May 15, 2008

MINUTES OF THE BOARD OF GOVERNORS

MISSOURI STATE UNIVERSITY

1. Roll Call

2. Presiding & Introductions --- The presiding officer for the meeting was Ms. Mary Sheid, Chair of the Board of Governors. She called the meeting to order at 1:00 p.m. in the Traywick Parliamentary Room in the Plaster Student Union on the campus of Missouri State University in Springfield, Missouri.

Ms. Sheid, considering those area individuals who lost their lives from the devastating tornados of last weekend, first asked for a moment of silence. She next introduced our two new Board members – Ms. Elizabeth Bradbury from the ninth congressional district, and student member, Mr. Ryan Childress.

Motion passed 8-0.

3. Student Affairs --- Dr. Don Aripoli, Vice President for Student Affairs and representing the Board’s Student Affairs Committee, then recognized three 2007/08 Citizen Scholar Award recipients who are all graduating tomorrow – Hollie Elliott, Elizabeth Keller, and David Vinyard. Hollie graduates with a degree in Agriculture Communications; Elizabeth graduates with a masters in Counseling; and David graduates with a masters in Chemistry.

Board of Governors’ Meetings --- Ms. Sheid asked for a motion for the approval of the minutes for the open and closed meetings of March 14, 2008 and March 26, 2008. Mr. Duggan so moved, receiving the second of Mr. Hammons.

b. Executive Committee Meetings --- Ms. Sheid next asked for a motion for the approval of the minutes for the Executive Committee open meetings of April 10, 2008 and May 8, 2008. Mr. Duggan so moved, receiving the second of Mr. Elliott.

5. Consent Agenda --- Ms. Sheid noted that the next item of business on the agenda was the approval of the Consent Agenda for this meeting. The items included in the Consent Agenda are:

April 10, 2008 Executive Committee Meeting

Approval to increase the project budget for the integrated scoring and video display systems for the JQH Arena and Plaster Sports Complex (Bids & Quotations No. 1264-08). This $282,400 additional amount awarded to Daktronics, Inc., will be added to the construction costs line to provide funds needed to cover the addition of two 28’ LED scorer’s tables.

The interior and exterior signage for the JQH Arena (Bids & Quotations No. 1265-08); Star Signs, LLC, low bid of $248,944 for the base bid plus alternates 2, 3, 4, 5, 6, 8, 9, and 10.

May 8, 2008 Executive Committee Meeting

Approval of commission agreement for the creation, development, design, and production of a bronze bear statue for the JQH Arena entrance plaza (Agreement No. 211-08); Dr. James Hill, for a sculptor’s fee of $25,000, to be paid with private gift funds which have already been received by the Missouri State University Foundation.

Off-site drainage improvements for the JQH Arena (Bids & Quotations No. 1266-08); Hartman & Company, Inc., low bid of $1,357,000 for the cast-in-place base bid along with alternates 1, 2, and 4.

West Plains Campus

Approval of the Activity Report dated April 28, 2008 (West Plains Campus Activity Report No. 69-08).

Approval to purchase certain real estate located at 210 Pennsylvania Avenue, West Plains, Missouri at a cost of $36,000 (West Plains Campus Land Purchase No. 27-08).

Approval of lease agreement for property located at 210 Pennsylvania Avenue, West Plains, Missouri (West Plains Campus Agreement No. 24-08).

Approval of actions concerning West Plains Campus academic employees (West Plains Campus Personnel No. 277-08).

Approval of actions concerning West Plains Campus non-academic employees (West Plains Campus Personnel No. 278-08).

Approval of purchases exceeding $100,000 between March 14, 2008 and May 1, 2008 (Purchasing Activity Report No. 313-08).

Design and Construction Items

Approval of Activity Report for the month of February 2008 (Activity Report No. 183-08).

Approval of Activity Report for the month of March 2008 (Activity Report No. 184-08).

