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SAGINAW VALLEY STATE UNIVERSITY
BOARD OF CONTROL
JULY 9, 2004
REGULAR FORMAL SESSION
INDEX OF ACTIONS
RES-1606 RESOLUTION TO APPROVE CONFIRMATION OF
BOARD MEMBERS FOR PREVIOUSLY AUTHORIZED
CHARTER SCHOOLS
APPROVED. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
RES-1607 RESOLUTION TO APPROVE THE ADDITION OF
SEVENTH AND EIGHTH GRADES TO SUNRISE
EDUCATION CENTER
APPROVED. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
RES-1608 RESOLUTION TO APPROVE NEW MEMBERS AND
REAPPOINTMENTS TO THE SAGINAW VALLEY
STATE UNIVERSITY BOARD OF FELLOWS
APPROVED. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
RES-1609 RESOLUTION TO APPOINT A FINANCIAL
INSTITUTION FOR UNIVERSITY BANKING
SERVICES
APPROVED. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
RES-1610 RESOLUTION TO APPROVE CABLE TELEVISION
CONTRACT
APPROVED. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
RES-1611 RESOLUTION TO APPROVE NATURAL GAS
PURCHASING AGREEMENT
APPROVED. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
RES-1612 RESOLUTION TO ADOPT GENERAL FUND
OPERATING BUDGET FOR FY 2005 AND
TO AMEND GENERAL FUND OPERATING
BUDGET FOR FY 2004
APPROVED. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
RES-1613 RESOLUTION TO ADOPT REVISED
SVSU STUDENT CODE OF CONDUCT
APPROVED. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
RES-1614 RESOLUTION TO APPROVE AMENDMENT TO
PUBLIC SCHOOL ACADEMY CONTRACT
APPROVED. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
BM-1007 MOTION TO MOVE TO INFORMAL SESSION
TO DISCUSS PERSONNEL EVALUATIONS
APPROVED. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
BM-1008 MOTION TO APPROVE MARKET ADJUSTMENT
TO SALARY OF JAMES G. MULADORE
APPROVED. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
BM-1009 MOTION TO ADJOURN
APPROVED. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
MINUTES
BOARD OF CONTROL
Regular Formal Session
July 9, 2004
Board of Control Room Third Floor Wickes Hall
Present: Braun
Cotter
Gilbertson
Karu
Law
Sedrowski
Sims
Yantz
Absent: Gamez
Others
Present: L. Beuthin
D. Boehm
J. Boehm
D. Dorion
J. Dwyer
K. Gerard
G. Hamilton
M. Hammerbacher
M. Malone
R. Maurovich
J. Muladore
L. O’Daniels
S. Payne
C. Ramet
R. Schneider
M. Shannon
J. Stanley
R. Thompson
M. Thorns
J. Vogl
R. Yien
Press (2)
I. CALL TO ORDER
Chairperson Sims called the meeting to order at 8:30 a.m.
II. PROCEDURAL ITEMS
A. Approval of Agenda and Additions to and Deletions from Agenda
The agenda was approved as distributed.
B. Approval of Minutes of May 7, 2004 Regular Formal Session of the Board of Control
It was moved and supported that the minutes of the May 7, 2004 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, told the Board that in addition to teaching over the summer, many faculty are participating in the new strategic planning initiative, doing research, taking classes and updating their skills, traveling, writing, and publishing. Cardinalis was published, and the faculty of the College of Nursing and Health Sciences are busy preparing for their College’s professional accreditation.
D. Communications and Requests to Appear Before the Board
Diane Boehm, Staff Member of the Month for May, Kathie Gerard, Staff Member of the Month for June, and Dan Dorion, Staff Member of the Month for July, were presented to the Board. (See Appendix One: Boehm, Appendix Two: Gerard, and Appendix Three: Dorion.)
