BOARD OF GOVERNORS RETREAT AND MEETING CSU Mountain Campus, Hotchkiss Lodge Amended ...csusystem.edu/uploads/files/2016_06_22_21_39_20_JUNE 2016... · 2016-06-22 · BOARD OF GOVERNORS

BOARD OF GOVERNORS RETREAT AND MEETING

June 16-17, 2016

CSU Mountain Campus, Hotchkiss Lodge

Amended June 15, 2016

WEDNESDAY, June 15, 2016

Board of Governors Dinner (social event) 6:00 p.m.

THURSDAY, June 16, 2016

Board of Governors Breakfast (Dining Hall) 7:00 a.m. – 8:00 a.m.

COMMENCE RETREAT 8:30 a.m. – 3:00 p.m.

Welcome and Setting the Stage for the Day 8:30 a.m. – 9:00 a.m.

Review of FY16 – How Did We Do? 9:00 a.m. – 9:45 a.m.

Focus on the Financials 9:45 a.m. – 10:30 a.m.

Break (15 mins)

Public Policy Issues Impacting Higher Education 10:45 a.m. – 12:00 noon

Lunch (1 hour)

Public Policy Issues Impacting Higher Education, continued 1:00 p.m. – 1:45 p.m.

Weaving System Strategy, Budget/Financial Planning, and the Institutions’ 1:45 p.m. – 2:15 p.m.

Strategic Plans into Board’s Work Throughout the Year

Break (15 mins)

Pulling It All Together 2:30 p.m. – 3:00 p.m.

COMMENCE BOARD MEETING – CALL TO ORDER 3:00 p.m. – 4:30 p.m.

1. DISCUSSION OF RESERVES POLICY 3:00 p.m. – 3:30 p.m.

2. BOARD CHAIR’S AGENDA 3:30 p.m. – 3:35 p.m.

3. APPROVAL OF CONSENT AGENDA 3:35 p.m. – 3:40 p.m.

A. Colorado State University System

Minutes of the May 5, 2016 Board and Committee Meetings


4. EXECUTIVE SESSION 3:40 p.m. – 3:55 p.m.

1

5. REAL ESTATE/FACILITIES COMMITTEE (Executive Session) 3:55 p.m. – 4:00 p.m. Scott Johnson, Chair

6. EVALUATION COMMITTEE (Executive Session) 4:00 p.m. – 4:30 p.m.

Rico Munn, Chair

4:30 p.m.

Break for the Day

Dinner (social event) 5:30 p.m.

FRIDAY, June 17, 2016

Board of Governors Breakfast (Dining Hall) 7:00 a.m. – 8:00 a.m.

RECONVENE BOARD MEETING 9:30 a.m. – 9:40 a.m.

7. PUBLIC COMMENT 9:30 a.m. – 9:35 a.m.

8. BOARD RETREAT AND MEETING EVALUATION 9:35 a.m. – 9:40 a.m.

ADJOURNMENT 9:40 a.m.

Next Board of Governors Board Meeting: August 4-5, 2016 CSU-Pueblo

APPENDICES

I. Correspondence

2

Section 1

Reserves Policy

Discussion

3

Section 2 Board Chair’s Agenda

4

Oath of Office

New Advisory Members

Dr. David Volk, Faculty Representative, CSU-Pueblo

Andrea Buchmeir, Student Representative, CSU-Global Campus

Daniela Pineda Soraca, Student Representative, CSU

Antonio Huerta, Student Representative, CSU-Pueblo

5

FY 2016-17 Board of Governors Meeting Calendar Revised: June 2016

August 4-5, 2016: Colorado State University-Pueblo

October 6-7, 2016: Colorado State University, Fort Collins

December 8-9, 2016: Colorado State University System, Denver

February 1-3, 2017: Regular Meetings & Retreat, Colorado State University - Pueblo

May 2-3, 2017: Colorado State University, Fort Collins

June 15-16, 2017: Meeting/Retreat/Location TBD .

FY 2017-18 Board of Governors Meeting Calendar

August 1-2, 2017: CSU-Global, Greenwood Village

October 5-6, 2017: Colorado State University, Fort Collins

November 30 - December 1, 2017: Colorado State University System, Denver

February 7-9, 2017 Regular Meetings & Retreat, CSU-Pueblo

May 3-4, 2018: Colorado State University, Fort Collins

June 13-15, 2018: Meeting/Retreat/Location TBD

6

REPORT ITEM:

Colorado State University – Academic Calendar – Fall Semester 2016 through Summer

2022

EXPLANATION:

Presented by Rick Miranda, Provost/Executive Vice President.

The Colorado State University Academic Calendar, incorporating Sunday

Commencements as requested by President Tony Frank, and pending approval by the

Colorado State University Faculty Council, for Fall Semester 2016 through Summer

Semester 2022 is as follows:

7

ADDITIONS - UNDERLINED

ACADEMIC CALENDAR

FALL SEMESTER 2016 THROUGH SUMMER 2018

Fall Semester 2016 Aug. 18-19 Thursday-Friday Orientation

Aug. 22 Monday Classes Begin

Aug. 27 Friday End Restricted Drop*

Aug. 28 Sunday End Regular Add**

Sept. 5 Monday Holiday - University Offices Closed - No Classes

Sept. 7 Wednesday Registration Closes – last day for dropping courses

without record entry, changes in grade option, and

tuition and fee adjustment

Oct. 17 Monday End Course Withdrawal (“W”) Period

Nov. 19 Saturday Fall Recess Begins, No Classes Next Week

Nov. 24-25 Thursday-Friday Holiday – University Offices Closed - No Classes

Nov. 28 Monday Classes Resume

Dec. 9 Friday Last Day of Classes; University Withdrawal

Deadline

Dec. 12-16 Monday-Friday Final Examinations

Dec. 16-18 Friday-Sunday Commencement

Dec. 20 Tuesday Grades Due

Dec. 26-28 Monday-Wednesday Holiday – University Offices Closed

(79 Days, Including Final Examinations)

Spring Semester 2017 Jan. 2 Monday Holiday – University Offices Closed

Jan. 13-14 Thursday-Friday Orientation, Advising and Registration for New

Students

Jan. 16 Monday Holiday – University Offices Closed

Jan. 17 Tuesday Classes Begin

Jan. 20 Friday End Restricted Drop*

Jan. 22 Sunday End Regular Add**

Feb. 1 Wednesday Registration Closes –last day for dropping courses



Mar. 11 Saturday Spring Break Begins – No Classes Next Week

Mar. 20 Monday End Course Withdrawal (“W”) Period

Mar. 20 Monday Classes Resume

8

May 5 Friday Last Day of Classes; University Withdrawal

Deadline

May 8-12 Monday-Friday Final Examinations

May 12-14 Friday-Sunday Commencement

May 16 Tuesday Grades Due


* End Restricted Drop - Refers to course sections which may not be dropped after the first week

of the semester.

