Executive Summary - 6 year plan and fiscal year budget upda…

BoardofTrusteesMeeting FulBoardPacket Dec.2017

Full Board Packet - Nov 2-3, 2017 (Presentation & Background Materials) Submitted by dawsonk on Mon, 10/23/2017 - 16:13

WORK SESSION - Thursday, November 2, 2017 - Sid Morrison Board Room 1:30-2:30 PM - Enrollment & Budget • Update FY 18 Budget Forecast + 6-Year • Final Fall 2017 Enrollment Report • Strategic Enrollment Management Plan

CENTRAL WASHINGTON UNIVERSITY Board of Trustees November 2, 2017

EXECUTIVE SUMMARY-INFORMATION – 6 Year Plan and Fiscal Year 2018 Operating Budget Update

In July the Board of Trustees approved the fiscal year 2018 operating budget. Each year after fall census, when student enrollment levels are known, we provide the Board with a forecast for the full year based on enrollment and other known changes. The attached update presents the current forecast for all operating and non-operating fund groups for the current year, which is slightly more favorable in most areas due to strong enrollment growth. In addition, at the last meeting in July, the Trustees requested a longer-term forecast for the operating funds of the university. The attached update also presents a six-year forecast for the core functions of the university and provides a platform to continue long term operational and financial planning. These six-year plans were developed using driver-based methodologies informed by history on rates, projected headcounts and FTE, and expected margins. Undergraduate enrollment and staffing are naturally the main drivers.

Submitted:

Approved for submission:

_________________________________ __________________________________ Joel Klucking, Vice President James L. Gaudino Business and Financial Affairs President

2018 Financial Update Board of Trustees November 2, 2017

Joel Klucking Vice President for Business and Finance Affairs

FY18 Operating Funds Operating Funds FY17-FY18 as of 10/18/17 (in millions)

Original

Current $$

FY 17 Actual

%

Budget Forecast Var

Var

Revenues State General

122.7 122.7 (0.1)

115.9 5.9% 27.9 13.2% 13.3 3.3% 47.3 6.4% 204.4 6.8%

Local

31.2 13.6 50.2

31.6 0.4 13.8 0.2 50.3 0.1

Student Activities

Enterprise

Total Operating Revenues

217.8 218.4 (0.6)

Expenses State General

122.6 122.1 0.5 116.2 5.1%

Local

30.4 13.5 48.4

32.1 (1.6) 12.8 0.7 48.1 0.3

29.6 8.5% 11.2 14.5% 43.8 9.8% 200.8 7.2%

Student Activities

Enterprise

Total Operating Expenses

215.0 215.2 (0.2)

Revenue Less Expense

2.8

3.2 0.4

3.6

Full Year Tuition Forecast Flat State/Tuition Fund

When compared to budget drivers: – First year students way up – Transfers students down – Graduate students down – Fall 16 cohort retention down

Gross Tuition minus $650K full year

– Tuition waiver rate lower • Mostly resident undergrad

Waivers reduced $750k full year

FY18 Non-Operating Funds Budget vs Forecast FY17-FY18 as of 10/18/17 (in millions)

Original

Current

$$

FY 17 Actual

%

Budget Forecast

Var

Var

Revenues Grants & Contracts

51.4 29.1

50.6 (0.8) 25.9 (3.1) 8.7 1.0 5.8 0.7 91.0 (2.3) 49.8 (1.6) 25.8 (5.3) 8.5 0.4 5.5 0.7 89.6 (5.9)

47.3 7.1% 67.4 -61.5% 8.9 -2.0% 5.3 8.3% 128.9 -29.4% 48.6 2.6% 68.9 -62.6% 9.2 -8.0% 5.2 6.4% 131.9 -32.0%

Capital Projects Internal Service

7.7 5.1

Trust, Agency, and Loan Total Non-Op Revenues

93.3

Expenses Grants & Contracts

51.4 31.1

Capital Projects Internal Service

8.2 4.9

Trust, Agency, and Loan Total Non-Op Expenses

95.5

Revenue Less Expense

(2.3)

1.4 3.7

(3.0)

6 Year Projections

Annual Assumptions • Enrollment increases 100 first-year, 100 transfer every year until 2,500 each • Retention & persistence at prior 3-year average • Tuition increases at 2% • Wage increases at recent rates (2-3%) • Benefits costs increase 6% • Housing & Dining rate increases 5% • General inflation on goods & services at 2%

Need for Growth State/Tuition

Revenue % Increase-Flat

Expense % Increase

6.0%

Revenue % Increase – Planning level

5.0%

4.0%

3.0%

2.0%

FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25

6 Year Projection State/Tuition Funds

160

$156M

Revenues

~$37M for investments 2019-2024 but….

150

Expenses

$147M

140

130

120

110

100

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

FY24

With Equipment Replacement State/Tuition Funds

160

$ 156M

Revenues

150

~$30M equipment backlog

Expenses

$149M

140

130

120

110

100

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

FY24

6 Year Projection Local General Funds

43

$39M

40

Revenues Expenses

38

Equipment Replacement

35

$37.6M

33

30

28

Aviation & Sammamish Startup

25

$26.6M

23

20

18

FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 15

State/Tuition & Local Combined

$195M

200

Revenue

190

Expenses

180

$185M

170

160

150

$135M

140

130

120

FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24

6 Year Projections Enterprise

65

$62.0M

Revenues

60

Expenses

55

$57.6M

50

$44.1M

New Residence Hall opens – bond payments increase

45

40

$40.1M

FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 35

Axis Title

6 Year Projection Student Activities

$18.4M

19

Revenues

18

17

16

Expenses

15

$12.9M

$15.6M

14

13

12

$12.5M

11

10

9

FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 8

Axis Title

Questions?

