October 27, 2006

OCTOBER 27, 2006

1. Roll Call
Present- Mr. James Buford, Governor
Mr. Michael Duggan, Governor
Mr. Michael Franks, President of the Board
Mr. Brian Hammons, Governor
Ms. Mary Sheid, Vice President of the Board
Ms. Cathy Smith, Governor
Ms. Phyllis Washington, Governor
Mr. John Winston, Governor

Absent- Mr. Ryan Sivill, Student Governor

Present- Michael Nietzel, President
Kent Thomas, Chancellor of the West Plains Campus
Greg Onstot, Vice President for University Advancement
Belinda McCarthy, Provost
Greg Burris, Vice President for Administrative and Information Services
Jim Baker, Vice President for Research and Economic Development
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 Missouri State University in Springfield, Missouri.

3. Consent Agenda --- Mr. Franks noted that the first 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 Items
Approval of the Activity Report for the month of September 2006 (West Plains Campus Activity Report No. 59-06).

Approval of Acceptance of Transfer of the Chancellor’s Residence, 212 Harlin Drive, West Plains, Missouri, from the Missouri State University Foundation (West Plains Campus Land No. 11-06).

Approval of FY07 Salary and Benefits Overview for the Missouri State University-West Plains Assistant Basketball Coach – Andre Amos (West Plains Campus Personnel No. 258-06).

Approval of actions concerning West Plains Campus academic employees (West Plains Campus Personnel No. 259-06).

Springfield Campus Purchasing Actions
Approval of purchases exceeding $100,000 between September 15, 2006 and October 13, 2006 (Purchasing Activity Report No. 289-06).

Design and Construction Items
Approval of Activity Report for the month of September 2006 (Activity Report No.166-06).

Engineering services in conjunction with off-site improvements for the JQH Arena (Architects & Engineers No. 622-06); Scott Consulting Engineers, for a fixed fee of $31,000 plus reimbursable expenses. Additional services of up to $5,000 as described in this agreement may be authorized and approved as necessary.

Approval of additional services for an exit study of the existing Hammons Student Center in conjunction with the construction of the new JQH Arena (Architects & Engineers No. 623-06); Ellerbe Becket’s sub-consultant, Fire Protection Code Consultants will perform this work for an hourly fee not-to-exceed $17,480 plus reimbursable expenses. Additional services of up to $3,000 as described in this agreement may be authorized and approved as necessary.

Human Resources Items
Actions concerning academic employees (Human Resources No. 1215-06).

Actions concerning non-academic employees (Human Resources No. 1216-06).

Ms. Sheid made a motion to approve the Consent Agenda receiving a second from Mr. Duggan.

Motion passed 8-0.

4. Approval of Minutes
--- Mr. Franks next asked if there were any needed corrections to the minutes of the open and closed meetings of September 15, 2006, and if not, was there a motion to approve the minutes for the two meetings. Mr. Hammons moved to approve the minutes as presented, receiving the second of Mr. Duggan.

Motion passed 8-0.

5. Educational:
a. Faculty Senate Report --- Dr. Mark Richter, Chairperson for the Faculty Senate, first introduced Dr. Paul Durham, Associate Professor in Biology, to make a presentation to the Board. Dr. Durham reported on his primary area of research – a focus on understanding the role of the trigeminal nerve. He has been pioneering what’s going on with the activation of the trigeminal nerve and the various types of facial pain that are caused by this activation such as eye pain, cluster headaches, migraines, TMJ disorders, and tooth aches.

Dr. Chantal Levesque, Associate Professor in Psychology, next reported that she has been very involved in both teaching and research, often trying to combine both in creative ways. Her program of research spans various topic areas such as education, health psychology, sports psychology, and leisure. Her common underlying theme is motivation – mapping out the relationships between motivational processes and their antecedents and outcomes. Some of the motivational outcomes she has examined include well-being, life satisfaction, smoking quit attempts, enhanced school performance, school retention rates, and engagement.

b. Report from the Provost --- Dr. Belinda McCarthy, Provost, next introduced those faculty members receiving the following awards: Foundation awards for teaching, Foundation awards for research, excellence in community service, University teaching awards, University service awards, and University research awards.

