SAGINAW VALLEY STATE UNIVERSITY

I. CALL TO ORDER

Chairperson Yantz called the meeting to order at 10:03 a.m. with Board members Braun, Cotter, Gamez, Karu, and Sims present.

II. PROCEDURAL ITEMS

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

President Gilbertson noted that the agenda had been carried forward from the regularly scheduled Formal Session of June 13, which had been postponed.

The agenda was APPROVED as distributed.

B. Approval of Minutes of May 6, 2005 Regular Formal Session of the Board of Control

It was moved and supported that the minutes of the May 6, 2005 Regular Formal Session of the Board of Control be approved.

The minutes were unanimously APPROVED as written.

C. Communications and Requests to Appear Before the Board

President Gilbertson introduced Dr. Marwan Wafa, the new Dean of the College of Business and Management.

Ron Trepkowski, Staff Member of the Month for April, and Jennifer Neitzel, Staff Member of the Month for June, were presented to the Board. (See Appendix One: Trepkowski, and Appendix Two: Neitzel.)

Chairperson Yantz thanked Trustee Sims for an outstanding term of office as Board Chair. He noted: “Linda has probably opened up more buildings on the University’s campus in two years than all of the rest of us over the 40 years we’ve been here.”

D. Recognition of the Official Representative of the Faculty Association

Professor Camille Cammack, Vice President of the Faculty Association, told the Board that Marcia Shannon (President of the Faculty Association) had been in a serious automobile accident and had asked her to attend the Board meeting.

Professor Cammack updated the Board on the status of the Faculty Association’s renegotiation of their contract with the University, and discussed the renewal of General Education courses, the accreditation of various programs, and the research projects in which numerous faculty are participating. She noted that the faculty will miss Dr. Robert Yien when he retires as Vice President for Academic Affairs. At the same time, they are looking forward to participating in a nation-wide search and hope to find someone of his caliber to fill the position.

Professor Cammack added that the leadership of the Faculty Association and the faculty members themselves were always happy to talk with Board members, both formally and informally, should they have any questions.

III. ACTION ITEMS

1. Resolution to Approve Confirmation of Board Members for Previously Authorized Charter Schools

RES-1643 It was moved and supported that the following resolution be adopted:

WHEREAS, The Saginaw Valley State University Board of Control, the schools’ authorizing agent, requires that University-Chartered Schools’ Boards of Directors have a minimum of five members and a maximum of nine members; and

WHEREAS, Individual Charter Schools have a desire to replace Board members who have submitted their resignation; and

WHEREAS, Certain Charter Schools have a desire to have parents of students represented on their Board of Directors; and

WHEREAS, Certain Charter Schools desire to reappoint a board member whose term of office has expired;

NOW, THEREFORE, BE IT RESOLVED, That the individuals listed below be appointed by the Saginaw Valley State University Board of Control as new members of the Board of Directors of the following Charter Schools.

Cesar Chavez Academy, Detroit

Patrick Irwin Reappointment Term: 7/1/05 – 6/30/08

Gloria Kosila Appointment Term: 7/1/05 – 6/30/06

Ms. Kosila holds a supervisory position at a local CVS Pharmacy photo lab in Detroit. She has lived in the area of the Academy all her life and feels that the children at Cesar Chavez are entitled to the best education they can get. Ms. Kosila believes that her skills in working with the public will be an asset to the Academy board.

Michael Murray Appointment Term: 7/1/05 – 6/30/07

Mr. Murray earned his BA in Accounting and Finance at University of Michigan and his Master of Science in Taxation from Walsh College. He currently works as a satellite auditor for the State of North Carolina out of his home office. Mr. Murray previously served on the Hope of Detroit Academy. This experience plus his background in finance will be a great addition to the Academy board.

