November 19, 2004

NOVEMBER 19, 2004

1. Roll Call

Present- Dr. Barbara Burns, President of the Board
Mr. William Darr, Governor
Mr. Michael Duggan, Governor
Mr. Michael Franks, Vice President of the Board
Ms. Mary Sheid, Governor
Ms. Phyllis Washington, Governor (by conference call)
Ms. Kelli Wolf, Student Governor

Absent Mr. Thomas Carlson, Governor


Present- John Keiser, President
Greg Onstot, Vice President for University Advancement
Bruno Schmidt, Vice President for Academic Affairs
Don Aripoli, Vice President for Student Affairs
Greg Burris, Vice President for Administration & Finance
Kent Kay, Associate Vice President for Finance
John Black, General Counsel
John W. McAlear, Secretary of the Board/

2. Presiding --- The presiding officer for the meeting was Dr. Barbara Burns, President of the Board of Governors. She called the meeting to order at 9:00 a.m. in the Parliamentary Room of the Plaster Student Union on the campus of Southwest Missouri State University in Springfield, Missouri.

3. Minutes --- Dr. Burns 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 meetings of October 22, 2004. Mr. Duggan moved to approve the minutes as presented. Ms. Sheid seconded the motion.

Motion passed 6-0.

4. Report from the President --- Dr. John Keiser first asked Ms. Jan Bradley, Program Coordinator of Citizenship and Service Learning, to brief the board on the special student project that took place on Election Day. Ms. Bradley reported that 110 students worked on Election Day – 250 students inquired about the project. She then asked Mr. Richard Struckoff, Greene County Clerk, to report on how our students assisted his staff. Mr. Struckoff commented that he wanted to thank Dr. John Strong, Assistant to the President, for initiating this project. He added that Dr. Strong's goal was to involve all members of the Campus Compact in Missouri to help on Election Day. He explained that the SMS students helped get voters to the correct polling place if they had recently moved. Students did receive a $120 stipend if they worked the entire thirteen-hour day. He added that they received many positive comments regarding the student helpers. This was a record-breaking election as far as number of voters and it was the smoothest election they have ever had.

Dr. Keiser next presented the following resolutions for the board's consideration:

Authorization of Exchange Agreement between SMSU and the Slavyani Foundation, Sofia, Bulgaria (Agreement No. 143-04).

Authorization of Agreement for a Student Exchange Program between SMSU and University of Berne, Switzerland (Agreement No. 144-04).

Approval of agreements implementing collaborative programs with Szent Istvan University, with a main campus located in Godollo, Hungary (Agreement No. 145-04).

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

Motion passed 6-0.

Dr. Keiser then recommended approval of the renewal of the contract with The Livingston Group, our lobbyist group in Washington D.C. This renewal will be in the Purchasing Activity Report to be presented later in the meeting. The estimated cost is about $156,000.

He next presented a resolution (Awards No. 10-04) approving the awarding of the Bronze Bear Award to Jane A. and Kenneth E. Meyer. The Administrative Council, Faculty Senate, Student Government Association, and Staff Senate have all approved this award. He mentioned that the Alumni Center has been named the Kenneth E. Meyer Alumni Center and the carillon has been named the Jane A. Meyer Carillon. Mr. Meyer and his late wife, Jane, have provided support in a number of other fashions over the years. Motion made by Mr. Duggan and seconded by Mr. Franks.

Motion passed 6-0.

Dr. Keiser then presented a resolution (Agreement No. 146-04) approving a Letter of Intent with Forest Institute of Professional Psychology. We have an agreement with them that was signed in November of 2000 that was to explore the development of joint and cooperative programs and educational opportunities. This resolution approves further collaboration, including the operation of the Forest Institute within the SMSU infrastructure, with a view toward ultimate merger of Forest Institute into SMSU. This will require a financial analysis. Moved by Mr. Duggan. Seconded by Mr. Darr.

Motion passed 6-0.

He next presented a resolution (Board Policies No. 38-04) approving the dates for the 2005 calendar year regular Board of Governors' meetings. Moved by Mr. Franks. Seconded by Mr. Darr.

Motion passed 6-0.

Dr. Jim Baker, Chancellor of the SMSU-Mountain Grove campus, was asked to give the annual report for the SMSU-Mountain Grove campus. He first introduced Dr. Innocent Onwueme, Associate Dean of the School of Agricultural Sciences and also the Department Head of the Department of Fruit Science. Dr. Onwueme will be presenting this report next year. Dr. Baker explained that SMSU-Mountain Grove provides services through two major units – the Missouri State Fruit Experiment Station and the Mid-America Viticulture and Enology Center. He reported that the FY04 expenditures totaled about $2 million with about $850,000 funded by external grants and agencies.

Dr. Burns then announced that a search committee needs to be established to replace Mr. John McAlear who is retiring next summer. Dr. Keiser named a committee chaired by Mr. Kent Kay and including Dr. Burns, Dr. David Hough, Dr. Earle Doman, Ms. Jan Lewis, and Dr. Darlene Bailey. Moved by Ms. Sheid and seconded by Mr. Darr.

