July 22, 2005

JULY 22, 2005

1. Roll Call
Present- Mr. Thomas Carlson, Governor
Mr. Michael Duggan, Governor (by conference call)
Mr. Gordon Elliott, Governor
Mr. Michael Franks, President of the Board
Ms. Carol Pinegar, Governor
Ms. Mary Sheid, Vice President of the Board
Mr. Ryan Sivill, Student Governor
Ms. Phyllis Washington, Governor

Present- Michael Nietzel, President
Kent Thomas, Chancellor of the West Plains Campus
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, President of the Board of Governors. He called the meeting to order at 9:00 a.m. in the Traywick Parliamentary Room in the Plaster Student Union on the campus of Southwest Missouri State University in Springfield, Missouri.

Mr. Franks first mentioned that the Board would like to extend its warm and gracious welcome to the ninth President of Southwest Missouri State University, Dr. Michael Nietzel. Dr. Nietzel remarked that he was pleased to have this terrific opportunity, personally and professionally.

3. West Plains Campus:
a. Report from the West Plains Campus --- Mr. Kent Thomas, Chancellor of the West Plains Campus, first reported that we have received permission from the accrediting association to proceed with our respiratory therapy program. He then presented the following resolutions for the Board's consideration:

Approval of revisions to the SMSU-West Plains Faculty Handbook, concerning sections 2.0 through 2.5.4 (West Plains Faculty Policies No. 5-05).

Approval of the Activity Report for the month of June, 2005 for the West Plains Campus (West Plains Campus Activity Report No. 53-05).

Approval of the Building Report dated July 7, 2005 for the West Plains Campus (West Plains Campus Building Report No. 94-05).

Approval of the Purchasing Activity Report for the month of June, 2005 (West Plains Purchasing Activity Report No. 22-05). This report includes a contract to sublease 16 Parkway Shopping Center for office/classroom space for the Respiratory therapy program. The contract period is August 1, 2005 through April 30, 2006.

Architectural services in conjunction with providing services on an "On-Call" basis (West Plains Campus Architects & Engineers No. 56-05); Brackett-Krennerich-Cooper Architects, PLLC on an hourly basis with a not-to-exceed period of one year or an amount of $20,000 plus reimbursable expenses.

Approval of contract for the purchase of property located at 304 Garfield Avenue, West Plains, Missouri (West Plains Land Purchase No. 20-05). The purchase price of this 1,800 square feet is $160,000 and the closing date is August 1, 2006 to allow the owner sufficient time to construct a new facility.

Approval of actions concerning academic employees of the West Plains Campus (West Plains Personnel No. 238-05).

Approval of actions concerning non-academic employees of the West Plains Campus (West Plains Personnel No. 239-05).

Moved by Ms. Sheid. Seconded by Mr. Elliott.

Motion passed 7-0.

4. Financial:
a. Purchases & Contracts --- Mr. Kent Kay, Chief Financial Officer, presented the following resolution for the Board's consideration:

Purchases exceeding $100,000 from June 17, 2005 through July 8, 2005 (Purchasing Activity Report No. 267-05).

Purchases exceeding $100,000 from July 9, 2005 through July 21, 2005 (Purchasing Activity Report No. 268-05).

Moved by Mr. Carlson. Seconded by Mr. Duggan.

Motion passed 7-0.

General Fred Marty, Associate Vice President for Administrative Services, next presented the following resolutions for the Board's consideration:

Memorandum of Understanding between SMSU and the Ozarks Transportation Organization to further transportation planning and coordination in the Springfield metropolitan area (Agreement No. 160-05).

Approval of a parking lot lease agreement with Christ Episcopal Church in Springfield, Missouri (Agreement No. 161-05).

Approval to submit a grant application and to execute a grant agreement with Missouri Department of Transportation for transportation system enhancements (Federal No. 78-05).

Moved by Ms. Sheid and seconded by Ms. Washington.

