December 16, 2005

December 16, 2005

1. Roll Call
Present- 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
Mr. John Winston, Governor

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 and Economic Development
Don Aripoli, Vice President for Student Affairs
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 of Missouri State University. He called the meeting to order at 9:05 a.m. in the Traywick Parliamentary Room in the Plaster Student Union on the campus of Missouri State University in Springfield, Missouri. He welcomed the newest addition to the Board, Mr. John Winston of St. Louis.

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 and closed regular meetings of Missouri State University held on November 18, 2005. Ms. Sheid moved to approve the minutes as presented. Mr. Duggan seconded the motion.

Motion passed 4-0-1 (Mr. Winston abstaining).

4. Report from the President --- Dr. Michael Nietzel first commented that he wanted to thank Mr. Jim Buford for being such a good board member the short time he was on the Board. He explained that Mr. Buford has taken a position on the St. Louis Board of Education and because of conflicts of interest involved in that appointment he had to resign from this Board.

He then mentioned that the salary increases, effective January 1, 2006, which were the result of the one-percent reallocation exercise, will be presented for the Board's approval later in today's meeting. The compensation committee recommended that these salary increases be on the basis of equity and/or external market. About 42% of our full-time employees, 829 in total, received some increase in their salary.

Dr. Nietzel next reported that we had a successful ground breaking for the Jordan Valley Innovation Center on November 29, 2005. Congressman Roy Blunt was the featured speaker. We are confident that the Department of Defense budget, including a significant appropriation for the university, will be passed. Because of this, we plan on moving forward with the awarding of the bid. This will be explained later in today's meeting.

Regarding the 2006 session of the Missouri General Assembly, Dr. Nietzel stated that our main priority is to maintain our current appropriation – we are very concerned that we are preparing 10% to 12% budget cut scenarios. This would be approximately $8 million to $9.6 million. Because of this, he sent a campus-wide memo indicating the need to freeze 25% of all vacant positions. We are also going to ask for the restoration of funds to bring us back to the funding level we enjoyed in 1999. We will also ask for support to begin a cooperative engineering program with the University of Missouri-Rolla, to support the Missouri Virtual School, and to provide operating funds for the Jordan Valley Innovation Center. Our capital request will be to fund FREUP – our Facilities Reutilization Plan.

He next presented a resolution (Administration No. 6-05) changing the reporting relationship of the Director of Athletics. He has been reporting to the Vice President for University Advancement and this resolution has the Director of Athletics reporting directly to the President of the University. He added that this will free up Mr. Greg Onstot, who has done a fine job overseeing athletics, to concentrate on developing the alumni association and fund raising. Moved by Ms. Sheid and seconded by Ms. Washington.

Motion passed 5-0.

Dr. Nietzel then presented a resolution (Student Policies No. 85-05) recommending the elimination of five intercollegiate athletics programs – Men's Indoor and Outdoor Track, Men's Cross Country, Men's Tennis, and Women's Tennis. He remarked that on his first day in taking office at the University, July 1, 2005, he announced that he would appoint an Intercollegiate Athletics Priority Committee to look at the scope of our athletics programs. The composition of the committee was the Intercollegiate Athletics leadership, General Counsel, Equal Opportunity Officer, Chief Financial Officer, two faculty representatives, and one community representative. There were four criteria that the committee was to consider in evaluating the 21 individual programs: 1) how athletically successful; 2) how academically successful; 3) what is the level of support and integration into the university and the community; and 4) how do they do budget wise and their affordability. He stated that the five sports recommended to be cut were the five lowest ranked programs based on the methodology used by the committee. Our 21 individual sports are more than any other member of the Missouri Valley Conference. Almost all universities have cut sports at some time in the past few years. The University has to transfer $5.1 million annually to athletics to sustain it. He explained that this year, the university had to increase its subsidy to the athletics program by an additional $600,000 due to the increase in student fees. This was $600,000 that we did not have available for scholarships for needy students, for health care, for salaries for faculty and staff, for necessary repairs to our buildings. If the university's appropriation is cut, athletics will still be faced with a funding problem even with these cuts. The committee tried to save the most dollars and affect the fewest number of students. All athletes who are affected by these cuts will be able to retain their scholarships. He also addressed the criticisms that the sports selected affect disproportionately minority students. Of the 41 students affected by these proposed cuts, smaller percentages are African Americans and all minorities than for all student athletes. He indicated that it would take a $7.5 million to $8 million endowment to fund what will be saved from these cuts. If this amount of an endowment is raised, he would recommend the decision be reconsidered. We need to be resourceful with the dollars we have. We should be affordable for the students who do come here. We need to have a sense of proportion about the role of athletics. Priorities should be for teaching, research, service, scholarships based on need or achievement, good compensation, good health care benefits, an attractive and safe campus, and a range of student activities that we can afford.