III. ACTION ITEMS
1. Resolution to Approve Confirmation of Board Members for Previously Authorized Charter Schools
RES-1606 It was moved and supported that the attached resolution be adopted. (See Appendix Four: Charter Schools)
Mr. Ronald Schneider, Director of School and University Partnerships, told the Board that criminal record and conflict of interest checks had been run on the proposed charter school Board members.
The motion was APPROVED unanimously.
(Trustee Braun left the meeting.)
2. Resolution to Approve the Addition of Seventh and Eighth Grades to Sunrise Education Center
RES-1607 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 K-6 for Sunrise Education Center; and
WHEREAS, The Sunrise Education Center must currently reject the application of seventh and eighth grade students; and
WHEREAS, The current students being served by Sunrise Education Center and their parents have requested the opportunity to continue their education through seventh and eighth grades; and
WHEREAS, The Sunrise Education Center has a desire to provide an education service for all middle school youth;
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 seventh grade students for the 2004-05 school year beginning August 2004 and eighth grade students for the 2005-06 school year beginning August 2005.
Mr. Schneider noted that Sunrise Education Center recently moved to a larger facility and would like to add 7th and 8th grades. The school has been growing, and they have an excellent academic record.
The motion was APPROVED unanimously.
(Trustee Braun rejoined the meeting.)
3. Resolution to Approve New Members and Reappointments to the Saginaw Valley State University Board of Fellows
RES-1608 It was moved and supported that the following resolution be adopted:
WHEREAS, The Saginaw Valley State University Board of Fellows shall consist of a minimum of twelve and a maximum of forty members who shall serve for four-year terms; and
WHEREAS, Raana W. Akbar, William H. Burch, Gary S. Glaza, Gary J. Hughes, Richard P. Nash, and Robert B. Stafford have been recommended for appointment as new members; and
WHEREAS, Vicente Castellanos, Anne M. DeBoer, John W. Nagy, Ernest E. Paulick, and Jerome L. Yantz have been recommended for reappointment to the Board of Fellows;
NOW, THEREFORE, BE IT RESOLVED, That the new members and the reappointed members serve on the Saginaw Valley State University Board of Fellows as stipulated in the organization’s bylaws.
President Gilbertson reviewed the qualifications of the nominees to serve on the Board of Fellows.
The motion was APPROVED unanimously.
4. Resolution to Appoint a Financial Institution for University Banking Services
RES-1609 It was moved and supported that the following resolution be adopted:
WHEREAS, SVSU issued in February 2004 a Request for Proposal for Banking Services to qualified financial institutions; and
WHEREAS, The University’s objective is to engage a financial institution capable of providing comprehensive banking and treasury management services that support efficient operations and are priced competitively; and
WHEREAS, The proposals received from the various financial institutions were reviewed thoroughly by University staff and discussed with the Board of Control’s Finance & Audit committee:
NOW, THEREFORE, BE IT RESOLVED, That based upon the recommendation of the Finance & Audit Committee, the President and/or Vice President for Administration & Business Affairs be authorized to enter into a contract for various specified banking and treasury management services with Standard Federal Bank for a period not to exceed five years.
Trustee Law told the Board that Resolution 1609 relates to a broader, sustained effort to re-examine all of the University’s policies and procedures and to try to create more efficient and cost-effective ways of performing some of these processes. The Finance and Audit Committee had asked the staff to re-examine the University’s banking relationships and operations in light of the fact that there have been so many changes both in the banking industry and at SVSU over the last several years. A Request for Proposals was then submitted to several banking institutions. This resolution would retain the services of Standard Federal Bank for the University’s primary banking relationship, based upon overall costs and their excellent performance in the past.
James Muladore, Vice President for Administration and Business Affairs, noted that SVSU was looking for a financial institution that could provide not only the traditional core services, but more efficient electronic transactions as well. Standard Federal has been in the forefront of this process over the past years, and the University has enjoyed a good working relationship with them.
The motion was APPROVED unanimously.
