Steve Lawrence, associate vice president of Facilities Management, requested permission from the board on proposed renovations to Pearce and Powers halls totaling $24.5 million.

Lawrence detailed the proposed addition of graduate student housing, which would be composed of two buildings near Sloan Hall by Preston Street.

The buildings would each be three floors with one-, two- and four-bedroom facilities that could house 164 students total.

One of the proposed buildings would include a fitness center and both would feature conference centers.

He said the buildings should be considered replacements for the Washington Apartment complexes demolished to make way for the EHS building.

“I expect to give a summertime briefing for the president,” Lawrence said.

The Student Activity Center’s fitness room will be completed in March, Lawrence said. The final product will be 4,500 square feet — a 65 percent increase.

The renovation of the University Center will be complete in December. Lawrence said the project’s completion will be done in phases: Both the third floor and the East Wing of the Main floor’s renovations will be completed in April; the Lower Level’s East Wing will be complete in August, and the Main floor’s East Wing and Lower Level West Wing will be completed in December.

Barrie Wilkes, associate vice president of Financial Services and Reporting, said negotiations over the proposal by Lodgco Hospitality LLC to build a hotel east of Kelly/Shorts Stadium is moving forward.

“It’s something we’re working on,” he said. “We are getting more refined drawings. We need to finalize the lease agreements.”

He said to expect an agreement within a month and he would have “better numbers” at that point.

Lodgco and the university hope to have construction complete for an August 2012 opening, and the proposed suites added onto Kelly/Shorts in time for the 2012 Central Michigan University and Michigan State University football game.

Lawrence said construction of the College of Medicine will be completed in September, and employees can move into the building in January 2012.

“The building’s progress is on target and on track,” Lawrence said.

University President George Ross said during the College of Medicine meeting the decision to delay opening until 2013 was not made by the Liaison Committee on Medical Education. He said 10 medical schools nationally that have made similar decisions.

“While it was a difficult decision to make, we believe it was the right decision,” Ross said.

Ross said they are trying to redefine how doctors are trained in the U.S.; this new strategy will affect the mid-Michigan region for “decades and decades to come.”

More than $1 million from internal funding is available for the College of Medicine; the goal is to reach $25 million.

“We feel like we’re right on the cusp of a couple contributions to come through,” said Kathy Wilbur, vice president of Development and External Relations. “We heard from alums who want to be at the table as well and we’re very pleased about that.”

Wilbur said they “need to redo, rewrite, re-figure, and re-photograph everything.”

“We are asking individuals for very significant (and) large donations,” she said.

The increase will affect all students without the CMU Promise, which includes all students who began attending Central Michigan University in August 2008 and all students who have been at CMU for more than five years.

The Board will meet at 9:30 a.m. Thursday in the President’s Conference Room in the Bovee University Center.

Tuition will be set for the entire year at the meeting, said Heather Smith, assistant director of public relations.

“We do have one set tuition for the school year,” she said. “Historically, our Board of Trustees has approved the operating budget in July.”

The state budget has not been set and CMU is unaware of the appropriations it will receive. Interim University President Kathy Wilbur told Central Michigan Life in June that CMU “will be extremely fortunate if the budget is held constant from this year.”

Wilbur also said students can expect a tuition increase by the Board for the upcoming school year.

“I am not sure what level we will end up at,” she said. “I think you will see a reasonable tuition increase, but I do think there will be a tuition increase.”

Last year, tuition was increased by 6.6 percent, costing students without the CMU Promise $324 per credit hour. Smith said Tuesday there was no estimate on how much the Trustees would increase or decrease tuition by.

Other universities in the state that have set tuition for the upcoming year have all raised theirs by as little as 3.8 percent at Eastern Michigan University, and as high as 6.3 percent at Saginaw Valley State University.

Smith said the increases at other universities are looked at by the Board, but do not necessarily influence CMU’s decision.

Other business

Some of CMU’s traffic ordinances will also be on the agenda. Ojibway, Calumet and Ottawa Courts will all be one-way. Ottawa will be eastbound, Calumet will be southbound and Ojibway will be west bound.

