May 22-23, 2003, Kirkwood, Missouri

Open Meeting

Present

• The Honorable Thomas E. Atkins, Curator
• The Honorable Angela M. Bennett, J.D., Curator
• The Honorable Marion H. Cairns, Curator
• The Honorable Mary L. James, Curator
• The Honorable M. Sean McGinnis, Curator
• The Honorable Anne C. Ream, O.D., Curator
• The Honorable Connie Hager Silverstein, Curator
• The Honorable Cheryl D.S. Walker, Curator
• The Honorable Don Walsworth, Curator
• Miss Vicki M. Eller, Student Representative to the Board of Curators

Also Present

• Dr. Elson S. Floyd, President
• Mr. Ralph H. Caruso, Jr., Vice President for Information Systems
• Dr. Donald H. Driemeier, Chancellor, UM-St. Louis
• Dr. Martha W. Gilliland, Chancellor, UM-Kansas City
• Mr. R. Kenneth Hutchinson, Vice President for Human Resources
• Ms. Natalie “Nikki” Krawitz, Vice President for Finance and Administration
• Dr. Stephen W. Lehmkuhle, Vice President for Academic Affairs
• Dr. Gary Thomas, Chancellor, UM-Kansas City
• Dr. Ronald J. Turner, Executive Vice President and Director of Cooperative Extension
• Dr. Richard L. Wallace, Chancellor, UM-Columbia
• Mr. Marvin E. “Bunky” Wright, General Counsel
• Mr. Philip Harrison, Assistant to the President
• Ms. Kathleen M. Miller, Secretary, Board of Curators
• Dr. David R. Russell, Director, University Relations
• Mr. Jim Snider, Assistant to the President for State Governmental Relations
• Media Representatives

The Board of Curators met with President Floyd for dinner on Wednesday, May 21, 2003 at the Racquet Club Ladue. The Board of Curators took no action.

A breakfast program was conducted at the Hough Learning Center, Kirkwood School District, to provide the Board of Curators with an example of the outstanding early childhood development programs in the St. Louis area.

An open meeting of the University of Missouri Board of Curators was called to order at 9:05 A.M., on Thursday, May 22, 2003, in the McCallie Lecture Hall, Kirkwood High School, Kirkwood, Missouri, pursuant to public notice given of said meeting. Connie Silverstein, President of the Board of Curators, presided over the meeting.

General Business

• Mike Swboda, Mayor of Kirkwood, welcomed the Board of Curators and the University of Missouri group.
• Dr. McCallie, former principal of Kirkwood High School, welcomed the University of Missouri group.
• Board President’s Report – Connie Hager Silverstein (report outline and transcription on file)
• University President’s Report – Elson S. Floyd, Ph.D. (Report on Proposed Tuition Increase and transcription of actual remarks on file)

It was moved by Curator Atkins and seconded by Curator Cairns, that there shall be a closed meeting with a closed record and closed vote of the Board of Curators, on Thursday, May 22, 2003, and, as needed, on Friday, May 23, 2003, for consideration of:

1. legal action, causes of action or litigation;
2. leasing, purchase or sale of real estate;
3. hiring, firing, disciplining or promotion of employees.

A roll call vote was taken with the following results:

• Curator Atkins voted yes.
• Curator Bennett voted yes.
• Curator Cairns voted yes.
• Curator James voted yes.
• Curator McGinnis voted yes.
• Curator Ream was absent for the vote.
• Curator Silverstein voted yes.
• Curator Walker voted yes.
• Curator Walsworth voted yes.
• President Silverstein declared the motion carried unanimously by the Curators present.

Consent Agenda

It was endorsed by President Floyd, moved by Curator Bennett, seconded by Curator James, and carried, that the following items be approved by consent agenda:

• Item No. 1 – Minutes of the Board of Curators Meetings:
  • March 25, 2003 Special Meeting
  • March 31-April 1, 2003 Board of Curators Meeting
  • April 16, 2003 Special Meeting
• Item No. 2 – Changes to Collected Rules and Regulations:
  • Traffic Regulations, Changes to 120.010-040, UMC, UMKC, UMR, UMSL

Curator Ream was absent for the vote.