Central Washington University Board of Trustees November 2, 2017

Executive Summary – Fall 2017 Census Enrollment Report

Enrollment is a key institutional revenue driver. Official enrollment statistics are always tabulated on the tenth instructional day of the academic year. The July projection of new first-time freshman enrollment was within 5 students of the final enrollment of 2,131, an accuracy rate of 99.75%. The enrollment of new transfer students fell short of the July projection by 46 students. The full Fall 2017 Census Enrollment Report includes headcounts by campus, student type, legal residence, demographics, and student enrollment by full-time equivalent. Data definitions and descriptions appear at the end of the report, and provide information helpful to interpretation. The full report will be presented at the board’s work session Nov. 2. Following are key take-aways from the report.

Overview of Fall 2017 Enrollment at Census

% change

Fall 2017

% change

Fall 2016

Fall 2015

Headcount

1.8% 1.3%

12,207

-0.3% -0.5% 15.4%

11,993

12,030

All Campuses

9,718 2,131 1,263 1,345

9,595 1,906 1,369 1,168

9,641 1,652 1,383 1,102

Ellensburg Campus First-Time Entering Freshmen

11.8%

-7.7% 15.1%

-1.0% 6.0%

New Transfer

Students of Color

Overview of New Student Fall-to-Fall Retention

Type of students

2016 entry year

2015 entry year

2014 entry year

2013 entry year

2012 entry year

First Year Freshmen

72.3% 80.0%

76.2% 79.4%

78.5% 78.9%

79.0% 78.7%

73.8% 81.8%

Transfers

Submitted,

Approved for submittal:

James. L. Gaudino President

Sharon O’Hare Vice President of Enrollment Management

Central Washington University Enrollment at 10 th Day Census October 18, 2017

TOTAL ENROLLMENT Headcount by Campus

% of 2017 Total

% of 2016 Total

% of Change

Fall 2017

Fall 2016

Ellensburg Undergraduate degree- seeking

8847 2115

8660 1897

100.0% 23.9%

100.0% 21.9% 10.6%

2.2%

First-Time Entering Freshmen

11.5% -12.4%

New Transfer New Post Bacs New Readmit

804

918

9.1% 0.5% 0.9%

47 76

49

0.6% 1.2%

-4.1%

101

-24.8% 1.9% 0.3% -6.4% 4.3% -3.4% 3.9% -15.8%

Continuing

5805

5695

65.6% 100.0% 34.8% 65.2% 100.0% 67.3% 32.7% 100.0%

65.8% 100.0% 37.3% 62.7% 100.0% 62.6% 37.4% 100.0%

Ellensburg Graduate degree-seeking

376 131 245 588 396 192

375 140 235 609 381 228

First time Graduates

Continuing

Ellensburg Non-Degree-Seeking

New

Continuing

Ellensburg Campus TOTAL

9811

9644

1.7%

University Centers TOTAL 2.7% Majority of enrollment occurs at Des Moines, Lynnwood, Pierce, and Yakima University Centers. Online Only TOTAL 1524 1499 100.0% 100.0% 1.7% 873 850 100.0% 100.0%

Total

12208

11993

100.0%

100.0%

1.8%

Headcount by Student Type TOTAL Undergraduate degree-seeking

11024

10764

100.0% 19.3% 11.5%

100.0% 17.7% 12.8%

2.4%

First-Time Entering Freshmen

2131 1264

1908 1373

11.7% -7.9%

New Transfer New Post Bacs New Readmit

85

79

0.8% 1.3%

0.7% 1.5%

7.6%

146

166

-12.0% 2.2% -5.0% -2.3% -6.6% -2.5% 5.4% -14.4%

Continuing

7398

7238

67.1% 100.0% 38.7% 61.3% 100.0% 65.2% 34.8% 100.0%

67.2% 100.0% 37.6% 62.4% 100.0% 60.4% 39.6% 100.0%

TOTAL Graduate degree-seeking

551 213 338 633 413 220

580 218 362 649 392 257

First time Graduates

Continuing

TOTAL Non-Degree-Seeking

New

Continuing

Total

12208

11993

1.8%

1

% of 2017 Total

% of 2016 Total

% of Change

Headcount by Legal Residence

Fall 2017

Fall 2016

WA Resident

11108

10985

91.0%

91.6%

1.1% 9.8% 7.8% 1.8%

Domestic Non-Resident

741 359

675 333

6.1% 2.9%

5.6% 2.8%

International

Total

12208

11993

100.0%

100.0%

% of 2017 Total

% of 2016 Total

% of Change

Fall 2017

Fall 2016

Full-Time Equivalent (FTE)

Undergraduate

10405.3

10084.4

93.3%

93.1%

3.2%

Post Bac Graduate

278.9 470.3

238.6 506.6

2.5% 4.2%

2.2% 4.7%

16.9% -7.2%

Total

11154.5

10829.6

100.0%

100.0%

3.0%

Ellensburg Campus University Centers

9283.2

9029.2

83.2%

83.4%

2.8% 5.8% 2.7% 3.0%

776.1

733.5

7.0% 9.8%

6.8% 9.9%

Online Only

1095.2 11154.5

1066.9 10829.6

Total

100.0%

100.0%

2

FIRST TIME FRESHMAN ENROLLMENT

% of Chang e

% of 2017 Total

% of 2016 Total

Fall 2017

Fall 2016

Headcount: Degree-Seeking First-time Freshmen by Load Status and Campus Ellensburg Campus 2115 1897 100.0%

