Board Packet

UNIVERSITY CORPORATION
AT MONTEREY BAY
100 Campus Center
Seaside, CA
93955-8001
831/582-3500
MEMORANDUM
TO:
Corporation Board of Directors
CC:
Kevin R. Saunders, Corporation Executive Director
Maria A.Y. Garcia
FROM:
Nancy S. Ayala
DATE:
19 March 2015
SUBJECT:
Agenda and Read-Ahead Materials
Attached please find the agenda and read-ahead materials for the Corporation Board of
Directors meeting on Thursday, 26 March 2015. The meeting will be in the conference room at
the Administration Building on the CSUMB campus starting at 8:30 a.m.
If you have any questions or concerns before the Board meeting, please feel free to contact me
at nayala@csumb.edu or (831) 582-3396.
UNIVERSITY CORPORATION
AT MONTEREY BAY
100 Campus Center
Seaside, CA
93955-9001
831/582-3500
Board of Directors Meeting
Thursday, 26 March 2015 8:30 a.m. – 10:30 a.m.
Administration Building
AGENDA
I.
Call to Order
E. Ochoa
II.
Approval of Minutes
Approval of 18 December 2014 meeting minutes
E. Ochoa
*2 min.
(Action: Discussion and motion to approve the minutes)
III.
*15 min.
Reports
A.
FY 2014/15 Q2 Financials
S. Baggett
(Report to the Board, no action required)
*15 min.
B.
External Funding Update – Sponsored Programs
C. Lopez
(Report to the Board, no action required)
*15 min.
C.
Corporate and Foundation Relations – University Development
C. Avila
(Report to the Board, no action required)
10 min.
D.
Investment Committee Report
B. Zappas
(Report to the Board, no action required)
15 min.
E.
Executive Director’s Report
K. Saunders
(Report to the Board, no action required)
IV.
Unfinished Business
*10 min. Post-Retirement Employee Housing Rental Policy
K. Saunders
(Action: Discussion and motion to adopt the new policy)
V.
15 min.
New Business
A.
Schoonover Rental Rate
K. Saunders
(Action: Discussion and motion)
15 min.
B.
University House Repairs
K. Saunders
(Action: Discussion and motion to approve the repairs)
VI.
Open Communications/Announcements
E. Ochoa
VII.
Adjournment
E. Ochoa
Note: In accordance with Education Code §89921 and Foundation Bylaws Article VI §5, this agenda provides notice of the
business to be transacted (i.e., topics for Board discussion). Action may be taken on any item on the agenda. The italicized
notations above are for guidance purposes only and the Board may take action on any item listed on the agenda, whether
action is specifically prescribed.
University Corporation at Monterey Bay
Board of Directors Meeting
Thursday, 18 December 2014
8:32 a.m. – 10:34 a.m.
Administration Building
100 Campus Center
Seaside, CA
Draft, Minutes
Board Members Present
Eduardo M. Ochoa, President
Chris Carpenter, Director
Kevin R. Saunders, Exec. Dir.
Robert C. Taylor, Esq. Director
Dr. Ronnie Higgs, Director
Bonnie D. Irwin, Director
Barbara Zappas, Director
Pat Tinsley-McGill, Director
Presenters
William Musselman, Director of Accounting
Sherry Baggett, Controller
Gehane Kiama, Director of Human Resources
Cindy Lopez, Director of Sponsored Programs Office
Jackie Wendland, Director of Corporation & Foundation Relations
Annette Thurman, Vice President of Operations, Northwest
Alliance Residential Company
I.
II.
III.
Members Absent
Larenz Tolson, Director
Staff Present
Nancy S. Ayala, Gov & Compl Mgr
Call to Order: A quorum being established, President Ochoa called the meeting to order
at 8:32 a.m.
Approval of Minutes: Moved by Director Robert C. Taylor and seconded to approve the
25 September 2014 meeting minutes as presented. With Director Pat Tinsley-McGill
abstaining, the motion carried.
