Planning and design work have proceeded to a phase sufficient to develop a project timetable and cost estimate;

NOW, THEREFORE, BE IT RESOLVED, That the President and/or the Vice President for Administration and Business Affairs be authorized to enter into contracts for construction of the main campus entrance signage and related site development. The project budget is hereby authorized in an amount not to exceed $770,000.

President Gilbertson told the Board that the State of Michigan has approved the expansion of M-84 beyond the southern end of the campus, and that M-84 will be divided into a four-lane boulevard at Pierce Road. The Board had previously authorized the transfer of 16 acres of University property to the State to accommodate this project, which will require the reconfiguration of the whole front entrance to Bay Road.

Mr. Muladore stated that it was expected that the Michigan Department of Transportation will begin the M-84 project either later this fall or sometime next spring. It is hoped that contracts can be let in February, in order to coordinate construction on the signage with the State's timetable for the road construction. It is expected that most of the work will be done next summer, prior to the beginning of classes in the fall.

President Gilbertson noted that Resolution 1572 pertains to the actual entrance signage, while Resolution 1573 relates to the reconstruction of College Drive from Collins Drive west to M-84.

Trustee Gamez asked whether the State was paying for the land being utilized for the project.

President Gilbertson replied that the University had ceded the land to the State, as it is clearly in the University's interest to have the boulevard in place.

Mr. Muladore added that the State will reimburse the University for the value of the existing sign after it is torn down.

The motion was APPROVED unanimously.

3) Resolution to Approve Reconstruction of College Drive

RES-1573 It was moved and supported that the following resolution be adopted:

WHEREAS, The Michigan Department of Transportation will begin construction in 2003-2004 of a four-lane boulevard to replace the existing M-84 roadway. This project will require reconstruction of College Drive from Collings Drive west to M-84; and

WHEREAS, Saginaw Valley State University supports this roadway project and by previous Board resolution has authorized the transfer of 16 acres of University property to the State to accommodate the project; and

WHEREAS, Resolution 1527, approved by the Board on December 13, 2002, authorized the planning and design of the University's main campus entryway, including installation of new signage and development of storm water retention ponds on the M-84 and College Drive intersection; and

WHEREAS, Planning and design work have proceeded to a phase sufficient to develop a project timetable and cost estimate;

NOW, THEREFORE, BE IT RESOLVED, That the President and/or the Vice President for Administration and Business Affairs be authorized to enter into contracts for the reconstruction of College Drive. The project budget is hereby authorized in an amount not to exceed $330,000.

Trustee Karu asked what length of the University's border would be involved in this reconstruction.

President Gilbertson answered that the length of the boulevard would be one mile, running from Pierce Road to Freeland Road. The reconstructed drive would come in through SVSU property for about 1,000 feet. The existing storm water retention pond would need to be reconfigured. Another retention pond would be constructed at no expense. In addition, the University would be able to sell the soil, which would help mitigate the cost of the entrance.

The motion was APPROVED unanimously.

4) Resolution to Receive and Accept the Annual Financial Audit and the Federal Awards Audit for Fiscal Year 2002-2003

RES-1574 It was moved and supported that the following resolution be adopted:

WHEREAS, The University financial statements and the audit of federal awards in accordance with provisions of the Single Audit Act of 1984 for the 2002-2003 fiscal year, as audited by Andrews Hooper & Pavlik, P.L.C., were reviewed by the Business, Finance, Audit and Facilities Committee of the Board; and

WHEREAS, The administration recommends that the audits be submitted to the Board of Control for receipt and acceptance;

NOW, THEREFORE, BE IT RESOLVED, That the Board of Control receive and accept the audits as submitted.

Mr. Muladore stated that the audits had been reviewed by the Business, Finance, Audit and Facilities Committee at its September meeting. The auditors provided unqualified opinions and had no findings. The University operated within its resources during the past year, maintained adequate cash balances and has appropriate unrestricted net assets. This year, the auditors performed some additional procedures related to fraud and risk assessment, and the University has engaged another accounting firm to do additional work in terms of risk assessment for the upcoming year. Mr. Muladore asked if any of the members of the Finance and Audit Committee would like to comment.

