CWU QUARTERLY BOARD MEETING AGENDA Thursday, February 20, 2020
CWU Des Moines, WA Building 2, Room 101
WORK SESSION 1:30 Call to Order
• Approval of Agenda • Adoption of October Minutes
1:35 Public Comment 1:40 Introduction of Highline Community College President, John Mosby 2:00 University Priorities
• Retention/Enrollment • Workforce Diversity • Sustainability
Central Washington University Board of Trustees February 20, 2020
ACTION – Approval of the minutes of the Regular Meetings of October 17 and 18, 2019.
We recommend the following motion: The Board of Trustees of Central Washington University hereby approves the minutes of the regular meetings of October 17 and 18, 2019.
Linda Schactler Chief of Staff
Approved for submittal to the Board:
James L. Gaudino President
Board of Trustees Minutes October 17-18, 2019
OCTOBER 17, 2019 CWU & COMMUNITY BREAKFAST Palace Café/323 N Main
On the morning of October 17, 2019, community leaders of Ellensburg joined trustees for a breakfast discussion of CWU’s role in the Ellensburg community. The purpose of the discussion was to help board members understand the degree to which CWU is contributing to the prosperity and quality of life of the community. As well, the Board seeks to know how CWU can be more effective partners in the community.
Community members at the breakfast included:
• Brett Wachsmith, Kittitas County Board of Commissioners, District 3 • Bruce Tabb, Mayor of the City of Ellensburg • Carolyn Honeycutt, Executive Director of CenterFuse (Ellensburg Business Development Authority) • Kelly Krounbauer, Executive Director of Student Services, Ellensburg School District • Julie Peterson, Chief Executive Officer, Kittitas Valley Hospital • Ken Wade, Chief of Ellensburg Police • Molly Jones, Executive Director of the Ellensburg Downtown Association • Monica Miller, Executive Director of Gallery One / Vice Chair Ellensburg Arts Commission • Peggy Morache, Executive Director of FISH Community Food Bank • Steve Townsend, Vice Chair of the Kittitas County Chamber of Commerce & Managing Partner, Windrow hotel CWU COMMUNITY PANEL DISCUSSION Hal Holmes Center/209 N Ruby In July, the board reviewed the university’s mission, vision, and values, discussing challenges coming to CWU over the next decade. Chief among these was the change in student demographics, and corresponding expectations and needs for teaching and learning. Ensuring CWU’s climate, teaching and support are relevant to these students will be essential to ensure the university’s sustainability. Though CWU always has needed to adapt and change to new generations, the focus now is on preparing for “Generation Alpha,” children born between 2011 and 2025. Gen Alpha is expected to be more diverse than any before, and also to experience most aspects of their lives through some technological interface. The Office of the President and the Faculty Senate organized a panel of individuals who are well informed about the need to transition teaching and support methodologies for “Generation Alpha.” Faculty Senate Chair Walter Szeliga moderated the panel, which included the following individuals: • Bob Lupton, Chair, Department of Information Technology and Administrative Management • Eric Cheney, Chair, Department of Sociology
• Gregg Heinselman, Dean of Student Success • Henry Strom, Superintendent, Grandview School District and CWU alumnus • Katie Boswell, Director, Learning Commons • Teresa Divine, Professor, Department of Political Science Board Work Session Sid W. Morrison Board Room, Barge Hall 412
The work session was called to order at 2:04 PM
Present: Ron Erickson, Chair Robert Nellams, Vice Chair Erin Black Gladys Gillis Alex Harrington Staff to the Board: James Gaudino, President
Linda Schactler, Secretary to the Board Joel Klucking, Treasurer to the Board Kim Dawson, Executive Assistant to the President & Board of Trustees Alan Smith, Assistant Attorney General Executive Faculty & Staff Andreas Bohman, Vice President for Operations Delores (Kandee) Cleary, Vice President for Diversity & Inclusivity Lynn Franken, Interim Provost/Vice President for Academic & Student Life Josh Hibbard, Interim Vice President for Enrollment Management Kremiere Jackson, Vice President for Public Affairs Approval of the Agenda
Motion 19-39: Mr. Nellams moved that the Board of Trustees of Central Washington University approve the agenda of the meetings of October 17 and 18, 2019. Ms. Gillis seconded the motion, which the board unanimously approved. Approval of Minutes Motion 19-40: Mr. Nellams moved that the Board of Trustees of Central Washington University approve the minutes from the regular meetings of July 25 and 26, 2019. Ms. Black seconded the motion. The motion was approved. Capital Update Washington state funds major capital projects on a biennial cycle. For the 2019-21 biennium, which began on July 1, 2019, CWU’s focus is the construction of Health Sciences and supplemental capital requests.