5. Resolution to Approve Cable Television Contract
RES-1610 It was moved and supported that the following resolution be adopted:
WHEREAS, Cable television service is provided to SVSU’s student housing units and to various other areas on campus; and,
WHEREAS, The University has negotiated a five-year service agreement with Charter Communications;
NOW, THEREFORE, BE IT RESOLVED, That the President and/or Vice President for Administration & Business Affairs be authorized to enter into a Bulk Service Agreement and any other required contractual documents with Charter Communications for the provision of cable television service to the University.
Mr. Muladore told the Board that the Federal Communications Commission has granted Charter Communications the exclusive right to offer cable service in this area. The only alternative the University would have would be a dish system requiring an extensive infrastructure investment. The contract negotiated with Charter would cost $625,000 over a five-year period. This would provide cable service to approximately 1,800 students and to 500 outlets on campus.
The motion was APPROVED unanimously.
6. Resolution to Approve Natural Gas Purchasing Agreement
RES-1611 It was moved and supported that the following resolution be adopted:
WHEREAS, SVSU’s current natural gas supply agreement expires on August 31, 2004; and
WHEREAS, The University has determined that it is in its best interest to enter into a cooperative purchasing agreement for the purchase of natural gas;
NOW, THEREFORE, BE IT RESOLVED, That the President and/or Vice President for Administration & Business Affairs be authorized to enter into natural gas purchase contracts with the State of Michigan for the period of September 1, 2004 through August 31, 2005.
Mr. Muladore told the Board that Resolution 1611 would grant the President and/or Vice President for Administration & Business Affairs the authority to enter into a cooperative arrangement with the State of Michigan and with several sister institutions to purchase natural gas. It is anticipated that the cooperative effort would save the University approximately 3-5% on the prevailing market rate of natural gas.
Chairperson Sims noted that she was abstaining from the vote because of her affiliation with Consumers Energy.
The motion was APPROVED by a vote of 6 to 0.
7. Resolution to Adopt General Fund Operating Budget for FY2005 and Amend General Fund Operating Budget for FY2004
RES-1612 It was moved and supported that the following resolution be adopted:
WHEREAS, The Administration and Board of Control of the University have determined the level of General Fund expenditure allocations required for personnel, services, supplies and equipment to maintain the quality of instructional and support services provided to students;
NOW, THEREFORE, BE IT RESOLVED, That the General Fund Budget Summary, which revises the FY2004 operating budget and establishes the FY2005 operating budget, be adopted; and,
BE IT FURTHER RESOLVED, That the tuition and fee schedule of rates effective beginning with fiscal year 2005 fall semester also be adopted; and
BE IT FURTHER RESOLVED, That the resident undergraduate tuition and mandatory fee rates as adopted by this resolution may be adjusted by the President, either if necessary to conform with State policy announced subsequent to this date, or in the event the State appropriation enacted for FY 2005 is at a level which permits such a reduction, or both.
(See Appendix Five: Budget)
President Gilbertson told the Board there are two principles at play in the State budget which will affect SVSU’s budget. The first is the matter of the restoration of part of Governor Granholm’s 5% Executive Order cut (approximately $1.3 million) to the University’s base appropriation, which was imposed in December of 2003. Governor Granholm subsequently proposed the restoration of 3% of that 5% cut, or $800,000. Both Houses of the Legislature have now approved budgets for higher education which included the restoration of that 3%, but there is still no assurance the restoration will happen. There is also the possibility of even further cuts, although this is unlikely.
The second companion piece to the Executive Budget was language that required institutions to restrict their tuition rate increases to 2.4% in order to qualify for the 3% restoration. The most recent version of the tuition restraint concept was a House version that had the limitation as 3% of base tuition, or a dollar figure which was representative of 3% times the mean tuition level charged by Michigan’s public universities ($250). For SVSU, this would translate into a 5.2% tuition increase restriction.