Antonio Ramirez Reappointment Term: 7/1/05 – 6/30/08

Chandler Park Academy, Detroit

Marie Inniss Reappointment Term: 7/1/05 – 6/30/08

Phares A. Noel II Reappointment Term: 7/1/05 – 6/30/08

Chatfield School, Lapeer

Bruce Cady Reappointment Term: 7/1/05 – 6/30/08

Creative Learning Academy, Beaverton

Jeremy Dicken Reappointment Term: 7/1/05 – 6/30/08

Detroit Community High School, Detroit

Lee Meadows Reappointment Term: 7/1/05 – 6/30/08

William Moran Reappointment Term: 7/1/05 – 6/30/08

John Zettner Reappointment Term: 7/1/05 – 6/30/08

Grattan Academy, Belding

Gregory Carroll Reappointment Term: 7/1/05 – 6/30/08

Tracy Ford Reappointment Term: 7/1/05 – 6/30/08

HEART Academy, Detroit

Nadine Cook Reappointment Term: 7/1/05 – 6/30/08

James Flanegin Reappointment Term: 7/1/05 – 6/30/08

Deborah Jones Reappointment Term: 7/1/05 – 6/30/08

Judith Lafata Appointment Term: 7/1/05 – 6/30/06

Ms. Lafata is a Registered Nurse with her Bachelor of Science in Human Services and her Master’s in Health Care Administration. She currently serves as Administrative Director of Women’s and Children’s Services at St. John Detroit Riverview Hospital. Ms. Lafata has prior board experience as a member of the Michigan Association of Nurse Executives. She initiated a mentoring program for students interested in a nursing career and has 40 years experience in nursing. Her years of experience in the medical field and love for education will make her a great asset to the Academy board.

Landmark Academy, Kimball

Randall Gearhart Reappointment Term: 7/1/05 – 6/30/08

Kimberly Hibbard Reappointment Term: 7/1/05 - 6/30/08

Merritt Academy, New Haven

Thomas Denewith Reappointment Term: 7/1/05 – 6/30/08

William LaFranca Reappointment Term: 7/1/05 – 6/30/08

Michigan Health Academy, Detroit

Barbara Medvec Appointment Term: 7/1/05 – 6/30/08

Ms. Medvec earned her BS in Nursing from the University of Michigan and an MS in both Nursing and Administration from Madonna University. She currently serves as Chief Nursing Officer at Oakwood Healthcare System in Dearborn. Ms. Medvec believes that her healthcare background and leadership skills will be an asset to the Academy board.

Northwest Academy, Charlevoix

Richard Beemon Appointment Term: 7/1/05 – 6/30/08

Mr. Beemon is a self employed carpenter in the Charlevoix area. He feels that his business management skills, problem solving abilities, and willingness to serve the interests of parents and students will be an asset to the Academy board.

Joseph Seidel Appointment Term: 7/1/05 – 6/30/08

Mr. Seidel earned his BA in French and Culture from Michigan State University. Mr. Seidel is semi-retired from the United States Army where he had over 20 years experience in planning, operations, and security management. Mr. Seidel feels his extensive experience in human dynamic relationships would be an asset to the Academy board.

Oakland International Academy, Farmington Hills

Dr. Khalid Almasmari Appointment Term: 7/1/05 – 6/30/08

Dr. Almasmari is a graduate of Life University, School of Chiropractic. He is owner and provider of Family Heath Center and Rehab in Hamtramck. Dr. Almasmari feels his business ethics (hard working, fairness, and equality) will be an asset to the Academy board.

Dr. Rafil Basheer Reappointment Term: 7/1/05 – 6/30/08

Dr. Alaa Elmoursi Reappointment Term: 7/1/05 – 6/30/08

Jalal Jawany Appointment Term: 7/1/05 – 6/30/06

Mr. Jawany earned his BS in Computer Engineering from the University of Michigan and is currently pursuing a Master’s Degree in Electrical Engineering. Mr. Jawany currently works at TRW Automotive as an Engineer. He believes in quality education and feels he would be an asset to the Academy board.

Pontiac Academy of Excellence, Pontiac

Ron Borngesser Reappointment Term: 7/1/05 – 6/30/08

Ernest Russell Reappointment Term: 7/1/05 – 6/30/08

Saginaw Preparatory Academy, Saginaw

Dawn Hinton Appointment Term: 7/1/05 – 6/30/08

Ms. Hinton is an Associate Professor in the Department of Sociology here at Saginaw Valley State University. She been involved in a number of University based service projects. Her extensive education background and leadership skills will be a great asset to the Academy board.

Barbara Little Appointment Term: 7/1/05 – 6/30/08

Ms. Little currently owns and operates her own legal firm, Little & Associates, P.C. in Saginaw. She provides legal services primarily for non-profit/profit corporations in business structuring, healthcare, and education law. Ms. Little has previous experience sitting on various boards, including a charter school board and believes her legal background could be beneficial to the Academy board.

