May 15, 2020

Minutes of the Board of Governors’
Missouri State University
May 15, 2020, 9:00 a.m.
https://missouristate.zoom.us/j/95810403835

Roll Call
Present – Ms. Craig Frazier, Chair
Ms. Amy Counts, Governor
Mr. Gabriel Gore, Governor
Ms. Beverly Miller Keltner, Governor
Ms. Lynn Parman, Governor
Ms. Carol Silvey, Governor
Ms. Carrie Tergin, Governor
Mr. Jay Wasson, Governor

Absent – Mr. Chris Waters, Governor
Mr. William Miller, Student Governor

Also Present – Clifton M. Smart III, President
Jim Baker, Vice President for Research and Economic Development & International Programs
Donna Christian, Director of Internal Audit and Risk Management
Jeff Coiner, Chief Information Officer
Ryan DeBoef, Chief of Staff and Assistant to the President for Governmental Relations
Rachael Dockery, General Counsel and Chief Compliance Officer
Brent Dunn, Vice President for University Advancement
Frank Einhellig, Provost
Steve Foucart, Chief Financial Officer
David Hough, Dean of the College of Education
Shirley Lawler, Chancellor of the West Plains Campus
Kyle Moats, Director of Athletics
Matt Morris, Vice President for Administrative Services
Wes Pratt, Chief Diversity Officer and Assistant to the President
Suzanne Shaw, Vice President for Marketing and Communications
Dee Siscoe, Vice President for Student Affairs
Rowena Stone, Secretary of the Board

Presiding – The presiding officer for the meeting was Mr. Craig Frazier, Chair of the Board
of Governors. He called the meeting to order at 9:12 a.m. via Zoom webinar.

Consent Agenda – Mr. Frazier noted that the first item of business was the approval of
the Consent Agenda. Items included in the Consent Agenda are:

President
Approval of FY 2020/2021 Employment Agreements for Assistant Coaches (Human Resources No. 1641-20)

West Plains Campus
Approval of Actions Concerning Academic Employees (West Plains Campus Personnel No. 445-20)

Approval of Actions Concerning Non-Academic Employees (West Plains Campus Personnel No. 446-20)

Approval of Separation Agreement and Mutual release between the University and Chris Popp (West Plains Campus Personnel No. 447-20)

Approval of Fiscal Year 20201 Salary Benefits Overview for Missouri State University – West Plains Athletics (West Plains Campus Personnel No. 448-20)

Approval Employment Agreement of Jared Phay as head Men’s Basketball Coach (West Plains Campus Personnel No. 449-20)

Approval of Expenditures to Implement Student Approved Capital Projects (West Plains Finance No. 35-20)

Academic Affairs
Approval of new Program for Bachelor of Science in Equine Science (Curriculum No. 396-20)

Procurement and Financial
Approval of Procurement Activity Report (Purchasing Activity Report No. 488-20)

Approval of Rental Rates for Space in the Kenneth E. Meyer Alumni Center for Various Departments and University Related Offices (Agreement No. 436-20)

Facilities and Equipment
Approval of Activity Report for the Month of April 2020 (Activity Report No. 310-20)

Human Resources
Approval of Actions Concerning Academic Employees (Human Resources No. 1642-20)

Approval of Actions Concerning Non-Academic Employees (Human Resources No. 1643-20)

Approval of Executive Team Pay Reductions for May/June 2020 (Human Resources No. 1644-20)

Approval of Employees placed on 2/3 Pay through May 31, 2020 (Human Resources No. 1645-20)

Ms. Carol Silvey made a motion to approve the Consent Agenda, receiving a second from Ms. Amy Counts.

Motion passed 8-0.

Finance and Facilities
FY2020 Budget Update and Decisions - President Smart provided a budget update for fiscal year 2020 (FY2020). He shared that budgeting management has been an issue for FY2020 due to Governor Parson’s withhold of $7.6 million dollars that resulted in the Springfield campus receiving $7.1 million less than anticipated and the West Plains campus receiving less than over half a million in funds. He shared that aside from the shortfall from state funding, the university is having to manage the $4.7 million in refunds issued to students due to COVID-19. President Smart shared that the immediate strategy to manage these issues was through preserving assets. He stated that the university has been successful in its efforts. At the beginning of the FY2020, Missouri State University had $63 million in operating reserves with planned expenditures of $8 million. Through conservative management efforts, the university currently has $57.5 million in reserves. President Smart highlighted that this number is without any layoffs or furloughs due to COVID-19, unlike many other universities that had to make employee cuts.

President Smart called upon Mr. Steve Foucart, Chief Financial Officer, to review the revised budget numbers for FY2020. Mr. Foucart shared numbers for operating revenue, operating expenses, and non-operating revenues with an estimate for year end reserves at $57,567,361.70. President Smart shared that he anticipates the university will have over $58 million in reserves by the end of June due to the cost saving measures taken during the COVID-19 pandemic. He added that as the university thinks about FY2021 and the challenging budget year ahead, knowing we have reserves will be an important factor in setting the budget.

