December 12, 2019

MINUTES OF THE BOARD OF GOVERNORS’ MEETING
MISSOURI STATE UNIVERSITY
THURSDAY, DECEMBER 12, 2019, 1:00 P.M.

1.    Roll Call
Present - Mr. Gabriel E. Gore, Chair
Ms. Amelia Counts, Governor
Mr. Craig Frazier, Governor
Ms. Beverly Miller Keltner, Governor
Mr. William Miller, Student Governor
Mr. Kendall Seal, Governor
Ms. Carol Silvey, Governor
Mr. Greg Spears, Governor 

Absent - Ms. Carrie Tergin, Governor

Also Present - Clifton M. Smart III, President
Jim Baker, Vice President for Research and Economic Development & International Program 
Donna Christian, Director of Internal Audit and Risk Management
Jeff Coiner, Chief Information Officer
Ryan DeBoef, Chief of Staff and Assistant to the President for Governmental Relations
Rachael Dockery, General Counsel and Chief Compliance Officer
Brent Dunn, Vice President for University Advancement
Frank Einhellig, Provost
Stephen Foucart, Chief Financial Officer
Shirley Lawler, Chancellor of the West Plains Campus
David Hough, Dean of the College of Education
Kyle Moats, Director of Athletics
Matt Morris, Vice President for Administrative Services
Wes Pratt, Chief Diversity Officer and Assistant to the President
Dee Siscoe, Vice President for Student Affairs
Rowena Stone, Executive Assistant to the President
Kristan Gochenauer, Secretary to the Board of Governors
        
2.    Presiding – The presiding officer for the meeting was Mr. Gabriel E. Gore, Chair 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.    Approval of Minutes – Mr. Gore mentioned that the first item of business was the approval of the minutes for the open and closed meetings of October 25, 2019. Ms. Beverly Miller Keltner so moved, receiving the second from Ms. Carol Silvey.
          
Motion passed 7-0.

4.    Consent Agenda – Mr. Gore noted that the next item of business on the agenda was the approval of the Consent Agenda for this meeting.  The items included in the Consent Agenda are:

West Plains Campus
Approval of Actions Concerning West Plains Campus Academic Employees (West Plains Campus Personnel No. 441-19).

Approval of Actions Concerning West Plains Campus Non-Academic Employees (West Plains Campus Personnel No. 442-19).

Procurement and Financial
Approval of Procurement Activity Report for the Period October 9, through November 27, 2019 (Purchasing Activity Report No. 484-19).

Approval of Fee Schedule Resolution Amendment

Human Resources Items
Approval of Actions Concerning Academic Employees (Human Resources No. 1630-19).

Approval of Actions Concerning Non-Academic Employees (Human Resources No. 1631-19).

Approval of Cost Center-Funded Equity Increases of Non-Academic Employees (Human Resources No. 1632-19).

Approval of Fair Labor Standards Act (FLSA) Salary Increases of Non-Academic Employees (Human Resources No. 1633-19).

Approval of Amendments and Changes to the Memorandum of Agreement between Missouri State University and Teamsters Local Union No. 245 (Human Resources No. 1634-19).

Mr. Gregory Spears made a motion to approve the Consent Agenda, receiving a second from Ms. Amy Counts.

Motion passed 7-0.

5.    Making Our Missouri Statement Moment – Board of Governors’ Citizen Scholar Award Recipients – Dr. Dee Siscoe, Vice President for Student Affairs, read the Citizen Scholar resolution (Award No. 85-18) and requested approval of the following students as Citizen Scholars for 2019-2020:  Cassidy Cunningham, Seth Hadley, Rachel Prather, Robbyn Rose, Niyati (Mia) Sethi, and Stephanie Urich.  A motion was made by Ms. Miller Keltner and seconded by Ms. Silvey.

Motion passed 7-0.


