July 30, 2004

MINUTES OF THE BOARD OF GOVERNORS
SOUTHWEST MISSOURI STATE UNIVERSITY
JULY 30, 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

Absent- Ms. Mary Sheid, Governor
Ms. Phyllis Washington, Governor
Ms. Kelli Wolf, Student Governor
Also
Present- 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 F. 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 9:20 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 and closed meetings of June 18, 2004 and the open and closed meetings of July 7, 2004 of a committee of the Board of Governors. Mr. Duggan moved to approve the minutes as presented. Mr. Franks seconded the motion.

Motion passed 5-0.

4. Educational:

a. Report from Vice President for Academic Affairs --- Dr. Bruno Schmidt, Vice President for Academic Affairs, presented the following resolutions for the Board's consideration:

Establishing the Technology Management Graduate Certificate Program in the Department of Industrial Management (Curriculum No. 269-04).

Establishing the Internal Auditing Graduate Certificate Program in the School of Accountancy (Curriculum No. 270-04).

Establishing the Internal Auditing Undergraduate Certificate Program in the School of Accountancy (Curriculum No. 271-04).

Moved by Mr. Franks and seconded by Mr. Carlson.

Motion passed 5-0.

5. West Plains Campus:

a. Report from the West Plains Campus --- Mr. Kent Thomas, Chancellor, reported that he attended the graduation ceremonies at LNU in Dalian, China earlier this month and we had 120 graduates cross the stage. He then presented the following resolutions for the Board's consideration:

Approval of Purchasing Activity Report for the month of June 2004 (West Plains Campus Purchasing Activity Report No. 20-04). This report included the renewal of the cooperative agreement with Missouri Incutech Foundation to provide a Program Director of business and industry training for SMSU-West Plains. The agreement begins on September 18, 2004 and remains in effect for a period of one year.

Approval of actions concerning academic employees of the West Plains Campus (West Plains Personnel No. 219-04).

Approval of an amended lease with Fybar Service Corporation effective December 1, 2003 and expiring November 30, 2008 for a 10,000 square foot building and lot located at 401 E. 17th St., Mountain Grove, Missouri (West Plains Agreement No. 17-04). He explained that this agreement was approved a few months ago but the other party has asked for a change that would cost us an additional $5,183.44. This is a binding contract and we would not need to agree to this but the other party has agreed from the beginning that we could purchase the building at the depreciated cost at the conclusion of the lease. The change is that we will be responsible for paying the county and city taxes and the insurance. Agreeing to this change will maintain good relations with a significant donor to the University.

Approval of actions concerning non-academic employees of the West Plains Campus (West Plains Personnel No. 220-04).

Moved by Mr. Carlson. Seconded by Mr. Darr.

Motion passed 5-0.

6. Student Affairs:

a. Report from Student Body President --- Ms. Lindsay Haymes, Vice-President of the Student Body, reported that they will be having a cabinet retreat next weekend. They will be establishing their work plan for the academic year so they can hit the ground running when school starts.

b. Report from Vice President for Student Affairs: Dr. Don Aripoli, Vice President for Student Affairs, reported that the name of Career Services will be changed to Career Center beginning in August. He then distributed a chart showing the Fall 2004 instructional cost at each of the Missouri public universities. Out of thirteen institutions, we are 6th from the bottom in total cost. He next presented the following resolutions for the Board's consideration:

A resolution amending the Code of Student Rights and Responsibilities (Student Policies No. 78-04). This amendment shows the new fee structure for fines, brings the code in compliance with our expressive activity policy, and changes some of the wording that is used.

A resolution approving a list of ten employees who served SMSU prior to 1950 to be added to the Wall of Fame located on the third floor of the Plaster Student Union (Awards No. 8-04)

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

Motion passed 5-0.

7. Staff Senate Report --- Mr. Phil Nichols, Chairperson of the Staff Senate, gave a report to the Board. He mentioned that at their July meeting, they discussed the idea of subsidized staff child care at the University Child Care Center. He appointed a committee to bring forth a recommendation that will be presented to the University's Fringe Benefit Committee.