** End Regular Add - Refers to adding courses without instructor approval.

Summer Session 2017

May 15 Monday lst 4 Week and 12 Week Term Begins

May 29 Monday Holiday University Offices Closed - No Classes

Jun. 9 Friday 1st 4 Week Term Ends

Jun. 12 Monday 2nd 4 Week Term and 8 Week Terms Begin

Jun. 21 Wednesday Census

Jul. 4 Tuesday Holiday – University Offices Closed - No Classes

Jul. 7 Friday 2nd 4 Week Term Ends

Jul. 10 Monday 3rd 4 Week Term Begins

Aug. 4 Friday 8, 12 and 3rd 4 Week Terms End

Aug. 8 Tuesday Grades Due

SUMMER WITHDRAWAL PERIOD: Because Summer classes have different time periods, the

last day a student can withdraw from a course with “W” entered on the record is ten days into the

session for a four-week course, 20 days into the session for an eight week course, and 30 days

into the session for a 12 week course. If there are any questions, please consult the Registrar’s

office.



Aug. 25 Friday End Restricted Drop*

Aug. 27 Sunday End Regular Add**


Sept. 6 Wednesday Registration Closes –last day for dropping courses





Nov. 23-24 Thursday-Friday Holiday – University Offices Closed


9


Deadline




Dec. 25-27 Mon-Wed Holiday – University Offices Closed


Spring Semester 2018 Jan. 1 Monday Holiday – University Offices Closed

Jan. 12-13 Thursday-Friday Orientation, Advising & Registration for New

Students



Jan. 19 Friday End Restricted Drop*

Jan. 21 Sunday End Regular Add**

Jan. 31 Wednesday Registration Closes – last day for dropping courses







Deadline





* End Restricted Drop - Refers to course sections which may not be dropped after the first week

of the semester.

** End Regular Add - Refers to adding courses without instructor approval.

Summer Session 2018 May 14 Monday lst 4 Week and 12 Week Term Begins

May 28 Monday Holiday - University Offices Closed - No Classes


Jun. 11 Monday 2nd 4Week Term and 8 Week Terms Begin


Jul. 4 Wednesday Holiday – University Offices Closed - No Classes


10





last day a student can withdraw from a course with “W” entered on the record is 10 days into the

session for a four week course, 20 days into the session for an eight-week course, 30 days into

the session for a 12-week course. If there are any questions, please consult the Registrar’s office.

ACADEMIC CALENDAR




Aug. 24 Friday End Restricted Drop

Aug. 26 Sunday End Regular Add










Deadline






Spring Semester 2019 Jan. 1 Tuesday Holiday – University Offices Closed


Students



Jan. 25 Friday End Restricted Drop

Jan. 27 Sunday End Regular Add

11








Deadline





Summer Session 2019



June 14 Friday 1st 4 Week Term Ends

June 17 Monday 2nd 4 Week Term and 8 Week Terms Begin

June 26 Wednesday Census

July 4 Thursday Holiday – University Offices Closed - No Classes

July 12 Friday 2nd 4 Week Term Ends

July 15 Monday 3rd 4 Week Term Begins







office.




Sept. 1 Sunday End Regular Add





12




Dec. 2 Monday Classes Resume


Deadline




Dec. 25-27 Wed-Fri. Holiday – University Offices Closed


Spring Semester 2020 Jan. 1 Wednesday Holiday – University Offices Closed


Students





Feb. 5 Wednesday Registration Closes – last day for dropping courses







Deadline







June 12 Friday 1st 4 Week Term Ends

June 15 Monday 2nd 4Week Term and 8 Week Terms Begin

June 24 Wednesday Census

July 3 Friday Holiday – University Offices Closed - No Classes

July 10 Friday 2nd 4 Week Term Ends

13

July 13 Monday 3rd 4 Week Term Begins







ACADEMIC CALENDAR















Deadline






Spring Semester 2021 Jan. 1 Friday Holiday – University Offices Closed


Students





14




Feb. 11 Thursday Founder’s Day – CSU’s 151st birthday





Deadline





Summer Session 2021




Jun. 14 Monday 2nd 4 Week Term and 8 Week Terms Begin


Jul. 5 Monday Holiday – University Offices Closed - No Classes









office.









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Deadline




Dec. 22-24 Wednesday-Friday Holiday – University Offices Closed


Spring Semester 2022 Dec. 31 Friday Holiday – University Offices Closed


Students





Feb. 2 Wednesday Registration Closes – last day for dropping courses



Feb. 11 Friday Founder’s Day – CSU’s 152nd birthday





Deadline








Jun. 13 Monday 2nd 4Week Term and 8 Week Terms Begin


Jul. 4 Monday Holiday – University Offices Closed - No Classes

16









17

Section 3

Consent Agenda

Colorado State University System Minutes of the May 5, 2016 Board and Committee Meetings


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BOARD OF GOVERNORS OF THE

COLORADO STATE UNIVERSITY SYSTEM

BOARD OF GOVERNORS MEETING

Colorado State University, Fort Collins, Colorado

May 5, 2016

CALL TO ORDER

Chair Mosher called the meeting to order at 9:01 a.m.

ROLL

Governors present: William Mosher, Chair; D. Rico Munn, Vice Chair; Scott Johnson, Secretary; Nancy

Tuor, Treasurer; Dennis Flores; Mark Gustafson; Jane Robbe Rhodes; Dean Singleton; Robert Deemer,

Faculty Representative, CSU-Global Campus; Paul Doherty, Faculty Representative, CSU; Michael

Mincic, Faculty Representative, CSU-Pueblo; Megan Schulze, Student Representative, CSU-Global

Campus; Jason Sydoriak, Student Representative, CSU; Sarah Zarr, Student Representative, CSU-Pueblo

Administrators present: Tony Frank, Chancellor, CSU System, and President, CSU; Amy Parsons,

Executive Vice Chancellor, CSU System; Lesley Di Mare, President, CSU-Pueblo; Becky Takeda-Tinker,

President, CSU-Global Campus; Allison Horn, Director of Internal Auditing, CSU System; Lynn

Johnson, Chief Financial Officer, CSU System, and Vice President of Operations, CSU; Rick Miranda,

Chief Academic Officer, CSU System, and Provost and Executive Vice President, CSU; Michael Nosler,

General Counsel, CSU System

System Staff present: Adam Fedrid, IT Manager; Melanie Geary, Executive Assistant; Allen Sneesby,