6.    Committee Reports:
A.    Mr. Gore reported on the November 19, 2019 Executive Committee meeting. The committee approved the final terms for the bond refinancing package that were previously discussed at the October meetings. Mr. Gore reported that the University obtained interest rates that were more favorable than the parameters previously approved by the board. The refinancing will save the university more than $1.5 million. The committee also approved a procurement report. One item on the report was a contract for stop loss reinsurance for the university’s medical plan. The new stop loss reinsurance contract has more coverage and lower premiums than the previous year’s contract. Additionally, the committee awarded a contract to replace the boiler controls at the university’s Power House. 

B.    Mr. Frazier reviewed the December 11, 2019, Risk Management and Audit Committee meeting. Kim Hamm and Kyle Miller of BKD presented results of the independent audit for fiscal year 2019. BKD advised the university had a clean audit with no reportable matters related to alternative accounting treatment or auditor’s judgements about the quality of the entity’s accounting principles. There were no material weaknesses or significant deficiencies identified. The committee members discussed internal audit reports including the Division of Information Services’ Distributed Servers and a follow-up report on a previously conducted audit. All reports are publicly available on the internal auditor’s webpage. 

C.    Ms. Silvey discussed the Programs and Planning Committee meeting. An update on the Strategic Enrollment Management planning process was given. The committee then received an overview of the Darr College of Agriculture, highlighting the college’s enrollment, operations, and facilities. The committee also discussed a transformative gift from the Darr Family Foundation that will have a dramatic impact on the Darr College of Agriculture and Springfield Public Schools. A vote on the memorandum of understanding related to that gift will be voted on later in the meeting. 

D.    Ms. Counts discussed the Finance and Facilities Committee meeting. During the meeting, the committee reviewed the final terms of the bond issue and reviewed the procurement report that was approved as part of the consent agenda. An update on the IDEA Commons expansion projects was provided. The committee discussed a Letter of Intent that outlines the terms of a public-private partnership to complete the Jordan Valley Innovation Center project. The board will continue discussion of the Letter of Intent later in this meeting. A development report from the foundation was also provided that reviewed the October year-to-date financial statements. The committee also received an update on campus facility projects. 

7.    Presidents Report – 
A.    President Clif Smart welcomed everyone to the December commencement weekend.  He shared that on Friday, December 13, 2019, we will graduate 1,589 students in two ceremonies at JQH Arena. This total number of graduates includes 1,192 undergraduate and 397 graduate.
B.    President Smart then provided an update on compensation as the board has had a focus on compensation for faculty and staff. As part of the consent agenda, more than $400,000 in cost center funded equity adjustments were made for 125 employees. Additionally, $70,000 in increases were approved to bring 48 employees’ salaries up to comply with the new Fair Standard Labors Act (FLSA). These increases will be centrally funded. Earlier in the year, the state passed a new rule, increasing minimum wage annually by $.85. While this rule does not apply to Missouri State, the university raised the minimum wage rate for all part-time and student employees six months after the state implemented the rule. The administrative and academic teams decided that the university should make a similar increase January 1, 2020, by bringing the new minimum wage rate up to the state’s minimum of $9.45. These increases will be cost center funded. Main compensation discussions will happen in the spring as the university works through the executive budget process.

C.    President Smart shared a government relations update. General assembly will start a new session in January and the university will focus on two main legislative priorities. The first is to keep ongoing operating appropriations. Missouri State will also work with other universities to make a push for obtaining an inflationary core increase in funding for all public universities in the state. The second priority includes one-time capital funding. Missouri State will seek approval of its MoExcels proposal, a $1.8 million ask for the JVIC expansion to establish the Missouri Cybersecurity Center for Excellence. Additional asks include a matching capital appropriation for renovations to the Professional building ($5 million) and one for the Darr College of Agriculture ($6.5 million) expansion in conjunction with the gift received from the Darr Family Foundation. Lastly, the new Legislative Guide materials were distributed and reviewed.   

8.    Academic Affairs:
A.    Report from the Provost – Dr. Frank Einhellig, Provost, discussed academic leadership hiring updates and the importance the new hires have on the university. This year, the university has eight new department head positions across five colleges to fill. 

Dr. Einhellig commented on the hiring of new directors for dual credit and the Academic Advising Center. The Academic Advising Center will be renamed as the Academic Advising and Transfer Center. Additionally, another advisor will be hired to place focus on transfer students. He highlighted that the university has been strengthening advising across campus with the addition of five new advisors over the past year in several departments.

