March 16, 2016 - Board of Governors

MINUTES OF THE EXECUTIVE COMMITTEE
OF THE BOARD OF GOVERNORS
MISSOURI STATE UNIVERSITY
MARCH 16, 2016

1. Roll Call:
Present

Mr. Joe Carmichael, Vice Chair of the Board
Ms. Virginia Fry, Governor (by conference call)
Dr. Peter Hofherr, Chair of the Board (by conference call)
Ms. Carrie Tergin, Governor (by conference call)

Also Present

Mr. Clif Smart, President
Ms. Beverly Miller, Governor (by conference call)
Dr. Drew Bennett, Chancellor of the West Plains Campus (by conference call)
Ms. Donna Christian, Director of Internal Audit & Compliance
Mr. Jeff Morrissey, Chief Information Officer
Mr. Doug Sampson, University Architect and Director of Planning, Design and Construction
Mr. Ryan DeBoef, Chief of Staff
Mr. Steve Foucart, Chief Financial Officer
Ms. Rachael Dockery, General Counsel
Mr. Brad Kielhofner, Director of Facilities Management
Mr. Gary Stewart, Director of Residence Life, Housing and Dining Services
Ms. Lynn McKenzie, Interim Director of Human Resources
Ms. Paula Wilhelm, Assistant Director of Human Resources, Employee Development and Performance
Ms. Theresa McCoy, Coordinator of Management Information Systems
Mr. Terry Weber, Director of Plaster Student Union
Ms. Tanya Smith, Buyer-Technology, Procurement Services
Mr. Scott Schneider, Director of Business & Support Services, West Plains Campus
Mr. James McTavish, Associate Director of Planning, Design and Construction
Mr. Matt Morris, Vice President for Administrative Services
Mr. John W. McAlear, Secretary of the Board

2. Presiding – Dr. Peter Hofherr, 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 – Dr. Hofherr mentioned that the first item of business was the approval of the minutes for the open meeting of February 17, 2016. Ms. Tergin so moved, receiving the second of Mr. Carmichael.

Motion passed 3-0.

4. President --- President Clif Smart presented a resolution (Fees No. 147-16) for the approval of the 2016-2017 Fee Resolution which covers fall 2016, spring 2017, and summer 2017. He reminded the committee members that this resolution was reviewed in detail in the February 5, 2016, Finance & Facilities Committee meeting. He summarized that we have been looking at two scenarios for next year’s fees, dependent on the FY2017 state appropriation increase for Missouri State University. If the University’s appropriation is increased 6%, as recommended in Governor Jay Nixon’s proposed budget, Undergraduate Missouri Resident tuition per credit hour and Student Service Fees would stay flat and not be increased. If the appropriation increase for the University is less than 6%, these rates would be increased by the CPI (State law limits fee increases for Undergraduate Missouri Residents to CPI). Budget discussions in Jefferson City are showing that it is very unlikely that we will see a 6% appropriation increase. The language in the 2016-2017 Fee Schedule covers both scenarios. President Smart reported that the .7% CPI increase relates to Undergraduate Missouri Resident tuition increasing $1 from $205 to $206 per credit hour. Undergraduate Non-Missouri Resident and Graduate rates are set at 1.4% increases. Student Services Fees are increased $8 per semester which is the full amount of the .7% increase per CPI. Language is included that says the respective $1 and $8 increases are waived if the University’s appropriation is increased 6%. For the West Plains Campus, Undergraduate Missouri Resident Tuition increases $2 from $119 to $121 per credit hour. The West Plains Undergraduate Non-Missouri Resident Tuition increases $4 from $238 to $242. The $2 increase for Undergraduate Missouri Residents is waived if the appropriation is increased 6%. Mr. Steve Foucart, Chief Financial Officer, added that the Fee Schedule includes a new required student fee commencing in the fall of 2017 – a $29 per-semester capital improvement fee for the Auxiliary System (the student-approved fee for the new health center). This relates to our 2017-2018 Fee Schedule but is included here since we are developing the architectural plans for the facility and will be requesting board approval for a construction contract this fall.

Moved by Ms. Fry and seconded by Ms. Tergin.

Motion passed 3-0.

5. West Plains Campus --- Dr. Drew Bennett, Chancellor of the West Plains Campus, first presented a resolution (West Plains Campus Awards No. 6-16) approving Laurel Thompson as the recipient of an Honorary Associate of Science degree from Missouri State University-West Plains. He has been a West Plains booster since he was a young man and has worked tirelessly for decades for economic development and community betterment, in the broadest sense of the term. Mr. Thompson has supported and been involved with the West Plains campus since its inception in 1963 as the West Plains Residence Center. Moved and seconded, respectively, by Mr. Carmichael and Ms. Fry.

Motion passed 3-0.

Dr. Bennett then presented the following resolutions for the Committee’s consideration:

Approval of the deletion of the Associate of Applied Science in Allied Health Degree (West Plains Curriculum No. 76-16). This degree has experienced low student interest. Also, with changes in degree requirements at the baccalaureate level for healthcare programs, this degree does not offer the necessary coursework for the graduate to transfer this degree to another specialized healthcare program.

