Board of Trustees Meeting Agenda | May 13, 2021

May13-14,2021

CWU TRUSTEES QUARTERLY BOARD MEETING May 13, 2021

Thursday, May 13

1:00

CALL TO ORDER • Approval of the Agenda • Approval of meeting Minutes

1:05-2:30

WORK SESSION – LONG-TERM INVESTMENTS

• Budget Overview & Forecast • Long-term Investment Priorities

2:30-3:30

EXEC SESSION BRIEFING

• RCW 42.30.110(g).

3:45-5:00

HEALTH SCIENCES / UNIVERSITY HOUSE VISIT

5:00-6:00

BOARD RECEPTION & DINNER

•

No business will be conducted.

Central Washington University Board of Trustees May 13, 2021

ACTION – Approval of the minutes of the regular meeting of February 25, 2021.

We recommend the following motion:

The Board of Trustees of Central Washington University hereby approves the minutes of the regular meeting of February 25, 2021.

Submitted:

Linda Schactler Chief of Staff

Approved for Submittal to the Board:

James L. Gaudino President

Board of Trustees Minutes Board Meeting (conducted virtually and streamed live and recorded at media.cwu.edu)

February 25, 2021 February 25, 2021 EXECUTIVE SESSION

The board convened in executive session at 1:03 p.m. for 30 minutes as allowed per RCW 42.30.110 (i). At 1:30 p.m. the executive session was extended an additional 10 minutes. The executive session ended at 1:40 p.m.

Trustees Present : Ron Erickson, Chair Robert Nellams, Vice Chair Erin Black

Ray Conner Gladys Gillis Jeff Hensler

Zabrina Jenkins Nate McMillion Staff to the Board: James Gaudino, President Linda Schactler, Board Secretary & Chief of Staff Joel Klucking, Board Treasurer & Vice President for Business & Financial Affairs Kim Dawson, Executive Assistant to the President/Board of Trustees Alan Smith, Assistant Attorney General Executive Faculty & Staff: Michelle DenBeste, Provost/Vice President for Academic & Student Life BUSINESS MEETING Chair Erickson convened the board meeting at 1:41 p.m. Ms. Schactler took roll to confirm that a quorum of the Board was present. Approval of Agenda Motion 21-04: Ms. Gillis moved that the Board of Trustees of Central Washington University approve the agenda of the meeting of February 25, 2021. Mr. Nellams seconded the motion, which the board unanimously approved. Approval of Minutes Motion 21-05: Ms. Gillis moved that the Board of Trustees of Central Washington University approve the minutes from the meetings of Oct 29-30, 2020, Nov 13, 2020, Dec 18, 2020, and Jan 14, 2021. Mr. Nellams seconded the motion. The motion was approved.

PUBLIC COMMENT • Chris Mattinson, Chair, Department of Geology, commented as a Geology faculty member and chair on CWU’s challenges related to COVID-19 and the recent budget recalculations. FALL 2021 OPENING PLAN Provost DenBeste presented on the plans for opening in the fall. She explained that planning is well underway for a near-normal fall quarter, 2021. CWU is making several assumptions, which have been discussed with our county health partners and which are beginning to be discussed with university constituencies.

Assumptions:

1. Traditional academic schedule with fall quarter running September 22 to December 10, 2. Most students and employees will be back on campus, 3. Residential halls will be near capacity, with Munson Hall retained as quarantine space, 4. Vaccinations will be widely available to all who wish to be vaccinated, 5. Physical distancing requirements will be relaxed, 6. Mask wearing will continue to be mandatory, at least for the beginning of the fall quarter. Many questions remain about fall planning and our planning team continues to prepare for a variety of scenarios. BUDGET STATUS AND FORECAST Enrollment Forecast Vice President Hibbard began with a short enrollment forecast. He reported that it has been another unprecedented cycle in college enrollment, nationwide. The fall 2020 first-year, term-to-term persistence rate dropped from 93 percent to 87 percent compared to last year’s first-year cohort. Despite these challenges, enrollment figures were in line with the 5.1-percent overall decline in fall 2020. Enrollment for winter quarter 2021 is 10,526 graduate and undergraduate students, a drop of 606 students over last year (-5.4 percent). These figures include students with admit types of first-year, transfer, post-baccalaureate, re-admit, and graduate. Winter enrollment in high school dual credit programs (Running Start and College in the High School) experienced a year-over-year increase of 21.9 percent: from 823 in winter 2020 to 1003 in winter 2021. Currently, 8,111 first-year students have applied for fall 2021, a 2 percent increase over last year. The next application-completion campaign will conclude March 1, 2021 and will have generated most of our first-year applications. To date, CWU has admitted 6,556 first year students, a 4-percent decrease over last year. Additionally, 1,086 students have committed, vs 1,125 prior year (a 3-percent decrease). Overall, these figures are encouraging, given significant changes in our recruitment strategies due to the pandemic. Financial Position and Forecast Vice President Klucking reported that seven months into the current fiscal year, CWU’s operating budget shows the widespread impacts of the pandemic on operating revenues. The budget enacted by the Board in July assumed a $25-million reduction in operating revenues. Now, the reduction has increased to nearly $50 million. This is due largely to the impact of having fewer students living, eating, shopping,

