Missouri State University

September 16, 2005

MINUTES OF THE BOARD OF GOVERNORS
MISSOURI STATE UNIVERSITY
SEPTEMBER 16, 2005

1. Roll Call
Present- Mr. James Buford, Governor
Mr. Michael Duggan, Governor
Mr. Michael Franks, Governor
Ms. Mary Sheid, Governor
Mr. Ryan Sivill, Student Governor
Ms. Phyllis Washington, 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 Vice President for Academic Affairs
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, former President of the Board of Governors of Southwest Missouri State University. He called the meeting to order at 9:15 a.m. in the Traywick Parliamentary Room in the Plaster Student Union on the campus of Missouri State University in Springfield, Missouri. He welcomed everyone to the first meeting of the Board of Governors of Missouri State University. He also welcomed the newest addition to the Board, Mr. Jim Buford of St. Louis, President of the Urban League of Metropolitan St. Louis and former board member at Harris Stowe University.

3. Election of Officers --- Mr. Franks stated that the first order of business was the election of officers of the new board. Mr. Duggan nominated Michael Franks as President, Mary Sheid as Vice President, Kent Kay as Treasurer, and John McAlear as Secretary. Ms. Washington seconded the nominations. With no other nominations being offered, Mr. Franks asked for a vote on the nominations on the floor.

Nominations passed unanimously (5-0).

4. Minutes --- Mr. Franks noted that the next item of business on the agenda was the approval of the minutes submitted by the Secretary for the open and closed regular meetings of Southwest Missouri State University held on July 22, 2005 and the open minutes of the Southwest Missouri State University Board of Governors retreat held on August 4/5, 2005. Ms. Sheid moved to approve the minutes as presented. Mr. Buford seconded the motion.

Motion passed 5-0.

5. Report from the President --- Dr. Michael Nietzel first commented that the Missouri State Government Review Commission is bringing forward recommendations. One recommendation is the creation of a cabinet-level position of a Secretary of Higher Education appointed by the Governor. This position would replace the current Commissioner of Higher Education. Another recommendation is a change in the makeup of the Coordinating Board of Higher Education – it would be composed of the University of Missouri System President, one Chancellor from the University of Missouri System, two Presidents from the other public four-year colleges and universities, two Presidents from Missouri community colleges, one President from a Missouri independent college, and two lay citizens.

He next remarked that the Board would be very proud of the University community's response to the hurricane victims. We have enrolled displaced students and have made financial contributions (supplies and cash). Dr. Nietzel next announced that there will be a conference held on campus on November 8th on the benefits of higher education. He also announced that his State of the University address will be held on October 3, 2005 at noon.

Dr. Nietzel then presented a resolution (Bylaws No. 16-05) amending the Board's bylaws based on the discussions held at the August 4/5 retreat. The changes include the establishment of an executive committee, the definition of a quorum, and the addition of a consent agenda. Motion made by Ms. Sheid with the second provided by Mr. Duggan.

Motion passed 5-0.

Dr. Nietzel next presented a resolution (Board Policies No. 41-05) adopting the Board's meeting schedule for calendar year 2006. As we have grown into a true statewide board, the number of regularly scheduled meetings has been set at seven. Moved by Mr. Buford and seconded by Mr. Duggan.

Motion passed 5-0.

Dr. Nietzel then presented a resolution (Administration No. 5-05) approving the establishment of a Provost position that would be the Chief Academic Officer of the University. A national search will be performed for subsequent presentation to the Board. Moved by Ms. Washington and seconded by Mr. Duggan.

Motion passed 5-0.

He next presented a resolution (Curriculum No. 283-05) approving the establishment of the Community and Social Issues Institute. Background material was presented at the Board's last regular meeting. This institute will allow us to establish a university-wide research focus in the social sciences aimed at problems such as poverty, delinquency, and drug abuse. Dr. Lloyd Young, professor emeritus of Sociology and serving as the Director of the Institute, then addressed the Board. He remarked that he has discussed this concept with many community leaders and faculty members and there is a lot of interest and enthusiasm. Motion made by Mr. Buford with the second provided by Mr. Duggan.

Motion passed 5-0.

6. Educational:
a. Faculty Senate Report --- Dr. Art Spisak, Chairperson for the Faculty Senate, reported that at their first meeting this academic year Dr. Nietzel was a guest speaker. He stated that Dr. Nietzel brought the Senate up to date on current initiatives in eight areas concerning budget, provost position, processes, program review, committees, endowments, expectations of students, and the Board.

