March 10, 2006

MINUTES OF THE BOARD OF GOVERNORS
MISSOURI STATE UNIVERSITY
MARCH 10, 2006

1. Roll Call
Present- Mr. Michael Duggan, Governor
Mr. Michael Franks, President of the Board
Mr. Brian Hammons, Governor
Ms. Mary Sheid, Vice President of the Board
Mr. Ryan Sivill, Student Governor
Ms. Phyllis Washington, Governor
Mr. John Winston, Governor

Also
Present- Michael Nietzel, President
Kent Thomas, Chancellor of the West Plains Campus
Greg Burris, Vice President for Administrative and Information Services
Greg Onstot, Vice President for University Advancement
Frank Einhellig, Acting Provost
Jim Baker, Vice President for Research & Economic Development
Don Aripoli, Vice President for Student Affairs
Kent Kay, Chief Financial Officer
John Black, General Counsel
John McAlear, Secretary of the Board

2. Presiding --- The presiding officer for the meeting was Mr. Michael Franks, President of the Board of Governors. He called the meeting to order at 9:00 a.m. in the Magnolia Room of the West Plains Civic Center in West Plains, Missouri.

Mr. Franks began the meeting by welcoming the newest member of the Board of Governors, Mr. Brian Hammons of Stockton, Missouri.

3. Minutes --- Mr. Franks 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 held on February 10, 2006. Ms. Sheid moved to approve the minutes as presented. Mr. Duggan seconded the motion.

Motion passed 5-0-1 (Mr. Hammons abstaining).

4. Report from the President --- Dr. Michael Nietzel began his report by reading a special resolution commending Ms. Mary Sheid for her outstanding leadership and service to the entire Missouri State University System as a member of the Board of Governors. The resolution was moved by Mr. Duggan and seconded by Ms. Washington.

Motion passed 5-0-1 (Ms. Sheid abstaining).

Dr. Nietzel next mentioned that later in today's agenda, we will be presenting the administration's recommendation for tuition and fees for next year. He commented that this is a significant proposal in that the increase is a modest 5.5% and the new CAP-IT options are included. He next reported that a planning committee has been appointed on the new JQH Arena chaired by Mr. Greg Onstot. Four subcommittees have been appointed: 1) Design – chaired by Mr. Greg Burris; 2) Finance and Legal – chaired by Mr. Kent Kay; 3) Development and Advancement – chaired by Mr. Brent Dunn; and 4) Public Relations – chaired by Mr. Paul Kincaid. He added that the planning will be performed publicly so the public and institution have confidence that we are looking at all the issues that need to be considered. If the committee decides that this is not a feasible project that can be accomplished at a cost of $60 million – that can be an acceptable answer as well. Dr. Nietzel then reported on the Faculty Handbook revision process going on at the present time. Two items that he has communicated to the Executive Committee of the Faculty Senate that he understands the Board believes to be extremely important to be accomplished in the revision of the handbook (and he concurs) are: 1) the current arbitration procedures need to be deleted; and 2) the need to move to performance-based compensation. Mr. Franks indicated that it is very clear to the Board, that after their one recent experience with arbitration, how inappropriate it is to use arbitration as a solution. He added that he even worries whether it is a legal alternative given that state law makes it clear that personnel decisions reside solely with the Board. Mr. Duggan added that he has been emphatic that performance-based compensation is the right direction to take for the University. This creates an environment where the University promotes people on the standpoint of productivity, creativity, energy, and enthusiasm. Dr. Nietzel then briefed the Board on the internal budget process that is in place. The operating budget is based on a 2% state-appropriation increase and assumes a 3% salary increase pool. New decision package items will be funded out of the 1% reallocation, some increases from our Continuing Education program, and some other cost savings. He then reported that all four provost candidates have visited on campus and that we are making progress on this search.

Dr. Nietzel next presented a resolution (Board Policies No. 43-06) adopting the Board's meeting schedule for calendar year 2007. Motion made by Ms. Sheid with the second provided by Ms. Washington.

Motion passed 6-0.

He then presented a resolution (Administration No. 7-06) approving recently recommended reorganizations regarding the Agriculture Department, Mountain Grove Campus, International Programs, University College, Trio Student Support Services, and Public Affairs. These changes will result in a net, recurring savings of approximately $250,000. Mr. Sivill commented that as an honor student, he would request that the name remain "Honors College" as opposed to "Honors Program" as a matter of prestige for our students. Dr. Nietzel commented that he is open to this and it will be studied. They would bring this back to the Board for any necessary clean up. Ms. Washington moved the approval of this reorganization resolution, receiving the second of Mr. Duggan.