2 Board of Trustees Minutes February 25, 2021

and seeking entertainment on campus. As well, a 5-percent decline in enrollment has had a significant impact on tuition and fee revenue. Operating expenses are also down significantly, but not enough to offset the reduction in revenues, so without federal or state assistance the university will experience a $12-million operating loss. Summer furloughs, FTE reductions, layoffs and reductions in goods and service spending have met or exceeded planned cost-reduction plans. However, the unplanned costs directly attributable to COVID-19 such as PPE, testing, and disinfecting have offset savings. In spite of these very challenging circumstances, the budget outlook remains cautiously optimistic. CWU will receive federal assistance through the recent Coronavirus Response and Relief Supplemental Appropriations Act of 2021, and the governor’s proposed budget had some encouraging signs, both in the biennial operating and capital budgets. PRESIDENT’S REPORT Long-term budgeting considerations. As CWU adjusts to new budget challenges, it will be important for the university to look forward rather than backward to the “pre-COVID” budget. CWU’s reality lies ahead of us, not behind. For the past decade, CWU has embraced a long-term budget-planning philosophy. Anticipating budget opportunities and challenges has helped us prepare for the digital world that has overtaken everything we do, and carried us through two of the worst financial challenges ever to face this institution: the Great Recession and the coronavirus pandemic. As CWU emerges from the pandemic, we must be thinking about key investments necessary to ensure the university’s ability to deliver relevant, efficient, and compelling educational content and services. Approval of Development of Long-Term Investment Recommendations Motion 21-06: Mr. Conner moved that the Board of Trustees of Central Washington University direct staff to develop and present at the May board meeting, recommendations for long-term investment. Ms. Gillis seconded the motion. The motion was approved. Facilities Financial Sponsorship Matrices. The Department of University Advancement, in consultation with university partners, has developed a matrix to guide the financial sponsorship of two new facilities, the $53.5-million Health Sciences facility, due to open January 2022, and the $61-million Health Education project, the renovation of and addition to Nicholson Pavilion. The matrices outline the cost to benefactors of naming various facilities and these charitable contributions are managed by University Advancement. The actual facility name, however, must be authorized by the president or the Board of Trustees. Communications. The president noted communications from the Associated Students of CWU and from the Faculty Senate. ACTION AGENDA Approval of Consent Agenda The formal recognition for our faculty and staff is contained in our consent agenda. Motion 21-07: Mr. Nellams moved that the Board of Trustees of Central Washington University hereby approves the consent actions items submitted February 25, 2021. Ms. Black seconded the motion. The motion was approved.

3 Board of Trustees Minutes February 25, 2021

Approval of Financial Sponsorship Plan for Health Education Building Motion 21-08: Ms. Black moved that the Board of Trustees of Central Washington University hereby approves the financial naming roster for the new Health Education Building as presented. Mr. Hensler seconded the motion. The motion was approved. Approval of Financial Sponsorship Plan for Health Sciences Building Motion 21-09: Ms. Black moved that the Board of Trustees of Central Washington University hereby approves the financial naming roster for the new Health Sciences Building as presented. Ms. Gillis seconded the motion. The motion was approved. Approval of Technology Fee Adjustment Motion 21-10: Mr. Nellams moved that the Board of Trustees of Central Washington University hereby restores the temporarily reduced Technology Fee to its original level, $30 per student per quarter, beginning spring quarter 2021. Mr. Conner seconded the motion. The motion was approved. Approval of Housing and Dining Fee Increase Motion 21-11: Mr. Conner moved that the Board of Trustees of Central Washington University hereby approves the Auxiliary Services Housing and Dining maximum rate increase, not to exceed five percent in the aggregate, for fiscal year 2022. Ms. Gillis seconded the motion. The motion was approved. Endorsement of Fall 2021 Opening Plan Motion 21-12: Mr. Nellams moved that the Board of Trustees of Central Washington University endorses the recommendation of the CWU COVID Planning Team and hereby endorses the 2021 Fall Opening Plan this day February 25, 2021. Mr. McMillion seconded the motion. The motion was approved. Approval of BS Data Science Motion 21-13: Mr. Nellams moved that the Board of Trustees of Central Washington University endorses the recommendation of the Faculty Senate (Motion No. 19-67 and Motion No. 20-06) and hereby approves the Bachelor of Science Data Science this day February 25, 2021. Ms. Gillis seconded the motion. The motion was approved.

The next regularly scheduled meeting of the board will be in May, on the 13 th and 14 th .

Meeting adjourned at 3:21 p.m.