Mr. Franks then commented that there were several individuals who have requested to address the Board. The first speaker on behalf of men's track/cross country was Mr. Richard Clark, former track/cross country coach. Mr. Clark first commented that Dr. Nietzel just gave a great speech. He remarked that Dr. Nietzel gave us an avenue to save our program. He added that we need an avenue between the "running" community and the university. He stated that he had confidence in the President and the Board. He added that the running community will be supportive.

Rev. Larry Maddox, President of the Springfield chapter of the NAACP, next addressed the Board and stated he was set on trying to keep these programs intact. He remarked that cutting these programs consists of eliminating diversity on the campus. He said that his definition of minority includes all of the ethnic groups as well as women and this is why the minority percentages he has used are higher than the percentages used by Dr. Nietzel. He questioned how you could tell students you are interested in the increase of diversity when you want to eliminate these sports. He added that the Board should consider cutting a small amount in a variety of places that would allow these athletes to compete and obtain an education. He finished his address by indicating that the Springfield branch of the NAACP has already contacted the NAACP Missouri State President and the NAACP Regional Director and they are supportive in our stand that the university needs to find another way to solve this fiscal problem.

Mr. Matt Wegenka, alum and former track athlete and letterman, next remarked that the university has used the word "family" in discussing the intercollegiate athletics program. He commented that a family does not get rid of a brother or a sister in tough times. He also distributed an economic impact study of these five minor sports that was prepared by Dr. Larry Cox showing that this impact is $1.5 million annually to Springfield.

Mr. Franks next reported that there were four individual speakers in support of the men's tennis program. Mr. Paul Nahon, Jr., alum and former tennis letterman, spoke first and asked that the Board take more time before a decision is made and seek more input from Missouri State students, the community, and the taxpayers.

Mr. Mike Mellinger next commented that he is a member of a tennis family. He stated that tennis is one of the few sports that three generations of the same family can play together and you can play tennis for the rest of your life.

Mr. Shawn Kimball, alum, former MSU tennis athlete, high school teacher and tennis coach, remarked that we have had several international students on our tennis teams that increase cultural awareness. He also commented that area youth suffer if tennis at the university is dropped.

Mr. Doug Elly, former MSU tennis athlete, next recommended that the Board spend more time evaluating all of the issues before they make their decision.

Mr. Franks next introduced Coach Jim Giachino, Women's Tennis Coach. Coach Giachino indicated that he is very aware that something has to be done. He commented that he thinks a solution can be found if we are given time. He thinks some other coaches in the department would have come forward with some funding assistance if they knew it would save other sports from being cut. He finished his talk by asking that Dr. Nietzel and the Board take more time before making this decision.

Mr. Franks asked if any other coaches might like to make a statement. Coach Ron Boyce, Men's and Women's Track Coach, remarked that it's going to take the support of friends of the athletics programs for us to come back. He also said he did not see this decision as a black-white issue.