Trustee Sedrowski stated that, as a new member of the Board, he found the session with the auditors very helpful. His questions had been answered, and he was satisfied with the integrity of the funds.

Trustee Yantz noted that the committee had reiterated to the auditors that they worked for the Board of Control, and not for the administration, and that the committee wanted to have a more pro-active relationship with them than they'd had in the past.

Chairperson Sims added that she was very encouraged by how well the University was doing in this regard.

The motion was APPROVED unanimously.

5) Resolution to Approve the Addition of Grades Kindergarten Through Fifth to Northwest Academy

RES-1575 It was moved and supported that the following resolution be adopted:

WHEREAS, The Saginaw Valley State University Board of Control has approved the charter school application for grades 6-12 for Northwest Academy; and

WHEREAS, The Northwest Academy must currently reject the application of kindergarten through fifth grade students; and

WHEREAS, The current students being served by Northwest Academy and their parents have requested the opportunity to offer additional educational opportunities; and

WHEREAS, The Northwest Academy has a desire to provide education services for all grade levels (K-12);

NOW, THEREFORE, BE IT RESOLVED, That the Saginaw Valley State University Board of Control approve the application and program amendment providing for the addition of Kindergarten through fifth grade students.

Mr. Ronald Schneider, Director of School and University Partnerships, told the Board they had previously approved the charter school application for grades 6-12 for Northwest Academy. The Academy would like to add grades Kindergarten through fifth to their contract.

The motion was APPROVED unanimously.

6) Resolution to Approve Reappointments of Ms. Alma Gilmore Doud and Mrs. Roz Rymal and Appointments of Ms. Irene Claire Hensinger and Ms. Sue Pumford to the Marshall M. Fredericks Sculpture Museum Board

RES-1576 It was moved and supported that the following resolution be adopted:

WHEREAS, The Marshall M. Fredericks Sculpture Museum Board is comprised of qualified individuals who have the responsibility of advising the President and the University Board of Control regarding major decisions of the Museum; and

WHEREAS, Ms. Alma Gilmore Doud and Mrs. Roz Rymal have successfully completed three-year terms; and

WHEREAS, The Museum Board recommends Ms. Alma Gilmore Doud and Mrs. Roz Rymal be reappointed for three-year terms which expire June 2006; and

WHEREAS, Members of the Museum Board recommend that Ms. Irene Claire Hensinger and Ms. Sue Pumford be appointed for three-year terms.

NOW, THEREFORE, BE IT RESOLVED, That the reappointed members and the new members serve on the Marshall M. Fredericks Sculpture Museum Board as stipulated in the organization's bylaws.

Ms. Charlene Rathburn, Director of the Marshall M. Fredericks Sculpture Museum Board, told the Board that Sue Pumford is a community leader who has been involved in many volunteer positions in the area. Most recently, she was the chair of the capital campaign which raised $6 million for the Saginaw Art Museum. Since 1987, Irene Hensinger has been the principal at the Handley Program for the Creative and Academically Talented. She is also an attorney and an art enthusiast and collector.

President Gilbertson noted that Alma Doud and Roz Rymal were being recommended for reappointment.

The motion was APPROVED unanimously.

7) Resolution to Approve Appointment to SVSU Foundation Board

RES-1577 It was moved and supported that the following resolution be adopted:

WHEREAS, The SVSU Foundation bylaws stipulate that the Board shall include four Board of Control members; and

WHEREAS, The term of Robert J. Vitito expired in the Fall of 2003;

NOW, THEREFORE, BE IT RESOLVED, That D. Brian Law be appointed to serve a four-year term on the SVSU Foundation Board, expiring in 2007.

President Gilbertson stated that Trustee Law had agreed to serve if elected.

The motion was APPROVED unanimously.

8) Resolution to Adopt Proposed Amendments to the Charter of Saginaw Valley State University Student Association

RES-1578 It was moved and supported that the following resolution be adopted:

WHEREAS, It has been determined that changes in the Student Association organization are necessary to preside over meetings and represent students more effectively; and

WHEREAS, The revised Student Association Charter was approved by the members of the Student Association; and

WHEREAS, The revised Student Association Charter was approved by the student body of the University;

NOW, THEREFORE, BE IT RESOLVED, that the attached Student Association Charter of Saginaw Valley State University be approved as revised. (See Appendix Three: Charter)

Armen Hratchian, President of the Student Association, told the Board that one proposed change to the Student Association Charter would allow the Association to be comprised of a minimum of 13 representatives and a President, instead of exactly 13 representatives and a President. He noted that one representative had resigned this semester and that 27 very strong leaders had applied for his position. It is expected that eight of these will be selected. This revision would encourage student involvement in the Association and increase representation of the student body.