Three new parking lots will be authorized: lots 48, 49 and 56. All three will surround the new Education and Human Services Building. Lot 48 and 49 will contain 40 and 13 parking spaces, respectively, and will be for visitors and picking up and dropping off. Lot 56 will be a faculty-only lot.

The Board will also discuss funding to renovate some CMU-owned buildings. The new Event Center, which construction begins in the fall, will look to have a budget of $21 million. The funding for the new addition to the Health Professions Building will also be examined. The addition, which will house space for the recently-developed medical school, has a proposed budget of $2 million.

Off-campus, the boathouse on Beaver Island – where CMU has a biological station – has a proposed budget of $850,000 to renovate and restore it to historical status.

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Check back to cm-life.com for stories from the Board of Trustees meeting.

9:29 a.m. Vice-Chair Stephanie Comai announces Chairwoman Gail Torreano could not attend the meeting and welcomes Interim President Kathy Wilbur to her first board meeting as president.

9:30 Wilbur introduces Interim Provost Gary Shapiro and medical school Dean Cam Enarson.

9:39 Board grants emeritus rank to Police Chief Stan Dinius, Biological Station Director Dr. James C. Gillingham and General Counsel Eileen Jennings.

9:45 Trustee Hubbard moves to place salary adjustments, sabbatical leaves, awards received, appointments and reappointments of public school academies and appointments to the Clark Historical Library Board of Trustees to the consent agenda.

9:50 Trustee Kottamasu announces medical school fundraising goal of $25 million over 5 years.

9:52 Enarson updates board on medical school and announces good progress in the five categories of accreditation. He said he is pleased with receptivity, interest and commitment to medical school in the community.

9:59 Athletic Director Dave Heeke updates board on Events Center. He said goal in mind is to transform Rose Arena into a fully functioning, multipurpose events center to host concerts, athletic events, community events and graduations.

10:00 Events Center project includes improved seating, practice space, areas to host conferences and banquets, adding teaching spaces and expanding SAC, update lighting and sound systems, air conditioning, restrooms, family restrooms, permanent concessions, permanent ticketing area, media and event productions room and addition of a 4,000-square-foot lobby.

-Project has $21 million budget: construction $17.4 million and soft costs $3.6 million.

-Construction may begin as early as September and is scheduled to be completed October 2010.

-Goal is for Events Center to have same LEED certification as new education building.

10:24 Beaver Island Biological Station boat house at Whiskey Point to be renovated to allow sophisticated experiments and research for faculty and staff. Board approves renovations and cost of $850,000, funded through donations and grants.

10:29 Board approves $500,000 budget for 60,000-square-foot expansion to Health Professions building to meet LCME requirements for medical school.

10:32 Board approves renovations to Ronan Hall to begin in July.

10:56 Vice President for Finance and Administrative Services David Burdette announces operating budget planning options to include 3.6 percent reduction in state appropriations.

11:19 Burdette proposes three different tuition models to board of 4 percent, 5 percent and 6 percent increases, $337, $340 and $343 per credit hour, respectively.

11:36 Trustee Sarah Opperman said board is “narrowing in” on increase between 4 and 5 percent.

11:38 Trustee John Hurd makes motion to increase tuition by 4.8 percent. Seconded by Kottamasu. Motion includes increase in financial aid for need-based students.

11:49 Board unanimously approves undergraduate tuition increase of 4.8 percent.

-2009/10 tuition will be $339 per credit hour for undergraduate students without CMU Promise.

-Out-of-state students to pay $789 per credit hour.

12:05 Board approves all items on consent agenda.

12:06 Co-Chair Comai said presidential search committee is advertising position and has 40 to 50 nominees and seven completed applications.

-Committee to keep open nomination process until Oct. 1, expects interviews to take place in late fall and have president for next academic year.

12:10 Board of Trustees meeting adjourns.

Students not covered by the CMU Promise, which comprises of about 51.4 percent of Central Michigan University’s student body, will pay $339 per credit hour, $15 more per credit hour than the 2008-09 school year.

Students under the CMU Promise will not see a tuition adjustment.

CMU’s tuition increase is 0.44 percent lower than the average 2009-10 increase of eight of Michigan’s 15 public universities, which is 5.24 percent.