Linda Schactler, Secretary to the

Ron Erickson, Chair CWU Board of Trustees

CWU Board of Trustees

4 Board of Trustees Minutes February 25, 2021

Central Washington University Board of Trustees May 13, 2021 EXECUTIVE SUMMARY – Long-term Investment

Extreme restrictions associated with the delivery of educational programs and the operation of the residential campus have placed historic stress on university resources. Federal assistance and a flat state budget have forestalled a budget crisis for now, but the future is uncertain. Public health regulations and challenges continue to shift and CWU’s enrollment position will not recover fully for some time. Federal COVID-relief funds are “one-time” funds; they may only be used once, are restricted other ways in their use. Similarly, the absence of state funding cuts in FY21 also will result in the availability of funding that only can be used once. At the board’s February meeting, trustees expressed the need to plan strategically for the emergence from the pandemic. Rather than looking backward to “pre-COVID” budgets, the trustees directed that the university should look forward and construct budgets based on the work needed to support student success and to ensure a stable and effective educational environment going forward. In February the board unanimously approved a motion directing staff to “develop recommendations for long-term Investments that will position the university to deliver a unique, relevant and high-quality educational experience that differentiates CWU from other Washington universities.” At the May 13 meeting of the board, President Gaudino will outline opportunities for one-time investment, that may occur in phases over more than one year. The investments support one of CWU’s three top priorities and/or reduce liability. The investments are of value to the entire enterprise of the university and fall generally into two categories: updating and upgrading information infrastructure and modernization of equipment. Following this summary is additional information for each of these investments.

Submitted by:

Approved for Submittal to the Board:

Linda Schactler, Secretary to the Board

James L. Gaudino, President

CENTRAL WASHINGTON UNIVERSITY Board of Trustees May 13, 2021

EXECUTIVE SUMMARY – Enrollment Management College enrollment trends during the pandemic continue to vary greatly across institution type and region. Some of the variance can be explained by the variety of ways institutions responded to the virus. While some institutions moved to mostly online course modality and limited residential housing and programming, other institutions did not. CWU’s transition to mostly distance education modalities last spring offered a safer environment for our students and community, yet negatively impacted overall enrollment. Currently, CWU carries this decline in enrollment through spring 2021, with 584 fewer students over the prior year, a 6 percent decline. This is slightly greater than CWU’s 5.4-percent, year-over-year decline last fall. These figures include students with admit types of first-year, transfer, post-baccalaureate, re- admit, and graduate. CWU continues to see year-over-year increases in re-admit (+66 students, +15 percent) and graduate (+62 students, +12 percent) student enrollment in spring 2021. Much of the decline in year over year enrollment for spring 2021 can be attributed to fall to spring persistence. While our fall 2020 transfer cohort persisted at a similar rate than past cohorts (90.5 percent), our fall 2020 first-year cohort persistence rate from fall to spring dropped to 83.9 percent, a 3.4 percentage point drop from the prior five year average of 87.3 percent. The overall impact of the lower persistence rate is amplified by the lower than anticipated fall 2020 first-year cohort. For comparison, 1819 of our fall 2019 new first-year students were enrolled the following spring, compared to just 1402 of our new fall 2020 first-year students, a difference of 417 enrollments. CWU is projecting a slight decline in fall 2021 overall enrollment: about 10,700 graduate and undergraduate student headcount in fall 2021, which is a decline of 471 students from the prior year. Given the plan to resume in-person learning and increase student housing this fall, enrollment declines are expected to slow, and then to rebound in the next 12-18 months. Fall 2021 Recruitment Cycle Currently, 9,392 first-year students have applied for fall 2021, a 1-percent increase over this time last year. These figures demonstrate application-pool strength above expectations, given the inability of CWU recruiters to visit high schools and host campus tours. Fifty-four percent of the pool is comprised of Traditionally Underrepresented Student Groups (TUSGs), a record for CWU. Eighteen percent of the application pool is domestic, non-resident, compared to just 15 percent last year. To date, CWU has admitted 8,554 first year students, a 3-percent increase over last year; eight-percent fewer have committed (1,775 vs 1,939 last year), which may demonstrate a delay in decision-making. However, these figures are encouraging, given the significant changes in our recruitment strategies due to the pandemic. Early projection modeling suggests 1,885 to 2,068 new, first-year students will enroll in

Enrollment Management 400 East University Way • Ellensburg WA 98926-7467 • Office: 509-963-3130 • Fax: 509-963-3065 EEO/AA/TITLE IX INSTITUTION • FOR ACCOMMODATION E-MAIL: CDS@CWU.EDU

fall 2021. However, these models do not take into account the potential impact of the changes and uncertainties associated with the pandemic. The enrollment of transfer students is expected to continue a multiyear downward trend. National Student Clearinghouse data confirms another year of enrollment decline for those seeking an associate’s degree. In spring, this sector experienced a 10.5 percent decline nationwide. These declines likely will negatively impact transfer student enrollment at CWU. However, early indicators suggest CWU is still a destination of choice for transfer students. Currently, fall 2021 transfer applications are nearly even with 2020 (1,502 vs 1,511 prior year); we have admitted 1,122 students (vs 1,224 last year). Although early in our confirmation cycle, 658 transfer students have committed to CWU (vs 670 the prior year). Strategic Enrollment Management (SEM) Plan The SEM plan, Destination 2025 , is entering year-two implementation, with more than 100 projects and initiatives in support of three goals: increase new student recruitment, increase enrollment of traditionally under-represented student groups, and improve retention, persistence, and degree time- to-completion. Currently, 63 percent of this year’s project is complete. The SEM Advisory Council is moving to a bi- annual planning-refresh process, in collaboration with the Project Management Office (PMO). This will allow greater flexibility for CWU to respond to “unknowns” and direct resources where most needed most to achieve the goals outlined in the plan.

