March 9, 2007

1. Roll Call
Present- Mr. Michael Duggan, Governor
Mr. Michael Franks, President of the Board
Mr. Brian Hammons, Governor
Ms. Mary Sheid, Vice President of the Board
Mr. Ryan Sivill, Student Governor
Ms. Cathy Smith, Governor
Ms. Phyllis Washington, Governor
Mr. John Winston, Governor

Absent- Mr. James Buford, Governor

Also
Present- Michael Nietzel, President
Dennis Lancaster, Acting Chancellor of the West Plains Campus
Don Aripoli, Acting Vice President for University Advancement
Belinda McCarthy, Provost
Greg Burris, Vice President for Administrative and Information Services
Jim Baker, Vice President for Research and Economic Development
Earle Doman, Acting Vice President for Student Affairs
Kent Kay, Chief Financial Officer
John Black, General Counsel
John McAlear, Secretary of the Board

2. Presiding --- The presiding officer for the meeting was Mr. Michael Franks, President of the Board of Governors. He called the meeting to order at 9:00 a.m. in the Magnolia Room in the West Plains Civic Center in West Plains, Missouri.

3. Consent Agenda --- Mr. Franks noted that the first item of business on the agenda was the approval of the Consent Agenda for this meeting. The items included in the Consent Agenda are:

Minutes
Approval of the minutes for the open meeting of December 15, 2006, and the open meetings of the Executive Committee of the Board of Governors of January 5 and January 26, 2007.

January 5, 2007 Executive Committee Actions
Approval of purchases exceeding $100,000 for the period from December 15, 2006, through January 3, 2007 (Purchasing Activity Report No. 293-07).

Professional services in conjunction with the Needs Assessment for the Health, Physical Education and Recreation Department (HPER) for its relocation out of McDonald Arena (Architects & Engineers No. 626-07); Hastings + Chivetta Architects, Inc., for a fixed fee of $89,000 plus reimbursable expenses. Additional services of up to $20,000 as described in this agreement may be authorized and approved as necessary.

Engineering services in conjunction with the exterior repairs of Hill Hall (Architects & Engineers No. 627-07); Structural Engineering Associates Incorporated, for a lump sum fee of $67,500 plus reimbursable expenses. Additional services of up to $17,000 as described in this agreement may be authorized and approved as necessary.

Architectural services in conjunction with the bathroom renovation of the main wing of Freudenberger House (Architects & Engineers No. 628-07); Mackey Mitchell Associates for $77,000 plus reimbursable expenses. Additional services of up to $10,000 as described in this agreement may be authorized and approved as necessary.

Elevator consulting services in conjunction with the JQH Arena project (Architects & Engineers No. 629-07); Kenneth H. Lemp Elevator Consultants, Inc., for a fixed fee of $8,000 plus reimbursable expenses. Additional services of up to $3,000 as described in this agreement may be authorized and approved as necessary.

Approval to grant a right-of-way easement for the relocation and construction of a sanitary sewer line for the JQH Arena (Land No. 91-07).

Revising the 2007 calendar year Board of Governor’s meeting schedule (Board Policies No. 48-07).

Approval of employment contracts for Head Football Coach Terry Allen and the Assistant Football Coaches, per Coach Allen’s contract and the Coaches Overview of Salaries and Benefits provided (Human Resources No. 1225-07).

January 26, 2007 Executive Committee Actions
Approval of purchases exceeding $100,000 for the period of January 4, 2007 through January 24, 2007 (Purchasing Activity Report No. 294-07).

Footing and foundation concrete portion of the work for the JQH Arena (Bids & Quotations No. 1193-07); DeWitt & Associates, Inc., low bid of $2,476,000; total project budget established at $67,000,000.

Foundation waterproofing portion of the work for the JQH Arena (Bids & Quotations No. 1194-07); Restoration & Waterproofing Contractors, Inc., low bid of $74,769; total project budget established at $67,000,000.

The site chilled water piping portion of the work for the JQH Arena (Bids & Quotations No. 1195-07); Darrah Contracting, Inc., low bid of $498,000; total project budget established at $67,000,000.