The Board also increased student financial aid by $1.8 million to $27.5 million. About $641,000, or 0.6 percent of the tuition increase, will be designated to the Office of Scholarships and Financial Aid for need-based students.

“They wanted additional dollars put toward financial aid,” said Interim University President Kathy Wilbur.

She said the step by the Board, proposed by Trustee Sam Kottamasu, is a different approach than what most universities take. Wilbur said financial aid increases usually only mirror tuition increases.

“This Board has moved a little beyond that, putting additional dollars to make sure that if we increase tuition, that it was absolutely focused on need-based,” she said.

According to a presentation at the meeting, about 90 percent of first-time students receive some sort of financial aid.

The Board also factored in a 3.26 percent decline in state appropriations in this year’s operating budget, and are planning for 5 percent decreases over the next three years.

Trustee Sarah Opperman said CMU would not be able to afford a zero percent increase in tuition with the decline in state appropriations.

“We need to look at a three-to-five year horizon,” said Vice President for Finance and Administrative Services David Burdette.

Burdette proposed three different tuition models to the Board, involving 4, 5 and 6 percent increases included in possible operating budgets.

The 2009-10 operating budget is more than $396 million, including the tuition increase and a nearly $9 million increase in faculty and staff salary and benefit adjustments.

Vice chairwoman Stephanie Comai, who chaired the meeting, said the university’s utility rates will remain the same.

CMU and other universities will have to look at many different ways to finance university operations, she said, because Michigan has reached its peak of high school graduates.

“We’re looking at probably having lower enrollment, which then decreases revenues,” she said.

The Board is looking at ways to cut $10 million from the budget over the next five year, Comai said. Options include furlough days, unpaid vacation days, position reductions and layoffs.

“We need to make sure we are looking just as strenuously inside for budget cuts,” Opperman said.

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The Central Michigan University Board of Trustees appointed Wilbur, who is the vice president of Governmental Relations and Public Affairs, on Thursday to take on the university’s top position.

University President Michael Rao will be leaving June 30 after nine years at CMU to become president of Virginia Commonwealth University in Richmond, Va.

“It’s clear that we are not going to have a (permanent) president immediately,” said Board Chairwoman Gail Torreano. “It’s important we understand life doesn’t stand still, today more than ever.”

Under contract with the university, Wilbur’s salary will increase to $230,000. She will use Rao’s university-provided vehicle, Torreano said, and will be welcomed to utilize the president’s home during the interim period.

“I appreciate your trust and confidence in me,” Wilbur told the Board. “Mike Rao brought me here seven years ago to be part of the CMU family. I’m still here, and I love it.”

Wilbur said she plans to maintain a large focus on fundraising, something the university cannot shy away from, even amidst difficult economic times.

“It must always continue. It might take a little different form and you might get a little different answer from individuals, but that’s fine,” she said. “The work needs to continue.”

Though Wilbur still will do some governmental work for CMU, she said starting in July, the majority of her responsibilities will fall on Toby Roth, director of Federal Programs in Governmental Relations and Public Affairs, and several of her other colleagues.

“The expectation of the interim president, for Kathy, while she will be in Lansing on occasion, I expect she will be here in Mount Pleasant a lot,” said Trustee Stephanie Comai.

Rao praised the Board on its selection of Wilbur as his short-term successor, and said her skill set is what the university needs at this point in time.

“She’s got it all,” Rao said.

He said Wilbur understands the importance of taking CMU to the next level, with a mind set not only to maintain but to propel the institution forward.

“I think that this is someone who figures out how to get through situations that can often be very trying,” he said.

Torreano said Wilbur’s sharp judgment and direct communication skills are invaluable.

“When faced with challenges, she doesn’t avoid them. She hits them head on and figures out a way,” she said.

Torreano said Wilbur will not be considered long-term for the presidency. Because she is part of the presidential screening committee, Wilbur will sign her consent not to pursue the position long-term.

“I think it’s critical during this interim period that we have someone who know this university and knows the direction we’re headed,” she said.

As vice president of governmental relations, Wilbur has worked closely with Rao throughout her seven-year tenure at the university, largely focused on improving state funding by way of Lansing. She acts as a liaison between the CMU administration and the Michigan government, coordinating visits by state leaders to CMU’s main campus and finding links between university programs and the state budget.

