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Minutes of Open and Closed Meetings

Kansas City, Missouri

May 27, 2004

 

Index

Board of Curators Development Session (open meeting)

An open meeting of the University of Missouri Board of Curators convened at 8:00 A.M., on Thursday, May 27, 2004, in the “Classroom” in the Administrative Building of the Stowers Institute for Medical Research, Kansas City, Missouri, pursuant to public notice given of said meeting.

Present:
  • The Honorable Thomas E. Atkins, Curator
  • The Honorable Angela M. Bennett, J.D., 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
  • Mr. Shawn J. Gebhardt, Student Representative to the Board of Curators

 

The Honorable Marion H. Cairns was absent.

Also Present:
  • Dr. Elson S. Floyd, President, University of Missouri System
  • Mr. Marvin E. “Bunky” Wright, General Counsel, University of Missouri System
  • Ms. Kathleen M. Miller, Secretary to the Board of Curators
  • Mr. Ralph H. Caruso, Jr., Vice President for Information Systems
  • Dr. Thomas George, Chancellor, UM-St. Louis
  • Dr. Martha W. Gilliland, Chancellor, UM-Kansas City
  • Mr. R. Kenneth Hutchinson, Vice President for Human Resources
  • Mr. Stephen C. Knorr, Vice President for Government Relations
  • Ms. Natalie “Nikki” Krawitz, Vice President for Finance and Administration
  • Dr. Stephen W. Lehmkuhle, Vice President for Academic Affairs
  • Dr. Gary Thomas, Chancellor, University of Missouri-Rolla
  • Dr. Ronald J. Turner, Executive Vice President, University of Missouri System
  • Dr. Richard L. Wallace, Chancellor, UM-Columbia
  • Mr. Philip Harrison, Assistant to the President
  • Mr. David R. Russell, Director, University Relations

The development session focused on the Life Sciences efforts in Kansas City. Dr. William P. Duncan, President, Kansas City Area Life Sciences Institute moderated the meeting. The presenters included:

Dr. William P. Duncan, President, Kansas City Area Life Sciences Institute

Dr. William Barlow Neaves, President and CEO, Stowers Institute for Medical Research
Irvine O. Hockaday, Jr., Retired President and CEO, Hallmark Cards, Inc.; Chair, Life Sciences Progress Assessment Task Force for the Civic Council of Greater Kansas City
 
Dr. James L. Spigarelli, President and CEO, Midwest Research Institute
 
Dr. Martha W. Gilliland, Chancellor, University of Missouri-Kansas City
 
Richard W. Brown, Co-Chair, Stowers Institute for Medical Research; Chair, President and CEO, Stowers Institute for Resource Development (PowerPoint presentation on file)

  A brief tour of the Stowers Institute for Medical Research followed the presentations.

The development session concluded at 10:05 A.M., Thursday, May 27, 2004.

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Board of Curators Finance and Human Resources Committee Meeting (open meeting)

An open meeting of the University of Missouri Board of Curators Finance and Human Resources Committee convened at 10:15 A.M., on Thursday, May 27, 2004, in the Alumni Room of the University Center on the University of Missouri-Kansas City campus, pursuant to public notice given of said meeting.

Present:
  • The Honorable Thomas E. Atkins, Curator
  • The Honorable Angela M. Bennett, J.D., 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
  • Mr. Shawn J. Gebhardt, Student Representative to the Board of Curators
  • The Honorable Marion H. Cairns was absent.
Also Present:
  • Dr. Elson S. Floyd, President, University of Missouri System
  • Marvin E. “Bunky” Wright, General Counsel, University of Missouri System
  • Kathleen M. Miller, Secretary to the Board of Curators
  • Mr. Ralph H. Caruso, Jr., Vice President for Information Systems
  • Dr. Thomas George, Chancellor, UM-St. Louis
  • Dr. Martha W. Gilliland, Chancellor, UM-Kansas City
  • Mr. R. Kenneth Hutchinson, Vice President for Human Resources
  • Mr. Stephen C. Knorr, Vice President for Government Relations
  • Ms. Natalie “Nikki” Krawitz, Vice President for Finance and Administration
  • Dr. Stephen W. Lehmkuhle, Vice President for Academic Affairs
  • Dr. Gary Thomas, Chancellor, University of Missouri-Rolla
  • Dr. Ronald J. Turner, Executive Vice President, University of Missouri System
  • Dr. Richard L. Wallace, Chancellor, UM-Columbia
  • Mr. Philip Harrison, Assistant to the President
  • Mr. David R. Russell, Director, University Relations
  • Mr. Jim Snider,
  • Shirley S. DeJarnette, Treasurer, University of Missouri
  • Robin Pellish, Rocaton Investments Advisors LLC
  • Dr. Brady Deaton, Provost, University of Missouri-Columbia