6. President’s Office
--- Dr. Michael Nietzel first reported that the CBHE’s appropriation recommendation for Higher Education is a $110 million increase for the operating budgets of all public institutions including the community colleges. This recommendation was based on a methodology in which all Presidents agreed to the way the increased funds would be distributed. The approach was that an institution would either be restored back to their 2001 or 2002 funding level or that it would receive an adjustment that would give them more equitable funding based on their enrollment and FTE. Missouri State’s portion of this increase would be $9.6 million, about an 11.7% increase. The Presidents have unanimously endorsed this CBHE recommendation. One principle that would go along with this type of funding recommendation is to tie tuition increases to increases in the state appropriations – they are looking at tuition constraints in line with whatever state appropriation increases might occur and over whatever time period the increases might occur. The Presidents have also been charged with the task of developing a formula for funding higher education that would guide the appropriations in the future.

He next reported that the Grants & Contracts Policies that were requested by the Board several months ago have been completed and have been distributed to members of the campus community. A copy is included in the Board’s materials for today’s meeting.

Dr. Nietzel then reported that Dr. Don Aripoli will become the University’s Acting Vice President for University Advancement on January 1, 2007 replacing Mr. Greg Onstot who will be retiring. Dr. Aripoli will be in this acting position for about nine to twelve months while a national search is conducted. A search was performed, but Dr. Nietzel explained that he was not sure it would have been the right decision for us to make a selection from that pool. Dr. Earle Doman will become the Acting Vice President for Student Affairs and Mr. Mike Jungers will become the Acting Dean of Students.

He next reported that we have scheduled a meeting between the Board of Governors and the Springfield City Council from 7:30-8:30 a.m. on December 15, 2007 – the date of the next regularly scheduled meeting. The meeting with the City Council will be in Plaster Student Union and the Board can continue with their normal business at 9:00 a.m. after a short recess.

Dr. Nietzel then presented a resolution (Bids & Quotations No. 1187-06) approving the $67 million project budget for the JQH Arena project. Moved by Ms. Sheid and seconded by Mr. Duggan.

Motion passed 8-0.

He next presented a resolution (Finance No. 992-06) approving the intent toward the issuance of Auxiliary Enterprise System Revenue Bonds and reimbursement of expenditures for the JQH Arena from proceeds of tax-exempt bonds and authorization of an amendment to the gift agreement with Mr. John Q. Hammons. The estimated maximum principal amount of bonds expected to be issued for this project is now $60 million. Mr. Hammons’ increased gift commitment to the project has been increased from $25 million to $30 million. The bonds are expected to be issued in April. Mr. Franks added that it is important that everyone understand that these bonds are to be paid from auxiliary fund revenues and not from any of the education and general revenue streams (state appropriations and student fees). Mr. Brian Hammons asked if the auxiliary revenues were not adequate, could bondholders look to the University’s education and general funds. Mr. John Black, General Counsel, responded that they could not; however the Board at that time might want to step in and use some of the education and general funds if needed – this has never happened before. Mr. Black also added that although the Arena budget just approved was $67 million, it is hoped that the project will exceed the $67 million amount due to receiving additional private gifts before the completion of the project that will allow for the completion of items not included in the $67 million budget. Despite the fact that we may receive more private gifts that will raise the total project cost, the maximum bond issue will be $60 million. Moved by Ms. Sheid and seconded by Mr. Hammons.

Motion passed 8-0.

Dr. Nietzel then presented a resolution (Administration No. 11-06) authorizing the President of the University to enter into private Suite Agreements in JQH Arena. Of the approximately 22 planned private suites, approximately 19 will be available for lease and these have been spoken for. Moved by Mr. Hammons. Seconded by Mr. Winston.