2 Board of Trustees Minutes October 17-18, 2019
In summer 2019, CWU completed the 402-bed residence facility, Dugmore Hall, and the Northside Commons dining facility, immediately east of Dugmore. In the 2019 session of the state legislature, CWU received $5 million to design the renovation of and addition to Nicholson Pavilion, constructed in 1959 as the Physical and Health Education building. The Division of Operations has launched the renewal of the capital master plan. The process will integrate the Sightlines facilities condition data, introduce a university-wide Call for Capital, and expand the software system we use for capital planning and management. Fall 2019 Enrollment Update This fall, both overall enrollment and first-year student enrollment are greater than last year. CWU has enrolled 3 percent more new undergraduate students (3,348) than in fall 2018 (3,260). Overall enrollment is 12,241 versus 12,124 in fall 2018. Overall enrollment includes undergraduate, graduate, postbaccalaureate, and Running Start students. It does not include the College in the High School dual- enrollment program, which exceeds 3,000 enrollments for fall 2019. Student retention has increased to 71 percent for the 2018 First Year Fall Cohort, compared to 69.3 percent the prior year. Retention for the fall 2018 transfer cohort has also increased: 81.5 percent compared to 82.6 percent for the fall 2017 transfer cohort. Budget Update Actual enrollment levels are essentially on target, so based on this data, we are re-affirming our budgeted revenue assumptions in all fund groups, and are not anticipating any significant variances for the full year.
Meeting adjourned at 3:51 PM.
Board and Cabinet members participated in a student engagement function at University House, moderated by Student Trustee Alex Harrington. Trustees and President Gaudino attended a social dinner at the Yellow Church Café in downtown Ellensburg. No business was conducted.
OCTOBER 18, 2019 Sid W. Morrison Board Room, Barge Hall 412 Regular Business Meeting The regularly scheduled business meeting was called to order at 9:07 AM. Present: Ron Erickson, Chair Robert Nellams, Vice Chair Erin Black Gladys Gillis Alex Harrington
3 Board of Trustees Minutes October 17-18, 2019
Staff to the Board: James Gaudino, President
Linda Schactler, Secretary to the Board Joel Klucking, Treasurer to the Board Kim Dawson, Executive Assistant to the President & Board of Trustees Alan Smith, Assistant Attorney General Executive Faculty & Staff Andreas Bohman, Vice President for Operations Delores (Kandee) Cleary, Vice President for Diversity & Inclusivity Lynn Franken, Interim Provost/Vice President for Academic & Student Life Josh Hibbard, Interim Vice President for Enrollment Management Kremiere Jackson, Vice President for Public Affairs Public Comment Chair Erickson reported that no one signed up for public comment. Board Organization
Jeff Hensler, CWU Foundation Chair, gave an update on Foundation activities and planning. Trustees have requested greater connection with the CWU Foundation in order to better participate in development work on behalf of the university. Action – Approval of Consent Agenda The consent action items are submitted by the divisions of Academic and Student Life, Business and Financial Affairs, Enrollment Management, Operations, and the President. Motion 19-41: Mr. Nellams moved that the Board of Trustees of Central Washington University approves the consent action items submitted October 18, 2019, which was seconded by Ms. Gillis. The motion was approved. Action – Approval of Housing and Dining Fee Increase Motion 19-42: Ms. Gillis moved that the Board of Trustees of Central Washington University hereby approves the Auxiliary Services Housing and Dining maximum rate increase, not to exceed 4 percent in the aggregate, for fiscal year 2021, which was seconded by Mr. Nellams. Trustee Harrington opposed. The motion was approved. WA State Disparity Study Update Presented by:
Lisa van der Lugt, Director, Office of Minority & Women’s Business Enterprises & Rex Brown, Administrative Director, Governor’s Subcabinet on Business Diversity Chris Liu, Director of the Washington State Dept. of Enterprise Services
The State of Washington conducted a Disparity Study to assess the use by state agencies, including higher education institutions, of minority-, women- and veteran-owned business enterprises. The research project was designed to evaluate whether such businesses have equal access to contracting opportunities on State prime contracts and associated subcontracts. The study also evaluated barriers to State contracting and recommended strategies to ensure all firms in the Washington community can
4 Board of Trustees Minutes October 17-18, 2019
participate in State opportunities. CWU participated in this study and contributed data on awarded contracts. There are five certified vendors in Kittitas County and 16 in Yakima County. The scarcity of MWBE- certified business is not sufficient to enable significant participation locally. CWU is broadening the field of prospective providers through a Supplier Diversity Inclusion Plan, which will help CWU to provide the greatest inclusion of diverse businesses. In the Supplier Diversity Inclusion Plan, CWU has taken a strategic, pro-active approach to soliciting diverse businesses and promoting participation in procurement activities. Strategies include: • Participating in vendor outreach programs, such as the annual training provided by the Department of Enterprise Services or events relating to Supplier Diversity. • Accepting vendor self-certification, due to the limited availability of certified firms near the Ellensburg campus. • Un-bundling purchases when practicable to participation by maximize small minority-, women- and veteran-owned firms. • Requiring capital projects to include subcontracting plans, when appropriate, to increase opportunities to diverse subcontractors.
The regular business meeting adjourned at 10:14 AM
Executive Session Present: Ron Erickson, Chair Robert Nellams, Vice Chair Erin Black Ray Conner (via phone) Gladys Gillis James Gaudino, President Linda Schactler, Board Secretary & Chief of Staff Alan Smith, Assistant Attorney General
The board convened in executive session at 10:30 a.m. for one hour and thirty minutes for the purpose of discussing issues related to personnel per RCW 42.30.110. Executive session ended at 12:00 p.m.
The next meeting of the Board of Trustees is February 20-21, 2020 at a location to be determined.
