CE NTRA L M ICHIGA N UNIVERSITY
B O A RO O F T R D S T 8 8 S
Sep tembe r 4, 1987 •
Central Mic hi gan Oaiversity Board of Trustees
Mt. Pleasant, MichigaD
Septe.be r 4, 1987
Members present: Dr. Gordon N. Lambie, Chai r ; Or. Bernadine N.
Denning; Mr . Mitchell O. Kehet!an; Mr. Raymond A. LaBounty;
Ms . Rachael E. Mo reno.; Mr. William C. OdykLrk; Mr . Arthur E.
Eills , Pr es ident .
Members absent: Mrs. Alice Tomboullan .
Also attending: Dr. Edward 8 . Grant, Interim Vice President for
Administration; Ur. Russell L. Herron, Sec r e tary to the Bolard o t
Trustees ; Yr. James L. Hill, Vice President for Student Aftairs;
Dr . Janice M. Reynolds, Acting Provost; Mr . Jerry R. Tubbs,
Troasurer ot the Boa rd of TrliNtces and Vice President for
Business and Finance •
The meeting was called to order by Chair Lambie a' ~: ll • • m.
It was moved by Mrs . Riecker , seconded by Mr . Kehetian, and
c~rried , that the Board ot Trustees move tnto closed session to
discuss strategy connected with the negotiation of collective
ba rgaining agreements . For: Denning , Kehetian, Lambie,
LaBounty , Odykirk , Riecker. Against: None. Absent: Moreno.,
The Board moved into closed 60ssion at 9:12 a .m,
.Ns. Moreno ar r ived at 9:21 a . m.
The Board r econvened in open session at 10:01 a .m.
It was moved by Dr. Den n ing , seconded by Us . Noreno, and
carri ed, that the mi nutes ot the July 24 , 1987 meeti ng be
approved as submi tted •
GUIDE fOR CONTI NUING PIIYSICAL DEVELOPMENT :
It was moved by Mr. Odyki r k , seconded by Mrs . Riecker, and
carried, that the following r esolution be adopted .
BE IT RESOLVED , That the "Guide for Cont inuing Physical
Development" fo r Central Michigan University iR received .
ERNST. 'HINNEY: (Pinance Committee)
It was ooved by Mr . Odykirk, seconded by Mrs . Riecker, and
ca rried, that the following resolution be adopted .
BE IT RESOLVED , That the Accountant's Report at Ernst l
'll'hinney dated Augus t 1 t, 1987 for the year 1986-87 is
received. The Admin i st ration is authorized to usc this
report as necessar y .
AMENDMENT TO REFINANCING PACKAGE: (Fi nance Committee)
It was moved by Mr. Odykir k , seconded by ~r s . Riecker , and
carried , that tho follo.iog resolution be adopted.
