January 21, 2005

MINUTES OF THE BOARD OF GOVERNORS
SOUTHWEST MISSOURI STATE UNIVERSITY
JANUARY 21, 2005

1. Roll Call

Present- Dr. Barbara Burns, President of the Board
Mr. Thomas Carlson, Governor
Mr. William Darr, Governor (by conference call)
Mr. Michael Duggan, Governor
Mr. Michael Franks, Vice President of the Board
Ms. Mary Sheid, Governor
Ms. Phyllis Washington, Governor
Ms. Kelli Wolf, Student Governor

Also
Present- John Keiser, President
Kent Thomas, Chancellor of the West Plains Campus
Greg Onstot, Vice President for University Advancement
Bruno Schmidt, Vice President for Academic Affairs
Don Aripoli, Vice President for Student Affairs
Greg Burris, Vice President for Administration & Finance
Kent Kay, Associate Vice President for Finance
John Black, General Counsel
John W. McAlear, Secretary of the Board

2. Presiding --- The presiding officer for the meeting was Dr. Barbara Burns, President of the Board of Governors. She called the meeting to order at 9:00 a.m. in the Parliamentary Room of the Plaster Student Union on the campus of Southwest Missouri State University in Springfield, Missouri.

3. Minutes --- Dr. Burns noted that the first item of business on the agenda was the approval of the minutes submitted by the Secretary for the open and closed meetings of December 17, 2004. Ms. Sheid moved to approve the minutes as presented. Mr. Franks seconded the motion.

Motion passed 7-0.

4. Report from Presidential Search Committee – Mr. Franks, Chair of the Search Committee, reported that a group of eighteen people started a journey on May 26, 2004, with the goal of recommending three people to be considered by the Board of Governors to be the next President of Southwest Missouri State University. He remarked that the committee first established what the major challenges of the University were. Secondly, the committee established the desired attributes of the next President in order to tackle the perceived challenges. The other seventeen members of the committee were: Tom Carlson, Lynn Cline, Chris Curtis, Virginia Fry, Gloria Galanes, Jim Giglio, Charlotte Hardin, Michael Hignite, Bill Hixon, Don Landon, Phil Nichols, Cynthia Pemberton, Mark Richter, Mary Sheid, Carol Silvey, Tom Strong, and Kelli Wolf.

Mr. Strong, Vice-Chair of the Committee, came forward with several members of the committee to announce the three recommended candidates to the Board of Governors. Mr. Strong stated that the committee's charge was a daunting one – to find a leader who would continue the progress that has been made under Dr. Keiser's administration and to lead us to the next level. He reported that 59 applications from highly qualified individuals were received. Seven applicants were interviewed over a two-day period. Mr. Strong then named the three recommended candidates (in alphabetical order):

Dr. David Belcher, Vice Chancellor and Provost, University of Arkansas-Little Rock

Dr. Michael T. Nietzel, Provost, University of Kentucky

Dr. John D. Sellars, Senior Vice President for Institutional Advancement, Syracuse University

Mr. Franks then thanked Dr. Keiser for building a great university that attracted a very high quality of candidate. Mr. Carlson next stated the committee's job would not have gone as well without the leadership that Mr. Franks provided. Mr. Franks next recognized Jana Estergard, Equal Opportunity Officer, and her staff for the incredible amount of work they did to support the process. He also recognized Sherry Stewart and John McAlear for their support roles in the process.

5. Report from the President --- Dr. John Keiser began his report by briefing the Board on some of their 2005 legislative goals. We have asked for a 6.25% increase in the operating budget but it looks like it might be a level appropriation this year. SMSU supports the general concept of the CBHE's proposal to increase need-based financial aid by $25,000,000. However, their proposal is based on need that is created by the level of tuition at the various institutions, public and private, so by the time you get pass the University of Missouri and the private institutions, there is no aid left. We have not agreed with this concept. As far as the name change, Mr. Duggan represented the University well this week in Jefferson City.

