C E N T R A L • I CHI G A NUN I V E R SIT Y
BOA R DO' T R U S TEE S
October 4, 1985
Central Michigan University Board of Trustees
Mt. Pleasant, Michigan
October 4, 1985
Members present: Mr. Raymond A. LaBounty, Chair;
Dr. Bernadine N. Denning; Mr. Mitchell D. Kehetian;
Dr. Gordon N. Lambie; Ms. Rachael E. Moreno; Mr. William C.
Odykirk; Mr. Arthur E. Ellis, Interim President.
Members absent: Mrs. Margaret Ann Riecker, Mrs. Alice
Tomboulian.
Also attending: Dr. John E. Cantelon, Provost; Mr. James L.
Hill, Vice President for Student Affairs; Mr. Richard L. Miller,
Secretary to the Board of Trustees; Mr. Jerry R. Tubbs,
Treasurer of the Board of Trustees and Vice President for
Business and Finance.
The meeting was called to order by Chair LaBounty at 10:32 a.m.
It was moved by Ms. Rachael Moreno, seconded by Dr. Gordon
Lambie, and carried, that the minutes of the September 6, 1985
meeting be approved as submitted.
Krs. Alice Tomboulian arrived at 10:35 a.m.
IUDIT OF FINANCIAL REPORT: (Finance Committee)
It was moved by Dr. Bernadine Denning, seconded by Mr. Mitchell
Kebetian, and carried, that the following resolution be adopted.
BE IT RESOLVED, That the Accountant's Report of Ernst &
'hinney dated August 20, 1985 for the year 1984-85 is
received. The Administration is authorized to use this
report as necessary.
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REVISED UNIVERSITY BUDGET , 1985-86: (Finance eo.mittee)
President Ellis presented a summary revision of the budget. The
Administration has been instructed t o add ne~ items a nd r eturn
with a revised budget pr oposal at the earliest possible date.
•• 1 BUDGET DEVELOPMENT, 1985-86:
President Ellis s t ated that MMI is now part of the state
appropria t ion s and MMI is in the process of translating t heir
budget proposal i nto the forma t o f state budgets which ~ill t hel
be presented for Board approval.
PRESIDENTIAL SEARCH REPORT: (As s ess-ent and De velo~eDt co..)
Dr. Dennis Thave ne t, Chair of the Presidential Search Committee ,
gave a progress r eport stating that there has been a substantial
r es ponse and sessions have been devoted to initial scr eening.
Candidates r epresent all r egions of the Uni ted States , women aa.
mino rities .
INSURANCE COSTS: (Finance Commi ttee)
Mr . Jerry Tubbs , Vic e Pr esident for Business and Fina nce , sharM
information regarding insurance policies.
COMPUTER EQUIPMENT PURCHASE: ( Pi nance Co.ml ttee )
It was moved by Mr . Wi l liam Odykirk, seconded by Dr . Gordon
Lambi e , and carried, that the follo~ing resolution be adopted.
BE IT RESOLVED, That the Preside nt or hi s des ignee is
a uthor ized to enter in to contracts for goods a nd /or
ser vices, described below, on hehalf of t he Board of
Tr ustees:
Contract
Reference
NWllber
BT-007
Contrac t
Dollar
Amount
$61,380.55
Purpose of Cont ract
(Brief Descr iption )
Purchase of 16 pe r sona l computers
and r elated eq uipme nt for tbe
Office of Financial Aid.
2178
eo.puter Equi~ent Purc hase cont i nued
Complete desc ript io ns of t he goods a nd/or services to be
contract ed a re attached hereto and yill be retai ned on
file in the Office of the Board Secretary •
lL!IRRATIVES TO OPTIONAL RETIREMENT PROGRAM: (Fi nance Coa. )
Preside nt Ellis suggested that he form a pre-deci sion committee
to assemble facts and issues pertaining to t he divest iture
ques ti on . He offered the opinion that this is a collective
bargai ning issue. Mr . Kehetian said that human rights is not a
.atter that can be addressed in piecemeal f ashion and that the
Uni ve r sity must avoid doing so .
IIPOHT 0' I~ENT ACTIVITY : ( Finance eo..ittee )
Mr. William Odykirk, Chai r of the Fi nance Committee , s tated that
t be committee had receive d a Report of I nvestment Activi ty for
Augus t 1985 .
IDIIRI8TRATOR CLASSi f ICATION STSTEM/SKRIOR OPPICRRS: ( Pi nance
~ittee )
It yas ~oved by Mr. William Odykirk, seconded by Mr. Mitchel l
lebe t ian, and carried, tbat the following resolution a s amended
be adopted .
