Trustees Present: President John D. Walda; Vice Presidents Frederick F. Eichhorn, Jr., and P. A. Mack, Jr.; William A. Cook, Robert H. McKinney, James T. Morris, Frank D. Otte, Ray Richardson, and Ann Whitlock Swedeen.
University Representatives: President Myles Brand; University Chancellor Herman B Wells; Vice Presidents and Chancellors Gerald L. Bepko and Kenneth R. R. Gros Louis; Vice Presidents J. Terry Clapacs, Judith G. Palmer, Christopher Simpson and George Walker; Treasurer Steven A. Miller, Secretary of the Board J. Susan Parrish; Chancellors David J. Fulton, Hilda Richards, and F.C. Richardson.
Attendees: Herman Blake, Ray Bonhomme, William Burgan, Raymond Casati, Lynn Coyne, Luis Davila, Douglas DeFrain, Judy Eichhorn, Dorothy J. Frapwell, Deborah Freund, James Green, Edwin Greenebaum, Robin Gress, Donna Hankee, Andy Heck, Linda Hunt, Sonja Johnson, Gary Kent, Martin Lukaszewski, Robert E. Martin, Richard McKaig, Sara N. McNabb, Robert Meadows, Robert Moats, Thomas Mulcahy, Kenneth L. Perrin, Shirley Perrin, Bryan Rives, Dan Rives, William H. Schneider, Winston Shindell, Curtis Simic, James Swedeen, Jerry Tardy, Maynard Thompson, Susan Voelkel, Don Weaver, Albert White, Kim Wilcox, Douglas M. Wilson, also Jill Keough and Melissa Tarrant, Recorders, and the staff of the University News Bureau.
Board President Walda welcomed everyone to the meeting and thanked them for their attendance. He particularly thanked those who drove long distances on wintery roads to attend the meeting. He thanked Mr. Winston Shindell, director of the Indiana Memorial Union, for helping to provide the Trustees with an enjoyable as well as a rewarding weekend. He said that many of the trustees attended the Andre Watts' concert in the IU Auditorium, which will soon be an even better facility. He said that the stay at the Union was excellent, except for the ceilings on the mezzanine floor! He said that he looks forward to the completion of the renovations at the IMU.
1. Approval was requested of Minutes for the Meeting of December 13, 1996, which includes the Administrative Action Report of November 15, 1996. The Administrative Action report of December 16, 1996 is included with the minutes for this meeting of January 24, 1997.
Unanimously approved on motion duly made and seconded.
2. ITEM DEFERRED
President Brand welcomed everyone and thanked Chancellor Wells for attending the meeting. He then provided an update on the Strategic Directions Charter. He noted that we are in the process of proposal evaluation through the panels. Final recommendations are scheduled for April 1, 1997, the original timetable. He asked Vice President and Chancellor Ken Gros Louis to talk about additional implementation activities.
Vice President and Chancellor Kenneth Gros Louis said that two months ago, he distributed copies of the IUPUI plan that combined IUPUI planning processes with the Charter, and indicated at that time that Bloomington was moving forward on a similar document with the help of Kim Wilcox, ACE Fellow. He said that the Bloomington document was now complete, and he distributed copies to the trustees including a letter he wrote to accompany it. In the letter, he addressed the vision for the campus and the activities involved in achieving that vision, and he outlined some of the possible changes in operations on the Bloomington campus. He said that the Bloomington document contained a series of recommendations linked to the Strategic Directions Charter.
Vice President Gros Louis recalled that the first phase of implementation was identification of goals time tables and measures; the second phase was the production and presentation of this plan; and the third phase was for each of the campus units to identify their highest priorities from the recommendations that are in this document. He recalled that in December, he distributed a list of 21 recommendations that are being closely monitored, and he said that he anticipated having a report on the 13 recommendations that were campus based, with a report on the remaining 8 University -wide recommendations in April. He noted that this information is available on the World Wide Web as well.
Vice President Gros Louis gave a brief update on the Briscoe Academic Support Center, which brings together many units to provide student academic support, particulary to first-year students and those at risk of leaving the Bloomington campus. He said that in the first semester of operation, the center had 4,340 visits, excluding those individuals using the computer cluster. He said that 433 of those visits were from Briscoe residents, 323 from McNutt, 215 from Foster, and 479 from elsewhere, including 252 off-campus students who went to the center for advice. He said that this represented about 50% of the students in Briscoe, and about 25% of the students in McNutt and Foster. He said that tutorials and advice sessions for beginning math and English courses were the most widely used. He said that a study is now underway to compare the GPAs of those Briscoe residents who used the center with Briscoe residents who did not use the center, to determine any significant difference in first semester GPAs. He said that next year they will conduct a study on the effects of the center on retention from the freshman to the sophomore year.
Trustee Mack asked if they had been able to make any comparisons of Briscoe residents a year ago with Briscoe residents this year who have access to the support center.
Vice President Gros Louis said they had not done such a comparison, but that it was a good idea.
President Brand thanked Vice President Gros Louis for his remarks. He then recognized and welcomed Tom Mulcahy, the new student body president from IUPUI. He said that Mr. Mulcahy was replacing Mr. Jay Starks, who had to resign because of other commitments.
Mr. Moats welcomed the Trustees to Bloomington. He reported that the Bloomington campus had been very active since the start of the spring semester. He said that a coalition of student organizations assembled on Martin Luther King, Jr. Day to show support for improving minority student recruit and retention while presenting a list of initiatives to the campus administration. Over 400 students of all races and backgrounds supported these initiatives to improve the campus climate. The initiatives included the creation of a Latino studies department, the establishment of an Asian culture center and advocacy dean, maintenance or expansion of the office of diversity programs, permanent funding of the Gay/Lesbian/Bi-Sexual student support center, increases in women and non-white faculty, and enhancement of University recognition of the King holiday. Mr. Moats said that the meetings that day involving leaders of the minority coalition with Chancellor Gros Louis were very productive. Those discussions resulted in monies being set aside for the culture center, maintenance of the current budget in the office of diversity programs, permanent funding for the GLB support office, and a commitment of cooperation to achieve the other initiatives. He said that these programs, some controversial, have received wide-spread support throughout the campus. The Bloomington student body congress passed a resolution last week that endorsed the coalition's ideas. Members of the faculty, administration and citizens at large have given their support as well. While there may be some disagreements about specific details of these programs, Mr. Moats said that there is a true sense of community in enhancing campus diversity as a result of this week's march. He said he looked forward to the coming months when the Bloomington campus begins to make these ideas into realities.
Mr. Moats next addressed the issue of service fees on the Bloomington campus. He said that after discussing this issue with many students, he felt that fee consolidation in its present form is not the best available solution at this time. He said that the student government association is still evaluating opinions on this topic and is currently conducting a survey to gauge student views on the idea of consolidating user fees into a semester service charge. This survey will be completed by early February. He said that the students he spoke with agreed that these user fees place a large burden on students, and the students were concerned about paying even more through consolidated fees, though Mr. Moats said that a significant number of students expressed belief that consolidated fees could be feasible for the future. He said that the students would soon present a proposal to the Bloomington campus administration to create a committee to continue to investigate fee consolidation and other fee related issues. He said that the proposed committee would be similar to the IUB mandatory activity fee review board or health center advisory board. Those groups review fees on the basis of student cost, apparent benefit and unit need. They make recommendations on the size of these fees to the chancellor, who gives final approval. Mr. Moats said he looked forward to working to resolve the issue of user fees on the Bloomington campus.