Motion passed 8-0.

He next presented a resolution (Agreement No. 186-06) approving the renewal of the Consulting Services Agreement with The Livingston Group for the 2007 calendar year. This will be the fourth and last renewal option originally agreed to. Next year we will begin the bidding process for these services in 2008. The cost of this year’s renewal is estimated to be $164,000. Moved by Mr. Hammons and seconded by Ms. Sheid.

Motion passed 8-0.

Dr. Nietzel then presented a resolution (Administration No. 12-06) approving the authorization for Michael T. Nietzel and James P. Baker, as incorporators, and John F. Black, as registered agent, to act on behalf of Missouri State University for JVIC, Inc. The establishment of a not-for-profit 501(c)3 public benefit corporation with purposes exclusively charitable, scientific, and educational to serve as a Missouri Innovation Center would benefit the mission of the University, and act in conjunction with its Center for Science and Engineering (CASE) and the Jordan Valley Innovation Center. The Missouri Department of Economic Development, a funding agency for Missouri Innovation Centers, has requested that we seek this separate status for JVIC, Inc. Moved by Mr. Hammons and seconded by Ms. Sheid.

Motion passed 8-0.

He next presented a resolution (Agreement No. 187-06) approving the City of Springfield Memorandum of Understanding with the City of Springfield in regard to John Q. Hammons Student Center. This agreement will allow the City to use the Center for community-wide events, including multi-day events and concerts. For the first four events, the City would reimburse the University for our operating costs. For additional events, the City would pay the standard rental fees. The City would include an allocation in the next ¼ cent referendum for student center renovations. Moved by Hammons. Seconded by Ms. Smith.

Motion passed 8-0.

7. Educational (continued):
a. Faculty Senate Report --- Dr. Mark Richter introduced Dr. Billie Follensbee, Associate Professor in Art and Design and a recipient of the Excellence in Community Service Award this past year, to make a report to the Board. She has redeveloped her advance courses in art history and archaeology into citizenship and service learning courses partnering with organizations in the community. She seeks out museums and repositories in the region with collections of native art and artifacts from Africa, the Pacific Islands, and the Americas that have neither the funds nor the personnel to research them. She has her advance students choose from these objects for their research for their final course projects.

Dr. Richter then reported that the major item of discussion in the Faculty Senate is the revised Faculty Handbook. Their goal is to have the revised Handbook and their comments to the administration by November 7, 2006. A subcommittee of the Senate is studying the issue of background checks on new faculty hires. They are performing a cost/benefit analysis of background checks. They hope to bring this issue to the full Senate by November 9, 2006. They hope to adopt a resolution on faculty background checks at the Senate’s December 7th meeting, which can then be presented to the Board at their December meeting.

b. Report from the Provost --- Dr. Belinda McCarthy introduced two recent appointments - Dr. Adele Newson-Horst, Dean of the College of Arts and Letters and Dr. Tammy Jahnke, Dean of the College of Natural and Applied Sciences. She then introduced her academic administrative team - Dr. Ron Fairbairn, Associate Provost for Public Affairs and the Extended Campus; Dr. William Cheek, Acting Associate Provost, responsible for undergraduate studies; Dr. Chris Craig, Acting Associate Provost, responsible for faculty relations; Dr. John Catau, Assistant Provost, responsible for undergraduate programs. Mr. Greg Rainwater, the new Budget and Financial Manager for the Office of the Provost was not able to be in attendance at today’s meeting.

Dr. McCarthy next asked Dr. Ron Bottin, Dean of the College of Business Administration, to inform the Board of an exciting new partnership. He explained that this partnership is between the Computer Information Systems Department and IBM. This partnership is valued at $5 million. They will provide us with hardware, software, and service technicians to help us change our curriculum. The reason for this partnership is that there have been declining enrollments in Information Technology related majors due to the Dot-Com bust, offshore concerns, and the assumption that there is no future in this area. However, he did explain there is a very high demand for Information Technology graduates. IBM established the IBM Academic Initiative with four key objectives: 1) training an IT workforce for emerging positions; 2) provide critical skills for the next generation of IT people; 3) ensure that universities have state of the art curriculum; and 4) motivate more students to pursue an IT career. Through this partnership, we have developed a new major, Information Technology Service Management – we will have the first BS degree program in the country.

