BUDGET AND FINANCE COMMITTEE. April Minutes

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1 BOARD OF GOVERNORS BUDGET AND FINANCE COMMITTEE April Minutes The meeting was called to order at 12:30 p.m. by Governor Driker in the Alumni Lounge, Alumni House. Secretary Miller called the roll. A quorum was present. Committee Members Present: Governors Bernstein, Hardy, Driker, Massaron, and Washington; Michael McIntyre, Faculty Representative; Charles Elder, Faculty Alternate Representative Committee Members Absent Mohammed Luwemba, Student Representative Joshua Smith, Student Alternate Representative Also Present: Governors Dunaskiss, Hillegonds, and Miller, and President Reid; Provost Barrett and Executive Vice President Gibbs; Vice Presidents Davis, Hollins, Lessem, and Oliver; Secretary Miller APPROVAL OF MINUTES, FEBRUARY 4, 2004 ACTION: Upon motion made by Professor McIntyre and supported by Governor Massaron, the Minutes of the meeting of February 4, 2004 were approved as presented. CONTINGENCY RESERVE Provost Barrett outlined the proposed request for funds needed to accommodate expenses that will be incurred in association with preparation for the North Central Accreditation visit, scheduled to occur in the academic year. A special fund will be set up which will allow the university to show exactly how university resources were spent on preparation for accreditation. 2614

2 2615 Budget and Finance Committee ACTION: Upon motion made by Governor Massaron and supported by Governor Washington, the Budget and Finance Committee approved the transfer of $25,000 from the FY 2004 Contingency Reserve to cover anticipated costs of preparing for North Central Accreditation. The motion carried. COHN BUILDING CLASSROOM CONVERSION Vice-President Davis presented the proposal for conversion of classroom space in the Cohn building for a new patient simulation laboratory and a new computer laboratory. ACTION: Upon motion made by Governor Massaron and supported by Governor Washington, the Budget and Finance Committee recommended that the Board of Governors authorize the President or his designee to design, solicit bids and award contracts to convert two classrooms in the Richard Cohn Building (College of Nursing) into a new patient simulation laboratory and a new computer laboratory for a total cost not to exceed $200,000. Funding for this project will be provided from the College of Nursing. The motion carried. MATTHAEI SWIMMING POOL RENOVATION Vice President Davis outlined the project, which is to renovate the swimming pool at the Matthaei Athletic complex. Professor McIntyre indicated that the Senate Budget Committee commented in their review of this proposal that it would be difficult to comment on whether this project should go forward without a larger list of priority items upon which this would be balanced, and that renovations at Matthaei are at the edge of the university s core function. Vice President Davis commented that a priority list of deferred maintenance projects was circulated to the Board members earlier this year, and that the list is now being updated. He will circulate the update list to the Board and to the faculty and student representatives on the Budget and Finance Committee. Governor Dunaskiss asked how long the repairs to the pool lining will last, and whether it needs to be totally replaced in the future. Assistant Vice President Jim Sears indicated that in 1997, the Board appropriated funds to heat the lap pool at Matthaei, which included as part of the project, a liner. This project will repair

3 Budget and Finance Committee 2616 some minor problems with the concrete underneath the liner. The current liner has a life expectancy of approximately 20 years. Professor Elder asked who utilizes the facility, how extensively it is used, and for a description of the original purpose of the facility. Assistant Vice President Sears indicated to the best of his knowledge, the building is used extensively by the athletic program, the physical education program, and through public outreach activities where the community-at-large uses the facilities, including the pool. President Reid added that employees and students also utilize the pool for lap swim. Vice President Davis indicated that when the university acquired the land in the 1960 s, part of the agreement was that the Matthaei complex would reach out to the public. Governor Bernstein asked Professor McIntyre for his recommendation on what the Board should do on this proposal, and asked him how he intended to vote. Professor McIntyre indicated that he planned to abstain, because he did not have enough information on other university needs for funds, and that he did not have a recommendation for the Board. From his perspective, the Senate Budget Committee would like to participate in the budgeting process, and this decision seems to be one that affirms a critical need versus a budget decision. Governor Massaron asked Professor McIntyre whether the Senate requested additional information from the administration at the point that they reviewed the proposal. Professor McIntyre indicated that there was very little time to get additional information. Governor Massaron indicated his support for the proposal, and stated that he believes the proposed repairs are necessary to maintain the pool for its users, including students, employees and members of the community. He further indicated that the Board is often asked to make judgments when items come forward that need repair, and based on his knowledge of maintenance needs for pools of this size, he was surprised that these type of repairs were not needed sooner. President Reid added that in addition to the other issues already discussed, there are health considerations and standards to be maintained. If this pool did not meet standards, the university would have to find another facility in which to conduct the instructional program in health and physical education. There are not a lot of other alternatives available. While the athletics component is important, the programmatic component is also relevant, in addition to athletic competition, outreach and recreation. Provost Barrett concurred that it would not be possible to maintain an instructional program in the College of Education without a pool. Governor Driker asked whether the university has an intercollegiate swimming team. President Reid confirmed that the university has both a men s and women s swim team.