The repairs to structure of Bear Park North on the Springfield campus (Bids & Quotations No. 1267-08); JACOR Contracting, Inc., low bid received of $349,179; total project budget established at $500,000.

Approval of an agreement between the Missouri Highways and Transportation Commission through a Federal Aid Program Agreement and Missouri State University for roadway improvements at Broadmoor Street and Highway 13 (Federal No. 81-08). The University wishes to make entrance improvements to the William H. Darr Agricultural Center along the roadway of Highway 13 (south Kansas Expressway) at Broadmoor Street. Through this agreement, the United States Government will participate in 100% of eligible costs up to a maximum of $367,500.

Human Resources Items

Actions concerning academic employees (Human Resources No. 1257-08).

Actions concerning non-academic employees (Human Resources No. 1258-08).

Approval to revisions to the Employee Handbook for Administrative, Professional and Support Staff, effective July 1, 2008 (Human Resources No. 1259-08).

Approval of Memorandum of Agreement between the University and Teamsters, Local Union 245, an affiliate of the International Brotherhood of Teamsters (Agreement No. 212-08).

Mr. Hammons made a motion to approve the Consent Agenda receiving a second from Mr. Duggan.

6. President’s Office --- Dr. Michael Nietzel, President, first acknowledged Mr. Steve Koehler who has been a reporter with the Springfield News-Leader for twenty-four years and who has recently covered Missouri State University. He wanted to make sure that we recognized Steve for the coverage he gave higher education and Missouri State. Dr. Nietzel added that Steve will be taking a position with Ozarks Technical College.

Dr. Nietzel then reviewed the 2008 session of the Missouri General Assembly with the Board. We are pleased with the 4.2% appropriation increase for higher education and the one-time money for the cooperative engineering program. We are also pleased with the expanded state scholarship program.

He next reported on the very successful Community Caravan that was undertaken this spring. We went to fourteen communities in eight days and touched about 1,000 people.

Dr. Nietzel then announced that we have expanded our very own Missouri State Promise scholarship program – families with incomes at 150% of the federal poverty level are now eligible for this program. The former eligibility level had been at 100% of the federal poverty level. He also reported on four new programs, all intended to encourage students to come back and finish their degree or pursue advanced degrees.

He next presented the following resolutions regarding gifts to the JQH Arena for the Board’s consideration:

Approval of naming in the JQH Arena in recognition of Domino’s Pizza (Gifts No. 152-08). In recognition of their significant support, the West Concourse in the JQH Arena will be named the Domino’s Pizza Concourse for a term of five years as set forth in the Gift Agreement between Domino’s Pizza and the Missouri State University Foundation.

Approval of naming in the JQH Arena in recognition of Chevy Dealers of the Ozarks (Gifts No. 153-08). In recognition of their significant support, the Ticket Office in the JQH Arena will be named for Chevy Dealers of the Ozarks for a term of five years as set forth in the Gift Agreement between the Chevy Dealers of the Ozarks and the Missouri State University Foundation.

Approval of recognition of Great Southern Bank in support of JQH Arena (Gifts No. 154-08). In recognition of the significant support by Great Southern Bank, and the Gift Agreement between the Great Southern Bank and the Missouri State University Foundation, the cup holders in the lower bowl of the JQH Arena will have a Great Southern Bank sticker on them for the term of fifteen years.

Motion made by Mr. Elliott with the second by Mr. Hammons.

Motion passed 8-0.

Dr. Nietzel then presented the following resolution for the Board’s consideration:

Approval of a subcontract between Missouri State University and Unidym, Inc., (Agreement No. 213-08). This contract was signed by both parties in July 2007 but due to an oversight, was not officially approved by the Board of Governors at that time. This resolution is to correct that oversight.

Moved by Mr. Duggan. Seconded by Ms. Bradbury.

Motion passed 8-0.