Academic and Student Affairs Committee

• Guest Speaker: Quentin Wilson, Commissioner of Higher Education for the State of Missouri (transcript of remarks and discussion on file)
• Panel Discussion: St. Louis area Middle and High School Principals discussed Access, Affordability, Preparedness and Curriculum (transcript of remarks and discussion on file)
• Guest Speaker: Senator Michael Gibbons - Jim Snider, Assistant to the President for State Governmental Relations, introduced Senator Gibbons to speak to the Board on the 2003 regular legislative session (transcript of remarks on file)

Finance and Human Resources Committee

• Information: Preliminary Review of the FY2005 Appropriations Request for Operations, UM – Vice President Krawitz (report on file)
• Information: Actuarial Report/Asset Allocation, UM – Vice President Hutchinson and Vice President Krawitz (documents on file)
• Presentations:
  • Howard Rog, Senior Vice President and Actuary, The Segal Company of New York
  • Michael Paden, UM Assistant Vice President for Benefits
  • Irwin Tepper of Irwin Tepper Associates
• University of Missouri Retirement, Disability and Death Benefit Plan – Actuarial Valuation as of October 1, 2002, The Segal Company (on file)
• University of Missouri Retirement, Disability and Death Benefit Plan – Actuarial Valuation Results as of October 1, 2002, The Segal Company (on file)
• Asset Allocation Study University of Missouri, May 22, 2003 – Irwin Tepper Associates, Inc. (on file)
• Information: Hunter Group Update, UM Health Care – Vice President Krawitz
• University of Missouri Health Care Financial Performance Dashboard, 10 Months ended April 2003 – presented by David Coats, Hunter Group Consultant and Colleen Kivlahan, Chief Medical Officer

The Board took a brief recess at 3:05 P.M. and reconvened at 3:30 P.M.

It was recommended by Vice President Krawitz, endorsed by President Floyd, recommended by the Finance Committee, moved by Curator Ream, seconded by Curator Walker, and carried, that the following recommendations be approved:

1. that the President of the University of Missouri be authorized to develop the 2003-2004 current funds budgets in accordance with the financial summaries (on file) which are based on the assumption that FY 2004 appropriations will be flat in comparison to FY 2003, including the allocation of recurring state appropriations less 3.0% statutory withholdings as follows:
   
   1. General Operations $398,813,132
   2. UMC Hospital & Clinics 8,644,321
   3. Ellis Fischel Cancer Center 4,097,072
   4. MO Rehabilitation Center 9,813,190
   5. MO Institute of Mental Health 2,230,855
   6. MO Kidney Program 3,896,271
   7. Alzheimer's Program 220,554
   8. MOREnet 14,554,269
   9. MOBIUS 630,053
   10. State Historical Society 894,923
   11. Spinal Cord Injury Research 375,000
2. that the 2003-2004 salary and wage principles be adopted as follows:
   
   1. The pool of funds available for salary adjustments in 2003-2004 will be equal to 2% of the campus’s 2002-2003 revised salary and wage base. As priorities allow, the University is encouraged, within each of its campuses and other administrative units, to supplement the general pool to address the most difficult recruitment and retention issues. Salary increases awarded to individuals will be based on relative quality of performance and/or market circumstances.
   2. Wage increases for Service and Maintenance staff (union eligible) will be determined after meet and confer sessions are conducted.;
3. that the President of the University of Missouri be authorized to:
   
   1. make required changes to working capital and reserve funds, and
   2. make supplemental allocations within the funds available to the several campuses and programs, such allocations to be made on the basis of priority and need. The President will report periodically to the Board of Curators any material changes in the sources and uses of current funds;
4. that the President of the University of Missouri be authorized to allocate any one-time or recurring line-item state appropriations, net of anticipated withholdings;
5. that the operating budget for 2003-2004 and allocation as stated herein can be modified as necessary by the President to bring the same into harmony with the state appropriation as finally approved by the governor and any withholdings in excess of those shown above.

Curator Atkins was absent for the vote.