Linda Schactler, Secretary to the
Ron Erickson, Chair CWU Board of Trustees
CWU Board of Trustees
5 Board of Trustees Minutes October 17-18, 2019
CENTRAL WASHINGTON UNIVERSITY Board of Trustees Feb. 20, 2020
Executive Summary – CWU began offering baccalaureate programming in south King County in 1980, holding classes in a former elementary school. Over the course of the next 25 years, CWU’s south King County presence would move to South Seattle Community College and then to an old high school in SeaTac (the “SeaTac Center”). Finally, in 2003, the state capital budget authorized $26.5 million for construction of a state-of-the-art University Center at Highline Community College. The Higher Education Center became the permanent home for CWU-Des Moines.
CWU Normandy Park Center, 1980
During their visit to the Des Moines campus, the CWU Board of Trustees will have the opportunity to meet the president of Highline Community College. Dr. John Mosby became the seventh president of Highline Community College in July 2018. He has more than 23 years of higher education experience and holds a doctorate in leadership/higher education administration from the University of San Diego. Highline has enjoyed remarkable leadership stability, with only six permanent presidents during its history, which began in 1961 as the first community college in King County. Trustees also will meet three CWU University Center Moines students and learn about their academic experiences. The students are • Jenny Castro: CWU-Des Moines, Online Student, Criminal Justice
• Rebecca Smith: CWU-Des Moines, Elementary Education • Lewis Nguyen: CWU Lynnwood, Supply Chain Management
Approved for submittal to the Board:
Linda Schactler Chief of Staff
James L. Gaudino President
CENTRAL WASHINGTON UNIVERSITY Board of Trustees February 20, 2020 EXECUTIVE SUMMARY - Retention Overview
Retention is a campus-wide ethical and economic imperative, supporting both student completion goals and institutional sustainability. A successful retention initiative is a critical component of the value proposition of Central Washington University. Over the past two quarters, Academic and Student Life has partnered with Enrollment Management and consulted across divisions to meet retention objectives presented to the Board of Trustees in the fall of 2019. These include: 1. Establishment of the Center for Teaching Excellence (CTE): The goal of the CTE, located in Samuelson Hall, is to support the faculty in developing/refining modes of teaching that lead to transformational student learning. Research identifies active, interactive, highly participatory, highly engaged activities as best practices for fostering deep and lasting learning. 2. Establishment of the Transfer Center: Located in Bouillon 210, the new Transfer Center will serve as the focal point of outreach to sending institutions for both recruitment and alignment of curricula for the 42 percent of undergraduates who are transfer students. Students will receive tailored mentoring to ensure their integration into student and academic life. 3. Learning Within the Standard, Credit-bearing Curriculum for All Students: With the active support and leadership of the Dept. of English, “Stretch English” will launch in fall 2020. The Stretch concept, which has been nationally tested and endorsed, introduces students who need supplemental assistance in first-year composition and rhetoric to the standard English 101 curriculum, allocating them two quarters of credit and of time-on-task to complete the material. Selected faculty in mathematics, including the department chair, will attend a national conference in May to explore folding supplemental math support into the department’s standard curriculum and to learn more about current trends in mathematics in higher education. Additionally, all fees currently charged to students testing into developmental courses have been eliminated. 4. Year-long New Faculty Orientation: In fall 2019, Associate Provost Gail Mackin began leading new tenure-line faculty in a year-long introduction to What the Best College Teachers Do. This text is a treasure trove of ideas on engaged teaching and learning (and student mentoring) drawn from professors across the country identified as highly successful. Currently in its second quarter, the program has now been opened to all faculty. The program includes traditional orientation activities, such as requirements for scholarship and service and tips on life in Ellensburg and the region. 5. CWU 184, First Year Experience : This program was launched in fall 2019 and seems to be doing well. This year we will offer 130 sections taught by faculty from 43 different disciplines. All sections share common student learning goals. Enrollment is capped at 20 students. Beginning in the spring quarter of 2020, 184 will pilot a peer-mentoring program. Successful 184 completers, Douglas Honors College students, and graduate students are among the groups under consideration as peer mentors.
6. Belonging and Growth Mindsets: Research indicates that electronic messaging around belonging and growth mindsets can attract students to the institution and prepare them for success once enrolled. Prof. Tonya Buchanan, Department of Psychology, has been appointed to lead a special project on belonging and growth mindsets. Thus far, she has met with the staff advisors who teach UNIV 101 (required of all students) and presented her findings to the Psychology Department. The project also will engage Enrollment Management and the Dept. of Public Affairs. 7. Re-envisioning the Residential Experience: Student Life has revised its residential programming to more closely align with student needs and expectations and redeployed staff advisors to optimize interaction with students. The following initiatives have been on our agenda but have progressed more slowly. 1. Advising: The primary advising structures under discussion are staff advisors for all students; faculty advisors for all students; and hybrid models by choice of the colleges or of departments within colleges. We are aware of the need to hire additional staff advisors, probably two for Exploratory students and two for the College of Arts and Humanities. All advisors in the College of Business are staff; the college is pleased with the system and the results it delivers. The College of the Sciences embeds staff advisors with faculty advisors, utilizing a hybrid and co-located advising team, most conspicuously in the Biology Department. 2. High Expectations/High Effort/High Support: Minimal progress has been made on this concept into the next major iteration of CWU identity and marketing. Meanwhile, Transformational Teaching and Learning occupies concept space in the ASL Strategic Plan revision. New and Emerging Initiatives 1. Open Educational Resources : Opportunities to decrease the cost of textbooks for students include access to open source electronic materials, library-based lending systems, site-printed course packs, and other options. Rebecca Lubas, Dean of the Libraries, is leading an ad hoc inquiry to determine what will work best for CWU. Gregg Heinselman, Dean of Student Success, has experience with a successful rent-for-a-semester model. There is some faculty concern focused on the quality/currency of free electronic materials. 2. Two-quarter Registration: Discussion is underway to move to a two-quarter registration model. This change would shift students to an opt-out mode in terms of persistence and encourage longer-term planning. To accommodate this registration plan, course scheduling would need to be completed at least annually and preferably biennially.