4 2617 Budget and Finance Committee Governor Driker commented that there is a significant amount of information on deferred maintenance and priorities that has been distributed over time, and that he does not expect the administration to resubmit the list of priorities each time a proposal comes forward. He believes the Board needs to rely on the judgment of the people managing the facilities and dealing with the day-to-day problems to make recommendations on what they believe is most important. It would be very unusual for the Board to micromanage the selection process. Governor Hardy indicated that while the questions about the facility s use are important, she concurred with Governor Driker that the Board should look to the people who are familiar with the condition and details of the buildings in question. ACTION: Upon motion made by Governor Massaron and supported by Governor Washington, the Budget and Finance Committee recommended that the Board of Governors authorize the President or his designee to design, solicit bids, and award contracts for the renovation of the swimming pool at the Frederick C. Matthaei Building for a total cost not to exceed $340,000. Funding for this project will be provided from the University s Deferred Maintenance Reserve. The motion carried, with one abstention. MATTHAEI ATHLETIC COMPLEX STADIUM AUXILIARY BUILDING RENOVATION Vice President Davis gave the Board an overview of this project. There was an initial proposal approved by the Board in October 2003 to repair the heating system in this building, as a deferred maintenance project. There are additional maintenance projects in the building for which funding has now been identified, and the project before the Board combines the needed heating/cooling repairs with some additional building upgrades, including air conditioning, and repairs to showers and restrooms. Governor Bernstein asked whether this project should be part of a larger discussion of athletics at the university, and perhaps the project should be tabled until the discussion on resources and spending for athletics at the university can take place. Governor Washington indicated that it is her understanding that work on this project needs to begin now so that it can be completed in time for the Fall 2004 semester, and that full discussions on the review of the athletics program may not be completed until the next Board meeting. Governor Miller asked about improvements in insulation, and what will be done to make it more environmentally efficient. Assistant Vice President Sears indicated that all of the university s roof systems contain some type of insulation, but this particular project does not include thermal efficiencies except for those related to

5 Budget and Finance Committee 2618 the heating ventilation and air conditioning. He confirmed that he will look into this issue as it relates to new heating and cooling equipment. Vice President Davis reaffirmed that for any university dollars spent, the university tries to take utility savings into consideration. Governor Massaron stated that regardless of the future of the athletic program, the improvements being made to this building will provide a better facility that will be fully utilized in the future. He commented on the challenging environment facing athletes who currently use this facility, especially in the summer time, with the poor air circulation, and failing shower and restroom facilities. Professor McIntyre clarified that the Senate Budget Committee did not oppose the projects being discussed, but have a broader issue with process. If the administration feels that these are high priority items, the Senate Budget Committee would like to know what other issues are under consideration. They are not looking to micromanage. Governor Massaron asked Professor McIntyre when he received his Board materials, and when the Senate Budget Committee met to review them. Professor McIntyre indicated that he received his packet on Friday, and the review meeting is held on the Monday before the Board meeting. Governor Massaron suggested that the Senate Budget Committee should consider inviting someone from the Budget Office or the Finance Office to their meetings to be able to respond to questions they have before the Board meeting. ACTION: Upon motion made by Governor Washington and supported by Governor Massaron, the Budget and Finance Committee recommended that the Board of Governors rescind the authorization for the $275,000 Stadium Auxiliary Building Heating System Renovation project that was approved at the October 1, 2003 Board meeting, and further recommended that the Board of Governors authorize the President or his designee to design, solicit bids, and award contracts for the renovation of the Stadium Auxiliary Building, including the heating system renovation, for a total cost not to exceed $825,000. Funding for the project will be provided from the funds previously allocated for the heating system renovation ($275,000), the Athletic Department ($100,000), and an allocation ($450,000) from sponsorship fees received from the Pepsi Bottling Group, LLC. The motion carried, with one abstention. Prior to adjournment, Professor McIntyre stated that earlier in the year, the Budget and Finance Committee requested quarterly budget reports from the administration. The quarterly update to be presented at today s Board meeting is scheduled to be presented to the full Board later in the day, rather than to the Budget and Finance Committee. Professor McIntyre asked that future reports be

6 2619 Budget and Finance Committee presented to the Budget and Finance Committee, to provide an opportunity for all committee members to comment. ADJOURNMENT There being no further business, the meeting was adjourned at 12:58 p.m. Respectfully submitted, Julie H. Miller Secretary to the Board of Governors JHM:dlh

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