Submitted by:

Approved for Submittal to the Board:

James. L. Gaudino President

Josh Hibbard, PhD Vice President for Enrollment Management

Enrollment Management 400 East University Way • Ellensburg WA 98926-7467 • Office: 509-963-3130 • Fax: 509-963-3065 EEO/AA/TITLE IX INSTITUTION • FOR ACCOMMODATION E-MAIL: CDS@CWU.EDU

BUDGET OVERVIEW Enrollment and Finance Reports

CWU Board of Trustees – May 13, 2021

Josh Hibbard, VP of Enrollment Management Joel Klucking, VP of Business & Financial Affairs

Spring 2021 Report

Admit Type

Spring 2020 Spring 2021 Percent Change

First Year Transfer Post Bacc Readmit Graduate

5,461 3,947

5,011 3,735

-8% -5%

218 447 525

168 513 587

-23% +15% +12%

Total

10,598

10,014

-6%

Fall 2021 Indicators for First Year Students

• Applications: +1% (9,392 vs 9,271)

• Admitted students: +3% (8,554 vs 8,337)

• Confirmed/Committed Students: -8% (1,775 vs 1,939)

Fall 2021 Projections

Percent Change

Fall 2020 Fall 2021

Undergraduate

10,507

10,050

-4.3%

Graduate

664

650

-2.1% -4.2%

Total

11,171

10,700

From February Board Meeting

FISCAL YEAR 2021

Better/ (Worse)

• Full year forecast shows increasing deficits (+$2.6M) • CWU System ~$9M operating loss • Does not reflect impact of federal recovery funding • State Budget critical

OPERATING FUNDS

Budget

Forecast

In Thousands

Revenues

State General Local General

123,709 122,916

(793)

31,649 28,989 (2,660) 46,070 24,556 (21,514)

Enterprise Funds Student Funds

13,500 12,824

(676)

Total Operating Revenues

214,928 189,285 (25,643)

EXPENSES

State General Local General

125,925 125,069 34,743 30,073

856

4,670

Enterprise Funds Student Funds

50,562 35,322 15,240

12,971 10,720

2,251

Total Operating Expenses

224,201 201,184 23,017

Operating Net

(9,273)

(11,899)

(2,626)

Higher Ed Emergency Relief Funding

CWU HEERF Funding Student Aid Portion HEERF II $3,847,692 HEERF III $12,057,896 HEERF I $3,847,692

Institutional Portion $3,847,692 $9,740,740 $12,057,895 $25,646,327

Total Award

Remaining

$7,695,384 $13,588,432 $24,115,791 $45,399,607

$0 $0

$24,115,791

Total $24,115,791 All institutional portions of HEERF I & II have been used to offset revenue losses in Enterprise Funds: Housing, Dining, Bookstore, Parking) to avoid violating bond covenants. $19,753,280

Federal Funding – Restricted Use

Student Direct Assistance Requirements: • Any component of cost of attendance • Emergency costs due to coronavirus: e.g. tuition, food, housing, health care, (including mental), child care Institutional Assistance Requirements: only to defray lost revenue and expenses associated with coronavirus. • Reimbursement for pandemic expenses • Technology costs associated with a transition to distance education • Faculty and staff training • Payroll directly related to pandemic • Additional financial aid grants to students

State Biennial Budget - Operating FY21 FY22

FY23

Maintenance Level

71,372,000

71,319,000

72,760,000

-0.1%

2.0%

Year Over Year Change

Policy Changes Student Counseling Menstrual Products

240,000 31,000 131,000 16,000 750,000 155,000 52,000

240,000

Diversity Training

131,000 16,000 750,000

Police Data

BS Computer Science Des Moines Student Teacher Facilitation

Veterans Mental Health

52,000

Total Policy Items

1,375,000

1,189,000

Total State Operating Allotment

71,372,000

72,694,000

73,949,000

1.9%

1.7%

Year Over Year Change

FY21 Forecast – Operating Funds

Since February Meeting:

FISCAL YEAR 2021

Better/ (Worse)

OPERATING FUNDS

Budget

Forecast

 $17.5M increase in operating revenues due to state and federal funding decisions  $0.6M decrease in operating expenses due lower staffing  $15.5M swing in net margin compared to budget  Bond covenants appear to be ok

In Thousands

Revenues

State General Local General

123,709 132,060

8,351

31,649 28,489 (3,160) 46,070 34,391 (11,679)

Enterprise Funds Student Funds

13,500 11,800 (1,700) Total Operating Revenues 214,928 206,740 (8,188) EXPENSES State General 125,925 126,029 (104) Local General 34,743 28,760 5,983 Enterprise Funds 50,562 35,415 15,147 Student Funds 12,971 10,337 2,634 Total Operating Expenses 224,201 200,541 23,660 Revenue Less Expense (9,273) 6,199 15,472

FTE Change vs. Student Headcount Cumulative Annual Change Winter ’17 - Winter ’21 State General and Local General Funds