Approved for Submittal to the Board:
Lynn Franken Provost/Vice President for Academic and Student Life
James L. Gaudino President
CENTRAL WASHINGTON UNIVERSITY Board of Trustees February 20, 2020
Executive Summary - Strategic Enrollment Plan Update The Board of Trustees endorsed the Strategic Enrollment Management (SEM) Plan at the February 2019 board meeting. In August 2019, the SEM Advisory Council was formed, serving as the coordinating body for the implementation of the SEM plan. With support of the Project Management Office, this cross- divisional team developed the SEM implementation plan, branded Destination 2025 . The implementation plan has been deployed, and documents 115 year-one initiatives and projects that support three goals: increase new student recruitment, increase enrollment of traditionally under- represented student groups, and improve retention, persistence, and degree time-to-completion. Enrollment Update Overall, undergraduate and graduate winter enrollment is consistent over last year (11,206 winter 2020 vs 11,253 winter 2019). In addition, our high school partnership programs are healthy, with 365 winter 2020 Running Start students and a projection of over 800 winter 2020 College in the High School students. We project serving over 5,000 unique students in these programs this academic year, which is an increase over prior year. An increase in our first-year cohort persistence from fall to winter (92.7 percent winter 2020 vs 91.5 percent winter 2019) is a positive indicator that the overall fall-to-fall retention rate will improve. This indicator suggests the retention initiatives being led by Associate Provosts Mackin, Kaykayoglu, and Jungblut are making a difference. Currently, CWU has received over 1900 applications for spring commencement, nearly 400 more applications than last year. This success is promising, providing further evidence thatinvestments in student success, especially the efforts within Academic and Student Life, are driving degree completion gains. The fall 2020 recruitment cycle is in full swing. Demographic and higher education demand projections indicate a difficult year for institutional growth across the nation. The most recent report from The Common Application illustrates a decrease in application volumes across most regions of the US: Midwest (-1.1 percent), Middle States (-3.4 percent), New England (-5.4 percent) and West (-5.5 percent). The Western Interstate Commission on Higher Education (WICHE) projects a decrease in Washington high school graduates in 2020. In addition, the Higher Education Demand Index predicts a drop in those seeking a degree from comprehensive, four-year public institutions in Washington. Finally, Gallup’s recent opinion poll identified a significant decrease in the importance level of higher education. In the
US, the percent of 18 to 29-year-olds who consider a college education to be “very important” has dropped drastically, from 74 percent to just 41 percent (2013 vs 2019). Despite these projections, CWU is experiencing a similar level of applications from Washington residents compared to the record-breaking fall 2019 cycle. However, the total application pool is down 4 percent, demonstrating a drop in non-resident and international applications. Overall, CWU’s admitted-student pool is slightly ahead of last year (+0.3 percent). Traditionally underrepresented student groups (TUSGs) once again comprise more than 50 percent of our current application pool. Community and technical colleges continue to experience enrollment declines, which likely will continue to negatively impact CWU transfer enrollments. However, multiple initiatives were launched this fall and to increase our services and recruitment of transfer students. The departments of Admissions, Extended Learning and Outreach, Registrar Services, Student Success, Public Affairs and others are collaborating to improve the preparation, transition, and progression of our transfer students. A renewed focus on University Center and online transfer recruitment will improve pathways to CWU. In many ways, Central is better positioned than most for the future, as strategic enrollment management and retention plans will help mitigate environmental factors negatively impacting enrollment. To meet enrollment-growth goals, multiple strategies have been developed and launched across the university. Currently, the overall fall 2020 enrollment picture is flat to moderate growth for new students and an increase in first-year student retention. However, with the unexpected increase in projected spring CWU graduation numbers, overall enrollment will likely be lower than fall 2019. Although our efforts will result in positive recruitment and retention gains, contingencies for a slight dip in overall enrollment should be considered.
Approved for Submittal to the Board.