IT Technician; Sharon Teufel, Executive Assistant to the General Counsel

Guests present: Jon Bellum, Provost, CSU-Global Campus; Andrea Buchmeier, CSU-Global Campus;

James Cooney, Vice Provost for International Affairs, CSU; Johnna Doyle, Deputy General Counsel,

CSU-Pueblo; Kathleen Henry, President/CEO, CSURF; Antonio Huerta, student, CSU-Pueblo; Anne

Hudgens, Executive Director, CSU Health Network; Blanche Hughes, Vice President of Student Affairs,

Nancy Hurt, Managing Director, CSURF; CSU; Jason Johnson, Deputy General Counsel, CSU; Rick

Kreminski, Provost, CSU-Pueblo; Cheryl Lovell; Daniela Pineda Soraca, CSU; Stephanie Quinn, CSU-

Global Campus; Karl Spiecker, Vice President, Finance and Administration, CSU-Pueblo; Louis

Swanson, Vice President for Engagement, CSU; Pamela Toney, Vice President of Student Operations,

CSU-Global Campus; Jason Warr, Vice President of Operations, CSU-Global Campus

Chair Mosher convened the meeting and General Counsel Nosler administered the oath of office to

Governor Singleton. General Counsel Nosler reminded the Board members to provide him with any

changes to their conflict of interest statements.

PUBLIC COMMENT

Chair Mosher confirmed that no one had signed-in for public comment.

BOARD CHAIR’S AGENDA

Committee Assignments: Chair Mosher indicated there were few changes in the assignments with the

committee chairs continuing in their current roles.

Excellence in Undergraduate Teaching Awards: Chair Mosher explained the purpose of the faculty

teaching awards with the CSU and CSU-Global Campus awards to be presented at the May meeting and

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the CSU-Pueblo award at the August meeting. Dr. Miranda introduced Dr. Lori Peak, the 2016 CSU

recipient, and Chair Mosher presented the award. Dr. Peak thanked the Board for the award and

expressed her joy in teaching. Dr. Bellum introduced Ms. Debra Martinez, the 2016 CSU-Global Campus

recipient, and Chair Mosher presented the award. Ms. Martinez expressed her appreciation for the honor

and the opportunity to teach at CSU-Global Campus.

Chair Mosher recognized Governor Doherty and Dr. Kate Huyvaert from the Warner College of Natural

Resources who received CSU International Programs Distinguished Service Award for research and

student coursework development at the CSU Todos Santos Center.

AUDIT AND FINANCE COMMITTEE

Committee Chair Tuor convened the committee meeting and asked Ms. Horn for her report.

Status of FY 2015-16 Audit Plan: Ms. Horn reported there are currently seven audits in progress. The

executive summaries for the four audit reports issued since the last meeting were included in the meeting

book and there were no red flags to report.

Status of Past Due Recommendations: There were four past due recommendations on the report, but two

were implemented by the target dates shown.

Approval of FY 2016-17 Audit Plan: Ms. Horn explained the risk assessment process undertaken to

establish the audit plan for the next fiscal year with input solicited from the campus presidents and other

management. There are five carryforward projects listed that will probably be completed by the end of

August 2016. The CSU Athletics compliance review audit for FY 2015-16 will begin in June and

accordingly another compliance review was not scheduled for next year.

Ms. Horn explained how an initial high risk assessment can be mitigated to a residual medium risk level

through the audit process when issues, such as operational controls and effective processes, are evaluated.

In response to a question about expected objectives for the proposed audit of CSU Human Resources, Ms.

Horn explained the CSU Executive Director of Human Resources had suggested a review of hiring

processes of non-student hourly employees. As a review of hiring and selection processes for non-student

hourly employees was completed fairly recently, the proposal is an audit of hiring and selection processes

for all employee categories.

Committee Chair Tuor asked for a motion to approve the FY 2016-17 Audit Plan. Motion/Action:

Governor Flores moved to approve; Governor Gustafson seconded; and the motion carried unanimously.

Committee Chair Tuor then asked Ms. Johnson to report on the finance items.

Third Quarter FY 2016 Financial Statements: Ms. Johnson indicated there were no significant changes to

report.

Approval of FY 2017 Incremental E&G Budgets: Ms. Johnson explained how the Board is required by

statute to annually set the amount of tuition and to approve technology fees and course fees. Historically

the Board has also approved the E&G operating budget, capital construction, and housing and dining

rates. For the FY 2017, overall increases in resources to be deployed for the CSU System in the E&G

budgets are expected to total $52 million as follows: $30 million – CSU; $1.2 million – CSU-Pueblo; $20

million – CSU-Global Campus; and $320,500 – CSU System Office. A summary and numerous

schedules on enrollment, tuition and course fees, differential tuition, housing costs and other areas were

provided for each of the E&G budgets.

Dr. Frank commented on how nationally state support for public research institutions has declined and has

created pressures in balancing tuition increases to maintain quality with financial aid investments and

20

salary competitiveness while maintaining access. Colorado ranks very low in terms of state support per

student. Dr. Frank remarked on the year-long budget process that was undertaken beginning in August

2015 and acknowledged the work of the campus and System leadership to find that balance.

Colorado State University: Ms. Johnson reported the proposed tuition increases are as follows: 5%

resident undergraduate; 4% non-resident undergraduate; 3% resident graduate and 7% increase for

Professional Veterinary Medicine (PVM); and 4% non-resident graduate with 2% for PVM. Special

course fees are reviewed annually through a specific committee and changes include new fees as well as

discontinued fees.

In response to questions, Dr. Frank explained the non-resident tuition rate is largely linked to the market.

The resident rate is slightly below the average of peers and the non-resident tuition is slightly higher than

the mean of peers. Ms. Johnson added that the variance from the mean is largely attributable to housing

costs with Fort Collins’ costs higher than some peer locations. Differential tuition is assessed on whether

a program is high cost or there is a high demand, and then the majority of the associated revenue is

directed to the college generating the coursework to provide necessary resources.

Ms. Johnson reviewed the CSU incremental E&G budget broken down into three categories of new

resources. Through the legislative process, the anticipated reduction in state support for CSU was

decreased from $3.8 million as previously forecasted to $142,000. Dr. Frank noted there were some state

higher education institutions that had major fluctuations either plus or minus based on the funding model.

The Joint Budget Committee rejected the new funding model developed by the CCHE and brought

forward by the DHE, and accepted the JBC analyst’s model that was developed without input from DHE.