WHEREAS , The Central Michigan Un i ver sity Board of
Trustees (the "Board") is a constitutional body corporate
established pursuant to Article VII I, Section
6 of the Michigan Consti tution of 1963, as ame nded,
with gene ral supe rvi sion of Central Michigan
University (the "University") and the cont r o l and
direction of all expenditures trom the Unive r sity's
'HEREAS, In the exe r c i se of its constitutional
duties , and in order to control and direct prudently
expenditur es from the Unive r sit y's funds, the Board
has pr ev i ously determined that it is necessary and
desirable to authorize the issuance of Ronds in o rd er
to provide funds which, together with other available
funds , will be used to pay a portion of the costa of
the Projacts doU ned in the Resolution of this Board
adopted July 24 , 1987 (the "July Resolution") , to
r e fund the Prior Bonds , as defined in the Prior
Ame ndment to Retinancing Package cont i nued
Resolution, to fund a debt seryice reserve fund, if
any is required for the Bonds, to pay capitalized
interest on the Bonds , if necessary, and to pay costs
of issuance of the Bonds; and
WHEREAS, It is necessary to amend a portion of the
Prior Resolution to meet the technical requi r e~en ts
of the Bonds;
NO', THERE~ORE , BE IT RESOLVED BY THE CENTRAL
MICHIGAN UN IVERSITY BOARD OF TRUSTEES, AS FOLLO'll'S:
1. Paragraph 1 of the Prior Resolut i on is hereby
amended to read in its entlrety as follows:
The Board he reby authorizes the issuance,
exec ution and delivery at the Bonds of the Board
to be designated GENERAL RRVENUE BONDS, SERIES
1987, in the aggregate principal amount to be
established by the Authorized Officer s , or either
o f them, but no t to exceed the &rIlOllnt necessary
t o produce proceeds of $50,000,000, to be ated
as of the date established by the Authori ,d
Officers , or e ither at them, to pay a po rt ion of
the costs of the Projects, as shall be determined
by ei ther of the Authorized Officers , to pay part
o r all of the cost of refunding the Prior Bonds,
to fund all or part of the inte rest to accrue on
the Bonds from the date of delivery thereof to a
date to be dete r mined by t he Authorized Officers,
or eithe r o f them , to fund ~ rlebt se rvice reserve
fund it the Authorized Officers, or either of
them , determine that such reserve fund is
necessary , and to pay costs incidental to the
i ssuance of the Bonds and to the refunding ot the
Prior Bonds. The Board may use the reserves
establi shed for the Prior Bonds for the refunding
of the Prior Bonds o r to establish reserves or
fund balances for the Universlty, or to pay part
at the costs o f the Project, or fo r s uch other
purposes as the authorized Office r s or either o f
them shall determine to be in the best interests
of the University . The Bonds shall be serial
Bonds or term 80nds subject to r edemption
requirements, or both, as shall be established by
the Authorlzed Officers, or either of them, but
• • Aae ndme nt t o Ret l na nc Lng Package con tl nued
the first maturity shall be not ea r l ler than
January 1, 1988 and the last matur i ty sball be
not later than January 1, 2017 . The Bo nds may
bear no interest or i nterest at stated rates tor
the respective maturities thereof as shall be
established by the Autho r ized Officer s , or ei ther
of them, but the highest rate of in t e r est for a ny
maturity shall not exceed 9$ per a nnum, a nd t he
Bonds may be issued in whole o r 1n part as
capital appreciation bo nds, which tor thei r te rm
or any pa r t thereot bear no interes t but
appreciate in pr i nci pal amount ove r t i me at
compounded rate ( not in excess of 9$ pe r a nnum)
to be determined by the Authorized Off i cer s or
either or them . The Bonds may be subject to
redemptlon prior to maturi ty at the times a nd
price and in the man ne r as shal l be established
by the Authorized Of f icer s or either of them .
The maximum annual principal and i nterest
requirements on the Bonds (e.e l usive of i nte rest
to be funded f rOG pr oceedS o f the boDds) shall
not exceed 54 ,000, 000 . Interest on the Bonds
shl! be payable at the times as shall be
spec ified by the Authorized Office rs or eithe r of
them . The Bonds shall be issued in fully
registered torm in denominations , s hall be
payable as to principal and interest in the
ma nner, shall b~ subject to transfe r and
exchange, and shall be executed Rnd authe n ticated,
all as shall be provided in the Trus t
Indentur e . The Bond s hall be sold to the
Underwriter pursuant to the Bond Purchase
Agreement fo r a price to be estab11shed by the
Authorized Officers o r either ot them (bu t the
Underw r iter's discount , exclus i ve of orglna l
issue discount, shal l not e~cee d 2$ of the
pri ncipal amo un t thereof) plus acc r ued inter est ,
I f any, from the dated da te 01 t he Bonds to t he
date of deliver y t he r eof .
2 . All r e8olutlon~ or parts o f r esolutio ns or othe r
proceedings of t he Board in conflic t he r ewI th be
and the Bame a r e he reby re pealed in sofar a s s uch
con f lic t arises .
