MINUTES OF THE EXECUTIVE COMMITTEE
OF THE BOARD OF GOVERNORS
MISSOURI STATE UNIVERSITY
June 19, 2013
1. Roll Call:
Present - Mr. Peter Hofherr, Governor (by conference call)
Mr. Steve Hoven, Governor (by conference call)
Mr. Orvin Kimbrough, Chair of the Board (by conference call)
Ms. Beverly Miller, Vice Chair of the Board (by conference call)
Also
Present - Clif Smart, President (by conference call)
Ken McClure, Vice President for Administrative and Information Services
Steve Foucart, Chief Financial Officer
Tina McManus, Controller
Penni Groves, General Counsel
Paul Kincaid, Chief of Staff
Mark McCarty, Printing Services Manager
Julie Dubinsky, Assistant Director of Human Resources
Doug Sampson, University Architect and Director of Planning, Design and Construction
John McAlear, Secretary of the Board
2. Presiding – Mr. Orvin Kimbrough, Chair of the Board of Governors, called the Executive Committee conference-call meeting to order at 4:00 p.m. in Room 203 of Carrington Hall on the campus of Missouri State University in Springfield, Missouri.
3. Approval of Minutes – Mr. Kimbrough mentioned that the first item of business was the approval of the minutes for the open meeting of May 15, 2013. Mr. Hofherr so moved, receiving the second of Mr. Hoven.
Motion passed 3-0.
4. President – Mr. Paul Kincaid, Chief of Staff, presented a resolution (Item III.A.) for the approval of renewing the University’s contract with Jerry Burch for state governmental services. This past legislative session was a very successful one for Missouri State, one of many we have had with Mr. Burch over the past 23 years. As detailed in the advance materials, this is a one-year contract that includes a 2% increase in the fee, which is consistent with the increase for faculty and staff – there is no change in the supplemental fee that helps support our Legislative Intern Program. He further explained that in recent years, he has had discussions with Mr. Burch about the need for a transition year at some point – we have agreed that 2013-14 will be that transition. As a starting point, for this year, we have invited Mr. Burch to involve others as they work on our account. After the end of the 2014 legislative session, we anticipate issuing an RFP for governmental relations services – and, if we do, we would expect that it would be a multi-year contract (maybe a three-year agreement with two or three renewal year options). Motion to approve the 2013-14 agreement with Mr. Burch was made by Mr. Hoven and seconded by Ms. Miller.
Motion passed 3-0.
5. Procurement and Financial – Mr. Steve Foucart, Chief Financial Officer, then presented a resolution summarizing Procurement Services Office activities from May 11, 2013, through June 14, 2013 (Item IV.A.). The items included in this report are:
1) Recommend approval to process an estimated payment of $474,270 to Marsh USA, Inc., for the buildings and contents insurance premium and service fees for the period July 1, 2013, through June 30, 2014. This is approximately 13% lower than the current year. Coverage is negotiated by the Midwestern Higher Education Compact (MHEC), as provided through Missouri Revised Statutes 173.700, and is cooperatively administered by MHEC’s Master Property Program (MPP) on behalf of higher education institutions in eleven member states. All public universities in Missouri participate in this program. MHEC does bid the contract for Marsh and the insurance carriers. The university has about $1 billion of coverage.
2) A Request for Proposal (RFP) was issued to procure a Digital Color Printing Press for Printing Services. The RFP required a six-year lease with a one-dollar buyout at the end of the term, a service and maintenance agreement, and a cost per copy agreement per month (usage fee). Five vendors were solicited, and three vendors responded with proposals. The respondents were Hewlett-Packard, Ricoh, and Xerox. Recommendation is to award the contract to Ricoh, the lowest cost and highest scored proposal. The estimated cost for the six years is about $895,219. The estimated annual equipment lease, support plan and usage fee is $149,203. The minimum annual equipment lease and support plan is $75,203. Printing Services and Administrative Services has done an excellent evaluation of the revenue potential and have conducted a focus group to discuss what a digital color press could do for the departments, all with positive input on the new press. This new press will provide additional marketing capabilities to attract new students. The digital color press will enhance what Printing Services could offer by allowing the department to produce high quality, short-run to medium-run color print jobs. University costs could be reduced by capitalizing on a new ability to produce work in-house rather than continuing to outsource.
