Missouri State University

May 15, 2013

MINUTES OF THE EXECUTIVE COMMITTEE

OF THE BOARD OF GOVERNORS

MISSOURI STATE UNIVERSITY

May 15, 2013

 1.                  Roll Call:

Present -    Mr. Peter Hofherr, Governor (by conference call)

                  Mr. Steve Hoven, Governor

Mr. Orvin Kimbrough, Chair of the Board

Ms. Beverly Miller, Vice Chair of the Board (by conference call)

Also

Present -    Clif Smart, President

Ken McClure, Vice President for Administrative & Information Services

                  Steve Foucart, Chief Financial Officer

Jim Baker, Vice President for Research and Economic Development and International Programs

Tina McManus, Controller

Penni Groves, General Counsel

Paul Kincaid, Chief of Staff

Randy Blackwood, Executive Director, Athletics & Entertainment Facilities

Matt Morris, Associate Vice President for Administrative & Information Services

Jeff Morrissey, Chief Information Officer

Don Simpson, Interim Vice President for Student Affairs

Brad Kielhofner, Associate Director, Planning, Design, and Construction

John McAlear, Secretary of the Board

 2.                  Presiding – Mr. Orvin Kimbrough, Chair of the Board of Governors, called the Executive Committee conference-call meeting to order at 4:00 p.m. in Room 203 of Carrington Hall on the campus of Missouri State University in Springfield, Missouri.

 3.                  Approval of Minutes – Mr. Kimbrough mentioned that the first item of business was the approval of the minutes for the open meeting of April 17, 2013.  Mr. Hoven so moved, receiving the second of Mr. Hofherr.

Motion passed 3-0.

 4.                  Student Affairs – Mr. Don Simpson, Interim Vice President for Student Affairs, presented a resolution (Item III.A.) for the approval of Wyrick Fund expenditures passed by student vote in April 2013 to be implemented in FY2014.  The two projects approved were $55,000 for a Sand Volleyball Court on the Allison Recreational Field and $62,785 for a Bear Line Shuttle stop.  Motion to approve was made by Mr. Hofherr and seconded by Ms. Miller.

Motion passed 3-0.

 5.                  Procurement and Financial – Mr. Steve Foucart, Chief Financial Officer, then presented a resolution summarizing Procurement Services Office activities from April 13, 2013, through May 10, 2013 (Item IV.A.). The items included in this report are:

1)      Residence Life utilizes two services for cleaning residence halls at the end of the school year.  With the addition of The Monroe, quotes were requested from both vendors and ServiceMaster was determined to be the lowest and best offer for an additional $11,122.

2)      The University has 72 buildings with fire detection and suppression systems.  This request is to award SimplexGrinnell with 33 buildings that contain SimplexGrinnell fire control boards for $20,700.  Bids will be sought from more than one source for the remaining buildings.

3)      The University received four bids for generator maintenance and emergency service back up for the Darr Agricultural Center, and the Joplin and Fordland transmitter-tower locations with the recommendation to award to Central Power Systems for $126,000.

4)      Approval is requested to purchase 260 new all-in-one Dell computers under our cooperative contract for replacements to the University’s open-access computer labs in the amount of $260,000.

5)      Approval is requested to exercise the third-year renewal with KONE Elevator for $487,762 for the preventive maintenance of our 99 elevators covered under this contract.

Moved by Mr. Hoven. Seconded by Mr. Hofherr.    

Motion passed 3-0.

Mr. Foucart next presented the following resolutions for the Committee’s consideration:

A resolution (Item IV.B.) for the authorization to execute the energy cost savings capital lease and related lease obligations with Banc of America.  The University will receive $675,000 under the renegotiated existing lease for an expansion of our chilled water loop system to include the Juanita K. Hammons Hall for the Performing Arts.  Based upon the renegotiated lease, the University will save approximately $495,000.  Bond Counsel, Gilmore & Bell, has worked with the University and Banc of America to finalize the renegotiated lease, which will close on May 21, 2013.  Last week, it was discovered that the project was under budget so the expansion will also include the Forsythe Athletic Center.

A resolution (Item IV.C.) to establish a Tax and Securities Compliance Procedure to continuously monitor federal income requirements related to tax-exempt bonds and obligations issued on behalf of the University.  This monitoring process has been performed for about one year and will be continued, along with annual disclosure requirements and documentation of final uses of bond proceeds.  Key review items include: the documentation of actual expenditures for tax-exempt bond issues; monitoring any third-party use of tax-exempt financed buildings; and, issuing yearly bond disclosure reports.  The University works closely with Gilmore & Bell, who prepared this monitoring procedure.

Moved and seconded, respectively, by Mr. Hofherr and Ms. Miller.  It was explained that, due to the growth in tax-exempt financing, the Internal Revenue Service has been looking at more of these projects to ensure that expenditures are, indeed, for legitimate tax-exempt purposes.  Gilmore & Bell recommended that the University implement this Tax and Securities Compliance Procedure, which will be a new governing policy.  President Smart commented that because of Mr. Foucart’s expertise in refinancing, the University is basically paying about $180,000 for a $675,000 project.