Mr. Foucart then shared information on the FY2020 auxiliary budgets. He mentioned that items that typically generate revenue (i.e. events, bookstore, etc.) have been closed or cancelled due to COVID-19. He shared that $4.5 million in CARES Act funds have helped to cover some of these items and that with other cost savings measures the university anticipates being down $2.4 million in the auxiliary systems.

Mr. Foucart then reviewed the operating, designated, and auxiliary budgets for West Plains. He shared that the estimated year end reserves are at $3,286,676.31.

Financial Update - Mr. Foucart provided updates on the year-to-date financial statements.

Mr. Brent Dunn, Vice President for University Advancement, provided a brief Development report. He highlighted that the Foundation is up $4.3 million in April compared to the same time last year and at a total of $20.2 million. He commented that this is the first time the university has reached the $20 million mark this early in the year. He shared that the Onward, Upward Campaign is tracking well with several years still to go.

Approval of FY2021 Fee Resolutions - President Smart provided an overview of the fee summary. He mentioned that this is the first step in the process for establishing the FY21 budget as it sets tuition and fees for the upcoming year. He highlighted changes from the last tuition and fee discussion held with the Board. Changes included a $8.00 per semester fee on the Springfield campus to expand mental health counseling services and education that was voted on by the student body and an increase of $2.00 per credit hour for Missouri resident undergraduate tuition on the West Plains campus.

Mr. Steve Foucart, Chief Financial Officer, recommended approval of the following resolutions:

2020-2021 fee schedule board resolution amendment Springfield campus (Fees No. 157-20).

2020-2021 fee schedule board resolution amendment West Plains campus (West Plains Fees No. 18-20).

Moved and seconded, respectively, by Ms. Silvey and Ms. Miller Keltner.

Motions passed 8-0.

FY2021 Budget Update - President Smart reviewed the FY2021 Budget Principles. The university will evaluate all FY2021 cost savings options utilizing the following factors: potential to generate substantial savings, impact on the university’s mission, impact on employees and workforce morale, impact on university risk and compliance, impact on university’s ability to generate revenue, and to improve efficiency and processes. He shared that the FY2021 budget will also include strategic investments to support revenue. The process to develop the FY2021 budget will include transparency and university-wide communication and input from stakeholders. President Smart then presented the resolution for approval of the FY2021 Budget Principles (Finance No. 1086-20).

Ms. Lynn Parman made a motion for approval with one modification, receiving a second from Ms. Miller Keltner.

Motion passed 8-0.

President Smart and Mr. Foucart then reviewed the operating budget model for FY2021. President Smart shared the budget will be presented for approval at the June Board meeting due to the uncertainty of state budgeting and enrollment. He stated that the data presented today was to provide information on the work currently completed and to receive feedback from the Board.

President Smart shared that with revenue sources for FY2021 are at $4,628,205.00, expenses are at $589,893.00, and there is an anticipated increase of $1,007,748.00. He reviewed an analysis based on a $10 million reduction level. Cost saving measures included hiring freezes, eliminating the internet teaching incentive for faculty, delaying the opening of the new residence hall, reducing repairs and classroom upgrades by 25%, and the interest income saved due to the delay in purchasing the new residence hall. President Smart then shared potential additional cost savings measures that could be taken if necessary on a $20 million reduction level. Additional cost measures included reducing repairs and classroom upgrades by 50%, reducing the President’s Enhancement fund by 25%, reducing academic equipment by 75%, reducing travel budgets by 50% in all areas, utilizing $4 million in reserves, and options of potential personnel reductions. President Smart then reviewed a cost reduction history from FY2018-2021.

Mr. Foucart then reviewed the West Plains FY2021 operating budget. The estimate available of funds for FY2021 are at $257,663.00.

Mr. Foucart shared information on the FY2021 auxiliary budget overview that projects a preliminary budget loss of $2,221.423.00. Mr. Foucart called upon Mr. Kyle Moats, Director of Athletics, to provide information on potential revenue shortfalls for Athletics. Mr. Moats shared that items impacting the numbers include decreased funding from NCAA and Missouri Valley Conference, football game guarantees, ticket revenue, Bears Fund donations, suite sales, licensing, and concessions. Mr. Moats shared areas that will address the revenue shortfalls that include operations, scheduling, travel size limits, personnel, travel, game guarantees, scholarships, summer school, and apparel.

Facilities Update - Mr. Allen Kunkel provided an update on the IDEA Commons project. He provided a project overview and shared project renderings. He shared that the JVIC Expansion is ready to begin and that the overall IDEA Commons expansion is tentative due to impacts of COVID-19.

Ms. Rachael Dockery, General Counsel and Chief Compliance Officer, outlined the terms of the agreements related to Phase 1 of the IDEA Commons expansion: construction and expansion of the Jordan Valley Innovation Center (JVIC #4) and asked for approval of the resolution (Agreement No. 437-20). Ms. Counts so moved, receiving a second from Ms. Miller Keltner.