3) While the next item is informational only, we did want to review the item since it is covered under a governing policy. Pursuant to University Policy G8.04 Investment Policy, investment purchases and sales will be through a competitive bid process. Until the first of the calendar year, the University has been able to achieve above-market rates from CD deposits through the Certificate of Deposit Account Registry Service (CDARS). These above-market rates no longer exist. After discussions with multiple banks, we determined we can achieve the best available rates from any bank as long as we invest in approximately $10 million+ increments. As a result, the University issued an RFP for Cash Investment Management Services under the terms of our Investment Policy. Twenty-two bids were received and based upon the terms of the RFP, it is recommended that we award the bid to BancorpSouth for a two-year term with three optional one-year renewals. Estimated annual costs of providing the custodian account to hold securities and management strategy in accordance with the University’s investment policy is $30,000 annually. The next lowest cost was $17,000 higher than BancorpSouth. MSU’s primary objectives for managing its investment portfolios are legality, safety, appropriateness, and yield for our various fund groups. Permitted investments are collateralized Certificates of Deposit; U.S. Treasury and Federal Agency Securities; and corporate bonds and commercial paper. BancorpSouth will invest approximately $85 million in typically amounts $10 million+ in various U.S. Treasury and Federal Agency Securities currently out to September 2014. BancorpSouth will provide various investment options, per our policy, as investments are to be made.
Since the third item in the Procurement Activity Report was for information purposes only, Mr. Kimbrough asked for a motion to approve this resolution for the buildings and contents insurance premium and the printing press. Moved by Ms. Miller. Seconded by Mr. Hofherr.
Motion passed 3-0.
6. Facilities and Equipment --- Mr. Ken McClure, Vice President for Administrative and Information Services, next presented the following resolutions for the Committee’s consideration:
Award of a contract for the FY14 Job Order Contracting Services (Item V.A.); Kenmar Construction, Inc., the cumulative total of all individual projects awarded under this contract may not exceed $300,000 per fiscal year with the maximum expenditure per project not to exceed $50,000. Included in the contract is the option to renew the contract for four additional consecutive fiscal years. Four proposals were received for this service but three were rejected due to being invalid proposals.
Award of a contract for the FY14 Job Order Contracting Services – Mechanical Repair & Replacement (Item V.B.); WMC, Inc., the cumulative total of all individual projects awarded under this contract may not exceed $300,000 per fiscal year with the maximum expenditure per project not to exceed $95,000. Included in the contract is the option to renew the contract for two additional consecutive fiscal years. Three proposals were received for this service but two were rejected due to being invalid proposals.
Moved and seconded, respectively, by Mr. Hofherr and Ms. Miller.
Questions were asked about the invalid proposals received on both contracts. Mr. McClure explained that one proposal was not signed and the other proposals declared invalid did not meet other bid/bond requirements. He added that we have had good experience with both contractors selected. Mr. Hoven asked what would have happened if we had not had good work experience with either of the two contractors. Mr. Doug Sampson, University Architect and Director of Planning, Design and Construction, explained that the University always has the option to reject all bids. For these two contracts, we could just stop using the contract if we are unhappy with the work being performed. Neither contract guarantees that their services will be used.
Motion passed 3-0.
7. Human Resources – Mr. McClure next presented a resolution (Item VI.A.) for the approval of voluntary benefits platform and program provided by Keeler and Associates and including, as some products, those offered by Allstate Insurance Company. This resolution will allow Missouri State to become more competitive with its peer institutions by offering expanded voluntary benefits. A voluntary benefits program allows employees to develop their own benefit packages to suit their own needs. There will be no cost to the University. Employees pay their own premiums and are able to do so by payroll deduction. He explained that the desire is to offer a variety of voluntary benefits to its employees, including but not limited to Accident Insurance, Critical Illness Insurance, and Vision Insurance. Moved and seconded, respectively, by Mr. Hofherr and Mr. Hoven.
Motion passed 3-0.
8. Adjournment — Mr. Kimbrough adjourned the conference-call meeting at 4:26 p.m. upon the motion of Mr. Hoven, the second of Mr. Hofherr, and the unanimous vote of the committee.
John W. McAlear
Secretary of the Board