Motion passed 7-0.

5. Facilities and Equipment --- General Fred Marty then presented the following resolutions for the Board's consideration:

Approving the Activity Report for the month of June 2005 (Activity Report No. 151-05).

The William H. Darr Agricultural Center Phase II improvements (Bids & Quotations No. 1158-05); Flintco Incorporated, low bid of $2,565,400 for the base bid plus alternates one through seven; total project budget set at $3,200,000.

Construction materials testing services in conjunction with the William H. Darr Agricultural Center Phase II improvements (Architects & Engineers No. 611-05); Palmerton & Parrish, Inc., for $7,920 plus reimbursable expenses. Additional services of up to $2,500 as described in this agreement may be authorized and approved as necessary.

Approval to increase the budget for additional professional services in conjunction with the renovation of the Jim D. Morris Center for Continuing Education (Architects & Engineers No. 612-05). An increase in additional services of $4,000 for Ness Architects, Incorporated, brings the total additional services of this contract to $15,500. This contract was originally approved at the November 21, 2003 board meeting.

Moved by Ms. Washington and seconded by Ms. Sheid.

Motion passed 7-0.

6. Human Resources --- General Marty then presented the following resolutions for the Board's consideration:

Actions concerning academic employees (Human Resources No. 1178-05).

Additional actions concerning nonacademic employees (Human Resources No. 1179-05).

Additional actions concerning nonacademic employees not included in the advance packet provided to the Board (Human Resources No. 1180-05).

Dr. Art Spisak, Chairperson of the Faculty Senate, read a statement indicating that the retreat proposal included in the above academic resolution for Dr. Kathy Pulley is an improvement over the original proposal presented at the June 17, 2005 board meeting. However, the Faculty Senate Executive Committee still does not endorse it. It is not consistent with retreat guidelines proposed in the Academic Administrator's Handbook (1996) as formulated by the then Vice President of Academic Affairs. He added that the Faculty Senate Executive Committee is pleased that Dr. Nietzel has formed a committee that has as one of its charges the creation of a retreat policy.

Dr. Nietzel next thanked Dr. Spisak for the way he conducted the discussions on this matter between himself and the Executive Committee of the Faculty Senate. He indicated he tried to identify a fair way for this return to faculty to be handled. The important matter now is to work with the compensation committee to fashion a proposal for return to faculty in the future that is fair and is predictable.

The three Human Resources Resolutions were moved by Mr. Elliott and seconded by Mr. Carlson.

Motion passed 7-0.

General Marty next asked that Mr. Howard Berriman, Assistant Director of Human Resources, summarize a resolution (Human Resources No. 1181-05) approving amendments to the University's medical insurance plan. The Board could put off voting on these amendments until the September meeting if they so choose. Mr. Berriman explained that under the guiding principles that the Board set in November, 2004, these plan amendments for calendar year 2006 are necessary to keep a balanced insurance fund. These amendments increase the total out-of-pocket expenses for the members of the plan.

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

Motion passed 7-0.

At this time, Mr. Duggan excused himself from the remainder of the meeting.

7. 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 June 17, 2005. Ms. Sheid moved to approve the minutes as presented. Ms. Pinegar seconded the motion.

Motion passed 6-0.

8. Report from the President --- Dr. Michael Nietzel first mentioned several new committees that have been formed:

Executive Budget Committee – This committee will meet monthly and has strong representation from the administrative council, the faculty senate, the staff senate, and includes student representation.

Futures Committee – This committee is composed almost exclusively of faculty members and will be chaired by Dr. Einhellig. This committee is charged with identifying up to twelve academic areas where the university is good and can become better and thereby establish stronger research and educational programs.

Compensation Committee – This committee will give advice to us about the proper mix of merit and equity considerations in pay raises. It will also recommend a return-to-faculty policy that can be fair and predictable.

Intercollegiate Athletics Priorities Committee - This committee will make recommendations about how the athletics program can be evaluated.

