Missouri State University

September 15, 2006

MINUTES OF THE BOARD OF GOVERNORS
MISSOURI STATE UNIVERSITY
SEPTEMBER 15, 2006

  1. Roll Call
    Present- Mr. James Buford, Governor
    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. Cathy Smith, Governor
    Ms. Phyllis Washington, Governor
    Mr. John Winston, Governor

    Also
    Present- Michael Nietzel, President
    Kent Thomas, Chancellor of the West Plains Campus
    Greg Onstot, Vice President for University Advancement
    Belinda McCarthy, 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 9:00 a.m. in the Vaughn Cultural Center of the Urban League of Metropolitan St. Louis in St. Louis, Missouri. He first thanked Mr. James Buford for hosting the Board at its first-ever St. Louis meeting.
  3. Consent Agenda --- Mr. Franks noted that the first item of business on the agenda was the approval of the Consent Agenda for this meeting. Mr. McAlear commented that the last two items in the Design & Construction portion of the Consent Agenda needed to be removed. The remaining items included in the Consent Agenda are:

    Minutes
    Approval of the minutes for the open meeting of July 20-21, 2006, and the open and closed meetings of August 4, 2006.

    West Plains Campus Items
    Approval of the Activity Report for the month of August 2006 (West Plains Campus Activity Report No. 58-06).

    Approval of amended funding source for the multiple maintenance and repair projects on the West Plains and Mountain Grove Campuses previously approved at the March 10, 2006 meeting (West Plains Campus Bids & Quotations No. 31-06). This resolution reflects the campus reserve as a source of some of the project funding.

    Approval to increase the project budget for the voice, data, and lighting project on the West Plains Campus (West Plains Campus Bids & Quotations No. 32-06). The project budgets approved at the May 12, 2005, and May 18, 2006 meetings need to be increased by $104,650 to bring the new total project budget to $259,308.

    Approval of actions concerning West Plains Campus academic employees (West Plains Campus Personnel No. 256-06).

    Approval of actions concerning West Plains Campus non-academic employees (West Plains Campus Personnel No. 257-06).

    Springfield Campus Purchasing Actions
    Approval of purchases exceeding $100,000 between August 5, 2006 and September 1, 2006 (Purchasing Activity Report No. 287-06).

    Design and Construction Items
    Approval of Activity Report for the month of July 2006 (Activity Report No. No.164-06).

    Approval of Activity Report for the month of August 2006 (Activity Report No. 165-06).

    The practice gym improvements at Hammons Student Center (Bids & Quotations No. 1183-06); Kenmar Construction, Inc., only bid received of $333,388 for the base bid; total project budget set at $400,000. Mr. Franks had given telephonic approval of this award on August 18, 2006 so the work could begin.

    Approval to increase the project budget for the goal post relocation at Plaster Sports Complex (Bids & Quotations No. 1184-06). The recommended budget increase of $7,600 brings the new total project budget to $17,800.

    Approval of the fourth renewal of the contract for Inside Plant Telecommunications Wiring (Bids & Quotations No. 1185-06). The contract with M-Square Construction Company included a 3.6% increase in cost for calendar year 2007 over the previous year or a 16% increase over the original contract pricing.

    Approval of the second renewal of the contract for Outside Plant Telecommunications Wiring (Bids & Quotations No. 1186-06). This approval will increase the original contract with A-1 Electric Service, Inc. by 5% for the November 1, 2006 through October 31, 2007 period.

    Architectural and engineering services in conjunction with phase II of the feasibility study for a university recreation center (Architects & Engineers No. 620-06); Hastings + Chivetta, Architects, Inc., for an hourly fee with a not-to-exceed limit of $30,000 plus reimbursable expenses. Additional services of up to $8,000 as described in this agreement may be authorized and approved.

    Human Resources Items
    Actions concerning academic employees (Human Resources No. 1213-06).

    Actions concerning non-academic employees (Human Resources No. 1214-06).