Dr. Keiser next mentioned the Jordan Valley Innovation Center (JVIC) and that there may be as much as $30 million from other sources towards that project. We are now talking about a JVIC Phase 2 and Phase 2A. We hope to have a major gift to announce next month from one of the companies that Dr. Ryan Giedd has been working with. The University will prepare an RFP for occupation of the building and we may already have more interest than we can handle. There was great support for the intellectual property policy adopted by the Board of Governors. Both Dr. Burns and Mr. Franks expressed their views on how important the JVIC project is for the future of the university.

Dr. Keiser next brought up the possible merger with The Forest Institute of Professional Psychology. There have been a number of meetings. Mr. Kent Kay is reviewing their financial records and Mr. John Black has had several conversations with their attorney. A merger document has been prepared and has been discussed.

As far as the move of the Department of Defense and Strategic Studies to the Washington D.C. area – we just received a 60-page lease yesterday. It includes some expenses that we did not anticipate so we will look at this project carefully.

Dr. Keiser next presented a Memorandum of Understanding between Southwest Missouri State University and Watershed Committee of the Ozarks, Inc. for the Board to approve. There is no financial commitment in this Memorandum of Understanding – it provides for facilitating and encouraging joint programs and activities. Moved by Mr. Carlson and seconded by Mr. Duggan.

Motion passed 7-0.

He then asked Dr. Paula Kemp to make a presentation. Dr. Kemp presented a resolution (Awards No. 11-05) conferring an honorary doctorate, Doctor of Letters (Litt.D.) upon Mr. David Harrison at the Commencement Ceremony in May 2005. Moved by Mr. Darr. Seconded by Mr. Franks.

Motion passed 7-0.

6. Educational:

a. Faculty Senate Report --- Dr. Lois Shufeldt, Chairperson for the Faculty Senate, thanked the Search Committee for bringing forth an excellent slate of presidential candidates.

b. Report from Vice President for Academic Affairs --- Dr. Bruno Schmidt, Vice President for Academic Affairs, presented a resolution (Policies & Procedures No. 105-05) approving the Animal Care and Use Policy for Southwest Missouri State University. A number of people have been working on this policy for a number of weeks. This policy is to ensure compliance with federal requirements with respect to animal care and use. We have been receiving grants from the National Institutes of Health (NIH) that imposes additional requirements on us so it is imperative that we have a policy that is consistent with NIH requirements. Mr. Carlson asked if the Board had received any notice that this was coming up today. Dr. Schmidt responded that the Board has not seen this policy before now. Mr. Carlson commented that if this policy has been in process for several weeks the Board should have been provided a draft or some other information that they could study rather than asking to rubber stamp something that they will not have time to study before being asked to approve it. He further indicated that he would vote for the approval of this policy but that the administration needs to do a better job at providing resolutions in advance of the meeting. Motion to approve the resolution was made by Mr. Darr and seconded by Mr. Duggan.

Motion passed 7-0.

7. West Plains Campus:

a. Report from the West Plains Campus --- Mr. Kent Thomas, Chancellor of the West Plains Campus, reported that they have received permission to proceed with the establishment of their respiratory therapy program. He then presented the following resolutions for the Board's consideration:

Approval of the West Plains Campus Building Report dated January 7, 2005 (West Plains Campus Building Report No. 93-05)

Approval to obtain a contract for the sale of real estate (West Plains Land No. 9-05). This is for the sale of property at 120 Langston Street, West Plains, Missouri. The sale of this property, known as Haas-Hoover Hall at a price equal to or exceeding the evaluated price of $25,000 is subject to approval by the State legislature.

Approval of actions concerning non-academic employees of the West Plains Campus (West Plains Personnel No. 229-05).

Moved by Ms. Sheid. Seconded by Mr. Duggan.

Motion passed 7-0.

8. Student Affairs:

a. Report from Student Body President --- Mr. Chris Curtis, President of the Student Body, distributed a resolution opposing the implementation of the plus-minus grading system that was approved by the SGA. Dr. Keiser responded that this new system has only been recommended by the Faculty Senate – it has not been implemented. He added, that at this time, it has not been decided to go this route and if it is ever decided to implement this type of system, it will take several years before it could be implemented. Mr. Curtis next distributed a resolution that awards every student that graduates from SMS a minor in Public Affairs. The SGA will be addressing this resolution next week. Since all curriculum changes must and should go through the faculty senate, this resolution will be forwarded to the faculty senate for approval.