Harold Tivis Appointment Term: 7/1/05 – 6/30/08

Mr. Tivis earned his MS in Industrial Education from Pittsburg State University in Kansas. He is a retired teacher/counselor from the Saginaw/Buena Vista school districts. Mr. Tivis desires to stay involved in the education community and feels his 39 years of experience in education will be a benefit to the Academy board.

Sunrise Education Center, East Tawas

Connie Finley Appointment Term: 7/1/05 – 6/30/08

Ms. Finley owns and operates a licensed daycare in National City. Ms. Finley believes that her love for children and their education will be an asset to the Academy board.

Evard Kirby Reappointment Term: 7/1/05 – 6/30/08

Judith Pung Appointment Term: 7/1/05 – 6/30/07

Ms. Pung earned her BS in Business Administration from Wayne State University. She is a recent Real Estate Agent retiree. Ms. Pung believes that her 35 years of business management will be a great benefit to the Academy board. Traverse Bay Community School, Traverse City

Barbara Budros Reappointment Term: 7/1/05 – 6/30/08

John Yeager Reappointment Term: 7/1/05 – 6/30/08

White Pine Academy, Leslie

Rachelle Padgett Reappointment Term: 7/1/05 – 6/30/08

Winans Academy of Performing Arts, Detroit

Delores McFarland Reappointment Term: 7/1/05 – 6/30/08

Beverly Thomas Reappointment Term: 7/1/05 – 6/30/08

Isaac Wordlaw Reappointment Term: 7/1/05 -6/30/08

Mr. Ronald Schneider, Director of School and University Partnerships, told the Board that charter school Board members are generally appointed at the June and January meetings. Candidates for Board positions are required to fill out an application and a conflict of interest survey and to provide a résumé to the Partnership Office. A criminal record check is also done on each individual. The motion was APPROVED unanimously.

2. Resolution to Approve the Re-authorization of Saginaw Preparatory Academy

RES-1644 It was moved and supported that the following resolution be adopted:

WHEREAS, The University has granted a contract (the “Contract”) to Saginaw Preparatory Academy (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;

NOW, THEREFORE, BE IT 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, 2008.

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 this charter school had been in some difficulty a year ago, and had been given only a one-year authorization as opposed to the standard three years. Since that time, the school’s management firm has been replaced, and SVSU’s College of Education has become more deeply involved with the school.

Mr. Schneider stated that the Saginaw Preparatory Academy was one of the lowest-performing schools in Saginaw County last year, but is now one of the higher-performing schools. Working with SVSU staff and faculty, they have instituted a curriculum which is aligned to the Michigan Core Curriculum and have made adequate yearly progress.

The motion was APPROVED unanimously.

3. Resolution to Approve the Occupational Therapy Entry-Level Master’s Degree Program

RES-1645 It was moved and supported that the following resolution be adopted:

WHEREAS, The American Occupational Therapy Association, Inc. has required that as of 2007, the academic qualification determining eligibility for certification as a professional occupational therapist will be a master’s degree; and

WHEREAS, Educational institutions have been notified that beginning January 1, 2007, all occupational therapy programs will be accredited only at the postbaccalaureate degree level by the Accreditation Council for Occupational Therapy Education; and

WHEREAS, The accredited occupational therapy program in the Crystal M. Lange College of Nursing and Health Sciences at Saginaw Valley State University has offered a baccalaureate degree and will graduate its last class in 2006; and

WHEREAS, The occupational therapy program at SVSU has developed an entry-level master’s degree program and has received the appropriate internal and external approvals;

NOW, THEREFORE, BE IT RESOLVED, That the SVSU Board of Control approve the transition of the occupational therapy program from a baccalaureate degree to an entry-level master’s degree and shall implement the new program beginning July 1, 2005.

Dr. Janalou Blecke, Dean of the College of Nursing and Health Sciences, told the Board that the knowledge and skills required of those in the Occupational Therapy field have become more than a baccalaureate degree can provide. The knowledge explosion has precipitated a movement toward required master’s degrees in other allied health professions as well.

The motion was APPROVED unanimously.

4. Resolution to Adopt General Fund Operating Budget for FY2006 and Amend General Fund Operating Budget for FY2005

RES-1646 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 attached General Fund Budget Summary which establishes the FY2006 operating budget and amends the FY2005 operating budget be adopted; and,

BE IT FURTHER RESOLVED, That the attached tuition and fee schedule of rates effective beginning with fiscal year 2006 fall semester also be adopted. (See Appendix Three: Budget.)