Mr. Moats stated that this would be the last Trustees' meeting in Bloomington during his presidency. He thanked the Board for their accessibility and responsiveness, noting that while there had been disagreements on some issues, he said that he had never doubted the trustees' commitment to the improvement of student life on campus. He said that, because of the work of many people Indiana University is in excellent shape. He said that there are times when individual issues and problems arise, and at those times we may lose our optimism about the campus community. However, those problems are correctable and under the system of shared governance, they can be rectified in a fair manner. He expressed his optimism that Indiana University will continue to deal effectively with problems and changes in the best way possible.
Mr. Moats also stated that the IUSB student association would like to acknowledge the efforts of Interim Chancellor Lester C. Lamon, and wish Chancellor Designee, Dr. Kenneth Perrin, a successful tenure as the third chancellor of Indiana University South Bend.
Board President Walda said that it had been a pleasure to work with Mr. Moats. He said that Mr. Moats had continued to build on the successes of his predecessors and had done as good a job as any student leader Mr. Walda had known.
Mr. Moats thanked Board President Walda for his remarks.
Professor Greenebaum stated that the University Council had not met since the last Trustees' meeting in December. Professor Greenebaum reported that the UFC would be discussing issues related to tenure ineligible faculty at their February meeting. He said he would report to the trustees at their next meeting concerning the UFC's ambitions for progress on those issues.
Professor Greenebaum said that the Bloomington Faculty Council received a report at their last meeting on the implementation of GradPact. The BFC discussed a project that began last year concerning an evaluation of campus governance on the Bloomington campus. He said that the Bloomington Faculty Council agenda committee has articulated an emerging model for a reorganization of the Bloomington Faculty Council and implied responses from other institutions on campus. The BFC discussed that model and will pursue that matter with a view of implementing it in two years.
President Brand brought the trustees up to date on IU's endowment matching program overseen by the IU Foundation and Indiana University. He said that this program has had enormous success, and added that during IU's first 175 years, thirty-one professorships and chairs were appointed through private funding. Since the endowment matching program came into being, we have been able to appoint an additional thirty-five. Furthermore, we have a waiting list of donors who want to contribute to Indiana University to take advantage of this program. He asked the trustees to consider an extension of that program because of its great success.
Board President Walda suggested that the resolution be considered at this point in the meeting.
RESOLUTION
WHEREAS, Indiana University is committed to continuing and enhancing the support of its faculty and, thereby, enhancing the overall quality of the institution; and
WHEREAS, the Indiana University Foundation has committed itself to enhance its efforts to raise private support to increase endowments for the purpose of supporting Indiana University faculty and their work; and
WHEREAS, a partnership exists between Indiana University and the efforts of the Indiana University Foundation to raise private support in furtherance of the University objectives related to the expansion of efforts to increase faculty endowments; and
WHEREAS, upon recommendation of President Myles Brand the Indiana University Board of Trustees authorized in August 1995 the establishment of a program to match the endowment earnings generated by endowment gifts provided through the generosity of donors; and
WHEREAS, the matching program was established for a two-year period beginning in December 1995 and extending through December 1997 at a funding level of $1,000,000 consisting of a commitment of $500,000 from the President's office and a like amount of $500,000 by the campus and/or academic unit benefitting from the newly established endowment; and
WHEREAS, during its first year of implementation the faculty endowment matching program has recorded outstanding success measured in part by the fact that the number of new endowments established during this period more than doubles the number of such endowments created during the first 175 years of Indiana University's existence; and
WHEREAS, the faculty endowment matching program has been a resounding success bestowing significant benefits on our institution and its faculty; and
WHEREAS, the Institution's matching fund level has ben fully utilized during the first year of the program; and
WHEREAS, the Indiana University Foundation confirms that many additional endowment gifts are clearly possible;
NOW BE IT THEREFORE RESOLVED, that President recommends approval to the Board of Trustees and the Trustees authorize an additional $3,000,000 in matching funds, consisting of $1,500,000 from the Office of the President and a like amount of $1,500,000 from the campuses and/or academic units benefiting from the faculty endowment, be committed to extend the availability of the faculty endowment matching program.
Unanimously approved on motion duly made and seconded.
President Brand then turned to Good News about Indiana University. He reported that the Black Caucus of the American Association for Higher Education has honored J. Herman Blake, vice chancellor for undergraduate education at IUPUI, with its 1997 Exemplary Leadership Award for Public Service. The award is designed to honor those whose public lives and careers have been dedicated to addressing broad policy issues relating to the welfare of African-Americans. The organization singled out Professor Blake for his "untiring efforts, which have focused on the enhancement of African-American participation in higher education." Herman Black will receive this prestigious award in March in Washington, D.C.
Professor Dorothy Webb, chair of the department of communication studies at IUPUI, has been selected as a fellow in the prestigious College of Fellows of the American Theatre. She will be honored April 20 during a ceremony at the Kennedy Center for the Performing Arts. Membership in the College of Fellows is limited to those who have provided distinguished service and achieved significant accomplishments in the theatre. The organization has inducted just 150 fellows in its 30-year history. President Brand added that this is a wonderful honor.
Next, President Brand noted that Paul J. Gordon, emeritus professor in the IU Bloomington School of Management, has been selected for the 1997 Fulbright/FLAD Chair in Strategic Management at the Technical University of Lisbon, Portugal. He added that this is the fourth Fulbright for Professor Gordon, who has also served as chairman of the Fulbright Advisory Selection Committee in Business Administration. He further reported that two faculty members in the College of Arts and Sciences are on foreign assignments through the Fulbright program. David G. Biven, an economist and expert in macroeconomics, statistics, and the American economic system, is working with economists in Estonia. Richard Fredland, former chairman of the political science department at IUPUI, is in Malawi where he begins this month an 11-month term lecturing on political science and international relations. President Brand said that the Fulbright program has been in place for half a century and is recognized as one of the leading programs in international educational exchange. He said that IU's participation in the program is one of many involvements that enhances our international reputation and brings accolades to our university.
IU's ongoing partnership with K-12 schools received a ringing endorsement this month with the announcement that IU Kokomo has been selected as a regional service site for the Twenty-First Century Scholar's Support Program. IUK is the second campus to join the program; IU East was named a regional site late last year. The Twenty-First Century Scholars Program was started in 1990 as part of Governor Evan Bayh's resolution to guarantee quality education for all of Indiana's youth. President Brand said that more than 35,000 young people in grades eight through 12 are participating in the program statewide. They receive mentoring and other support services such as college tours and anti-drug workshops, to help them stay on track toward college. Participants are also guaranteed financial support to attend college. He reported that IUK was chosen as a service site because of its track record with early intervention and support programs such as "Destination: Education IUK." That program targets area seventh-graders who have high academic potential but face economic, social or personal obstacles that could prevent their potential from being realized. IU East was chosen on the recommendation of several community fora.
President Brand reported that figures just in to IUPUI show that October visits to the Educators' Technology Center of Indiana, located at IUPUI, skyrocketed by 900% over the same time last year, thanks to outreach efforts. The facility, the only one of its kind in Indiana, serves as a preview center for educators from across the state to explore the latest in educational software for use in their own classrooms. Faculty and students at the IU School of Education at IUPUI use the center as well. All have one goal in mind: to make better use of the technology that is flooding the field. One especially enthusiastic client has been the Indiana School for the Deaf whose teachers have turned again and again to the Center for ideas on how best to use technology to help children with special needs.
1. Report from Trustee Otte
Trustee Otte reported that the Campus Community met on January 24, 1997 with all committee members present. He thanked Trustees Cook, McKinney and Swedeen for their attendance. The committee heard an update from Chancellor Gros Louis and several members of the Blue Ribbon Committee on changes in food service in the residence halls. He said it was a very positive report, and that the committee looks forward to a report from Arthur Andersen Consulting in early February on further possibilities for modifications. Trustee Otte reported that the committee also heard reports from the Bloomington Professional Staff Council and CWA. He commended CWA for their volunteer efforts in the Bloomington community, most notably their sponsorship of the March of Dimes. He praised the excellent leadership they are showing.
