Missouri State University

May 18, 2006

MINUTES OF THE BOARD OF GOVERNORS
MISSOURI STATE UNIVERSITY
MAY 18, 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 (by conference call)
Mr. Ryan Sivill, Student Governor
Ms. Phyllis Washington, Governor (by conference call)
Mr. John Winston, Governor

Also
Present- Michael Nietzel, President
Kent Thomas, Chancellor of the West Plains Campus
Greg Onstot, Vice President for University Advancement
Frank Einhellig, Acting Provost
Greg Burris, Vice President for Administrative and Information Services
Jim Baker, Vice President for Research and 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 1:00 p.m. in the Traywick Parliamentary Room in the Plaster Student Union on the campus of Missouri State University in Springfield, 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 of March 10, March 21, and May 1, 2006. Mr. Winston moved to approve the minutes as presented. Ms. Sheid seconded the motion.

Motion passed 6-0.

4. President's Office --- Dr. Michael Nietzel first presented a resolution (Policies & Procedures No. 117-06) endorsing his recommendations from the University Compensation Committee Report and salary objectives for university employees. He explained that these recommendations include a methodology in moving toward a performance-based compensation system for the university. Mr. Franks commented that the Board has been an advocate for this type of compensation system and this is consistent with the Board's instructions to Dr. Nietzel. Moved by Mr. Duggan and seconded by Ms. Washington.

Motion passed 6-0.

He then presented an offer of commendation to Dr. Diana Garland for her services as Staff Senate Chair in 2005-2006. Moved by Mr. Duggan and seconded by Ms. Sheid.

Motion passed 6-0.

5. Educational:
a. Report from the Acting Provost --- Dr. Frank Einhellig, Acting Provost, presented the following resolutions for the Board's approval:

Approval of new program – Ozarks Studies Graduate Certificate Program (Curriculum No. 289-06).

Approval of new program – Teaching English to Speakers of Other Languages (TESOL) Graduate Certificate Program (Curriculum No. 290-06).

Approval of new program – Religious Studies for the Professions Graduate Certificate Program (Curriculum No. 291-06).

Approval of new program – Bachelor of Science in Emerging Technologies Management (Comprehensive) (Curriculum No. 292-06).

Moved by Mr. Hammons and seconded by Mr. Duggan.

Motion passed 6-0.

Dr. Einhellig next presented a resolution of appreciation to Dr. Arthur Spisak for services as Chair of the Faculty Senate for the past year. Moved by Mr. Winston and seconded by Mr. Hammons.

Motion passed 6-0.

6. Research and Economic Development --- Dr. Jim Baker, Vice President for Research and Economic Development, presented a resolution (Agreement No. 176-06) approving a single site lease agreement assignment for Communications Tower in Taney County, Missouri. Moved by Mr. Duggan. Seconded by Mr. Hammons.

Motion passed 6-0.

7. West Plains Campus
--- Mr. Kent Thomas, Chancellor of the West Plains Campus, presented the following resolutions for the Board's consideration:

Approval of the Activity Report for the month of March 2006 for the West Plains Campus (West Plains Campus Activity Report No. 56-06).

Approval of the Building Report dated April 28, 2006 for the West Plains Campus (West Plains Campus Building Report No. 100-06).

Approval of a fee for Police Officer Standards and Training (POST) Academy courses (West Plains Fees No. 12-06).

Approval of expenditures ($5,000) to implement phase two of the engraved brick walkway (West Plains Campus Purchase Approval No. 34-06).

Approval of expenditures ($30,000) to implement phase two of the lighting corridor project (West Plains Campus Purchase Approval No. 35-06).

Approval of expenditures ($5,000) to implement a campus beautification project (West Plains Campus Purchase Approval No. 36-06).

Approval of expenditures ($8,000) to implement a Putnam Student Center Renovation project (West Plains Campus Purchase Approval No. 37-06).

Approval of actions concerning academic employees of the West Plains Campus (West Plains Personnel No. 249-06).

Approval of actions concerning non-academic employees of the West Plains Campus (West Plains Personnel No. 250-06).

Moved by Mr. Duggan. Seconded by Mr. Hammons.

Motion passed 6-0.

8. Student Affairs --- Dr. Don Aripoli, Vice President for Student Affairs, presented an offer of commendation to Michael B. Barnett for services as Student Body President for academic year 2005-2006. Moved by Mr. Duggan. Seconded by Mr. Hammons.

Motion passed 6-0.

He then presented an offer of commendation to Scott B. Pierson for services as Student Body Vice President for academic year 2005-2006. Motion made by Mr. Winston, receiving the second of Mr. Duggan.

Motion passed 6-0.

Dr. Aripoli then presented the following resolutions for the Board's consideration:

Approval of the amended Advertising, Solicitation, and Distribution Policy (Policies & Procedures No. 118-06).