Motion passed 6-0.

5. Educational:
a. Faculty Senate Report --- Dr. Art Spisak, Chairperson of the Faculty Senate, reported that the Faculty Senate has approved a University SGA Teaching Evaluation Instrument that the students have been requesting to assist them in their course registrations. He also thanked Dr. Nietzel and the Board for their feedback on the Faculty Handbook revision process – they welcome this type of input.

b. Report from the Acting Provost --- Dr. Frank Einhellig, Acting Provost, first reported that Dr. Cynthia Pemberton, Dean of the College of Health and Human Services, has been selected as an ACE (American Council of Education) Fellow – one of thirty eight selected nationwide. She will be gone for one year while serving as an ACE Fellow. He also reported that Dr. Adele Newson-Horst has been selected as the Dean of the College of Arts & Letters and, if approved by the Board later today, will begin her employment on July 1, 2006. He then presented the following resolutions for the Board's consideration:

The establishment of the Bachelor of Science in Exercise and Movement Science program (Curriculum No. 285-06).

The establishment of the Master of Science in Criminology program (Curriculum No. 286-06).

The approval of the academic calendar for 2007-2008 (Curriculum No. 287-06).

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

Motion passed 6-0.

Dr. Einhellig then presented a resolution (Curriculum No. 288-06) approving the establishment of the Center for Grapevine Biotechnology in the Department of Agriculture. Moved by Ms. Sheid. Seconded by Mr. Winston.

Motion passed 6-0.

Dr. Lorene Stone, Dean of the College of Humanities and Public Affairs, next highlighted the College, its eight academic departments, and three research centers. The academic departments in the College are Defense and Strategic Studies, Economics, History, Military Science, Philosophy, Political Science, Religious Studies, and Sociology/Anthropology/ Criminology.

6. Report from the Vice President for Research & Economic Development --- Dr. Jim Baker, Vice President for Research & Economic Development, first asked student Mr. Brad Patton to give a short talk on his experiences while studying in China. He explained that he stayed at Qingdao University where students have the opportunity to be immersed in the Chinese cultural experience and learn an overview of history, government and culture from the Chinese perspective. By the year 2020, China is projected to have the largest GDP in the World. Our students need to be educated and encouraged to be ready for the entrance of China as a world power.

Dr. Baker then presented a resolution (Agreement No. 173-06) approving a subcontract between Missouri State University's Center for Applied Science and Engineering (CASE) and Nantero, Inc., a corporate affiliate with CASE and a future tenant in the new Jordan Valley Innovation Center. This subcontract is contingent on the release of funds to Missouri State University from the Office of Naval Research. The total budget for the subcontract will not exceed $2,999,184. Moved by Mr. Duggan. Seconded by Mr. Winston.

Motion passed 6-0.

7. Report from the President (continued) --- Mr. McAlear, Secretary of the Board, pointed out that the reorganization resolution distributed and approved earlier in today's meeting did not include some language that was included in the version mailed to the Board. He read the additional language that needed to be included in what had been passed out earlier in today's meeting and asked that the Board approve the resolution with this language included. Mr. Hammons moved the corrected version of Administration No. 7-06, receiving the second of Mr. Winston.

Motion passed 6-0.

8. Report from the West Plains Campus --- Mr. Kent Thomas, Chancellor of the West Plains Campus, first asked Rita Fugate, Chairperson of the Faculty Senate on the West Plains Campus, to address the Board. Ms. Fugate reported that the campus is the open-admission campus of the Missouri State University System and is serving the needs of the area by providing quality educational opportunities. Mr. Steve Norberg, Chairperson of the Staff Senate, next thanked the Board for their approval of the 1% reallocation for this year and their efforts to improve and sustain employee benefits and compensation, which are difficult issues in tight budget times. Mr. Cody Weeks, President of the West Plains Student Body, next commented that the West Plains Campus administration is good to comply with student recommendations and ideas. He added that it seems like in the last few years, this community has really become a college community and this is such a good thing for the area.

Mr. Thomas next commented that he wanted to highlight the accomplishments of Ms. Kay Garrett from the Communications Department. Ms. Garrett commented that she has spent thirty-eight years on the West Plains Campus. She reported on the many different types of activities that are made available by the West Plains Campus to the community and area students. She also complimented the Board for realizing the importance of an open admissions campus. Mr. Thomas then recognized Dr. Kathleen Morrison as the West Plains citizen of the year by the Chamber of Commerce for the work that she did in bringing the moving Viet Nam Wall to West Plains, the work that she has done with the old time music festival, the work she has done with the national radio theatre, and her work with the Ozarks Heritage Region.