Dr. Einhellig then discussed the need for a 2+2 agreement between Missouri State and Ozarks Technical Community College (OTC). The decision to create the program came out of the joint administrators meeting with OTC. Missouri State has 35 programs where we have created similar pathways. Dr. Einhellig shared updates on ways to better serve transfer students. As it is a challenge for transfer students to receive academic honors under current requirements, the Faculty Senate approved the change to reduce the number of hours required from 60 hours to 50 hours. The scholarship program for transfer students has also changed. Highlights of the changes include an open-ended number of scholarships at $1,500 that are renewable for an additional year and a $2,500 excellence scholarship, all specific to transfer students. He shared that Missouri State continues to work on agreements with community colleges to make the transfer process easier for students.

Dr. Einhellig then discussed instructional offerings through online delivery. Online continues to grow and this semester, 17% of credit hours are being offered online. Over the past year, there has been a 5% growth in online credit hours, despite there being fewer credit hours overall at the university. The university continues to increase the number of online courses and sections and expand programs offered online.

B.    Comments - Mr. Gore took a moment to congratulate President Smart on his achievement of being named Biz 417’s Person of the Year. This is a deserved honor and a great recognition for Clif and Missouri State University. 

9.    Student Affairs:
A.    Report from the Student Body President – Mr. Abdillahi Dirie, Student Body President, highlighted efforts made by the Student Government Association (SGA) for the past semester. SGA held a Health and Wellness week that educated students on mental health and resources available to them and hosted a national walk with A21 to raise awareness of human trafficking. In October, students were invited to attend President Smart’s Diversity Council meeting to discuss a multicultural student center. After the initial discussion, SGA held a townhall meeting to solicit additional feedback and is in the process of creating an exploratory group of students who are interested in seeing the initiative through. To build relationships with other student leadership groups across the state, SGA created the Missouri State Coalition Group and have planned a day in February for schools to meet with legislators to address issues that college students face. Lastly, SGA is exploring additional resources to provide services to students regarding mental health.

B.    Commendation - Dr. Siscoe offered commendation for William Miller for his outstanding service as Student Governor for Missouri State University. Ms. Silvey moved the commendation, which was seconded by Ms. Miller Keltner.

Motion passed 7-0. 

10.    Staff Senate Report – Mr. Jimi Sode, Chair-elect of the Staff Senate, provided a report on happenings with Staff Senate. Mr. Sode thanked President Smart and the administrative team in advance for the upcoming holiday time off. Mr. Sode thanked Mr. Brent Dunn who facilitated the most recent leadership book series in which there were 33 participants. This spring, Staff Senate will work on establishing an outstanding supervisor award to recognize supervisors who are inspiring and supportive of staff members. Lastly, Staff Senate will also work with President Smart to establish a Staff Appreciate Week. 

11.    Financial – 
A.    Mr. Brent Dunn, Vice President for University Advancement, provided an update on the university’s Onward, Upward! capital campaign. The It’s On! event was held on October 26, 2019, at Juanita K. Hammons Hall for the Performing Arts. The facility was filled with over 2,200 seats and an additional 400 people in the lobby watching the event on monitors. The goal for the campaign is $250 million. At the end of November, the campaign had raised $158,891,962 and with the commitment from the Darr Family Foundation, is now just over $165 million. The timeline of the campaign was reviewed with the completion goal being set in the third or fourth quarter of 2022. Mr. Dunn reviewed the priorities of the campaign: increasing scholarships, faculty support, and capital and facility support. There are several other priorities that includes the renaming of JQH Arena and the naming of colleges, programs, and departments.  

Mr. Dunn shared the keys to success for the campaign. Efforts include the addition of texting solicitations, hosting a Giving Day in 2020, and holding planned giving seminars. Mr. Dunn stressed the importance of engaging in the campaign. The Foundation will host training sessions for faculty, staff, alumni, and Foundation Board. Lastly, a long-range plan will be created for the Foundation in 2020. 