Josh Hibbard, PhD Vice President for Enrollment Management
James L. Gaudino President
Central Washington University Board of Trustees February 20, 2020
EXECUTIVE SUMMARY – Workforce Diversity Plan Update
Diversity is a core value and critical to the sustainability of the university. Our strength lies in the diversity of our staff and faculty, which we believe positively impacts productivity, innovation, academic excellence and ultimately student success. The goal clearly stated by President Gaudino in the October 2019 State of the University, is to increase workforce diversity by 5% over the next five years. This can be done by cultivating a diverse workforce pipeline and ensuring that campus policies, departmental procedures, and funding models align to make progress quickly. Every division, college, school, and department must participate in and have a responsibility to bring diversity and inclusion excellence into recruitment, hiring, and retention practices. Central Washington University has a long-standing commitment to access to higher education for those who have been traditionally underrepresented. This commitment has been reflected in the university’s positions on recruiting and retaining minority students. Our institutional strategic planning envisions a future of continued growth in both student and faculty/staff diversity. To fulfill the university’s primary mission of providing excellence in education, teaching, and facilities, we must continue to evolve as a diverse community and serve the needs of our region, nation and international community. The educational experience and learning from those different from ourselves can only be taught in intellectual and social environments that are diverse. Increasing the diversity of our faculty and staff promotes critical thinking, intercultural communication and challenges preconceived notions. Achieving our goals has required us to be intentional in the way we do business and make a conscious effort to build learning environments that take advantage of the abilities and talents of a diverse group of people. In doing so we can prepare students to engage and contribute in a global society that is increasingly complex, pluralistic, and that requires teamwork, collaboration and innovation. Identified in the Workforce Diversity Plan were several “quick wins” that provided intentionality in doing searches, particularly searches for diverse faculty. There has been an assumption that the diversity of faculty for the computational and natural sciences was near to impossible. But academic searches are making exciting progress. These national searches all have exceeded availability of a diverse pool at each step of the process.
As the data shows there are some challenges with staff that we have not addressed. Staff searched are not tracked by the breadth of the search--local, regional and national. Until we know this, it is not possible to gauge availability. However, the data that we do have indicates that diversity declines in at each step of the process in staff searches. There is a need to gather disaggregated data to have a better indication of the opportunity to hire diverse candidates in staff searches.
Approved for submittal to the Board:
James L. Gaudino
Vice President for Inclusivity & Diversity
Central Washington University Board of Trustees February 20, 2020 Executive Summary—Sustainability Planning
On October 16, 2019, President Gaudino delivered his State of the University address and identified reducing CWU’s carbon footprint as one of three top university goals through 2025. In December, CWU hired a sustainability coordinator to define and unify carbon-reduction efforts, and to lead the development a long-term strategic vision for the university. Funding for the position came from existing budgets within the Office of the Provost and the Office of the Chief Financial Officer. Kathleen Klaniecki joined CWU on January 2, 2020 as Sustainability Program Coordinator. Dr. Klaniecki will lead efforts to infuse sustainability principles into operational activities primarily, but also curricular and co-curricular functions of the university. Dr. Klaniecki holds a PhD in Sustainability Science and previously worked at Lehigh University (Bethlehem, PA) as Sustainability Program Coordinator. Where we are now— sustainability successes The work of CWU over the past two decades to reduce energy consumption and enhance resource efficiency earned CWU “bronze” certification by the Association for the Advancement of Sustainability in Higher Education Sustainability Tracking, Assessment & Rating System (AASHE STARS). The president’s new carbon reduction initiative starts from a strong foundation. o LEED certified facilities. The Operations Division has overseen the construction of four buildings that achieved certification by Leadership in Energy and Environmental Design (LEED), a green-building certification program used worldwide: Dean, Hogue, Barto, and Discovery Hall. The Samuelson Hall and the new Health Sciences building under construction now are anticipated to meet LEED standards. o Native landscaping. Local basalt columns and native or drought-resistant vegetation have been used in the landscape architecture of nearly all recent construction or renovation projects on the CWU campus of the 21st century, including the Student Union and Recreation Center, McIntyre Hall, Wendell Hill Residence Hall, Dean Hall, Discovery Hall, Bouillon Hall, and Lind Hall. o Energy reduction. The Division of Operations has reduced natural gas consumption despite an increase in building footprint, and installed a heat exchange system to capture waste heat. This also includes a significant reduction in electricity consumption and we are saving nearly five million gallons of water per year through our low-temp heating water system. o Recycling and composting. Auxiliary Operations has switched to 100 percent recycled letterhead for Wildcat Printing, increased green products in the Wildcat Shop, established the Wildcat Neighborhood farm, and rolled out compostable products in dining. o Academic programming. Within academics, a Sustainability Pathway was added to the General Education Program and the Environmental Studies Program launched the Sustainability Certificate.
Where we want to go— vision and goals CWU has a strong foundation of sustainability initiatives and leadership. Developing a coordinating approach to carbon reduction will mean connecting isolated initiatives with a broader, comprehensive program. University-wide sustainability will build upon and enrich existing initiatives, drive down CWU’s carbon footprint, and achieve the AASHE STARS Gold certification within five years. This vision will require cross-division collaboration and commitment, buy-in from employees and students, and a shared prioritization of initiatives. How we get there— intentions for the coming months In order to achieve this ambitious vision, we intend to use the coming months to: 1. Create a definition of sustainability to guide and direct CWU’s sustainability work, beyond carbon reduction. 2. Develop a comprehensive outreach and communication plan to elevate campus carbon- reduction initiatives, reach prospective students, and engage the university communities. 3. Launch a strategic planning process to develop comprehensive goals, metrics, and benchmarks for measuring progress. The aim is to create bold goals and a comprehensive vision that will unite the university and local communities as we create a cleaner, safer and more healthful campus. The primary focus is the reduction of our overall carbon footprint and also to equip students with the skills and knowledge to address today’s complex global challenges. Doing so will position CWU as a leader in integrating sustainability into operations, administration, and teaching.