Dr. McCarthy next announced that the Board of Directors of the Missouri Archaeological Society approved the move of its headquarters to Missouri State University from the University of Missouri, where it was established in 1931. It will be housed in Strong Hall in the College of Humanities and Public Affairs and will work closely with our existing Center for Archaeological Research.

She then reported that we have signed our first agreement with a Japanese university – Meiji University, a prestigious, top-ranking institution in Japan. She also reported that the College of Education has also signed a preliminary agreement with the University Autonomous of the Estate of Hidalgo in Mexico.

Dr. McCarthy ended her report by showing the Board the beginning efforts from working with the Delaware data. This allows us to compare how we are distributing the use of resources at Missouri State compared to a benchmark group of peer institutions. She showed the actual results of this comparison for three unnamed university departments – one department in which its faculty are carrying a very heavy load in credit hour assignments and two departments in which its faculty are not carrying as much of a load when compared to peer institutions.

8. Research and Economic Development
--- Dr. Jim Baker, Vice President for Research and Economic Development, reported that for the three-month period ending on September 30, 2006, there were 58 proposals submitted and 49 awards received totaling $5.3 million.

9. West Plains Campus
--- Mr. Kent Thomas, Chancellor of the West Plains Campus, reported that they are working on an agreement with Air Evac LifeTeam, a regionally based medical air evacuation organization with its headquarters in West Plains. They run a nationally certified helicopter engine mechanic school in West Plains. They are interested in adding the general education component to this training that would create an Associate of Arts degree. The West Plains Campus administration is working with them to develop a curriculum that will be submitted to the CBHE and the Department of Higher Education to ask for approval.

10. Student Affairs:

a. Report from Student Body President --- Mr. Sean Cain, President of the Student Body, reported that the Recreation Center referendum vote will conclude at midnight tonight. He also reported that SGA has registered about 1,200 voters for the upcoming election.

b. Report from Vice President for Student Affairs --- Dr. Don Aripoli, Vice President for Student Affairs, reported we ended up with more than 600 students and parents at the St. Louis informational event in September. He summarized that our final enrollment figures for Fall 2006 show that we were up in about all categories of students. Similar to the St. Louis events, they will be hosting a counselor luncheon and informational reception in Kansas City on November 2. Ms. Washington commented that she would like to offer to do anything she can to help increase our student numbers from the Kansas City area up to the same level that we get from the St. Louis area. Dr. Nietzel indicated that he thinks it is important to house a recruiter in Kansas City similar to what we just did in St. Louis.

11. Staff Senate
--- Mr. Ben Boslaugh, Chair of the Staff Senate, reported that there has been a lot of effort expended by the faculty and staff on the new compensation system. The majority of staff employees have completed training on the new evaluation system and the review of job descriptions is under way.

12. Finance:
a. Development Report --- Mr. Greg Onstot, Vice President for University Advancement, gave the development report for the first three months of the fiscal year. We are up 667 gifts and about $420,000 when compared to last year at this time.

He next presented a resolution (Awards No. 17-06) presenting a Bronze Bear Award to Mr. Thomas G. Strong for his service to and support of Missouri State University. He will receive this award at one of the commencements in December. Moved by Ms. Sheid and seconded by Mr. Buford.

Motion passed 8-0.

b. Financial Report --- Mr. Kent Kay, Chief Financial Officer, presented a resolution (Purchasing Activity Report No. 290-06) for purchases exceeding $100,000 from October 14, 2006 through October 26, 2006. Moved by Mr. Duggan. Seconded by Mr. Hammons.

Motion passed 8-0.