B.    Mr. Dunn reviewed the resolution for approval of the gift agreement of $6.5 million to build a magnet school dedicated to agriculture education and a small animal education facility on the Darr Agriculture Center campus. The agreement was already approved by the Springfield Public Schools Board. Mr. Dunn then recommended approval of the agreement with William Darr, the Darr Family Foundation, and Springfield Public Schools (Agreement No. 434-19) that was previously discussed in the Programs and Planning Committee meeting. Mr. Frazier moved to approve the recommendation, receiving a second from Ms. Counts.

Motion passed 7-0.

12.    Marketing and Communications – President Smart called upon Ms. Stacey Funderburk, Director of Editorial and Design Services, and Ms. Nechell Bonds, Assistant Vice President and Director of Admissions, to provide a presentation on variable data marketing and the university’s virtual tour. Ms. Funderburk provided an overview of the new customized viewbook the university has created to connect more with future students. She discussed that Generation Z students appreciate and expect personalized communication. More than 60% of students want some version of print information and the new viewbook will be tailored to the specific student’s interest. Early returns on the effort show an increase in students visiting their personalized websites and/or the campus visit website. Additionally, over 1,900 students have converted to a new admission stage (applied, accepted, confirmed) since receiving their materials. Ms. Funderburk then reviewed the personalized viewbooks provided to the board members. 

Ms. Nechell Bonds provided an overview on the new online virtual tour that launched in November. She discussed that Generation Z students want interactive content. The virtual tour reaches students and families who may be unable to physically visit campus. It provides 360-degree photos and videos, clickable elements, and embedded videos. Ms. Bonds thanked those who collaborated on the project, including the support of Academic Affairs, Students Affairs, and SGA. Since the launch of the virtual tour, there have been 1,284 visitors, with 83 engagements averaging over seven minutes per visit, and a 23.1% increase in conversion rates of visitors requesting additional information. Ms. Bonds then provided a live demonstration of the virtual tour via the university’s website. The virtual tour cost $160,000 to complete and the university has the content for three years.

Mr. Gore called a ten-minute recess of the meeting. 

13.    Old Business – IDEA Commons Update and Discussion of Letter of Intent - Ms. Rachael Dockery, General Counsel and Chief Compliance Office, provided an update to the IDEA Commons project which includes renovations of JVIC building IV, construction of an office building, and construction of a parking garage. Over the past two years, Missouri State University has worked with The Vecino Group, LLC (Vecino) on the feasibility and plans to expand IDEA Commons through a three-stage process. The letter was previously discussed in the Finance and Facilities Committee meeting and reviewed by the board over the lunch hour.  

Ms. Dockery reviewed the terms outlined in the letter of intent to move forward with the expansion of JVIC IV with Vecino. Per the letter, Vecino will remove the existing structure on the property, build a 30,000 square foot building, meeting University aesthetic and infrastructure requirements, and the total project is not to exceed $14.4 million dollars. The letter also outlines the leasing commitment terms and potential for the University to purchase the building after seven years. 

Ms. Dockery then recommended the approval of a letter of intent with The Vecino Group, LLC for the expansion of the Jordan Valley Innovation Center (Agreement No. 435-19). Ms. Silvey moved to approve the recommendation, receiving a second from Mr. Frazier.

Motion passed 7-0.

14.    New Business:
A.    Key Performance Indicators – Dr. Einhellig provided an overview and update on the key performance indicators (KPIs) set by the state for the Springfield campus. In October the Springfield campus reported data that showed the institution passed all state performance measures.  The threshold for passing the first measure, completions per student FTE, is 25% and Missouri State reported 33.9%. Passing the second performance measure required students taking licensure exams to pass at the rate of 90% or above. The ten health-care programs where licensure pass rates are utilized had pass rates of 100%. The third measure focuses on student placement after graduation.  Passing this performance measure is achieved by having a knowledge rate above 60% and employment or further education placement above 75%. For 2018 Missouri State graduate (undergraduate only) outcomes exceeded these benchmarks with 92% knowledge rate and 83% placement. Missouri State’s core academic expenditures as a percent of total expenditures was 68.2% which exceeded the minimum threshold.  The other two state performance measures are passed when the institutions change in salary expenditures and change in tuition/fee revenue are less that the percent increase in the Median Household Income.  In both cases the percentage change for these variables at Missouri State was below the change in the benchmark Median Household Income.  
President Smart added that only half of the four-year schools met all measures. Historically, Missouri State is only one of two schools who has met all measures since they were implemented, even with changes in measures. He shared that although the Springfield campus continues to meet the performance funding measures, the last time performance funding was received from the state was in 2016. 