    Mr. Duggan made a motion to approve the Consent Agenda receiving a second from Mr. Hammons.

    Motion passed 8-0.
  4. President's Office --- Dr. Michael Nietzel first presented a resolution (Board Policies No. 45-06) approving the Long-Range Plan "Imagining and Making Missouri's Future: A Long-Range Vision and Five-Year Plan (2006-2011)." This is a culmination of a 24-month process. The Plan has been posted on the University's website and it was discussed at the Board's retreat this summer. The Board approved its concept at their August 4, 2006 meeting. The Plan includes six chapters with the last chapter including 25 specified institutional measures to provide a "public scorecard." Moved by Mr. Winston and seconded by Ms. Smith.

    Motion passed 8-0.

    He next presented a resolution (Policies & Procedures No. 119-06) approving a Whistleblower Policy. This is a common move by universities to encourage their employees to come forward and report their concerns about areas where they suspect that universities are not following their own regulations or federal regulations. It is planned to contract with an outside firm to run a hotline to provide anonymity for those who call about a matter. The outside firm will take those calls and refer them to the University. We will follow our normal procurement policies seeking bids from companies to provide this service. Mr. Duggan asked to whom the outside company would report these matters. Dr. Nietzel responded that the concerns would be reported to the Office of Internal Audit. Moved by Mr. Duggan and seconded by Ms. Smith.

    Motion passed 8-0.

    Dr. Nietzel then presented a resolution (Policies & Procedures No. 120-06) delegating the authority to the President and/or the Chancellors for the use of alcoholic beverages on University property. Previously, the Board of Governors approved the use or possession of alcoholic beverages on University property. Moved by Ms. Sheid. Seconded by Mr. Duggan.

    Motion passed 8-0.

    He next presented a resolution (Agreement No. 182-06) awarding the exclusive radio rights contract for the period July 1, 2007 through June 30, 2013 for men's and women's basketball and football to Meyer Communications. The University received two proposals on this item – the Midwest Family Group and Meyer Communications. The proposals were evaluated on the following criteria: financial considerations – 50%; method of performance – 30%; and experience, reliability, and expertise – 20%. Bids were received, negotiations were held, and best and final offers were received. For the basic radio rights, Midwest bid $2.7 million and Meyer Communications bid $2.2 million. Meyer Communications had committed approximately $76,000 per year for the six years for scholarships and gifts. With this included, both bids are right at the $2.7 million amount. However, for evaluation purposes in the financial criteria, Midwest was awarded a higher score as the scholarship/gift commitments were not considered. For the other two criteria, the evaluation committee scored Meyer Communications considerably higher – based on their signal strength, the area of coverage for the flagship, the network was already established, and the announcers that we have had good response to were already employees of Meyer. The overall evaluation based on the three criteria resulted in Meyer Communications having a score of 91.63 while Midwest had a score of 74.75. Moved by Ms. Sheid and seconded by Mr. Duggan.

    Motion passed 8-0.

    Dr. Nietzel next reported on three endowments received by the university:
    • Mike & Barbara Ingram have established an endowment for scholarships for graduates of Parkview High School. These scholarships are aimed at students with significant financial need.
    • The James F. Morris family has established an undesignated endowed professorship to be used at the discretion of the Provost or President.
    • The McQueary family drug group has made three endowments: band, women's basketball, and men's basketball.
    Dr. Nietzel next introduced John F. Eilermann of McBride & Son Homes from St. Louis who established one of the first endowments received after he began his presidency at Missouri State University. This professorship will end up going to one of the faculty appointed when the joint engineering program begins. At the present time, it is in construction management.

    He then mentioned that there was a press conference this week for an update on the JQH Arena. The budget is now going to be $67 million. The arena will be reduced in size a little but we have maintained the overall quality of experience that we think the arena will provide. The other part of this announcement is that Mr. John Q. Hammons has increased his gift from $25 million to $30 million. This budget does not include everything that we want to do and we are hopeful, that with additional gifts, we can add other items to the project.