The Finance and Human Resources Committee met in an open meeting to review the performance of the University’s domestic equity managers. Robin Pellish, participated in the meeting.

On file:

University of Missouri System Retirement and Endowment Funds Manager Selection, Review and Termination Policies, May 27, 2004 (Rocaton)

University of Missouri System Retirement and Endowment Funds U.S. Equity Manager Review, May 27, 2004 (Rocaton)

The Finance and Human Resources Committee meeting concluded at 11:55 A.M.

The Board of Curators luncheon was hosted by the University of Missouri-Kansas City Faculty Senate. Table conversations focused on the University of Missouri-Kansas City service mission. (Musical performance by Musical Breakthroughs Children’s Choir, a UMKC community service program.)

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Board of Curators Open Meeting

An open meeting of the University of Missouri Board of Curators convened at 1:05 P.M., on Thursday, May 27, 2004, in Pierson Auditorium of the University Center, on the University of Missouri-Kansas City campus, pursuant to public notice given of said meeting. Curator James presided over the meeting.

Present:
  • The Honorable Thomas E. Atkins, Curator
  • The Honorable Angela M. Bennett, J.D., 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
  • Mr. Shawn J. Gebhardt, Student Representative to the Board of Curators

The Honorable Marion H. Cairns was absent.

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

 

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General Business

Service Mission Presentation, UMKC - UMKC Spotlight on Service (booklet and folder on file)

University President’s Report – Dr. Elson S. Floyd (transcription on file)

Consent Agenda

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

 

  1. the minutes of the April 1, 2004 Board of Curators special meeting in St. Louis, Missouri (as on file)
  2. excerpts of closed meeting minutes (as on file)
  3. the Spinal Cord Injuries and Congenital or Acquired Disease Processes Research Program proposal recommended for funding 2004 (as on file)

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Resources and Planning

Strategic Planning and Performance Leadership, University of Missouri Strategic Plan, Draft, May 13, 2004 – presented by President Floyd (Draft strategic plan and transcription of Dr. Floyd’s presentation are on file.)

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Academic and Student Affairs

English Language Proficiency Update – presented by Vice President Lehmkuhle (presentation on file)

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Finance and Human Resources

Preliminary Review of the FY2006 Appropriations Request for Operations, UM – presented by Vice President Krawitz (preliminary request and presentation remarks on file)

FY2004 External Audit Scope – presented by Nancy Droesch, Lead Client Service Partner, and Clint Nelson, University Audit Manager, both of Deloitte and Touch LLP (audit scope on file)

MU Health Care Update – presented by Jim Ross, UM Health Executive Director and Hank Wells, CFO, The Hunter Group (on file)

Retirement Trust Actuarial Report, UM – presented by Vice President Hutchinson (October 1, 2003 Actuarial Valuation and presentation remarks on file)

FY2004-2005 Operating Budget, UM – presented by Vice President Krawitz (presentation remarks on file)

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

 

  1. the President of the University of Missouri System be authorized to develop the 2004-2005 current funds budgets in accordance with the attached financial summaries which are based on the assumption that FY2005 appropriations will be at the level in House Bill 1003 as truly agreed and finally passed, including the allocation of recurring state appropriations less 3.0% statutory withholdings as follows:
     