Approval of former Missouri State University employees to be added to the Wall of Fame (Awards No. 16-06). Those former employees to be honored are Dr. Robert Trewatha, Max A. Wood, Grace B. Palmer, Ralph K. Manley, Dr. Kenneth Brown, and Dr. J.N. Smith.

Approval of additional expenditures to implement Wyrick projects in FY2007 (Purchase Approval No. 103-06). Those projects approved were electronic scoreboards at the Intramural Field ($37,840) and the installation of a GPS Wireless Clock System ($148,500).

Moved by Mr. Hammons. Seconded by Mr. Winston.

Motion passed 6-0.

9. Financial --- Mr. Kent Kay, Chief Financial Officer, presented the following resolutions for the Board's consideration:

Purchases exceeding $100,000 from March 10, 2006 through May 4, 2006 (Purchasing Activity Report No. 281-06).

Purchases exceeding $100,000 from May 4, 2006 through May 17, 2006 (Purchasing Activity Report No. 282-06).

Moved by Ms. Sheid. Seconded by Mr. Hammons.

Motion passed 6-0.

10. 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 February 2006 (Activity Report No. 159-06).

Approving the Activity Report for the month of March 2006 (Activity Report No. 160-06).

Approving the Activity Report for the month of April 2006 (Activity Report No. 161-06).

Moved by Mr. Duggan and seconded by Mr. Winston.

Motion passed 6-0.

Mr. Burris then presented the following resolutions:

The exterior repairs of Carrington Hall (Bids & Quotations No. 1172-06); MTS Contracting, Inc, low bid of $922,000 for the base bid plus alternates 1 & 2; total project budget set at $1,250,000.

FY06 classroom upgrades, Springfield campus (Bids & Quotations No. 1173-06); Bales Construction, low bid of $461,024; total project budget established at $822,400.

The exterior repairs at the Burgess House (Bids & Quotations No. 1174-06); Bales Construction, low bid of $89,694 for the base bid plus alternate 1; total project budget set at $117,000.

The drain line replacement at Garst Dining Center (Bids & Quotations No. 1175-06); Kenmar Construction, only bid received of $96,464; total project budget set at $123,400.

Architectural and engineering services in conjunction with the William H. Darr Agricultural Center Phase III Improvements (Architects & Engineers No. 618-06); The Clark Enersen Partners for $57,100 plus reimbursable expenses. Additional services of up to $5,000 as described in this agreement may be authorized and approved as necessary.

Approval to grant a right-of-way easement to allow for the construction of a bus turnout on National Avenue south of Grand Street (Land No. 89-06).

Approval to increase the project budget for the Elm Street Apartments demolition by $12,000 bringing the new budget total to $110,500 (Bids & Quotations No. 1176-06).

Approval to increase the project budget for the hazardous material removal for the Jordan Valley Innovation Center by $50,000 bringing the new budget total to $190,000 (Bids & Quotations No. 1177-06).

Moved by Mr. Duggan and seconded by Mr. Winston.

Motion passed 6-0.

Mr. Burris then presented a resolution (Bids & Quotations No. 1178-06) approving the construction manager services of JE Dunn in conjunction with the JQH Arena. JE Dunn will perform this work for a fee not to exceed $3,633,444 plus reimbursable expenses. Additional services of up to $100,000 as described in this agreement may be authorized and approved as necessary. Moved Mr. Duggan and seconded by Ms. Washington.

Motion passed 6-0.

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

Actions concerning academic employees (Human Resources No. 1201-06).

Actions concerning nonacademic employees (Human Resources No. 1202-06).

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

Motion passed 6-0.

12. 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 during a recess of this May 18, 2006 meeting of the Board of Governors to consider items of business 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(3). "Hiring, firing, disciplining or promoting an employee of a public governmental body."

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

Mr. Winston moved the approval of the resolution and Mr. Hammons 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.

Mr. Franks declared the resolution passed unanimously.

The open meeting recessed and then reconvened at 2:15 p.m.

13. President's Office (continued) --- Dr. Michael Nietzel first gave a summary of this year's General Assembly, which concluded on May 12, 2006. Senate Bill 650 is a clean-up bill from the name change bill and it clarifies the makeup of the Board of Governors. We received a 2% increase in our state appropriation. There will be an additional $150,000 per year from the Missouri Department of Economic Development for the operation of the Jordan Valley Innovation Center for the next five years. Discussion will continue on the MOHELA sale – Governor Blunt is resolved to see the Lewis & Clark Initiative. He next reported that we received final notification from the Higher Learning Commission that we received a ten-year reaccreditation with no stipulations.