Dr. Einhellig then provided an update on the status of long-range plan goals.  The 2016-21 long-range plan projected that the number of students that completed a degree would increase. The associated goal set for degree completion was that by 2021 the annual number of graduates would be at least 4,900.  Since this goal was achieved early with 4,935 students completing a program in FY2017, a new goal of 5,200 was established. Recently, certificate programs have increased in popularity as evidence of academic achievement. In FY2019 Missouri State had 5,490 completions of either a degree or a certificate.  Certificates accounted for 470 (8.6%) of this number.  

Dr. Einhellig then shared that retention and graduation rates are coupled outcomes, and the starting point for retention is the goal of moving first-time, full-time students on to a second year in college.  When the long-range plan was implemented, a retention goal for first time students was set at 82%.  Over the past six years, retention has ranged between 75% and 79%. The fall 2018 to fall 2019 retention rate was 78%. When compared to other nearby universities, Missouri State’s rate for the 2018-19 cohort is below the most recent data for the University of Missouri (87%) and the University of Arkansas (84%), but above the retention reported for Arkansas State (73%), University of Central Arkansas (74%) and the University of Arkansas-Little Rock (68%).

MSU set a retention goal of 79% for Pell-Eligible, first generation, Hispanic/Latino, African American, and those self-identifying as two or more races.  The present fall term retention for these students ranged from 66% for Hispanic/Latino to 74% for African Americans as well as those of two or more races. The year-to-year retention data illustrates considerable variation for each category, and consistent trends are not evident. Efforts to improve retention rates include, but are not limited to, proactive and expanded advising, creating focused interaction locations, and revising math pathways.

The six-year graduation rate for students starting at Missouri State as first-time, full-time students moved slightly upward to 55.9% for the 2013-19 cohort, this rate was still short of the 57% goal. Using this measure of student success for this same 2013-19 cohort, Missouri State’s rate (55.9%) was below that of the most recent data (2018) for the University of Missouri (69%) and the University of Arkansas (66%). Missouri State is substantially higher, however, than six-year graduation rates of Arkansas State (47%), University of Central Arkansas (41%) and the University of Arkansas-Little Rock (35%). Prior to the current long-range plan, the six-year graduation rates for students who were either Pell-eligible, first generation, Hispanic/Latino, African American, or two or more races were significantly lower than the graduation rates of the overall student population. A target graduation goal of 50% was established for each of these categories of entering freshman.  This goal has not yet been achieved and both graduation and retention data for these several student groups show considerable year-to-year variation.

Lastly, Dr. Einhellig shared that the percentage of faculty and staff from historically underrepresented and international groups increased from 10.6% in 2013 to 15% in fall 2019. This steady progression resulted in the initial goal of 14% diversity in full-time employees being achieved in 2017, and the target goal was then reset at 16%.  

Dr. Dennis Lancaster, Dean of Academic Affairs - West Plains, provided an update on the state performance funding measures and KPIs for the West Plains campus. The West Plains campus utilizes six Performance Funding Measures (PFM), the same six used by the state’s community colleges as established by the Missouri Department of Higher Education and Workforce Development (MDHEWD). Currently, data exist for five measures. Data and results for the sixth measure, Graduate Outcomes, is expected from MDHEWD in the coming weeks. Of the six KPIs, three show improvement – enrollment, retention, and graduation/transfer rates. Of the other three, two – native transfers to Missouri State-Springfield and number of degrees/certificates awarded – did not improve, and one, full-time faculty and staff diversity, had mixed results.

Student Enrollment at the West Plains campus had a 4.3% or an 82-student increase in fall census day enrollment during the current fall semester over last year’s fall semester. However, the trend of students taking fewer credit hours continued, as indicated in the annual FTE totals for the past four years. The campus’ highest FTE was in 2010 at 1,586 students.