100.0% 11.5% 99.2% 11.3% 0.8% 33.3% 100.0% 80.0% 80.0% 100.0% 100.0% 16.7% 100.0% -16.7% 0.0% 100.0% 100.0% 11.7% 99.2% 11.4% 0.8% 43.8% 20.0% 0.0%

Full-time Part-time

2095

1882

99.1%

20

15

0.9%

University Centers

9 8 1 7 5 2

5 4 1 6 6 0

100.0% 88.9% 11.1% 100.0% 71.4% 28.6% 100.0% 98.9%

Full-time Part-time

Online Only

Full-time Part-time

TOTAL New Degree-Seeking Freshmen

2131 2108

1908 1892

Full-time Part-time

23

16

1.1%

% of 2017 Total

% of 2016 Total

% of Change

Fall 2017

Fall 2016

Headcount Degree-Seeking First-time Freshmen by Residency and Campus Ellensburg Campus 2115 1897 100.0%

100.0% 91.5%

11.5% 12.7%

WA Resident

1956

1735

92.5%

Domestic Non-Resident

144

136

6.8% 0.7%

7.2% 1.4%

5.9%

International

15

26

-42.3% 80.0% 80.0%

University Centers

9 9 0 0 7 7 0 0

5 5 0 0 6 5 1 0

100.0% 100.0%

100.0% 100.0%

WA Resident

Domestic Non-Resident

0.0% 0.0%

0.0% 0.0%

0.0% 0.0%

International

Online Only

100.0% 100.0%

100.0% 83.3%

16.7% 40.0%

WA Resident

Domestic Non-Resident

0.0% 0.0%

16.7% -100.0%

International

0.0%

0.0%

TOTAL New Degree-Seeking Freshmen

2131 1972

1908 1745

100.0% 92.5%

100.0% 91.5%

11.7% 13.0%

WA Resident

Domestic Non-Resident

144

137

6.8% 0.7%

7.2% 1.4%

5.1%

International

15

26

-42.3%

3

ENROLLMENT BY DEMOGRAPHIC CATEGORY

% of 2017 Total

% of 2016 Total

% of Change

Fall 2017

Fall 2016

Headcount Student Demographics Ellensburg Campus

9811 1.7% Demographic categories will not sum to totals, as some students fall under more than one category. Veterans 428 400 4.4% 4.1% 7.0% Students with Disabilities 840 688 8.6% 7.1% 22.1% Hispanic/LatinX 1546 1409 15.8% 14.6% 9.7% All Students of Color 3018 2715 30.8% 28.2% 11.2% First Generation 4315 4266 44.0% 44.2% 1.1% PELL Offered 2731 3080 27.8% 31.9% -11.3% Dual Admission 49 69 0.5% 0.7% -29.0% University Centers 873 850 100.0% 100.0% 2.7% Veterans 71 60 8.1% 7.1% 18.3% Students with Disabilities 42 42 4.8% 4.9% 0.0% Hispanic/LatinX 122 103 14.0% 12.1% 18.4% All Students of Color 349 320 40.0% 37.6% 9.1% First Generation 517 523 59.2% 61.5% -1.1% PELL Offered 318 346 36.4% 40.7% -8.1% Dual Admission 19 21 2.2% 2.5% -9.5% Online Only 1524 1499 100.0% 100.0% 1.7% Veterans 96 102 6.3% 6.8% -5.9% Students with Disabilities 91 80 6.0% 5.3% 13.8% Hispanic/LatinX 225 183 14.8% 12.2% 23.0% All Students of Color 505 475 33.1% 31.7% 6.3% First Generation 793 798 52.0% 53.2% -0.6% PELL Offered 485 519 31.8% 34.6% -6.6% Dual Admission 22 21 1.4% 1.4% 4.8% TOTAL Across all Campuses 12208 11993 100.0% 100.0% 1.8% Veterans 595 562 4.9% 4.7% 5.9% Students with Disabilities 973 810 8.0% 6.8% 20.1% Hispanic/LatinX 1893 1695 15.5% 14.1% 11.7% All Students of Color 3872 3510 31.7% 29.3% 10.3% First Generation 5625 5587 46.1% 46.6% 0.7% PELL Offered 3534 3945 28.9% 32.9% -10.4% Dual Admission 90 111 0.7% 0.9% -18.9% 9644 100.0% 100.0%

