November 18, 2005

MINUTES OF THE BOARD OF GOVERNORS
MISSOURI STATE UNIVERSITY
NOVEMBER 18, 2005

1. Roll Call
Present- Mr. James Buford, Governor
Mr. Michael Duggan, Governor
Mr. Michael Franks, President of the Board
Ms. Mary Sheid, Vice President of the Board
Mr. Ryan Sivill, Student Governor
Ms. Phyllis Washington, Governor (by conference call)

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 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 regular meeting held on October 28, 2005. Ms. Sheid moved to approve the minutes as presented. Mr. Duggan seconded the motion.

Motion passed 5-0.

4. Report from the President --- Dr. Michael Nietzel first commented on the State budget situation. He explained that all State higher education institutions were asked to submit contingency plans for a possible 10% to 12% state appropriation reduction in FY07. Each institution submitted a very general response to this exercise; as there was only a 48-hour time period to prepare the response. This amounts to a budget cut of about $8 million to $9.6 million for Missouri State University. Dr. Nietzel indicated in his response that about 67% of our budget is devoted to personnel, and budget reductions of this magnitude would have severe implications for personnel at the University. Tuition increases to offset these cuts and address fixed cost increases would need to be double-digit percentage increases. He then mentioned that the University hosted a higher education summit on November 8, 2005 and we had excellent attendance. After the summit, a meeting was held with University of Missouri leadership, President Elson Floyd and several of the System Chancellors and it was agreed to focus our initial attention on the development of an effort to bring an engineering curriculum to Springfield through collaborative efforts with the University of Missouri at Rolla. This would be a University of Missouri–Rolla degree program but delivered on the Missouri State Campus. The cost estimates are being developed so that we can take a proposal to the Governor and the legislature.

He then presented a resolution (Awards No. 14-05) commending Mr. Tom Finnie for his outstanding service as City Manager for the City of Springfield, Missouri. He explained that the relationship that Missouri State has with the City of Springfield is one that would be envied by any other major city/major university partnership. Motion made by Ms. Sheid with the second provided by Mr. Duggan.

Motion passed 5-0.

Dr. Nietzel next summarized what we heard at the Higher Learning Commission (HLC) site team exit meeting last week. He explained that we received a very good report. The team indicated that they intended to recommend accreditation for the maximum period allowed – ten years. He further explained that this is the site team recommendation – there are several additional layers to pass through before the final recommendation is received. Dr. Bill Cheek, Chair of the HLC Self Study Team, then provided some additional information regarding the site visit to the Board. Dr. Nietzel then presented Dr. Cheek with a Bear to recognize his leadership of the Self Study Team.

Dr. Nietzel ended by reporting that later in today's meeting as part of the Purchasing Report, the Board will be asked to approve a renewal of our contract with the Livingston Group as our lobbyist in Washington D.C. This will be our fourth year and the estimated cost is $160,000.

5. Educational:
a. Approval of New Program --- Dr. Frank Einhellig, Acting Provost, presented a resolution (Curriculum No. 284-05) establishing a new program - Master of Science in Early Childhood and Family Development. Moved by Ms. Sheid and seconded by Mr. Buford.

Motion passed 5-0.

6. Report from Vice President for Research & Economic Development:
a. Approval of Agreement --- Dr. Jim Baker, Vice President for Research & Economic Development, presented a resolution (Agreement No. 169-05) approving a letter of agreement between Missouri State University and Yunnan Agricultural University. He explained that this agreement does not commit us to any resources at this time – it basically allows the two institutions to collaborate on future programs/projects that will be brought to the Board for their approval. Moved by Ms. Sheid and seconded by Mr. Duggan.

Motion passed 5-0.

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

Approval of the Building Report dated November 2, 2005 for the West Plains Campus (West Plains Campus Building Report No. 97-05).

Approval of actions concerning non-academic employees of the West Plains Campus (West Plains Personnel No. 244-05).

Approval of assignment, assumption and first amendment of lease agreement with Diana Chadwick and Jason Peterson D/B/A/ Chadwick-Peterson Insurance Services and West Plains T-I-C for educational purposes (West Plains Agreement No. 22-05). This lease will provide office/classroom space for the Respiratory Therapy program for an interim period until renovations on space under contract for purchase by the University are completed.

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

Motion passed 5-0.

8. Financial:
a. Purchases & Contracts --- Mr. Kent Kay, Chief Financial Officer, next presented the following resolutions for the Board's consideration:

Purchases exceeding $100,000 from October 28, 2005 through November 4, 2005 (Purchasing Activity Report No. 273-05).

Purchases exceeding $100,000 from November 5 through November 17, 2005 (Purchasing Activity Report No. 274-05).

Moved by Mr. Duggan. Seconded by Mr. Buford.

Motion passed 5-0.

Mr. Kay next presented a resolution (Agreement No. 170-05) approving a lease agreement with Crosslink to lease space in the Jordan Valley Innovation Center (JVIC) and become a corporate affiliate of the Center for Applied Science and Engineering (CASE). Moved by Mr. Duggan. Seconded by Ms. Washington.

Motion passed 5-0.

9. 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 October 2005 (Activity Report No. 155-05).

Jordan Valley Innovation Center (JVIC) Phase I Renovation (Bids & Quotations No. 1162-05); DeWitt Associates, LLC, low bid of $8,932,520 for the base bid plus alternates one, three, and five; total project budget established at $11,393,520. The funding source for a portion of this project remains unsecured at this time. The FY05 Department of Defense grant (net of the DoD "withhold") provided approximately $7.64 million toward this project. At this time, the University anticipates "net" proceeds of an additional $4.2 million Federal appropriation request. If received, this would bring the total available to $11.84 million.

