MINUTES OF THE EXECUTIVE COMMITTEE
OF THE BOARD OF GOVERNORS
MISSOURI STATE UNIVERSITY
September 17, 2014
1. Roll Call:
Present - Dr. Peter Hofherr, Governor (by conference call)
Mr. Steve Hoven, Vice Chair of the Board (by conference call)
Ms. Beverly Miller, Chair of the Board (by conference call)
Ms. Carrie Tergin, Governor (by conference call)
Also
Present - Mr. Clif Smart, President
Mr. Kendall Seal, Governor (joining by conference call at 4:50 p.m.)
Mr. Caleb Doyle, Student Governor
Dr. Drew Bennett, Chancellor of the West Plains Campus (by conference call)
Mr. Ken McClure, Vice President for Administrative and Information Services
Ms. Rachael Dockery, General Counsel
Mr. Steve Foucart, Chief Financial Officer
Ms. Donna Christian, Director of Internal Audit & Compliance
Mr. Ryan DeBoef, Chief of Staff
Dr. Dee Siscoe, Vice President for Student Affairs
Ms. Suzanne Shaw, Vice President for Marketing & Communications
Mr. Michael Jungers, Dean of Students
Dr. Thomas Lane, Assistant Vice President for Student Life and Director of Plaster Student Union
Mr. Matt Morris, Associate Vice President for Administrative and Information Services
Mr. Doug Sampson, University Architect and Director of Planning, Design and Construction
Ms. Tina McManus, Controller
Mr. Rick Wright, Gilmore & Bell (by conference call)
Mr. Bill Burns, Gilmore & Bell (by conference call)
Ms. Reagan Holiday, Edward Jones (by conference call)
Ms. Kate DeProsperis, Edward Jones (by conference call)
Mr. John McAlear, Secretary of the Board
2. Presiding – Ms. Beverly Miller, Chair of the Board of Governors, called the Executive Committee conference-call meeting to order at 4:30 p.m. in Room 203 of Carrington Hall on the campus of Missouri State University in Springfield, Missouri.
3. Approval of Minutes – Ms. Miller mentioned that the first item of business was the approval of the minutes for the open meeting of August 20, 2014. Ms. Tergin so moved, receiving the second of Dr. Hofherr.
Motion passed 3-0.
4. West Plains Campus --- Chancellor Drew Bennett presented a resolution (West Plains Curriculum No. 67-14) for the approval of a new academic program for the Associate of Applied Science in Health Information Technology. He indicated that the certificate program for Health Information Technology was approved by the Board at its June meeting. This action will allow those who complete the certificate program to seamlessly integrate into this degree program. Mr. Hoven so moved, receiving the second of Dr. Hofherr.
Motion passed 3-0.
5. Student Affairs --- Ms. Rachael Dockery, General Counsel, presented a resolution (Board Policies No. 93-14) for the approval of revisions to Governing Policy 5.01 Code of Student Rights and Responsibilities. She explained that there are three driving forces behind these revisions. First, at its July 16, 2014, Executive Committee meeting, the Board approved a new policy entitled “G1.31 Title IX Policy on Sexual Assault, Stalking and Other Forms of Sexual Misconduct” (“Title IX Policy”), in order to ensure compliance with the University’s obligations under Title IX. As a result, the University’s policy “G5.01 Code of Student Rights and Responsibilities” (“Code of Conduct”) requires revision to ensure that its provisions are consistent with the Title IX Policy. The proposed revisions ensure that the same terms, definitions, and procedures are utilized by both the Title IX Policy and the Code of Conduct. Second, Section 1.16 of the Code of Conduct has been updated so that it provides a complete, current, and accurate listing of the facilities that are directly funded, in part, by student fees or fines. Third, Section 4.21 of the Code of Conduct has been updated to ensure that it is consistent with the University’s “Op11.18 Tobacco Use/Smoking Policy.” The proposed resolution was moved and seconded, respectively, by Ms. Tergin and Dr. Hofherr, and a vote was taken after a short discussion.
Motion passed 3-0.
6. Procurement and Financial – Mr. Steve Foucart, Chief Financial Officer, presented Finance No. 1040-14 - RESOLUTION AUTHORIZING THE BORROWING BY MISSOURI STATE UNIVERSITY OF THE PROCEEDS OF AN ISSUE OF EDUCATIONAL FACILITIES REVENUE BONDS (MISSOURI STATE UNIVERSITY), SERIES 2014, IN AN AGGREGRATE PRINCIPAL AMOUNT OF $21,485,000 OF THE HEALTH AND EDUCATIONAL FACILITIES AUTHORITY OF THE STATE OF MISSOURI, TO FINANCE THE COSTS OF CERTAIN EDUCATIONAL FACILITES OF THE UNIVERSITY; AND AUTHORIZING AND APPROVING CERTAIN DOCUMENTS AND ACTIONS IN CONNECTION WITH SUCH BORROWING.