    Dr. Nietzel then mentioned that the presidents of the public universities met with Governor Matt Blunt this week for a briefing on the Lewis and Clark Initiative.

    He next indicated that they are looking at the incorporation of JVIC, Inc. as a separate 501(c)(3) corporation– this will be brought to the October Board meeting for the Board's consideration. This will be recognized as one of the five Innovation Centers in Missouri. It will also make us available for some additional funding outside of State funds that will be valuable to the institution as far as research is concerned.

    Dr. Nietzel then reported that the President's Commission on Diversity has issued their final report and it has been available on the University's website. One of their recommendations that has received the most attention is that the university clarify its policy with respect to nondiscrimination – this is focused on the issue of sexual orientation and the fact that it is not specified in the language of the policy; although, it is clear that it has always been the university's policy not to discriminate on any basis that is unrelated to qualifications, educational attainments, or employment requirements. He commented that it is time for him to express an opinion about this issue – the university has had a very well intentioned policy on nondiscrimination; however, it has been ambiguous and it has been subject to misinterpretation. He added that we have had to clarify our policy for accrediting agencies for specific disciplines. He indicated that he has also had to clarify to some people that the university does not discriminate on the basis of sexual orientation and it has become clear in these discussions that some people think we do discriminate or that we should. He remarked that this is not a position that the University wants to state. At some point, he added, it will be important for the Board to seek a way to clarify the policy – not change it.

    Mr. Franks mentioned that the Board did discuss the nondiscrimination policy at its retreat this summer and it is obvious that there is an issue that needs to be dealt with on clarification. He added that there are some board members today that would like to suggest that it is important for us to clarify the policy – not change it. He indicated that Ms. Washington has indicated that she has a motion to address this, but before it is heard, the Board has to agree to hear her motion. Mr. Duggan moved to hear Ms. Washington's motion receiving the second of Mr. Hammons.

    Motion passed by voice vote.

    Ms. Washington then moved to include language that she would like to see added to the nondiscrimination statement for clarification (Board Policies No. 46-06). She read the additional language - included as a parenthetical to existing language: "(including, but not limited to, political affiliation and sexual orientation)." She also read a new sentence to be added – "This policy shall not be interpreted in a manner as to violate the legal rights of religious organizations or military organizations associated with the Armed Forces of the United States of America."

    Mr. Hammons seconded the motion. He then read from the current statement: "In accord with federal law and applicable Missouri statutes, the University does not discriminate on the basis of race, color, religion, sex, national origin, ancestry, age, disability, or veteran status in employment or in any program or activity offered or sponsored by the University." He added that the way he understands this motion, nothing would be added to this sentence concerning federal and state law. He read from the next sentence of the current statement: "In addition, the University does not discriminate on any basis" and that it his understanding that this is where Ms. Washington's parenthetical is inserted: "(including, but not limited to, political affiliation and sexual orientation)." The way he sees this is that the new parenthetical with the two items listed – political affiliation and sexual orientation – just clarifies what "any basis" means. Ms. Washington agreed that was what she was trying to accomplish with her wording. Mr. Hammons remarked that the key point is clarification - he does not see this as any change in policy. He does not see this as an endorsement of any individual's sexual lifestyle or particular political organization. He sees this as a reaffirmation of the University's commitment to first amendment freedoms of speech and association without fear of discrimination by the University in employment or academic decisions. He hopes this clarifying statement helps in the long term to be sure that folks understand what "we are not going to discriminate on any basis" means. Mr. Hammons added that he does not endorse the practice of homosexuality but that he does believe that people who claim that they are that way are entitled to be not discriminated against by the University. He supports this clarification. He indicated that "on any basis" could cover a long list of things and if there is a reasonable basis to include other items that need to be clarified in the future, he would not oppose doing so.

