MINUTES OF THE BOARD OF GOVERNORS’
FINANCE AND FACILITIES COMMITTEE
MISSOURI STATE UNIVERSITY
THURSDAY, DECEMBER 12, 2019, 9:00 A.M.
PSU BALLROOM EAST, 3RD FLOOR
Present - Ms. Amelia Counts, Committee Chair
Mr. Craig Frazier, Committee Member
Mr. Gabriel Gore, Committee Member
Mr. William Miller, Committee Member
Ms. Beverly Miller Keltner, Committee Member
Mr. Kendall Seal, Committee Member
Ms. Carol Silvey, Committee Member
Mr. Gregory Spears, Committee Member
Absent - Ms. Carrie Tergin, Committee Member
Also Present - Mr. Clifton M. Smart III, President of the University
Dr. Jim Baker, Vice President for Research and Economic Development and International
Programs
Mr. Michel Bampoe, Assistant Director of Human Resources, Benefits
Ms. Donna Christian, Director of Internal Audit and Risk Management
Mr. Jeff Coiner, Chief Information Officer
Ms. Jennifer Cox, Assistant to the Vice President for Administrative Services
Mr. Ryan DeBoef, Chief of Staff and Assistant to the President for Governmental Relations
Ms. Laura Derrick, Project Manager-Architect for Planning, Design and Construction
Ms. Rachael Dockery, General Counsel and Chief Compliance Officer
Mr. Brent Dunn, Vice President for University Advancement
Dr. Frank Einhellig, Provost
Ms. Tammy Few, Director of Human Resources
Mr. Steve Foucart, Chief Financial Officer
Mr. David Hall, Director University Safety
Dr. Rob Hornberger, Associate Vice President for Enrollment Management and Services
Dr. David Hough, Dean, College of Education
Mr. Brad Kielhofner, University Engineer and Director of Facilities Management
Mr. Allen Kunkel, Associate Vice President for Research and Economic Development
Dr. Shirley Lawler, Chancellor, West Plains Campus
Ms. Emily McGee, Associate Director for Planning, Design and Construction
Ms. Natalie McNish, Senior Auditor, Internal Audit and Risk Management
Dr. David Meinert, Dean, College of Business
Ms. Shirley Mitchell, Senior Accountant-Analyst, Provost Office
Mr. Matt Morris, Vice President for Administrative Services
Ms. Andrea Mostyn, Director of University Communications
Mr. Tom Peters, Dean of the Library
Mr. Wes Pratt, Chief Diversity Officer and Assistant to the President
Mr. Greg Rainwater, Budget and Financial Manager, Provost Office
Ms. Claudette Riley, Education Reporter for Springfield News-Leader
Mr. Scott Schneider, Director of Business and Support Services, West Plains Campus
Ms. Cindy Schull, Director of Grants and Foundation
Ms. Jennifer Severson, Director of Accounting and Budgeting, Financial Services
Dr. Dee Siscoe, Vice President for Student Affairs
Dr. Mark Smith, Dean, McQueary College of Health and Human Services
Ms. Rowena Stone, Executive Assistant to the President
Mr. Mike Wills, Director of Procurement Services
Ms. Kristan Gochenauer, Secretary of the Board of Governors
1. Roll Call – Ms. Amelia Counts, Committee Chair, called the Finance and Facilities
Committee meeting to order at 9:20 a.m. on Thursday, December 12, 2019, on the Missouri
State University campus.
2. Approval of Minutes – Ms. Counts mentioned that the first item of business was the approval of the minutes from the October 25, 2019, meeting. Ms. Carol Silvey made a motion, receiving a second from Mr. Gabriel Gore.
Motion passed unanimously.
3. Review of Bond Issue – Mr. Steve Foucart, Chief Financial Officer, reported that the Executive Committee of the Board of Governors met in November and approved the final terms of (1) the University’s Auxiliary Enterprise System Revenue Bonds, Series 2019A, and (2) the Health and Educational Facilities Revenue Bonds (Missouri State University), Series 2019B. Mr. Foucart reported that the parameters set by the Board of Governors’ was achieved and the sale of the bonds closed on December 4, 2019, with a 2.76% rate for auxiliary bonds and 2.65% rate for MOHEFA bonds. The result is that Missouri State University is to save $1.5 million over the life of the bonds.