The second revision would change the number of representatives necessary to constitute a quorum and the number of votes needed to conduct business from nine to three fourths of the Representatives of the Association. This change would accommodate the additional representatives, regardless of how many there are.

The third revision would allow a Student Association President to run for a second term.

President Hratchian noted that the revised Charter had been approved by the Student Association on September 29^th, and by the student body on October 9th.

President Gilbertson told the Board that he strongly recommended these amendments, and that it wouldn't be necessary for the Student Association to come before the Board each year to decide the precise number of representatives in the organization. He noted that it was his interpretation that the intent of the Charter is to permit the Student Association itself, through its bylaws, to determine the exact number of representatives that will be in place at any given time.

The motion was APPROVED unanimously.

9) Resolution to Extend Electric Sales Agreement

RES-1579 It was moved and supported that the following resolution be adopted:

WHEREAS, SVSU issued a Request for Proposals in April 2003 seeking bids for the purchase of electricity; and

WHEREAS, The Board of Control in August, 2003 authorized an Electric Sales Agreement with the successful bidder, Wolverine Power Marketing Cooperative (WPMC), for the period of September 1, 2003 through December 31, 2005; and

WHEREAS, WPMC subsequently has offered to extend the current SVSU contract with the same terms and conditions;

NOW, THEREFORE, BE IT RESOLVED, That the President or Vice President for Administration and Business Affairs be authorized to extend the present Electric Sales Agreement with WPMC, which expires on December 31, 2005 to December 31, 2006.

Mr. Muladore reminded the Board that in August it had approved a 28-month electric sales agreement with WPMC, and as a result the University will save approximately 8% on its annual electric costs. Subsequent to the approval of that contract, Wolverine offered to extend the contract by another 12 months, to December 31, 2006. It is to the advantage of the University to accept the extended contract offer, given that electric rates are expected to increase even more in the upcoming several years.

Trustee Sedrowski noted that Wolverine was the original low bidder, and that they later made an additional offer to extend their low bid for one more year.

The motion was APPROVED by six affirmative votes, with Trustees Cotter and Sims abstaining.

IV. INFORMATION AND DISCUSSION ITEMS

10) Report on Charter Schools

Mr. Schneider told the Board that SVSU, being more interested in quality than quantity, has taken a measured and deliberate approach to charter schools. He reviewed the recommendations of the 1998-99 Ad Hoc Committee on Charter Schools, which was chaired by Trustee Braun.

Currently, SVSU has 18 public school academies in 25 buildings from Charlevoix to Detroit. The enrollment in these charters has gone from 3,785 students in 1999 to 6,007 as of the fourth Wednesday count this year. A strong emphasis is placed on aligning the curriculum in writing, science, math, and reading to the Michigan core curriculum.

Mr. Schneider stated that at President Gilbertson's urging, the Partnership Office had worked with Dr. Stephen Barbus (Dean of the College of Education) and Dr. Kenneth Wahl (Director of Off- Campus programs) to develop one of the University's charter schools into a model. They chose the Cesar Chavez Academy in Detroit, which was struggling - its test scores in the Michigan Educational Assessment Program (MEAP) were extremely low. Approximately 98% of the students there are Hispanic and nearly 60% of the children who start in kindergarten speak no English. Mr. Schneider discussed the methods utilized to improve teaching and learning at the school, which resulted in much higher MEAP scores. Those methods are now being replicated at other charter schools authorized by SVSU.

Javier Garibay, Principal at Cesar Chavez Academy, told the Board it should be proud of the work Mr. Schneider is doing. He stated: "A very high number of our children don't speak a language other than Spanish, and when you combine that with their other disadvantages, you'd think they would never be able to achieve . . . but we believe that kids - irrespective of their income, their gender, their race, their ethnicity - can be successful. And Ron has proven it. . . . He and this University have done a stellar job, second to none in the State of Michigan or the Midwest. . . that would make it a national model. . . . We have already had contact from some schools outside Detroit who want to replicate the success of this school."