Mr. Curtis next mentioned that SGA is considering banning smoking anywhere on campus.

b. Report from Vice President for Student Affairs--- Dr. Don Aripoli, Vice President for Student Affairs, first commented that all parties concerned should remember that 4,000 students live on this campus and some of these students smoke. If we were to say that there is no smoking on campus, we would be saying to a large number of students that you cannot smoke outside "your house." He then commented that new room & board rates will be presented to the Board next month. He also reported that there are a number of people on campus who are looking at the possibility of a Recreation Wellness Center.

Mr. Carlson asked about the status of charging differential fees based on the course of study – some students will be leaving with a degree that will earn them about $25,000 per year while other students will earn about $70,000 per year. Dr. Aripoli responded that some differential fees policies are not based on the income that a student might be able to make but based on the cost of the program of study. Mr. Kent Kay, Associate Vice President of Finance, responded that a differential fee system will not be in place for next year. They might be able to have this studied by this time next year. Mr. Kay remarked that we are already charging differential fees based on cost by charging more for graduate courses as those courses are more costly.

Dr. Aripoli then presented a resolution (Student Policies No. 82-05) approving the continuation of the Ellis Matching Recruitment Scholarship Program. The total expenditure of $10,000 will be to fund a 50% match of a $2,000 award for ten scholars. Moved by Ms. Sheid with the second being provided by Mr. Duggan.

Motion passed 6-0-1 (Ms. Washington was out of the room).

9. Staff Senate Report --- Dr. Diana Garland, Chairperson of the Staff Senate, reported on the awards presented at the Annual Service Awards luncheon and breakfast. Jean Thomas and Stephanie Grevillius received awards for Excellence in Community Service. There were six employees who received a new award – Excellence in University Service. The recipients were Sara Clark, Debbie Donnellan, Earle Doman, Marty Marty, Edie Sartin and herself.

10. Finance:

a. Development Report --- Mr. Greg Onstot, Vice President for University Advancement, presented the Development Report for the six months ending December 31, 2004. He summarized that total gifts for this point in the year are down about 1,000 gifts due to not having an OPT fall auction. We are down about $500,000 in gift dollars. Our total capital campaign amount is now at about $44,797,000.

b. Financial Report --- Mr. Kent Kay, Associate Vice President for Finance, presented the financial statements for the first six months of the fiscal year. The new style of financial statements incorporates accrual based accounting as opposed to cash based accounting.

Mr. Kay then presented a resolution for the Board to review over the next month regarding the reimbursement of expenditures for the Darr Agricultural Center Project, the Jordan Valley Innovation Center Project, and the Forest Psychology Project from proceeds of tax-exempt bonds. He explained that the Internal Revenue Service requires a notice of a governing body's intent to issue bonds that may reimburse previously incurred expenditures. This resolution will be presented for Board approval at the February meeting.

c. Purchases & Contracts --- Mr. Kay presented the following resolution for the Board's consideration:

Purchases exceeding $100,000 from December 16, 2004 through January 7, 2005 (Purchasing Activity Report No. 257-05).

Moved by Ms. Sheid and seconded by Mr. Franks.

Motion passed 7-0.

11. Facilities and Equipment --- Mr. Greg Burris, Vice President for Administrative Services, next presented the following resolutions for the Board's consideration:

Approving the Activity Report for the month of December 2004 (Activity Report No. 145-05).

Modifications to room 116, Kemper Hall (Bids & Quotations No. 1141-05); Kenmar Construction, Inc., low bid $124,791 for the base bid; total project budget set at $220,000.

Professional services in conjunction with the renovation of the Jordan Valley Innovation Center (JVIC) (Architects & Engineers No. 606-05); Ross & Baruzzini, Inc., for a lump sum fee of $801,000 plus reimbursable expenses. Additional services of up to $250,000 as described in this agreement may be authorized and approved as necessary.

Professional services in conjunction with the William H. Darr Agricultural Center Phase II Improvements (Architects & Engineers No. 607-05); The Clark Enersen Partners for $198,000 plus reimbursable expenses. Additional services of up to $20,000 as described in this agreement may be authorized and approved as necessary.