Motion passed 6-0.

Dr. Burns next commented that this past month, a neighbor's daughter and her daughter's friend were involved in a very serious automobile accident and were in the hospital about a week. During this time, Dr. Burns has heard many positive comments about the faculty who have worked with these two students. The students' mothers asked that Dr. Burns convey their thanks to the faculty members and the Board for the kind treatment that their daughters have received.

5. Finance:

a. FY04 Audited Financial Statements --- Mr. Kent Kay, Associate Vice President for Finance, next briefed the board on some of the key points of the 2003-2004 Financial Report. He explained that this year's report is the first year where the SMSU Foundation's audited financial statements are included in the University's report. He reported total assets of the University of $327 million compared with $323 million last year. Our net assets increased from $238 million to $245 million.

Ms. Kim Hamm of BKD, LLP next reported on the unqualified opinion that BKD, LLP provided on the June 30, 2004 financial statements. She also presented the annual Management Letter with some recommendations for improved controls and procedures and the Accountant's Reports on the Federal Awards Programs received in the year ending June 30, 2004.

6. Educational:

a. Faculty Senate Report --- Dr. Lois Shufeldt, Chairperson for the Faculty Senate, reported that at their last meeting, the Faculty Senate passed an Action adopting a provost governance model. She reported that the Senate also unanimously passed a resolution recommending the inclusion of sexual orientation in the SMSU nondiscrimination policy. Dr. Shufeldt requested that the Board take action on this second issue at today's meeting. Ms. Washington then indicated that last year, when this issue was presented, no Governor provided a second to her motion for the inclusion of sexual orientation in the nondiscrimination policy. She added that she is in support of this inclusion and will be while she is on the board. She also remarked that she would not support the University's name change until our nondiscrimination policy is changed. Ms. Washington then moved to adopt what the Faculty Senate had recommended. Dr. Burns asked for a second to the motion. With no second being offered, Dr. Burns indicated that the motion died for lack of a second. Ms. Washington announced that she needed to disconnect from her conference call at this time.

Mr. Franks commented that our present policy is a test case to determine if an all-inclusive policy can work. He added that the success or failure of a policy would come with the implementation of the policy. He added that in the matters that he has observed the past two years, the University has faithfully implemented the present policy. Mr. Franks indicated that if he is persuaded that the present policy will not work, then he sees enumeration as an alternative.

b. Report from Vice President for Academic Affairs --- Dr. Bruno Schmidt, Vice President for Academic Affairs, reported that the Springfield News Leader had an article in today's paper that reported that the College of Business Administration at SMS will be included in the 2006 edition of the best business schools. Dean Ron Bottin next presented selected highlights of the College of Business Administration.

Dr. Schmidt then presented a resolution (Agreement No. 147-04) establishing a partnership between SMSU and Missouri Southern State University to deliver an alternative/innovative Master of Arts in Teaching program in secondary education to the Joplin, Missouri, area. This would be a joint masters program with some of the courses taught by Missouri Southern faculty with the approval of our graduate council. Dr. Keiser added that the one item not agreed on is the final appearance of the diploma. Moved by Mr. Darr and seconded by Mr. Duggan.

Motion passed 5-0.

Dean Lorene Stone of the College of Humanities & Public Affairs next reported on the proposed relocation of the Department of Defense & Strategic Studies to the Washington D.C. area. This proposal will help us in: 1) recruiting students from the Washington D.C. area; 2) providing a tremendous educational opportunity for students of the program that our present students do not have in Springfield; and 3) recruiting quality faculty. We estimate costs of $225,000 to $245,000 in the first year of relocation. We are seeking external funding for this relocation and we have commitments of $200,000 for the first year. Missouri students will still pay in-state fees. The present Department has about 4,100 square feet in Strong Hall and we will be seeking about the same amount of space or a little larger. The going rate for space in Washington D.C. is about $20 to $25 per square foot. The Board indicated that they supported this proposal.

Dr. Schmidt next asked Dr. Curt Lawrence, Acting Dean of the College of Arts and Letters and Dean of the University College, to report on the new web-based registration system. He reported that this project began in 1998. During the first two weeks of registration, 54% of the students who registered for spring 2005 registered via the web. The statement: "the system was easy to use" was agreed to or strongly agreed to by 98% of respondents.

7. West Plains Campus:

a. Report from the West Plains Campus --- Mr. Dennis Lancaster, Assistant to the Chancellor, reported that the Smith-London Clock Tower is now operational. He then presented the following resolutions for the Board's consideration:

Approval of the West Plains Campus Building Report dated November 3, 2004 (West Plains Campus Building Report No. 92-04).

Approval of actions concerning academic employees of the West Plains Campus (West Plains Personnel No. 226-04).

Approval of actions concerning non-academic employees of the West Plains Campus (West Plains Personnel No. 227-04).

Moved by Mr. Duggan. Seconded by Mr. Darr.

Motion passed 5-0.