Other Student Types

1292

Running Start Unduplicated

177

Cornerstone/College in the High School Unduplicated

1115

4

HISPANIC/LATINX ENROLLMENT

% of 2017 Total

% of 2016 Total

% of Change

Fall 2017

Fall 2016

Headcount Hispanic/LatinX Ellensburg Campus

1546

1409

100.0% 37.9% 62.1% 100.0% 50.0% 50.0% 100.0% 29.8% 70.2% 100.0%

100.0% 37.6% 62.4% 100.0% 43.7% 56.3% 100.0% 25.7% 74.3% 100.0%

9.7%

New Hispanic/LatinX Students

586 960 122

530 879 103

10.6%

Continuing Hispanic/LatinX Students

9.2%

University Centers

18.4% 35.6%

New Hispanic/LatinX Students

61 61

45 58

Continuing Hispanic/LatinX Students

5.2%

Online Only

225

183

23.0% 42.6% 16.2% 11.7%

New Hispanic/LatinX Students

67

47

Continuing Hispanic/LatinX Students

158

136

TOTAL Across all Campuses

1893

1695

% of 2017 Total

% of 2016 Total

% of Change

Fall 2017

Fall 2016

Percentage of Hispanic/ LatinX by Campus Ellensburg Campus Student TOTAL

9811 1546

9644 1409

100.0% 15.8% 100.0% 14.0% 100.0% 14.8% 100.0% 15.5%

100.0% 14.6% 100.0% 12.1% 100.0% 12.2% 100.0% 14.1%

1.7% 9.7% 2.7%

Hispanic/LatinX TOTAL

CWU-Centers Student TOTAL

873 122

850 103

Hispanic/LatinX TOTAL

18.4%

CWU-Online Only Student TOTAL

1524

1499

1.7%

Hispanic/LatinX TOTAL

225

183

23.0%

TOTAL Students Across all Campuses

12208

11993

1.8%

Hispanic/LatinX TOTAL

1893

1695

11.7%

Institutional data definitions with descriptions (source: Peoplesoft) § Unless otherwise specified, headcounts include part-time and full-time students. In addition, unless otherwise specified, the headcounts include degree-seeking as well as non-degree- seeking students. § In the “Other Student Types” section the numbers reported for fall 2017 are not the final enrollment numbers for this term, as Running Start/Cornerstone/H.S. Enrichment students are added into the system in a different process than non-high-school students. § “Students with Disabilities” data represents students who go to the Disabilities Services Center and provide necessary paperwork to register for services.

§ “Students of Color” data includes all race/ethnicities except for “Non-Resident Alien,” “European/Middle Eastern/White,” and “ Not Reported.”

5

§ “PELL Offered” data represents students who were PELL-eligible, enrolled at CWU, and were offered a federal PELL Grant for fall quarter. § FTE is calculated based on the course level (catalog number) of each class a student enrolls in: 15 undergraduate credits equal 1 FTE; 10 graduate-level credits equal 1 graduate FTE. The data source also excludes • all non-credit bearing international (UESL, AUAP) students. (about 50 students per term) • all FTE generated through credit by examination. This includes FTEs greater than 1. A student taking 18 credits in classes with a catalog number less than 500, will have 1.2 FTE (18/15). § First Year admits include students enrolling for the first time at any university, as well as first year students with transfer credit, and international first yr. § Transfer admits include students who are transferring to CWU from any other institution: undergraduate transfer, transfer first year <40 credits, international transfer first year <40 credits, and international undergraduate transfer. § “Post Bac” or post-baccalaureate students are those who are working toward a second bachelor's degree or a second entry degree. This data set includes International Post Bac, Post Bac CWU, and Post Bac Transfer. § Readmit is a student who attended CWU previously, left for any reason, and is being readmitted. This category includes International Readmits.

§ Graduate admits include state and domestic students as well as and International Graduate.

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Full Board Packet - Nov 2-3, 2017 (Presentation & Background Materials) Submitted by dawsonk on Mon, 10/23/2017 - 16:13

2:45-4:00 PM Campus Capital Development 1. North Campus Project Review • Residence Hall

• Recreation Expansion • Tomlinson Upgrade 2. Project Funding Pro Formas

CENTRAL WASHINGTON UNIVERSITY Board of Trustees November 2, 2017

Executive Summary – North Campus Development

In July 2017 the Board of Trustees endorsed the development of proposals for three capital projects: a new residence hall, expanded recreation facilities, and an upgrade to Tomlinson Stadium. The board’s direction was prompted by an urgent need to address a shortage of housing, increased demand for recreational facilities, and the critical erosion in the quality of the stadium. CFO Joel Klucking is leading the development of financing options for each, including consultation with CWU’s bond consultant, Public Financial Management. Chief of Staff Linda Schactler is leading the coordination of the development of proposals for all three of the following projects. 1. New Hall is a new, 400-bed residence hall that will be sited at the northeast corner of the intersection of E. Dean Nicholson Blvd and N. Wildcat Way. CWU will use a design-build approach for this project, which is expected to reduce costs and construction time by three months. The project assumes the demolition of two facilities that are in very poor condition: Peterson Hall, the former location of CWU ROTC programs, and the facility that housed the Chimpanzee and Human Communication Institute until 2013. The estimated cost of the project is $45 million, which would be funded through bond sales. Lead staff on this project is Richard DeShields, Dean of Student Success. 2. The Recreation Expansion project will build a track facility in the southeast corner of North Wildcat Way and 18 th Avenue, replacing the crumbling, nearly 60-year-old track now located in Tomlinson Stadium. The expansion will include lighting, perimeter fencing, and turf inside the track. The project, unanimously recommended by the Student Recreation Advisory Board, will be funded with $4 million of Recreation Fee reserves. Non-CWU organizations and CWU units outside the Recreation Department (e.g. varsity athletics, academic departments) will pay to use the facility. Recreation is working closely with Athletics to ensure the track facility meets specifications for NCAA competition, and to coordinate design and construction services with the Tomlinson Stadium Upgrade. The lead staff for this project is Jenna Hyatt, Associate Dean of Student Living.

3. Tomlinson Stadium was constructed in 1959 and has not been renovated since. The proposed renovation would make the stadium regulation size for rugby and soccer, as well as football. It upgrades perimeter fencing and restrooms, and adds artificial turf and lights. The CWU Foundation has agreed to fund this $4 million project. The lead staff for this project is Athletic Director Dennis Francois. During the Board’s November 2 work session, staff will review the development of site and design specifications and financing strategies for the three projects for the board’s consideration for approval.

