February 18, 2005

MINUTES OF THE BOARD OF GOVERNORS
SOUTHWEST MISSOURI STATE UNIVERSITY
FEBRUARY 18, 2005

1. Roll Call

Present- Dr. Barbara Burns, President of the Board
Mr. Thomas Carlson, 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

Absent- Mr. William Darr, Governor

Also
Present- John Keiser, President
Kent Thomas, Chancellor of the West Plains Campus
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 regular meeting and closed committee meeting of January 21, 2005. Ms. Sheid moved to approve the minutes as presented. Mr. Duggan seconded the motion.

Motion passed 5-0-1 (Mr. Carlson was out of the room).

4. Report from the President --- Dr. John Keiser began by reporting that in yesterday's USA Today, Ms. Kelli Wolf was mentioned as an honorable mention selection for USA Today's 2005 college academic team.

He then reminded the Board that at their last meeting they had approved a new title and a two-year term for Dr. Jim Baker as the Vice President for Research & Development and Chancellor of the Mountain Grove Campus. He then distributed copies of the employment contract between Dr. Baker and the University. Dr. Burns asked for a motion to approve the employment contract. So moved by Mr. Duggan and seconded by Mr. Franks.

Motion passed 6-0.

Dr. Keiser then asked General Fred Marty to bring the Board up to date on the Jordan Valley Innovation Center project. General Marty reported that we are moving with the purchase of the former MFA complex from the City of Springfield. Phase I of JVIC is to renovate buildings 1 and 2 with SMSU to occupy four floors and private research firms to occupy four floors. The overall cost of Phase I is estimated to be $15.25 million plus anticipated investment by private research firms to build-out specific floors for their use. The first increment of Phase I ($10.85 million) will be funded by the $7.64 Department of Defense grant and $3.21 million in SMSU revenue bonds. We have requested another $4.4 million in FY06 grant monies to complete the entire Phase I project. General Marty then explained that an additional $7.5 million in FY06 grant monies has been requested to complete Phase II to create an advanced manufacturing capability in buildings 3 and 5 of the former MFA complex. JVIC Phase III would be for building 4 and this would be for additional research and manufacturing. A projected cost of $10.8 million would be funded by a future request of federal funding. General Marty next reported that we are needing to renovate Kemper Hall to accommodate research for current grant-funded efforts until JVIC Phase I is operational. Kemper Hall Phase I was approved last month for $220,000. Kemper Hall Phase II would approximate $610,000 and will be brought to the Board in the near future. A third Kemper Hall project to accommodate space for experimental manufacturing processes until JVIC Phase II is completed is estimated to cost $380,000.

Dr. Jim Baker, Vice President for Research & Development, next reviewed a couple of annual performance measures with the Board. Dr. Bill Cheek gave a status report on the Higher Learning Commission Self-Study and 2005 Site Visit (November 2005) preparation. Dr. Keiser then added that we are continuing to have discussions with the Forest Institute regarding a merger.

Dr. Keiser then distributed copies of Senate Bill No. 98 which changes the name of SMSU to Missouri State University and which was passed by the Senate (25 to 7) this week. He informed the Board that the Bill also increases the number of our Governors from eight to ten (nine voting members plus a student member). If it passes, the effective date of the name change is August 28, 2005.

Dr. Keiser next commented on the FY06 budget. He added that we will be lucky to hold a flat budget from the Governor this year. He commented that we will bring a student fee increase to the Board in March – we are looking at an increase of about 6.6% to 6.7%. This increase would only cover scholarships, fringe benefits, and a 2% salary increase. Dr. Don Aripoli, Vice President for Student Affairs, explained the Enrollment Management committee and process on evaluating potential fee increases. He remarked that we feel this is about as high as we think we can go this year. Ms. Washington asked that prior to next month, some consideration be given to a 3% salary increase. She believes that we might start losing our top employees. Mr. Duggan commented that we need a long-term plan on how we can get our faculty salaries back to market. Mr. Carlson asked what we would need to cut to attain a 3% salary increase for next year.

Dr. Lorene Stone, Dean of the College of Humanities and Public Affairs, next gave a progress report on the move of the Defense and Strategic Studies department to the Washington D.C. area. The National Institute on Public Policy (NIPP) will hold the ten-year lease on the Hunter's Branch facility and SMSU will sub-lease space (4,830 square feet) from NIPP. The annual lease cost is $23.50 per square foot. However, there is an inflation escalator of 3% each year. We had previously reported a lease cost of $1,486,000 over a ten-year period but the present projection is $1,713,000 that is an increase of $227,000. Dean Stone added that the CBHE has approved the relocation. A firm resolution will be prepared for Board approval at the March meeting.