    Mr. Franks next asked Mr. Black if he felt the new wording was an expansion of our policy or a clarification of the policy. Mr. Black responded that we've heard for years that "all means all" and that every senior member of the Board who has been around during earlier discussions has expressed that our institution doesn't discriminate on any irrelevant factor. He concluded by saying, that as a legal matter, he does not believe this is a change in policy. Mr. Franks remarked that he has liked our policy that "any means all" and that it is a better policy than at most other universities. However, he indicated that because we have had to clarify our policy in the past, he favors this clarification. Mr. Sivill commented that everyone at this table believes in the same thing – that we shall not discriminate on any basis. He remarked that we need to make a decision that is best for our students and move on. He added that there are other good issues in the Commission's report to help us improve diversity on our campus and we need to emphasize all the other great things in the report for the betterment of our university.

    Mr. Winston commented that what is listed in the original policy is taken from either Federal or Missouri law or both. He remarked that although Ms. Washington's proposal is using a parenthetical, it is still adding other classes in addition to what the law states. He indicated that the original wording was obviously well thought out and well prepared – and as said earlier, "any is any or any is all or whatever term you want to use." However, he added that any group that comes to this organization and asks that they be included separately or parenthetically is causing attention to that entity over and above any other organization. Mr. Winston indicated he believes the current language is very clear. He remarked that if someone does not understand what "any" means, he does not know how you can talk to someone like that. He further added that, as far as he understood, there have been no lawsuits or issues that have come to the Board with our present policy. He asked what happens in six months when another group from another perspective or issue wants to be included in the parenthetical. He added that this is a start that may or may not end here. Mr. Winston indicated that there are several new members on the Board who are experiencing this issue for the first time so he would like to make a motion to table this issue until January where we have an opportunity to look at this issue further. Ms. Smith commented that she feels she does not have enough information on the issue so she seconded Mr. Winston's motion.

    Motion to table failed 2-6 (Mr. Winston and Ms. Smith voting for the motion).

    With no further discussion being offered, a roll call vote was taken on Ms. Washington's motion. Those voting for the motion were: Mr. Buford, Mr. Franks, Mr. Hammons, Ms. Sheid, and Ms. Washington; those voting against were: Mr. Duggan, Ms. Smith, and Mr. Winston.

    Mr. Franks declared the motion passed by a 5-3 vote.

    Dr. Nietzel ended his report by distributing a copy of Dr. Bruce Johnson's annual report on Intercollegiate Athletics. He asked that the Governors study this report and any questions can be addressed at the October meeting.
  5. Educational:
    1. Faculty Senate Report --- Dr. Mark Richter, Chairperson for the Faculty Senate, thanked the Board for the clarifying language that was just approved – it has been a very important issue to many constituencies on campus, including faculty, for a very long time. He reported that the only item on the agenda for yesterday's Faculty Senate meeting was discussion on the revised Faculty Handbook. He added that they plan on delivering their comments on the revision to the administration by mid-October so it can be on the Board's agenda in December. Mr. Franks commented that the Board is very interested in the new Faculty Handbook's grievance procedures. He added that the present procedures are complicated and ineffective and they need to look very closely at this chapter. Dr. Richter responded that this is the only chapter that is not completed and he understands the importance of this issue. The faculty are very interested in the language of this chapter to make sure that it is clear enough for faculty without legal training to understand what his/her rights are.
    2. Report from the Provost --- Dr. Belinda McCarthy, Provost, first presented a resolution (Agreement No. 183-06) approving and ratifying an agreement between the College of Business Administration of Missouri State University with the Center for Overseas Academic and Cultural Exchanges of Tsinghua University, Beijing, China and the International Management Education Center, Hong Kong. Moved by Mr. Duggan and seconded by Ms. Washington.

      Motion passed 8-0.

      She then presented a resolution (Policies & Procedures No. 121-06) approving amendments to the University Use of Wine and Spirits Policy. Motion made by Ms. Sheid and seconded by Mr. Duggan.

      Motion passed 8-0.