He then presented the following resolutions for the Board's consideration:

Approval of revisions to the Missouri State University-West Plains Faculty Handbook, concerning sections 2.3.1 and 2.3.3 of the recently revised (and Board approved) edition (West Plains Faculty Policies No. 6-06).

Approval of revisions to the Missouri State University-West Plains Faculty Senate By-Laws, concerning section 4, part D, number 2 (West Plains Faculty Policies No. 7-06).

Approval of revisions to the Missouri State University-West Plains Faculty Senate By-Laws, concerning the campus' Assessment Committee (West Plains Faculty Policies No. 8-06).

Moved by Ms. Sheid. Seconded by Ms. Washington.

Motion passed 6-0.

Mr. Thomas then presented the following two resolutions to the Board:

Approval of the purchase of real estate located at 219 Franklin Avenue, West Plains, Missouri for the amount of $87,000 (West Plains Land Purchase No. 22-06).

Approval of the purchase of real estate located at 813 West Main, West Plains, Missouri for the amount of $95,000 (West Plains Land Purchase No. 23-06).

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

Motion passed 6-0.

He next presented the following resolution:

Approval of the low bid of Feller Construction, Inc., in the amount of $200,069 for a contract for multiple maintenance and repair projects on the West Plains and Mountain Grove campuses; total project budget set at $261,069; (West Plains Bids & Quotations No. 29-06).

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

Motion passed 6-0.

Mr. Thomas then presented the following three resolutions:

Approval of the Building Report dated February 22, 2006 for the West Plains Campus (West Plains Campus Building Report No. 99-06).

Approval of actions concerning academic employees of the West Plains Campus (West Plains Personnel No. 247-06).

Approval of actions concerning non-academic employees of the West Plains Campus (West Plains Personnel No. 248-06).

Moved by Ms. Washington. Seconded by Ms. Sheid.

Motion passed 6-0.

He then presented the following resolution:

Approval of an agreement for computer support services in conjunction with providing services on an "On-Call" basis – Sungard SCT, Inc., on an hourly basis with a not-to-exceed period of one year or an amount of $39,600 plus reimbursable expenses (West Plains Purchase Approval No. 33-06).

Moved by Ms. Washington. Seconded by Mr. Duggan.

Motion passed 6-0.

9. Student Affairs:
a. Report from the Student Body President --- Mr. Mike Barnett, President of the Student Body on the Springfield Campus, reported that there was almost unanimous support from the Student Government Association for the administration's proposed fee increase. He also reported that SGA supports Governor Blunt's Lewis & Clark Initiative. His presentation also included reporting that about 100 to 110 students are going to St. Bernard Parish in New Orleans over Spring Break to help with the clean up necessary due to Katrina.

b. Report from the Vice President for Student Affairs--- Dr. Don Aripoli, Vice President for Student Affairs, reported that we are up about 90 students this semester when compared to Spring semester last year. We are estimating an enrollment for next fall just a little lower than last year. He added that in the Fee Resolution to be presented later today we are proposing that the room & board rates for next year be increased about 4%.

He then presented a resolution to former Student Governor, Ms. Kelli Wolf, honoring her for her dedicated service as Student Governor from July 18, 2003 to June 17, 2005. Moved by Mr. Duggan and seconded by Ms. Sheid.

Motion passed 6-0.

He then presented the following resolutions for the Board's consideration:

Approving the Missouri Boys State and Missouri Girls State Leadership Awards – 5 annual awards of $1,000 each to entering freshmen who have participated in each of these two programs (Student Policies No. 86-06).

Amending the Advertising, Solicitation, and Distribution Policy (Policies & Procedures No. 116-06).

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

Motion passed 6-0.

10. Staff Senate --- Dr. Diana Garland, Chairperson of the Staff Senate, named the six staff members who were recognized this year as winners of the Staff Excellence in University Service Awards – Stacey Funderburk, Brad Kielhofner, Fred Marty, Theresa McCoy, Kevin White, and Karen Engler.

11. Financial:
a. Development Report --- Mr. Greg Onstot, Vice President for University Advancement, reported on the Development Report for the first eight months of this fiscal year. We have about the same number of gifts when compared to last year and we are up about $1,855,000 in total gift dollars (this is not including the recent JQH Arena gift).

b. Financial Report --- Mr. Kent Kay, Chief Financial Officer, reported that our student fee revenue for seven months of the fiscal year ($59 million) is right on target. Of the $128 million that we have spent through seven months, $78 million were for salaries and benefits.

Mr. Kay next gave a report on the status that has been made regarding the external auditors' recommendation of the need for written policies & procedures regarding our external grants and contracts. There are eighteen different policies and the draft document is about 100 pages. It is planned that the final document will be completed by July 1, 2006.