Ms. Johnson explained the impact of the changes in state funding, as discussed above, is reflected in a

reduction to the internal reallocation line item and the addition of the fringe benefit enhancement for the

defined contribution plan that was increased by .5% to 11.5%. Assuming the structure remains the same

next year, the university will be able to achieve the 12% target. The other change from the previous draft

budget is the addition of $2 million for university programs and the deferred maintenance reserve.

Historical comparative schedules were provided on tuition rate increases, differential tuition rates, tuition

and fees, and cost of attendance. The combined proposed tuition and fee increase for resident

undergraduates is 4.7% and the cost of attendance increase is 3.8%, which are the lowest increases in the

last five years.

Colorado State University-Pueblo: Mr. Spiecker explained the conservative incremental E&G budget is

built on the assumptions of a 6% tuition increase in all categories; a 6% increase in mandatory student

fees to $75 per credit hour; elimination of tuition discounts for more than 12 credit hours; and the

calculation of a 4.7% decline in the fall student census due to a decline in the larger graduating classes

and no growth in freshmen or transfers. To-date, however, freshmen applications, admissions and

deposits have actually increased for the upcoming fall. Detailed schedules were provided in the

appendices. With a 2.5% increase in housing, 3% increase in the dining plan, and the tuition increase, the

overall cost of attendance increase is 4.9%.

Mr. Spiecker reported the base budget assumptions include a 1% raise for faculty and administrative

professional staff that is contingent upon fall revenue exceeding projections. Other adjustments include

addressing the $116,000 current mid-year shortfall and implementation of revised FLSA rules. Dr.

Kreminski explained how the 4.7% decline in enrollment was calculated on retention rates; increases for

incoming freshmen and new transfers for fall 2016 are not included in the calculation. In response to

questions, Dr. Di Mare clarified that a one-time, non-base raise was given this past year and 2012 was the

last time a base raise was given to faculty and administrative professional staff.

21

CSU-Global Campus: Mr. Warr reported there will be no increase in tuition rates or fees for the coming

year and the base assumptions in the budget include 9,600 new students and a 75% retention rate for

current students. New expenses include new initiatives to attract new students, student support and

outreach, quality initiatives, academic support, and technology. Instructional costs are basically formulaic

and allow for predicting costs for the enrollment growth. The net revenue growth is projected to be

$9,895,371, and revenue and expenses will continue to be monitored for the current fiscal year.

When asked about the new students, Dr. Takeda-Tinker commented on how CSU-Global Campus has not

seen a slowdown in leads or changes in conversion rates and is also attracting more traditional students.

There are also shifts in the market place that have been anticipated and acquisition costs have not

increased to the level expected several years ago. Through branding and student behavior, CSU-Global

Campus continues to be competitive and an industry leader.

When asked about incentivizing and discounts, Dr. Takeda-Tinker explained how tests have been run on

reducing the rate for specific populations and by providing scholarships. Strategies for moving students

forward to graduation will continue to be evaluated. The average age for the student population is 35 and

the average time for undergraduate degree completion is 2 years, 7 months.

CSU System: Ms. Johnson reported the majority of the increase in expenditures are investments in new

personnel that include the Treasurer position, an advancement individual to raise funds for partnerships

with the National Western Center (NWC) and other activities associated with strategic initiatives, and a

research associate for the Office of General Counsel. There are also additional costs to support the

strategic initiatives such as the NWC and engagement with the Denver Broncos and the Boys and Girls

Club.

When asked about enrollment assumptions at CSU, Dr. Frank responded flat enrollment is utilized in the

budget calculations. Any unbudgeted revenue from enrollment growth is then utilized the following year

as one-time revenue towards expenditures such as deferred maintenance. At the October meeting when

the fall census has passed, an enrollment report is submitted to the DHE and will also be provided to the

Board.

Committee Chair Tuor asked for a motion to approve the FY 2016-17 E&G operational budget resolution.

Motion/Action: Governor Johnson made the motion; Governor Singleton seconded; and the motion

carried unanimously. Chair Mosher noted that the budget discussions at every meeting beginning in

August and the uniformity of the presentations have worked well. A brief discussion will be held at the

upcoming June retreat to examine whether the process can be improved.

Adoption of the FY 2018 Combined Campuses Capital Construction Priority List and Amended Two-Year

Cash List: Ms. Johnson explained that CSU was the most recent recipient of state funding for the

chemistry building. She reviewed the projects on the capital construction priority list for CSU and CSU-

Pueblo, and the four projects on the two-year cash list for CSU. Committee Tuor read the matter for

action and asked for a motion to approve. Motion/Action: Governor Gustafson made the motion;

Governor Robbe Rhodes seconded; and the motion carried unanimously.

The meeting then recessed for a break at 10:50 a.m. and reconvened at 11:02 a.m.

Approval of the Revised CSUS Board Reserve Policy 205: Dr. Frank provided historical context on the

development of the formal policy with CSU and CSU-Pueblo maintaining distinct finances and reserves,

and the creation of CSU-Global Campus that does not receive state support. With the volatility of the

online market and based upon the recommendation of consultants, industry best practice would be to

maintain a 250-day cash-on-hand (DCOH) reserve for CSU-Global Campus going forward, based on the

approved FY 2017 budget. Secondly, the revised policy provides for a 10% initial unrestricted

institutional reserve for the campuses. And thirdly, the consolidated financial statements in the past have

22

reflected Board reserves that were funds residing within the campuses. The revised policy would create

distinct Board reserves from excess campus reserves to provide support to the System’s institutions that

would only be accessible through Board action.

Ms. Johnson explained the funds could be invested and reside in specific, segregated accounts within each

institution and designated as a Board reserve. The details still need to be finalized and the intent is not to

impact the institutions’ financial statements. A schedule will be regularly provided to the Board to enable

decisions on the resources. Committee Chair Tuor noted that general parameters and criteria will be

established for the investments and disposition of the funds.

Ms. Johnson explained in detail the methodology for the CSU reserves report developed on the basis of

the FY15 financial results, noting where the 10% campus reserves would be applied. Dr. Frank clarified

the report is a model to be used going forward should the policy be approved and recommended the

reserve policy be suspended for CSU-Pueblo until the institution is in a positive financial position.

In response to questions, Dr. Frank explained the rationalization for the CSU-Global Campus 250 DCOH

is the institution enrolls students in eight-week terms unlike the other two campuses that have semester

enrollments, and is in a volatile market. Dr. Takeda-Tinker added CSU-Global Campus relies on its own

ability to generate revenue because the institution does not receive state funding and, based on the

statutory mission, cannot fundraise.

Ms. Johnson reviewed the CSU-Global Campus reserve schedule based on the FY 2015 financial results

that include GASB 68 and GASB 31 adjustments. She then explained the DCOH calculation based on the

approved FY16 approved expenditures and the unrestricted reserve calculation for going forward based

on the approved FY17 budget. Ms. Johnson pointed out that the calculations in the report were based on

the FY15 results to illustrate the potential amounts when the issue is revisited next year.