Mr. Franks then commented that there is nothing wrong with any of these teams. He remarked that the University has been dealing with a growing budget problem over the last several years. This University is a victim of success – we have grown in quality and size for twenty years and have not had the support from the State that it needs. Decisions have to be made. There is a chance of a budget cut next year anywhere from $7-10 million. Regarding Dr. Nietzel's comments about receiving an endowment to fund these programs, Mr. Franks remarked that the Board would support this. He also added that the University will make sure the Development Office will work with supporters of these programs to try to make that happen. Mr. Franks then asked if there was a motion regarding the resolution presented by Dr. Nietzel. Motion was made by Mr. Duggan and seconded by Ms. Sheid. Mr. Duggan then commented that he has experienced this situation personally when his son was a member of the wrestling team at Missouri State when it was dropped. He added that the Board probably waited too long on this issue and should not have dropped it in Dr. Nietzel's lap as a new president. He also stated that there are no racial implications in today's proposal and if he thought there were, he would not vote for it. Ms. Sheid indicated that this has been one of the most difficult things that the Board has had to deal with. She added that the Board would be open to resuming these programs if a solution is found that has finances that support it. Ms. Washington commented that the Board does not take this decision lightly. She also remarked that if she ever thought race was a part of this issue, she would be the first to contact Dr. Nietzel. Mr. Sivill next commented that some of the values that one receives from playing sports are life lessons that are nearly as important as any education that they receive here.

Motion passed 5-0.

5. Educational:
a. Faculty Senate Report --- Dr. Art Spisak, Chairperson for the Faculty Senate, introduced Mr. Edward DeLong, chair of the Honorary Doctorate Degree Committee, who presented a resolution (Awards No. 15-05) approving the degree of Doctor of Public Affairs (D. P.A.) to be granted to Mrs. Patricia White Walker at the May 2006 commencement ceremony. She has devoted almost a half-century to improving peoples' lives in the Ozarks. Motion made by Ms. Sheid and seconded by Ms. Washington.

Motion passed 5-0.

b. Report from the Acting Provost --- Dr. Frank Einhellig, Acting Provost, presented a resolution (Fees No. 123-05) establishing that the tuition paid to the Child Development Center by full-time employees of the Center that remain full-time be reduced by 50%. Motion made by Ms. Washington with the second provided by Ms. Sheid.

Motion passed 5-0.

6. Report from Vice President for Research & Economic Development --- Dr. Jim Baker, Vice President for Research & Economic Development, presented a resolution (Agreement No. 171-05) approving a Memorandum of Understanding between the Board of Governors and the United States Geological Survey, Mid-Continent Geographic Science Center, Rolla, Missouri. Motion made by Ms. Sheid and seconded by Ms. Washington.

Motion passed 5-0.

7. Report from the West Plains Campus --- Mr. Kent Thomas, Chancellor of the West Plains Campus, distributed a draft copy of the West Plains Campus' Long-Range Plan for the Board's review. He asked for comments from the Board by the end of January – the final copy will be presented to the Board for its approval in March. He then presented the following resolutions for the Board's consideration:

Approval of the Building Report dated December 2, 2005 for the West Plains Campus (West Plains Campus Building Report No. 98-05).

Approval of actions concerning academic employees of the West Plains Campus (West Plains Personnel No. 245-05).

Approval of actions concerning non-academic employees of the West Plains Campus (West Plains Personnel No. 246-05).

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

Motion passed 5-0.

8. Student Affairs:
a. Report from Student Body President --- Mr. Mike Barnett, President of the Student Body, reported that Student Government supports the resolution to be presented later today naming a consultant for a feasibility study for a Student Recreation Center.

b. Report from Vice President for Student Affairs--- Dr. Don Aripoli, Vice President for Student Affairs, reported that we have added some additional options to the admissions criteria for Fall 2006 – in addition to the core curriculum and a selection index of 108 or a 24 ACT, we are adding a 3.5 grade point average or a top 25% of class.

He then presented the following resolutions:

Approving an enhanced out-of-state fee waiver program (Fees No. 124-05).

Approving enhancements to the Continue the Tradition Fee Waiver program (Fees No. 125-05).