8. Report from the President --- In Dr. Keiser's absence, Mr. Thomas presented a resolution (Board Policies No. 34-04) approving procedures for presentations to the Board by the Faculty Senate, the Staff Senate, and the Student Government Association (SGA). He explained that procedures for making presentations to the Board have never been formally approved for the Staff Senate and the Student Government Association. This resolution establishes the procedures outlined in the Faculty Bylaws for presentations to the Board by the Faculty Senate as the procedures for all three bodies – the Faculty Senate, the Staff Senate, and the SGA. Mr. Carlson asked that the administration work with the three bodies so that their report items could be included in the Board packets so the Governors are not surprised by what is presented. Board Policies No. 34-04 was moved by Mr. Franks and seconded by Mr. Carlson.

Motion passed 5-0.

Mr. Thomas next presented a resolution (Board Policies No. 35-04) approving guidelines for members of the Board for travel in China. The University will pay/reimburse the travel expenses for any member of the Board one time during their tenure as a Board member with a maximum of $2,500 per trip. Moved by Mr. Darr. Seconded by Mr. Carlson.

Motion passed 5-0.

9. Financial:

a. Development Report --- Mr. Greg Onstot, Vice President for University Advancement, presented the Development Report for the year ending June 30, 2004. He reported that the $9,285,422 in gifts received this fiscal year is a record total. The numbers of gifts received this year were almost exactly the same as last year. He then distributed another report that broke out the $9,285,422 as to how the gift dollars were designated. Mr. Onstot finished his presentation by reporting that during the past year, we had an 18.3% return on our endowment pool. The endowment pool as of June 30, 2004 was $35,664,493.

b. Financial Report --- Mr. Kent Kay, Associate Vice President for Finance, reported that he did not have a financial report this month as we have been busy closing the books in preparation for the year-end audit.

He then presented a resolution (Finance No. 979-04) approving the Request for 2006 Operating Funds for SMSU-Springfield, West Plains, and Mountain Grove Campuses. In addition to our FY 2005 core appropriation of $80,295,971, we are requesting an additional $12,556,557. This additional amount is made up of three decision items –

1) Equitable per student funding of $3,310,412. SMSU is currently funded $619 less per FTE student than the mean of comparable four-year higher education institutions in Missouri. Receiving $619 more per FTE student would result in an increase of almost $10 million so this decision item has been requested over a three-year period.

2) Restoration of excess cuts to higher education in FY03 and FY04 in the amount of $4,317,557. Higher education institutions, which receive 14.74% of General Revenue and Lottery Funds, absorbed 68.2% of the funding reductions. This has also been requested over a three-year period.

3) Cost to continue (or maintenance of current programs) total of $4,928,588. Conservatively, we have estimated that costs will increase two percent for salaries and operating expenses, five percent for scholarships, and two percent of replacement value for equipment additions.

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

Motion Passed 5-0

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

Purchases exceeding $25,000 from June 18, 2004 through July 15, 2004 (Purchasing Activity Report No. 245-04).

Purchases exceeding $25,000 from July 16, 2004 through July 29, 2004 (Purchasing Activity Report No. 246-04).

Moved by Mr. Carlson and seconded by Mr. Duggan.

Motion passed 5-0.

10. Facilities and Equipment --- Mr. Greg Burris, Vice President for Administration and Finance, first reported that they have looked at the approval thresholds for purchasing and construction items that governing boards at our peer institutions are approving. He plans on bringing this information to the Board at the August 20, 2004 meeting. Mr. Carlson then mentioned that he understood that on the recent soft-drink contract, there was some frustration by the losing bidder because they were not able to look at the other bids until after the Board of Governors had awarded the contract. Their only option at that point was to take it to court. He understood that some universities have the staff award the contract which then would open the bids for all to see. At that point, a losing bidder could appeal to the Board. He wondered if this type of procedure would be possible. Mr. Burris responded that they would look at this issue and address it in the report that will be presented in three weeks. He next presented the following resolutions for the Board's consideration:

Approving the July 19, 2004 Building Report (Building Report No. 136-04).

Approving the Activity Report for the month of June 2004 (Activity Report No. 139-04).

Testing services in conjunction with the field testing at Plaster Sports Complex (Architects & Engineers No. 595-04); Jeffery L. Bruce & Company L.L.C., for a fee not to exceed $3,000 plus reimbursable expenses. Additional services of up to $2,000 as described in this agreement may be authorized and approved as necessary.