    General Operations - $400,819,361
    UMC Hospital & Clinics (including Ellis Fischel) - $13,135,457
    Missouri Rehabilitation Center - $10,116,691
    Missouri Institute of Mental Health - $2,299,850
    Missouri Kidney Program - $4,016,774
    Alzheimer’s Program - $227,375
    MOREnet - $14,504,401
    MOBIUS - $649,539
    State Historical Society - $922,601
    Spinal Cord Injury Research - $375,000
  2. the following 2004-2005 salary and wage principles be adopted:
      
    The pool of funds available for salary adjustments in 2004-2005 will be equal to 2% of the campus’s 2003-2004 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.
     
    Wage increases for Service and Maintenance staff (union eligible) will be determined after meet and confer sessions are conducted.
  3. the President of the University of Missouri System 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. the President of the University of Missouri System be authorized to allocate any one-time or recurring line-item state appropriations, net of anticipated withholdings.
  5. the operating budget for 2004-2005 and allocations 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.

Overview of FY2004-2005 Operating Budget (on file)

FY2005 Current Funds Budgets (on file)

It was recommended by Vice President Krawitz, endorsed by President Floyd, recommended by the Finance and Human Resources Committee, moved by Curator Bennett and seconded by Curator Walker, that the resolution approving the issuance and delivery of capital project notes, Series FY2004-2005, of The Curators of the University of Missouri, in a principal amount not to exceed $170,000,000, for the purpose of funding the cost of capital projects of the University, be approved as on file.

 

A roll call vote was taken with the following result:

Curator Atkins voted yes.

Curator Bennett voted yes.

Curator Cairns was absent.

Curator James voted yes.

Curator McGinnis voted yes.

Curator Ream voted yes.

Curator Silverstein voted yes.

Curator Walker voted yes.

Curator Walsworth voted yes.

Curator James declared the motion carried.

 

It was recommended by Vice President Krawitz, endorsed by President Floyd, recommended by the Finance and Human Resources committee, moved by Curator Atkins, seconded by Curator Silverstein, and carried, that the following actions be approved:

Approval to enter into Charitable Gift Annuity contracts in all fifty states, subject to review of each state’s requirements, and the approval of the President and General Counsel of the University.

Approval to agree to be bound by the laws of the states of Arkansas, California, Maryland, New Jersey, New York, Oregon and Washington, as required in the charitable annuity contracts issued to donors residing in those states.

Approval to accept the One Million Dollars ($1,000,000) that has been identified as the segregated reserve fund devoted as security for the fulfillment of the obligations of the University under the Charitable Gift Annuities. This money is taken from unrestricted reserves not derived from state appropriations. It shall be placed in a segregated investment fund together with the amounts paid by Donors in exchange for annuities and, further, the determination of how the University’s gift reserve assets should be invested will be reviewed and approved by the Vice President for Finance and Administration, and the Treasurer for the University.

Any agreements entered into by the University are subject to review and approval by General Counsel.

It was recommended by Chancellor Wallace, endorsed by President Floyd, recommended by the Finance and Human Resources Committee, moved by Curator Walsworth, seconded by Curator Ream, and carried, that the following actions be approved:

the Vice President for Academic Affairs and the Vice President for Finance and Administration be authorized to:

  1. take the necessary actions to determine and implement an organizational structure and affiliation with the Missouri Soybean Association and Missouri Food and Fiber best suited to facilitate the development and commercialization of computer software for agricultural crop supply chain management and related activities; and 
  2. develop and execute the necessary documents to effect the selected organizational structure and affiliation. 

Any agreements and/or documents entered into by the University are subject to review and approval by General Counsel.

