September 17, 2004

SEPTEMBER 17, 2004

1. Roll Call

Present- Dr. Barbara Burns, President of the Board
Mr. Thomas Carlson, Governor
Mr. William Darr, Governor
Mr. Michael Duggan, Governor
Mr. Michael Franks, Vice President of the Board
Ms. Mary Sheid, Governor
Ms. Phyllis Washington, Governor
Ms. Kelli Wolf, Student Governor


Present- John Keiser, President
Kent Thomas, Chancellor of the West Plains Campus
Greg Onstot, Vice President for University Advancement
Bruno Schmidt, Vice President for Academic Affairs
Don Aripoli, Vice President for Student Affairs
Kent Kay, Associate Vice President for Finance
Greg Burris, Vice President for Administration & Finance
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.

Dr. Keiser began the meeting by announcing that the centennial history book written by Dr. Don Landon, Daring to Excel, the First 100 years of Southwest Missouri State University, was delivered yesterday and will be in the bookstore on Monday. Each of the Governors were handed a copy at the beginning of this meeting.

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 August 20, 2004 and the open meeting of August 26, 2004. Mr. Franks moved to approve the minutes as presented. Mr. Duggan seconded the motion.

Motion passed 7-0.

4. Educational:

a. Faculty Senate Report --- Dr. Lois Shufeldt, Chairperson for the Faculty Senate, reported that a proposed Senate Action to adopt a Provost/Vice President of Academic Affairs governance model was presented at their September 9th meeting but was tabled.

b. Report from Vice President for Academic Affairs --- Dr. Bruno Schmidt, Vice President for Academic Affairs, reported that some time ago, the Board approved a new program – a Bachelor of Arts in Art History. It was delayed in being presented to the CBHE due to budgetary constraints. The Art Department has done some internal reallocations and it was presented to the CBHE without any significant costs to implement the program. The CBHE has approved what was presented.

Dr. Schmidt then named all of this year's faculty award winners. Those in attendance were recognized. These faculty members were individually identified for their outstanding contributions to SMSU.

5. West Plains Campus:

a. Report from the West Plains Campus --- Mr. Kent Thomas, Chancellor, reported that the brickwork is finished on the Smith-London Bell Tower and the roofing framework is in place. There will be a dedication in the spring. He then presented the following resolutions for the Board's consideration:

Approval of the Building Report dated September 2, 2004 (West Plains Campus Building Report No. 91-04).

Approval of an agreement with Ozarks Medical Center to enter into a Memorandum of Understanding which will cooperatively create and fund an Associate of Applied Science Degree in Respiratory Therapy (West Plains Agreement No. 18-04).

Approval of actions concerning academic employees of the West Plains Campus (West Plains Personnel No. 222-04).

Approval of actions concerning non-academic employees of the West Plains Campus (West Plains Personnel No. 223-04).

Approval of amendments to the Code of Student Rights and Responsibilities for the West Plains Campus (West Plains Student Policies No. 7-04).

Moved by Ms. Sheid. Seconded by Mr. Duggan.

Motion passed 7-0.

6. Student Affairs:

a. Report from Student Body President --- Mr. Chris Curtis, President of the Student Body, reported that they just completed a very successful Public Affairs Week. SGA registered over 200 new voters.

b. Report from Vice President for Student Affairs: Dr. Don Aripoli, Vice President for Student Affairs, presented a resolution (Student Policies No. 79-04) approving an Emergent Accident, Injury, and Illness Benefit Programs for students. In the past, we took some of the student health fee money and purchased this type of emergency health insurance. This resolution authorizes us to self-fund this type of coverage and the profits are kept in the Student Health Center reserve. Moved by Ms. Sheid and seconded by Mr. Darr.

Motion passed 7-0.

Dr. Aripoli then presented a resolution (Future Projects No. 70-04) to proceed with plans for the Centennial Legacy Passage east of the Robert W. Plaster Student Union. The plan is to have multiple bronze plaques on the concrete wall focusing on the University's history since 1905, with space for additional plaques to be added to cover future years. Moved by Ms. Sheid and seconded by Mr. Franks.

Motion passed 7-0.

7. Staff Senate Report --- Dr. Diana Garland, Chairperson-elect of the Staff Senate, reported that this year a Staff Excellence in Service Awards Program will be funded to award each of six staff finalists $1,500 for "exceptional service to the University."