4. Consent Agenda Procurement Report – Mr. Foucart reviewed the consent agenda procurement report that will require approval at the regular Board of Governors’ meeting scheduled later in the day.
5. IDEA Commons Update – President Clif Smart provided an update on progress made to the IDEA Commons project since the last Board of Governors’ Executive Committee meeting. Missouri State University had been negotiating and working on a framework for a formal letter of intent with Vecino Group over the addition of Jordan Valley Innovation Center (JVIC) building IV. As of 9:04 a.m., an agreed upon letter of intent had been completed.
Ms. Rachael Dockery, General Counsel and Chief Compliance Officer, reviewed the terms outlined in the letter of intent to move forward with the expansion of JVIC IV with Vecino Group (Vecino). Vecino will remove the existing structure on the property, build a 30,000 square foot building, meeting University aesthetic and infrastructure requirements, and the total project is not to exceed $14.4 million dollars. The letter also outlines the leasing commitment terms and potential for the University to purchase the building after seven years.
President Smart shared that the letter of intent gives the University confidence and momentum to continue with phase II and III of the original expansion plan to JVIC and that the University will continue to work on the master agreement with Vecino. President Smart then thoroughly outlined the risks associated with the letter which included, but are not limited to, being unable to sell the new market tax credits, not receiving state funding, the project runs out of money or goes over budget, or that the University will be unable to purchase the building back at the end of the seven years. The board asked questions about these risks and discussed and analyzed the risks associated with the transaction in detail. The letter of intent was created to protect the University, outlining terms with major elements.
Per the recommendation of Mr. Gabriel Gore, Board members will review the letter of intent and resolution prior to the regular meeting later in the day. Additional discussion and a formal vote will take place at the regularly scheduled Board meeting.
6. Year to Date Financial Review – Mr. Foucart reported the year to date financials through October 2019. He noted that in FY20 there was a slight increase in net position but that the University is tracking slightly below last year. Missouri State University West Plains is tracking well and down in expenses. He stated that overall the budget is tracking well, and the University is in a strong financial position.
7. Facilities Update – Mr. Matt Morris, Vice President for Administrative Services,
provided an update on facilities and construction projects. A presentation with photos
of updates was shown. The Cooperative Engineering Expansion and the eFactory Business
Incubator Expansion at the Robert W. Plaster Center for Free Enterprise is a 30,000
square foot addition that is in process. The project is funded 25% from the University
and 75% from grants and external sources. The 14,000 square foot classroom addition
to McQueary Hall is funded 40% from private funds and 60% from the State of Missouri
through MoExcels funding. The 21,000 square foot multi-purpose addition at Greenwood
Laboratory School is a $6.4 million dollar project funded 50% from the University
and 50% by private donations. This project is in process and is expected to be completed
by fall of 2020. The developer led residence hall, Holland House, is a .92 acre site
that includes a 7 story unit featuring 285 parking spaces and 402 beds. Bryan Properties
is overseeing the project and making progress. The Ozarks Educational Center at Bulls
Shoals Field Station is a $2.2 million project that is funded 50% by the University
and 50% by the State. This project is scheduled to be ready in spring 2020, as early
as February 1. The 800 seat outdoor amphitheater on the West Plains campus was completed
this past fall and the space was dedicated at an event on October 15, 2019.
8. Foundation Review – The Board commended Mr. Brent Dunn, Vice President for University
Advancement, on a job well done for the It’s On! event held on October 26, 2019, that
kicked off the Onward, Upward Campaign. Mr. Dunn reviewed gifts through November 2019.
Annual gifts are tracking slightly down while one-time gifts and deferred commitments
are up. Overall tracking slightly down but should be on track with an expected gift
coming in January 2020.
9. Adjournment – Ms. Counts adjourned the Finance and Facilities Committee meeting
at 10:20 a.m. on the motion of Mr. Gore, the second of Mr. Frazier, and the unanimous
approval of the committee.
Rowena Stone
Secretary to the Board