Acoustical consultation services in conjunction with the modifications to the dance classroom in McDonald Hall and Arena (Architects & Engineers No. 596-04); Bruce Moore, AIA, for an hourly fee with a not-to-exceed amount of $3,000 plus reimbursable expenses. Additional services of up to $1,500 as described in this agreement may be authorized and approved as necessary.

Testing services in conjunction with the swimming pool surge tank coating at Hammons Student Center (Architects & Engineers No. 597-04); Palmerton & Parrish at an hourly fee with a total amount not to exceed $1,024 plus reimbursable expenses. Additional services of up to $500 as described in this agreement may be authorized and approved as necessary.

Professional engineering services in conjunction with the HVAC testing and balancing for laboratories located in Temple Hall and Kemper Hall (Architects & Engineers No. 598-04); Systems Testing and Analysis, Inc, for a fee not to exceed $5,000 plus reimbursable expenses. Additional services of up to $2,000 as described in this agreement may be authorized and approved as necessary.

Moved by Mr. Franks. Seconded by Mr. Darr.

Motion passed 5-0.

Mr. Burris then presented a resolution (Policies & Procedures No. 99-04) approving Information Technology Policies. It was discovered that the Board had only approved portions of our policy. We have now updated all of these policies and seek the Board's approval. Moved by Mr. Duggan and seconded by Mr. Darr.

Motion passed 5-0.

He then reported that they have elected to delay the resolution
regarding the energy conservation project until the August 20, 2004
meeting. They have been analyzing different funding options.

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

Actions concerning academic employees (Human Resources No. 1138-04). He asked that the name of John McAlear listed under Addendum C for supplemental payments for teaching assignments be removed from the listing as he will be addressed in a separate resolution.

Actions concerning non-academic employees (Human Resources No. 1139-04).

Moved by Mr. Carlson, receiving the second of Mr. Darr.

Motion passed 5-0.

Mr. Burris then asked Mr. Howard Berriman to provide some background on the College and University Retirement Plan (CURP). Mr. Berriman explained that most university employees are enrolled in the Missouri State Employees Retirement Plan (MOSERS). This is a non–contributory defined benefit plan. In 2002, MOSERS added CURP as a second plan. This plan is exclusively for faculty hired since July 1, 2002. CURP is a defined contribution plan. The State of Missouri hired a company to administer the plan for the state colleges. He explained that CURP did not define retirement and each university is being asked to come up with its own definition of "retirement." Mr. Burris then presented a resolution (Human Resources No. 1140-04) approving the definition of "retirement" for faculty enrolled in CURP. Moved by Mr. Carlson and seconded by Mr. Darr.

Motion passed 5-0.

Mr. Burris then distributed the following resolutions for the Board's consideration:

Approval of the FY05 two percent salary increase for 37 graduate assistants previously approved by the Board (Human Resources No. 1141-04)

Additional actions concerning non-academic employees (Human Resources No. 1142-04). This one action approves supplemental pay for John McAlear for his additional responsibilities in connection with the Presidential Search Committee.

Moved by Mr. Duggan. Seconded by Mr. Carlson.

Motion passed 5-0.

Mr. Burris next briefed the Board that we have updated our Disadvantaged Business Enterprise (DBE) Program in connection with the second Intermodal Transfer Facility. We established a new DBE goal, held a public hearing, and are in a 45-day comment period. After the comment period (mid August), the program will be submitted to the Department of Transportation. If approved, the last portion of the FTA monies for the new facility will be released.

12. Unfinished Business --- Mr. Franks reported that he is very heartened with the progress of the presidential search committee at this point. It has been a very open process. He estimates that we are about one meeting ahead of schedule. He hopes that at our next meeting, the advertising format and plan will be finalized.

13. Date of Next Meeting --- The date of the next regularly scheduled meeting was set for August 20, 2004.

14. Adjournment--- Dr. Burns adjourned the meeting at 10:45 a.m. on the motion of Mr. Duggan, the second of Mr. Darr, and the unanimous vote of the Board.

John W. McAlear
Secretary