Reports:
A. Auxiliary Audit Committee Report: Audit Committee Chair William Musselman
reported that the Audit Committee met on 12 November 2014 to review the KAZU
audited financial statements and the auxiliaries’ tax returns Form 990. KAZU is
required to file a report by 30 November of each year under the terms of the
broadcast license it holds with the Corporation for Public Broadcasting (CPB). Mr.
Musselman noted that CPB requires a schedule of functional expenses, which is
included in the supplemental section of the audit report. KAZU has had a deficit for
years and had been subsidized by the Corporation. The deficit has decreased from
$938K in the prior year to $834K in the current year. The auditors issued a clean
opinion on the KAZU financial statements. Mr. Musselman briefly reviewed the
auxiliaries 990’s. The next Audit Committee meeting will be in spring 2015 to discuss
the upcoming annual audit. President Ochoa asked about the Indirect Administrative
Support number that appears as both revenue and expense in the KAZU financial
statements. Controller Sherry Baggett explained this figure is required by the CPB
and it is based on their formula, which uses a modified indirect cost rate applied to
the modified Total Expenses.
B. FY 2014/15 Q1 Financials: Ms. Baggett presented the first quarter financial report
ending on 30 September 2014. Total Assets have increased $3.4M from $114M to
$117M this fiscal year, primarily due to increases in receivables and prepaid
expenses. Total Liabilities have increased by $3.7M, from $71.3M to $75M primarily
due to an increase in unearned revenue, offset by a decrease in the noncurrent
capital lease obligation. Total Net Position has decreased by $335k this fiscal year
primarily due to the increase in net investment in capital assets and offset by the
decreases in unrestricted net position and pledges receivable. The Corporation’s
Total Net Position balance as of 30 September 2014 is $45.6M compared to $46M at
30 June 2014. Total Operating Revenues are ahead of budget by $104K due mostly
to homeowner sales (a non-budgeted item). Total Operating Expenses are below
Page 1 of 3
IV.
V.
budget by $1.2M; as a result, the Operating income exceeded budget by $1.3M. Ms.
Baggett noted that staff will be performing further review into some of the variances
in the budget to actual comparisons.
C. External Funding Update - Sponsored Programs: Director of Sponsored Programs
Cindy Lopez presented the first quarter external funding report. The goal for the
2014/15 fiscal year is $12M. Through 30 September 2014, total awards are at $4
million, which is about $722K less than the same period prior year. The number of
awards is 21, two less than the same period prior year. There are 60 outstanding
proposals totaling $37 million.
D. Corporate and Foundation Relations University Development: Director of
Corporation & Foundation Relations Jaqueline Wendland reported on private
grants. Ms. Wendland reported that $897K in private grants has been awarded
so far this year. The annual goal for the whole department is $4.5M, which is set
by the Chancellor’s Office. 18 proposals are pending totaling $1.6M.
E. Investment Committee Report: Chair Barbara Zappas reported that the Investment
Committee met last on 21 November 2014. For the quarter ending 30 September
2014, the operating portfolio had a 1.2% loss, underperforming the policy index by
0.4%. Over a five-year period, the operating portfolio returned 7.1%, beating the
policy index by 0.9%. For the quarter ending 30 September 2014, the endowment
portfolio had a 2.4% loss, underperforming the policy index by 0.5%. Over a five-year
period, the endowment portfolio returned 9.7%, beating the policy index by 0.5%.
The Committee made some changes to the emerging market manager and PIMCO
total return and low duration. Chair Zappas announced that Foundation Board
member David Heuck will be recommended to serve on the Investment Committee at
the next Foundation Board meeting. The Committee will meet again on 20 February
2015.
F. Alliance Report: Vice President of Operations, Northwest Alliance Residential
Company Annette Thurman reported on the functions and upcoming new activities of
Alliance.