It was recommended by Chancellor Wallace, endorsed by President Floyd, recommended by the Finance and Human Resources Committee, moved by Curator Bennett, seconded by Curator Walker, and carried, that the following action be approved:

the Vice President for Finance and Administration be authorized to:

  1. take the necessary actions to establish a restricted account for the purpose of maintenance, repair and renovation of the Donald W. Reynolds Journalism Institute and the replacement and purchase of technology, furnishings and equipment; and
  2. in conjunction with the Columbia campus establish a process for transferring Columbia campus funds on an annual basis to the restricted account; and
  3. develop and execute the necessary documents with the Donald W. Reynolds Foundation.
     
    Any agreements and/or documents entered into by the University are subject to review and approval by General Counsel.

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Physical Facilities and Management Services

It was recommended by Chancellor Wallace, endorsed by President Floyd, recommended by the Physical Facilities and Management Services Committee, moved by Curator Silverstein, 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 HOK Sport Inc., Kansas City, Missouri, for design services for the Taylor Building Addition & Renovation at the University of Missouri-Columbia, for a programming and conditions survey fee not to exceed $40,000 and a basic services fee of 8.65% of construction cost.

Funding is from Intercollegiate Athletics Gifts - $8,810,368
(no fund code provided)

It was recommended by Chancellor Wallace, endorsed by President Floyd, recommended by the Physical Facilities and Management Services Committee, moved by Curator Silverstein, 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 Shaughnessy Fickle and Scott Architects, Inc., Kansas City, Missouri, for design services for the Reynolds Journalism Institute Addition & Renovation, at the University of Missouri-Columbia, for a basic services fee of 8.9% of construction cost. 

Funding is from:
 
Donald W. Reynolds Foundation Grant -   $17,565,554 
Campus Facilities Maintenance & Repair - $1,182,000
TOTAL -                                                     $18,747,554
(no fund code provided)

It was recommended by Chancellor Gilliland, endorsed by President Floyd, recommended by the Physical Facilities and Management Services Committee, moved by Curator Walsworth, 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 HNTB Architecture, Inc., Kansas City, Missouri, for design services for the Hospital Hill Parking Structure, at the University of Missouri-Kansas City, for a fee not to exceed $293,500 for program planning and preparation of design/build guidelines.

 
Funding is from Revenue Bonds - $14,000,000

(no fund code provided)

It was recommended by Vice President Krawitz, endorsed by President Floyd, recommended by the Physical Facilities and Management Services Committee, moved by Curator Walker, seconded by Curator Bennett, and carried, that the following action be approved:

that the Vice President for Finance and Administration be authorized to amend the contract dated September 1996 between the University of Missouri and IDX Systems Corporation, Burlington, Vermont. This amended contract will cover additional software licenses, installation, and maintenance fees ($1,451,520) and professional service fees ($762,980) necessary to complete a two-year implementation effort. The total contract cost is $2,214,500.

 
Funding is from:

Integrated Technology Services Capital Equipment/Infrastructure - $2,214,500

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

that the Vice President for Finance and Administration be authorized to approve a sole-source contract with Dresser-Rand, Wellsville, New York, for up to $1,100,000, for repairs and overhaul of Turbine Generator Number 7, for the University of Missouri-Columbia.

 
Funding is from Power Plant Maintenance and Repair - $1,100,000
(MoCode 5920)

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

that the plaza area north of the Paige Sports Arena be named the “Walsworth Family All-American Plaza.”

Curator Walsworth abstained from participation and any discussion and abstained from voting on the motion.

General Business

University of Missouri Wellness Program Update – presented by Vice President Atkins (no report on file)

It was moved by Curator Atkins and seconded by Curator Walker, that there shall be a closed meeting with a closed record and closed vote of the Board of Curators, on Thursday, May 27, 2004, 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 was absent.

Curator James voted yes.

Curator McGinnis voted yes.

Curator Ream voted yes.

Curator Silverstein voted yes.

Curator Walker voted yes.

Curator Walsworth voted yes.

Curator James declared the motion carried.

 

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Board of Curators Closed Meeting

A closed meeting of the University of Missouri Board of Curators convened at 4:55 P.M., following a five-minute recess upon conclusion of the first open meeting, on Thursday, May 27, 2004, in the Chancellor’s Dining Room of the University Center, on the University of Missouri-Kansas City campus, pursuant to public notice given of said meeting. Curator James presided over the meeting.