5. Educational:

a. Faculty Senate Report --- Dr. Lois Shufeldt, Chairperson for the Faculty Senate, first commended the Board for putting together a wonderful process regarding the search for Dr. Keiser's replacement. She has heard nothing but positive remarks about the entire process and the input sought from the university community. She reported that Kelli Wolf and Chris Curtis attended Faculty Senate yesterday on their Public Affairs minor initiative. Dr. Shufeldt commented that they will be sending this proposal to the academic relations committee for their options on how to achieve a Public Affairs minor.

b. Report from Vice President for Academic Affairs --- Dr. Bruno Schmidt, Vice President for Academic Affairs, presented a resolution (Faculty Policies No. 112-05) approving the guidelines for University and College recognition awards for 2004-2005. Moved by Ms. Sheid and seconded by Mr. Franks

Motion passed 6-0.

He next presented the following resolutions for the Board's
consideration:

Establishing a new program – Bachelor of Science in Construction Management (Curriculum No. 272-05).

Establishing a new program – Bachelor of Science in Logistics and Transportation (Curriculum No. 273-05).

Approving new options for the Bachelor of Science in Industrial Management (Curriculum No. 274-05).

Moved by Mr. Duggan. Seconded by Mr. Franks.

Motion passed 6-0.

He then presented the following resolutions to the Board:

Approving a new name for the Department of Sociology and Anthropology – the Department of Sociology, Anthropology, and Criminology (Curriculum No. 275-05).

Approving a new name for the Department of Consumer and Family Studies – the Department of Applied Consumer Sciences (Curriculum No. 276-05).

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

Motion passed 6-0.

Dr. Schmidt ended his report by presenting a resolution (Agreement No. 152-05) approving the VESTA Cooperative Agreement for Southwest Missouri State University. Moved by Mr. Duggan receiving the second of Ms. Sheid.

Motion passed 6-0.

6. West Plains Campus:

a. Report from the West Plains Campus --- Mr. Kent Thomas, Chancellor of the West Plains Campus, presented the following resolutions for the Board's consideration:

Approval of Addendum to amended lease with Fybar Service Corporation (West Plains Campus Agreement No. 20-05).

Approval of actions concerning academic employees of the West Plains Campus (West Plains Personnel No. 230-05).

Approval of actions concerning non-academic employees of the West Plains Campus (West Plains Personnel No. 231-05).

Approval of changes to the SMSU-West Plains policies and procedures regarding Student Academic Integrity (West Plains Student Policies No. 8-05).

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

Motion passed 6-0.

7. Student Affairs:

a. Report from Student Body President --- Mr. Chris Curtis, President of the Student Body, reported that there are three fees that SGA will be taking a close look at: 1) SCUF (Student Computer Usage Fee) funding – no more than a $10 per student per semester increase and maybe just a $7 to $8 increase; 2) an SGA fee that will help fund SGA operating expenses; and 3) an art fee that will help place public art around the campus.

b. Report from Vice President for Student Affairs--- Dr. Don Aripoli, Vice President for Student Affairs, summarized the room and board rate increase that will be presented later in today's meeting by Mr. Kay. The room portion of the fee is recommended to increase by 5%, the board portion by 4.5% for an overall increase of 4.87%. This proposed increase will still keep us about the fourth lowest in the state as far as room and board rates.

8. Staff Senate Report --- Dr. Diana Garland, Chairperson of the Staff Senate, reported that the Staff Senate passed a resolution supporting an active and comprehensive feasibility study for the purpose of providing a state-of-the-art recreation and wellness facility for utilization by all members of our University community.

9. Finance:

a. Development Report --- Ms. Judi Smith, Director of Development, presented the Development Report for the seven months ending January 31, 2005. At this point in the year, we are down about $314,000 when compared to last year. Our capital campaign total as of the end of January was $45,987,577.

b. Financial Report --- Mr. Kent Kay, Associate Vice President for Finance, first presented a resolution (Finance No. 982-05) approving the issuance of $32,850,000 auxiliary enterprise system revenue bonds, series 2005A. These bonds will "refund" Auxiliary Enterprise System Revenue Bonds, Series 1997A and Auxiliary Enterprise System Revenue Bonds, Series 1999A. We will also be able to place $3,767,200 into a construction account for the Intermodal Transfer Facility on the corner of Grand and Holland Streets. He commented that our actual debt payment, even with the new money, will be less than if we did not issue these new bonds. Mr. Alan Wright of Edward D. Jones explained that the average interest rate for the twenty-year financing is 3.44%. The true interest cost, taking into account the underwriter's discount, brings it up to 3.62%. He explained that when you consider that we are refinancing two different issues, the real value of this savings in today's dollars is about $2.4 million.