Hazardous material removal for the Jordan Valley Innovation Center (Bids & Quotations No. 1163-05); Gerken Environmental Enterprises, Inc., low bid of $68,921 for the base bid and alternate number one; total project budget set at $140,000.

Approval to increase the project budget for the locker-room modifications at Hammons Student Center (Bids & Quotations No. 1164-05). An increase of $6,300 brings the new total budget to $376,965.

Moved by Ms. Sheid and seconded by Ms. Washington. Mr. Franks reminded the Board that the JVIC Phase 1 renovation is a provisional approval – we will not go forward with the awarding of the bid unless we receive the additional federal funding.

Motion passed 5-0.

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

Actions concerning academic employees (Human Resources No. 1189-05).

Actions concerning nonacademic employees (Human Resources No. 1190-05).

Moved by Mr. Duggan and seconded by Mr. Buford.

Motion passed 5-0.

At this time, Ms. Washington needed to end her conference-call participation in the meeting.

11. Financial (continued):
a. Audit Report for FY05 --- Mr. Kent Kay presented the June 30, 2005 Financial Report. He reported that at the close of business on June 30, 2005, assets totaled $359 million; liabilities totaled $91.89 million; and net assets equaled $267.11 million. Gross student fees totaled $86.7 million and state appropriations totaled $77.91 million. Operating expenses totaled $203.99 million with salaries totaling $104.12 million and benefits totaling $28.59 million.

Representatives from the accounting firm, BKD, LLP, next reviewed their clean opinion on the university's June 30, 2005 financial statements; their management letter with recommendations to strengthen internal control; and the June 30, 2005 Federal Awards Programs report. Included in their management letter was a recommendation regarding the federal awards area – to perform a comprehensive review of this area and the policies and procedures to make sure personnel are in place, systems are adequate to handle the award volume, and that all areas involved in the federal awards process are working together to achieve the required compliance.

Mr. Franks asked Mr. Kay to report to the Board in about two months on their plan and timeframe on how to address BKD's recommendation of a comprehensive review of the federal awards area. He also asked Mr. Kay to brief the Board in June 2006 on the Perkins Loan collection activity – another area mentioned by BKD needing some attention.

12. Educational (continued):
a. Faculty Senate Report --- Dr. Art Spisak, Chairperson for the Faculty Senate, reported that at their November meeting, the Senate passed a resolution endorsing the continuation of the Distinguished Professor and University Fellow component of the Roles and Rewards plan for the current academic year. They also passed a resolution calling for the implementation of the plus/minus grading system.

Dr. Spisak next introduced Dr. David Dixon, Professor of Psychology and Director of the Center for Research and Service, to provide a report on the many projects that he is involved with. He reported that they work almost exclusively with not-for-profit organizations.

b. Report from Acting Provost --- Dr. Frank Einhellig congratulated the Board as he heard many positive comments from the HLC site team concerning the knowledge and supportive nature of the Board.

13. Report from Vice President for Research and Economic Development (continued)--- Dr. Jim Baker announced that the JVIC groundbreaking ceremony will take place on November 29, 2005 at 1:30 p.m. at the MFA building site. He next reported that the C.W. Titus Foundation has notified Broadcast Services it has approved $853,000 for KSMU and Ozarks Public Television capital projects.

Dr. Baker next asked Dr. Bill Alter to present the FY05 annual report for Sponsored Research and Programs. He summarized some key numbers for the year: 313 submissions; $49,832,951 funds requested; 186 named investigators; 239 awards; and $16,615,908 funds awarded. He reported that about 40% of our activity is serving the cities and counties in our area. About 33% of our projects are research oriented while 52% are service activities. For the first time, four of our academic colleges received awards totaling more than $1 million.

14. West Plains Campus (continued):
a. Report from Chancellor --- Mr. Kent Thomas reported that the Lady Grizzlies finished their regular season ranked fifth in the nation. They won their regional competition and will represent Region 16 in the NJCAA Division I national tournament. He reported that the men's basketball team is 7-0 and has beaten the number 1 and 7 ranked teams in the country in the last two weeks.

15. Student Affairs:
a. Report from Student Body President --- Mr. Mike Barnett, President of the Student Body, reported that the SGA recently passed a resolution in opposition to the plus/minus grading system.

b. Report from Vice President for Student Affairs--- Dr. Don Aripoli, Vice President for Student Affairs, reported that they had a nice recruiting trip to Kansas City this week. They met with about sixty guests on Tuesday night and then with about thirty high school counselors on Wednesday morning.

16. Staff Senate --- Mr. Ben Boslaugh, Chairperson-elect of the Staff Senate, reported on the veteran's event held on campus last Friday.

17. Finance (continued):
a. Development Report --- Mr. Greg Onstot, Vice President for University Advancement, reported on the Development Report for the first four months of this fiscal year. We are up in numbers and dollars in all gift categories so far this year. In total, we are up about 460 gifts and about $400,000.

18. 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 November 18, 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. 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,…"

Mr. Buford 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 Buford, Duggan, and Franks; those voting against – none; those absent- Ms. Washington and Ms. Sheid (out of room).

19. Date of Next Meeting --- The date of the next scheduled meeting was set for December 16, 2005.

20. Adjournment--- Mr. Franks adjourned the meeting at 11:40 a.m. on the motion of Mr. Duggan, the second of Mr. Buford, and the unanimous vote of the Board.


John W. McAlear
Secretary