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Board of DirectorsJune 15 , 2005 - Summary
ITEM I APPROVAL OF THE UNIVERSITY CORPORATION ANNUAL MEETING/BOARD OF DIRECTORS MINUTES FOR DECEMBER 15, 2004
The minutes were approved.
ITEM II RECEIPT OF EXECUTIVE COMMITTEE MINUTES OF JANUARY 28, 2005 (Information only); RECEIPT OF MAY 20, 2005 EXECUTIVE COMMITTEE MINUTES AND CONSIDERATION OF CONSENT AGENDA
The minutes were received.
CONSENT AGENDA (MAY 20, 2005 EXECUTIVE COMMITTEE MEETING)
A. 2005/2006 Indirect Cost Fund Budget: That The University Corporation Board of Directors approve the 2005/2006 indirect cost fund budget as proposed;
B. Workers Compensation: That The University Corporation Board of Directors approve the resolution required to provide workers compensation insurance coverage to volunteers while working on behalf of the Corporation;
C. Audit: That The University Corporation Board of Directors accept the recommendation of the audit committee to engage Vicenti, Lloyd and Stutzman LLP to perform audit services for The University Corporation for the fiscal year ending June 30, 2005; that it be understood that services and fees are as follows: 1) audit of The University Corporation's financial statements for the year ending June 30, 2005, including the HUD investments, at a fee not to exceed $36,400, including out-of-pocket expenses; 2) audit and preparation of required reports in accordance with OMB Circular A-133 for the year ending June 30, 2005, at a fee not to exceed $4,200.
ITEM III DISCUSSION & ACTION ITEMS (MAY 20, 2005 EXECUTIVE COMMITTEE MEETING)
A. 2005/2006 Operating Budget (Executive Committee Item #4)
Current year projected net available to campus is $610,809. Significant factors impacting the 2005/2006 budget include a 3.5% salary increase, reduced audit fees, investment in the Public Safety Building; and the Exchange replacement project.
Bookstore surplus is $9,000 favorable to budget this year in spite of decreased commissions. The 2005/2006 budget anticipates less surplus due to increased online and peer-to-peer sales. Follett College Stores is implementing the ‘BookNow’ program, which identifies textbooks for specific courses and allows students to order textbooks as part of the online class registration process.
Foodservices had a positive year. The Sierra Center continued to grow. Subway showed a 100% increase over last spring. The new Pub and the Freudian Sip in the Bookstore opened. Freudian Sip also opened at Pierce College. A new ten-year contract was signed with Pepsi, which includes more University sponsorship money. Total sales grew 24%.
Real Estate experienced a greater loss than anticipated, due to turnover in College Court and the HUD homes, legal fees and costs of the Conejo Valley land purchase. The land was purchased through the Corporation’s real estate fund and is intended for the long-term use of the University. It is currently leased for agricultural purposes.
Licensing revenues increased this year due to the addition of cell site management and increased filming on campus. For the current year, the Licensing program provided the University with additional surplus of $100,000.
A decrease in Sponsored Programs is projected in 2005/2006 due to the elimination of some large programs and generally tighter research budgets.
RESOLVED: That The University Corporation Board of Directors approve the 2005/2006 operating budget as presented.
B. Exchange Replacement
The project has been value engineered and now includes a 4200 sq. ft. building housing a “convenience market” and small coffee house, with extensive outdoor, shaded seating under an arbor-style canopy. The project is too small to support debt service; use of reserves is proposed.
RESOLVED: That The University Corporation Board of Directors authorize the transfer of three-million-two-hundred-thousand dollars ($3,200,000) from the Undesignated General Reserve to the Planned Future Operations Reserve, toward the design, construction and equipment package for the Exchange replacement project.
Harvey and Harriet Bookstein Chair in Taxation: Corporation Director Harvey Bookstein has made a $1 million gift to support the first endowed chair in the College of Business and Economics, as well as the Bookstein Institute for Higher Education in Taxation.
Faculty/staff Housing: A needs assessment was completed and faculty/staff housing was included in the University master plan, completed over the last year. Faculty/staff housing is the University’s greatest priority for non-state funding, as it is critical to the University’s future success in attracting and retaining new hires. The North Campus-University Park Development Corporation recently approved funding of pre-construction activities. The Corporation will look at including the College Court units as part of the program.