Trustee Otte said that the last agenda item was a discussion concerning student fees. He said that Dean Maynard Thompson and students Bob Moats and Shawn Domeracki all made comments, as did several others. He said that the purpose of the discussion was to create a starting point for future ideas on improving the possibility of student fees assessment review. He said that this discussion would continue in the committee after they receive results from an IUSA survey.
1. Report from Trustee McKinney
Trustee McKinney reported that the Finance and Audit Committee met on January 24,1997 with all committee members present. They received a competitive report on the fees that are charged by the various money managers IU uses; the report was excellent and indicated that not only were the fees reasonable, but that the risk return was high. He expressed the committee's satisfaction with the current money managers.
Trustee McKinney reported that the committee also discussed a policy related to the use of interest income. He provided background on the issue, stating that in order to provide a source of funds for capital projects and land acquisition where state appropriated funds are not available, the administration found in 1988 that the Board of Trustees had the authority to designate a fund into which interest from investments could be placed. Trustee McKinney said that this policy was apparently adopted by the finance committee before he or any members of the current committee were present on the committee. However, it was never brought officially to the Board. Trustee McKinney reported that the administration has been operating under the premise that it was an adopted policy. He said that at a trustees' meeting last summer, Trustee Richardson asked the question about the source of funds for a capital project at IUPUI, which raised the question of the origin of the policy. Some research was done and it was determined that there was not a policy recorded in the trustees' minutes. Trustee McKinney stated that he therefore wished to bring a document called "Policies Related to the Budget: Interest Income Use" to the Board for their approval.
INDIANA UNIVERSITY INSTITUTIONAL POLICIES
VOLUME II POLICIES RELATED TO THE BUDGET
Trustee McKinney said that the policy would officially allow the designation of a fund into which to place the return on investments. This practice has been in use since it was apparently adopted by the committee in 1988. He said that the policy provides flexibility to the administration to have funds available for capital projects and land acquisition. He said that the use of these funds is subject to review by the President of Indiana University and such use will be reported to the Trustees. He said the committee discussed the issue of whether the specific use of these funds should be approved by the Board on a regular basis, or whether it should be approved by the president and reported to the Board of Trustees. Trustee McKinney said that after some discussion of the issue, the committee recommended the policy as originally written, requiring presidential approval and Board review. He said that the vote was divided, with three committee members in favor of the policy, and Trustee Richardson opposing the policy on the grounds it should require Board approval. Trustee McKinney said that the committee felt that it was important that the president be given this flexibility. He said that the committee requested the President to report on those funds in the context of budget preparation. Later, when the amounts have been determined, the President will report the results to the Board. Trustee McKinney said that the majority of the committee felt this procedure would give the Board adequate information. He said that, in light of the philosophy of some of the Trustees, the Trustees chose Myles Brand as president to administer policies like this, and that the Trustees should review it, but should not actually approve each transaction.
Trustee Richardson stated that there are two budget-related items he has encountered in the past few months that are unusual in his experience in state and local government. The first issue, not related directly to the policy under discussion, was his realization that the budget that the trustees approve each spring does not accomplish the purpose he thought it would because the administration can exceed that budget without coming back to the Board for approval. He said that the projection for this year is that the budget will be exceeded by $4 million. The proposed policy would then take the interest income money off the budget, an amount of approximately $22 million at this point, which is not the annual amount but the cumulative amount. He expressed his doubt about the trustees considering the budget when in fact what the trustees approve is considered a starting point by the administration. He said he was not implying that the money is not spent wisely, but that the procedures are contrary to the common practice in state and local government. He said that apparently some of the trustees who are involved with large private corporations are accustomed to these types of procedures, but that his background was very different and he had a serious problem with both of these budgeting practices.
President Brand stated that hard work has been done over the last eight or nine years to be much more effective in the budgeting process and in adopting some of the best practices in business. He acknowledged that Trustee Richardson was correct that this process does not follow the state government, but that this is done purposefully.
Trustee Richardson suggested that, for budgeting purposes in the future, perhaps the trustees ought to look solely at the reserves. He said that currently, IU has a reserve of approximately $50 million in the non-restrictive balance, and that will be reduced to $46 million. He stated that the administration can reduce this fund to the 3% Trustee guideline, which is $25 million without further approval of the trustees.
Board President Walda wryly observed that such an approach would certainly shorten the annual budget meeting.
Trustee Morris stated that it would be unfortunate if the trustees left this meeting thinking that the budget was not a very important document. As a new trustee, he said that he had studied the University's budget for many of the past years, and his sense was that the University has carefully followed the budget. He stated further that the concept of giving flexibility to managers in every level of the institution is very important. People need to respond quickly to opportunities and they need to have the wherewithal to do that. Ultimately, they are held accountable for every one of those expenditures. He said that his sense was that President Brand will be required to bring to the trustees the recommendations on how these dollars are spent when he seeks budget approval each year. Thus, these expenditures are incorporated into the budget. He said that the budget is probably the University's most important guideline, and it has been followed. He said that while he would not necessarily take issue with his colleague, the notion for anyone to perceive that the budget is not important is a misperception.
Trustee Mack asked Trustee McKinney for confirmation that the finance committee reviews the financial figures on a quarterly basis.
Trustee McKinney confirmed that they do conduct quarterly reviews, including the reserves. He stated that the University has a very large budget, and that this policy affects a very small part of that budget.
Approved on motion duly made and seconded, Trustee Richardson casting a "nay" vote.
Trustee McKinney continued with the Finance and Audit Committee report. He said that the committee discussed the issue of bank reconciliations. The committee felt that a bank reconciliation should be conducted on a timely basis. Because of the complexity of the University and the fact that part of the University system is automated and part of the University system still uses paper entries, the reconciliations are not quite up to the committee's request for a 30-day reconciliation. He said that the committee is pleased with the progress the University is making toward achieving this goal, and he expressed confidence that by the end of the year, the bank reconciliations will be conducted on a 30- day basis.
Trustee McKinney also reported that the committee made plans for future investment manager reviews. He said that Moody's Investors Service was coming to review the University on February 6-7, 1997. He said that they are following up on the hospital merger. Other committee business included a briefing on Indiana University tax matters. They heard a presentation on the quarterly financial report, but did not have sufficient time for reviewing it. He said that the committee would do so at their next meeting.
The last item the committee considered was financing for Willkie Quad which will require a bond issue. He said the material was well presented, but the committee did not have sufficient time for a full review. He said that the financial projections were very tight. He said the Finance and Audit Committee has been very concerned about the future of the residence halls and has been very involved in the residence halls rates and food rates. However, the committee did not feel they had enough information to recommend to the Board that the projections would authorize proceeding on a bond issue. They asked for more information and will put this item on the agenda for their next meeting. He said that he understood that the Facilities Committee would recommend proceeding, subject to future approval by the Finance and Audit Committee. He cautioned that the committee had some concern about being able to approve it.
Board President Walda thanked Trustee McKinney for his report and stated his hope that after the report from the Facilities Committee, the trustees would approve the Willkie Quad renovation in concept and then go forward with some of the preliminary planning for that project, subject to the approval of the Finance and Audit Committee for financing for the project, which will be reviewed at the next meeting.
1. Report from Trustee Richardson
Trustee Richardson said that Professor Greenebaum reported information to the University Policies Committee regarding the use of part-time faculty on the Bloomington campus. Information on the other campuses will be forthcoming. He said that the UFC is continuing its examination of the proper use of tenure ineligible faculty. Trustee Richardson said that the committee also discussed teaching efforts of regular faculty, including several possible means of attracting faculty to teach more, such as extra compensation and reduced research. Finally, he said that the committee examined a list of courses that IU East may request through the year 2004. He said that this process would continue with the other campuses.