School of Public Health Advisory Committee – This committee will review the structure and the future direction of the School of Public Health, previously approved by the Board.

Presidential Commission on Diversity – Ms. Jana Estergard and Ms. Charlotte Hardin will help identify the composition of this committee. This Commission will advise the University on how to improve our record and our climate with respect to diversity of students, faculty, and ideas on campus.

Long-Range Plan – He has asked for the finalization of this plan to be moved back a little so that the work of these committees can influence the plan.

Dr. Nietzel next asked Dr. Bill Cheek to brief the Board on the status of the Higher Learning Commission Steering Committee. Dr. Cheek commented that we are in the final stages of the self study – a draft of the self-study report will soon be online for comments from the university community. We will present the report, with supporting documents, to the site team in September and the site visit will be on November 7-9, 2005.

Dr. Nietzel next reported that he attended two day-long retreats – one with the administrative council and one with the college deans. There have been some very good discussions regarding the development of the provost model for the university. He would like to be able to come back to the Board with this model by the September meeting. He next mentioned the budget and the need to begin a regular process of reallocating our current resources to priorities. He hopes to develop a reallocation plan that we would be prepared to implement over the next three years in which we look at a regular reallocation of some portion of the operating budget. The reallocations would go to the programs that immerge as priorities from the Futures Committee or they may go to areas that need to be strengthened for academic programs to be promoted. Dr. Nietzel commented that he would like to get to a decentralized budget at the unit level so that leaders have a great deal of responsibility and accountability. He added that the University needs to lift its sites in every possible way – expectations from students and ourselves. We simply need to regularly get better.

Mr. Franks commented that since we are really back to the first part of the original agenda, he wanted to take this time to welcome our new Student Governor, Mr. Ryan Sivill. Mr. Sivill commented that it is an honor and privilege to serve on the Board and to represent the students.

Dr. Nietzel then presented a resolution (Administration No. 4-05) adopting revised organizational charts of the University's administration and revising Sections 1.3, 1.4, and 1.5 of the Faculty Handbook, describing the organizational structure of the University. Moved by Mr. Elliott and seconded by Ms. Sheid.

Motion passed 6-0.

9. Educational:
a. Faculty Senate Report --- Dr. Art Spisak, Chairperson for the Faculty Senate, commented that regarding the amendment to the medical insurance plan approved earlier in the meeting, the increase in out-of-pocket expenses for members of the plan is like a lowering of our salaries.

Dr. Spisak then remarked that to provide the Board with a better understanding of what some of our faculty are involved with at SMS, he plans on highlighting a faculty member at this meeting, and hopefully, other faculty members at future meetings. He then introduced Dr. Mike Carlie, Professor in the Department of Sociology, Anthropology, and Criminology. Dr. Carlie has been a faculty member for 35 years (18 years at SMSU) and his area of expertise is criminal justice. He commented that in 1970 there was only one criminal justice program in the entire United States – now there are over one thousand. He has developed programs at University of Missouri – St. Louis, Ball State, and now SMSU. He has spent over 20 years doing field research on law enforcement and prisons across the United States, England, and the Netherlands. In 1998, he started his most recent research in the area of street gangs. Police departments across the country (and other countries) are now using an on-line book that he wrote about gangs to train their officers.

b. Report from the Acting Vice President for Academic Affairs --- Dr. Frank Einhellig, Acting Vice President for Academic Affairs, reported on the five major points that he is focusing on in his new position – 1) strengthening communications within the university; 2) improving our hiring; 3) working on improving the quality of our programs to the highest extent; 4) creating a dynamic curriculum; and 5) increasing responsibilities at the departmental level that can energize our entire system. He mentioned that they are involved in an internal search for a second Associate Vice President of Academic Affairs. Dr. Jeanne Phelps is now serving as one of the Associate Vice Presidents. Dr. Einhellig reported that the Defense & Strategic Studies Department is enroute to the Washington D.C. area in preparation for the first semester in their new location.