11) Update on Instructional Support Services

Diane Boehm, Director of Instructional Support Program/University Writing Program, told the Board the Writing Center does about 1,000 one-on-one tutorial sessions a semester with students who come in with any type of writing questions. The staff consists of about 24 undergraduate peer tutors, who are specially trained students, as well as a number of faculty who come in on a volunteer basis. The Writing Center provides a variety of other services, including English as a Second Language (ESL) software for international students who are learning English, coaching sessions for the Michigan tests for teacher certification, classroom presentations, and handouts which are used widely across the campus by faculty as well as by students. The Center provides feedback on materials being written by students and faculty. There is also an on-line Writing Center for students who can't come to the Center during its regular hours. Students can send a document via e-mail and a tutor can work with them. That process requires a 48 hour turn-around.

Thomas McCann, Director of the Math Resource/Support Center, told the Board that the Math Center tries to do anything it can to help students and the rest of the college community with anything involving mathematics. This includes tutoring students one-on-one, providing computerized tutoring, preparing students for the Michigan test for teacher certification, and presenting workshops on math anxiety. The Center has recently become involved in the Math Placement Program on campus, and serves as liaison with area high schools.

Linda Farynk, Director of the Melvin J. Zahnow Library, stated that the Student Technology Center opened in November of 2002. She noted: "As teachers began using Blackboard and other forms of technology in their teaching and in their course work, students became very concerned about having a place where they could go to learn how to use the software that their instructors were expecting them to know in order to complete their class assignments."

Four student tutors provide one-on-one tutoring and training and personal assistance with PowerPoint presentations, word processing, setting up Excel spreadsheets, designing web-pages, Desktop Publishing for printing newsletters, and producing electronic portfolios of students' work. Multi-media and DVD production instruction is also offered.

The Student Technology Center staff, consisting of a full-time coordinator and a part-time technology trainer, frequently are asked by faculty from across the curriculum to go to their classroom and teach an entire class how to use PowerPoint or Front Page or introduction to Blackboard.

12) Student Profile for Fall Semester, 2003

Chris Looney, Assistant Vice President & Registrar/Director, Institutional Research, reviewed the Student Profile for Fall Semester, 2003 as well as the Five-Year Perspective, Fall 1998 to Fall 2003. (See Appendix Four: Profile)

V. REMARKS BY THE PRESIDENT

President Gilbertson made no remarks.

VI. OTHER ITEMS FOR CONSIDERATION OR ACTION

Trustee Braun read the following statement:

I have a few brief comments I'd like to make at this time. It has to do with a very recent action taken by the Administration in providing health care coverage for same sex domestic partners of single employees, while at the same time denying it for opposite sex domestic partners. In other words, if you're a single employee, you can provide coverage for your same sex partner but not for your opposite sex partner. By any standard this is blatant discrimination.

As a Board member, I firmly believe that the function of the Board of Control is to establish policy and the function of the Administration is to carry out the day-to-day operation of the University in accordance with those policies. However I feel so strongly about this recent decision to extend health care benefits to certain University staff and not to all staff, that I am compelled to speak out on the subject, in spite of the fact that the Administration may have had the authority to act without Board approval.

I am told that our insurance carrier will not cover unmarried domestic partners of the opposite sex, so we cannot offer these benefits to them, even if we wanted to do so. What other alternatives were available? Different insurance? Additional insurance? Self insurance? None were discussed with the Board. The fact that University insurance is strictly limited in such offerings is beside the point. It simply is not justifiable to recognize relationships of the same sex, and at the same time, deny recognition of relationships between those of the opposite sex.

Although I cannot personally verify it, I am told that in the health coverage arena, there are companies and other institutions that recognize one kind of partnership and not the other. Now, I ask you, does that make it right? Of course not. It reminds me of when I was growing up and my mother would spout these old sayings she had that would drive a point home. I heard this one dozens of times - maybe you did, too: "If Suzi Q. jumps in the lake, are you going to jump in, too?" I got the point loud and clear, and that was the end of that.