Trustee Eichhorn said that the Facilities Committee met on January 24, 1997 with all members and Board President Walda attending.
INDIANA UNIVERSITY BLOOMINGTON
a. Willkie Quad Renovation
Approval of the Board was requested to proceed with the Renovation of Willkie Quad to upgrade and provide more private, independent housing accommodations for returning students on the Bloomington campus. Floors 1-11 in the north and south towers and 1-4 in the center building towers provide undergraduate housing. Ground floors in the north and south towers will also be remodeled to provide student support facilities. The existing eight-foot ceilings are restrictive, therefore, a complete "gut and remodel" is anticipated with upgrade and replacement of major mechanical and electrical systems. The buildings will be air conditioned and a fire sprinkler system will be installed. Renovation on the north and south towers will offer individual bedrooms and semi-private bathrooms with two single rooms on each floor having a private bathroom. The four levels in residential wings of the center building would provide apartment style housing consisting of three or four bedrooms, two bathrooms, shared living space and a kitchen. The plan will provide housing for 788 students. The project is estimated to cost $26,600,000 for construction and $1,500,000 for asbestos abatement for a total project cost of $28,100,000. The asbestos abatement portion of the project will be funded from Halls Reserves and the construction component will be funded by a bond issue. Expenditures (including capitalized interest) related directly to the bond issuance are estimated at $2,000,000. Appropriate State approvals will be requested.
Trustee Eichhorn said that the Facilities Committee considered this project and voted unanimously for its approval. He said that he understood that the Finance and Audit Committee had not yet completed their review, so he presented the project for approval by the Board, subject to the approval of the financing for the project by the Finance and Audit Committee.
Unanimously approved on motion duly made and seconded.
b. Auditorium Renovation
Approval of the Board was requested to proceed with renovation of the Auditorium on the Bloomington campus. The project is estimated to cost $12,500,000. Appropriate state approvals will be requested.
University Architect Robert Meadows said that this first phase of renovations to the Auditorium will affect the infrastructure of the main structure of the auditorium.
Trustee Otte asked for the estimated completion date, and Mr. Meadows responded that Phase I should be completed in the fall of 1999.
Trustee Eichhorn said that the Facilities Committee approved this proposal and recommended its approval by the full Board.
Unanimously approved on motion duly made and seconded.
INDIANA UNIVERSITY-PURDUE UNIVERSITY INDIANAPOLIS
c. Cancer Research Center - Lab Animal Facility
Approval of the Board was requested to proceed with the construction of a laboratory animal facility in the Cancer Research Center, which is currently under construction. Located in the basement of the building, the project will complete approximately 2,900 square feet of shell space. Areas for animal quarters, cage washing, and cage prep areas will be created. Estimated to cost $620,000, the project will be funded by the Howard Hughes Foundation - $200,000, Campus Research Investment Funds - $220,000, and Research Investment Funds-Medicine - $200,000.
Unanimously approved on motion duly made and seconded.
INDIANA UNIVERSITY KOKOMO
d. Construction of Parking Garage
Approval of the Board was requested to proceed with the construction of a three-level parking facility on the Kokomo campus. Estimated to cost $2,600,000, the structure will be built of reinforced concrete and will provide 380 parking spaces. An alternate price will be requested to construct an additional level that would increase the total number of spaces in the facility to 432 spaces. The project will be funded by Parking Revenues. External financing of approximately $2,300,000 will be sought. Appropriate State approvals will be requested.
Trustee McKinney asked if the structure was pre-cast concrete, and Mr. Meadows responded that it was not; the concrete is poured in place. He said that cost per space was $5,900.
Trustee McKinney asked if this was a reasonable cost.
Mr. Meadows said that the cost model was prepared based on the Jordan garage, which is a low number. Facilities currently are being constructed slightly higher, and that is the reason for the uncertainty as to whether a third level can be constructed. He said that the cost was in line with the current market.
Unanimously approved on motion duly made and seconded.
INDIANA UNIVERSITY NORTHWEST
e. Hawthorn Hall - Mechanical System Improvements
Approval of the Board was requested to proceed with improvements to the Heating/ Ventilation/Air Conditioning Systems at Hawthorn Hall. The project will convert the existing constant volume air distribution system to a variable volume system with retrofit kits at each terminal box. The volume of outdoor air delivered into the building will be increased to meet current quality standards. The work will improve heating, cooling and ventilation for building occupants and correct longstanding problems. Lighting retrofit throughout the building will also be part of the project. Substantial energy savings will be realized from this project by using variable frequency drives, energy efficient motors, and energy efficient lamps and ballasts. Estimated to cost $705,000, the project will be funded by Capital Appropriation for Repair and Rehabilitation. Appropriate State approvals will be requested.
Unanimously approved on motion duly made and seconded.
f. Library/Conference Center - Mechanical System Improvements
Approval of the Board was requested to proceed with improvements to the Heating/ Ventilation/Air Conditioning Systems serving the Library/Conference Center Building. The project will replace all terminal boxes in the building with state-of-the-art variable volume boxes which will improve heating, cooling, and ventilation and correct longstanding problems. The volume of air delivered into the building will be increased to meet current indoor air quality standards. Additionally, the project includes lighting retrofit throughout the building using energy efficient lamps and ballasts. Funded by Capital Appropriation for Repair and Rehabilitation, the project is estimated to cost $655,000. Appropriate State approvals will be requested.
Unanimously approved on motion duly made and seconded.
INDIANA UNIVERSITY BLOOMINGTON
a. Conveyance of Right-Of-Way, Kent Road Bridge over Salt Creek, Monroe County, Indiana
Indiana University's Kent Farm is used for research in biology and is served by Kent Road in eastern Monroe County Indiana. The present bridge on Kent Road over Salt Creek is immediately adjacent to Kent Farm. It is a single lane steel structure with wood plank decking. The Monroe County Highway Department proposes to replace this bridge with a modern two lane structure in an adjacent location. The existing bridge will remain until construction of the new bridge is completed. In furtherance of the construction, Monroe County, Indiana has requested a grant of right-of-way from The Trustees of Indiana University of approximately 0.532 acresñ to facilitate the construction of the new bridge structure.
The new bridge will improve traffic flow and vehicle safety on Kent Road and enhance access to Kent Farm. It is anticipated that the construction activities will involve minimal disruption of access to Kent Farm. It is proposed that the right-of-way be conveyed to Monroe County, Indiana without consideration to facilitate and cooperate in this important road improvement project which will benefit Kent Farm.
The Trustees were requested to adopt the following resolution to effect this conveyance:
RESOLUTION
WHEREAS, Monroe County, Indiana has requested a permanent right-of-way over a portion owned by The Trustees of Indiana University consisting of approximately 0.532 acres; and
WHEREAS, this real estate will be used by Monroe County for the construction of a new bridge facility over Salt Creek on Kent Road in eastern Monroe County; and
WHEREAS, the new bridge to be constructed by Monroe County will benefit both Indiana University and the citizens of Monroe County;
NOW, THEREFORE, BE IT RESOLVED that The Trustees of Indiana University pursuant to IC 20-12-1-2 (a) (1) determines that the following described real estate is no longer needed for Indiana University's purposes and the following described real estate shall be conveyed without monetary consideration to Monroe County, Indiana:
A part of the Southeast Quarter of Section 3, Township 8 North, Range 1 East, Monroe County, Indiana, described as follows: Commencing at the intersection of the southwestern boundary of McGowen Road and at the southern boundary of Kent Road; thence North 89 degrees 34 minutes 24 seconds West (assumed Bearing) 84.351 meters (276.74 feet) along the boundary of said Kent Road; thence South 88 degrees 59 minutes 45 seconds West 56.719 meters (186.09 feet) along said boundary; North 82 degrees 04 minutes 38 seconds West 20.552 meters (67.43 feet) along said boundary; thence North 46 degrees 12 minutes 29 seconds West 5.483 meters (17.99 feet) along said boundary to a south line of the owner's land and the point of beginning of this description: thence North 89 degrees and 34 minutes 24 seconds West 4.231 meters (13.88 feet) along said south line to southwest corner of the owner's land; thence North 2 degrees 05 minutes 24 seconds West 4.173 meters (13.69 feet) along the west line of the owner's land to the southwestern boundary of said Kent Road; thence South 46 degrees 12 minutes 29 seconds East 6.072 meters (19.92 feet) along the boundary of said Kent Road to the point of beginning and containing 0.001 hectares (0.002 acres), more or less.