G. Executive Director’s Report: Executive Director Kevin Saunders reported on the
activities of the Corporation. Mr. Saunders announced that Corporation
administrative staff and possibly another department would be moving to the Ryan
Ranch Building once it is ready for occupancy. The second floor will be used for
seminars and possibly a professional development certification course. The
Steinbeck Center contract is still pending and awaiting approval from the Department
of Finance.
Unfinished Business: None
New Business:
A. Urban Streams Restoration Grant Resolution: Governance and Compliance Manager
Nancy S. Ayala presented the Urban Streams Restoration Grant resolution needed
for the Corporation and the City of Salinas to apply jointly for the Urban Streams
Restoration Grant. The resolution grants signature authority to the Director of the
Office of Sponsored Programs, or designee, to accept and sign any contract for
administration of the grant funds, and the Grants and Contracts Accounting
Manager, or designee, to act as Project Manager. Moved by Director Ronnie Higgs
and seconded to approve the Urban Streams Restoration Grant Resolution as
presented. With no further discussion, the motion carried.
B. Post-Retirement Employee Housing Rental Policy: Ms. Ayala presented the PostRetirement Employee Housing Rental Policy. The policy would allow CSUMB and
auxiliary employees to rent in Schoonover I upon retiring. The employee would have
had to been employed by the University and/or auxiliary for 20 years or more in order
Page 2 of 3
to be eligible to rent after retiring. Mr. Saunders requested feedback from the Board
on the proposed policy and explained that the policy is not ready. The Board
requested additional information and tabled this item for the next Board meeting.
Director Zappas left at 10:30 a.m.
C. Employee Handbook Update: Director of Human Resources Gehane Kiama
presented the revised Corporation Employee Handbook. The revisions made
coincide with legal requirements including the Affordable Care Act. The Corporation’s
labor attorney reviewed the proposed revisions. Moved by Director Bonnie D. Irwin
and seconded to approve the revised Employee Handbook as presented. With no
further discussion, the motion carried.
VI.
Open Communications/Announcements: None
VII.
Adjournment: With no further business to conduct and no objection, the meeting was
adjourned at 10:34 a.m.
Bonnie D. Irwin, Secretary
Date
Page 3 of 3
UNIVERSITY CORPORATION
AT MONTEREY BAY
100 Campus Center
Seaside, CA
93955-8001
831/582-3500
MEMORANDUM
TO:
University Corporation Board of Directors
FROM:
Sherry Baggett, Controller
DATE:
March 16, 2015
SUBJECT:
2nd Quarter 2014/15 Financial Highlights
Included in this financial report are the documents listed below:
• Statements of Net Position as of December 31, 2014
• Operating Statements of Revenues, Expenses, and Changes in Net Position (budget
comparison)
• Consolidated Statements of Revenues, Expenses, and Changes in Net Position (prior
year comparison)
Highlights on Statements of Net Position:
Total Assets have increased $8.9M this fiscal year, primarily due to increases in
receivables for housing and meal plans
 Total Liabilities have increased by $6.6M, primarily due to an increase in unearned
housing revenue, offset by a decrease in the noncurrent capital lease obligation
 Total Net Position has increased by $2.1M this fiscal year primarily due to the increase
in unrestricted net position
 The Corporation’s Total Net Position balance as of December 31, 2014 is $48.0M
compared to $45.9M at June 30, 2014

Highlights on Operating Statements of Revenues, Expenses and Changes in Net Position
(budget comparison):
•
•
•
Total Operating Revenues are ahead of budget by $2.2M due mostly to housing and
homeowner sales (a non-budgeted item)
Total Operating Expenses are below budget by $944k as seen on almost every line item
As a result of the above, the Operating income exceeded budget by $3.2M
