Finance and Facilities Committee Meeting November 18, 2022

The Finance and Facilities Committee met on Friday, November 18, 2022 at 8:30 a.m. in the David Student Union Boardroom, with Chairman Robert R. Hatten, Esq. presiding.

Present from the Committee

Mr. Robert R. Hatten, Esq.
Mr. John Lawson
Ms. Terri M. McKnight, CPA
Ms. Kelly Purdy Meadows
Ms. Christy Morton
Mrs. Lindsey Carney Smith, Esq.
Mrs. Judy Ford Wason

Absent from the Committee

None

Present from the University

Ms. Adelia Thompson, Interim President
Mrs. Jennifer Latour, Vice President for Fianance and Planning/Chief Financial Officer
Ms. Christine Ledford, Vice President for Administration and Auxiliary Services
Ms. Ashleigh Andrews, Associate Vice President/Chief Human Resources Officer
Ms. Sarah Herzog, Director of Planning and Budget
Mr. Tom Kramer, Executive Director of Wason Center for Civic Leadership & Legislative Liaison
Mr. Keith Roots, Vice President for University Advancement
Ms. Olga Lipatova, Faculty Senate Representative
Ms. Rhonda Wissinger, Executive Administrative Assistant

Public in Attendance

None

Chairman Robert Hatten called the meeting to order and welcomed everyone in attendance.

Approval of Minutes from the September 16, 2022 meeting

Chairman Robert Hatten asked for a motion to approve the minutes from the September 16, 2022 meeting and Mrs. Lindsey Carney Smith made the motion for approval that was seconded by Mrs. Terry McKnight, with all in favor.

Chairman Robert Hatten introduced Ms. Christine Ledford, Vice President for Administration and Auxiliary Services to provide the following report:

Capital Projects Update

Ms. Ledford reported the Integrated Science Center Phase III is underway and the preliminary design has been submitted and approved by Virginia’s Department of Engineering and Building (DEB). The working drawings are continuing to advance. The revised cost of this project is $90.7 million dollars, the original cost was $58.5 million. The increase in cost is due to inflation and primarily the cost of steel is up 200% and construction materials are increased by 35%. Christopher Newport has made a supplemental request to the State of $32 million to cover the difference in cost. Drawings should be complete by July and construction is expected to begin sometime between July and September. There is a two-year construction timeline and construction is expected to be complete by Fall of 2025.

The new Administration Building/CNU North will replace the existing CNU North Building and will house the offices of Procurement, Capital Outlay Management, Human Resources, Advancement, CNU Foundations, and Communications and Public Relations. The site work began in July with completion expected in September 2023. Once the building is complete, employees will move to the new building and the existing building will be demolished.

Infrastructure Repairs and Improvements that have been awarded and underway are:

Central Chiller Plant-installation of a new 650-ton chiller to replace the existing 320-ton chiller
Plant Operations Roof Replacement- to begin in January 2023
Ratcliffe Boiler and Water Heater Replacement- replacing two existing 54-year boilers and two existing gas fired water heaters that are over 20 years old

Two projects that are under review are the Ferguson Center Roof Replacement and the Ratcliffe High Roof Replacement. A future project will be the Plant Operations Warehouse Renovation and Expansion.

SWaM Report for the Three Months Ended September 30, 2022

Ms. Ledford reported the SWaM target goal is 42% and Christopher Newport is currently at 55%. The SWaM fair was held yesterday and it was very well attended by both vendors and employees.

Legislative Update

Mrs. Latour reported that there is one month until the Governor announces the budget and a report will be provided to the Board of Visitors in February. Cabinet Secretaries of Finance and Education, as well as SCHEV (State Council of Higher Education for Virginia) staff visited Christopher Newport’s campus for the bulk of a day.

Mr. Tom Kramer provided a legislative update and reported the General Assembly will convene on January 11, 2023.

Statement of Revenues and Expenditures for the Three Months Ended September 30

Mrs. Latour reported the revenues are reflecting the end of the first quarter and $22.5 million was collected which is a little over last year as compared to $21.7 million. State appropriations is at $12.5 million as compared to $9 million last year. FY23 will show a small increase in base financial aid. Auxiliary Enterprises has a $2 million increase and this is due to an increase in room and board and comp fees. Study Abroad is rebounding and revenues are increasing now that students are able to travel again. Mrs. Latour reported on reserve dollars including capital, operating, scholarship and athletic reserves. The Ferguson Center for the Arts received the Shuttered Venue Grant and they were able to create a reserve for the Ferguson Center for the Arts.

There being no further discussion the meeting was adjourned at 9:21 a.m.