Previously, Wilbur served as director of the Michigan Department of Consumer and Industry Services, a company that employed more than 4,000 people and had a budget at around $600 million under her direction.

Torreano described her as one of Rao’s closest colleagues, a woman with the large-scale leadership experience necessary to run a large institution.

“I have great confidence that we will just continue as we have been,” she said. “You have been, I know, Mike Rao’s right hand, sometimes his left too.”

Wilbur said she will continue to be in close conversation with Rao to gain insight on issues with which she is not very familiar.

The university doesn’t just need a ‘maintainer’ right now, Wilbur said, contrary to the belief of some.

“That is the last thing the Board wants, and the last thing President Rao and Monica Rao want,” she said. “I would hope the students, faculty and staff are ready to continue all these movements forward.”

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Chairwoman Gail Torreano announced during the board’s meeting Thursday its choice to retain the services of Pennsylvania-based Storbeck/Pimentel & Associates, LLC as the search firm to assist in recruiting and selecting a new president.

“This firm has done a number of searches for this university. They were the firm that brought President Rao here. That, I think speaks volumes,” said Trustee Stephanie Comai.

An open community forum is scheduled for 4 p.m. Wednesday in the Bovee University Center’s Lake Michigan Room to solicit feedback from the campus community.

The search committee also launched a Web site Thursday at cmich.edu/presidentialsearch.

“We really, really want to hear from people,” said Trustee Stephanie Comai.

Chairwoman Gail Torreano released the names of 13 individuals to serve on the screening committee to act as a liaison for the Board in the search process.

Comai will chair the committee, Torreano said, and Trustees Brian Fannon, Marilyn French Hubbard and John Hurd also will have positions.

“The rationale I have for selecting each of you is, if you’ll notice, each one of you is from a different cohort,” Torreano said. “We get, I think, differing experiences.”

She explained how trustees are appointed two at a time. Fannon, Hubbard and Hurd represent each selection cycle, she said.

Torreano appointed Trustee Sarah Opperman as an alternate to the committee.

According to Board policy, representatives from the Academic Senate, Student Government Association and Alumni Association will serve on the committee.

Torreano chose Stan Shingles, director of the Student Activities Center for the administrative role, and Geraldine B. Wright as a member of the general public.

Wright served on the screening committee that hired Rao.

“I thought it would benefit the screening committee to have someone with that experience to bring to the table,” she said.

Torreano chose to make three additional appointments – people who she said have roots in the community and the university’s external affairs.

Kathy Wilbur, CMU’s interim president-elect and current vice president of Governmental Affairs and Public Affairs, Tim Brockman, owner of Max and Emily’s Restaurant, and Rick Barz, president of Isabella Bank and Trust, will also serve on the committee.

Comai said the screening committee will work to develop a leadership statement, utilizing the opinions drawn from open forums and meetings with university administrators.

Once established, she said, the statement will go to the search firm and onto various professional publications. Potential candidates may apply up until Oct. 1, Comai said, at which point the firm will begin reviewing applications.

“The search firm will cull through all the applications and present 16 to 20 likely candidates to the screening committee,” she said.

Then, the screening committee will meet with a select few and eventually bring four to six potential candidates before the Board, Comai said.

“I am not at all concerned that we will have an outstanding pool of candidates,” Comai said.

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Cam Enarson was selected to fill the position during a medical school update at the Board of Trustees meeting Thursday. For the last several months, steps to reach agreements for the school’s hospital affiliations and program accreditation have been under the supervision of University President Michael Rao.

However, as his departure to Virginia Commonwealth University approaches, CMU made filling the interim spot a top priority.

“I have actually signed off on this as of now, so I can say that I really look forward to Dean-Elect Enarson’s great leadership,” Rao said. “We’ve made a lot of progress with curriculum and with facility. We know a lot more and will know a lot more with Cam coming.”

From 2003 to 2008, Enarson was a vice president for health sciences and is now a professor of anesthesiology and health policy and ethics at Creighton University. He will begin his position at CMU next month with an annual salary including $308,000 in deferred compensation and up to $70,000 in performance incentives, which is $5,643 more each year than Rao’s salary approved by the Board in December.