Committee Chair Tuor commented there were basically two issues: a policy that provides structure for

defining a reserve fund and the mathematical model for building the reserve fund to meet the Board’s

fiscal responsibility. Discussion followed on an appropriate reserve level to maintain and public

perception of building reserves while tuition costs have risen.

Committee Chair Tuor reviewed the definitions and procedures in the policy and reiterated that the

expenditures from the reserves must be made in consultation with the Chancellor and approved by Board

action. Dr. Frank underlined that the reserves will be developed after the campuses, specifically for CSU-

Global Campus, have directed their budgets for growth, and there is no intent to restrict that growth. Dr.

Takeda-Tinker concurred and expressed confidence in CSU-Global Campus’ ability to execute both

financially and in terms of student success.

Chair Mosher acknowledged the work in developing the policy and the financial model that reflect a

positive direction for the System and noted the next step is to develop a Board policy for institutional

investment. Dr. Frank indicated the Board can expect the reserve reports annually at the May meeting.

Motion/Action: Chair Mosher moved to approve the revised reserve policy. Governor Flores seconded

and the motion carried unanimously.

Dr. Takeda-Tinker shared modeling calculations from the consultants based on retention and noted the

potential for a negative impact if there was a 25% decline in retention. CSU-Global Campus is

anticipating a first to third year retention rate of 83%-85% at the close of the current fiscal year.

CSU-Pueblo Energy Performance Contracting Presentation: Ms. Johnson explained that, should the

Board be supportive of the proposed energy performance contracting concept and once the related energy

audit work was complete, the Board would be presented with an action item relating to the financing of

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the projects at CSU-Pueblo. There are costs associated with the audit that would be funded through an

appropriate resource and then reimbursed through financing at a later date.

Mr. Spiecker commented on the opportunity to enable CSU-Pueblo to invest in the campus and reviewed

the current mix of new and old construction on campus with varying degrees of energy efficiency. While

a list of prequalified energy service companies is available through the Governor’s Office to expedite the

process, CSU-Pueblo issued an RFP for a competitive process. Johnson Controls has been selected and

has visited the campus; however, no contract has yet been signed with Johnson Controls to ensure the

Board supports moving forward with the energy audit.

Depending on which buildings are audited, the cost for the audit is estimated to be between $250,000 and

$300,000. CSU-Pueblo will work collaboratively with the CSU System Office to develop a package of

recommendations to present to the Board in August or October, and then a report on the audit results

would be presented at a subsequent meeting.

Ms. Johnson clarified that Johnson Controls would complete the audit and then, based on the results, the

intent is to lock Johnson Controls into a contract for specific projects. The savings generated from energy

consumption would cover the debt service to fund the projects with the caveat that significant increases in

commodities could erode the amount of savings. There will be a focus on projects with the most potential

to not only meet but exceed debt service.

Committee Chair Tuor indicated the approach is a widely used model. Governor Schulze added that,

depending on the square footage, the audit costs are within a normal price range and recommended not

necessarily excluding the newer buildings. There was a general consensus by the Board to move forward

with the energy audit and the understanding that not all project recommendations have to be accepted.

CSU Reimbursement Resolutions: Ms. Johnson explained there are two separate resolutions. The first

resolution pertains to capital expenditures for CSU projects related to the NWC that will be reimbursed

through certificates of participation the state is going to issue. The second resolution relates to

establishing the Board’s intent to reimburse capital expenditures for controlled/deferred infrastructure

projects at CSU-Pueblo and several CSU projects to be presented in a financing package later this year.

Committee Chair Tuor asked for a motion to approve the reimbursement resolution relative to the capital

expenditures for the NWC and CSU. Motion/Action: Governor Robbe Rhodes moved to approve;

Governor Flores seconded; and the motion carried unanimously. Committee Chair Tuor asked for a

motion to approve the second reimbursement resolution for capital expenditures for specific projects at

CSU-Pueblo and CSU. Motion/Action: Governor Gustafson moved to approve; Governor Robbe Rhodes

seconded; and the motion carried unanimously.

Treasury Update: Ms. Johnson reported the search committee completed five video interviews with one

remaining and will select three to four candidates for on-campus face-to-face interviews. She noted

Governor Zimlich has expressed interest in participating in the interviews and invited the other Board

members to participate. The expectation is to have a new Treasurer on board by July 1st.

Chair Mosher then provided a brief overview of the “100 Years of Shared Governance” luncheon to be

held with representatives from the various campus constituencies and the Board meeting recessed for

lunch at 12:05 p.m.

BOARD MEETING

Chair Mosher reconvened the meeting at 1:09 p.m. Dr. Cooney provided an overview of the presentation

by four CSU international students that would occur at breakfast the next day.

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Chair Mosher explained the agenda was being adjusted because Governors Schulze and Zarr would not be

in attendance the next day.

CSU-GLOBAL CAMPUS REPORT

Student Representative: Governor Schulze explained she would be participating in a STEM event for

1,000 girls from Denver public middle schools to be held at the Colorado Convention Center. She

expressed appreciation for the opportunity to be the student speaker at the June 4th commencement and

invited the Board to attend. Governor Schulze reported on her participation in the HLC site visit and the

recent Accreditation Council for Business Schools and Programs site visit. She then introduced Andrea

Buchmeier, the incoming student representative. Chair Mosher thanked Governor Schulze for her service.

CSU-PUEBLO CAMPUS REPORT

Student Representative: Governor Zarr explained she had to return to campus to participate in the Senior

Night for the President’s Leadership Program, and then the next day there were graduation rehearsals and

a graduate walk at an elementary school to inspire the children to attend college. She thanked the Board

for the inclusion of students and for supporting CSU-Pueblo. Governor Zarr reviewed accomplishments

listed in her written report that include the topping ceremony for the Occhiato University Center; the new

fire pit, swings and other residence hall improvements; a new partnership with the Pueblo Zoo; a

successful Fiesta with Faculty event; and the addition of more students to the Student Fee Governing

Board. She then introduced Antonio Huerta, the incoming student representative. Chair Mosher thanked

Governor Zarr for her service on the Board.

ACADEMIC AND STUDENT AFFAIRS COMMITTEE

Governor Robbe Rhodes convened the meeting and asked Dr. Miranda to report.