He advised that the marketing of the bonds yesterday and today was extremely successful. This bond issue will provide funding for the new Occupational Therapy Building, renovations to the Jim D. Morris Center, and the new Student Admissions and Success Center, all projects previously approved by the Board. As previously communicated, the purchase of Brick City Building #4 is now anticipated in 2016 and thus the bond issue was reduced. As discussed in the August Executive Committee meeting, Edward Jones, our senior manager, brought in Stifel Nicholas and R.W. Baird to assist in the effort with institutional investors. As of late this morning, only $700,000 of bonds were not subscribed to and Stifel and Baird have committed to these bonds. Funding will take place Friday, September 26, 2014.
Mr. Foucart then summarized the final pricing terms and compared them to the parameters approved by the full Board at its July 31, 2014 meeting: 1) the principal amount was not to exceed $30,000,000 and the final principal amount ended up at $21,485,000; 2) the true interest cost was not to exceed 4.5% and it ended up at 3.41792%; 3) the final maturity was to be no later than October 1, 2044, and it ended up at October 1, 2039; and 4) the weighted average maturity was to be between 10-19 years and it ended up at 14.828 years. He then referred to the maturity schedule in the Purchase Contract and explained that the University will receive a premium of $615,502 over the stated bond amount. This premium, which is not paid back to the bond holders in effect reduces the effective bond interest rates for the institutional issued bonds. Institutional investors prefer to receive a high interest payment and thus are willing to pay a premium, which overall reduces the effective rate to market. Ms. Reagan Holiday, from Edward Jones, next gave a very positive assessment of the bond issue, and Mr. Rick Wright, Gilmore & Bell, mentioned that the full Board had previously voted to give authority to the Executive Committee to approve the final pricing terms.
Mr. Hoven moved the approval of the resolution, receiving a second from Ms. Tergin.
Motion passed 3-0.
7. Facilities and Equipment --- Mr. Ken McClure, Vice President for Administrative and Information Services, presented the following resolutions for the Committee’s consideration:
Phase II renovation of the third floor at Plaster Student Union (Bids & Quotations No. 1475-14); Mechanical Services, Inc., low bid of $333,250 for the base bid plus alternates 1, 2, 3, and 4; total project budget set at $526,645.
Removal of asbestos-containing materials at Sunvilla Tower (Bids & Quotations No. 1476-14); Bales Construction Company, Inc., low bid of $156,900; total project budget set at $195,000.
Approval to increase the additional services allowed for the consultant in conjunction with the renovation of Pummill Hall (Architects & Engineers No. 703-14). With interior demolition complete, it is apparent that existing toilets on all floors are in need of renovation. With this scope of work increase, this $25,000 increase brings the total revised amount of professional services from Dake Wells Architecture to $540,000.
The approval of an Intergovernmental Agreement for Law Enforcement Services between Missouri State University and the City of Springfield (Agreement 351-14). The agreement with the City provides for law enforcement services associated with the Springfield Police Department and the Missouri State University Springfield Police Substation. The total cost to the University of $721,243.57 is split between the Educational & General fund ($540,932.68) and the Residence Life fund ($180,310.89). This represents a 1.8% increase from FY2014. The new agreement is for the period July 1, 2014, through June 30, 2015, and will continue on a month-to-month basis as needed. This month-to-month clause is new and is needed to address situations such as this year when the annual agreement is not being presented for approval until September.
Moved and seconded, respectively, by Mr. Hoven and Ms. Tergin.
Motion passed 3-0.
8. New Business --- President Clif Smart announced that fall 2014 official enrollment numbers are a new system record – 24,489 students. Springfield campus enrollment (22,385) is up 2.7%, while West Plains campus enrollment (2,193) is up 3.3%. The number of freshmen on the Springfield campus (2,801) is up 108 compared to last year. The number of graduate students is 3,420 – an all-time high. The number of students from underrepresented groups is 2,631, up 9% (218) when compared to last year.
Ms. Miller next asked for a recap of last weekend’s campus activities. President Smart commented that a new single-game attendance record was set with 18,386 attending the football game on Saturday night. We sold 500 standing-room only tickets and students were turned away from the new east side of the stadium. He received many very positive comments regarding the new BearFest Village and the overall, festive mood of the entire game-day experience. Dr. Dee Siscoe, Vice President for Student Affairs, added that this was Family Weekend and over 3,000 family members were on campus to be with their students and it was a very positive weekend.
9. Adjournment — Ms. Miller adjourned the conference-call meeting at 5:20 p.m., on the motion of Mr. Hoven, the second of Dr. Hofherr, and the unanimous vote of the committee.
John W. McAlear
Secretary of the Board