The underground electrical portion of the work for the JQH Arena (Bids & Quotations No. 1196-07); A1 Electric Service, Inc., low bid of $51,400; total project budget established at $67,000,000.

The underground plumbing portion of the work for the JQH Arena (Bids & Quotations No. 1197-07); Connelly Plumbing Company, low bid of $188,140; total project budget established at $67,000,000.

Approval to modify the project budget for the JQH Arena (Bids & Quotations No. 1198-07) transferring $151,300 from the Project Contingency line of the budget to the Consultant Fees line of the budget. This transfer does not increase the overall budget.

Approval of Friend of the Court brief in opposition to imposition of punitive damages against public institutions of higher education in the State of Missouri, or their employees, and that legislation be pursued as determined appropriate by the President and General Counsel to preserve and enforce sovereign, official and governmental immunities (Administration No. 14-07).

President
Approval of 2008 Meeting Schedule for the Board of Governors (Board Policies No. 49-07).

West Plains Campus
Approval of the Activity Report dated February 20, 2007 (West Plains Campus Activity Report No. 61-07).

Renovation of 304 Garfield Avenue (West Plains Bids & Quotation No. 33-07); Feller Construction, Inc., low bid of $104,807 for the base bid plus alternates two and three; total project budget set at $148,307. Board President Michael Franks gave advance approval of this bid to allow the renovation work to begin prior to this board meeting.

Approval to remove Kent D. Thomas as a signatory on checks on the bank accounts at the Community First National Bank of West Plains commencing February 1, 2007 (West Plains Finance No. 27-07).

Approval of actions concerning West Plains Campus academic employees (West Plains Campus Personnel No. 262-07).

Springfield Campus Purchases/Contracts
Approval of purchases exceeding $100,000 between January 24, 2007 and February 22, 2007 (Purchasing Activity Report No. 295-07).

Approval to lease space (classroom, laboratory, and office) in the Nelson Education Center in the city of Lebanon in support of the Extended Campus (Academic Outreach and Distance Learning) activities at Missouri State University (Agreement No. 189-07). Estimated expenditures for 2007 are $8,190.

Design and Construction Items
Approval of Activity Report for the month of December 2006 (Activity Report No. 169-07).

Approval of Activity Report for the month of January 2007 (Activity Report No. 170-07).

Approval of Activity Report for the month of February 2007 (Activity Report No. 171-07).

Fire detection and suppression system inspection and testing services for the Springfield, West Plains, and Mountain Grove campuses (Architects & Engineers No. 630-07); Simplex-Grinnel for $86,680. Additional services of up to $25,000 as described in this agreement may be authorized and approved.

Construction material testing services in conjunction with the construction of the JQH Arena (Architects & Engineers No. 631-07); Palmerton & Parrish, Inc., for an estimated fee of $232,099.50 plus reimbursable expenses.

Human Resources Items
Actions concerning academic employees (Human Resources No. 1226-07).

Actions concerning non-academic employees (Human Resources No. 1227-07).

Mr. Winston made a motion to approve the Consent Agenda receiving a second from Ms. Sheid.

Motion passed 7-0.

4. President’s Office --- Dr. Michael Nietzel first reported that we have been pleased with the response received regarding the Missouri State Promise Scholarship Program. He announced that a lead gift from John and Cathy Youngblood of Springfield has been received for this program.

He next commented on the Fee Resolution which will be presented later in today’s meeting. The basic increase is 3½ % which equates to $6 per credit hour for our undergraduate resident students. This is the fourth consecutive year that we have been able to reduce the rate of increase. He added that we are recommending no increase in fees for the West Plains campus – which is tied to our ability to receive the additional appropriation for West Plains that Governor Blunt is recommending. Room & Board rates average a 4.7% increase. There is only a $5 increase (1.8%) in required student fees which brings the total overall increase to about 3.3%. This does not include the additional new $30 fee for the Recreation Center that was voted by the students.