Motion passed 3-0.

 6.                  Facilities and Equipment --- Mr. Ken McClure, Vice President for Administrative & Information Services, next presented the following resolutions for the Committee’s consideration:

 

Engineering services in conjunction with the 2013 energy audit for the Springfield campus (Item V.A.); Burns & Roe Services Corporation, for a fixed fee of $50,000 plus reimbursable expenses.  Additional services of up to $15,000 as described in this agreement may be authorized and approved as necessary.

Construction of the Jim D. Morris Basketball Complex at JQH Arena (Item V.B.); DeWitt and Associates, Inc., low bid of $2,853,570 for the base bid plus alternates 1, 2, and 6; total project budget set at $3,700,000.

The basin recoating for the John Q. Hammons Fountains (Item V.C.); MTS Contracting, Inc., low bid of $83,551 for the base bid plus alternate 1; total project budget set at $120,000.

Roof restoration and replacement of several sections of the roof at the Greenwood Laboratory School (Item V.D.); Tremco Incorporated (WTI), for $281,479.85; total project budget set at $315,000.

Ratification of Lease Agreement at Robert W. Plaster Center for Free Enterprise and Business Development with ESM Technologies, LLC (Item V.E.)

Approval authority for signing lease agreements at Robert W. Plaster Center for Free Enterprise and Business Development (Item V.F). 

Approval to increase the project budget for the phase II renovation at Robert W. Plaster Center for Free Enterprise and Business Development (Item V.G.).  This $154,906.50 increase brings the total project budget to a new total of $8,638,069.50.

Mr. Kimbrough commented that the committee will take these resolutions individually.  He asked if there was a motion to approve Item V.A. for the engineering services in conjunction with the 2013 energy audit.  Moved and seconded, respectively, by Ms. Miller and Mr. Hoven.

Motion passed 3-0.

Mr. Kimbrough next asked if there was a motion to approve Item V.B. for the construction of the Jim D. Morris Basketball Complex at JQH Arena.  Mr. Hofherr so moved with Mr. Hoven providing the second.  President Smart reported that the funding source for this $3.7 million project budget is private gifts.  However, since these gifts are pledges to be received over a period of years, he will front this project with his President’s Enhancement Fund and he will be reimbursed as the pledges are received.  Mr. Kimbrough cautioned to be sure that the Enhancement Fund is fully reimbursed.

Motion passed 3-0.

Mr. Kimbrough then asked if there was a motion to approve Item V.C. for the basin recoating of the John Q. Hammons Fountains.  Mr. Hofherr so moved, receiving the second of Mr. Hoven. 

Motion passed 3-0.

Mr. Kimbrough next asked if there was a motion to approve Item V.D. for the Greenwood Laboratory School roof project.  Moved and seconded, respectively, by Mr. Hoven and Mr. Hofherr.  It was asked if bids were received on this project.  Mr. McClure explained that RSMo 34.046 allows Missouri State University to participate in contract agreements established by other public entities.  The University is utilizing the Educational and Institutional (E & I) Cooperative Contract with Tremco Incorporated (WTI), which would have been awarded this contract through a bid process.

Motion passed 3-0.

Mr. Kimbrough then asked if there was a motion to approve Items V.E. and V.F. for, respectively, the ratification of the eFactory lease with ESM Technologies, LLC., and the delegation of authority to enter into these types of leases in the future to the President and/or the Vice President for Administrative and Information Services.  So moved by Mr. Hofherr.  Seconded by Ms. Miller.  The standard lease rate for all eFactory tenants is $15 per sq. ft. per annum.  President Smart commented that if we were to offer different terms from those described in this resolution, this delegation of authority is not valid and the contract would need to be presented to the Executive Committee or Board.

Motion passed 3-0.

Mr. Kimbrough asked if there was a motion to approve Item V.G. to increase the project budget for the phase II renovation at Robert W. Plaster Center for Free Enterprise and Business Development.  Moved and seconded, respectively, by Mr. Hoven and Mr. Hofherr.

Motion passed 3-0.

 7.                  New Business – Mr. Kimbrough indicated that after the board’s discussion at their March retreat, it is the Board’s desire to shift into a two-committee structure instead of having three committees.  The two committees are: 1) Programs and Planning; and 2) Finance and Facilities.  Governors Peter Hofherr and Bev Miller will co-chair the Programs and Planning committee with Governors Cathy Smith, Steve Bough, Joe Carmichael, and Paige Jenkins as members.  Governor Steve Hoven will chair the Finance and Facilities committee with Governors Carrie Carroll, Gordon Elliott, and Orvin Kimbrough as members.  Mr. Smart added that with only two committees, the governors can more easily participate in both committee meetings.

 8.                  Adjournment — Mr. Kimbrough adjourned the conference-call meeting at 4:40 p.m. upon the motion of Mr. Hofherr, the second of Mr. Hoven, and the unanimous vote of the committee.

     John W. McAlear

Secretary of the Board