8. Student Affairs:

a. Report from Student Body President --- Mr. Chris Curtis, President of the Student Body, reported that SGA is working along with the faculty in developing on-line faculty evaluations. He also reported that SGA has decided to improve the lighting in Lot 15 by using funds from the Safety Fee approved by students a few years ago.

b. Report from Vice President for Student Affairs--- Dr. Don Aripoli, Vice President for Student Affairs, presented a resolution (Policies & Procedures No. 103-04) approving a policy that allows the medical staff at Taylor Health and Wellness Center to provide medical services at no cost to Taylor's staff and their dependents as a professional courtesy. The services of the pharmacy, reference laboratory, and other areas where a supply cost is incurred, are not included as part of this professional courtesy. Moved by Ms. Sheid and seconded by Mr. Darr.

Motion passed 5-0.

9. Staff Senate Report --- Mr. Phil Nichols, Chairperson of the Staff Senate, reported that we had a very successful Veterans Day on campus with numerous events taking place.

10. Finance (continued):

a. Development Report --- Mr. Greg Onstot, Vice President for University Advancement, presented the Development Report for the four months ending October 31, 2004 that showed we were up about 80 gifts and $130,000 when compared to last year. He also reported that the Capital Campaign had an excellent month – we went from $38.7 million to about $41.5 million during October.

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

Purchases exceeding $100,000 from October 21, 2004 through November 5, 2004 (Purchasing Activity Report No. 253-04).

Purchases exceeding $100,000 from November 5, 2004 through November 17, 2004 (Purchasing Activity Report No. 254-04).

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

Motion passed 5-0.

Mr. Greg Burris, Vice President for Administration & Finance, next presented a resolution (Land No. 81-04) approving the extension of the sale contract of property located at 2344 South Scenic Avenue to Gardner Properties, L.L.C. Moved by Mr. Darr. Seconded by Mr. Franks.

Motion passed 5-0.

11. Facilities and Equipment & Human Resources --- Mr. Burris next presented the following resolutions for the Board's consideration:

Approving the Activity Report for the month of October 2004 (Activity Report No. 143-04).

Actions concerning academic employees (Human Resources No. 1152-04).

Actions concerning non-academic employees (Human Resources No. 1153-04).

Moved by Mr. Duggan. Seconded by Mr. Darr.

Motion passed 5-0.

Mr. Burris then introduced Governor Duggan, Chair of the Healthcare Guiding Principles Committee, to present the committee's recommendations. Mr. Duggan explained that the University presently has two committees working on employee benefits – a Healthcare Plans Review Committee that works with the medical and dental plans and a Fringe Benefits Committee that works with medical, dental, life insurance, long-term disability and other employee benefits. He stated that the charge of this committee was to provide Guiding Principles for the Healthcare Plans Review Committee specifically addressing the economics of the medical and dental programs. The four principles that they came up with were:

1) Present a medical and dental program to the Board that does not exceed 4.9% of the projected FY07 Operating Budget.

2) In that budget, provide for a reserve fund that does not fall below 60 days payout, nor exceed 90 days payout.

3) Provide for a wellness program within this budget that trains, educates, and provides incentives for employees to live a healthy life style, in an effort to reduce and/or minimize our future health care cost increases.

4) In order to ensure the Board receives the total impact of any program, the administrative team will report each year to the Board a breakdown of the total employee benefits package. This breakdown will provide both a dollar amount and as a percentage of the total operating budget as defined in # 1. Mr. Duggan commented that this is a FY07 recommendation and it should be presented to the Board by May 2005. This will allow time for review and change by our September 2005 meeting. Should the Healthcare Plans Review Committee become deadlocked and not be able to present a final proposal by May 2005, Mr. Greg Burris, Mr. Howard Berriman, and Mr. Kent Kay will be asked to make their recommendations for the program to the Board. Dr. Burns commented that these recommendations are exactly what the board wanted – a plan for the administration to follow. Mr. Franks asked if the 4.9% was a long-term principle. Mr. Duggan responded that this needs to be approved every year. Hopefully, the wellness portion of this program will help reduce this percentage.

Ms. Neosha Mackey, Chair of the Fringe Benefits Committee, asked to address the Board. She commented that the Healthcare Guiding Principles Committee did not consult with the Fringe Benefits Committee on this project. She added that the Healthcare Plans Review Committee was supposed to review the costs of medical plan benefit changes and report back to the Fringe Benefits Committee – this has not been done over the last couple of years. There is a problem of coordination between the two committees. It is very important to straighten out who is responsible for what aspect of fringe benefits on campus. Mr. Burris commented that this is being worked out at the present time.

12. Unfinished Business --- Mr. Franks next reported that the Presidential Search Committee will meet tomorrow to screen down the number of applicants.

13. 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. Dr. Burns 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 November 19, 2004 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. 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. Franks moved the approval of the resolution and Mr. Darr
seconded the motion.

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

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

14. Date of Next Meeting --- The date of the next regularly scheduled meeting was set for December 17, 2004.

15. Adjournment--- Dr. Burns adjourned the meeting at 12:20 p.m. on the motion of Mr. Darr, the second of Mr. Franks, and the unanimous vote of the Board.