Approved for submittal to the Board:
Andreas Bohman VP Operations
James L. Gaudino President
CWU QUARTERLY BOARD MEETING AGENDA February 21, 2020 Cedarbrook Lodge/Brightwood Boardroom
BUSINESS MEETING 9:30 AM – Call to Order 9:35 AM – Housing Finance Sustainability 10:00 AM – Strategic Planning
10:30 AM – Board Business 11:15 AM – Action Agenda
• Approve Board Bylaws Revisions • Approve Consent Agenda • Approve BA Deaf and Sign Language Studies • Approve BS Entrepreneurship • Approve Samuelson Commons Naming • Approve Realignment of Parking and Police Funding
Central Washington University Board of Trustees February 20, 2020 Executive Summary – Sustainability of Long Term Housing & Dining Rate Increases At the October 18, 2019 Trustee meeting, there was a request from the Board to take a deeper look at the need to raise housing and dining rates above inflation every year. Specifically, the question was asked “is it sustainable to increase rates 5% every year for the next 20 years?” That would effectively double housing and dining rates on campus (ignoring inflation) over twenty years. Is it possible that students can absorb that kind of increase, and won’t we outpace the local housing market? A workgroup was formed shortly thereafter to answer these questions, and produced the accompanying report. The intent of this report is primarily to provide enough information for the Board to make these annual rate increase decisions armed with current and historical context, as well as potential alternatives to rate increases.
Approved for submission:
Joel Klucking, Vice President Business and Financial Affairs
James. L. Gaudino
Central Washington University HOUSING & DINING PLAN
Joel Klucking, Vice President of Business & Financial Affairs February 13, 2020
Introduction At the October 2019 meeting of the Board of Trustees, trustees asked staff to take a deeper look at the need to raise housing and dining rates above inflation every year. Specifically, trustees asked, “Is it sustainable to increase rates 5 percent every year for the next 20 years?” That would effectively double housing and dining rates (ignoring inflation) over 20 years. Trustees wanted to know, “Is it possible that students can absorb that kind of increase, and won’t we outpace the local housing market?” The intent of this report is primarily to provide enough information for the Board to make annual rate- increase decisions armed with current and historical context, as well as potential alternatives to rate increases. This report is organized by the following topics:
Topic Page # Historical Perspective……………………………………………………………….…………………...3 Long Term Housing & Dining Master Plan………………………………….…………………..4 Potential Alternatives to Rate Increases……………………………….………………………..8 Local Market Comparisons…………………………………………………………….………..…....9 Satisfaction Benchmarking……………………………………………………………...…………..12 Trends for Student Housing…………………………………………………………….…………...13 Summary……………………………………………………………………………….……………….......14
Historical Perspective The university embarked on an aggressive building campaign in the 1960s in response to soaring enrollment in the Vietnam War era. Many new residential facilities were built in this timeframe (Beck, Hitchcock, Meisner, Davies, Quigley, Holmes Dining and Warehouse, Student Village, Brooklane Village, Wahle, Kennedy, Green, Alford Montgomery) and were all funded by 30-year bonded debt.
Fall Quarter Undergraduate Enrollment
10,000 12,000 14,000
0 2,000 4,000 6,000 8,000
When the Vietnam War ended, the demand for on-campus housing declined rapidly. The annual bond payments did not.
For the next two decades the primary focus of the housing and dining system was simply to earn enough money to pay the debt. Repairs and improvements were postponed. Price sensitivity did not allow for rate increases, as all colleges and universities were in the same situation. The debt was completely paid off around the year 2000. Long Term Housing & Dining Master Plan In the new millennium, the trustees asked for a long-term plan, as it seemed that a planned approach would be a more prudent path forward than simply repairing what could be afforded when possible. With the bonds paid off and enrollment growing slowly over time, there would be borrowing capacity to renovate deteriorating properties. In 2004, Kamola and Sue Lombard Halls, historic buildings on E. University Way, that had been mothballed for many years and were in complete disrepair. The Board approved a complete renovation of both facilities and authorized $20 million in revenue bonds, to be paid back over 30 years. Also in 2004, the university contracted with a consulting firm to develop a 30-year housing and dining financial master plan. This plan identified the looming backlog of deferred maintenance at $150 million. The report forecasted what funds would be available and when, in order to re-invest in these assets, either through complete renovation or replacement. Essential to this forecast were assumed annual rate increases, and assumed occupancy rates. The university had been increasing rates over time, however very sporadically until 2006 when the long-term financial plan was put in place. After that time rate increases stabilized and became more predictable – helpful for planning for both the university and students.