BE IT RESOLVED, That effective July I, 1986 , the
classif ication system for personne l and benefit purposes is
revised t o establis b a Senior Officer c l assification . The
folIoYing administrative positions in the Univers ity a r e
i ncluded in the Seni or Officer c lassif i cation:
Assistant Dean , Ass i stant to the Preside nt, Assisttant
Vice Pres ident, Associate Dean, Associate
Vi ce Preside nt, Associate Vice Provost, Dean ,
Director of Conti nui ng Education, Director o f
IPCD, Direc tor of Li braries, Di r ector of Personnel
and Staff Relations, Provost, Secretary t o
the Board of Trustees, University Counsel, Vi ce
President, Vice Provost.
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Admi nistrat o r Cl assification System cont inue d
Previous actions of the Board rega r ding classification of
the above administrative positions are rescinded effective
June 30, 1986; and
BE IT FURTHER RESOLVED, Tbat effective witb the establishment
of tbe personnel class ification of Senior Officer the
following general policies shall govern compensation fo r
em ployees in that classification:
1. The pri mary respo nsi bility for determining the salari es
and fr i nge benefits of Senior Officers is held by t he
President and Board action on these matters shal l be
taken onl y in consideration of specific recommendat i ons
by the Pr esiden t .
2 . The salaries and fringe benefits of Senior Officers are
matters of public policy which shall be established and
revised by vote of the Board of Trustees in open
session .
3 . Advance payments of cash , inc l udIng salary advances,
personal l oans and personal use of Un iversity credit
cards , will be made only upon specific authorization by
vote o f the Board of Trustees in open sess i on; and
BE IT FURTHER RESOLVED, That Se nior Officers shall receive
the benefits provided Administrative-Profess ional employees
of the University and are entit l ed t o the following bene f its
which deviate from the ge ne r al be nefi t p r ogram for
Administrative - Professional employees:
Li f e I ns urance
Ou r ing active employment all Senior Officer s shall have
University-paid l ife insurance coverage of two times annual
salary up to a maximum of $250 , 000.
Tra ve l Acci dent Ins urance
Ouring active employmen t all Senior Officers shall have
University-paid travel accident insurance, effective 24
hours/day , in the amount of $300 ,000 .
Retir ement Se rvice Awar d
Entit lements to Retir ement Service Awards, a s de f ined in
Section V, C. of the A_P Handbook a nd in Executive Officers
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Id.i aistrator Cla ssit ica tioa Sy a te. cont i nued
I nser t t o the A-P Handbook (Jan . 1984), shall not be
affected by t his resolution .
Phlsical EIa.i na tion
All Senior Officers while on active employment s tatus are
required to have an annual physical examination at
UniverSity e~pense.
Loue-ter. Dis abl 1 i tl
Long-term disability begins after si~ months of continuous
Sick leave and is 60' of monthly salary to a maximum monthly
pa yment of $4 , 000 (integrated wi t h FICA and retirement
benefits ).
Club Me.bershlps
Cluh memberShips for Senior Officers shall be paid hy the
Unive r Sity when and as determined by the PreSident to be in
accorda nce with the needs and interests of the University.
Betira-ent Contri butiODs - - TIAA-CRRP
The Univer sity will contribute 12' of e arned salary for
t hbse persons in active employment status who participate in
the optional retirement program, T I AA-CREP. In addition the
Univers ity wi l l contribute the empl oyer's share of t he
Federa l Social Security Tax .
TranSition Leave
Effective July I, 1986 a Senior Officer having at least six
years' continuous service as a Senior Officer and who holds
tenur e in a department of Central Michigan University may
upon a ppointment to a full-time faculty position e l ect to
take Transition Leave to prepare for teaching. A Senior
Officer who elects this o p tion is entitled to either six
months at f ull salary or twelve months at half salary , at
his or her option. Salary shall be at the level existing on
the last day of regular employment as a Senior Officer and
l o ng-te r m disability, health i nsurance, retirement , Social
Securit y a nd life i nsurance prog r ams shall continue . No
accruals of vacation or sick l eave shall occur during the
pe r iod of the Transition Leave .
2181
Administrator Class~fication Systea continued
Deferred InCOlDe
Senior Officers may defer a portion of s alary in excess of
IRS 403b limitations (SRA) in accordance with University
policy .
