Board of Visitors

Finance and Facilities Committee Meeting April 19, 2024

The Finance and Facilities Committee met on Friday, April 19, 2024 at 8:30 a.m. in the Freeman Center, Room 202 with The Honorable Ronald Tillett presiding as Chair.

Present from the Committee

• The Honorable Ronald Tillet
• Mrs. Lindsey Carney Smith, Esq.
• Mr. John Lawson
• Mr. C. Larry Pope
• Mrs. Terri M. McKnight, CPA (remote by phone)
• Ms. Christy Morton
• LTC (R) Boris Robinson

Ms. Terri M. McKnight, participated remotely by phone from Mexico. Remote participation permitted due to personal travel to Mexico pursuant to Code of Virginia § 2.2-3708.3(B)(4).

Other Board Members Present

• Mr. Brent Archer
• Mr. William Estrada, Esq.
• Dr. Daniel Gade
• Ms. Lee Vreeland

Other’s Present

• President William Kelly
• Dr. Quentin Kidd, Provost, Executive Vice President and Chief Academic Officer
• Mrs. Jennifer Latour, Chief of Staff
• Mrs. Sara Herzog, Chief Financial Officer
• Mr. Chip Filer, Vice President for Facilities and Campus Operations
• Mr. Tom Kramer, Executive Director of the Wason Center and Legislative Liaison
• Mr. William Donaldson, Faculty Senate
• Other CNU faculty and staff members

The Honorable Ronald Tillett, Chair, called the meeting to order and welcomed everyone in attendance. He introduced Mr. Chip Filer, the new Vice President for Facilities and Campus Operations and also welcomed Mr. Zac Holmes, the new Director of Planning and Budget. Mr. Holmes has been working at the University as the Housing Director.

Approval of Minutes from the February 9, 2024 meeting

Chair Tillett asked for a motion to approve the minutes from the February 9, 2024 meeting and LTC (R) Boris Robinson made the motion for approval that was seconded by Mrs. Lindsey Carney Smith, with all in favor.

Chair Tillett reported the next two items on the agenda are for informational purposes only and the Statement of Revenues and Expenditures as of February 29, 2024 is on target with the budget. The SWaM report shows that the University has surpassed the State goal of 42%.

Chair Tillett introduced Jennifer Latour, Chief of Staff to provide the following report:

Capital Projects Update

Mrs. Jennifer Latour provided an update on the progress of the new Science and Engineering Research Center; elevator shafts and stairwells are now in place. There were necessary permit revisions with the Division of Engineering and Buildings which caused a month delay on construction. The contractor was able to make some changes to reduce the overall schedule impact. The New Administration Building opened and staff moved into it in November, the final certificate of occupancy has been received. The old Sun Trust building will be demolished in a few weeks and fencing will go up around the building soon to prepare for the demolition. The area will remain green space for the University. Replacement of the Plant Operations/Warehouse Building is underway, we have received detailed planning and have requested funds from Richmond. The RFP for Design Services has been sent out and proposals are due back by April 30th.

Additional Infrastructure Repairs and Improvements include:

• Ferguson Center Roof Replacement-reroof the old Ferguson High School sections of the building. Currently under review with the DEB.
• Ratcliffe High Roof Replacement-reroof the area consisting of the High Roof over the second floor and the Low Roof that surrounds it. Currently under review with the DEB.

Future Projects include:

• Lab/Classroom Fume Hood and Pressurization Valves/Controls- replacement of 77 obsolete fume hood air valves and controls and the corresponding 234 room air pressurization valves/controls which are critical to the safe operations of the building.
• ROTC/Military Science Building (Feasibility Study, Federal Earmark Request) - this project supports the replacement of the Military Sciences and ROTC building at 57 Moores Lane North. The existing facility is an aging two-story residence that does not adequately meet the academic, support, and access needs of the department, the cadets and their families. The new building will provide expanded classroom and office space, up to date technology, and essential storage and support facilities.

Chair Tillett thanked Mrs. Latour for her report and introduced Mrs. Sarah Herzog, Chief Financial Officer to provide the following report:

Legislative and Budget Update

Mrs. Herzog provided an update on the conference report with Governor proposed amendments utilizing the 2024-2026 Biennial Budget tracking sheet. Operating requests had been submitted and included student financial aid, funding for the Virginia Military Survivors Dependent education program, safety, security and compliance program, operations and maintenance for new facilities and increased utilities, pathways for VCCS students, technology and cybersecurity enhancements, student success programs, and community and cultural programs. Capital Outlay requests were included in the Governor’s budget. A request for $5 million dollars was made to replace Fume Hood and pressurization valves/controls in our Science Building. Christopher Newport University has received detailed planning funds for the new Plant Operations building and we are now asking for full funding to keep the project moving forward. There was a $3 million dollar ask for furniture, fixtures and equipment (FF&E) for the new Science building. The Maintenance Reserve budget was at $3.7 million and the Governor increased this to $5.4 million. Mrs. Herzog reviewed the detailed line items with the committee for the amendments made by the House and Senate Conference Committee and the Governor.