Submitted:

Linda Schactler Chief of Staff

Approved for submittal:

James L. Gaudino President

Central Washington University Board of Trustees November 3, 2017 1.) EXECUTIVE SUMMARY – New Residence Hall

Central Washington University has experienced unprecedented enrollment growth in recent years, particularly in first-year classes. Because first-year students are required to live on campus, demand for university housing has exceeded the capacity of CWU residential facilities. CWU opened the fall of 2017 to overflow capacity in university housing. Reaching maximum capacity leaves the university with little ability to respond to emergency maintenance problems in housing, lessens the capacity to host conferences and visiting students, and greatly reduces the ability of the university to conduct regular maintenance on housing facilities. At the recent July 2017 Board meeting, the CWU Board of Trustees directed staff to prepare to site, design, and construct a 400-bed residence hall to open in Ellensburg by fall 2019. CWU’s new residence hall, “New Hall,” will accommodate increased enrollment and provide modern housing and dining space that students desire within the 120,000 gross-square-foot project. The approach of the housing unit layout and building footprint is to encourage development of a small-scale residential community with communal bathrooms, study rooms, and lounges on each floor to help promote social interaction and a sense of community. New Hall will be the first CWU project to use the progressive design-build (PDB) delivery method. PDB allows the design team and construction team to work concurrently from the beginning of the project. This enables the entire team to focus on the main goal of providing the highest quality housing to students, and completing the project within budget and in the timeliest fashion. PDB mitigates risks through collaborative value engineering, constructability processes, mitigated risks during design, mitigated risks during construction, scheduling efficiencies, and reduced life-cycle costs stemming from earlier team collaboration. The process transfers bid-day risks to the forefront of the selection period, allowing project managers to work directly with the PDB construction team. This creates more opportunity for innovative and collaborative ideas and reduces schedule delays. By partnering with and leveraging the expertise and credibility of the Washington State Dept. of Enterprise Services (DES), CWU received unanimous approval of the state Capital Projects Advisory Review Board (CPARB), the authorization of which is required in order to use this delivery method. CFO Joel Klucking is leading the development of financing analysis for the New Hall project. It will be funded by bonding against CWU’s System, which includes dining, residence facilities, the Wildcat Shop, and other revenue sources. The project is anticipated to cost approximately $45 million; bond payments are projected to be $2.8 million annually for 30 years. Funding assumes annual 5-percent increases in residence hall fees. The project team has met and consulted with CWU’s bond consultant, Public Financial Management, to determine bonding capacity for New Hall and how this commitment will impact bonding capacity for future projects.

New Residence Hall - Proposal

2.) DETAILED PROJECT DESCRIPTION The program analysis identifies the university’s current space needs and requirements for the proposed New Hall project and CWU’s future needs. The proposed New Hall project will be built on the northeast corner of East Dean Nicholson Boulevard and North Wildcat Way. “Town Ditch,” an irrigation canal, runs parallel to North Wildcat Way. CWU is aware of the setback requirements of the canal and these are shown on the topographical survey. The nine-acre site currently is the location of two structures, which will be razed to accommodate New Hall: • Peterson Hall : Constructed as a motel in 1960, this facility has most recently housed CWU’s ROTC program, which has since moved to Lind Hall. A portion of Peterson is now being used for storage. All aspects of the facility are in poor condition. Please see Appendix A, which summarizes the condition of the facility. • The Chimpanzee and Human Communication Institute , which was constructed in 1992. The construction features specialized HVAC and vertical space to accommodate the needs of chimpanzees. The renovation and decontamination of the facility to accommodate students and employees would cost an estimated $4.9 million. (See Appendix B.)

Tomlinson Upgrade

Recreation Expansion

N Wildcat Way

Town Ditch

E Nicholson Blvd

New Hall Programming Process The programming process for New Hall referenced the process used to develop Barto Hall, CWU’s newest residence facility. The project team reviewed the meeting notes of previous residence hall planning groups as well as input from a New Hall committee made up of stakeholders and user groups. The New Hall team discussed and prioritized physical spaces and project goals. The project development has included online surveys of 264 students and meetings with ASCWU and CWU-Residence Hall Association student organizations and provided insight into the students’ housing priorities.

2

New Residence Hall - Proposal

Programming Criteria and Assumptions The following criteria and assumptions have been established to define the program for the proposed project:  Social Opportunities: The proposed project will be designed primarily for first-year students, but will include upper-class students as well. The building’s floorplan will be designed to encourage socialization to enhance student development and should support opportunities to promote academic success and connections with university resources. The building program supports this goal through double-occupancy bedrooms and compact residential wing groupings (approximately 36-40 students per wing), and a Residence Advisor room for every 40 students. The plan includes a lounge at each floor that may contain a small study space, but primarily serves student social needs—such as community games. Locating the lounges close to the main elevator and stairs encourages social interaction. In addition, the building will include primarily shared bathroom facilities and some private bathrooms. The restrooms will also accommodate students who do not consider themselves on the gender binary. The project assumes multiple laundry areas to provide approximately one washer and one dryer per every 50 students. The laundry facilities are coin-operated units or allow use of student Connection Cards. At least one washer and one dryer will be front loading to support ADA compliance. New Hall will include at least two small kitchen units that include a full-size refrigerator and a single stove, both of which must be ADA accessible. The project will include an office where students can check out equipment. The space also will store some supplies and equipment, such as toilet paper, pool cues and pool balls, etc. Often these are secured spaces for only staff, but also serve as a mailroom where mail can be distributed to student mail boxes. One student mailbox should be provided per room.  Unit Types: New Hall will include two unit types, the final mix of which is to be determined: 1. Unit A1 is a residence-hall style, one-bedroom unit for two students, with shared bathroom nearby; approximately two thirds of rooms will be Unit A1 style. 2. Unit A2 is a hotel-style unit, which provides a bedroom and a private bathroom for two students.  First Floor Lounge/Dining Space: The first floor will house a single-concept dining option that will be accessible by students in the building and from the surrounding campus community. This area will likely include a small convenience store, seating area, and cleaning area with outside visibility and possibly outside seating options.  Office Space/Dining Space: CWU is currently finalizing concepts for space that will be attached to the building, much as conference and office space was attached to Barto Hall. The proposed concept for New Hall is similar, but with more open, flexible space.