Highlights on Consolidated Statements of Revenues, Expenses and Changes in Net
Position (prior year comparison):
 Overall, the Corporation’s Operating Income (including gifts and grants) is $3.1M
 Total Nonoperating Revenues and Expenses and Other Changes in Net Position which
includes gifts and donations, investment income, university support, market gains and
losses, and interest on capital-related debt yielded net expenses of $997k
 As a result of the above, the overall net impact is a increase in net position of $2.1M
this fiscal year
Budget
Operating Revenues:
Housing
Homeowner Sales
Sales and services of auxiliary enterprises
Conference services
Other operating revenues
$
Total Operating Revenues
Operating Expenses:
Salaries and benefits
Contract services
Utilities
Supplies and services
Travel
Scholarships
Professional services
Housing concessions
Repairs and maintenance
Equipment
Insurance
Depreciation and amortization
Cost of homeowner sales
Other operating expenses
Total Operating Expenses
Operating Income
$
13,412,938
373,738
300,000
387,366
Actuals
$
14,422,400
936,500
419,618
540,927
387,244
Variance
$
1,009,462
936,500
45,880
240,927
(122)
14,474,042
16,706,689
3,459,582
3,003,392
1,629,686
383,169
54,963
110,000
141,580
418,153
668,560
708,824
432,512
2,004,527
874,538
3,127,248
2,460,759
1,495,506
294,834
37,227
33,076
148,919
373,963
823,035
254,561
351,314
2,170,094
878,016
497,102
332,334
542,633
134,180
88,335
17,736
76,924
(7,339)
44,190
(154,475)
454,263
81,198
(165,567)
(878,016)
377,436
13,889,486
12,945,654
943,832
584,556
$
3,761,035
2,232,647
$
3,176,479
UNIVERSITY CORPORATION
AT MONTEREY BAY
100 Campus Center
Seaside, CA
93955-8001
831/582-3500
MEMORANDUM
TO:
Corporation Board of Directors
CC:
Kevin R. Saunders, Corporation Executive Director
FROM:
Maria A.Y. Garcia
DATE:
19 March 2015
SUBJECT:
Post-Retirement Employee Housing Rental Policy
The Post-Retirement Employee Housing Rental Policy sets guidelines for employees
retiring from CSUMB and/or its auxiliaries that may want to continue to rent housing in
Schoonover Park I.
At meeting on Thursday, 26 March 2015, the Board will be asked to adopt the new
policy. Corporation staff recommends the approval of the attached policy.
If you have any questions or concerns before the Board meeting, please contact Maria
A.Y. Garcia at (831) 582-5027or margarcia@csumb.edu
UNIVERSITY CORPORATION
AT
MONTEREY BAY
100 Campus Center
Seaside, CA
831/582-3500
93955-9001
411-001-A: POST-RETIREMENT EMPLOYEE HOUSING
RENTAL
I.
Policy
After retiring from California State University, Monterey Bay
(“CSUMB”) and/or its auxiliary organizations, an employee who is
already in faculty/staff housing and was continuously employed by
CSUMB and/or its auxiliary organizations for at least 20 years may
remain in faculty/staff housing subject to the guidelines below.
II.
Policy Guidelines
A.
The 20 years may be a combination of time worked at CSUMB
and its auxiliary organizations, but it must be continuous.
B.
An employee renting in a different part of Corporation housing
prior to retirement would have to move to a 2-bedroom unit in
Schoonover Park I after retirement if there is space available.
C.
Post-retirement rental will be subject to market rates and all
applicable rules and regulations that Corporation housing has in
place during the rental period.
III. Adoption and Review
A.
The Corporation’s Board of Directors has adopted this PostRetirement Employee Housing Rental Policy, on 26 March 2015.
B.
Barring any significant changes in California law, this PostRetirement Employee Housing Rental Policy will remain in effect
without Board review. Corporation staff, however, will review
this policy periodically to ensure its appropriateness.
C.
Any proposed amendments or variations of this policy would
require a majority approval by the Corporation Board of
Directors.
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Mar/2015