He next presented the following resolution:

Approval of License Agreement for Communications Tower in Joplin, Missouri (Agreement No. 214-08). The University leases space on this communications tower in Joplin for Ozarks Public Television. The initial term of this agreement will be for a five-year period, with renewal terms for two additional periods of five years each.

Moved by Mr. Hammons and seconded by Mr. Winston.

Motion passed 8-0.

In Dr. Jim Baker’s absence, Dr. Nietzel gave the Sponsored Program Activity Report for the nine-month period ending March 31, 2008. The number of proposals submitted at this point in the year is the highest we have had in the last four years.

Dr. Nietzel next presented to the Board the recommended FY09 Operating Budget for the Springfield Campus (does not include the Auxiliary Fund and the West Plains Campus). This represents about $175 million of a total $250 million budget. The entire budget will be presented to the Board at the June meeting for their approval. The FY09 Budget is the first year that we were under the tuition controls from Senate Bill 389. He explained that the individual cost centers have always kept 100% of their salary savings and 50% of their other carry-forward funds. In the FY09 budget, the cost centers will get to keep 100% of all salary savings and other carry-forward funds. The budget is based on stable or very moderate enrollment growth. There will be no mandated reallocation this year. One budget priority is to improve salaries – this includes: 1) a 4% merit & equity pool; 2) 0.2% additional equity pool for special equity cases for faculty; 3) faculty promotions; 4) new salary minimums for some staff; and 5) no change in employee contribution to healthcare plan. Other priorities include an 8.5% increase for utilities, funds for our ERP maintenance agreement increase, and $1 million for new initiatives or programs. This budget also increases the University’s recurring reserve by $1 million. He next summarized the $1 million in new initiatives/programs and almost 59% of these funds are under the Provost. Dr. Nietzel added that we will be adding about $9 million to our “rainy-day fund” to bring it to a total of about $17.5 million at June 30, 2008. We plan on spending about $4.5 million of the $9 million on non-recurring FY09 initiatives. Our projected total, unobligated, carry-forward balance at June 30, 2008 is about $34 million. At the end of calendar year 2007, we have about $4.9 million in reserves in the Medical and Dental Insurance Fund – about $1.4 million more than what the Board has requested to have on reserve.

7. New Business --- Ms. Sheid next commented that she was going to deviate from the agenda somewhat and reported that over the past several months, the Board has completed its annual review of President Nietzel. She stated that the Board is unanimously pleased with the work of Dr. Nietzel and intends to extend his contract another year, which would take him through the year 2012. The Board also intends to increase Dr. Nietzel’s salary by a percentage equal to the salary pools for faculty and staff – expected to be four percent. The terms of his contract will be finalized and presented as part of the budget in June.

Ms. Sheid next announced that the Board is working with the Missouri State University Foundation to establish the Missouri State University Leadership Chair which will be initially awarded to Dr. Nietzel for a two-year term beginning July 1, 2008. Current and past Board members, as well as student members, have worked together to establish this chair. The wording of the chair will allow the Board to award some part of the chair to other University leaders in addition to the President if so desired. She reported that we have had 100% participation form the current Board and the response from former Board members has been gratifying. To date, we have now raised approximately $250,000 – with the maximum donation from any individual being $25,000. The ultimate goal is to reach $1 million, which, when fully invested, would yield $45,000 annually. She added that somewhere in the future, when Dr. Nietzel retires, this Chair will help us attract the best possible candidate to be the next President of Missouri State.

Dr. Nietzel thanked the Board and stated that he is very honored by this decision. He appreciates the Board very much and commented on their preparedness and support. To have been awarded an endowed chair is a great honor and it means a lot to him to hold this position. When the annual income from this endowment is available, Dr. Nietzel commented that he will want it to go to student scholarships.