It was recommended by Vice President Krawitz, endorsed by President Floyd, recommended by the Finance Committee, moved by Curator Ream, seconded by Curator McGinnis, and carried, that the following recommendations be approved:

1. Tuition for undergraduate and graduate students be increased $27 per credit hour, and rates, as shown in the documents on file, be approved and become effective with the 2003 fall session.
2. Tuition for professional school students, as shown in the schedule on file, be approved and become effective with the 2003 fall session. The rates for Dentistry and Pharmacy at UM-Kansas City and Medicine and Veterinary Medicine at UM-Columbia include increases in addition to those approved by the Board of Curators in March 2003. The tuition increases range from 0% - 16.3% above the already approved 3.2% increase and are within the range set by the Vice President for Finance and Administration.

Curator Atkins was absent for the vote.

It was recommended by Vice President Hutchinson, endorsed by President Floyd, recommended by the Finance Committee, moved by Curator Ream, seconded by Curator Bennett, and carried, that the following action be approved:

• Effective with the Fall Semester of 2003, on or about September 1, 2003, Collected Rules and Regulations, Section 230.070, pertaining to the Educational Fee Reduction for Spouses and Dependents, shall be amended as follows:
  
  4. Educational Fee Reducttion for Spouses and Dependents
     1. Definitions
        
        1. Employee: Employees must be currently employed as a benefit eligible employee with five years of continuous, full-time service immediately prior to the deadline for registration fee payment and must remain a University of Missouri employee through the beginning of the course in which the spouse/dependent is enrolled. If the employee separates from the University, the spouse/dependent may complete the semester in which enrolled.
        2. Eligible Spouse: The legal spouse of an Employee, excluding a divorced spouse or a spouse separated by contract or decree from the Employee. Employees eligible for the Educational Assistance Program are excluded from the definition of Eligible Spouse.
        3. Eligible Dependent Child or Children: Eligible Dependent Child or Children must meet the criteria required under the definitions of “Child or Children” and “Dependent” based on the terms and conditions of the University of Missouri Medical Benefits Plan with the exception that foster children shall not be eligible under this program. Employees eligible for the Educational Assistance Program are excluded from the definition of Eligible Dependent.
        4. Course: University of Missouri college credit course is defined as any undergraduate, graduate, or professional credit course offered by the institution up to a total of 140 credit hours per eligible spouse or dependent child(ren). University programs of study, which blend undergraduate and graduate courses, are included and may be accessed up to the 140 credit hour limit.
        5. Fees: Educational fees only. Activity fees, books and other expenses are the responsibility of the participant. Application for this educational fee reduction must be made at the time of registration. No educational fee reduction will be granted for courses previously completed. The regular refund policy of the University applies in cases of withdrawal from a course.
     2. Benefit
        
        1. The University will provide a benefit equal to a 50% reduction of educational fees for an Eligible Spouse or an Eligible Dependent Child of Eligible Employees for up to 140 credit hours of University of Missouri college credit courses per Eligible Spouse or Eligible Dependent Child. The fee reduction benefit will not exceed 50% if both spouses or both parents are Eligible Employees. For all courses (undergraduate, graduate, or professional), the rate of such fee reduction shall be based upon the educational fee charged to a resident student for undergraduate courses.

Curator Atkins was absent for the vote.

It was recommended by Vice President Krawitz, endorsed by President Floyd, moved by Curator Ream, seconded by Curator Bennett, and carried, that the following action be approved:

• that the Board of Curators amend the Collected Rules and Regulations on Internal Audit; section 10.050 Standing Committees, Audit Function of the Board of Curators, as follows:

• 10.050 Standing Committees
  • The President of the Board of Curators subject to the approval of the Board shall appoint the following standing committees: Finance and Human Resources Committee; Physical Facilities and Management Services Committee; and Academic and Student Affairs Committee. He shall designate one member of each committee as chairman. The President shall consider in making such appointment that it is desirable for each Board member to serve on as many committees as possible during his term, but that no committee should be left without continuity.
    