CSU Faculty Manual Change – Section E.2.1.5: Dr. Miranda explained there are three faculty categories

that are not on the tenure track – temporary, special and senior teaching appointments – with an

increasing level of responsibility and seniority at the institution. Recent policy has been to switch

temporary faculty who are repeatedly employed by the institution to special faculty status. The

recommended revision is to clarify that temporary faculty assignments of less than 50% remain temporary

and recurring consecutive temporary appointments of more than 50% are special appointments. Approval

of the revisions will be on the consent agenda.

Emeritus Rank Designations Approved for AY 2015-16: Dr. Miranda explained approval of emeritus

faculty designation has been delegated to the campus presidents with regular reports to the Board. He

highlighted several faculty members in the report for Colorado State University. A report with two

emeritus rank designations at CSU-Pueblo was also provided.

Sabbatical Revision Summary for AY 2015-16: Dr. Miranda reported the authority to grant or revise

sabbatical leaves was delegated to the campus presidents with regular reports to the Board. The report

provided for Colorado State University includes revisions for sabbatical leaves previously granted that

were either revised or cancelled.

Posthumous Degrees Awarded for AY 2015-16: Dr. Miranda explained the ability to grant posthumous

degrees along with other degrees was delegated to the campus presidents with regular reports to the

Board. Each campus has a posthumous degree policy for students who pass away unexpectedly,

essentially in the last semester of their degree programs. Colorado State University and CSU-Global

Campus each awarded one posthumous degree in the current academic year.

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CSU-Pueblo Accreditation Schedule for AY 2016-17: Dr. Miranda reported there are no programs

scheduled for specialized accreditation by professional societies or other bodies in the coming year. Each

campus is accredited by the Higher Learning Commission (HLC) every ten years with the next HLC site

visit for CSU-Pueblo scheduled for February 2017.

CSU Master of Finance Degree Program: Dr. Miranda recounted the previous change for the M.S. in

Business Administration with a Specialization in Accounting (Plan B) to a Master of Accounting (Plan

C). The difference between a Plan B and Plan C program is the Plan B requires a project whereas the Plan

C is coursework only. Similarly, there is a M.S. in Business Administration with a Specialization in

Financial Risk Management. The proposed new Master of Finance (Plan C) degree program changes the

name to reflect the industry standard and changes the character of the master’s degree from a Plan B to a

Plan C with some minor adjustments in the curriculum.

While the rationale for the degree program alludes to the ability for the department to bring the program

online more easily, there are no current plans to bring the program online nor is the approval for an online

degree. CSU-Global Campus currently has an online Master of Finance. Should CSU in the future move

towards an online degree, there will be coordination with CSU-Global Campus. The approval of the new

Master of Finance degree program will be on the consent agenda.

CSU Graduate Certificates: With the authority granted this past year through the CCHE and DHE, CSU

now has the ability to award graduate certificates that, due to accreditation requirements, must be

approved by the Board. The construct is the graduate certificate should be a coherent set of courses that

comprise between nine and fifteen credits in a focused area. Dr. Miranda reviewed the seven graduate

certificates that were being presented for approval on the consent agenda.

You@CSU Presentation: Committee Chair Robbe Rhodes commented positively on the You@CSU

rollout to parents. Dr. Miranda introduced Dr. Hughes, Vice President for Student Affairs, who explained

how the university continues to expand its efforts to meet the mental health needs of students. You@CSU

was developed through a campus collaboration with an alum who assisted with the technology. The

program was launched online in February and has generated positive feedback from students. Dr. Hughes

described how the CSU Health Network was an integrated unit that includes the counseling center, the

health center and health education programs, and then introduced Ms. Hudgens, the Executive Director

for the CSU Health Network.

Ms. Hudgens explained how she met with Joe Conrad, a CSU alum, who designed a program focused on

mainly middle-aged men prone to suicide that he thought could be used at CSU as a suicide prevention

tool. Focus groups conducted with students indicated that they liked the idea of an online tool, but did not

like that specific program. Efforts were refocused and resulted in the creation of You@CSU that was

expanded to a broader scope for student success.

Ms. Hudgens explained how the online tool works with a dashboard with three categories: Succeed,

focused on academic career; Thrive, focused on mental health and stress management; and Matter,

focused on involvement and finding meaning in life. Through the Thrive portal, students can complete

confidential and anonymous assessments, reality checks, and customized cards including a “Need Help

Now” card. Information and links to campus resources are provided on the site.

Of the 1,500 students in the sample size for the eight-week pilot conducted in summer and fall 2015, there

were 1,000 unique visitors who spent an average of six minutes on the site. An evaluation survey of 200

pilot users indicated that 49% completed profiles and 85% found the content useful. Google analytics

from April 2016 indicate the online tool continues to show positive results. Ms. Hudgens noted that 500

new students logged into the site during the past week seeking stress management assistance.

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REAL ESTATE/FACILITIES COMMITTEE

Committee Chair Johnson convened the committee meeting and noted there were two action items to be

presented.

Grant of Expanded Public Right-of-Way to City of Fort Collins at Prospect Road and Center Avenue:

Dr. Frank indicated the action item presented in the meeting materials includes a diagram for the

underpass at this intersection. The series of projects in the IGA with the City of Fort Collins includes

projects that are not stadium-related and are for general campus upkeep. The underpass is such a project

and is related to safety issues. Committee Chair Johnson asked for a motion to approve the resolution.

Motion/Action: Governor Tuor moved; Governor Robbe Rhodes seconded; and the motion carried

unanimously.

CSU Water Resources Center Program Plan: Governor Gustafson recused himself from the discussion

due to his capacity on the National Western Board. Ms. Parsons recounted how the state approved

funding for the project with the passage of HB1344 that includes $250 million in funding through state

certificates of participation for CSU buildings associated with the National Western Center (NWC). The

Water Resources Center is anticipated to be the first CSU project on the site with a 2019 construction

schedule.

CSU has worked with Denver Water, who will be a major partner in the Water Resources Center, to

design the program plan. There have been extensive outreach sessions both on the campus and with over

50 Denver area water stakeholders. Dr. Frank has executed an MOU for the partnership with Denver

Water, and the City and County of Denver. A meeting was held with the CSU-Pueblo leadership team and

faculty, and a workshop will be held during the summer to determine how the faculty can participate in

the project. With a unique riverside location, the project is anticipated to be a convening place for rural,

urban and global water interests. The complete program plan is available on the CSU website.

Chair Mosher commented on the expansion opportunities for the project that could be an icon for water in

the West. Committee Chair Johnson asked for a motion to approve the program plan. Motion/Action:

Governor Tuor moved to approve; Governor Flores seconded; and the motion carried unanimously.

Chair Mosher noted there were additional action items to be discussed in the executive session with action

to be taken the next day in public session.