Dr. Spisak remarked that the faculty member who will be profiled in today's meeting is Dr. Ryan Giedd, Executive Director for the Center for Applied Science and Engineering (CASE), the Executive Director for the Jordan Valley Innovation Center, and Professor of Physics and Materials Science. Dr. Giedd reported that he has been with Missouri State for about sixteen years. From 1998 to 2004, he served as Department Head of the Physics, Astronomy, and Materials Science Department. The focus of his research and teaching efforts has been in developing devices for microelectronics. He has been working to develop a material science program that will work with small, emerging advanced technology businesses. They are trying to develop a technology to take a biological or chemical image of a scene and to be able to detect a terrorist event or monitor the biological or chemical health of our environment. The establishment of CASE was designed to take a much more interdisciplinary approach in the development of these technologies. This year, they received about $10.2 million for projects in CASE and another $8 million for renovation of the Jordan Valley Innovation Center. They are working with five companies who will be bringing jobs to the Springfield area.

b. Report from the Acting Vice President for Academic Affairs --- Dr. Frank Einhellig, Acting Vice President for Academic Affairs, recognized those faculty members who received university awards for the 2004-05 academic year as well as those faculty members who received national awards during 2004-05. He ended his report by distributing a copy of the Executive Summary of the Higher Learning Commission Self Study Report. The site visit by representatives of the Higher Learning Commission will be November 7-9, 2005.

7. Report from Vice President for Research & Economic Development --- In Dr. Jim Baker's absence, Dr. Einhellig next reviewed with the board a Sponsored Program Activity Report for July and August of this year. Through the first two months of this year, we have received 35 awards totaling $3.2 million.

8. Report from the West Plains Campus --- Mr. Kent Thomas, Chancellor of the West Plains Campus, reported that the West Plains Campus celebrated the new Missouri State name on August 30 and had a good turnout from the students and the community. He also reported that the head-count enrollment as of Monday was 1,625 students compared to 1,601 students last year. He then announced that Coach Trish Knight, women's volleyball coach, has been named the most caring coach by USA Today Weekend Magazine. He then presented the following resolutions for the Board's consideration:

Approval of the Activity Report for the month of August, 2005 for the West Plains Campus (West Plains Campus Activity Report No. 54-05).

Approval of the Building Report dated August 31, 2005 for the West Plains Campus (West Plains Campus Building Report No. 95-05).

Approval of amended contract for the purchase of property located at 304 Garfield Avenue, West Plains, Missouri (West Plains Land Purchase No. 21-05). This purchase was approved at the July, 2005 meeting, however, the seller requested some modifications to the contract which had previously been agreed to.

Approval of actions concerning academic employees of the West Plains Campus (West Plains Personnel No. 240-05).

Approval of actions concerning non-academic employees of the West Plains Campus (West Plains Personnel No. 241-05).

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

Motion passed 5-0.

9. Student Affairs:
a. Report from Student Body President --- Mr. Mike Barnett, President of the Student Body, reported that the CDGIX music downloading service should be up and running by the middle of next week. He next remarked that he and Student Governor Ryan Sivill have been working on different projects to increase the student attendance at our intercollegiate athletics competitions. He ended his report by announcing that he will be leaving to visit our China campus on Monday.

b. Report from Vice President for Student Affairs--- Dr. Don Aripoli, Vice President for Student Affairs, reported on enrollment numbers at this point in the semester. He commented that our yield rate, the percentage of students who we admit who end up coming, has increased from 48.3% to 49.2% when compared to last year. Our average ACT score is up from 23.6 to 23.8. We opened with 2,582 new freshmen – the official fall enrollment numbers will be based on where we are next Monday night. He added that we have 96.5% occupancy in our residence halls. Regarding hurricane Katrina, we are helping our students from that region (about twenty). We have also enrolled about ten displaced students, and we are making eleven apartments available for hurricane refugees at no cost.

10. Staff Senate --- Dr. Diana Garland, Chairperson of the Staff Senate, reported that there were many staff members who worked at the name change August 28 celebration, and it was very energizing for those staff members to see how excited students were that night. She also reported that national denim day will be October 7, 2005 and this is a staff senate supported project that will be taking place that entire week.

11. Finance:
a. Development Report --- Mr. Greg Onstot, Vice President for University Advancement, reported on gifts received through the first two months of the fiscal year. Our total gift numbers are down about 310 while total gift dollars are up about $220,000 when compared to last year. Total gifts received through August 31, 2005 are $1,654,060. Our final capital campaign numbers (goal of $50 million) ended up at $52,856,602.

He next distributed an overview of FY06 salaries and benefits for athletics administrators and coaches (Human Resources No. 1182-05) for the Board's approval. Moved by Mr. Buford, receiving the second of Mr. Duggan.

Motion passed 5-0.

b. Financial Report --- Mr. Kent Kay, Chief Financial Officer, presented the June 30, 2005 year-end internal financial statements.

He then presented a resolution (Agreement No. 162-05) authorizing the execution of an agreement with Promontory Interfinancial Network, LLC to participate in the Certificate of Deposit Account Registry Service with Great Southern Bank serving as the University's agent. This is a good arrangement since all deposits are eligible for full FDIC insurance, are convenient, and are earning higher fixed rates of return than other permitted investments. Moved by Ms. Sheid and seconded by Mr. Duggan.

Motion passed 5-0.