Dr. Lancaster shared that full-time, first-time retention rose this year after being down the previous year. The rate for those full-time students who started in Fall 2018 and returned in Fall 2019 was 55.7%, a 5.1% increase over the previous year. The rate is still below the 60% long-range plan goal, which was reached in 2016-17 but followed by a 10% drop the following year. Dr. Lancaster mentioned that the increase this past year may be attributed to earlier and greater student intervention prompted by the Grizzly Guard Alert system and using focused advising activity by the West Plains staff advising team and full-time faculty advisors. Other strategies have also been engaged over this past year, to keep students in their classes and on target toward completion.

Dr. Lancaster reported that the most encouraging change in the KPIs is in the graduation and transfer rate, which increased substantially from the previous year. Of those in the 2015-2018 cohort, 46.4% graduated or transferred to another institution, 8.8% over the previous year. The increase in the combined rate came from both the graduation side, moving from 20.5% to 24.9%, and from the transfer side, which increased from 16.2% to 17%. This is the highest graduation and transfer rate experienced by the campus since 2008 when the rate was 57%. With a 2.7% increase in the 2016-2019 cohort graduation rate already achieved, West Plains expects to soon report an even better combined graduation/transfer rate for this cohort when the transfer rate is ultimately determined by the National Clearinghouse.  

The number of native students transferring from the West Plains campus to the Springfield campus dropped this past year, moving from 134 who transferred the previous year to 104 this past academic year. West Plains continues to work with Springfield colleagues on recruitment strategies, articulation agreements to better ensure transferability, and ongoing retention strategies to keep West Plains students in the pipeline toward a bachelor’s degree on the Springfield campus.  

Dr. Lancaster stated that the number of degrees and certificate completed by Missouri State-West Plains students decreased substantially, going from a five-year high of 277 the previous year to 249 during this past academic year. He shared that this may be due to the lower enrollments during the past few years. The West Plains campus expects these numbers to stabilize in the next year or two, particularly due to increased promotion of certificates as students are moving toward their associate degree.  

Lastly, Dr. Lancaster commented that increasing the diversity of the full-time employee pool remains a key goal of the West Plains campus. However, the campus still struggles with attracting diverse candidates for open positions. Over the past year, the percentage of under-represented full-time faculty increased from 10.5% to 13.9% while staff percentage decreased from 9.2% to 5.8%. Because of the smaller number of employees on the West Plains campus, this adversely affected the total employee diversity percentage, which moved from 9.6% to 8.2%. 

B.    Approval of the 2020 Executive Committee to the Board of Governors - Mr. Gore called upon Mr. Craig Frazier, Vice Chare of the Board of Governors, to announce the appointments to the Board of Governors’ committees. Mr. Frazier made a motion to approve the 2020 Executive Committee as Mr. Craig Frazier, Chair; Ms. Amy Counts; Mr. Gabriel Gore; and Ms. Miller Keltner. Ms. Carol Silvey seconded the motion.

Motion passed 7-0.

C.    Announcement of Board Committee Appointments - Mr. Frazier then announced the appointments to the other 2020 Board of Governors’ committees. The Risk Management and Audit Committee is comprised of Ms. Amy Counts, Chair; Mr. Craig Frazier (ex-efficio); Ms. Carol Silvey; and Ms. Carrie Tergin. The Finance and Facilities Committee is comprised of Ms. Carrie Tergin, Chair, and all members of the Board of Governors. The Programs and Planning Committee is comprised of Ms. Carol Silvey, Chair, and all members of the Board of Governors. The Board representative to the Missouri State University Foundation is Ms. Beverly Miller.  

14.        Date of Next Meeting – The date of the next scheduled meeting was set for Friday, February 21, 2020, at 1 p.m. on the Springfield Campus.

15.        Adjournment – Mr. Gore adjourned the meeting at 4:04 p.m., on the motion of Mr. Spears, the second of Mr. Frazier, and the unanimous vote of the Board.

Rowena Stone
Secretary to the Board