3

New Residence Hall - Proposal

Discussions currently focus on use of the space for two conference rooms, a student work room (poster making, etc.), large storage closets for equipment and supplies, and a restroom. The second option would be make this space a multi-use dining facility and convenience store. In addition, a convenience store would be included (just larger than CWU’s North Village Café convenience store).  Multipurpose Room: The multi-purpose room will be similar to the Wellington Event Center in Barto Hall. It would be open to all residents of campus and should be readily accessible, but also prevent most noise from entering into the residence hall sleeping areas. Residents should have some separation (for security and noise) and privacy. Ideally the multi-purpose room will be located adjacent to the office/dining space. This space is intended to serve campus-wide programming needs. The space should include a small kitchen and food- preparation area (stove, refrigerator, sink), and restrooms with stations for students who need to wash their feet for prayer. The space should also be able to be divided into smaller programming space with movable walls.  Sustainability: The project will achieve a minimum LEED 1 certification. Specific LEED credits will be determined through the design-build process. CWU has identified general goals, which include reducing the university’s carbon footprint, conserving potable water, and providing a healthy indoor environment. Many of the building’s sustainable features should be visible to the public.  Technology: Wireless Internet is preferred through the facility; hard-wire connections will be provided in the residential units. The project does not include telephones for each student room, however New Hall will have a phone in RA rooms and on each floor in a public location.  Noise Control: The building will incorporate measures to reduce noise transmission. Areas for louder activities (lounges, multi-purpose space, dining space, etc.) will be appropriately located with this in mind.  Security: The project will provide safety measures inside and out. Access to living spaces will be restricted to CWU residents through card access control. Landscaping and interior/exterior lighting will be designed in accordance with the university’s security requirements, and an emergency blue light phone will be located in the parking area.

 Custodial Areas:

1 LEED, which stands for Leadership in Energy and Environmental Design, is a certification program focused primarily on new, commercial-building projects and based upon a points system.

4

New Residence Hall - Proposal

The project provides small closets provided near each wing with floor sinks for custodial cleaning areas; one room will be dedicated as a custodial staff break area. Student room windows are designed to allow the custodial crew to clean from inside the facility, rather than exterior (costly) scaffolding.

Space Requirements/Room Summary Residential Housing

ROOM TYPE

NUMBER

NOTES

2 Bedroom Suite (shared Bathroom) (268)—A1 type 2 Bedroom Suite (Private Bathroom) (132)-A2 type

134

66

Shared Bathrooms

- -

One per wing

RA Unit

One per wing with approximately each RA serving approximately 40 students (2 bedroom with washer/dryer, kitchen, private bathroom, living room)

RHC Apartment

1

RHC Office RA Office

1 1

With small waiting room nearby

Lounge Laundry

- -

One large lounge per floor

One washer and dryer per 50 students (located on multiple floors is preferable)

Kitchens

2

Located on upper floors

Study

-

1-2 per floor depending on size of wings

Mail Sorting

1 1 1 1 1

Women’s Restroom Men’s Restroom Unisex Restroom Mechanical Room

Telecom

-

One per floor

Res Net Telcom Hub

1

Elevator Lobby

-

One per floor with elevators accessible by student ID to get on to the floors

Elevator Equipment

1 1

Electrical Room Housekeeping

- -

One per floor and one break room

Corridors/Stairs/Circulation Space/MEP Contingency

DINING (ATTACHED FACILITY)

5

New Residence Hall - Proposal

ROOM TYPE Dining Area Restrooms Utility Closet Housekeeping

QUANTITY

1 2 1 1 1 1

Kitchen Seating

Circulation Space/Mechanical/Electrical/ Contingency

- -

MULTI-PURPOSE SPACES

ROOM TYPE

NUMBER

NOTES

Large Multi-Purpose Room

1

Ability to split the room into three different rooms (with one room being large) Include sink, refrigerator, stove (area can be secured and locked off individually and reserved for use) Men, Women, Unisex (restrooms should also provide a floor sink for students to be able to wash their feet before prayer) One room is to secure multi-media unit, two would be for furniture storage (movable tables and chairs)

Kitchen Area

1

Public Restrooms

3

Storage (for multi- purpose room)