EXECUTIVE SESSION

Chair Mosher asked for a motion to convene in the executive session for the Real Estate/Facilities and

Evaluation committees and to receive the litigation report. The Evaluation Committee is composed of the

nine voting members and the advisory members would be excused for that portion of the executive

session. Motion/Action: Governor Tuor made the motion; Governor Singleton seconded; and the motion

carried unanimously.

General Counsel Nosler read the meeting into executive session for the purposes of discussing and

evaluating public officials and professional staff employees of the Board; discussions related to the

purchase or sale of property; consideration of nominations for naming of any building; to receive the

litigation report from General Counsel; and to receive legal advice, all confidential as set forth in the

meeting notice. The meeting convened in executive session at 2:01 p.m. and then adjourned for the day

after the executive session.

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BOARD OF GOVERNORS OF THE

COLORADO STATE UNIVERSITY SYSTEM

BOARD OF GOVERNORS MEETING

Colorado State University, Fort Collins, Colorado

May 6, 2016

CALL TO ORDER

Chair Mosher called the meeting to order at 8:59 a.m.

ROLL

Governors present: William Mosher, Chair; D. Rico Munn, Vice Chair; Scott Johnson, Secretary; Nancy

Tuor, Treasurer; Dennis Flores; Jane Robbe Rhodes; Dean Singleton; Robert Deemer, Faculty

Representative, CSU-Global Campus; Paul Doherty, Faculty Representative, CSU; Michael Mincic,

Faculty Representative, CSU-Pueblo; Megan Schulze, Student Representative, CSU-Global Campus;

Jason Sydoriak, Student Representative, CSU; Sarah Zarr, Student Representative, CSU-Pueblo

Administrators present: Tony Frank, Chancellor, CSU System, and President, CSU; Amy Parsons,

Executive Vice Chancellor, CSU System; Lesley Di Mare, President, CSU-Pueblo; Becky Takeda-Tinker,

President, CSU-Global Campus; Allison Horn, Director of Internal Auditing, CSU System; Lynn

Johnson, Chief Financial Officer, CSU System, and Vice President of Operations, CSU; Rick Miranda,

Chief Academic Officer, CSU System, and Provost and Executive Vice President, CSU; Michael Nosler,

General Counsel, CSU System

System Staff present: Adam Fedrid, IT Manager; Melanie Geary, Executive Assistant; Allen Sneesby,

IT Technician; Sharon Teufel, Executive Assistant to the General Counsel

Guests present: Brett Anderson, Vice President for University Advancement, CSU; Mirna Ayshoa, CSU;

Andrea Buchmeier, CSU-Global Campus; James Cooney, Vice Provost for International Affairs, CSU;

Johnna Doyle, Deputy General Counsel, CSU-Pueblo; Paul Evangelista, Natural Resource Ecology

Laboratory, CSU; Antonio Huerta, CSU-Pueblo; Blanche Hughes, Vice President of Student Affairs,

CSU; Jason Johnson, Deputy General Counsel, CSU; Min Kim, CSU; Rick Kreminski, Provost, CSU-

Pueblo; Cheryl Lovell; Daniela Pineda Soraca, CSU; Stephanie Quinn, CSU-Global Campus; Kathay

Rennels, Vice President for Engagement, CSU; Karl Spiecker, Vice President, Finance and

Administration, CSU-Pueblo; Nancy Sturtevant, International Programs, CSU; Robert Sturtevant, Soil

and Crop Sciences, CSU; Louis Swanson, Vice President for Engagement, CSU; Chelsea Tan, CSU;

Pamela Toney, Vice President of Student Operations, CSU-Global Campus; Wenjim Wang, CSU

After a breakfast presentation on the educational experiences of four CSU international students, Chair

Mosher reconvened the business meeting and asked Ms. Parsons to begin the strategic mapping update.

STRATEGIC MAPPING

Talent Market: Ms. Parsons recounted that the talent market was a topic identified at last year’s June

retreat as a challenge for higher education institutions. Data on recruitment, retention and development of

high quality staff was gathered from each of the three CSU System campuses for the presentation.

Personnel costs are the single largest expenditures for each of the campuses.

Dr. Miranda commented on how the university’s success is dependent on attracting, retaining and

supporting high quality faculty and staff. The presentation is focused on faculty who have similar

responsibilities at each of the three institutions, whereas staff responsibilities vary widely, and the faculty

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data on hiring and search processes is more readily available. Faculty are the core of the university with

the academic interaction and curricular design, and faculty have a primacy in shared governance.

Dr. Miranda reviewed the major issues for hiring and supporting faculty. When asked if students provide

feedback on the quality of faculty, Dr. Miranda responded there are reports on level of preparedness in

entry level courses. When asked about faculty impressions on the quality of students, the response was

generally very positive feedback is received.

Dr. Miranda described the major issues in retaining faculty and commented on the challenges when

responding to recruitment offers faculty have received from other institutions. When asked if

tenure/tenure track transfers from another university, Dr. Miranda responded it is not automatic but it is

common practice to consider transferred faculty for tenure.

Dr. Miranda reviewed hiring highlights that include there were approximately 1,300 applicants for 67

positions at CSU-Global Campus; 1,075 applicants in 26 searches for CSU-Pueblo in the past year; and

CSU successfully recruited 97% of the top candidates in the last three to four years. Demographics on

male/female ratios and minorities were provided for each of the three campuses. Compensation relative to

peers is generally within the same parameters for initial salary offers. When asked if faculty were willing

to take less in compensation for the opportunity to live in Colorado, Dr. Miranda responded that, while

there may be a slight leeway, the cost of living factor has eroded that consideration in recent years.

When asked about acting proactive to fill positions vacated by retirement, Dr. Miranda responded there

are demographics for the overall faculty population but no way to accurately predict when retirements

will occur. Governor Doherty noted there is a transitional program that sometimes provides a good

indication and is helpful for the departments. Dr. Miranda explained the transitional program is generally

implemented by faculty teaching one of the two semesters to phase out of teaching.

Dr. Miranda reviewed retention highlights that include CSU-Global Campus has recently retained 92% of

faculty; and, over the past four years, CSU-Pueblo has averaged eight faculty and CSU has averaged

twenty-four faculty leaving annually. He provided examples of retention cases that include salaries or

other investments such as additional staff support or laboratory facilities. Statistics indicate CSU

generally retains 80% to 85% of retention cases. Expectations for teaching and research are important to

retention discussions and, for CSU and CSU-Pueblo, are enunciated in the faculty manual and faculty

handbook respectively.