Also, a part of the Northwest Quarter of the Northeast Quarter of Section 10, Township 8 North, Range 1 East, Monroe County, Indiana, described as follows: Beginning at a point on the southern boundary of Kent Road North 89 degrees 34 minutes 24 seconds West (assumed bearing) 16.557 meters (54.32 feet) from the intersection of the southwestern boundary of McGowen Road and the southern boundary of Kent Road; thence South 76 degrees 04 minutes 12 seconds West 20.652 meters (67.76 feet); thence South 85 degrees 55 minutes 47 seconds West 44.182 meters (144.95 feet) to the west line of the owner's land; thence North 2 degrees 24 minutes 24 seconds West 8.595 meters (28.20 feet) along said west line to the southern boundary of said Kent Road; thence South 89 degrees 34 minutes 24 seconds East 64.477 meters (211.54 feet) along the boundary of said Kent Road to the Point of beginning and containing 0.035 hectares (0.088 acres), more or less.
Also, a part of the Southeast Quarter of Section 3, Township 8 North, Range 1 East, Monroe County, Indiana, described as follows: Commencing at the intersection of the southwestern boundary of McGowen Road and the southern boundary of Kent Road; thence North 00 degrees 25 minutes 36 seconds East (assumed bearing) 10.058 meters (33.00 feet) perpendicular to the southern boundary of said Kent Road to the northern boundary of said Kent Road; thence North 89 degrees 34 minutes 24 seconds West 16.545 meters (54.28 feet) along the boundary of said Kent Road and the point of beginning of this description: thence North 89 degrees 34 minutes 24 seconds West 67.935 meters (222.89 feet) along said boundary; thence South 88 degrees 57 minutes 24 seconds West 56.967 meters (186.90 feet) along said boundary; thence North 84 degrees 17 minutes 44 seconds West 14.962 meters (48.20 feet) along said boundary; thence North 46 degrees 12 minutes 29 seconds West 14.693 meters (48.21 feet) along said boundary; thence North 10 degrees 11 minutes 32 seconds West 16.794 meters (55.10 feet) along said boundary; thence North 5 degrees 19 minutes 34 seconds West 18.895 meters (61.99 feet) along said boundary; thence South 27 degrees 34 minutes 15 seconds East 10.905 meters (35.78 feet); thence Southeasterly 86.270 meters (283.04 feet) along an arc to the left and having a radius of 129.560 meters (425.07 feet) and subtended by a long chord having a bearing of South 70 degrees 25 minutes 39 seconds East and a length of 84.685 meters (277.84 feet); thence South 86 degrees 04 minutes 28 seconds East 50.163 meters (164.58 feet); thence South 76 degrees 01 minute 03 seconds East 20.567 meters (67.48 feet) to the point of beginning and containing 0.179 hectares (0.442 acres), more or less.
BE IT FURTHER RESOLVED that the Treasurer of Indiana University is authorized to execute any and all documents for and on behalf of Indiana University and to take such other actions as may be necessary and convenient to implement this resolution and to convey the real estate described herein to Monroe County, Indiana.
Unanimously approved on motion duly made and seconded.
a. Geologic Field Station
Trustee Eichhorn said that the Facilities Committee heard a presentation on the Geologic Field Station located in Montana. He said that it is a unique facility and offers great opportunities for geological investigation by students in a very diverse geological environment. He said that several alternatives were presented, and the committee decided to create a sub-committee to examine the proposals and make a recommendation regarding upgrading the facility, which is currently in a very primitive state.
Trustee Cook stated that facility is 40 years old. He said that he was impressed with his visit to the station last fall and that IU has a unique opportunity as a University for teaching students a new technology or a new profession. The station currently accommodates 65 people, which will not begin to fill the need for these students. He said that the department is developing the curriculum; however, there is a need for state-of-the-art technology implementation and habitable facilities appropriate for winter accommodation. Trustee Cook also commented that the Field Station is in a beautiful setting, and noted that there is some property available that could, if purchased, protect it against encroachment by development.
Trustee Eichhorn said that the Field Station is a very valuable asset of the University, but the committee was not yet ready to recommend any course of action. He said that it does need improvements and additions, but the precise course of action will be determined and submitted at a later date.
Initial Appointments
Unanimously approved by motion duly made and seconded.
Mr. Perrin said that he and is wife, Shirley, were deeply honored and very humbled to have this vote of confidence. He said that they are delighted to become part of the IU family and had spent a glorious morning on the South Bend campus. He said that is looking forward with great anticipation to working with the trustees, administrators, faculty, staff and students.
Initial Appointments
Reappointments and Changes of Status
Resignations and Cancellations of Appointments
Unanimously approved by motion duly made and seconded.
Reappointments and Changes of Status
Unanimously approved by motion duly made and seconded.
Approval was requested for recommendations for Distinguished Rank Appointments. These appointments will be announced on Founder's Day, March 1, 1997, and reported for the record at the April 4, 1997 Board Meeting.
Unanimously approved by motion duly made and seconded.
Approval was requested of recommendations for Honorary Degree recipients that have been previously presented. These degrees will be conferred at various commencements and will be reported for the record at the June, 1997 meeting of the Board.
Unanimously approved by motion duly made and seconded.
Trustee Mack noted a correction to the date on one of the statements.
Approval was requested for the award of degrees as of December 31, 1996.
Unanimously approved on motion duly made and seconded.
1. Consideration of Teaching Excellence Recognition Awards
Board President Walda recalled that at last month's meeting the Board heard the report from the President's Committee on Teaching Awards with its recommendations regarding the implementation of the teaching excellence awards. He said there was some discussion among the participants who differed in their views as to how the money should be divided and/or spent. The trustees asked them to work together to find a compromise recommendation. He called on Deborah Freund, Dean of the Faculties, to give a report on the recommendation.
Professor Freund thanked the trustees for allowing the extra month for the faculty to work out a compromise. She said that three concerns were raised in their discussions. The first was whether awarding bonuses to 25% of the faculty was too many faculty members. She said that this clause did not change because the original President's report suggested that no more than 25% be awarded bonuses. The second concern related to the size of the awards, and in order to provide campuses with flexibility, knowing local campus conditions and in order for the mathematics to come out properly in some cases, that phrase was reworded. The third concern, which comprised the bulk of their discussion, regarded the issue of setting aside a maximum of 15% of the funds for each campus to spend in faculty development geared towards the people who need it the most. She explained why she believed this was a laudable idea. She said that the original suggestion of a bonus would be in the end to improve teaching. She said that it is unlikely that a single approach would solve a complicated problem, and that setting aside 15% of the money would provide another means of improving teaching. She said this compromise preserves the integrity of the original suggestion and does not diminish its power in any way.
Professor Bill Burgan commented that the question of the percentage of eligibility and the change for the amount of the award was based on doing the calculations at IUPUI. He said that the UFC had found significant complexity and differences both between campuses and between schools on the larger campuses in terms of the numbers of full time faculty, the salaries of faculty and the tuition rates and number of students taught. He said that changing the wording would give better flexibility.