Dr. Nietzel then asked Ms. June McHaney, Director of Internal Audit, to brief the Board on the Whistleblower Policy implementation. Ms. McHaney reported that EthicsPoint was selected as the vendor to provide the hotline services. She reported that the goal is to have this service up and running prior to the 2007 Fall semester.

He next commented on the ice storm, that caused us to close campus for the four weekdays following the Martin Luther King holiday, and the remarkable efforts by a number of individuals that allowed us to open for class on the following Monday. He added that McDonald Arena was pressed into service as a shelter for special-needs patients during that period.

Dr. Nietzel then commented on Senate Bill No. 389 which is a comprehensive bill dealing with higher education. This was the legislation that originally included Governor Blunt’s Lewis & Clark projects. The Lewis & Clark initiative has been shifted to a supplemental bill with the projects being different; however, the two Missouri State University projects, Free-Up and JVIC, are still included. The other element of Senate Bill No. 389 which we have focused on the most is the way that a tuition constraint would be introduced – we have urged that when inflation is used, it be done so with a national CPI as opposed to a regional CPI. Also, tuition increases need to be adjusted in years in which the State is not able to keep up with inflation in its appropriation increases.

At the conclusion of Dr. Nietzel’s report, Mr. Franks announced the board appointments to three new board committees:

Student Affairs – Mary Sheid (Chair), Cathy Smith, and Ryan Sivill

Academic Affairs – Brian Hammons (Chair), Phyllis Washington, and James Buford

Finance & Budget – Michael Duggan (Chair), John Winston, and Michael Franks

The goal of the committee structure is for all of the various issues that come before the Board to now be studied in depth more fully by the committees and then eventually proceed to the Board for a vote, if needed.

5. West Plains Campus --- Mr. Dennis Lancaster, Acting Chancellor of the West Plains Campus, reported that, when compared to last Spring, this Spring’s enrollment is up by 2.9%. They have stepped up their recruiting efforts in preparing for this Fall. He also distributed a copy of the Annual Report of Performance Measures for Missouri State University-West Plains.

Dr. Kathy Morrison, Chair of the West Plains Faculty Senate, next reported on the importance of the West Plains campus, which is in Missouri’s 8th congressional district which is the 12th poorest district in the nation. She added that 70% of their incoming students need remediation when they arrive. We are the last chance for these students who, once in the system, can transfer to the Springfield campus and then go as high as their talent and work effort can carry them. Mr. Joe Gilgour, President-Elect of the West Plains Staff Senate, reported that their current main initiative is for the staff to become better known to students since they can provide many needed services. Ms. Rebecca Lucas, President of the West Plains Student Government Association, reported that they have passed a resolution establishing a branch of student government on the Mountain Grove campus to ensure that the students in Mountain Grove will also have a voice with the administration.

Mr. Lancaster ended his report by introducing and recognizing Ms. Kathleen Morrissey, Coordinator of Theatre & Events, who received the Missouri State University Excellence in Community Service Award in January and was named by Governor Blunt as a member of Missouri’s Humanities Council Board of Directors in February.

6. Educational:
a. Faculty Senate Report --- Dr. Mark Richter, Chairperson for the Faculty Senate, reported that the Senate dealt with an appeal of an action taken by the Committee on General Education and Intercollegiate programs to add “Personal Finance” as a course in the general education curriculum from a Social Science perspective. The appeal was not whether the course should be offered, since the Senate approved the course last year and it is currently being taught in FGB, but whether it was appropriate for the course to be listed in Gen Ed as a Social Science course. The Senate voted to uphold the appeal, thus nullifying the Committee action to add the course to Gen Ed under Culture & Society – Social Science Perspective. Several governors expressed their concern that this is a very important course and they encouraged the Faculty Senate, the Provost, the College of Business Administration, and the Finance and General Business Department to discuss this issue further.

b. Report from the Provost --- Dr. Belinda McCarthy, Provost, first commented on the previous discussion regarding “Personal Finance.” She mentioned that IDS 110 is being reviewed as far as content. They are also looking at redoing/expanding the orientation programs that could help in this area. Finally, they are also looking at the freshman experience and how we can connect IDS 110 to being more than just a course but an experience that our freshman have. Dr. McCarthy next gave an update on the Missouri State Futures initiative. There were 38 proposals with 10 proposals selected to receive funding.

