December 16, 2015

DECEMBER 16, 2015

1. Roll Call:
Mr. Joe Carmichael, Governor
Ms. Virginia Fry, Governor (by conference call)
Mr. Stephen B. Hoven, Chair of the Board (by conference call)

Dr. Peter Hofherr, Vice Chair of the Board

Also Present:
Mr. Clif Smart, President
Ms. Beverly Miller, Governor (by conference call)
Ms. Carrie Tergin, Governor (by conference call)
Mr. Steve Foucart, Chief Financial Officer
Ms. Donna Christian, Director of Internal Audit & Compliance
Ms. Rachael Dockery, General Counsel
Mr. Ryan DeBoef, Chief of Staff
Dr. Drew Bennett, Chancellor of the West Plains Campus (by conference call)
Dr. Frank Einhellig, Provost
Ms. Tina McManus, Controller
Mr. Matt Morris, Vice President for Administrative Services
Mr. Tom Peters, Dean of Library Services
Mr. Ed Choate, Director of Human Resources
Ms. Julie Dubinsky, Associate Director of Human Resources
Mr. David Yurchak, Senior Buyer, Procurement Services
Dr. David Muegge, Director of the Taylor Health and Wellness Center
Mr. Steve Robinette, Associate Vice President for International Programs
Mr. John W. McAlear, Secretary of the Board

2. Presiding – Mr. Stephen B. Hoven, Chair of the Board of Governors, called the Executive Committee conference-call meeting to order at 4:00 p.m. in Room 203 of Carrington Hall on the campus of Missouri State University in Springfield, Missouri.

3. Approval of Minutes – Mr. Hoven mentioned that the first item of business was the approval of the minutes for the open meeting of November 18, 2015. Mr. Carmichael so moved, receiving the second of Ms. Fry.

Motion passed 3-0.

4. West Plains Campus --- Dr. Drew Bennett, Chancellor of the West Plains Campus, presented the following resolutions for the Committee’s consideration:

Approval of a new academic program for the Certificate in Health Information Technology – Electronic Health Records Specialist (West Plains Curriculum No. 74-15).

Approval of a new academic program for the Certificate in Health Information Technology – Medical Administrative Office Assistant (West Plains Curriculum No. 75-15).

Dr. Bennett explained that these two Certificate programs could stack well with the Certificate in Billing and Coding Program (already in existence) and students could apply all three certificates toward an AAS in Health Information Technology degree.

Moved by Ms. Fry and seconded by Mr. Carmichael.

Motion passed 3-0.

5. Procurement and Financial --- Mr. Steve Foucart, Chief Financial Officer, presented a resolution (Purchasing Activity Report No. 430-15) summarizing Procurement Services’ activities from November 10, 2015, through December 10, 2015. Mr. Foucart summarized the six items included in the report needing board approval:

  • The University utilizes Xerox Educational Services for the Perkins Loan Administration. This contract was previously bid and the contract is expiring. In September, the Federal Government ended the Perkins program for new borrowers. It would be impractical to bid this contract since the program has ended and will be winding down. Approval is requested for one year plus up-to-four renewals, which corresponds to the remaining time the Federal Government will allow grandfathered Perkins loans, at an estimated annual expense of $25,000.
  • Meyer Library utilizes Elsevier B. V. for access to electronic journals. By working directly with the publisher, we have achieved reduced costs. Approval is requested to award Elsevier B. V. this contract for the Science Direct Collections in the amount of $241,457.65 for calendar year 2016.
  • The third and fourth items will be grouped together. The University bid the Third Party Administrative (TPA) Services contract and the Self-Insured PPO Network Access four years ago and we have completed the initial three-year contract term on both contracts. The contracts provide for four one-year renewal options. Both Med-Pay, our TPA, and Mercy Health Springfield Communities, our PPO, have agreed to lock in a zero escalation if we exercise the four remaining renewal options (the original Mercy contract included an annual escalation rate of 3%). In addition, an MSU internal audit recently discovered a situation in which only a 3% reduction in the cost of a surgical implant was allowed. Mercy agreed to reimburse the University at 50% for this particular claim (approximately $40,000). To ensure that this occurrence does not happen again, Mercy and the University have agreed that discount rates established under the original contract shall continue to apply, but in no instance shall the discount for outpatient surgery be less than 50%. Approval is requested to exercise the four one-year renewals with both Med-Pay (total estimated annual cost of $343,032 for TPA services and $58,128 for dental health network access) and Mercy (funding future claims submitted).
  • The University requires international students to have proof of insurance, typically through a government-sponsored program, or they are enrolled in the University’s offered plan. This provides financial security for our international students should an unforeseen major health issue arise while attending the University. We previously provided an option for domestic students but this was discontinued due to only minimal participation by domestic students and the cost being prohibitive. Taylor Health and Wellness Center does provide assistance to any domestic student seeking a health insurance policy. Discontinuing domestic students brought about a reduction in the premium rates for international students. Today’s action is exercising the first of four renewal options. The enrolled students pay the entire insurance premium. Approval is requested to exercise the first renewal option with Academic Health Plans.
  • The University requests approval to exercise years 4 and 5 (fiscal years 2016 and 2017) with BKD for audit and related accounting services. We will work with BKD to reduce the estimated two-year cost of $416,559. These services will be bid in January 2018 for fiscal year 2018.

Mr. Foucart next recognized two employees: 1) David Yurchak, senior buyer, is responsible for the University’s large-dollar RFP contracts. He has led the effort in some of our major contracts that have benefited the University, for example, Coke and Chartwells. He was also instrumental in the favorable renewal terms on the Med-Pay and Mercy extensions. 2) Tina McManus, Controller, coordinates the University’s annual audit and prepares all the Broadcast Service work papers. This has led to reduced costs from BKD’s original proposals for years 1-3 and should assist in minimizing costs for the last two years of the contract.

After a short discussion, Mr. Carmichael offered a motion to approve. Ms. Fry seconded the motion.

Motion passed 3-0.

With the result of the student vote to self-assess a $29-per-semester fee for a new health and wellness center and the Board’s approval for a consultant for professional services for the development of the new center, Mr. Foucart next presented a resolution (Finance No. 1052-15) for the Declaration of Official Intent toward the Issuance of Auxiliary Enterprise System Revenue Bonds, and Reimbursement of Expenditures for Auxiliary Enterprise Facilities. Our intent is to issue bonds after the Board approves a construction bid for the project (estimated to be in October 2016). This resolution does not commit the University to the project but provides the ability to reimburse costs from a potential bond issue in conformance with tax-exempt bond requirements. Mr. Foucart added that this resolution was prepared with the assistance of bond counsel, Gilmore & Bell. He added that Edward Jones, our previous bond underwriter, has decided to exit the underwriting business. Mr. Foucart indicated that he has had discussions with the key underwriters for public higher education and an RFP is being prepared to be issued in January. A discussion was then held regarding the temporary location of the current health center while the present structure is torn down and a new structure in built in the same location. President Smart indicated that it looks like the best option is to use the first floor of the Monroe Apartments. This facility is nearby and the lost revenue from about 20-30 beds is considerably less than what the rent expense would be in a different location.

Moved and seconded, respectively, by Ms. Fry and Mr. Carmichael.

Motion passed 3-0.

6. Unfinished Business --- President Smart commented that we had a great planning meeting today to address some of the diversity concerns of the student speakers at the Board’s December 11, 2015, meeting. These will be shared with the Board in early January.

7. Adjournment — Mr. Hoven adjourned the conference-call meeting at 4:35 p.m. on the motion of Mr. Carmichael, the second of Ms. Fry, and the unanimous approval of the committee.

John W. McAlear
Secretary of the Board