Sam Kottamasu, ad hoc medical school committee chairman and Board of Trustees vice chairman, said the appointment was made for the spirit of progress.

“As President Rao leaves the university in late June, the significant momentum to establish the medical school at CMU will carry on,” Kottamasu said. “We started out with affiliation agreements, but now there is also operational agreements that they are working on. The interim dean starting May 1 will speed up the affiliation agreements.”

During the Board’s meeting in December, affiliations were predicted for completion this spring.

“It’s pretty close, but I cannot put an exact date on it,” Kottamasu said about the completion. “There is nothing for me to share because nothing is public yet.”

The hospitals currently in discussion are St. Mary’s of Michigan and Covenant Medical Center in Saginaw. CMU could come to an agreement under the education affiliation of Synergy Medical Education Alliance, an organization that offers community-based, fully accredited residency training programs.

A medical campus could also come to reality on vacant land between the two hospitals. Michigan Healthpark Development LLC, purchased land on the west bank of the Saginaw River for a medical complex, said Michigan Healthpark Director Jeff Schell.

The offer would allow CMU to pay the cost of construction to Michigan Healthpark or to purchase the vacant land at no cost. Schell said there has been no response from CMU and no details have been released.

“We’re just kind of asking if there’s anything we can do for CMU,” he said.

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Central Michigan University apartments will increase their rates by 2 percent.

An anticipated decline in on-campus residents is cited as a reason behind the increase.

The number of CMU students living in the residence halls is expected to go down from 6,077 at the beginning of the fall 2009 semester to an estimated 5,900 next year.

CMU plans to reorganize the residence halls’ cost structure next year in order to reduce spending.

“We’re going to apply some cost-cutting measures,” said David Burdette, vice president of finance and administrative services.

Among Michigan’s 13 public college and universities, CMU has the fourth highest room and board rates.

University President Michael Rao said the university has ensured that the residence halls are well-run and that it must continue to do so – even if rates must increase.

“There are a lot of people who want to ensure that our students are successful in our residence halls, and we have made an effort to continue increasing our staff to accommodate students on campus,” he said.

Trustee Stephanie Comai said students and their families face unprecedented pressures at the beginning of college, and it is imperative that CMU provide them with high-quality living space. Newer, premium rooms tend to be in high demand, while some rooms in older residence halls are left unfilled.

“We have some premium rooms, and those are charged premium rates, but we do have a range of choices for students,” she said. “If the student would prefer a premium room but is not able to afford it, we still have a place for them and we can assure it is high quality.”

For students admitted in fall 2008, room and board rates for a standard residence hall with 14 meals per week are $3,618 per semester. For premium halls, it is $4,161. For students admitted last fall, the rates are $3.834 and $4,409, respectively. The 3 percent increase will bring those rates up to $3,949 and $4,541.

In addition, tuition will increase for Prof Ed classes.

The cost of taking off-campus undergraduate classes will increase from $325 to $338 per credit hour. Graduate tuition rates will increase from $425 to $446. Merodie Hancock, vice president of Prof Ed, said CMU off-campus completion rates are high, and the rates are still comparable.

“(The University of) Phoenix is out there as everybody’s competition,” she said. “They have much higher tuition than we do.”

Other universities with higher off-campus tuition rates than CMU include Wayne State University and Davenport University. However, CMU still has higher rates than some institutions, such as Baker College, Hancock said.

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12:36 p.m.: University President Michael Rao begins his report by recognizing Board Chairman Jeff Caponigro and trustee John Kulhavi, both in their last trustee meeting.

12:45 p.m.: Rao talks about the “tenuous economic situation” in the state. He said there is continued talk about a possible $900 million shortfall in the state over the next fiscal year, and that the university obviously is advocating no cut in higher education. He would like to invest more into “places that have issues,” such as Anspach Hall.

1:02 p.m.: Provost Julia Wallace provided trustees with a list of prospective December 2008 graduates. She said there are a total 1,464 undergraduates and 1,170 graduate students on the list.

1:10 p.m.: Trustees approve a motion to negotiate a contract for the demolition of Washington Apartments O, P, Q and R, not to exceed $1.8 million. The parking lot which will take its place is designed to reduce the storm water in the area. Residents already are notified and will vacate the buildings by May 15.