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

Purchases exceeding $100,000 from February 10, 2006 through February 24, 2006 (Purchasing Activity Report No. 279-06).

Purchases exceeding $100,000 from February 25, 2006 through March 9, 2006 (Purchasing Activity Report No. 280-06).

Moved by Ms. Washington. Seconded by Mr. Duggan.

Motion passed 6-0.

He then presented a resolution (Purchase Approval No. 102-06) accepting a proposal by Fisk Limousines to provide transit system services on the Springfield campus. Previously, we have outsourced the management of the shuttle services using our buses and Fisk Limousines provided that management. This proposal outsources the management to Fisk Limousines but with them providing the vehicles as our vehicles have aged. A different bidder had a higher overall evaluation; however, our budget does not allow us to select this bidder. Fisk Limousines submitted the lowest bid as far as cost so it is being recommended that we award the bid to them. Moved by Ms. Washington and seconded by Mr. Duggan.

Motion passed 6-0.

Mr. Kay next presented a resolution (Agreement No. 174-06) approving a Center for Applied Science and Engineering Corporate (CASE) Affiliate Agreement with Applied Systems Intelligence, Inc. Moved by Mr. Duggan. Seconded by Ms. Washington.

Motion passed 6-0.

d. Intent Toward the Issuance of Bonds --- Mr. Kay then presented a resolution (Finance No. 988-06) declaring the University's intent to issue auxiliary enterprise system revenue bonds in a principal amount not to exceed $52,000,000 regarding the new basketball arena. This resolution permits us to reimburse ourselves from proceeds of a bond issuance for expenses associated with the new arena that are incurred prior to the issuance of bonds. The resolution also names Gilmore & Bell, PC., as Bond Counsel. Mr. Franks then made it clear that this resolution does not obligate us to the project or an issuance of bonds. Moved by Ms. Sheid. Seconded by Ms. Washington.

Motion passed 6-0.

e. Fee Schedule for 2006-2007 --- Mr. Kay next presented a resolution (Fees No. 126-06) adopting the fee schedule for the 2006-2007 school year, effective August 1, 2006. The standard per-credit-hour rate goes from $164 to $173 – a 5.5% increase. The two-year guaranteed rate is at $176 per credit hour. The West Plains per-credit-hour rate is a $5 increase to $102 per credit hour. Moved by Ms. Washington and seconded by Ms. Sheid.

Motion passed 6-0.

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

Approving the Activity Report for the month of January 2006 (Activity Report No. 158-06).

Parking lot maintenance on the Springfield campus (Bids & Quotations No. 1169-06); Ball Paving, Inc., low bid of $81,890; total project budget established at $158,000.

Bathroom renovations in the east wing of Freudenberger House (Bids & Quotations No. 1170-06); Nabholz Client Services, low bid of $1,033,882 for the base bid; total project budget set at $1,192,882.

Fire detection and suppression system inspection and testing services for the Springfield, West Plains, and Mountain Grove campuses (Architects & Engineers No. 616-06); Simplex-Grinnell for $83,506 plus reimbursable expenses. Additional services of up to $25,000 as described in this agreement may be authorized and approved as necessary.

Approval to increase the project budget for the installation of energy-saving improvements in various locations throughout the Springfield campus (Bids & Quotations No. 1171-06). An increase of $14,000 brings the new total budget to $10,916,115.

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

Motion passed 6-0.

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

Actions concerning academic employees (Human Resources No. 1197-06).

Actions concerning nonacademic employees (Human Resources No. 1198-06).

Additional actions concerning academic employees (Human Resources No. 1199-06).

Moved by Ms. Washington and seconded by Mr. Duggan.

Motion passed 6-0.

14. 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. Mr. Franks 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 Missouri State University that a closed meeting, with closed records and closed vote, be held following this March 10, 2006 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. 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,…"

Ms. Sheid moved the approval of the resolution and Mr. Duggan seconded the motion.

A roll call vote on the resolution was as follows: those voting in favor – Governors Duggan, Franks, Hammons, Sheid, Washington, and Winston; those voting against – none.

Motion passed 6-0.

15. Date of Next Meeting --- The date of the next scheduled meeting was set for May 18, 2006 at 1:00 p.m. in the Traywick Parliamentary Room in the Plaster Student Union on the campus of Missouri State University in Springfield, Missouri.

16. Adjournment--- Mr. Franks adjourned the meeting at 12:35 p.m. on the motion of Ms. Sheid, the second of Mr. Winston, and the unanimous vote of the Board.


John W. McAlear
Secretary