3

SITE FEATURES

TYPE

NUMBER

NOTES

Automobile parking

1 per .6 students

Finalized through negotiation with the City of Ellensburg

Covered bicycle parking Emergency Blue Light Phone

1 per .6 students

1

In parking area

ADDITIONAL PROJECT INFORMATION

6

New Residence Hall - Proposal

Topographic surveys are used to identify and map the contours of the ground and existing features on the surface of the Earth or slightly above or below the Earth's surface. Features could include trees, buildings, streets, walkways, manholes, utility poles, retaining walls, etc. Surveys are critical in showing perimeter boundary lines and the lines of easements on or crossing the property being surveyed, in order for the design team to accurately show zoning and other required setbacks. CWU contracted with PLSA Engineering and Surveying of Yakima, Washington, to perform the topographic survey for this project. Traffic surveys capture data about the vehicle-use patterns in the area, and extrapolate the impact of the project on peak-hour traffic. The survey for the North Campus projects will assess traffic patterns to demonstrate how our projects affect “levels of service” at nearby intersections. The traffic consultant retained for this project is currently reviewing our project to determine projected levels of service for the City of Ellensburg and to calculate the city ordinance-driven traffic impact fees. Central Washington University is committed to providing the maximum practicable opportunity for participation by minority business enterprises (MBE) and women business enterprises (WBE), veteran- owned firms and small businesses. CWU strongly encourages and provides guidance and outreach for consultants to become a diverse business or engage diverse businesses for all CWU projects and services. CWU maintains a strong working relationship with the Department of Enterprise Services in order to provide excellence in diversity outreach. 3.) FINANCE AND RISK In 2006, University Housing and New Student Programs developed a Comprehensive Housing and Dining Plan (please see Appendix C), which was approved by the Board of Trustees. This plan created a path to evaluate revenues and expenses in order to construct new residence halls and renovate existing buildings. At that time, CWU expected enrollment not to grow beyond 10,000 students. The plan has assisted in the development and construction of Wendell Hill Hall and Barto Hall. In addition, the university has performed renovation on Getz/Short and begun work on Stephens/Whitney. Due to increased first-year enrollment over the past few years, the university has been able to set aside additional reserves to stay on target with renovations and develop reserves. Due to these successes, CWU is positioned to absorb additional costs in the form of bond payments for a new residence hall and still renovate of existing structures. These successes have been made possible by annual increases in room-and-board rates (as projected in the comprehensive plan) and being fiscally responsible by limiting spending. Appendix D explains the estimated financial implications of New Hall on the Housing and Dining Fund. The following summary table is intended to show the major changes to the housing and dining operation over time. Five years are shown individually and then the next five in a grouping.

7

CWU HOUSING AND DINING PROJECTION Including impact of proposed New Hall

FY 2017

FY 2020

FY 2021-2025 $ 102,550,000

Revenues

FY 2018

FY 2019

Residence Halls Apartments

$ 14,970,648 $ 15,743,000 $ 15,537,000 $ 18,503,000

4,140,680 15,699,618 1,404,017 36,214,963 9,165,438 3,085,886 11,789,338 1,329,185 25,369,848

4,750,000 15,870,000 1,660,000 38,023,000 9,001,000 3,563,000 12,369,538 1,470,000 26,403,538

4,513,000 16,470,000 1,659,000 38,179,000 9,315,000 3,348,000 12,838,230 1,540,525 27,041,755

4,694,000 19,110,000 1,710,000 44,017,000 10,870,000 3,448,000 14,895,291 1,592,101 30,805,392

26,446,000 106,270,000 9,386,000 244,652,000 54,757,000 18,865,000 82,825,131 8,793,452 165,240,584

Dining

Conf. Center & Other

Total Revenue

Expenses Residence Halls Apartments

Dining

Conf. Center & Other

Total Expenses

Operating Income/(Loss)

10,845,115

11,619,462

11,137,245

13,211,608

79,411,416

Admin Fee Existing Debt

(1,444,207) (5,784,278) (1,228,619) 2,388,011 0

(1,444,207) (5,728,820) (1,750,000) 2,696,435 0

(1,400,000) (5,733,842) (1,837,500) 2,165,903 0

(1,400,000) (6,311,207) (2,098,750) (1,929,375) 1,472,275

(7,000,000) (29,248,738) (13,864,500) (11,194,066) 18,104,113

Proposed New Bond Preservation Funding

Amount to Reserves

Capital Improvements

(1,044,383)

(4,911,233)

0

(5,000,000)

(20,000,000)

Reserve Balance

$ 16,155,774 $ 13,940,975 $ 16,106,879 $ 12,579,154

$ 10,683,267

The table highlights Fiscal Year 2017, the most recently completed year, and Fiscal Year 2020, which is the first year New Hall will be in operation. It demonstrates the impact to revenues and expenses of adding 400 beds and meal plans, and shows the first bond payment. It also demonstrates that the reserves are adequate and that the Housing and Dining group can continue work to improve buildings and reduce deferred maintenance. The detailed financial pro forma in Appendix D shows fiscal years across the top and the row categories are at the left. It is presented in cash-basis rather than accrual accounting in order to understand the cash-flow implications in each year. The main assumptions are shown in the yellow box at the top and these address the main drivers of the housing and dining operation, which are occupancy and room and board rate assumptions. This spreadsheet shows the entire operation and is the same planning template that the group has used since 2006. The effects of building New Hall can be seen by comparing the columns for 2017 (the most recently completed fiscal year) and the column for 2020. Fiscal Year 2020 would be the year New Hall opens, rents are collected and operating costs increase for the new building. It is also the year that the bond payments of approximately $2.8 million begin. Revenues for both the Housing portion (residence halls) and the Dining portion increase. The new facility will have approximately 400 beds and this will also lead to nearly 400 new meal plans for the Dining operation. The dining operating costs will increase more, on a percentage basis, than the housing costs, because the first 35 cents of each dollar of dining revenue is needed to purchase food. This plan assumes that the annual repair and improvement project work (preservation) continues at $1.7 million annually and that the amount would increase over time. It also assumes that the large-scale renovations to various buildings would continue and these amounts are listed as “projects funded from reserves.” There is a list of buildings relating to these amounts, but the actual project work will go to whichever building has the greatest prioritized need over the years. The plan would maintain reserves at a level above the 1.0 Maximum Annual Debt Service required in the CWU Reserve Policy (CWUP 2-10-105). These additional reserves, should they materialize according to plan, would allow for some flexibility in the future for additional repair and improvement work. Projected Total Cost for the Project: Costs for professional services (specialty consultants, etc.) $ 538,000 Design & construction costs estimated (construction contingency) $ 31,716,000 Demolition and Site Development Costs $ 2,000,000 Equipment and furnishing costs $ 2,300,000 Contract administration costs (owner, construction management, etc.) $ 923,000 Contingencies (design & owner) $ 1,509,000

New Residence Hall - Proposal

Other related project costs (building permit, advertising, etc.)