Dr. McCarthy next presented a resolution (Curriculum No. 302-07) revising the 2007-2008 Academic Calendar. Moved by Mr. Winston, receiving the second of Ms. Washington.

Motion passed 7-0.

She next presented the following two resolutions:

Establishing new options for the Bachelor of Arts in Communication (Curriculum No. 303-07).

Establishing new options for the Bachelor of Science in Communication (Curriculum No. 304-07).

Mr. Duggan so moved, receiving the second of Ms. Sheid.

Motion passed 7-0.

Dr. McCarthy then presented a resolution (Curriculum No. 305-07) establishing a new program – Bachelor of Science in Philosophy. Mr. Duggan so moved. Ms. Smith seconded the motion.

Motion passed 7-0

She next presented a resolution (Curriculum No. 306-07) establishing a new program – Bachelor of Science in Information Technology Service Management (Comprehensive). Motion made by Ms. Sheid. Mr. Hammons provided the second to the motion.

Motion passed 7-0.

Dr. McCarthy then presented a resolution (Curriculum No. 307-07) establishing a new program – Master of Business Administration – Executive Option (EMBA). Motion made by Mr. Hammons and seconded by Ms. Smith.

Motion passed 7-0.

7. Research and Economic Development --- Dr. Jim Baker, Vice President for Research and Economic Development, first gave an update on the search for the Chancellor of the West Plains campus for which he chairs the Search Committee. Timeline dates are such that they hope that an employment offer can be made by May 16, 2007 with the new Chancellor starting on July 1, 2007. He reported that when compared to FY2006, the number of proposals submitted, number of proposals awarded, and total dollars awarded FY 2007 are all higher with $7.6 million awarded through January 31, 2007. He added that we were just awarded a $6.2 million grant from the Office of Naval Research that is not included in these numbers.

He then presented a resolution (Administration No. 15-07) approving the delegation of authority to the Vice President for Research and Economic Development and the Executive Director of the Jordan Valley Innovation Center to enter into JVIC Senior Corporate Affiliate Agreements and JVIC Project Affiliate Agreements, and approval of a Project Affiliate Agreement with U.S. Photonics, Inc. Moved by Ms. Sheid. Seconded by Mr. Hammons.

Motion passed 7-0.

8. Student Affairs:
a. Report from Student Body President --- Mr. Sean Cain, President of the Student Body, reported that the SGA unanimously approved the recommendation of a 3.5% tuition increase. He also reported that they have been working on creating a Higher Education Consortium to bring students from all twelve public institutions together to lobby on behalf of higher education in Jefferson City.

b. Report from Vice President for Student Affairs --- Dr. Earle Doman, Acting Vice President for Student Affairs, reported that spring enrollment on the Springfield campus was up 2.2% when compared to last spring. He indicated that 2007 fall freshman applications are up 5% and Residence Life contracts are up 3%. He also added that room and board rates, in today’s fee resolution average a 4.5% to 5% increase.
Dr. Doman then presented a resolution (Student Policies No. 93-07) approving the Missouri State Promise Scholarship. This program will provide students from households with incomes below the poverty level with an institutional grant to supplement federal, state, institutional, and/or private grants and scholarships they may receive to ensure that the total gift aid will cover their tuition and fees and a standard book allowance. Moved by Ms. Washington. Seconded by Mr. Hammons.
Motion passed 7-0.