He next presented the September 30, 2006 financial statements for the first three months of the fiscal year. He commented that when you look at salaries and benefits and total expenditures, we are right on target when compared to our budget.

13. Facilities and Equipment --- Mr. Greg Burris, Vice President for Administrative and Information Services, presented the following resolutions for the Board’s consideration:

Elevator repairs at Blair House (Bids & Quotations No. 1188-06); ThyssenKrupp Elevator Corporation, only bid of $214,520 for the base bid plus alternate one; total project budget established at $255,000.

Elevator cylinder replacements at Cheek Hall, Craig Hall, and Ellis Hall (Bids & Quotations No. 1189-06); ThyssenKrupp Elevator Corporation, only bid of $96,003 for the base bid; total project budget set at $137,060.

Approval of a license agreement to accept a gift of paging system replacements at the Greenwood Laboratory School (Gifts No. 139-06). Audio Acoustics, Inc., is the donor of the paging system.

Engineering services in conjunction with the end wall repairs at Blair-Shannon House (Architects & Engineers No. 624-06); Structural Engineering Associates, Inc., for a lump sum fee of $196,500 plus reimbursable expenses. Additional services of up to $50,000 as described in this agreement may be authorized and approved as necessary.

Moved by Mr. Hammons and seconded by Mr. Duggan.

Motion passed 8-0.

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

Approval of changes to the Employee Health Insurance Plans (Human Resources No. 1217-06). One of the changes to the plan is the addition of an employee contribution with this contribution amount being waived in 2007. Employees will be eligible to eliminate payment of the contribution in 2008 and subsequent years through participation in the University’s Wellness Program.

Approval of changes to the Employee Handbook regarding loss of vacation days (Human Resources No. 1218-06). This change permits vacation leave accrual in excess of the maximum accrual to be lost at the end of the fiscal year instead of in the month that the maximum accrual is exceeded (the present requirement). This change will allow employees more flexibility in scheduling use of their vacation days.

Moved by Mr. Hammons and seconded by Mr. Winston.

Motion passed 8-0.

15. New Business
--- Mr. Franks next mentioned that it was planned to establish an Executive Committee for the Board of Governors but it was not included on the agenda. Mr. Buford moved to add this discussion item to the agenda. Ms. Washington provided the second to the motion.

Motion passed 8-0.

Mr. Franks then distributed a resolution (Board Policies No. 47-06) establishing an Executive Committee for the Board of Governors. He explained that the Bylaws permit the President of the Board to appoint three Board members, subject to the approval of the Board, to an Executive Committee. The Executive Committee shall authorize on-going activities of the University that cannot wait until the next regularly scheduled Board meeting. Actions of the Executive Committee are to be taken up by the full Board at its next meeting. The President of the Board serves as an ex-officio member of the Committee and may vote in the absence of any one of the Committee members. Mr. Franks is recommending that Ms. Sheid, Mr. Duggan, and Mr. Hammons make up the first Executive Committee of the Board. Moved by Mr. Buford, receiving the second of Mr. Winston.

Motion passed 8-0.

Mr. Winston next commented that he is trying to identify in the Board’s Rules and Regulations certain answers to who can bring matters before the Board and how they need to do so. He would like to have a one-page clarification of these types of issues. Mr. Franks asked Mr. Winston to put in writing all of these types of questions so Mr. John Black, General Counsel, could respond by using our current Bylaws. Mr. Winston also commented that he would like to see those items that are not time sensitive nor an emergency item to be voted on at a subsequent Board meeting rather than at the meeting where they are first brought up.

16. Date of Next Meeting --- The date of the next scheduled meeting was set for December 15, 2006 at 7:30 a.m., in the Plaster Student Union on the Springfield Campus.

17. Adjournment
-- Mr. Franks adjourned the meeting at 12:15 p.m. on the motion of Mr. Winston, the second of Mr. Duggan, and the unanimous vote of the Board.

John W. McAlear