A copy of the retl nanclng r esoluti on as ame nded 1s on ti l e in the
Office of the Sec r etar y .
EXTBRNAL AUD ITOR SBLECT ION REPORT: (Fi na nce Commi ttee )
Yr. Odykirk , Chai r at the Pi nance Committ ee, r eported th a t the
f irms of Ar thur Ande r sen l Com pa ny . Pr ice Wa t e rho use , a nd Ar t hur
Young wilt be invited to cam pus for in t e r v i ews . The Ex te rnal
Auditor Sea rc h Committee wil l make a recomme ndation a t the
November meet in g .
TRAFFIC ORDINANCB/ CAM PUS MAP 1987-88 : (Finance eo..ltt ee)
I t was moved by Yr. Od yk i r k , seconded by Mrs . Rl ecker , and
c ar r i ed , that the fo l lowi ng resol ution be ad opted .
BE IT RESOLVED , Tha t the fo llo wing amendme n t is made t o
the Ord i na nce ti t l ed ~A n Or di na nce to Govern and
Control Pa r ki ng , Tra f fi c and Pedest r lans at Central
Mi c hi gan Unive r s i t y , Mt . Pl e a s an t , Mi c higan ~:
Sec t ion 8 . 26 of s a id Ord i nance , a s ame nded, is
r e tained and shal l continue to apply t o violations
occurring pri or t o i2:01 o ' clock a .m. on the da te
t his amendme nt becomes effec tive, e xcep t to t he
ex t en t alter ed by t ra ff i c o r der s u nder this
Ord i nance . Effective 12 : 01 o'c l ock A.m. on t he date
t his ame ndme n t becomes effective , s a id Sec tion 8 . 26
sha ll r e ad and be ef f ect ive to vio l a ti o ns occu rring
on or after 12:01 o ' cloc~ a .m. on sa id date as
8 . 26 Attached he r eto and made a part he r eof
i s a map e n t i tled ~Campus Map Ce n t ral
Michigan University , 1 9 8 7 - 88 , ~ s e tt ing
forth and l ocating park ing l o t s on the
campus of Cen tral Mich i gan Univer s i t y,
Mt . Pl ea sant, Mic hi gan, a nd se tting
tor th t he pe r so ns who may use s uch
lots And the t I me and ma nner o t such
pe rmit ted use . Vi olation o t the
pr ovisi o ns con tain ed on the map and on
the r ever se s id e of the map s ett i ng
f o r th pe r sons who may use s uch lot s
and the time and ma nne r of such
pe rmitted use i s a vi olation o f t hi s
Thi s amendment s hall take eff ec t September 5 , 1987, a t
12:01 a .D.
PUBLIC BROADCASTING DEBT RESTRUCTURING: (Finance Committee)
It was moved by Ur . Odykl ~k, seconded by Mrs. Riecker, a nd
carri ed , that the tollowi ng resolution be adopted.
88 IT RESOLVED , That the exist ing plant tu nd deticit and
cumulative ope ~ ating deficit related to Public Broadcasting
be consolidated into one plant tund balanco ot
$1,413,719 and repaid over teo years beginning tn
1987-88 at the rate of $141 , 372 per year .
PBS STROBE ' ARN I NG LIGHT SYSTEM PURCHASE : (Fi nance Commit t ee)
It was moved by Mr. Odyk lrk, seconded by Ms . Mo r eno , and ca rr ied,
that the tollowing resolution be adopted .
WHEREAS, The current strobe warning 11ght system is old
with costly maintenance; Now be i t theretore
RESOLVED, That contracting authority tor the purchaso
ot a new strobe warning li~ht sys tem on the WCML_TV
tower near Atlanta, Michigan, be g ranted to the
President or his designee tor an amount not to exceed
RBPUB.BIS IIMBNT OF TUB SCHOOL OP EXTBNDBD LEARNI NG: (Pi na nce Com)
It was moved by Yr. Odyk irk, seconded by Dr. Denning, and
carried, that the tol10.ing resolution be adopted .