President Gilbertson told the Board that there was still a high level of uncertainty as to the outcome of the State budget deliberations, but that the University needed to take action at this time. He stated: “The proposed budget obviously requires a tuition increase in anticipation that State support will be modest. We’ve recommended a total increase in mandatory tuition and fees which is equal to about 7.5% of the current year’s base. This is on the low side relative to the actions of our sister institutions, and with this increase we will still have, by a considerable margin, the lowest tuition of any public university in the State.

“Our highest priority in this budget has been to increase the number of full-time faculty, and this budget reflects an increase of 13 new full-time faculty positions. Another high priority was to increase the scholarship budget . . . that is increased by 17%.

“We have also experienced a number of unavoidable cost increases – utilities in particular – by about a 5.2% increase in our utility budget. This is in spite of our efforts to save funds in terms of our utility usage and how we pay our utilities. This is a spare, lean budget. As always, we wish we didn’t have to increase tuition at all, but the reality is that we simply can’t command all cost increases to stop, particularly in such a labor-intensive organization. . . . This budget also anticipates that we will be serving a student body that is roughly 2.5% larger than the current one, which requires more sections and more services.”

The motion was APPROVED unanimously.

5. Resolution to Authorize Borrowing of Funds to Meet Temporary Cash Flow Deficits

RES-1647 It was moved and supported that the following resolution be adopted:

WHEREAS, The Board of Control of Saginaw Valley State University (the “Board”), in the exercise of its constitutional duties has determined that it is necessary and expedient to provide for the borrowing of monies in amounts not to exceed $3,500,000.00 at any time outstanding on terms set forth herein and in the Agreement (hereinafter defined) for the purpose of providing necessary funds to meet temporary cash flow deficits; and

WHEREAS, It will be necessary for the Board to enter into a Loan Agreement (the “Agreement”) whereby the sum of up to $3,500,000.00 may be borrowed from Standard Federal Bank N.A., a national banking association (the “Bank”) on a “line-of-credit” basis, which Loan Agreement shall be substantially in the form of previous Loan Agreements executed for similar purposes, including provisions for interest on drawings to be established on either a tax-exempt or taxable basis, and if tax-exempt, on either a “qualified tax-exempt obligation” basis or on a non-qualified basis;

NOW, THEREFORE, BE IT RESOLVED, That the Board may borrow for such purposes the sum of not to exceed $3,500,000.00 from the Bank upon the terms and conditions to be more fully set forth in the Agreement, and in evidence thereof issue and deliver its note therefore as described in the Agreement (the “Note”). Advances under the Agreement shall be made at the request of the Board’s authorized agents, and shall be repayable at any time by the Board, but not later than December 31, 2007. Interest, if fully tax-exempt, shall accrue on the sums outstanding, at the interest rate equal to not more than 80% of the Prime Rate, as shall be defined in the Agreement (subject to increase in case of adverse federal tax treatment of the interest on the Note, or, if the Agreement so provides, in the event the Note cannot be designated as a “qualified tax-exempt obligation”) and, if fully taxable, at the rate to be established in Agreement, but not in excess of the Prime Rate plus one/half percent per annum, and shall be payable monthly, all as shall be provided in the Agreement. Principal and interest due under the Agreement and Note are payable from and secured by a first lien on the General Revenues of the Board (as shall be defined in the Agreement in a manner generally consistent with the definition contained in a certain Trust Agreement dated January 1, 2001 between the Board and Michigan National Bank, as trustee). The first lien on the General Revenues established by this Resolution and the Agreement shall be on a parity basis with the first lien thereon established as security for certain outstanding debt of the Board.