1:14 p.m.: Trustees approve a motion to fund five additional deferred maintenance projects for a total of $1.2 million. The projects include domestic water line replacement in Anspach Hall, domestic water line replacement in Foust Hall, roofs for Kewadin Apartments (5 buildings) and Northwest Apartments (6 buildings), among others.

1:16 p.m.: Trustees approve a motion to contract for the renovation of the existing space occupied by ProfEd. The renovation includes new carpet, painting, and the associated costs to reorganize approximately 100 office cubicles. Costs are not to exceed $350,000.

1:20 p.m.: Facilities committee chair Gail Torreano said SHW Group showed Vice President of Finances David Burdette some concepts and ideas on the Bovee University Center renovation and the events center, as well as a possible addition to the Health Professions Building. Burdette said he is very pleased with the designs.

1:40 p.m.: Trustees approve a motion for the president to negotiate and execute a lease agreement for office space in the Lansing area for a period not to exceed five years. The space will be used for the Michigan Mathematics Program Improvement and the Michigan’s Integrated Technology Supports projects funded by the state Department of Education. The cost is approximately $15,000 for the first year and up to $16,500 by year five.

1:43 p.m.: Trustees approve a motion to adopt the Political Candidacy of Employees Policy dated Dec. 4, 2008. The policy replaces the 1955-56 policy currently in force. Burdette said the new policy clarifies the language inside the 1955-56 policy and that he looked at other university policies. The approved policy encourages those CMU staff members who do wish to run for office as long as they address it with CMU first in mind. Burdette said that is to make sure the candidates understand their responsibilities as CMU employees while running for office.

1:48 p.m.: Rao said CMU has received the “first two major gifts” for the medical school – he said both he and trustee Sam Kottamasu have contributed $100,000 to the creation of the medical school. Board Chair Jeff Caponigro thanks Kottamasu for his dedication to the initiative.

1:57 p.m.: Trustees approve Gail Torreano as the next board chairperson to succeed current chair Jeff Caponigro at the start of next year. Also approved are two vice chairs – Stephanie Comai and Sam Kottamasu. Mary Jane Flanagan was approved as the secretary while David Burdette was approved as treasurer. Caponigro reminds that he and John Kulhavi will remain on the board until Gov. Jennifer Granholm appoints two new CMU trustees.

2:08 p.m.: Trustees approve the consent agenda, which includes the ratification of budget requests submitted for 2009-2010, Corporation for Public Broadcasting funding and Michigan Department of Education awards, among other items.

2:17 p.m.: Catherine Riordan makes her presentation on the CMU 2010 Vision Plan. She pointed out improvements to the school’s Honors Program, with an increased number of Honors courses and a full four-year program. Other projects include a partnership with Flint schools to enhance recruiting and the promotion of student-faculty research.

2:28 p.m.: Trustees approve a motion to authorize the president to execute an amendment to the subcontract and other agreements necessary to complete a project with the CMU Research Corporation for research and development efforts for the treatment of perchlorate contamination in water for an amount not to exceed $352,925.

2:32 p.m.: Trustees establish University President Michael Rao’s salary to an 8-year agreement through 2016 and an increase of 3 percent to $302,357 from $295,550, effective Jan. 1. There also are three possible one-year extensions up to the year 2019. Kulhavi said the board is extremely pleased with Rao’s efforts and it will do the best it can to retain him. He said the deal makes Rao the 7th highest-paid president out of 12 in the Mid-American Conference.

2:37 p.m.: Meeting adjourned.

Check cm-life.com throughout the day Thursday and in Friday’s CM Life for more coverage from today’s meeting.

Posted at 4:33 p.m. Thursday

The Board of Trustees voted unanimously to increase President Michael Rao’s salary by 3 percent, from $293,550 to $302,357, at today’s meeting.

His contract, effective Jan. 1, was extended through 2016. Rao was also offered the option of three 1-year extensions, which could keep him in office through 2019.

Rao’s retention bonuses will increase annually by 10 percent, starting in 2009 at $100,000.

“It is in the best interest of the university to keep president Rao,” said Vice Chair John Kulhavi.

Check Friday’s CM Life for more coverage on this story.