Health Insurance
During active employment each full time Senior Officer has
available an allowance of $2,654. Tbe ind iv i dual may elect
to receive the coverage available (individual, couple, full
family) up to the allowance with any excess being paid by
the i ndividual. I f the premiums for the coverage selected
are less than the allowance or no coverage is e lected, the
balance will be paid to the individual in the first and
second paycheck each month, subject to applic able federa l
and state taxes. TIAA- CREF retirees may continue on the
Uni versity's health insu rance pl an by reimbursing the
Universi ty.
Dental
The University pays the entire cost of de ntal insurance.
Coverage is 100% for diagnostics (x-ray, cleaning and
e xams) , 75~ for res torative ( fillings, caps and crowns) aDd
75$ for prosthodontic services (bridges and dentures) witb &
yearly maximum of $1,000 per person. In addition there is a
50% orthodontia rider with a l i fetime maximum of $1,000 per
person below the age of 19; and
BE IT FURTHER RESOLVED, That recommendations of the
President regard i ng the following aspects of Senior Officer
benefits will be addressed by the Board prior to July 1,
1986:
1 . Rules governing University vehicles which wi ll include:
A. Recognition of the Board's intent that all University
vehicles will be operated out of and maintained by tbe
Motor Pool.
B. Regulations i mplemen ting existing policy that Motor
Pool vehicles must be used exclusively to conduct
official Unive r sity business .
2182
~inistrator Classification Systa. continued
2. Expense reimburseme nt provisions, spouse travel, t he
distribution of season tickets to intercollegiate
athletic events and campus parking permi t s .
3. Vacation pay. Recommendations on this matter s hould
address concerns tha t the intended purpose of thisbenefit.
annual vacation, ~ay be impeded by excessive
accrual o f vacation hours for t he un i ntended purpose o f
a ccumulating substantia l terminal pay e nti tle~ents; and
BE IT FURTHER RESOLVED, That in recognition of the
uncertainty created by the review of policies and procedures
governing University vehicles , it is the i ntent of the Board
that no Senior Admin istrator shall be bound during fiscal
1985-86 to the one-year, 12,000 mile minimum guarantee
required by the current car lease agreement with the
Universi ty.
Cbair LaBounty asked that t he following letter from the Chair of
tbe Pi nance Committee be made a part of the Min utes .
October 4, 1985
Mr. Ray~ond A. LaBounty
Chair
Mr. Artbur E. Ellis
Pre8ident
Dear Ray and Art:
Tbe Pinance Committee met on Sept ember 18, as you
prepare its final recommendations to the Board on
.atters regarding executive of ficer compensation.
certain recommendations which have heen forwarded
Trustees in the form of proposed resolutions.
know, to
several
We agreed
to all
on
In addition the Finance Committee agreed that c urr ent executive
officers hold some entitlement to benefits that we propose to
eliminate on July 1, 1986. These entitleme nts are represented
by the enclosed paper, "Transition Provisions." While there was
2 183
Adainistrator Classification Syste. continued
general agreement among committee roembers on these provisions,
the committee telt it best not to submi t them in resolution
form . We preter to have you, as Board Chair, negotiate
entitlements individually with the executive officers using our
"Transition Provisions~ as guidelioes tor your negotiations.
The products of those negot iations could subsequently be brOUlbt
to the Board for confirmation.
I am informing otber Trustees of the committee's conclusion in
this matter by copy of this letter.
Sincerely ,
lsi
William Odykirk
Chair
Board Finance Committee
cc: Trustees
Transition Provisions
1. Current Executive Officers who have eligibi lity for certain
fringe benefit programs that will be terminated on June 30,
1986 are entitled to the following:
A. Any person eligible for the Exec utive Sabbatical Leave
optioo may exercise this option upo n r etirement from a
vice presidency and shal l continue to receive bi-weekl,
payments of salary and benefits throughout the period of
the one-year leave prior to assumption of teaching
duties.
B. Any person eligible for the Executive Officers Retirement
Program may exercise this option upon retirement
from a vice presidency except that yea r s of service as
an Executive Officer for purposes of eligibility for
this benefit shall not accrue beyond June 30, 1986.
Retiring vice preSidents under this program shall
continue to receive bi-weekly payments of salary and
benefits after retirement until such date as full
entitlement has been sat isfied . It is the intent of tbe
Board that this benefit program not be misconstrued as
enti tlement t o a terminal lump-sum payment.
2184
~inistr&tor Classification Syste. continued
C. Any person eligible for University -pa id health insurance
atter retirement as a result of 80ard action prior to
this date shall retain that enti tlement un til age 65 and
eligibil ity for Medicare.