Present:
  • The Honorable Thomas E. Atkins, Curator
  • The Honorable Angela M. Bennett, J.D., 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
  • Mr. Shawn J. Gebhardt, Student Representative to the Board of Curators

The Honorable Marion H. Cairns was absent.

Also Present:
  • Dr. Elson S. Floyd, President
  • Mr. Marvin E. Wright, General Counsel
  • Ms. Kathleen M. Miller, Secretary to the Board of Curators
  • Mr. R. Kenneth Hutchinson, Vice President for Human Resources
  • Ms. Natalie “Nikki” Krawitz, Vice President for Finance and Administration
  • Dr. Gary Thomas, Chancellor, UM-Rolla
  • Mr. Dennis Cesari, Associate Vice President for Management Services
  • Mr. Larry Gates, Associate Vice Chancellor for Planning and Budget, UM-Kansas City

[101] Property Sale Item for the University of Missouri-Columbia – The University closed on this property, 1818 Keosauqua Way, Polk County, Iowa, on July 29, 2004. See excerpt of closed minutes, pending Board of Curators approval of excerpt, September 9-10, 2004.

It was recommended by Chancellor Gilliland, endorsed by President Floyd, recommended by the Physical Facilities and Management Services Committee, moved by Curator Silverstein and seconded by Curator Walker, that the following action be approved:

the Vice President for Finance and Administration be authorized to enter into a lease with Platte County, Missouri, for 9,390 square feet, at the Platte County Resource Center, 11724 N. W. Plaza Circle, Kansas City, Missouri, from October 1, 2004, to December 31, 2014, for the University of Missouri-Kansas City, at an annual cost of $15 per square foot ($140,850), plus a pro rata share of maintenance, utilities, and snow removal. The University will have the option of canceling annually, with payment of the unamortized cost of finishing out the space.

Funding is from Class Fees - $140,850

A roll call vote was taken with the following results:

Curator Atkins voted yes.

Curator Bennett voted yes.

Curator Cairns was absent.

Curator James voted yes.

Curator McGinnis voted yes.

Curator Ream voted yes.

Curator Silverstein voted yes.

Curator Walker voted yes.

Curator Walsworth voted yes.

Curator James declared the motion carried.

The University executed a lease of property at 11724 N.W. Plaza Circle, Kansas City, Missouri, from Platte County, Missouri on June 16, 2004 for the University of Missouri - Kansas City for the period October 1, 2004 to December 31, 2014, at an annual cost of $140,850, plus a pro rata share of maintenance, utilities, and snow removal. The University will have the option of canceling annually, with payment of the unamortized cost of finishing out the space.

[103]Property Lease Item for the University of Missouri-Rolla– This item has been excluded from the minutes and will be presented to the Board of Curators for approval following completion of transaction of subject matter.

Litigation Report – presented by General Counsel Wright (no report on file)

There being no further business to come before the Board of Curators in a closed meeting, the closed meeting was adjourned at 5:10 P.M., on Thursday, May 27, 2004.

 

It was moved by Curator Silverstein, seconded by Curator Walker, and carried, that the meeting of the Board of Curators, May 27, 2004, be adjourned. Curator James declared the meeting adjourned at 5:11 P.M., on Thursday, May 27, 2004.

 

The following individuals were recognized at a special awards ceremony and reception on Wednesday, May 26, 2004:

Dr. Walter Schroeder was awarded the Curators’ Award for Scholarly Excellence.

Dr. Mark Ryan was awarded the Presidential Award for Outstanding Teaching.

Dr. S. Dale Cutkosky was awarded the Presidential Award for Research and Creativity.

Prof. Gerald Hitzhusen was awarded the C. Brice Ratchford Memorial Fellowship Award.

 

 

Approved by the Board of Curators on July 23, 2004.

 

Kathleen M. Miller, Secretary
University of Missouri Board of Curators

Reviewed 2019-08-05