6.0%

4.0%

2.0%

0.0%

Winter 18

Winter 19

Winter 20

Winter 21

-2.0%

-4.0%

-6.0%

ASL FTE Inst. Support FTE Student HC

State Biennial Budget - Capital

Project

Re-Appropriation New Funding

Health Science Health Education Chiller Addition

17,500,000 1,800,000

55,505,000 3,189,000 5,205,000 1,000,000 7,461,000

- -

Humanities & Social Science Complex

Minor Works Program Minor Works Preservation

80,000

1,000,000

Campus Security Enhancements

250,000

Total

20,630,000

72,360,000

Services & Activities Fee Quadrennial Budget

S&A Committee Recommends Quadrennial Allocation Directly to Trustees • Committee comprised of students, staff, and faculty • Rubric, student survey, committee deliberation

Outcome : • $7.45M annual base funding • 41 programs,* ranging from $3k-$850k; average = $182K

*Complete list of programs included in board packet

Mandatory Fee Change Medical & Counseling Clinic Fee • Currently charged only to Ellensburg students, who previously only had physical access to services. • Proposal change would keep fee the same, however charge to all students, all of whom can access virtually. Wildcat Care 365 to provide support 24/7/365 Telehealth, Teletherapy, TalkNow (crisis support), Wellness Coaching & Psychiatry

Long Term Investments Proposal Form At the February 25 th Board of Trustee meeting, the Trustees directed staff to prepare a list of investments that would help position CWU for the post-COVID environment. The investments also should help CWU distinguishes itself from other institutions of higher education. For this purpose, “investments” could mean something new, more of something we are currently doing, or something to mitigate liabilities that could inhibit future success. These investments should align with the three institutional priorities articulated by President Gaudino:

retention, workforce diversity, sustainability. 1. Short descriptive name for investment:

Admissions Website and Prospective Student Portal

2. Investment Description:

• What does the investment buy and whom or what purpose does it serve?

The purpose of this investment is to increase yield of new students. Each year, ~10,000 students are admitted to CWU, yet only a small portion enroll. This investment will enhance the admissions and financial aid websites and integrate these sites with our CRM through a custom “portal.” This work will allow students to better understand their admissions status and their financial aid offer during the recruitment process. It will also allow CWU to connect prospective student engagement on the website with the student data in the CRM. These data insights will allow targeted engagement, financial optimization of tuition waivers, and increases in yield.

• Is all or part of the investment one-time or continuing?

This is a one-time investment. Consulting and CRM development organization will complete the work within 12-months.

3. Describe How the investment:

• Supports one or more of the three institutional priorities.

Resources are required to meet each of the institutional priorities. Increase yield of new students will generate additional revenue for the university, leading to increases in all three priorities.

• Mitigates liability.

4. Over what time period would this investment be implemented?

Within 12 months of funding.

5. Does this investment have a directly related revenue stream or cost savings? (For example, an investment in an instructional site would have a directly related revenue stream in the form of tuition or fees. Or an effort to replace all lightbulbs on campus with LED would have a directly related cost savings) Yes. This investment will lead to an increase in yield. If applying projected increases in yield to our Fall 2020 admit pool, a 1-percentage point increase would lead to an increase of 105 new first year students and a 5-percentage point increase would lead to 525 additional new first year students. These increases would bring a potential $5.1M to $25.5M increase in projected revenue when applied to the expected net tuition revenue of the first year entering cohort alone. 6. If investment will require additional employees, please indicate quantity and type (faculty, admin, classified, student). If it will lead do fewer employees, please enter as a negative # N/A 7. If investment will require additional Goods & Services, please indicate estimated type and amounts below. Indicate reductions of Goods & Services as negative numbers. Goods & Service Type FY22 FY23 FY24 Web and CRM integration/Development work $185,000

Please be as specific as possible, add more rows as needed

Board of Trustees May 13, 2021 VP Operations, Andreas Bohman Executive Summary – Capital and Energy Master Plan

Over the last 10 years, the Capital Planning & Projects team executed several landmark expansions of the Ellensburg campus and several significant renovations, including the restructuring of the science neighborhood. Projects included the construction of Samuelson Hall, Discovery Hall, Science 1, and culminated with the final flagship project, Health Sciences, which will open in January 2022. As the previous capital master plan nears the end of its 10-year cycle, capital planning is pivoting into the next phase of non-STEM-related programming, which includes Health Education and Humanities and Social Sciences. This next stage of development should be guided by a renewed Capital and Energy Master Plan. This proposal outlines a $1.2 million investment designed to realize this plan, using external expertise acquired through a competitive bidding process. This plan will be an implementable roadmap that outlines the next decade of innovative capital construction, energy conservation and resource stewardship, community engagement, and aligned with CWU’s core themes and purpose. The Capital and Energy Master Plan will set an ambitious phased strategy for supporting academic excellence, improving the sustainability of the built environment, preserving the character of campus, enhancing pedestrian access, and preserving green spaces. As the largest employer in Kittitas County, CWU is uniquely positioned to influence and collaborate with community partners by sharing in sustainability efforts that impact daily commuters as well as sharing in the local economic development. This iteration of the plan will outline the next decade of capital expansion and renovation and will include considerations such as: • General historic preservation balanced with instructional modernization through planned campus growth • Addressing critical deferred maintenance of academic, residential, recreational, and dining facilities • Ensuring the significance of greenspaces, personal mobility and maximizing parking efficiency • Sustainability considerations will be a driving priority in the next phase of capital projects and will be implemented across phases and project variations. In addition, the Capital and Energy Master Plan will include a technical roadmap for long-term energy planning in alignment with university strategy, and Washington State legislation on Energy Use Intensities (EUI) and Greenhouse Gas (GHG) emissions. Similar to the Abacus study that supplied the technical data of the previous iteration of the Capital Master Plan, the proposed energy plan will provide baseline energy consumption and use data, identify opportunities to enhance energy efficiency of campus infrastructure to meet our internal sustainability goals and the regulatory requirements of critical energy measurement legislation such as House Bill 1257 and 2311.