In essence, the proposed budget model is based upon the presumption that the 3% restoration ($800,000) will occur in the prior fiscal year (FY2004) and that it will be carried into FY2005. It was also proposed that the Board enact tuition rates that would constitute a 5.2% increase on mandatory tuition and fees, which would comply with the House-passed version of the budget. SVSU’s tuition would still remain the lowest among the public universities in the State. The tuition and fee increase would meet the House committee’s requirements. Given that the requirements may change, however, the proposed resolution contains sufficient flexibility to deal with what the State dictates; the University could reduce tuition to meet the requirements to restore the 3% once the State has completed the higher education budget. If necessary, a permanent adjustment could be proposed at the Board’s August meeting.
Trustee Cotter suggested that the last paragraph of the resolution be amended to read: “Be it further resolved, that the resident undergraduate tuition and mandatory fee rates as adopted by this resolution may be adjusted by the President if necessary to conform with State policy announced subsequent to this date, or in the event the State appropriation enacted for FY2005 is at a level which permits such a reduction, or both.”
The motion was unanimously APPROVED as amended.
8. Resolution to Adopt Revised SVSU Student Code of Conduct
RES-1613 It was moved and supported that the following resolution be adopted:
WHEREAS, It has been the practice to review and revise the SVSU Student Code of Conduct periodically; and
WHEREAS, There are certain procedural changes in the SVSU Student Code of Conduct that have been recommended by the Vice President for Student Services and Enrollment Management and reviewed by Legal Counsel;
NOW, THEREFORE, BE IT RESOLVED, That the SVSU Student Code of Conduct, as revised, is hereby adopted by the SVSU Board of Control. (See Appendix Six: Code)
Dr. Robert L. Maurovich, Vice President for Student Services and Enrollment Management, told the Board that the Student Code of Conduct sets forth the rights and responsibilities of students, the standards of behavior that are expected from students, and the process by which infractions of that code are handled.
Two minor procedural changes to the Student Code of Conduct are being proposed. The first change would delete reference to a student personal identification number (PIN), as these are no longer used by the University as an identifier for students. The second change revises the website address where the Internet, Electronic Communications and Computing Resources Acceptable Use Policy may now be accessed.
Members of the Academic, Student Affairs, and Personnel Committee and the University’s Legal Counsel have reviewed the proposed changes and recommend their approval.
The motion was APPROVED unanimously.
9. Resolution to Approve Amendment to Public School Academy Contract
RES-1614 It was moved and supported that the following resolution be adopted:
WHEREAS, The University has granted a contract (the “Contract”) to Mosaica Academy of Saginaw (the “Renewal Academy”) authorizing them to operate as a public school academy; and
WHEREAS, The University and the Renewal Academy wish to extend the term of their Contract; and
WHEREAS, The Renewal Academy’s Board of Directors desires to amend the Charter Contract between the University and the Academy, dated September 8, 1997, and its Articles of Incorporation and Bylaws to reflect a change in the Academy’s name;
NOW, THEREFORE, BE IT RESOLVED, That the Academy’s Charter Contract, Articles of Incorporation, and Bylaws shall be amended to reflect a change in the name from Mosaica Academy of Saginaw to Saginaw Preparatory Academy.
BE IT FURTHER RESOLVED, That the Contract between the University and Saginaw Preparatory Academy whereby the University authorized the academy to operate as a public school academy shall be amended to provide for the extension of the term thereof to June 30, 2005, with the provision that the Board will consider extending the contract if improvements satisfactory to the Board have been achieved prior to June 30, 2005;
BE IT FURTHER RESOLVED, That the President and/or the Director of School/University Partnerships, acting together or separately, be authorized and directed to execute such documents as may be necessary or desirable to accomplish these purposes.