BE IT RESOLVED , That contr ac ting authority tor the
refurbishing or the School of Extended Learning
orticee be granted to the President tor an amount not
to exceed $410,000 .
UN I VERS ITY PARI : TERMINAT ION OP BUI LDING AND USE R£STRICTIONS-MEAD'S
LITTLE ACRES SUBDI VIS ION NO.1 : ( Pina nce eo-i t tee)
It was moved by Mr . Odykirk, seconded by Dr. Den ning , and
carried, that the tollowing resolution be adopted.
Uni ve r si t y Pa r k: • •• Ter.i nat ion ot Res trictions • •• conti nued
8E IT RESOLVED, That the President or his designee is
authori~ed to terminate the building and use restrictions
perta i ning to the property known as Mead ' s
Lit tle Acres Subdivision No.1, said restrictions
being recorded in Li be r 281, Page 313, 1n the Oft ice
ot the Register or Deeds tor Isabel la County ,
Mich i gan .
EXTENSION OP RESTRICTI VE COVHNANTS : (Fi nance CommI t tee)
It was moved by Mr . Odykirk, seconded by ~rs. Riecker, a nd
carried, that the t ollowing r esolution be ad o pted .
BE IT RESOLVED , That the Un iv e rsity Park, Phase II,
Mt . Pl easant, Michigan, Declaration ot Covenants and
Res trictions is hereby adopted . The President or his
designoe Ls aut horized to take the necessa ry ste ps to
reco rd this document with the Isabella County
Registe r ot Oeeds . (Copy to be reta.ined in Ott ice ot
the Secretary . )
REPORT OP I" VESTMBNT ACTIVITY : (Pi nance Coami ttee)
The Boa rd received a report of investment activity tor July 1987.
AUGDST 1987 GRA DUATION LIST: (Academic Al tai r s Commi t tee)
It was moved by Mr . Odykt rk, seconded by Dr. Denn ing, and
car ried , tha t the ltst ot graduates tor August 1987 , upon
certitication ot t he Registrar and acceptance by the Acade~ic
Senate, be approved.
Mr . LaBounty , c hair of the Student Attairs Committee , reported
that Athletic Director Dave Keilttz and Director ot Campus
Recreational Services Tom Jones presented a report on University
athletic and campus recreational p~ograms .
• • •• • Athletics / Campus Rec Programs co n ti nued
The committee discussed the development ot an intercollegiate
athletic polLcy to assu re that practices are based on Board
policy . President Ellis was directed to prepare a proposal for
the next Board meetl ng.
Mr . Kehetian noted that the current ctturt to create Board polley
regarding athletics 1s not intended to be a screening ot what has
been done by the Department of Athletics in the past. The
Trustees are proud ot the success of eMU's athletic progra~8.
both 1n the Wid-Ame r ican Confer ence and 1n the NCAA .
Ur . Kehetlan also noted specLal pride In eMU's 80' rate of
graduation for its athletes.
PRRSONNEL RBCOMK ENDATIONS:
[t was moved by Ms . Moreno, seconded by Ur& . Rlecker, &nd
c &rried , th&t personnel recommendations as submitted on pages 1-
12 ot the &genda be approved.
GIFTS: • It was moved by Ms . Moreno , seconded by Mr . Odykirk , that gltts
received during June 1987 in the ~~unt ot $967.775 . 44 and du r i ng
July 1987 in the amount of $143.080 . 52 be accepted with
It wall 1II0VOO by Ms . No r eno , seconded by !Jrs . Riecker , a nd carried
that g r ants awa rded duri ng July and August 1987 in the amou n t ot
$487 , 757 be accepted .
It was moved by tis . )Io r e no , seconded by Dr . Donn ins , And ca rr l ed,
t hat the meeti ng be Adjo ur ned . The meeting adjour ned at 11 a .m.
Sec r etary to the Boa rd ot Trustees
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