10. Report from Vice President for Research & Economic Development --- Dr. Jim Baker, Vice President for Research & Economic Development, presented a chart that shows that our FY05 external rewards are up to about $16 million. He next summarized the areas that he is responsible for – Broadcast Services, the China Program, the Center for Applied Science & Engineering, and the Mountain Grove Campus. He then distributed a proposal to establish the Community and Social Issues Research Institute. This institute will allow us to have many faculty members like Dr. Carlie interfacing with the community. Dr. Lloyd Young, professor emeritus of Sociology, has been selected as the Director of the Institute on a half-time basis. Dr. Baker indicated that he would ask the Board to approve this Institute at the September meeting. Mr. Carlson commented that he is very interested in this proposal. He indicated that it would be nice if this Institute could identify issues that may be presented to the community before they are here. Dr. Baker ended his report by indicating that there will be a Mountain Grove Task Force established to study what is the role of the Mountain Grove Campus within the University System.

11. Student Affairs:
a. Report from Student Body President --- Mr. Mike Barnett, President of the Student Body, first thanked Dr. Nietzel for keeping the students at the table and being asked for their input. He next congratulated Mr. Sivill for his appointment as Student Governor and commented that he is looking forward to working with him. He ended his report by bringing up that there needs to be a discussion on how the University might be able to help the students on campus get downtown and back in a safe manner.

b. Report from Vice President for Student Affairs--- Dr. Don Aripoli, Vice President for Student Affairs, reported that last fall, we had 2,689 new freshmen. We think we will have about 2,609 students this year – we budgeted for 2,600. He ended his report by presenting two schedules comparing tuition and fees among the state universities as well as how we compare when we look at tuition, fees, and room and board. We are right in the middle when compared to the other state institutions as far as tuition and fees. When including room and board, we are fourth from the bottom instead of sixth.

12. Staff Senate --- Dr. Diana Garland, Chairperson of the Staff Senate, reported that she has met twice with Dr. Spisak of the Faculty Senate and Mike Barnett of SGA regarding funding and how they can work as a team toward improving funding.

13. Finance:
a. Development Report --- Mr. Greg Onstot, Vice President for University Advancement, first thanked everyone that was able to attend the Founders Club event. At the end of June, the capital campaign totals were up to about $51.3 million. He reported that we will continue with the campaign until we change our name on August 28, 2005. He then presented the Development Report for the twelve months ending June 30, 2005. Total numbers of gifts are about the exact same as last year while total gift dollars were down. Total gift dollars for the year were almost $9 million.

b. Financial Report --- Mr. Kent Kay, Chief Financial Officer, presented a draft of our FY07 State Appropriations Request. The Department of Higher Education indicated that we should not ask for much in additional funds due to the estimated small growth in the State's economy. However, we still included a request for equitable funding – we are still funded about $8 million less than we should be. He indicated that Higher Education in the State of Missouri, overall, has lost about 3% of its funding when compared to 2002 – to get back to that level would be about an additional $7 million. He added that the last time that SMSU received any inflationary adjustment was in FY01. The cumulative CPI change since then is projected to be about 11.5%.

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 the Southwest Missouri State University that a closed meeting, with closed records and closed vote, be held immediately following this July 22, 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,…"

Ms. Sheid moved the approval of the resolution and Ms. Pinegar seconded the motion.

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

Board President Franks declared the motion was passed 6-0.

15. Date of Next Meeting --- The date of the next scheduled meeting (a board retreat) was set for August 4, 2005 at 1:00 p.m. at the University Plaza Hotel in Springfield, Missouri.

16. Adjournment--- Mr. Franks adjourned the meeting at 11:40 a.m. on the motion of Mr. Elliott, the second of Ms. Washington, and the unanimous vote of the Board.

John W. McAlear