Approval of the new academic program for the Associate of Arts in the Health Professions (West Plains Curriculum No. 77-16). This degree will be beneficial to students planning to become a Physician Assistant, Physical Therapist, or other related health professional as it constitutes the first two years of four-year programs in those professions. Students have indicated strong interest in this degree on recent surveys. Also, students who complete this degree will also have completed the 42-hour general education block for Missouri State University-West Plains.

Moved by Ms. Tergin and seconded by Mr. Carmichael.

Motion passed 3-0.

6. Facilities and Equipment --- Mr. Matt Morris first presented a resolution (Bids & Quotations No. 1512-16) for the renovation of the bathrooms in Blair Tower of Blair-Shannon House. The low bidder, Carson-Mitchell, Inc., is being recommended at a cost of $1,211,250 for the base bid plus alternates 1 and 2. The total project cost is set at $1,616,750. Moved and seconded, respectively, by Ms. Fry and Ms. Tergin.

Motion passed 3-0.

Mr. Morris next presented a resolution (Bids & Quotations No. 1513-16) for the phase I improvements to the district chilled water system. The low bidder, Mechanical Services, Inc., is being recommended at a cost of $846,000 for the base bid plus alternates 1 and 2. The total project budget is set at $1,395,000. He indicated that phase I will extend chilled water distribution piping across the northwest quadrant of campus from the Cherry Street chiller building to Clay Street and across the southwest quadrant of campus from Glass Hall to the Strong Hall tunnel. The air conditioning equipment in Kings Street Annex will also be replaced and connected to the district chilled water system. Phase II will include an additional 1,000-1,200 tons of cooling capacity installed at the Cherry Street Chiller building. The existing chiller building and cooling tower screening will be expanded and the Art Annex will also be connected to the district chilled water system. Phase II is expected to be completed in the summer of 2017. The project will be paid from the District Chilled Water Improvements budget funded from proposed capital lease obligations ($1,395,000). Moved by Ms. Fry. Seconded by Mr. Carmichael.

Motion passed 3-0.

7. Procurement and Financial --- Mr. Foucart first presented a resolution (Finance No. 1053-16) authorizing the issuance or incurrence of an energy cost savings capital lease and related lease obligations in a principal amount not to exceed $3,500,000 to provide funds to finance certain additions, renovations and extensions to facilities of the University and prescribing the security therefor; and prescribing other matters relating thereto. He indicated that during the October 21, 2015, Executive Committee meeting, we discussed an expansion of the chilled water loop system and the Committee approved an intent resolution towards issuing a capital lease to finance this project. The existing chilled water loop system was refinanced in May 2013 with Banc of America Public Capital Corporation. This lease is paid off in September 2020, with a current outstanding balance of $5.1 million. Banc of America has agreed to provide an additional capital lease in the amount of $3.5 million to finance the current phase I and the upcoming phase II expansion. An escrow account will be established to draw down funds as the project progresses. The term will be through September 2024 at a rate of approximately 2.22%. Gilmore & Bell, University bond counsel, will assist in the closing, with an anticipated closing date of April 1. Moved and seconded, respectively, by Mr. Carmichael and Ms. Fry.

Motion passed 3-0.

He next presented a resolution (Purchasing Activity Report No. 434-16) summarizing Procurement Services’ activities from February 12, 2016, through March 9, 2016, for six items:

The first two items are requests to renew temporary housing leases for visiting international faculty at The Jefferson Apartments and the Deep Elm Apartments for a total of six units. The total lease payments for the two contracts are, respectively, $10,800 and $21,600.
Approval is requested to extend our disaster restoration and recovery services for one additional year with ServiceMaster and with BMS CAT. Costs are based upon the extent of services required for a disaster event and we request approval in anticipation that future costs could exceed $100,000.
Approval is requested to amend our contract with Chartwells to replace Red Mango, a smoothie food venue in the Plaster Student Union, with the Burrito Bowl, and its mainstays of rice bowls, burritos, quesadillas, salads, and street tacos. The on-campus sampling for students and staff was a success. The estimated total cost for this new venue is $200,000, which Chartwells’ 2017 investment dollars will fund. The actual construction costs and plans will be presented at a later date.
Approval is requested to enter into contracts with Grime Scrubbers and ServiceMaster to provide our annual deep cleaning of residence life halls. Both companies have been providing this service for at least the past 15 years. Approval is requested for the original contract period, May 1, 2016, through April 30, 2017, and four one-year renewal option periods for an estimated five-year cost of $1,089,300. The contract provides for up to 2%-per-year escalation in the renewal years.
Approval for a new Professional Learning Management System (PLMS). The University’s current tools in this area are very inadequate, and the vendor of the current PLMS has announced they will no longer provide the system as of June 1, 2016. A quality PLMS is a key resource to keep the University’s workforce trained in current skills and comply with federal/state regulatory mandates. An evaluation committee, with assistance from the Office of Procurement Services, solicited and evaluated responses from prospective vendors. At the conclusion of the Request for Proposal process, the evaluation committee unanimously recommended the Ellucian Cornerstone PLMS with an estimated five-year cost of $474,100.

After a short discussion, Ms. Fry offered a motion to approve. Ms. Tergin seconded the motion.

Motion passed 3-0.

8. Adjournment — Dr. Hofherr adjourned the conference-call meeting at 4:50 p.m. on the motion of Ms. Fry, the second of Ms. Tergin, and the unanimous approval of the committee.

John W. McAlear
Secretary of the Board