Rate increases since the development of the long-term financial plan have been divided into two parts. The first part is intended to offset wage, benefit, and goods & services inflationary pressures. The second part goes above and beyond this inflation to add funds to the asset re-investment pool. At the October 2019 Board meeting, a rate increase of 4 percent in the aggregate (between housing & dining) was requested with the following split:
Dining requested a 2.6-percent general inflationary increase just to maintain the current financial outcomes, and an additional 0.4 percent to put toward the asset stewardship fund. Housing requested 2.4 percent for general inflation and an additional 2.6 percent for the asset stewardship fund. Over time, the goal of the asset stewardship fund is to buy down the current deferred maintenance backlog, which may go unnoticed in the short run by students living in the facilities (e.g. a new roof). But it is also important to make improvements to the spaces that students will notice, such as new built-in furniture, windows, and bathrooms. CWU is now in year 16 of the plan and the current estimated, immediate, deferred-maintenance backlog is $38 million. With the addition of Dugmore Hall, CWU now has more modern rooms available than “vintage” rooms, which students seem to appreciate. In addition, inventory now includes 700 more beds than in 2006, which will support the long-term growth in enrollment that the university expects. The basic elements of the plan are not exceptionally novel. The combination of efficient operations, strong occupancy, and steady rates that are competitive yet provide enough funds for asset re-investment are critical to our the long-term health of the housing and dining system. Of course, an additional benefit of the 30-year plan is that it is not static. It has changed significantly over time as the environment around the housing and dining system has changed; the current plan would be unrecognizable to the original drafters. For example, the original plan had Courson and Muzzall Halls (the two “high-rise” buildings formerly next to Munson Hall) in place and in service until 2034. Instead, they were demolished in 2008 and replaced by Wendell Hill Hall. This is a prime example of eliminating a significant portion of the deferred maintenance backlog by replacing old beds with new beds. If each key element of the plan is considered (rates, occupancy and efficient operations) and the outcome provides better amenities to the students, while also reducing the asset re-investment backlog, the plan works. Other Washington universities face the same issues, they are just further behind in the repair and improvement plans. We know this because they have come to ask us what we have done to get to where we are today. Life-Cycle Costs of a Building The purpose of raising rates above standard inflation is to set aside enough money to re-invest in physical assets over time. Industry standard is to set aside 3 percent of the total asset value each year, which would effectively reserve nearly enough money to replace each building after 30 years—if it weren’t for inflation. Considering the effects of inflation, particularly construction-cost inflation, which has historically been more than double the general inflation rate, a 3-percent annual set-aside should provide for basic system replacement over the life of the building (HVAC, roofs & windows, plumbing, electrical, etc.). After 30 years, the original bonds should be paid off and the building would likely be antiquated, from a student’s perspective, but in reasonably good physical condition. At some point a decision has to be made to either do an extensive remodel, or tear down and replace the building, and the cycle starts over again.
When applied to Central’s housing and dining system, a 3-percent annual set-aside would equal more than $7 million on an asset valuation of around $240 million. So here we have a serious problem, as the annual cash generated from the system is typically between $3 million and $5 million. In order to generate more cash, rates would have to increase so far above what is bearable for students, and would put CWU so far out of what is reasonable in the marketplace, that it becomes an unreasonable answer. It seems far more reasonable to increase rates steadily over time, acknowledging that strategic choices will have to be made in the future. Housing and Dining has a 10-year asset renewal plan. The plan removes a significant amount of the deferred maintenance backlog and also makes visible improvements to student spaces. Using funds accumulated from prior operations as well as projected resources (including rate increases above general inflation), we plan to invest more than $40 million in asset stewardship over the next ten years. The chart below identifies the required reserve for CWU’s debt policy (equal to one year’s bond payments). The red line projects our reserve balance when we spend according to plan, but only increase housing and dining rates 3 percent annually. Clearly we would have to make other choices after 2021 in order to maintain compliance with our debt policy. The yellow line represents our projected reserve balance with a 4 percent rate increase annually, which would allow us to carry out our plan until about 2027. Finally, the green line represents a 5 percent annual rate increase, would allow us to fully fund our investment plan, and leave some funds available for the next investment plan after 2030.
CWU Housing & Dining Fund Projected Reserve Balance
5 percent Rate increase
4 percent Rate increase
3 percent rate increase
Potential Alternatives to Rate Increases Cut expenses to generate more free cash flow
Benchmarks with professional organizations, such as the National Association of College & University Food Services and the Association of College and University Housing Officers-International, show that CWU already is more efficient than other schools (see below for recent results). We could improve cash-flow by making significant cuts in programming and staffing, at least in the short run. In the long run, our students would likely vote with their feet and occupancy levels would decline to the point that even maintaining our current cash-flow would be unlikely. Public Private Partnership (P3) The next consideration could be a Public Private Partnership, commonly referred to as a P3. A P3 is a risk- sharing arrangement and can be an attractive option under certain circumstances, such as when the university cannot borrow the funds it needs, lacks operational expertise, or is growing so fast the institution cannot keep up with housing requirements. The typical P3 means that the public partner contributes something, usually land, and the private partner borrows, builds, and potentially operates the housing facility. At the end of the 30- to 60-year term, the asset is turned over to the public partner for a nominal fee (sometimes $1). CWU has explored P3 opportunities extensively in the past, up to the point of having one of the nation’s largest campus housing P3 firms prepare an evaluation of a possible P3 in 2016. Their conclusion was straightforward: a P3 is difficult to establish in a rural location, however this could be overcome if the university’s annual growth rate was projected to be at or above 4-5 percent. Our annual growth rate for the past three years has been 0.3 percent, not enough to be attractive to a well-qualified, experienced campus housing P3 firm. Nor do we lack the ability to borrow funds to build and operate our own facility. Additionally, there is a hurdle to overcome related to bond covenants. When we borrow money to build new facilities, we pledge future revenues (typically 30 years). But we also make certain other pledges. One of them is that we will not enter into any other agreements that compete with the Housing/Dining “System.” A P3 is not necessarily inherently direct competition, however one common requirement that the private partner is that there is a “fill clause,” meaning we agree to fill their facility with students first, then fill ours. This is an excellent way to minimize the occupancy risk of the private partner, but would create an explicit competitor to the university’s Housing/Dining “System,” in violation of our bond covenants, and an unreasonable transfer of risk to the university. Defer Asset Re-investment The final option would be to delay renovations and repairs. This is the most obvious and adopted alternative at all universities, as it is very difficult to set money aside for renovations when resources are constrained to begin with. Immediate needs are chosen in favor of long term needs, sometimes that is a fact of life. But at some point, long-term needs become immediate and end up costing significantly more in an emergency
situation. This option would simply add to the deferred maintenance backlog to be addressed by future administrations, trustees and students.