Motion passed 8-0.

Mr. Matt Morris, Vice President for Administrative Services, provided an update on university projects. He shared information on the effects that COVID-19 has had and that projects are being categorized as ongoing or on hold. As a result, 133 projects have been canceled with 38 design projects and 17 construction projects ongoing.

Mr. Morris then presented an amendment to the agreement to build to suit real estate purchase agreement for the new residence hall to be constructed at 630 East Madison, Springfield, Missouri. The amendment moves the purchase date back by a year and approves an increase of holding costs to be paid by the university to help off-set additional expenses that the seller will incur by delaying completion and purchase by a year. Mr. Morris asked for approval of the resolution (Agreement No. 438-20), receiving a motion from Ms. Carrie Tergin and a second from Ms. Miller Keltner.

Motion passed 8-0.

President Smart then shared information on the opportunity to host the Student African American Brotherhood (SAAB) on campus. The university agrees to provide furnished space as part of a two-year agreement at no cost to SAAB. President Smart called upon Mr. Wes Pratt, Chief Diversity Officer and Assistant to the President, to provide information on SAAB. Mr. Pratt shared that SAAB is a national organization that provides systems to support young men of color who embark upon and complete postsecondary education. SAAB has over 250 chapters throughout the nation and it increases the number of men of color graduating from college. He shared that persistence rates for SAAB members from freshman to sophomore year of college is at 80%, nearly double the national rate, and completion rates for graduation at 86%. Springfield’s SAAB affiliate chapter, Brother 2 Brother, has had 78 total student members since its inception and has 94% retention and graduate rates. Mr. Pratt shared that SAAB has received support for its relocation from the Community Foundation of the Ozarks. Mr. Pratt then asked for ratification of the facility use and cooperation agreement by and between the Board of Governors of Missouri State University and the Student African American Brotherhood (Agreement No. 439-20). Mr. Gabriel Gore made a motion for approval, receiving a second from Ms. Silvey.

Motion passed 8-0.

Procurement Report - Mr. Foucart presented the procurement activity report for approval (Purchasing Activity Report No. 489-20). The report included the approval of the Public Broadcasting Service Membership Dues for Broadcast Services - Ozarks Public Television (OPT). Ms. Miller Keltner so moved for approval, receiving a second from Ms. Counts.

Motion passed 8-0.

Student Affairs
Report from the Student Body President – Mr. Abdillahi Dirie, Student Body President, gave an overview of accomplishments for the Springfield campus over the past year. He thanked everyone for their support. Mr. Dirie then introduced the 2020-2021 Student Body President, Ms. Tara Orr, a senior majoring in marketing, advertising, and promotion. Ms. Orr shared some areas of focus for the coming year.

Approval of the Wyrick Expenditures Passed by Student Vote – Dr. Siscoe, Vice President for Student Affairs, provided an overview of the Wyrick expenditures passed by a student vote in April 2020 to be implemented in FY2020 and asked for approval (Finance No. 1087-20). The expenditure approved was to combine the Multicultural Resource Center and MRC annex into one facility on the first floor of the Plaster Student Union, with a portion of the funds coming from the Wyrick account. The student body approved $400,000.00 for construction of the first phase with additional funds for the project being covered by university funds when able. A motion was made by Mr. Gore and seconded by Ms. Counts.

Motion passed 8-0.

Dr. Siscoe offered a commendation to Mr. Abdillahi Dirie for service as Student Body President. Moved and seconded, respectively, by Ms. Counts and Ms. Miller Keltner.

Motion passed 8-0.

Dr. Siscoe then offered a commendation to Mr. Ethan Schroeder for service as Student Body Vice President. A motion was made by Mr. Gore and seconded by Ms. Parman.

Motion passed 8-0.

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. Frazier 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 May 15, 2020, meeting of the Board of Governors to consider items of business pursuant to:

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

R.S.Mo. 610.021(3). “Hiring, firing, disciplining or promoting of particular employees by a public government body…”

R.S.Mo. 610.021(10). “Software codes for electronic data processing and documentation thereof…:”

R.S.Mo. 610.021(17). “Confidential or privileged communications between a public governmental body and its auditor…”

Ms. Miller Keltner moved the approval of the resolution and Mr. Gore seconded the motion.

A roll call vote on the motion was as follows: those voting in favor – Governors Counts, Frazier, Gore, Miller Keltner, Parman, Silvey, Tergin, and Wasson; those voting against – none.

Mr. Frazier declared the resolution passed unanimously. The open meeting recessed at 1:10 p.m. to go into closed session.

The open meeting was reconvened at 1:48 p.m.

Adjournment – Mr. Frazier adjourned the meeting at 1:48 p.m., on the motion of Ms. Tergin, the second of Ms. Counts, and the unanimous vote of the Board.

Rowena Stone
Secretary to the Board