8. Report from the President --- Dr. John Keiser reported that the SMSU Department of Agriculture will be hosting the annual meeting of the American Association of State Colleges of Agriculture and Renewable Resources from October 13 to October 15. On October 15th, they hope to have a Missouri wine tasting reception in the Meyer Alumni Center. He asked the Board if they would approve having alcohol at such an event. Mr. Carlson questioned that this appears to be something that the President of the University should be able to approve without coming to the Board for approval. Mr. John Black, General Counsel, indicated that this type of delegation can be developed and presented to the Board for their approval. Mr. Franks moved to allow this wine tasting event on October 15th. Seconded by Mr. Duggan.

Motion passed 7-0.

He then mentioned that the health insurance topic that will be discussed later today is a budgetary challenge. Dr. Keiser reminded the Board that the Operating and Capital Budgets have already been approved and submitted to the State for Fiscal-Year 2006. He reminded the Board that per student funding at SMS is well below the State average. He added that there has been talk about a State imposed cap on student fee increases this next year.

Dr. Keiser next reported that Dr. Jim Baker, Assistant to the President, just returned from a ten-day trip to China with the Springfield Chamber of Commerce. The Chamber has already signed a couple of agreements with Chinese cities. At the October meeting, there will be a formal report on China to address some additional agreements that have been established.

Dr. Keiser ended his report by commenting on the many Centennial events that have been and will continue to be scheduled.

Mr. Carlson questioned, that concerning health care issues and salary issues, what do the faculty and staff have a right to expect from the Board. It is different to analyze individual resolutions in an overall context. He mentioned that the City of Springfield has a policy that no more than 75% of the budget is to be spent on salary and benefits. This will protect the infrastructure from being ignored. This could impose some discipline on the process.

9. Finance:

a. Development Report --- Mr. Greg Onstot, Vice President for University Advancement, first mentioned that the Board approved the naming of the dining hall between Hammons House and Hutchens House as the Garst Dining Hall. To be consistent with the other facilities on campus, it was decided that the Garst Dining Center would be more consistent. He contacted Mr. and Mrs. Garst and they have no problem with using "Center." He then presented the Development Report for the two months ending August 31, 2004 which showed that we are up about $262,000 in total gift dollars compared to this time last year. Our capital campaign totals are at $38,799,000.

b. Financial Report --- Mr. Kent Kay, Associate Vice President for Finance, distributed a copy of the Appropriations Request for FY06 which had previously been approved by the Board.

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

Purchases exceeding $25,000 from August 20, 2004 through September 2, 2004 (Purchasing Activity Report No. 249-04).

Purchases exceeding $25,000 from September 3, 2004 through September 16, 2004 (Purchasing Activity Report No. 250-04).

Moved by Mr. Darr and seconded by Mr. Duggan.

Motion passed 7-0.

10. Facilities and Equipment --- Mr. Greg Burris, Vice President for Administration & Finance, next presented the following resolutions for the Board's consideration:

Approving the September 6, 2004 Building Report (Building Report No. 138-04).

Approving the Activity Report for the month of August 2004 (Activity Report No. 141-04).

Replacement of the dance floor in room 203 at McDonald Hall & Arena (Bids & Quotations No. 1132-04); Kenmar Construction, Inc., low bid of $53,497 for the base bid; total project budget established at $70,000.

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

Motion passed 7-0.

11. Human Resources ---Mr. Burris next presented the following resolutions:

Actions concerning academic employees (Human Resources No. 1147-04).

Actions concerning non-academic employees (Human Resources No. 1148-04).

Approving the expanded use of automated external defibrillator units on the Springfield Campus (Policies & Procedures No. 100-04).

Moved by Mr. Darr. Seconded by Ms. Washington.

Motion passed 7-0.

He then presented a resolution (Bids & Quotations No. 1133-04) approving the group term life insurance and group long-term disability insurance contract. The Hartford Life Insurance Company will be awarded the contracts for the period of January 1, 2005 through December 31, 2007. Three one-year extensions at the option of the University are available. Moved by Mr. Duggan and seconded by Mr. Franks.

Motion passed 7-0.

Mr. Burris next reported that the purchasing threshold approval change from $25,000 to $100,000 will be brought to the Board in October.

