Missouri State University

July 22, 2010

MINUTES OF THE EXECUTIVE COMMITTEE

OF THE BOARD OF GOVERNORS

MISSOURI STATE UNIVERSITY

July 23, 2010

  1.                  Roll Call:

Present -    Mr. Michael Duggan, Governor (by conference call)

                  Mr. Gordon Elliott, Governor, (by conference call)

Mr. Brian Hammons, Chair of the Board

Ms. Phyllis Washington, Vice-Chair of the Board (by conference call)

 

Also

Present -    Ms. Elizabeth Bradbury, Governor (by conference call)

                  Mr. Brandt Shields, Student Governor (by conference call)

Dr. Michael Nietzel, President

Dr. James E. Cofer, Sr., President-Designate

Mr. Paul Kincaid, Chief of Staff & Acting Secretary

Mr. Clif Smart, General Counsel

Dr. Earle Doman, Vice President for Student Affairs

Mr. Ken McClure, Vice President for Administrative & Information Services

Ms. Nila Hayes, Chief Financial Officer

Mr. Steve Foucart, Controller

Mr. Rick Wright, Gilmore & Bell, PC

Ms. Julie Portman, Edward Jones

Ms. Kate DeProsperis, Edward Jones

  2.                  Presiding — Mr. Brian Hammons, Chair of the Board of Governors, called the Executive Committee conference-call meeting to order at 1:30 p.m. in Room 203 of Carrington Hall on the campus of Missouri State University in Springfield, Missouri.

  3.                  Financial --- President Nietzel provided some introductory remarks regarding the two parts of the bond package.  

He indicated that the all-in true interest cost for the MoHEFA educational bonds is 3.99 percent.  When compared to the 5.00 percent interest rate originally estimated, this means a total savings of $3.7 million in payments over the term of the bonds, or approximately $150,000 less per year in bond payments  than originally estimated.

For the auxiliary bonds, the all-in true interest cost is 3.61 percent.  When compared to the 5.00 percent originally estimated, this means a total savings of $9.4 million over the term of the bonds, or approximately $400,000 less per year in bond payments than originally estimated.

The refunding included in the bond package will save the University about $800,000.

Dr. Nietzel then asked Ms. Nila Hayes, Chief Financial Officer, and the bond team to provide additional details on the package.  Ms. Hayes, along with Ms. Julie Portman from Edward Jones and Mr. Rick Wright from Gilmore & Bell, summarized the elements of the bond proposal.

Ms. Hayes then formally presented the following (Item II.A.) for the Committee’s consideration:

RESOLUTION AUTHORIZING AND DIRECTING THE ISSUANCE OF $46,370,000 PRINCIPAL AMOUNT OF AUXILIARY ENTERPRISE SYSTEM REVENUE BONDS, SERIES 2010, TO PROVIDE FUNDS TO FINANCE ADDITIONS, RENOVATIONS, EXTENSIONS AND IMPROVEMENTS TO THE FACILITIES OF THE AUXILIARY ENTERPRISE SYSTEM OF THE UNIVERSITY AND TO PROVIDE FUNDS TO REFUND CERTAIN OUTSTANDING REVENUE BONDS OF THE UNIVERSITY RELATING TO THE AUXILIARY ENTERPRISE SYSTEM OF THE UNIVERSITY; PRESCRIBING THE FORM AND DETAILS OF SAID BONDS AND THE COVENANTS AND AGREEMENTS MADE BY THE UNIVERSITY TO PROVIDE FOR THE PAYMENT AND SECURITY THEREOF; AND PRESCRIBING OTHER MATTERS RELATING THERETO.

Mr. Duggan moved for the approval of the resolution, receiving the second of Ms. Washington.

Motion passed 3-0, with Mr. Duggan, Mr. Elliott and Ms. Washington voting.

Ms. Hayes next presented the following item (Item II.B.) for the Committee’s consideration:

RESOLUTION AUTHORIZING THE BORROWING BY MISSOURI STATE UNIVERSITY OF THE PROCEEDS OF AN ISSUE OF EDUCATIONAL FACILITIES REVENUE BONDS (MISSOURI STATE UNIVERSITY), SERIES 2010, IN AN AGGREGRATE PRINCIPAL AMOUNT OF $10,220,000 OF THE HEALTH AND EDUCATIONAL FACILITIES AUTHORITY OF THE STATE OF MISSOURI, TO FINANCE THE COSTS OF CERTAIN EDUCATIONAL FACILITIES OF THE UNIVERSITY; AND AUTHORIZING AND APPROVING CERTAIN DOCUMENTS AND ACTIONS IN CONNECTION WITH SUCH BORROWING.

Ms. Washington moved for the approval of the resolution, receiving the second of Mr. Duggan.

Motion passed 3-0, with Mr. Duggan, Mr. Elliott and Ms. Washington voting.

Mr. Duggan had to leave the meeting at this time.

  4.                  Purchases/Contracts – President Nietzel introduced and summarized the revised contract with St. John’s and the resulting savings.  He then asked Mr. Ken McClure, Vice President for Administrative and Information Services, to present resolution (Item III.A.) approving the contract renewal for Self-Insured PPO Network Access with St. John’s for the period July 1, 2010 through December 31, 2012.  In his presentation, Mr. McClure described the negotiations and how the savings were achieved in the new contract.

Mr. Elliott moved for the approval of the resolution, receiving the second of Ms. Washington.

Motion passed 3-0, with Mr. Elliott, Mr. Hammons and Ms. Washington voting.

5.         Adjournment — Mr. Hammons adjourned the conference call meeting at 1:55 p.m. on the motion of Ms. Washington, the second of Mr. Elliott, and the unanimous vote of the committee.

Paul Kincaid

Acting Secretary of the Board