Professor Ed Greenebaum said that this project has been underway for approximately one year. In that time, there has been extensive discussion and concern from the campuses about what they need to accomplish the goals indicated by the Board of Trustees. He said that the concern expressed regarding the need for flexibility led to the UFC adopting the recommendation they made to the Board at the December meeting. He said that he and Professor Bill Schneider held perspectives of faculty representatives, and Professor Freund came from the perspective of the chair of the committee appointed by the President with a particular mandate which they acted on in a very constructive and effective way. He said that the work they had done in the past month was based on the mandate from the trustees to find some resolution of the matter that would to some degree be responsive to those constituencies, and at the same time, be a resolution that the Board might find acceptable. He said that there are some aspects of this recommendation that are not entirely consonant with what members of both of these groups have thought. But, he said they had made their best effort and offered it to the Board for consideration.
Board President Walda said that all the trustees appreciated the manner in which the faculty responded to their request. He also said that they understood that Professors Greenebaum and Schneider were put in difficult circumstances and he underscored the trustees' gratitude for the constructive manner in which they approached the recommendation brought to the Board. He said that the trustees recognized Professors Freund, Greenebaum and Schneider and others had spent a significant amount of time and energy on this project. He expressed appreciation to all of them on behalf of the Board for their efforts.
Trustee Richardson proposed removing the previously introduced motion from the table and making a new motion of the new resolution. He said that the adoption of this resolution would fulfill several items spoken to in the Strategic Directions Charter, most obviously that which specifies the University will provide rewards for excellence for all who teach in the University. He said that there has been some discussion on the question of whether IU does properly evaluate and reward teaching. He said that this resolution will settle that question and will demonstrate that the trustees care enough about the teaching efforts made by all faculty to reward them and show appreciation to them. Trustee Richardson then reviewed the 13-month history of the process used to bring forth this recommendation, which included campus reviews, trustee reviews, the President's committee's work, and fine-tuning in the last month of the process. He commended the efforts of all involved, and especially noted that the UFC had been doing a splendid job with addressing issues brought to them.
Trustee Richardson addressed the two suggestions brought forth. He said that if a campus decided to give $2,500 to all of their winners, and to delete 15% for faculty development, only 8.5% of the faculty would receive rewards, which is a totally different concept than the 25% that was discussed. It gives a richer reward to a much smaller number of faculty, which is a change in character of the award. He said that he was not sure that this was intended, and that the revised resolution would allow awards ranging from $500 to $2500, and that the average award would be $1,000, per the recommendation of the President's committee. The $2,500 would not be allowed to be given to all recipients, but would be reserved for cases of exceptional merit. Trustee Richardson said that taking the faculty development money out of the award pool would significantly reduce the available money, and he called on Trustee Eichhorn for an alternative solution.
Trustee Eichhorn said that the revised resolution did not give any consideration to the proposal that 15% of the TERA funds be used for faculty development. However, he said that President Brand had agreed to make a sum available from the strategic directions fund for faculty development that would be commensurate with the 15% proposal. This solution would not reduce the amount of money available for faculty awards.
President Brand added that the source of the funding would be the strategic directions set aside monies. In order not to disturb the on-going process of the second round, these monies would be taken out of the third round, but be made available immediately. The amount would be $150,000, or 15% of $1 million. So it would be available at the same time that this resolution goes into effect, keeping in place the second round of strategic directions, but coming out of the third because it fits in with the strategic directions principles of improving and rewarding teaching.
Trustee McKinney asked if the strategic directions committees would set the distribution method for the faculty development funds.
President Brand responded that they would. He said that it would be done by a proposal basis in the same way as the strategic directions monies.
Trustee McKinney said that he was in favor of the proposal. He said that the three-year review will allow ample review time to make adjustments as necessary.
Professor Greenebaum said that Professors Schneider, Burgan, Freund and himself were all in agreement that the $1,000 average component of the proposed resolution should be dropped because the mandate for the average award to be $1,000 would be very difficult to achieve without undermining the success of the program. He emphasized that he did not perceive any spirit to make the rewards as large and few as possible.
President Brand asked whether it would be preferable to go back to the original report "$500 to $1,500."
Professor Greenebaum said that the report submitted by Professor Freund contained the preferred language.
Professor Freund stated that the language read, " Awards should range between a minimum of $500 and a maximum of $2,500."
President Brand asked whether leaving the amount at $500 to $1,500 would provide more flexibility.
Board President Walda asked Professor Schneider to give an example of why mathematically this becomes a problem.
Professor Schneider said that it depends on how the campuses decide to allocate the funds and whether a campus has a large number of schools. He said that it could be based on credit hours taught, tuition generated, or simply on the number of faculty. He said that it makes the most sense to make the allocation of funds to the schools and then let the schools decide how they wanted to administer it, to involve the department or not. But, he said, there will be differences in averages between the schools. The $500 to $2,500 was the range picked to provide the necessary flexibility. He said that averages would be impossible to maintain because first the money would go to the schools and the departments. They would then have to report back and then it could be determined if the averages were right.
President Brand asked whether leaving the award between $500 and $1,500 would simplify matters.
Professor Schneider said that it would simplify the administration but it would not give the flexibility that might be needed. He said that some schools might need the flexibility to have the range go to $2,500. He reiterated Professor Greenebaum's statement that there was no intent to subvert it, but it was a matter of letting the average fall the way it falls. Of course, the awards will be reviewed and they could see how the averages came out.
Trustee Richardson said that he did not see anything in the President's committee report that placed restrictions on whether the money goes to a school, a department or a division, so that level of flexibility is already there. He said that he understood the mathematical issues, but that the flexibility is there for the campus. He said that the campus can divide the money in such a manner that works best under the flexibility provided in the President's committee report.
Professor Schneider said that the point with this is how closely the trustees want to manage the way these awards are determined. He said that if the trustees feel that it needs to be kept within the $500 to $1,500, that would be their decision. The recommendations that were made came from a spirit of allowing those decisions to be made without the encumbrances of keeping track of averages and having the flexibility to make the awards depending on the number of faculty and the number of students taught. Narrowing the numbers would make it more restrictive.
Trustee Mack said that the last thing this Board wants to do is micro-manage. He said that they have an opportunity with seven campuses for an experiment where each campus is a laboratory. They will be reviewing this each year. He said that they do want to delegate the responsibility. He said that it was important to decide and move on, and that he did not want to see this issue postponed another month. He referred to figures that Vice President Palmer had provided, which indicated the number of faculty, number of teaching awards, and budgeted reserve, comes to $956,922 available for this program. He suggested that the awards be established in the range of $500 to $2,000 without an average, and let the chancellors and the deans manage the program.
Trustee Richardson said that the President's committee report indicated a considerable amount of flexibility with no mandates to the campuses about how to distribute the money among schools or divisions. However, he pointed out that this award was intended to be a pat on the back with a financial award attached to it. It was never intended to be so large that people would look at it with envy, but was intended to be around $1,000 which provides some compensation, but not too much. He said that raising the amount to $2,000 or $2,500 changed the character of the award. He said that he would like to see the amounts set at the levels of $500 to $1,500 as suggested by President Brand. He said that he would like to amend item four of the resolution before the trustees to read, "Authorizes the maximum award of $1,500 and a minimum award of $500." This would eliminate the provision for an average amount.
Board President Walda asked if that would include the suggestion made by Trustee Eichhorn, with President Brand's support, to include $150,000 out of strategic directions funding for faculty development.
Trustee Richardson said that it would, though he did not think it was appropriate to obligate strategic directions funding in a teaching award motion.
Board President Walda indicated that he was trying to avoid another motion.
Trustee Richardson said that as long as it was in the record that President Brand had committed the $150,000, he was sure that would happen.