Long Term Investments Proposal Form – Capital Master Plan At the February 25 th Board of Trustee meeting, the Trustees directed staff to prepare a list of investments that would help position CWU for the post-COVID environment. The investments also should help CWU distinguishes itself from other institutions of higher education. For this purpose, “investments” could mean something new, more of something we are currently doing, or something to mitigate liabilities that could inhibit future success. These investments should align with the three institutional priorities articulated by President Gaudino:

retention, workforce diversity, sustainability. 1. Short descriptive name for investment:

This request proposes utilizing external expertise to prepare the next iteration of the 10-year Capital and Energy Master Plan, which will set an ambitious phased strategy for improving campus facilities to support institutional academic strategy, achieve sustainability objectives, and broaden community impact.

2. Investment Description:

• What does the investment buy and whom or what purpose does it serve?

The investment will utilize the expertise of seasoned higher education consultants to craft a 10- year Capital and Energy Master Plan. This will allow CWU to obtain an unbiased and professional review of the university’s current strengths, weakness, and opportunities in its capital expansion and renovation strategy and energy management plan. A subsection of the Master Plan will be a comprehensive, long-term energy plan that will include a critical technical data assessment, a calculation of baseline EUI (Energy Use Intensity) for all campus buildings, and strategically developed engineered details outlining sustainable energy improvements through project phasing that would coincide with the biennial Capital requests to OFM. The revised Capital and Energy Master Plan would also improve the overall quality of our biannual Capital request by utilizing energy master plan data and outlining the tactical approach the university intends to take to address critical energy management legislature such as House Bill 1257. Sustainability will serve as a recurring theme by establishing new or revised objectives in the execution of capital projects, such as targeting LEED accreditation on all new and renovated buildings on campus. Throughout the execution of every phase and variation of Capital project or minor works, considerations will be made to ensure projects are supportive of sustainability objectives such as evaluating Green House Gas (GHG) reduction, carbon neutrality opportunities and supporting renewable energy targets.

• Is all or part of the investment one-time or continuing?

The intention is that the cost of utilizing consultants for development of the Capital and Energy Master Plan will be a one-time investment. The estimated $1.2 million investment will result in the minimum 10-year plan outlining the next 5 biennium of major capital, supplemental and minor work investments for the university. Considering the institution averages one major project each biennium at $50M plus, one in design at $5M, and one in pre-design ($300k) and on average $8M for minor works; the estimated 10-year Capital and Energy Master Plan will be worth approximately $316M. A $1.2M dollar investment to strategically formulate the phased execution of the Capital and Energy Master Plan would represent .004% of the cost. The ROI is unavoidably beneficial.

3. Describe How the investment:

• Supports one or more of the three institutional priorities.

In his 2019 State of the University addresses, President Gaudino set an institutional priority to decrease the university’s carbon footprint by 5%. The Capital and Energy Master Plan will outline sustainable metrics to far exceed the 5% goal by proposing a project list and implementation plan for driving down campus energy usage and GHG emissions and further integrating sustainability in the execution of capital projects.

• Mitigates liability.

Revising the Capital and Energy Master Plan by utilizing experienced consultants provides the avenue to eliminate the liability associated with major break and fix projects by facilitating a prioritization of campus needs. In addition, it establishes an implementable plan to avoid the fiscal penalties associated with House Bill 1257 for building EUI that begins reporting in 2026.

4. Over what time period would this investment be implemented?

The estimated time period for this proposal is 18 months.

6. If investment will require additional employees, please indicate quantity and type (faculty, admin, classified, student). If it will lead do fewer employees, please enter as a negative # New Employee Type FY22-FTE FY23-FTE FY24-FTE FY25-FTE FY26-FTE The Capital and Energy Master Plan will identify energy conservation and efficiency projects that could be implemented to create energy savings. This investment serves as long term cost savings of building operations due to high energy usage, the additional FTE associated with managing the high energy use, as well and the monetary impacts related regulatory requirements. These realized savings could be funneled into a Green Revolving Loan to fund future energy conservation projects. The potential cost-savings strategies will come into more focus as the project matures.