    1. Finance and Human Resources Committee – The Finance and Human Resources Committee may have referred to it matters relating to the fiscal and accounting functions of the University and matters relating to personnel, individual benefit programs.
       1. The Vice President for Finance and Administration Treasurer of the University and the Vice President for Human Resources or some other person or persons designated by the President in place of either or both of them shall be an ex officio members of this Committee. and be The Vice President for Finance and Administration and the Vice President for Human Resources shall be responsible for the their respective portions, Finance, Human Resources, of the agenda and for transmitting Committee recommendations.
       2. The Finance Committee and Human Resources Committee shall be the Board Committee on investments.
       3. The Finance and Human Resources Committee in its audit function will assist the Board of Curators in fulfilling its oversight responsibilities relating to: the integrity of the University’s financial statements, the systems of internal control, the performance of the University’s independent auditors and internal audit function, the independent auditor’s qualifications and independence, and the University’s compliance with legal and regulatory requirements.
          
          1. The Finance and Human Resources Committee shall be the Board Committee on audit.
          2. The Finance and Human Resources Committee shall meet four times per year to consider business related to its audit function. Sufficient opportunity for the internal and independent auditors to meet privately with the Committee should be provided. At least annually, the Finance and Human Resources Committee as part of its audit function shall meet separately with the independent auditor and the internal auditor.
          3. The Finance and Human Resources Committee in its audit role may investigate any matter brought to its attention with full access to all records, facilities, and personnel of the University and the authority to engage other individuals as necessary to carry out its duties.
          4. The responsibilities of the Finance and Human Resources Committee in its audit function include, but are not limited to, a review of the internal audit plan, a review of audits completed, a review of annual audited financial statements, and the appointment of the University’s independent and internal auditors.
          5. The Finance and Human Resources Committee may establish processes, procedures, and regulations governing their oversight of the internal and external audit process.
    2. The Physical Facilities and Management Services Committee – The Physical Facilities and Management Services Committee may have referred to it matters relating to the planning, building, maintenance and operation of the physical facilities of the University, and the purchasing of equipment and supplies utilized by the University.
       1. The Vice President for Business Management Finance and Administration of the University or some other person designated by the President shall be an ex officio member of this Committee and be responsible for the agenda and for transmitting Committee recommendations.
    3. Academic and Student Affairs Committee – The Academic and Student Affairs Committee may have referred to it matters relating to curricula, faculty and student affairs.
       1. The Vice President for Academic Affairs of the University or some other person designated by the President shall be an ex officio member of this Committee and be responsible for the agenda and for transmitting Committee recommendations.
    4. Duties
       1. Each Committee shall receive such other matters as may be referred to it by the President of the Board of Curators.
       2. Said Committees shall investigate the matters referred to them and make recommendations to the Board.
       3. Each of said Committees shall meet as business requires and upon the call of the Chairman of the Committee.

Curator Atkins was absent for the vote.

The Board recessed at 4:40 P.M., postponing the closed session until Friday, May 23, 2003.

Open Meeting

Present

• The Honorable Thomas E. Atkins, Curator
• The Honorable Angela M. Bennett, J.D., Curator
• The Honorable Marion H. Cairns, Curator
• The Honorable Mary L. James, Curator
• The Honorable M. Sean McGinnis, Curator
• The Honorable Anne C. Ream, O.D., Curator
• The Honorable Connie Hager Silverstein, Curator
• The Honorable Cheryl D.S. Walker, Curator
• The Honorable Don Walsworth, Curator
• Miss Vicki M. Eller, Student Representative to the Board of Curators

Also Present

• Dr. Elson S. Floyd, President
• Mr. Ralph H. Caruso, Jr., Vice President for Information Systems
• Dr. Donald H. Driemeier, Chancellor, UM-St. Louis
• Vice Chancellor Pat Long for Dr. Martha W. Gilliland, Chancellor, UM-Kansas City
• Mr. R. Kenneth Hutchinson, Vice President for Human Resources
• Ms. Natalie “Nikki” Krawitz, Vice President for Finance and Administration
• Dr. Stephen W. Lehmkuhle, Vice President for Academic Affairs
• Dr. Gary Thomas, Chancellor, UM-Kansas City
• Dr. Ronald J. Turner, Executive Vice President and Director of Cooperative Extension
• Dr. Richard L. Wallace, Chancellor, UM-Columbia
• Mr. Marvin E. “Bunky” Wright, General Counsel
• Mr. Philip Harrison, Assistant to the President
• Ms. Kathleen M. Miller, Secretary, Board of Curators
• Dr. David R. Russell, Director, University Relations
• Mr. Jim Snider, Assistant to the President for State Governmental Relations
• Media Representatives