Mr. Burris then presented a resolution (Human Resources No. 1149-04) approving amendments to the University's medical insurance plan. He explained that he would like to discuss this resolution at today's meeting, but that the Board can wait until next month to vote on the resolution. He explained that health care costs increased 38.4% in 2002 and 14.6% in 2003. He further explained that in FY95 our health care costs were 3.72% of our operating budget. Last year, they consumed 6.16% of our operating budget. The proposed family premium increase would result in a medical insurance annual premium cost of $3,552 and in a dental insurance annual premium cost of $438. The family medical and dental premiums have not gone up since January 1, 2001. He further reported that the plan changes made last year have saved about $300,000 this year. Our consultants project our plan to lose about $550,000 this year (calendar year 2004) – it would have been about $850,000 if the plan changes had not been made. On July 31, 2004 our insurance reserve was about $1.7 million – the recommended reserve, using industry standards, should be about $2.8 million. The projected $550,000 loss will result in a reserve of about $950,000 at December 31, 2004. Estimated outstanding claims at that point will be about $1.3 million. Even if we increase the university's contribution by 13.5% next July, our consultants estimate that our plan will lose about $250,000 to $300,000. Mr. Burris explained that what we have been doing the last few years is "tweaking" the plan – we need to look at more drastic measures. We need to be more proactive on the cost side of this problem.

Mr. Carlson commented that he would like to see about two or three choices presented that the Board can choose from. Mr. Duggan remarked that the Board needs to set some goals for the health plan – for example, we want three months worth of reserves, we want the retirees to pay a certain percentage of their costs, etc. The Board should set the goals and the committee can establish a plan to get there. Mr. Franks indicated that we have to deal with the cost side of this problem. He also remarked that each of the separate groups in the plan should have fiscal integrity – within five years, the retiree group should be self supporting. Dr. Burns commented that she would like to appoint Mr. Duggan and Mr. Carlson to work with Mr. Kay and Mr. Burris to establish some goals for the committee to work with. It was decided that there was no need to wait until the October meeting to vote on the resolution presented today. Mr. Duggan moved to approve the resolution presented. Ms. Washington seconded the motion.

Motion passed 7-0.

12. Unfinished Business --- Mr. Franks next reported on the presidential search process. We are in the advertising phase of the project. Applications and nominations have been coming in. November 8, 2004 is the deadline for full consideration of applicants and then the committee will meet on November 20th to screen the pool to about 18 applicants. Shortly after the first of the year, we hope to have the pool down to about 8 applicants. The ultimate goal is to recommend 3 finalists to the Board in February.

13. New Business --- Mr. Franks then reported that there is a chance for the Board to have a role in the Centennial. He then commented that there are some past presidents who have buildings named in their honor. We are now in a position of having naming rights to buildings tied to gifts so we will probably not be able to name buildings after presidents any more. There are some past presidents who have not been honored and the Centennial would be a good time to address this. Mr. Franks commented that there are four projects that the Board could sponsor during the Centennial and honor four presidents. He presented a resolution (Awards No. 9-04) that summarized the four projects:

1) Rename the Parliamentary Room in the Robert W. Plaster Student Union the "Leland E. Traywick Parliamentary Room" in recognition of Dr. Traywick's introduction of shared governance, including the establishment of the Faculty Senate, during his Presidency from 1961-64;

2) Develop and name the Arthur L. Mallory Plaza at the north end of the North Mall in recognition of Dr. Mallory's seven years as President from 1964-1971;

3) Develop and name the Marshall Gordon Plaza just west of Carrington Hall to Kings Street in recognition of Dr. Gordon's nine years as President from 1983-1992; and

4) Develop and name the John H. Keiser Plaza and Amphitheater just east of Strong Hall, which includes the Public Affairs Statue, in recognition of Dr. Keiser's soon-to-be 12 years as President from 1993-2005, the third longest in the history of SMS.

Mr. Doug Sampson, University Architect, then showed some drawings of each of these projects, as well as the Centennial Legacy Passage presented by Dr. Aripoli earlier today.

Mr. Duggan moved the approval of the resolution. Ms. Sheid provided a second to the motion.

Motion passed 5-0 (Mr. Carlson and Ms. Washington had left the meeting).

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. 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 September 17, 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.

15. Date of Next Meeting --- The date of the next regularly scheduled meeting was set for October 22, 2004.

16. Adjournment--- Dr. Burns adjourned the meeting at 11:35 a.m. on the motion of Mr. Darr, the second of Mr. Franks, and the unanimous vote of the Board.

John W. McAlear