      Dr. McCarthy also reported that they have taken a look at the faculty background-check policy and they have started a new procedure that if a faculty applicant (regular faculty and per course faculty) indicates they have received a felony conviction, the material automatically goes to the General Counsel's office and a judgment will be made as to the need for a background check. That background check will be completed and evaluated before anyone is hired. Mr. Duggan commented that he is opposed to this type of procedure – for a safe environment for our student body, we should perform background checks on all hires (faculty and staff). We should not depend on the applicant to disclose whether or not he/she has been convicted of a felony. Dr. McCarthy noted that the Faculty Senate is looking at this issue – while we wait on the Faculty Senate report, we have started this new procedure. Mr. Franks commented that he thinks what we are talking about is a criminal-records check and he totally agrees with Mr. Duggan. Dr. McCarthy ended her report by indicating that two faculty members, Dr. Bob Pavlowsky and Dr. Doug Gouzie, received recognition from the City of Nixa for their great assistance with Nixa's recent sinkhole problem.
  6. Research and Economic Development --- Dr. Jim Baker, Vice President for Research and Economic Development, presented a resolution (Agreement No. 184-06) approving the St. John's Health System, Inc., to become a Corporate Affiliate of the Center for Applied Science and Engineering (CASE). Moved by Ms. Sheid. Seconded by Mr. Winston.

    Motion passed 8-0.

    He next presented a resolution (Agreement No. 185-06) approving a License Agreement with Ozarks Communications Services, LLC to allow them to attach and operate equipment from the University's tower that is being leased from the Missouri Conservation Commission in Taney County, Missouri. Moved by Ms. Washington and seconded by Mr. Duggan.

    Motion passed 8-0.
  7. West Plains Campus --- Mr. Kent Thomas, Chancellor of the West Plains Campus, reported that, as of Wednesday evening, their enrollment is down 63 students and 975 credit hours. The cost to attend is the main reason for this drop. Mr. Franks commented that an item for the next Board retreat is a new strategy for our West Plains Campus. A local tax base, like at all other community colleges, does not exist to support the campus. It is dependent on student tuition, gifts, and state appropriations just like the Springfield Campus. Its ability to serve that area is being compromised at this time due to the very large decrease in state appropriation support.
  8. Student Affairs:
    1. Report from Student Body President --- Mr. Sean Cain, President of the Student Body, gave a report to the Board. He mentioned that five weeks from today, the referendum will be complete to see whether or not the students support the recreation center that we are so keen on building. He also reported he is working with the student body president from Drury on the "under 21" proposal which will be on the ballot in November. They will be sponsoring open forums on this issue as well as working on registering students so they can vote in the November election. He ended his report by thanking the Board for their prompt and deliberate action in response to the recommendation on sexual orientation included in the report from the President's Commission on Diversity
    2. Report from Vice President for Student Affairs --- Dr. Don Aripoli, Vice President for Student Affairs, reported that they will have events in Kansas City on November 2, 2006 similar to those held yesterday in St. Louis. He next indicated that Fall enrollment numbers are not official until next Monday night, but as of right now, we are up 192 students in first-time Freshmen. We are also up in first-time transfers and first-time graduate students. Dr. Aripoli estimates that our official enrollment will be somewhere between 19,200 and 19,400 compared to last year's enrollment of 19,165. As far as a wellness update, they plan on having a major wellness kickoff on January 30, 2007 with several types of screenings available that day along with several different types of information on wellness. He then distributed a document showing a comparison of costs (instructional and room/board) between Missouri State University and the other public institutions. He also included the instructional costs of some area institutions and some from neighboring states. We are the lowest priced of the selective Missouri institutions.
  9. Staff Senate --- Mr. Greg Burris, Vice President for Administrative and Information Services, standing in for Mr. Ben Boslaugh, Chair of the Staff Senate, reported Staff Senate has elected new officers: Chair-elect - Marline Faherty; Secretary – LaDonna Hansen; Parliamentarian – Steve Mills.
  10. Finance:
    1. Development Report --- Mr. Greg Onstot, Vice President for University Advancement, gave the development report for the first two months of the fiscal year. We are running ahead of last year – we are up about $230,000 in total gift dollars received.