9. Finance:
a. Development Report --- Dr. Don Aripoli, Acting Vice President for University Advancement, first reported that the value of the Missouri State Foundation’s Endowment as of February 28, 2007 was $53,172,301. He next gave the development report for the first eight months of the fiscal year – as of February 28th, we are up in gift numbers by 52, while we are down in total gift dollars by about $140,000.

b. Financial Report --- Mr. Kent Kay, Chief Financial Officer, first presented the University’s financial statements as of December 31, 2006, the halfway point of the fiscal year. He commented that our credit hour production, when compared to last year, increased by 9,397 credit hours which equates to about 313 FTE students.

c. JQH Arena Bond Issuance Plans --- Mr. Kay next introduced Mr. Aaron Cook and Ms. Anne Noble, representing, respectively, Raymond James and AG Edwards – the two co-underwriters for this bond issuance. Mr. Cook and Ms. Noble, along with Mr. Richard Wright, representing Gilmore & Bell, our bond counselors, reported on the status of the JQH Arena bond issuance. Of the proposed $61 million bond issuance, not quite half of the amount is supported by a gift agreement with the Hammons Trust. There will be two series of bonds issued – Series 2007A for approximately $58 million of tax-exempt fixed rate bonds and Series 2007B for approximately $3 million of taxable fixed rate bonds. The financing plan allows the University to take advantage of historically low long-term tax-exempt interest rates. The percentage rate will approximate 4.48%. The plan is to have a Board of Governors telephonic meeting to approve the resolution authorizing the bonds in early April. During a discussion about the projected debt service coverage, Mr. Wright mentioned the key point that the bonds are not being sold based on any increase in revenues. If we do see an increase in revenues from the arena, our debt service coverage will be even greater.

d. Approval of 2007-2008 Fee Schedule --- Mr. Kay next presented a resolution (Fees No. 127-07) approving the fee schedule for the 2007-2008 academic year. Dr. Nietzel added that this final draft of the fee schedule does include a 3½% increase for Greenwood fees which had mistakenly been omitted from the previous draft mailed to the Board. Moved by Mr. Hammons. Seconded by Mr. Duggan.

Motion passed 7-0.

e. Purchases/Contracts --- Mr. Kay then presented a resolution (Purchasing Activity Report No. 296-07) for purchases exceeding $100,000 from February 23, 2007 through March 8, 2007. Moved by Mr. Duggan. Seconded by Ms. Washington.

Motion passed 7-0.

10. Facilities and Equipment --- Mr. Greg Burris presented a resolution consenting to the granting of an alcoholic beverage license by the City of Springfield to Springfield Little Theatre (Miscellaneous No. 26–07). Moved by Mr. Duggan and seconded by Mr. Winston.

Motion passed 7-0.

11. 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. Mr. Franks 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 Missouri State University that a closed meeting, with closed records and closed vote, be held during a recess of this March 9, 2007 meeting of the Board of Governors to consider items of business pursuant to:

A. R.S.Mo. 610.021(1). “Legal actions, causes of action, or litigation involving a public governmental body…”

B. R.S.Mo. 610.021(3). “Hiring, firing, disciplining or promoting an employee of a public governmental body.”

C. R.S.Mo. 610.021(13). “Individually identifiable personnel records, performance ratings, or records pertaining to employees or applicants for employment,…”

Mr. Duggan moved the approval of the resolution and Ms. Washington seconded the motion.

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

Mr. Franks declared the resolution passed unanimously.

The meeting recessed at 12:10 p.m.

12. Luncheon Meeting with West Plains R-7 School District --- The meeting reconvened at 1:15 p.m. in the Redbud Room of the West Plains Civic Center. Dr. Michael Nietzel introduced Dr. Karla Eslinger, Superintendent of the West Plains R-7 School District who further introduced Mr. Ron Estes, Principal of the West Plains High School, and board members Mr. Tom Marhefka, Mr. Jim Thompson (President of the Board), and Mr. Bo Pace. Dr. Eslinger commented that she and Acting-Chancellor Lancaster have been brainstorming on joint efforts between Missouri State University and West Plains R-7. One example is having the West Plains campus of Missouri State provide the professional development courses that R-7 employees are required to attend. Further discussions will be held regarding cooperative programs.

13. Date of Next Meeting --- The date of the next scheduled meeting was set for Thursday, May 17, 2007 at 1:00 p.m., in Room 313 of the Plaster Student Union on the Springfield Campus.

14. Adjournment --- Mr. Franks adjourned the meeting at 1:35 p.m.


John W. McAlear
Secretary