Several of the governors then commented on their appreciation of Dr. Nietzel’s fine job as President. Ms. Sheid then thanked Brent Dunn, Paul Kincaid, and Clif Smart for their assistance on this project.

a. Academic Affairs Committee – Mr. Brian Hammons, Chair of the Board’s Academic Affairs Committee, reported on this morning’s meeting. They heard a very thorough overview of the College of Business Administration, where they met.

b. Faculty Senate Report --- Dr. Pauline Nugent, new Chairperson for the Faculty Senate, announced the other new members of the Executive Board of the Faculty – Dr. Margaret Weaver from English and Dr. Christopher Herr from Theatre & Dance.

Dr. Tom Kane, former Chairperson of the Faculty Senate, indicated that he has had an exceptional experience as chairperson. His last report to the Board included a report from the Budget & Priorities Committee that concluded that it appears that seat assessments, suite rentals, and the student fee will generate at least $4.02 million in the first full year of the JQH Arena’s operation. This is about $1.2 million above the university’s annual debt service cost of $2.13 million plus operating costs of $700,000. He also mentioned that in this year’s Senate leadership assessment, the president and provost received their strongest evaluation since the Faculty Senate has conducted this administrator assessment. He ended his report by commenting on the Senate’s action on the plus minus grading system. They are recommending that the University implement a plus minus system.

c. Report from the Provost --- Dr. Belinda McCarthy, Provost, first presented Dr. Kane a plaque expressing appreciation to him for his dedicated service as Chair of the Faculty Senate this past year. She next reported that we have named a new Dean of the College of Education so she recognized Dr. David Hough, who has been Dean of the College of Education since August of 2000. Dr. McCarthy next announced the Pepsi-Cola Public Affairs scholarship recipients – Andrew Keaster, Brooke Heischmidt, Jessica Cecil, Lindsay Coats, and Kelsey Beck. She next recognized the first Public Affairs Professor – Dr. Sandra Byrd from the School of Accountancy. Dr. McCarthy indicated that a resolution recommending a plus minus grading system will be coming to the Board at a later date. The resolution will include a number of steps which include considerations appropriately raised by student government. The earliest it could be implemented is fall of 2009, and when implemented, there will be a two-year evaluation period. She explained that there are some issues that have not been worked out. Mr. Childress complimented Dr. McCarthy who has been very willing to meet and listen to student concerns of the proposed new grading system.

Ms. Smith left the conference call at this time.

9. West Plains Campus --- Dr. Drew Bennett, Chancellor of the West Plains Campus, gave a report to the Board. Included in his report were architectural renderings of the Gohn-Wood and Hass-Hoover facilities. The Gohn-Wood facility will house their student outreach project and degree completion project where students will work on their bachelor’s and master’s degrees under the Springfield accreditation program. The Hall-Hoover building will house their student advisement and assessment programs and their honors program. He next reported that they will award 228 associate degrees on the West Plains Campus this Saturday. He ended his report by sharing that on April 9in Jefferson City, Cathy Profitt-Boys received the Missouri Council on Public Higher Education’s Teacher of the Year Award from Governor Matt Blunt.

a. Report from Student Body President --- Mr. Orlando Hodges, President of the Student Body, reported SGA worked hard on three resolutions to be presented to the Board by Dr. Aripoli – the USA Readership Program, the amended SGA Constitution, and this year’s Wyrick proposal. He commented that the students are not really opposed to the idea of the plus minus grading system – they are concerned with the method by which it is being implemented. They are working with the administration regarding these concerns.

b. Report from Vice President for Student Affairs --- Dr. Don Aripoli, Vice President for Student Affairs, first presented an offer of commendation to Matthew K. Jungers for service as Student Body Vice President this past year. Moved by Mr. Duggan and seconded by Mr. Hammons.

Approval of changes to the Missouri State University policy regarding the Family Educational Rights and Privacy Act (FERPA) statement (Student Policies No. 99-08).

Approval of a revised Student Government Association Constitution (Student Policies No. 100-08).