Mr. Kay then asked for a motion to approve Finance No. 982-05. So moved by Ms. Sheid and seconded by Mr. Franks.

Motion passed 6-0.

Mr. Kay next presented the January 31, 2005 financial statements for the Board's review. He then presented the 2005-2006 Housing Fee Schedule resolution that had been mentioned by Dr. Aripoli earlier in today's meeting (Fees No. 121-05). Moved by Mr. Franks. Seconded by Mr. Duggan.

Motion passed 6-0.

Mr. Kay next presented a resolution (Finance No. 983-05) – reimbursement of expenditures for the Darr Agricultural Center Project, the Jordan Valley Innovation Center Project, and the Forest Psychology Project from proceeds of tax-exempt bonds. We have planned for some time to issue bonds on the Darr Agricultural Center Project and the Jordan Valley Innovation Center Project. These bonds will probably not be tax exempt because there is federal grant money being used and we will be leasing space to for-profit companies in the JVIC project. This resolution will allow us to reimburse ourselves for costs incurred after today and before the issuance of bonds for these projects. Moved by Mr. Duggan and seconded by Ms. Sheid.

Motion passed 6-0.

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

Purchases exceeding $100,000 from January 21, 2005 through February 4, 2005 (Purchasing Activity Report No. 258-05).

Purchases exceeding $100,000 from February 4, 2005 through February 17, 2005 (Purchasing Activity Report No. 259-05).

Moved by Mr. Franks and seconded by Mr. Duggan.

Motion passed 6-0.

10. Facilities and Equipment --- Mr. Greg Burris, Vice President for Administrative Services, first presented a resolution (Land Purchase No. 97-05) approving the purchase of the property formerly known as the MFA property from the City of Springfield for $1. Moved by Ms. Sheid. Seconded by Mr. Duggan.

Motion passed 6-0.

He then presented the following resolutions:

Approving the Activity Report for the month of January 2005 (Activity Report No. 146-05).

Renovation of the bathrooms in Freudenberger House (Bids & Quotations No. 1143-05); Nabholz Client Services, low bid of $990,602 for the base bid plus alternates 1 and 2; total project budget set at $1,239,996.

Approval to increase the project budget for the renovation of the restrooms in Woods House (Bids & Quotations No. 1144-05). This $19,031.08 budget increase will bring the new approved project budget to $2,239,031.08.

Approval to market and sell property located at 1515 S. Fairway, Springfield, Missouri (Land No. 82-05).

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

Motion passed 6-0.

He then presented the following resolutions for the Board's consideration:

Approval of the revised Environmental Management Policy for the Southwest Missouri State University System (Policies & Procedures No. 106-05).

Architectural services in conjunction with the new laboratory in room 116 of Kemper Hall (Architects & Engineers No. 608-05); Ross & Baruzzini, Inc., for a lump sum fee of $55,350 plus reimbursable expenses. Additional services of up to $15,000 as described in this agreement may be authorized and approved as necessary.

Construction of the Arthur L. Mallory Plaza, the Marshall Gordon Plaza, and the John H. Keiser Plaza and Amphitheater (Bids & Quotations No. 1145-05); Bales Construction, low bid of $65,700 for the base bid plus alternate 1; total project budget established at $90,500.

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

Motion passed 6-0.

11. Human Resources --- Mr. Burris then presented the following resolutions for the Board's consideration:

Actions concerning academic employees (Human Resources No. 1160-05).

Actions concerning non-academic employees (Human Resources No. 1161-05).

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

Motion passed 6-0.

12. 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 February 18, 2005 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. Duggan moved the approval of the resolution and Mr. Franks
seconded the motion.

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

Board President Burns declared the motion was passed 6-0-1.

13. Date of Next Meeting --- The date of the next regularly scheduled meeting was set for March 18, 2005.

14. Adjournment--- Dr. Burns adjourned the meeting at 12:25 p.m. on the motion of Ms. Sheid, the second of Mr. Duggan, and the unanimous vote of the Board.