Mr. Kay next presented a resolution (Finance No. 987-05) approving the request for 2007 operating funds for Missouri State University-Springfield, West Plains, and Mountain Grove campuses. In addition to our FY06 core appropriation of $80,295,971, we are requesting an additional $14,258,330. Moved by Ms. Sheid. Seconded by Mr. Duggan.

Motion passed 5-0.

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

Purchases exceeding $100,000 from July 22, 2005 through September 2, 2005 (Purchasing Activity Report No. 269-05).

Purchases exceeding $100,000 from September 3 through September 15, 2005 (Purchasing Activity Report No. 270-05).

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

Motion passed 5-0.

Mr. Kay next presented a resolution (Policies & Procedures No. 110-05) approving the expansion of our procurement card program. Positive feedback has been received from the departments participating in a pilot program and this resolution is to expand the program campus wide.

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

Motion passed 5-0.

Mr. Kay then presented the following resolutions:

Approval of lease agreement with Nantero, Inc., to lease space in the Jordan Valley Innovation Center (JVIC) and become a corporate affiliate of the Center for Applied Science and Engineering (CASE) – (Agreement No. 163-05).

Approval of lease agreement with Brewer Science, Inc., to lease space in JVIC and become a corporate affiliate with CASE – (Agreement No. 164-05).

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

Motion passed 5-0.

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

Approval to enter into a license agreement with City Utilities of Springfield, Missouri for trunked radio system services (Agreement No. 165-05).

Approval of a rental contract with Springfield Ballet, Inc., for practice space (Agreement No. 166-05).

Approval of Irrevocable Consent to Dedicate Right-of-way at the Jordan Valley Innovation Center site (Land No. 84-05).

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

Motion passed 5-0.

12. Facilities and Equipment --- Mr. Burris then presented the following resolutions for the Board's consideration:

Approving the Activity Report for the month of July 2005 (Activity Report No. 152-05).

Approving the Activity Report for the month of August 2005 (Activity Report No. 153-05).

Approval to increase the project budget for the locker room modifications at Hammons Student Center (Bids & Quotations No. 1159-05). An increase of $6,000 brings the new total budget to $362,000. This project was originally approved at the June 17, 2005 board meeting.

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

Motion passed 5-0.

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

Actions concerning academic employees (Human Resources No. 1183-05).

Actions concerning nonacademic employees (Human Resources No. 1184-05).

Approval of the revised Employee Handbook for Administrative, Professional and Support Staff (Policies & Procedures No. 111-05).

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

Motion passed 5-0.

Mr. Burris then presented a resolution (Land No. 85-05) approving the sale of the property located at 1515 South Fairway. The Missouri General Assembly and the Governor of the State of Missouri have approved the sale of this university-owned property, previously the home of the university president. No bids were received through a sealed bid solicitation so the decision was made to pursue a sale through normal real estate procedures. The buyers are employees of the University with a sale price of $289,700. Moved by Mr. Duggan. Seconded by Ms. Sheid.

Motion passed 5-0.

Mr. Burris next presented a resolution (Human Resources No. 1185-05) amending our medical insurance plan. Mr. Howard Berriman, Assistant Director of Human Resources, explained that this amendment is necessary due to the new Medicare pharmacy benefit effective January 1, 2006. We have always permitted our retirees to continue under our medical insurance plan provided such retirees pay the established premiums. The new law includes a provision that allows employers who continue to offer a prescription plan to their Medicare-eligible retirees to receive a 28% subsidy from the federal government. To apply for this benefit, the employer must establish that their prescription plan is at least as good as the one available through Medicare (Part "D"). Our employee benefits consultant performed an actuarial assessment and has determined that our plan meets that federal requirement. We have to apply for the subsidy by September 30, 2005. It is estimated that we might receive as much as $146,000 per year. Moved by Mr. Duggan. Seconded by Ms. Washington.

Motion passed 5-0.

Ms. Jana Estergard, Equal Opportunity Officer, next reported that, in July, Dr. Nietzel approved a name change for the Office of Equal Opportunity to the Office for Equity and Diversity. They have received very positive feedback on this name change. She next presented the following resolutions for the Board's consideration:

Adoption of Revision of the Missouri State University Equal Opportunity Publication Policy (Policies & Procedures No. 112-05)

Adoption of Revision of the Missouri State University Prohibition of Discrimination and Harassment Policy (Policies & Procedures No. 113-05).

Moved by Ms. Sheid. Seconded by Mr. Buford.

Motion passed 5-0.

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 September 16, 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. Duggan moved the approval of the resolution and Ms. Sheid seconded the motion.

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

Board President Franks declared the motion was passed 5-0.

15. Date of Next Meeting --- The date of the next scheduled meeting has yet to be determined.

16. Adjournment--- Mr. Franks adjourned the meeting at 11:50 a.m. on the motion of Ms. Sheid, the second of Ms. Washington, and the unanimous vote of the Board.


John W. McAlear
Secretary