President Gilbertson reminded the Board that for some time the University had been concerned about the performance of one of its Charter Schools, Mosaica Academy of Saginaw. There had been difficulties with test results and excessive staff turnover, as well as a number of other troubling issues, so the University was prepared to allow the charter to expire. The Academy, through its own local Board, has taken action to enact a number of changes, one of which was to replace its management firm (Mosaica Education, Inc.). A one-year extension of the Academy’s charter is being proposed to ascertain whether the changes that are being enacted will be sufficient to bring the school up to a satisfactory level.
Mr. Schneider stated that the charter school, under the new name of Saginaw Preparatory Academy, has met all of the University’s enrollment stipulations, and has selected the Leona Group to be their new educational service provider. The Academy and their former educational service provider, Mosaica Education, are working on a written agreement dismissing arbitration brought by Mosaica Education claiming that their contract with the Academy extended through 2005, and releasing their respective claims.
Mr. Schneider introduced Leah O’Daniels, Board President of Saginaw Preparatory Academy; Michael Malone, Executive Vice President of the Leona Group; and Sylvester Payne, Board Member of Saginaw Preparatory Academy.
Ms. O’Daniels stated: “. . . we have taken steps to remedy what we feel is the problem by choosing a new management company and by working with Saginaw Valley to make changes in our curriculum. . . . And I do want to thank Saginaw Valley and its Board of Control for giving us a second chance, because we were really in dire straights . . . . It had gotten to the point where . . . if our legal problems weren’t taken care of we were going to be a non-existent school. . . . We are located in Buena Vista Township . . . and we have surrounding neighborhoods where there are children who could really benefit from the Academy. So I want to thank you for giving us a second chance, for giving the community a second chance, and most of all, for giving our children a second chance, because we are needed and we are going to move forward, and I do feel confident about the decision that was made.”
The motion was APPROVED unanimously.
IV. INFORMATION AND DISCUSSION ITEMS
10. Update on Fall 2004 Enrollments
Dr. Maurovich reviewed the enrollment report for fall semester 2004. He noted that enrollments are very strong and indications are that normal projections for the fall semester will be achieved. A total student enrollment of approximately 9,424 is being projected, and the credit hour enrollment goal is 97,864.
V. REMARKS BY THE PRESIDENT
President Gilbertson updated the Board on the construction of the new front entrance sign and the Bay Road boulevard. He noted that the University is no longer pursuing the idea of reducing the size of the swimming pool in the Ryder Center, as the cost of doing so would be prohibitive.
Mr. Muladore discussed the savings achieved by refinancing some of the University’s existing debt.
Dr. Mamie Thorns, Special Assistant to the President for Diversity Programs, told the Board about a $75,000 National Council for Community and Education Partnership/SBC GEAR UP Supplemental grant the University had just received to work with 9th, 10th, and 11th grade students to help them prepare for college.
Maggie Hammerbacher updated the Board on Student Association plans for the upcoming academic year.
VI. OTHER ITEMS FOR CONSIDERATION OR ACTION
11. Motion to Move to Informal Session to Discuss Personnel Evaluations
BM-1007 It was moved and supported that the Board move to Informal Session to discuss Personnel Evaluations
The motion was APPROVED unanimously.
The Board moved to Informal Session at 9:52 a.m. and reconvened in Formal Session at 11:26 a.m. with Trustees Braun, Cotter, Karu, Law, Sedrowski, and Sims present.
12. Board Motion to Approve Market Adjustment to Salary of James G. Muladore
BM-1008 It was moved and supported that the Board approve a market adjustment of 5% to the salary of James G. Muladore, effective July 1, 2004.
The motion was APPROVED unanimously.
VII. ADJOURNMENT
13. Motion to Adjourn
BM-1009 It was moved and supported that the meeting be adjourned.
The motion was APPROVED unanimously.
The meeting was adjourned at 11:29 a.m.
Respectfully submitted:
___________________________
Linda L. Sims
Chair
___________________________
D. Brian Law
Secretary
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Jo A. Stanley
Recording Secretary
Secretary to the Board of Control
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