N/A

Total New FTE Note: If investment will decrease FTE, enter as a negative

N/A

Please be as specific as possible, add more rows as needed

Board of Trustees May 13, 2021 VP Operations, Andreas Bohman Executive Summary – Cloud Strategy PROJECT OVERVIEW

The ERP to Cloud Strategy project proposes to move CWU’s core business systems to the cloud to enhance the student experience, reduce our risk exposure, provide enhanced business insights, and streamline job processes. We are proposing a phased multi-year approach to address more immediate risks in the short term and position us for long-term success. SCOPE AND PHASES OF WORK The first phase of the project would include migrating current PeopleSoft modules to an “infrastructure as a service” (IaaS) solution. IaaS solutions such as Oracle and Amazon allow us to move our existing Peoplesoft servers into to the cloud while maintaining our current structure, integrations, and business processes. The second phase will be an RFP process to identify solutions and vendors to change from Peoplesoft’s Human Resource and Finance modules to a “software as a service” (SaaS) solution. SaaS solutions, such as Oracle Cloud or Workday, are a software licensing and delivery model in which software is licensed on a subscription basis and is hosted by the provider. Moving the Peoplesoft student management module to a SaaS solution will also be evaluated. After completing contracting with vendors, the third phase would be the implementation of the SaaS solution and would also include integrations with other applications. COST ESTIMATES Cost estimates of this project are based on information collected up to this point. In addition, there may be internal cost savings as we realign resources and staff to support this new cloud-based environment. Current Oracle and PeopleSoft licensing costs will also be diminished/eliminated, depending on the final solution. None of these potential cost-saving strategies are included in the estimate below. As new information is gathered, these estimates will be refined.

One Time Costs

Ongoing Annual Costs Year 1 $740,000-$1.1M

Ongoing Annual Costs Year 2

Phase 1 (PS to IaaS)

$300,000 - $440,000 $0 - $100,000 (if vendor assistance needed)

$350,000

Phase 2 (RFP & Contracting)

None

Phase 3 (Move to SaaS)

$3M - $5M

None

$1.1 - $1.8M

This project assumes the Peoplesoft student management module will remain on an IaaS platform until a suitable replacement is identified. Both Workday and Oracle Cloud are actively developing student management modules but are not in widespread use yet. TIMELINE

The overall timeline estimate for this project is 18 - 27 months. Phase 1 is estimated to take 6 - 9 months while Phase 2 is estimated to take 4 – 6 months but can be run concurrently with Phase 1. Phase 3 is estimated to take 12 - 18 months, depending on the SaaS solution selected. BENEFITS The key benefits of this project and phased approach are:

 Modernize business practices, interfaces, and business process improvement.  Increase security posture related to data breaches, outages, and cyberattacks.  Transition away from a legacy and on-premises business system.  Enhance the student experience.  Rapid scalability for our critical software applications and depending on need.  Access to software innovations, new features, and quicker release cycles.  Modern business analytics platforms included directly into SaaS solution. RISKS The following are risks to the success of this project. • Lack of executive stakeholder engagement and input. • University resistance to business process and operational changes. • Unanticipated costs or complications that extend the timeline and budget.

Long Term Investments Proposal Form – ERP to Cloud At the February 25 th Board of Trustee meeting, the Trustees directed staff to prepare a list of investments that would help position CWU for the post-COVID environment. The investments also should help CWU distinguishes itself from other institutions of higher education. For this purpose, “investments” could mean something new, more of something we are currently doing, or something to mitigate liabilities that could inhibit future success. These investments should align with the three institutional priorities articulated by President Gaudino:

retention, workforce diversity, sustainability. 1. Short descriptive name for investment:

EPR to Cloud and Conversion to SaaS

2. Investment Description:

• What does the investment buy and whom or what purpose does it serve?

The ERP to Cloud Strategy project proposes to move CWU’s core business applications (Peoplesoft Human Resources, Financials and Student) to the cloud to enhance the student experience, reduce our risk exposure, provide enhanced business insights, and streamline job processes. We are proposing a phased multi-year approach to address more immediate risks in the short term while positioning CWU for long-term success. The first phase would be to move our existing Peoplesoft systems to an infrastructure as a service (IaaS) solution, such as Oracle or Amazon. Moving our current systems to the cloud will provide redundancy and disaster recovery that we currently do not have in place and mitigate an immediate risk. At the same time, ISS will lead a campus-wide effort to assess and evaluate solutions to move the HR and Finance applications to a software as a service platform (SaaS). There are several vendors offering best of breed SaaS solutions for HR and Finance, including Oracle and Workday. Once the evaluation is complete and a vendor is selected, the final phase of the project would be the implementation of the move to a SaaS solution. While evaluating solutions for HR and Finance, we would also look at possibly moving the student management as well. If a viable solution is identified, we would look to include that in the scope of the project.

• Is all or part of the investment one-time or continuing?

There are one-time costs for implementation as well as continuing costs to maintain operations.

3. Describe How the investment:

• Supports one or more of the three institutional priorities.

This project will modernize CWU’s business practices, processes, and self-service capabilities. This will result in a better student experience by simplifying their interactions with the administrative systems and will lead to greater student retention through more accurate information and quicker responses to student needs.

• Mitigates liability.

The move to a cloud hosted system mitigates the risk of outages and our incapacity to quickly recover from a disaster. It also mitigates the risk of data loss from cyber-attacks that are increasing in frequency and complexity.

4. Over what time period would this investment be implemented?

The investment would be implemented over a 3-year time span. The first phase (move systems to the cloud) will take approximately 6 - 9 months. The second phase (assess vendor SaaS solutions) would take 4 - 6 months but could be run concurrently with phase 1. The third phase (implementation to SaaS) would take approximately 12 - 18 months.