Approval of a fee to support the USA Readership Program (Fees No. 131-08). A fee of $3.00 per semester for the fall and spring semesters was approved by a vote of the Student Body. The term of this special fee will be from Fall 2008 to Spring 2013.

Approval of former Missouri State University employees to be added to the Wall of Fame (Awards No. 25-08). Those recommended for the 2008 induction are Robert H. Bradley, Russell Keeling, John Province, Russell Rhodes, and Lois Tooley.

Approval of Wyrick Fund expenditures passed by student vote in April 2008 to be implemented in FY2009 (Purchase Approval No. 111-08). The project approved by the Student Body is for artificial turf installation on the Recreation Field East at an amount not to exceed $292,500.

Moved by Ms. Bradbury and seconded by Mr. Hammons.

a. Financial Report --- Mr. Kent Kay, Chief Financial Officer, reviewed the University’s financial statement as of March 31, 2008 with the Board. He reported that we have about $20 million more in cash and investments for the payment of operating expenses of the University than last year at this time.

He then presented the following resolution for the Board’s consideration:

Approval of purchases exceeding $100,000 from May 2, 2008 through May 14, 2008 (Purchasing Activity Report No. 314-08).

b. Development Report --- Mr. Brent Dunn, Vice President for University Advancement, reported that through April 30, 2008, gifts received are up almost $3 million when compared to last year at this time. We have already set a new record for total gifts received and there are two additional months in the fiscal year.

12. Staff Senate --- Ms. Kelly Barnts, Chair of the Staff Senate, reported that the summer work hour initiative was a huge undertaking. Staff Senate thanks the administration for approving this initiative.

Mr. Greg Burris, Vice President for Administrative and Information Services, then presented an offer of commendation to Kelly for her service as Staff Senate Chair this past year. Moved by Mr. Winston and seconded by Mr. Hammons.

Motion passed 7-0.

13. Facilities and Equipment --- Mr. Burris next presented the following resolution for the Board’s consideration:

Approval of FY10 Capital Appropriations Request (Finance No. 999-08). The University’s number one priority is the Ozarks Health and Life Science Center.

Moved by Mr. Elliott and seconded by Mr. Duggan.

Mr. Burris then gave an update on the Missouri State Alert – our mass notification system. This came out of the Virginia Tech. tragedy of last year. We have allowed students and employees to identify how they want to be notified when needed – by cell phone, by email, by office telephone, and/or by home telephone. We selected the same vendor that the University of Missouri is using. Our first test was two weeks ago, and it failed. We have discovered that the problem was on the vendor’s side of the issue. We found out that two other universities were testing their systems at the same time. The vendor is ordering some additional equipment to be better prepared in the future. Mr. Burris also reported on the high percentage of employees and students who have registered to be included in this system – 74.82%. This is the highest participation rate we have seen.

14. New Business (continued) --- Ms. Sheid reported that starting with the June Board meeting, the membership assignments to the three board committees will be as follows: Student Affairs – Cathy Smith (Chair), Phyllis Washington, and Ryan Childress; Academic Affairs – Brian Hammons (Chair), Mary Sheid, and Elizabeth Bradbury; Finance – John Winston (Chair), Michael Duggan, and Gordon Elliott.

Ms. Sheid next reminded the Board that the Board Retreat will be July 17-19 at the Chateau on the Lake in Branson. Some past members of the Board will be joining the Board at the Thursday dinner to give a historical perspective.

Mr. Clif Smart, General Counsel, presented a proposed Bylaw Amendment that will be voted on by the Board at their June 20, 2008 meeting. This amendment will allow the board committees to vote to close their meetings.

15. Date of Next Meeting --- The date of the next scheduled meeting was set for Friday, June 20, 2008 at 1:00 p.m. on the Mountain Grove Campus.

16. Adjournment--- Ms. Sheid adjourned the meeting at 3:55 p.m. on the motion of Mr. Duggan, the second of Mr. Winston, and the unanimous vote of the Board.