Finance and Facilities Committee Meeting April 14, 2023

The Finance and Facilities Committee met on Friday, February 3, 2023 at 8:30 The Finance and Facilities Committee met on Friday, April 14, 2023 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
Mrs. Terri M. McKnight, CPA
Ms. Kelly Purdy Meadows (remote participation)
Ms. Christy Morton
Mrs. Lindsey Carney Smith
Mrs. Judy Ford Wason

Ms. Kelly Purdy Meadows participated remotely by phone from Richmond, VA. Remote participation was allowed due to the distance between her primary residence and the meeting location pursuant to Code of Virginia §2.2-3708.3(B)(3).

Other Board Members Present

Ms. Regina Brayboy
Mr. Steve Kast
Mr. Larry Pope
LTC (R) Boris G. Robinson
The Honorable Ronald Tillett

Others Present

Mrs. Adelia Thompson, Interim President
Mr. Quentin Kidd, Provost
Mrs. Jennifer Latour, Vice President for Finance and Planning/Chief Financial Officer
Ms. Christine Ledford, Vice President for Administration and Auxiliary Services
Mrs. Lisa Duncan Raines, Vice President for Enrollment and Student Success
Other CNU faculty and staff members

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

Approval of Minutes from the February 3, 2023 meeting

Chairman Robert Hatten asked for a motion to approve the minutes from the February 3, 2023 meeting and Mr. John Lawson made the motion for approval that was seconded by Mrs. Lindsey Carney Smith, 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 building should be complete by June-August 2025 and ready for the Fall Semester of 2025. The revised cost of this project is $90.7 million dollars, the original cost was $58.5 million. A supplemental request for $32 million has been sent to the Commonwealth for consideration.

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. Completion is expected in September 2023. Once the building is complete, employees will move to the new building and the existing building will be demolished. The furniture has been ordered and the final construction documents are being developed.

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- began 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 as of February 28, 2023

Ms. Ledford reported the SWaM target goal is 42% and Christopher Newport is currently at 50%. The Procurement staff is doing a great job and with the implementation of Level II Authority, it has been helpful to utilize other contracts and be able to make our target goal.

Legislative and Budget Update

Mrs. Jennifer Latour stated that the General Assembly Money Committees are unlikely to return to session until late June, therefore, a proposal on tuition and fees is being brought forth now to the Committee and Board of Visitors for consideration.

Discussion on Tuition and Fees

Rector Hatten discussed how important of a role it is for the Committee and Board of Visitors to set the Tuition and Fees for the University. He stated that it is the University’s mission to provide quality, yet affordable tuition for our students and that the Governor has asked us to hold costs as low as possible. After much discussion among the Committee, Mr. Hatten introduced Mrs. Latour to provide an overview on the Tuition and Fees proposal.

Mrs. Latour provided an overview and background of the budget, both revenue and expenses, and a review of our historical tuition and fee rates and factors. She stated that there have been no tuition increases since the fall of 2018 and the comprehensive fee and room and board fees have been level since the fall of 2019. There are multiple factors to take into consideration when setting tuition and fees: expected state funding and state requirements, student affordability, competitiveness and impact on budget and ability to deliver quality services.

Mrs. Latour reported that the University’s undergraduate tuition recommendation is a 4.9% increase, or $456 and falls below the Six Year Plan projected increase of 8.5% or $791.

Resolution 1: FY2023-24 Tuition and Fees and Room and Board

Mrs. Latour presented Resolution 1 proposing the recommended Tuition and Fees and Room and Board increase of 4.9% effective with the Fall 2023 academic term. The Resolution also reflects that authority be given to the President and Vice President for Finance and Planning and Chief Financial Officer, in consultation with the Rector, to 1) reduce the tuition increase should there be a Special Session of the General Assembly that results in the University receiving additional state operating funds that would support a lower tuition increase, 2) establish course fees as needed to offset materials, supplies or additional course-specific costs not covered by general tuition and fees, and 3) establish special program fees for study abroad programs, online courses or programs, certificate or other professional programs. A motion was put forth by Mr. John Lawson and seconded by Mrs. Lindsey Carney Smith.

Voting yes were:

John Lawson, Terri McKnight, Kelly Purdy Meadows, Christy Morton, Lindsey Carney Smith, and Judy Ford Wason.

Voting no was:

Robert R. Hatten

The Resolution moved to the full Board for approval.

There being no further discussion the meeting was adjourned at 10:32 a.m.