Executive Officers salary resolution postponed.
Tbe Chair ex pressed app r eciati on to the Finance Committee.
It was moved by Dr. Gordon Lambie, seconded by Dr. Bernadine
Denning , and carried, that the following r esolu tion be adopted.
BE IT RESOLVED, That t he President or his designee may
promUlgate rules a nd regulations pertaining to
student rights and responsibilities, i ncluding r egulations
governing student organizations, in keeping
with the policies and goals established by the Board
in the University Mission Statement and Master Plan .
THILMA lEY .~ORIAL ENDOWED SCHOLARSHIP: (Student Affairs Com.)
It was moved by Dr. Gordon Lambie, seconded by Mrs . Alice
Tomboulian, and carried, that the following resolution be
adopted.
BE IT RESOLVED, That the Thelma Key Memorial Endowed
Scholarship is established and that the followi ng
statement is approved for printing in the Bulletin.
2185
Thelma Key Memorial Rndo.ed Scholarship continued
Thelma Key Me.arial Bndo.ed Scholarship
Established in 1985 through an estate gift of Thelma
Key who received her Life Certificate in 1924 and
Bachelor's Degree in Education in 1942 from
Central Michigan University. Thelma retired from
the Grand Rapids public school system in 1966.
Earnings from the endowment will be awarded
annually to Central Michigan University students.
STUDENT EVENTS BUILDING, UPDATE: (Student Affairs Com.lttee)
Mr. James Hill, Vice President for Student Affairs, gave an
update stating that the committee has reviewed the original
proposal and has scaled the project down to the $15-16 milliol
range. Copies of the new report are availahle in the Board of
Trustees Office. President Ellis indicated that the Boardapproved
policy for selection of architects will be followed.
The President reported also that Ernst & Whinney had been givel
the assignment of preparing a report on the ability of the
University to finance a student recreation facility.
SABBATICAL LEAVE POLICY: (Acadealc Affairs Committee)
It was moved by Mrs. Alice Tomboulian, seconded by Ms. Rachael
Moreno, and carried, that the following resolution be adopted.
BE IT RESOLVED, That the Sahbatical Leave Policy, as
amended by the Academic Senate on April 30, 1985, and
attached hereto, is approved.
Mrs. Alice Tomboulian, Chair of the Academic Affairs Committee,
stated that the committee discussed comprehensive planning and
received an information report on MMI development from
Dr. Douglas Friedrich.
STAFF REPORT:
Mr. Michael A. Owens, Director, Admissions.
2186
Tile meeting recessed at 11:42 a.m.
TIle meeting reconvened at 11:51 a.m.
nBSOKREL RECOMMENDATIONS:
It was moved by Dr. Bernadine Denning, seconded by Dr. Gordon
Lambie, and carried, that the personnel recommendations as
submitted on pages 1-9 of the agenda be approved.
GIns:
It was moved by Dr. Bernadine Denn i ng, seconded by Dr. Gordon
Lambie, and carried, that gifts received during July 1985 in the
amount of $385,736.93 be accepted with appreciation.
GRAIITS:
It was moved by Mrs. Alice Tomboulian, seconded by Dr. Bernadine
Denning, and carried, that grants awarded during the months of
August and September 1985 in the amount of $415,868 be accepted. ~
IIICUTIVE OFFICERS SALARIES , 1985-86: (Finance Committee)
It vas moved by Mr. William Odykirk, seconded by Dr. Bernadine
Denning, and carried, that the following resolution be adopted.
BE IT RESOLVED, That effective July 6, 1985, the annual
salary of Interim President Arthur El l is shall be
$82,000; and
BE IT FURTHER RESOLVED, That upon the recommendation
of the President the annual salaries of Vi ce Presidents,
effective July 1, 1985 shall be:
John Cant elan
Jerry Tubbs
James Hill
2187
$75,500
71,900
69,200
The Chai r announced that the next Board of Trus tees meeting will
be November 1 , with committee meetings October 31.
Dr . Gordon Lambie expressed concern and un happ iness with Cen tral
Fl o r ida Universit y and asked the Chair to write to them e xpressing
our dissati sfaction .
The Chair will wri t e to the Central Florida University governinl
board with a copy to the NCAA .
The Chair an nounced that the r e will be an Ope n Forum followinS
the November 1 meeting. The Board will then assess the forum
procedure and participation.
The Chair adjourned the meeting at 12:00 p.m.
Secr etary to the Board of Trustees
2188