      He next presented a resolution (Facilities No. 35-06) recognizing Mark J. Hall by permanently installing a plaque in the interior of the Student Exhibition Center. He played a key role in working to make the current Student Exhibition Center a reality. In addition, the fund known as the Student Exhibition Center Endowed Fund in the Missouri State University Foundation will be named the Mark J. Hall Student Exhibition Center Endowed Fund in honor of Mr. Hall. Tragically, Mr. Hall was killed in a traffic accident in Springfield in the summer of 2005. Moved by Ms. Sheid and seconded by Mr. Winston.

      Motion passed 8-0.
    2. Financial Report --- Mr. Kent Kay, Chief Financial Officer, presented the June 30, 2006 year-end internal financial statements. Our cash and investments at year end total $87.7 million in comparison to $75.4 last year. Our undesignated net assets total $38.5 million in comparison to $24.6 last year.

      He next presented a resolution (Finance No. 991-06) requesting 2008 Operating Funds for Missouri State University-Springfield, West Plains, and Mountain Grove Campuses. This has been submitted to the State – we are asking for the Board's ratification. The first aspect that the CBHE is going to be submitting is an amount to cover mandatory expense increases: health insurance, retirement, utilities, information technology, and supplies/services. Our increase in these areas from 2005 to 2006 was $12 million so this is the amount we will be requesting in this category. The other decision items that we are requesting are: 1) equitable per student funding of about $6 million – we are funded $402 less per FTE student than the mean of comparable four-year higher education institutions in Missouri; 2) funds for the cooperative engineering program with the University of Missouri – a $500,000 one-time request to start up the program and $500,000 in ongoing expenses; and 3) funds for an Innovation Academy at Missouri State University – $150,000 for a summer program that will expose high-ability high school juniors and seniors-to-be to math, science, and engineering at a collegiate level. Ms. Washington so moved, receiving the second of Mr. Hammons.

      Motion passed 8-0.

      Mr. Kay then presented a resolution (Purchasing Activity Report No. 288-06) for purchases exceeding $100,000 from September 2, 2006 through September 14, 2006. Moved by Mr. Buford. Seconded by Mr. Duggan.

      Motion passed 8-0.
  11. Facilities and Equipment --- Mr. Greg Burris presented a resolution for engineering services in conjunction with the utility master plan for the Springfield Campus (Architects & Engineers No. 621–06); Burns and Roe Enterprises, Inc., for an hourly not-to-exceed fee of $228,884 plus reimbursable expenses. Additional services of up to $40,000 as described in this agreement may be authorized and approved as necessary. Moved by Mr. Winston and seconded by Ms. Washington.

    Motion passed 8-0.

    Mr. Burris next gave a brief update, with drawings, on the JQH Arena. We will be able to host events in this arena that we were not able to consider in Hammons Student Center. The students have requested bleacher seats and there will be about 1,300 bleacher seats in one end of the arena. The remaining seating will be in a horseshoe shape. There will be at least 22 private suites, an area for a private club, and we will have about three times the number of lower bowl seats in the new arena. There will be about 12,500 sq. ft. of shell space that potentially could become the home of home locker rooms, coaches' offices, and a training suite.
  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 September 15, 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. Duggan 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 Buford, Duggan, Franks, Hammons, Sheid, Smith, Washington, and Winston; those voting against – none.

    Mr. Franks declared the resolution passed unanimously.
  13. Date of Next Meeting --- The date of the next scheduled meeting was set for October 27, 2006 at 9:00 a.m., in Room 313 of the Plaster Student Union on the Springfield Campus.
  14. Adjournment--- Mr. Franks adjourned the meeting at 12:15 p.m. on the motion of Ms. Sheid, the second of Mr. Duggan, and the unanimous vote of the Board.

John W. McAlear
Secretary