6. If investment will require additional employees, please indicate quantity and type (faculty, admin, classified, student). If it will lead to fewer employees, please enter as a negative #

Cloud technologies require a new set of skills that we do not currently have on staff. ISS plans to retrain existing FTE to manage the new services.

New Employee Type

FY22-FTE

FY23-FTE

FY24-FTE

FY25-FTE

FY26-FTE

Total New FTE Note: If investment will decrease FTE, enter as a negative

7. If investment will require additional Goods & Services, please indicate estimated type and amounts below. Indicate reductions of Goods & Services as negative numbers. Goods & Service Type FY22 FY23 FY24 FY25 FY26 IaaS Cloud Hosting $250k-$380k $250k-$380k $100k $100k $100k IaaS Management Services $500k -$800k $500k -$800k $250K $250K $250k IT Implementation $300k-$440k $3M - $5M Application assessment consult $100K SaaS Software $1.1M -$1.5M $1.1M -$1.5M $1.1M - $1.5M Please be as specific as possible, add more rows as needed

Board of Trustees May 13, 2021 VP Operations, Andreas Bohman EXECUTIVE SUMMARY – ESports Center

As part of our long-term investment proposal process, an eSports Center should be considered as a concept for future enrollment potential and increasing student retention. High schools are building eSports teams at an impressive rate and 97% of students between the ages of 12-17 play video games 1 . The global eSports market is valued at $1.1 billion and is predicted to grow to $6.3 billion in 2027 2 . There are currently 175 colleges and universities that have varsity level eSports programs 3 . An eSports Center has desirable marketing potential, can attract new students, and enhance student engagement, which in turn may increase student retention. The investment proposes an adaptive reuse of the vacated data center building allowing for the establishment of a fully functional eSports facility. The proposal will also evaluate alternate locations if the primary location is not suitable for the stated purpose. The one-time cost of this investment is estimated to be $2 million, which would include design, renovation, and furnishing the data center with infrastructure, furniture, fixtures, and equipment. The recurring costs are estimated to be $130,000 per year covering operational costs such as payroll, maintenance, and subscription services. From a revenue perspective, a use fee could be established to fund the operations of the facility. However, this is generally thought to work against the primary goal of student engagement. Tech-fee augmentation is a likely source to offset some of the recurring costs. Food services would be included in the facility, but minimum profit is anticipated. Nonetheless, there are revenue opportunities in sponsorship, advertising, merchandise and tickets, publisher fees, and media rights if the project is implemented well. This proposal does not take into account the opportunities for a complementing curriculum or affiliating eSports program concurrent with CWU Athletics. Both of these opportunities would increase the attractiveness of the institution to a large set of high school gamers and athletes. A BS in eSports management, a major in business with a minor, or a certificate in eSports management are likely targets for academic expansion within eSports. A varsity eSports athletics program would as well open opportunities for global brand recognition.

1 https://www.ncsasports.org/college-esports-scholarships/varsity-esports 2 https://www.globenewswire.com/news-release/2021/04/22/2214832/0/en/Global-e-sports-market-size-to- showcase-24-4-CAGR-over-2020-2027.html 3 https://www.ncsasports.org/college-esports-scholarships/varsity-esports

Long Term Investments Proposal Form – eSports Center At the February 25 th Board of Trustee meeting, the Trustees directed staff to prepare a list of investments that would help position CWU for the post-COVID environment. The investments also should help CWU distinguishes itself from other institutions of higher education. For this purpose, “investments” could mean something new, more of something we are currently doing, or something to mitigate liabilities that could inhibit future success. These investments should align with the three institutional priorities articulated by President Gaudino:

retention, workforce diversity, sustainability. 1. Short descriptive name for investment:

Student eSports Center

2. Investment Description:

• What does the investment buy and whom or what purpose does it serve?

This investment proposes an adaptive reuse project of the vacated Computer Center building, or other suitable location. This renovation would allow for the establishment of an eSports facility where students can gather and engage in eSports activities. University eSports venues have been shown to enhance student engagement and retention as well as drive up enrollments of like-minded students. According to a study performed by Pew Research, 97% of students between the ages of 12-17 play video games 1 . The global eSports market was valued at USD 1.48 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 24.4% from 2021 to 2027 2 . The increasing audience reach and engagement opportunities for universities presents a significant growth potential. Students are considering eSports as a professional career owing to the increase in popularity of the gaming tournaments, impressive international prize pools, streaming revenues, and one-to-one sponsorships. Moreover, universities and colleges are starting dedicated eSports curriculum to develop skilled professionals. And it is not only universities that are adding eSports to their curriculum; hundreds of high schools have launched dedicated eSports programs alongside their traditional soccer and football teams. There are currently 175 colleges and universities that have varsity level eSports programs 3 . There are also opportunities for community engagement and corporate sponsorships. 1 https://www.pewresearch.org/internet/2008/09/16/teens-video-games-and-civics/ 2 https://www.globenewswire.com/news-release/2021/04/22/2214832/0/en/Global-e- sports-market-size-to-showcase-24-4-CAGR-over-2020-2027.html 3 https://www.ncsasports.org/college-esports-scholarships/varsity-esports

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