It matters not that our health insurance would cover same sex but not opposite sex couples; and . . . it matters not that some companies and some universities might extend benefits to same gender but not to opposite gender couples. What matters is doing what is right!

The action taken by the Administration is a blatant example of discrimination at its worst. And to try to pass it off as "fair" would be an enormous stretch of one's imagination.

I would have much preferred to have had a frank and open discussion among all the Board members and the Administration. I believe it would have been helpful and informative for all of us to exchange ideas and opinions regarding this issue. But it was too late.

I had made my opinion known, but by the time I was made aware of the immediacy of the issue, the Administration had already acted. In all good conscience, I cannot let this just slip by without comment.

Every once in a while there's an outcry about a controversial matter affecting a business or institution, and the negative consequences of certain decisions are wildly aired in public. That's when I ask myself, "Where was the Board when all this was going on?"

Whether or not the Administration has the authority to take action in certain instances, does not diminish my responsibility as a Board member.

That is the reason I am stating my opinion on this issue today. I believe so strongly that the action taken by the Administration is so discriminatory that I need to make my opinion a part of the official record.

President Gilbertson stated that the matter of health benefits does not fall within the retained authorities of the Board, and the Board has not generally looked at matters as detailed as eligibility for health care coverage. Therefore, he felt this decision was under his authority. The Administration did check with the University's insurers as to whether health benefits could be extended to cover opposite sex domestic partners as well as same sex partners, and was advised that there is no such category as opposite sex domestic partners.

In response to a question as to why insurance companies would cover same sex domestic partners, but not opposite sex partners, Trustee Cotter stated she understood that from an insurance standpoint, opposite sex couples have the opportunity to get married and to have that contract legally recognized, while same sex couples do not - at least not in the State of Michigan and most other states, except perhaps California and Vermont.

President Gilbertson noted: "I think Vermont recognizes what they call civil unions."

Trustee Cotter reiterated that the insurance companies are looking at legally binding contracts.

President Gilbertson added that the insurance companies have a series of questions to determine whether people of the same sex are roommates or domestic partners. There is a relatively standardized, well-recognized definition under the insurance coverage.

Trustee Law stated: "This is not about a financial issue, and presumably, if an insurance carrier had a way of covering opposite sex domestic partners, we would do that."

President Gilbertson replied: "I certainly would like that. It was my hope that we could do that, but we've been frustrated with the lack of available insurance coverage."

Trustee Sedrowski asked how this had all come about.

President Gilbertson answered: "This is due to a number of inquiries from employees. We did a survey of other major employers - not just in higher education, but in the region - and found that our previous practice was really not in keeping with what has become the practice of virtually every major employer in the region, and of many in higher education. We think [the new coverage] recognizes a group of employees and provides fairness for them. I wish we could make it perfectly fair. I think this is perhaps where Ruth and I might disagree. I wish we could make it perfectly fair and allow opposite sex domestic partners this opportunity. We simply don't have that capacity, so I think we approach greater fairness by doing this than by doing nothing at all for domestic partners. Again, I certainly wish we could go the whole way - I would prefer to do that - but we just don't have that capacity."

Trustee Law stated: "I certainly support inclusion to providing the benefits broadly, rather than exclusion. But I do understand where [Trustee Braun is] coming from and I share your concern to the extent that we're offering coverage to one group and not to others - that we are being discriminatory."

Trustee Sedrowski noted: "I'm wondering if it's not discriminatory. There's nothing special being created other than offering the same sets of benefits that others have already offered their employees. Is that what's taking place here?"

President Gilbertson replied: "Yes. Essentially the University has limited its contribution for health care to employees. Essentially too, the difference between the individual coverage and the family coverage is the responsibility of the employees. It's roughly the difference between what the coverage is and what we provide, so there is no economical impact of measurable size here. This basically expands the definition of those eligible for family coverage to include those domestic partners. The insurer, then, has defined that to be same sex."

VII. ADJOURNMENT

13) Motion to Adjourn

BM-997 It was moved and supported that the meeting be adjourned.

The motion was APPROVED unanimously.

The meeting was adjourned at 3:37 p.m.

___________________________

Linda L. Sims

Chair

___________________________

D. Brian Law

Secretary

___________________________

Jo A. Stanley

Recording Secretary

Secretary to the Board of Control