$ 525,000

Sales Tax (8.2 percent)

$ 2,489,000

Cost of Issuance and Capitalized Interest on Debt

$ 3,000,000

Total

$ 45,000,000

Financial Risks 1) Maintaining Occupancy in the Housing System and New Hall. The pro-forma is predicated on maintaining average annual occupancy of 89 percent in the residence halls. Mitigation: The 89 percent occupancy figure is lower than what was experienced in many recent years and should be achievable. By using this percentage, we are avoiding the overly optimistic view that New Hall would need to maintain an unrealistically high occupancy percentage. The risk of not building is having to turn away returning students and transfer students. Current facilities cannot accommodate significant numbers of additional students. Without building an additional hall, CWU would not have enough capacity to take buildings off-line to do long-term renovations on residence halls as contemplated in our Comprehensive Housing and Dining Plan. Should enrollment fall, we have additional opportunities to create academic-year conference spaces and convert double-occupancy rooms to singles that will generate some additional revenue to offset potential lost revenue. Strategically located vacant space could allow for much needed renovations or deferred maintenance projects. 2) Interest Rate Risk or Cost of Borrowing. The interest rate used for planning purposes is 4.5 percent. If the actual interest rate at the date of the bond sale is substantially higher, the annual debt payments would increase as well. Mitigation: CWU’s bonding advisors have suggested that the actual rate currently available could be as low as 3.9 percent. By planning at a higher borrowing cost we have a reasonable buffer worked into the projections for interest rate increases between now and March-April of 2018. 3) Project Costs. The anticipated total cost of the project, including costs of issuing the bonds and carrying costs (capitalized interest) is $45 million. If total costs increase, for any reason, the annual debt service would increase as well. Mitigation: CWU has received approval from the State of Washington to contract the project as “design build,” which should mitigate risks. The Architectural/Engineering and Construction team are selected based on qualifications, cost and past performance, rather than low-bid alone. CWU will vet the project cost with the establishment of a GMP (Guaranteed Maximum Price) prior to construction start.

10

New Residence Hall - Proposal

4.) VISUALS

Peterson Hall

N Wildcat Way

CHCI

Town Ditch

E Nicholson Blvd

Existing Site Features

N Wildcat Way

E Nicholson Blvd

Town Ditch

Proposed project location

11

New Residence Hall - Proposal

E Nicholson Blvd

N Wildcat Way

E Nicholson Blvd

N Wildcat Way

12

New Residence Hall - Proposal

N Wildcat Way

E Nicholson Blvd

N Wildcat Way

Town Ditch

E Nicholson Blvd

13

New Residence Hall - Proposal

5.) PROJECT TIMELINE Anticipated Project Design and Construction Schedule

Activity

Status as of 10/19/17

Date

Project Review Committee DB Public Meeting

Complete

September 28, 2017

Project Review Committee DB Notice Letter

Complete

October 12, 2017

CWU Advertise & Issue DB Team RFQ

In progress

October 17, 2017

Statements of Qualifications (SOQ) Due

November 07, 2017

SOQ Scoring and Finalists Selection

November 14, 2017

CWU Issue Request for Proposals

November 16, 2017

Proposal Finalists’ Exchanges with Owner

December 07, 2017

Proposals Due

December 19, 2017

Highest Scored Finalist Notification

December 28, 2017

Notice To Proceed

January 08, 2018

Design Initiation

January 09, 2018

Building Permit Documents

April 15, 2018

Construction Initiation

May 01, 2018

Substantial Completion

June 01, 2019

Owner Occupied – Final Completion

August 02, 2019

APPENDICES A. Peterson Hall Facilities Report B. CHCI Facilities Report C. Comprehensive Housing and Dining Plan D. New Hall Financial Pro Forma

14

Recreation Expansion - Track and Field Differential Analysis - Effects of Project on Operating Costs

Capital Cost

4,000,000 $

Year 1-5

Year 6-10 Year 11-15 Year 16-20 Year 21-25 Year 26-30

$

400,000

$

400,000

$

400,000

$

400,000

$

400,000

$

400,000

Revenues

Expenses Staffing

106,183 36,229 47,782 65,591 40,880 250,000 546,665

123,095 45,927 55,393 74,809 47,392 265,239 611,855

142,701 58,256 64,215 87,660 54,940 326,193 733,965

165,429 73,934 74,443 100,018 63,690 346,076 823,591

191,778 93,877 86,300 117,169 73,834 425,608 988,566

222,323 119,252 100,045 133,906 85,594 454,883 1,116,003

Utilities

Maintenance Equipment

Other

Turf Renewal Total Expenses

Operating Income/(Loss)

$

(146,665)

$

(211,855)

$

(333,965)

$

(423,591)

$

(588,566)

$

(716,003)

(1,384,750) $

Net Present Value

NOTE: This project is part of a much larger Recreation organization that is funded by the "Rec Fee" charged to all eligible Ellensburg students. Due to the significant increase of students since the Rec Center was built, the larger organization can fairly easily absorb any additional costs from this project.

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