Local Market Comparisons Housing
The housing market in Ellensburg is currently fairly tight. Modest growth in CWU enrollment and the relative affordability compared to the Puget Sound area is drawing residents to the community. The private market is responding with an increase in single-family homes; the development of a very large apartment complex northeast of campus is helping take the pressure off the local housing market. Three-fourths of the 4,000 beds on campus are in residence halls, which require a meal plan and are generally occupied by first- and second-year students. Residence halls are staffed with resident advisors and other support staff to ensure a superior overall student experience; intentional programming keeps students engaged in student and academic life. There are no easy comparisons in the Ellensburg marketplace. There are a range of comparisons to on-campus apartments, which have the advantage of location, and generally offer furnished, utility-inclusive, month-to-month leases to students. These advantages are somewhat tempered by the general age and condition of the facilities, and while there is strong demand for on-campus apartments, there are vacant spaces. Apartments are at 90 percent occupancy in February 2020. Each spring quarter we receive information from the City of Ellensburg related to off-campus housing rates to ensure we are maintaining price relevance within the market. This past fall quarter, we determined through an annual assessment that there was availability in most apartment complexes in town and multiple homes still for rent. Current on-campus apartment rates range from $657-$1200 per month. Because we have a variety of types of units, there are price points that are attractive to most students. Our most popular units include three- bedroom and one-bedroom units. Our one-bedroom rates are at the middle of the market for cost at $789. Lease rates for new apartments in the community vary from $1030-$1545 per month. Our most expensive three bedroom units cost $1200 per month. We typically do not allow more than three people in our units. Below is a comparison of our apartment complexes compared to several local options.
Dining: Food Away From Home College and university dining programs reference the consumer price index (CPI), food away from home category, when calculating projections for food cost increases. Food away from home encompasses all meals, including breakfast and brunch, lunch, dinner and snacks, including non-alcoholic beverages. The context for this category includes fast food, take-out, delivery, concession stands, buffet and cafeteria, full-service restaurants, vending machines, mobile vendors, and include campus dining meal plans. The CPI for food away from home rose over three percent this current year. With projections expected to continue the trend of consistent rate increases, in the range of 2.0 and 3.0 percent in 2021. A snapshot view below reflects the trend is not a novelty, rather a reflection of ongoing increases to commodities, which historically have and continue to impact the food and beverage industry.
Annual Inflation - Meals Away From Home 1987-2018
- 1.0 2.0 3.0 4.0 5.0
Local Dining Benchmark We compared high-demand food items from CWU Dining to similar items in the local marketplace (as similar as possible). As reflected in the chart below, the comparison demonstrates that pricing at CWU is in-line, if not below local market benchmarking, despite a relatively generous benefits package, competitive wage structure, and operating within a unionized environment. CWU does not charge sales tax to resident students, nor is tipping allowed.
Local Location Like item
CWU Food item
Cheeseburger with fries
$7.70 Burger $3.00 Burger $7.75 Pizza
$8.55 $3.49 $9.99 $5.99 $2.95 $5.25 $9.50 $1.90 $8.75 $10.49 $14.50 $12.49
$0.85 $0.49 $2.24 $1.99 $2.64 $0.05 $0.00 $0.10 -$0.05 $1.25 $1.30 $3.99 $0.54 $1.75
Sausage Egg McMuffin Carnivore size small
10" Wildcat Pizza
Eggs, Bacon, Breakfast Potato, w/Pancake
$8.50 Breakfast Bacon Egg w/Country Potato
$3.35 Breakfast Waffle
Americano 16 oz. Frappuccino 20 oz.
$2.90 Coffee Americano 16 oz. $5.25 Coffee Frappuccino 20 oz. $9.40 Chinese #1 Combo Dinner $1.95 Chinese 2 Spring Rolls $7.50 Chinese Barbequed Pork Noodles
3 entrée 1 side (customers choice)
2 Spring Rolls
Garlic Tonkotsu Ramen with Pork Take and Bake 1 topping 16"
16" take and bake 1 topping
Grilled Salmon Special (1 entrée + 2 sides) Pasta with Sauce +Protein + Focaccia Bread
$8.50 Breakfast Tilapia Florentine
$8.25 Restaurant Sm Spaghetti w/Meat Sauce, Garlic Bread $8.79
Quesadilla w/ Meat and Side of Rice and Beans $6.00 Mexican Quesadilla with Meat, No Sides
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