Chair Tillett thanked Mrs. Herzog for her report and introduced Mr. Tom Kramer, Executive Director of the Wason Center and Legislative Liaison to provide the following report:

Update on Relevant Higher Education Bills

Mr. Tom Kramer provided an update on the 2024 General Assembly Session relevant higher education bills and reported the Governor vetoed bill SB506 that provides that the governing board of each public institution of higher education shall have authority over employment of all legal counsel for the institution. The Governor also vetoed HB1/SB1 increasing minimum wage, and HB454 carrying a firearm or explosive material within Capital Square or building owned or leased by the Commonwealth; exemptions, public institutions of higher education; penalty and lastly he vetoed HB1467 Baccalaureate public institutions of higher education; boards of visitors; membership. The Governor did sign HB48 which prohibits any public institution of higher education from utilizing legacy admissions for any student applicant, HB1108/SB18 Virginia Public Procurement Act; construction management and design-build contracting, HB713 Institutions of higher education; campus safety and emergency preparedness training; first year completion and biennial review and also HB1505 Intercollegiate athletics; student-athletes; compensation for name, image or likeness. All bills signed by the Governor will be effective July 1, 2024 with the exception of HB1505 which will be effective November 15, 2024. One bill HB1066 Commission to Study the History of the Uprooting of Black Communities by Public Institutions of Higher Education in the Commonwealth established; report was left in Appropriations, passed as budget language

Chair Tillett thanked Mr. Kramer for keeping the committee and Board of Visitors updated. Mr. Kramer thanked Ms. Christy Morton and Chair Tillett for all of their help as well. Mr. Kramer continued with the following report:

Federal Earmarks

Mr. Kramer explained that Federal Earmarks for FY25 Congressionally Directed Spending requests are requests for items that would enhance a program. Christopher Newport University has put in three requests. The first is for an Innovation Hub in the amount of $1,860,000 and would allow Christopher Newport University to expand its innovation Hub through four new high-tech labs, each addressing aspects of workforce development, university industry partnerships, and life-long learning in areas of vital interest to the United States.

The second request is for an Institute for Executive Education in the amount of $310,000 and would allow Christopher Newport University to partner with the Peninsula Chamber of Commerce, the request provides seed money to launch a new Institute for Executive Education at the Luter School of Business. The Institute opens up our faculty’s strengths in family and entrepreneurial business, leadership and service to the larger Hampton Roads community while bringing external people and resources into a relationship with our programs and students.

The last request is to construct a New Reserve Officer Training Corps. Facility in the amount of $7,900,000. The current Military Sciences and ROTC programs are housed in an aging two-story residence. The proposed new facility will provide approximately 8,000 square feet of modern classroom, office, and storage space for the Military Science and ROTC programs.

Chair Tillett thanked Mr. Kramer for his report and re-introduced Mrs. Sarah Herzog to provide the following report:

FY 2024-25 Tuition and Fees

Mrs. Herzog reported on the Public Comment Session for Tuition and Fees and stated that legislation directed Boards of Visitors of Public Institutions to notice and present a Tuition and Fees Public comment session thirty days prior to board approval of raising tuition and fees. The university held a Public Comment Session for Tuition and Fees on April 3, 2024 in the Freeman Center, Room 202. There was no public comment offered at this session and there were no written comments submitted.

Mrs. Herzog explained to the committee that there are two major sources of operating revenue within the university’s budget stating that the largest portion is the General fund which is support from the state. She said that tuition alone represents about 25% of the budget and tuition and fees combined represent approximately 62%. She then went on to explain how tuition dollars are spent.

Mrs. Herzog explained that 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. Herzog said that the state requires a comprehensive six-year plan submission which includes a projection of tuition and fees. The plan was based on several factors including enrollment projections, spending initiatives and the assumption of no additional state funds being provided. Given these parameters, the University’s undergraduate tuition recommendation of a 2.9% increase or $287 was proposed for next academic year. This falls below the Six Year Plan projected increase of 5.0% or $490 as a result of maximizing efficiencies, implementing cost savings strategies and expected additional state general funds.

Resolution 9: FY 2024-25 Tuition and Fees and Room and Board

Mrs. Herzog presented Resolution 9 proposing the recommended Tuition and Fees and Room and Board increase of 2.0% effective with the fall 2024 academic term. The Resolution also reflects that authority be given to the President and the Chief Financial Officer to 1) establish course fees as needed to offset materials, supplies or additional course-specific costs not covered by general tuition and fees, and 2) establish special program fees for study abroad programs, online courses or programs, certificate or other professional programs. A motion was put forth by Mrs. Lindsey Carney Smith and was seconded by LTC (R) Boris Robinson with all in favor.

The Resolution moved to the full board for final approval.

Mrs. Lindsey Carney Smith commended Mrs. Herzog for all of her hard work.

There being no further discussion the meeting was adjourned at 9:39 a.m.