BE IT FURTHER RESOLVED, That the President of Saginaw Valley State University or the Vice President for Administration and Business Affairs of Saginaw Valley State University be and each of them are hereby authorized, empowered and directed in the name of the Board and as its corporate act and deed to execute and enter into the Agreement and a Note in the amount of $3,500,000.00 to the Bank and to request the Bank to make advances under the Agreement and Note in amounts not to exceed at any time outstanding $3,500,000.00, and to execute and deliver any documents or certificates in connection therewith; and

BE IT FURTHER RESOLVED, That the said officers be and each of them are hereby authorized, empowered and directed for and in the name of the Board and as its corporate act and deed to make, consent to and agree to any changes in the terms and conditions of said Agreement from prior similar agreements and said Note which they deem necessary, expedient and proper prior to or at the time of execution of the said Agreement and Note, but no such change shall increase the maximum amount to be borrowed, the interest rate to be paid thereon, the payments required to be made, or the security pledged from the terms of this Resolution; provided, however, nothing herein contained shall be construed as limiting the right of said officers to alter or change the date of issue of said Note, or the date of payment of interest; and

BE IT FURTHER RESOLVED, That the said officers, in the execution of said Agreement and Note, shall not pledge the credit of or create any liability on the part of the State of Michigan, the Board or any member or officer of the Board, or any of their successors, other than to pledge the General Revenues as herein provided; and said Agreement and Note are not intended and shall not create any indebtedness of the State of Michigan or the Board within the meaning of any State constitutional debt limitation or restriction; and

BE IT FURTHER RESOLVED, That all resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution be and the same hereby are rescinded.

President Gilbertson told the Board that the University keeps a line of credit open for unforseen emergencies. This was last used in 1983. It is not anticipated that the line of credit will be used, and there is no financial charge to renew it.

The motion was APPROVED unanimously.

6. Resolution to Approve Natural Gas Purchasing Agreement

RES-1648 It was moved and supported that the following resolution be adopted:

WHEREAS, SVSU’s current natural gas supply agreement with the State of Michigan expires on August 31, 2005; and

WHEREAS, The University has determined that it is in its best interest to extend its cooperative purchasing agreement with the State of Michigan 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 for the period of September 1, 2005 through August 31, 2007.

James G. Muladore, Vice President for Administration and Business Affairs, noted that the University had entered into this agreement approximately a year ago. The agreement allows various State departments and Michigan’s public universities to consolidate the purchase of natural gas, thereby achieving a lower price than the market rate. Resolution 1648 would extent the contract through August 31, 2007.

The motion was APPROVED by a vote of 5 to 0. (Trustee Sims abstained due to a possible conflict of interest.)

7. Resolution to Approve Land Transaction

RES-1649 It was moved and supported that the following resolution be adopted:

WHEREAS, The University desires to sell a parcel of property located immediately south of the Wickes Stadium water retention pond near Pierce Road;

NOW, THEREFORE, BE IT RESOLVED, That the President or the Vice President for Administration & Business Affairs be hereby authorized to sell the above referenced property; and

BE IT FURTHER RESOLVED, That the precise terms of these transactions will be determined by the President or the Vice President for Administration & Business Affairs working in consultation with University legal counsel.

President Gilbertson told the Board that Resolution 1649 refers to 3/10ths of an acre of land which is located in the purchaser’s backyard, immediately south of the Wickes Stadium water retention pond near Pierce Road. The purchaser would like to consolidate his holdings and solidify his ownership of the land.

Mr. Muladore noted that the University has had the property appraised, and the purchaser has agreed to pay fair market value plus the cost of the transaction. This resolution would authorize the administration to complete the sale of the property.

The motion was APPROVED unanimously.

IV. REMARKS BY THE PRESIDENT

President Gilbertson noted that fall semester will begin in six weeks. Capital projects are well underway, and new housing is essentially completed, except for some landscaping and final touches. Hiring is still taking place, as is freshman orientation.

V. OTHER ITEMS FOR CONSIDERATION OR ACTION

8. Motion to Move to Informal Session to Discuss Personnel Evaluations and Collective Bargaining

BM-1022 It was moved and supported that the Board move to Informal Session to discuss personnel evaluations and collective bargaining.

The motion was APPROVED unanimously.

The Board moved to Informal Session at 10:40 a.m. and reconvened in Regular Formal Session at 12:20 p.m.

(Trustee Sedrowski joined the meeting at 11:05 a.m.)

VI. ADJOURNMENT

9. Motion to Adjourn

BM-1023 It was moved and supported that the meeting be adjourned.

The motion was APPROVED unanimously.

The meeting was adjourned at 12:21 p.m.

Respectfully submitted:

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Jerome L. Yantz

Chair

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K..P. Karunakaran

Secretary

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Jo A. Stanley

Recording Secretary

Secretary to the Board of Control