Dr. Nietzel next gave a detailed presentation on the philosophy and process that was followed in the preparation of the 2006-2007 Internal Operating Budget. The Board will be asked to approve the budget at their June meeting. This year's process included: 1) pushing responsibility and accountability to the unit level; 2) salary savings and existing carry-forward funds stay with the unit; 3) carry-forward funds from FY06 will be split between the administration and the unit; and 4) a second one percent reallocation was included in the exercise. Budget hearings were held the last two weeks of January with colleges, divisions, departments, and units to review budget requests previously prepared. From February 16 through March 27, the Administrative Council and the Executive Budget Committee met three times to review the plans and develop a decision package. A budget presentation was then made to the Faculty and Staff Senates on April 11, 2006. The FY07 budget priorities included 1) increased salaries (3%) and benefits for employees; 2) increased funding for Academic Affairs; 3) establishing funds toward university-wide projects – an Enterprise Resource Planning system and a boiler replacement fund; and additional investments in alumni, advancement, and public relations; and 4) efficient and effective stewardship, including $3.5 million in reallocations, a reduction in the transfer to Intercollegiate Athletics, savings from the University College reorganization, and strategic one-time expenditures of $5 million. The university-wide carryforward funds are budgeted to increase by $2 million.

Mr. Franks asked the Governors to review in detail these materials prior to the June meeting and to contact Dr. Nietzel regarding any questions that they might have.

14. Educational (continued):
a. Faculty Senate Report --- Dr. Art Spisak, former Chairperson of the Faculty Senate, reported that Mr. Ed DeLong has been elected the new Secretary of the Faculty Senate and Dr. Tom Kane has been elected the Chair-Elect. He next commented that the faculty was very appreciative of Dr. Nietzel for making a similar budget presentation (to what the Board just heard) to a joint meeting of the faculty and staff senates along with student government leaders. He commented that he has been glad to work with such a dedicated Board over the past year.

Dr. Mark Richter, current Chair of the Faculty Senate, next gave his first report to the Board. He remarked that as the faculty representative to both the Board and the administration, he must always remain sensitive to the concerns of the faculty. He commented that he hopes to continue in the leadership style of Dr. Spisak who did a phenomenal job this past year. Dr. Richter added that he hopes we can continue to highlight faculty members at board meetings as was started last year – he has heard many compliments on this practice.

b. Report from the Office of the Provost--- Dr. Einhellig next reported that there will be about 1,900 students graduating tomorrow – 79% undergraduate and 21% graduate. He also reported that the recent Public Affairs Conference was a success. He then recognized Dr. Charlene Berquist who was named outstanding faculty member for our institution and participated in Governor Blunt's recognition banquet. He also recognized Dean Curt Lawrence who is retiring after 32 years with the institution and Dean Larry Banks who is retiring after about 45 years at the institution.

15. Research and Economic Development (continued) --- Dr. Jim Baker, Vice President for Research and Economic Development, reported that he will be recommending a new center, the Center for Biomedical and Life Sciences, at the June meeting. He added that through April (10 months) we have received about $12 million in grants and contracts – the all-time annual record for the University is $15 million, which was received last year.

16. Student Affairs (continued):
a. Report from Student Body President --- Mr. Mike Barnett, former President of the Student Body, reported and presented a slide demonstration on the Student Government sponsored trip to New Orleans over spring break to help with the Katrina relief cleanup. Missouri State University had the largest number of students participating in the Katrina program. He then introduced Sean Cain and Sarah Eubanks as the newly elected President and Vice President of the Student Body. Mr. Cain indicated that he was very excited about the upcoming year and looked forward to working with the Board.

b. Report from Vice President for Student Affairs --- Dr. Aripoli reported that we are up in about all categories of enrollment at this time – 389 in new Freshmen admits; 57 transfer students; and 98 graduate students. We are also up in every minority category. Housing applications are up by 292. To ensure that total enrollment does not fall, they are going to start focusing on retention. He stated that they are recommending holding the selection index at 108 this year.

17. Staff Senate --- Mr. Greg Burris, standing in for Mr. Ben Boslaugh, Chair of the Staff Senate, reported that the Staff Senate passed a resolution supporting the JQH Arena.

18. Finance (continued):
a. Development Report --- Mr. Greg Onstot, Vice President for University Advancement, reported that after ten months we are up in all categories of giving and we have already exceeded our all-time fiscal-year record. When compared to last year, we are up about $2.65 million in total gift dollars received.

b. Financial Report --- Mr. Kay presented the nine-month financial report as of March 31, 2006. After nine months, our net assets have increased about $22 million. This will drop some as we have three months of salaries remaining and only one month of revenue to recognize.

19. Date of Next Meeting --- The date of the next scheduled meeting was set for June 16, 2006 at 9:00 a.m., on the Mountain Grove Campus.

20. Adjournment --- Mr. Franks adjourned the meeting at 4:15 p.m. on the motion of Mr. Winston, the second of Mr. Duggan, and the unanimous vote of the Board.


John W. McAlear
Secretary