Trustee McKinney said that he recalled a recent impassioned presentation about the fact that we were allocating too much money and the awards would be too high. He said that he was surprised by the $2,500 amount. He said that he wanted to do what was best, but there was conversation earlier that even $1,500 was too much.
Professor Schneider said it is better characterized as not mandating an award of $2,000 or $2,500; it was to allow those at the ranks of the schools or the departments to make that decision while giving them as much flexibility as possible. He said that a pat on the back differs from person to person and the need is to allow that decision to be made there, not to raise the rewards.
Trustee McKinney said that some faculty members did ask for the level to be kept low.
Professor Schneider said that those faculty members will be able to decide that but at the same time not restrict other faculty members.
Board President Walda reiterated the motion.
Trustee Mack said that these awards would be determined by April, 1997, and the trustees would then receive a report on the winners.
RESOLUTION ON TEACHING EXCELLENCE RECOGNITION AWARDS
WHEREAS, the Indiana University Board of Trustees has approved the Strategic Directions Charter; and,
WHEREAS, the Strategic Directions Charter asks that we "place student learning...first in the University's mission", and "encourage innovative advances in teaching...," and states that "We will provide rewards for excellence for all who teach in the University; and,
WHEREAS, the Board of Trustees requested that a method be developed to reward teaching excellence; and,
WHEREAS, the President's Committee on Teaching Awards, after receiving advice from the University Faculty Council, has filed its recommendations with the Board of Trustees.
NOW, THEREFORE, BE IT RESOLVED, that the Board of Trustees:
1. Adopts the final report of the
President's Committee on Teaching Awards,
2. Releases the
award funds to the campuses,
3. Specifies that all of the
award money go to award winners, who then, pursuant to the
Committee's recommendation, "may choose whether to receive the
award in cash or to establish an account to be used for other
professional purposes,"
4. Authorizes a maximum award of
$1,500.00 and a minimum award of $500.00,
5. Requests that
the first year's awards be made no later than April, 1997.
Unanimously approved on motion duly made and seconded.
Board President Walda said that in his hometown, as well as in most towns, Martin Luther King, Jr. Day is a special occasion and a unique occasion during which people from the community of all different backgrounds get together to recognize commonly held truths. He also recalled President Clinton's recent inaugural speech, in which the President spoke of the impact Martin Luther King, Jr.'s speech had on him. He said that over the years, it has been under discussion at this University as to the most appropriate way to recognize Dr. Martin Luther King, Jr. and the holiday, which has been recognized nationally honoring his memory. In recognition of this holiday, he asked the Board to consider the following resolution.
RESOLUTION
OBSERVING THE
MARTIN LUTHER KING, JR. HOLIDAY
WHEREAS, Martin Luther King Day is set aside each year as a national holiday to celebrate the life and lessons of Dr. Martin Luther King, Jr.; and,
WHEREAS, communities throughout the State of Indiana converge on the Martin Luther King holiday at events which celebrate their diversity and at the same time promote their collective spirit; and,
WHEREAS, Indiana University has, for years, considered what action is the most appropriate way to recognize the life, accomplishments and inspiration of Dr. Martin Luther King, Jr.; and,
WHEREAS, it is appropriate and consistent with large segments of our community to set aside Martin Luther King Day as a holiday.
BE IT THEREFORE RESOLVED THAT:
1. Martin Luther King Day, beginning in January, 1998, shall be observed as a holiday on all Indiana University campuses; and
2. All appropriate efforts shall be made by the university to provide events which highlight the life and philosophy of Dr. Martin Luther King, Jr. on and surrounding the holiday; and
3. Efforts shall be made to adjust the university calendar so as to accommodate the observance of this holiday.
President Brand clarified that classes will not take place on that day.
Trustee McKinney stated that this resolution is very appropriate. He said that one campus already observes the holiday, and he said that it was appropriate to have a policy that pertains to the entire University, not just individual campuses.
Unanimously approved on motion duly made and seconded.
Board President Walda called on University Counsel, Dorothy J. Frapwell to address the issue of IU employees serving as trustees.
Ms. Frapwell stated that she had been asked to determine if a policy prohibiting University employees from serving on the Board could be vulnerable to a legal challenge. She said that there is no case law or authority on point in Indiana that addresses this specific issue. Nevertheless, she said that it was her opinion that such a policy could be vulnerable to a legal challenge, particularly in two areas.
The first area concerned legislative issues. She said that the legislature has passed several statutes that establish a variety of conditions that apply to the position of trustee. For example, a trustee must be a resident of the state, elected trustees must be alumni, no more than two trustees can reside in one county, and a student shall serve on the Board. She said that there is no statute that expressly states that an employee can or can not serve on the Board. The legislature has, however, in other instances, been willing to limit the ability of individuals to serve on a board. For example, the Higher Education Commission statutes provide that other than the designated faculty member, no employee of any public or private institution of higher education, and no employee of a school corporation or any other educational institution can serve as a member of the commission. So clearly, the legislature has dealt with this issue in some areas and decided they did not want employees serving on the board. They did not do that with regard to the University, and therefore, Ms. Frapwell said she believed, that if IU was to have a challenge to this policy, they would look to that statute and say that the legislators considered this type of situation in the Higher Education Commission, they have not spoken to this issue with regard to the University, and therefore, they did not mean for the employee of the University to be precluded from serving. From a practical matter, she pointed out that any policy the Board passed with regard to this issue could be over-ridden by the legislature in order to ensure that an employee can serve on the Board.
Ms. Frapwell said that there are also constitutional issues that could arise, mostly involving the First Amendment as the right to hold public office is included within the protection of the First Amendment. If the Board took any action, they would need to be able to establish that any action serves a compelling state interest, that it is the least drastic action that will achieve that interest, that all other alternatives to achieve the interest have been considered and been determined not to achieve that interest, and that it has been drawn as narrowly as possible to achieve the compelling state interest and at the same time creating the least possible imposition on an affected individual. Additionally, she said that on a First Amendment challenge, she would anticipate someone saying that by excluding employees the trustees are excluding a particular point of view from the board. It also could make the Board potentially vulnerable to a constitutional challenge.
Finally, Ms. Frapwell pointed out a possible practical problem with legal ramifications. She said that three trustees are elected by the alumni, and six are appointed by the Governor. If the Board adopted a policy prohibiting employees from serving as a trustee, it would serve as a personnel policy. There would be no legislation that would prohibit the governor from appointing whomever he chose, and he could easily choose to appoint an employee to the board. At that point, IU would be in the position of having to terminate the employee or put them on a forced leave of absence. Although Indiana is an at-will state for employment purposes, an employee cannot be removed from employment for exercising a statutory or constitutional right. If that were ever to occur, it would be another means of challenge to this policy.
In conclusion, she said the trustees have the authority to adopt such a policy. If they did, however, she would anticipate legal challenges, and in fact has already heard from people who are prepared to challenge it if such a policy was passed. She said that while there is no case law, there are significant issues that should be of considerable concern to the Board as they consider this issue.
Board President Walda said that this issue was brought to the Board's attention through a very thoughtful communication from former Trustee Harry Gonso. In response to Mr. Gonso's inquiry and observations, Mr. Walda said he had asked Ms. Frapwell to research the issue and give a report. He opened the floor for trustees to ask questions or express any reviews with regard to the issue and to whether the Board should take any action at all.
Trustee McKinney said it was very customary for companies and private companies to have certain personnel rules about serving on outside boards because of either conflicts of interest or conflicts of time. He said that he did not think the IU Board of Trustees should contemplate having some rule that there shall be no employee on the Board. He said that such action would clearly go beyond what they should be doing. He said that he was not sure that the trustees should be involved in what this personnel policy is, and that it should be up to the President. He said that any enterprise should have some reasonable rules about time and service and he suggested that IU have such a rule.