Motion made by Ms. Sheid with the second being provided by Mr. Duggan.

Motion passed 5-0.

9. Staff Senate --- Mr. Ben Boslaugh, Chairperson-elect of the Staff Senate, reported the Health Care Town Hall meeting held on December 9th by President Nietzel was an excellent idea and very fruitful for fostering ideas and helping with our health care insurance issues on campus.

10. Finance:
a. Development Report --- Mr. Greg Onstot, Vice President for University Advancement, reported on gifts received through the first five months of the fiscal year (November 30, 2005). We had an excellent November and, for the year, we are up about $1.2 million when compared to last year.

He then presented a resolution (Agreement No. 172-05) approving an amended license agreement to lease Hammons Field for Missouri State University baseball games and practices. He explained that this amendment lowers the lease payment from $225,000 and about $10,000 for the practice facility to $150,000 plus 25% of ticket sales over $150,000 and $25,000 for the practice facility.

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

Motion passed 5-0.

b. Purchases & Contracts --- Ms. Brenda Lanning, Director of Procurement Services, presented the following resolutions for the Board's consideration:

Purchases exceeding $100,000 from November 18, 2005 through December 2, 2005 (Purchasing Activity Report No. 275-05).

Purchases exceeding $100,000 from December 2, 2005 through December 15, 2005 (Purchasing Activity Report No. 276-05).

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

Motion passed 5-0.

Mr. Greg Burris, Vice President for Administrative and Information Services, then presented the following resolutions:

Approval of Irrevocable Consent to Dedicate Right-of-Way at the Jordan Valley Innovation Center with a corrected site description (Land No. 86-05).

Approval of warranty deed (corrected) for 2344 South Scenic Avenue, Springfield, MO (Land No. 87-05).

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

Motion passed 5-0.

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

Approving the Activity Report for the month of November 2005 (Activity Report No. 156-05).

Professional services in conjunction with a feasibility study for a student recreation center (Architects & Engineers No. 613-05); Hastings + Chivetta, on an hourly rate with a not-to-exceed limit of $70,000 plus reimbursable expenses. Additional services of up to $10,000 as described in this agreement may be authorized and approved as necessary.

Approval of the third renewal of the contract for inside plant telecommunications wiring (Bids & Quotations No. 1165-05); M-Square Construction Company, Inc., for calendar year 2006 with a 12% increase over the original contract pricing as previously bid.

Approval of the first renewal of the contract for outside plant telecommunications wiring (Bids & Quotations No. 1166-05); A-1 Electric Service, Inc., from November 1, 2005 through October 31, 2006 with a 2.5% increase over the original contract pricing as previously bid.

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

Motion passed 5-0.

To keep the Board fully informed, we do intend to award the contract for the construction of the Jordan Valley Innovation Center project. The University has already received $7.6 million in federal funding. We remain very confident that based upon comments by Congressman Roy Blunt we will be receiving the remaining federal funds (about $4.2 million) from the 2006 Defense appropriation. Mr. Franks mentioned that since we will be committed for the entire construction project when we do this, he has talked with the university administration about a back-up plan. This would entail university reserves in the short term and possible bonding in the long term.

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

Actions concerning academic employees (Human Resources No. 1191-05).

Actions concerning nonacademic employees (Human Resources No. 1192-05).

Approval of the one percent reallocation midyear salary adjustments (Human Resources No. 1193-05).

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

Motion passed 5-0.

Mr. Franks mentioned that we will probably be changing the date of the March 3, 2006 meeting back to March 10, 2006. He ended his comments by stating that once we have a full board, we need to think about another board retreat in the late Spring or early Summer. He asked that the Board members provide possible date options to Mr. McAlear.

13. Date of Next Meeting --- The date of the next scheduled meeting is March 10, 2006 on the West Plains Campus.

14. Adjournment --- Mr. Franks adjourned the meeting at 11:35 a.m. on the motion of Mr. Duggan, the second of Ms. Washington, and the unanimous vote of the Board.

John W. McAlear