Curator Silverstein reconvened the open session of the Board of Curators meeting at 9:00 A.M., on Friday, May 23, 2003, in the McCallie Lecture Hall, Kirkwood High School, Kirkwood, Missouri, pursuant to public notice given of said meeting. Connie Silverstein, President of the Board of Curators, presided over the meeting.

General Business

Two Kirkwood High School students performed a string duet at the opening of the meeting.

Physical Facilities and Management Services

It was recommended by Chancellor Wallace, endorsed by President Floyd, recommended by the Physical Facilities Committee, moved by Curator Atkins, seconded by Curator Bennett, and carried, that the following action be approved:

• that the Vice President for Finance and Administration be authorized to employ the firm of Mackey Mitchell Associates, St. Louis, Missouri, for design services for the Southwest Campus Housing at the University of Missouri-Columbia, for a basic services fee of 6.1% of construction cost.

Funding is from:

• Campus Dining Reserves (C5848 for Dining) $300,000
• Residential Life Reserves and Revenue Bonds (C5849 for Housing) 37,518,000
• TOTAL $37,818,000

It was recommended by Interim Chancellor Driemeier, endorsed by President Floyd, recommended by the Physical Facilities Committee, moved by Curator Atkins, seconded by Curator James, and carried, that the following action be approved:

• that the Campus Observatory be named the Richard D. Schwartz Observatory, upon his retirement.

Resources and Planning Committee

Curator McGinnis introduced the James R. Moody & Associates 2003 Budget Report Video
(Mr. Moody was not available to speak to the Board at this meeting. It was suggested that he be invited to a future meeting.)

• Missouri’s Budget Problem: Causes and Possible Solutions, James R. Moody & Associates 2003 Budget Report (on file)
• Chancellor and President Remarks:

It was moved by Curator Walsworth, seconded by Curator Bennett, and carried, that the open meeting of the Board of Curators, May 22-23, 2003, be adjourned at 10:45 A.M., Friday, May 23, 2003.

Closed Meeting

Present

• The Honorable Thomas E. Atkins, Curator
• The Honorable Angela M. Bennett, J.D., Curator
• The Honorable Marion H. Cairns, Curator
• The Honorable Mary L. James, Curator
• The Honorable M. Sean McGinnis, Curator
• The Honorable Anne C. Ream, O.D., Curator
• The Honorable Connie Hager Silverstein, Curator
• The Honorable Cheryl D.S. Walker, Curator
• The Honorable Don Walsworth, Curator
• Miss Vicki M. Eller, Student Representative to the Board of Curators

Also Present

• Dr. Elson S. Floyd, President
• Mr. R. Kenneth Hutchinson, Vice President for Human Resources
• Ms. Natalie “Nikki” Krawitz, Vice President for Finance and Administration
• Mr. Marvin E. “Bunky” Wright, General Counsel
• Ms. Kathleen M. Miller, Secretary, Board of Curators
• Mr. Dennis Cesari, Associate Vice President for Management Services
• Ms. Jackie Jones, Vice Chancellor for Administrative Services, UM-Columbia

Curator Silverstein convened a closed session of the Board of Curators meeting at 10:55 A.M., on Friday, May 23, 2003, in room SA-0, Kirkwood High School, Kirkwood, Missouri, upon approval of resolution by the Board of Curators and pursuant to public notice given of said meeting.

The closed meeting was adjourned at 1:10 P.M., on Friday, May 23, 2003.

Approved by the Board of Curators on July 24, 2003.

Kathleen M. Miller, Secretary

Board of Curators