Ms. Frapwell said that adopting a policy of this sort would not be a problem. She added, however, that many private companies can take actions that IU cannot take because IU is considered the state when this type of action is taken.
Trustee McKinney agreed with Ms. Frapwell's assessment of the difference in a private company and a state institution, but he said that the private companies have the rules for a reason nevertheless, and that is to say that it is only reasonable that employees earn their pay and do what they are supposed to do.
Ms. Frapwell said that the trustees could mandate in a policy that an employee must take vacation time, if that is appropriate, when serving on the Board. She said that they could designate a list of areas in which an employee would be expected to disqualify herself/himself from voting if a matter came before the Board. She said that these kinds of rules could be more narrowly drawn and would achieve the same end, that is, to avoid a conflict of interest.
Trustee McKinney asked if any of those rules currently exist.
Ms. Frapwell said she was not aware of any.
Trustee Swedeen said that all the Trustees received a copy of the language from the Academic Handbook, which addresses outside activities by employees, indicating that employees simply need to disclose these activities.
Ms. Frapwell said that the Academic Handbook applied to faculty, and not to staff.
Trustee Swedeen agreed, but pointed out that the rules were the same for faculty and staff on this issue. They must disclose the activity, perform the duties and responsibilities for which they were hired, and not use any University resources in carrying out these responsibilities.
Ms. Frapwell concurred with Trustee Swedeen, but she pointed out those rules are for general policy. They do not apply specifically to the position of IU Trustee.
Trustee Cook said that on any board of directors or board of trustees, it is not unusual for a person who would have a conflict of interest or a perceived conflict of interest to refrain from voting. He said that he thought this went to the heart of the problem. He also said that he personally liked to see people work for a good cause, and if someone takes the time and makes the effort to run for a position like this, more power to them.
Trustee Mack said that for the last several years, the alumni association has been trying to increase participation of alumni to run for office, and also to increase the voting. Based on the principle of inclusion, he said that he did not think the trustees should try to exclude any group.
Board President Walda called for other comments, resolutions, or motions. Seeing none, he thanked Ms. Frapwell for her report.
Indiana University-Purdue University Indianapolis – February 27-28, 1997
The meeting adjourned to meet again on call of the Secretary on February 28, 1997 in Indianapolis.
J. Susan Parrish, Secretary
THE TRUSTEES OF INDIANA UNIVERSITY
A. The Report of Special Purchases appears in the appendices.
A. INDIANA UNIVERSITY BLOOMINGTON
1. Read Hall - Renovate Two Elevators
| Date of bid opening: | November 6, 1996 |
| Bidders: | 3 |
| Contract award: | low bidder, Millar Elevator Service Company, Indianapolis, IN |
| Amount: | $164,319 |
| Estimate: | $179,760 |
| Funding: |
Read Hall Building Repair Account # 92-435-01 |
| Architect: | Stuard & Associates, Inc., Martinsville, IN |
This work will renovate, modernize, and fulfill accessibility requirements on the final two elevators at Read Hall. The elevators are located in the Clark and Landis wings of this undergraduate dormitory. The project includes new controls, a hoist way landing system, hoist machines, cables, and wiring. Car and hoist way doors and operator equipment will be replaced. Push-button fixtures will be installed.
B. INDIANA UNIVERSITY-PURDUE UNIVERSITY AT INDIANAPOLIS
2. Various Buildings - DSM Lighting Retrofit
| Date of bid opening: | November 8, 1996 |
| Bidders: | 2 |
| Contract award: | low bidder, Hatzel & Buehler, Inc., Greenfield, IN |
| Amount: | $573,000 |
| Estimate: | $708,000 |
| Funding: | Campus Utility Savings and a grant from Indianapolis Power and Light |
| Architect: | Indiana University Staff |
Buildings affected by this project include the Dental School, Fesler Hall, the Law School, Medical Science, the Physical Education portion of the Natatorium, the Nursing School, the Union, and the Union North. High-efficiency type lamps and ballasts will be installed to improve lighting and to reduce energy demands and costs. Existing fixtures and lenses will be cleaned or replaced.
3. University Hospital - Renovation of Gastroenterology Offices
| Date of bid opening: | November 6, 1996 |
| Bidders: | 7 |
| Contract award: | low bidder, Pepper Construction Company of Indiana, LLC, Indianapolis, IN |
| Amount: | $130,000 |
| Estimate: | $200,610 |
| Funding: |
Medical Department/Other Account # 11-825-62 |
| Architect: | CSO Architects, Indianapolis, IN |
The existing partitions and finishes will be removed and new partitions constructed to create private offices. The existing ductwork, electrical wiring, and sprinkler piping will be redistributed. New finishes will be applied.
4. Herron School of Art - Emergency Roof Repairs
| Date of bid opening: | November 22, 1996 |
| Bidders: | 2 |
| Contract award: | low bidder, Ralph R. Reeder & Sons, Inc., Indianapolis, IN |
| Amount: | $50,853 |
| Estimate: | $55,000 |
| Funding: | 1995-97 Capital Appropriation for Repair and Rehabilitation |
| Architect: | Indiana University Staff |
This deteriorated roof is leaking badly. Repairs will be made of all splits, blisters, ridges, bare felts, deteriorated flashing and skylight frames.
C. INDIANA UNIVERSITY SOUTHEAST
5. Hillside Hall and Library Building Remodel
| Date of bid opening: | September 17, 1996 |
| Bidders: | 3 |
| Contract award: | low bidder, R.B. Banta Co., Inc., Louisville, KY |
| Amount: |
Base bid Alternate 1 Alternate 2 Alternate 3 Alternate 4 Alternate 5 |
$498,425 4,640 13,965 5,949 4,471 2,238 $529,688 |
| Estimate: |
Base bid Alternate 1 Alternate 2 Alternate 3 Alternate 4 Alternate 5 |
$475,000 12,500 11,500 15,000 4,750 3,500 $522,250 |
| Funding: | Bond Proceeds for Construction of Knobview Hall and Ogle Center |
| Architect: | Frank M. Adams, Jr. & Associates, Columbus, IN |
Areas vacated with the completion of the Ogle Center will be renovated under this contract. Space on the ground floor of Hillside Hall will be reconfigured and refinished to provide classrooms, computer areas, restrooms, and offices. In the Library, former theater space will become a student lounge, the gallery will be renovated into a classroom, and the scenery shop will provide stacks space.
A. Approved Change Orders
A list of approved change orders appears as an exhibit for information of the Board.
A. INDIANA UNIVERSITY - President Brand
NO ITEMS
B. INDIANA UNIVERSITY BLOOMINGTON - Vice President and Chancellor Gros Louis
Visiting Appointments
Reappointments and Changes in Status
Changes in Sabbatical Leaves and Leaves of Absence
Retirements and Emeritus Titles
Appointments to Graduate School Faculty
C. INDIANA UNIVERSITY-PURDUE UNIVERSITY INDIANAPOLIS - Vice President and Chancellor Bepko
Initial Appointments
Reappointments and Changes of Status
Leaves of Absence and Changes in Sabbatical Leaves
Retirements and Emeritus Titles
D. INDIANA UNIVERSITY EAST - Chancellor Fulton
NO ITEMS
E. INDIANA UNIVERSITY-PURDUE UNIVERSITY FORT WAYNE - Chancellor Wartell
Reappointments and Changes of Status
F. INDIANA UNIVERSITY KOKOMO - Chancellor Hill
NO ITEMS
G. INDIANA UNIVERSITY NORTHWEST - Chancellor Richards
Reappointments and Changes of Status
H. INDIANA UNIVERSITY SOUTH BEND - Interim Chancellor Lamon
Reappointments and Changes of Status
Retirements and Emeritus Titles
I. INDIANA UNIVERSITY SOUTHEAST - Chancellor Richardson
NO ITEMS
NO ITEMS