Approval to increase the project budget for the construction materials testing services in conjunction with the tunnel repairs and improvements (Bids & Quotations No. 1142-05). This $13,000 budget increase will bring the new approved project budget to $21,100.

Moved by Mr. Franks and seconded by Mr. Duggan.

Motion passed 7-0.

12. Human Resources --- Mr. Burris then presented the following resolutions for the Board's consideration:

Actions concerning academic employees (Human Resources No. 1157-05).

Actions concerning non-academic employees (Human Resources No. 1158-05). The action of hiring John F. Smarker should be removed from the resolution.

Approval of Revised Overview of FY05 Salaries & Benefits for Athletics Administrators & Coaches (Human Resources No. 1159-05).

Moved by Mr. Franks. Seconded by Mr. Duggan.

Motion passed 7-0.

Mr. Burris next distributed the financial results of the University's medical and dental plans for calendar year 2004. Our claims experience increased 9.2%. Our insurance reserve is $1.186 million – about 35 days of expenditures. The goal is to have a reserve of somewhere between 60 and 90 days. The fund lost $311,010 for the year.

13. Closed Meeting --- It was determined that the Board of Governors needed to meet in a closed session to consider items of business provided in the Revised Statutes of Missouri. Dr. Burns asked if a resolution authorizing a closed meeting of the Board was prepared. Thereupon, the following resolution was presented for consideration:

BE IT RESOLVED by the Board of Governors for the Southwest Missouri State University that a closed meeting, with closed records and closed vote, be held immediately following this January 21, 2005 meeting of the Board of Governors to consider items pursuant to:

A. R.S.Mo. 610.021(1). "Legal actions, causes of action, or litigation involving a public governmental body…"

B. B. R.S.Mo. 610.021(2). "Leasing, purchase or sale of real
estate by a public governmental body…"

C. R.S.Mo. 610.021(3). "Hiring, firing, disciplining or promoting an employee of a public governmental body."

D. R.S.Mo. 610-021(6). "Scholastic probation, expulsion, or graduation of identifiable individuals…"

E. R.S.Mo. 610.021(9). "Preparation, including any discussions or work product, on behalf of a public governmental body or its representatives for negotiations with employee groups;"

F. R.S.Mo. 610.021(11) and (12). "Specifications for competitive bidding…," and "Sealed bids and related documents…,"

G. R.S.Mo. 610.021(13). "Individually identifiable personnel records, performance ratings, or records pertaining to employees or applicants for employment,…"

H. R.S.Mo. 610.021(14). "Records which are protected from disclosure by law;"

I. R.S.Mo. 610.021(17). "Confidential or privileged communications between a public governmental body and its auditor,…"

Such closed meeting shall then be recessed and be reconvened for the purpose of considering matters pursuant to R.S. Mo. 610.021 (1), (3), and (13) on Monday, February 7, 2005, at 5:15 p.m. in room 308 in the Plaster Student Union; and following that meeting on that date shall be recessed and reconvened for the purpose of considering matters pursuant to R.S. Mo. 610.021 (1), (3), and (13) on Thursday, February 10, 2005 at 5:15 p.m. in room 308 in the Plaster Student Union; and following that meeting on that date shall be recessed and reconvened for the purpose of considering matters pursuant to R.S. Mo 610.021 (1), (3), and (13) on Monday, February 14, 2005 at 5:15 p.m. in room 308 in the Plaster Student Union.

Ms. Washington moved the approval of the resolution and Mr.
Carlson seconded the motion.

A roll call vote on the resolution was as follows: those voting in favor – Governors Burns, Carlson, Darr, Duggan, and Washington; those voting against – none; those out of the room – Governors Franks and Sheid.

Board President Burns declared the motion was passed 5-0-2.

14. Date of Next Meeting --- The date of the next regularly scheduled meeting was set for February 18, 2005.

15. Adjournment--- Dr. Burns adjourned the meeting at 11:15 a.m. on the motion of Ms. Washington, the second of Mr. Duggan, and the unanimous vote of the Board.