In response to questions, Dr. Miranda and Dr. Frank explained how CSU endowed chairs that are

available at three different levels can be important for prominent targeted hires. CSU generally has a

philosophy of being proactive for retention, although there is no formal program. Search firms are

generally not engaged for faculty hires and each discipline has its own disciplinary outlets in addition to

general outlets. While there is a public perception that Colorado is a great place to live, there are

challenges for hiring faculty, particularly with compensation. Dr. Frank also noted there has been a

national perception that faculty are overpaid which also creates challenges.

Dr. Takeda-Tinker commented on the tightness in the workforce for the level of staff that CSU-Global

Campus has been seeking. CSU-Global Campus is now being more successful in recruiting staff by

utilizing the same model used to recruit faculty.

Dr. Frank provided an historical context on how CSU in the past invested heavily in salaries and less in

benefits, and then the shift in the focus on benefits that occurred. While capacity has grown on benefits,

the focus needs to again be redirected towards salaries.

Dr. Di Mare commented on differences for CSU-Pueblo with a lower cost of living and she noted the

need to invest more in salaries to be competitive. With the recent crises in higher education, the candidate

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pool has improved. When asked if regional comprehensives are viewed as a transitional stepping stone to

larger research universities, Dr. Di Mare responded that generally is not the case and outstanding teaching

records are the main focus for regional comprehensive universities.

When asked about construction costs and salaries, Dr. Frank responded salaries are funded from the

general fund or restricted funds and less than 2% of the general fund expenditures are for debt service.

Most of the debt service is paid through dedicated student fees or donor funds. Utilities costs and some

deferred maintenance costs are paid through the general fund and the newer buildings are more energy

efficient.

Strategic Mapping Update: Ms. Parsons reviewed the three capabilities across the System identified at

last year’s retreat that provided the foundation for work accomplished this past year. Highlights were

shared on the accomplishments of the ad hoc intersystem task force that were achieved under the direction

of Dr. Lovell with a focus on admissions and enrollment.

June Board Retreat: Ms. Parsons provided a preview for the upcoming June retreat that includes

revisiting the strategic mapping with the return of last year’s facilitator to examine the progress made and

the efforts needed to ensure sustained success. Other retreat topics include financial metrics, reserves and

strategies, and national and state public policy issues. The first day and the morning of the second day

will be focused on the retreat to be followed by a brief official business meeting.

Additional System-Wide Collaboration: Ms. Parsons reviewed highlights that included CSU-Global

Campus joined CSU in hosting a table at the 61st and Pena Blvd. station on the kickoff day for the A line;

the CSU Ascend team visited CSU-Pueblo and PEDCO to explore opportunities; CSU-Pueblo faculty are

developing a new Todos Santos course; communications and advancement staff from the Denver office

are working to create collaborative opportunities; and the IT collaboration group continues to meet to

integrate resources.

COLORADO STATE UNIVERSITY REPORTS

Student Representative: Governor Sydoriak commented on his experiences this past year as the ASCSU

President and made suggestions on how to improve shared governance. Daniela Pineda Soraca, the

incoming student representative, was introduced. In response to Governor Sydoriak’s remarks, Chair

Mosher commented on the year-round budget and tuition process. Ms. Johnson noted there has been

representation from all constituency groups for the parking discussions and encouraged student

participation at the upcoming parking roundtable discussions. Chair Mosher thanked Governor Sydoriak

for his service on the Board.

Faculty Representative: Governor Doherty indicated his written report summarizes the work of the

Faculty Council since the previous Board meeting. At the most recent meeting, there was a presentation

of the first Rosenberg Faculty Council Service Award that was created through an endowment

established to honor Harry Rosenberg, the council’s first elected chair. Governor Doherty reflected on

the progress made during the past year with the parental leave policy, the salary exercise, and more input

into the strategic and budget planning processes. Work will continue on non-tenure track faculty issues,

service recognition, shared governance, communications with a new website, parking plan alternatives,

faculty recruitment and retention, diversity, and the re-envisioning CSU initiative.

President’s Report: Dr. Frank commented on international strategic partnerships that CSU has created,

noting in particular programs and partnerships in east Africa. He presented the 2016 Ram Pride Award to

Paul Evangelista, and Bob and Nancy Sturtevant for their efforts to collect and deliver 20,500 textbooks

to Hawassa University in Ethiopia. Mr. Sturtevant commented on the experience and expressed

appreciation for the recognition.

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Dr. Frank reviewed highlights from the written report including the February launch of the $1 billion

“State Your Purpose” campaign with $610 million already raised; the accomplishments of faculty

members; the public relations award received by External Relations; and the joint funding agreement with

the Colorado wheat growers for an intellectual property program. The recent Climate Smart Agricultural

Symposium was well attended with representatives from the offices of the Governor, Secretary of

Agriculture and the Commissioner of Agriculture.

Dr. Frank reviewed highlights from the most recent CSU Accountability Report including the shift from

state support to the individual consumer; the distribution of funding within the institution which has not

dramatically changed over time; and comparisons to national peers. He then asked Ms. Parsons to provide

a stadium update.

Ms. Parsons reported the stadium construction continues to be on budget and on schedule with 100% of

the construction documents that will allow for CSU to draw down on the contingency budget. The

Stadium Advisory Group is working on campus construction issues that include other projects. The Game

Day Experience Committee is focused on game day operations with input from internal and external

constituency groups. Gold Crown Management has been engaged to assist with evaluating disposition of

Hughes Stadium and the Urban Land Institute will also be assisting to bring together stakeholder groups.

Ms. Parsons reported premium seating sales have exceeded the pro forma at 102% and 75% of total

capacity. When asked about tracking donations such as the anonymous non-naming rights gift, Dr. Frank

explained how the financial model will be populated when the stadium begins operations. In addition to a

graphic representation on donations, another potential standalone report could be prepared for

sponsorships. Mr. Anderson reported 2,100 bricks have been sold towards the 2,500 goal which is a way

for individuals to contribute to the stadium project. Overall this has been the best year in history in terms

of athletic gifts and athletic donors.

When asked about the total donations for the stadium, Mr. Anderson responded $53 million has been

raised. Dr. Frank recounted how the decision was made to finance the entire project over 40 years with

contingencies in the pro forma and no specific target for philanthropy. When asked about premium

seating, Mr. Anderson responded there are three options with incentives for 3-year, 5-year and 7-year

commitments and he outlined the pricing for suites, club seating and loge boxes. Ms. Parsons noted there

was a new video on the stadium website that provides an overview of the different seating assets.

The meeting then recessed for a break at 10:42 a.m. and reconvened at 10:57 a.m.

CSU-GLOBAL CAMPUS REPORTS

Faculty Report: Governor Deemer recounted changes that have occurred at CSU-Global Campus during

his tenure on the Board including the growth in the number of faculty; the training provided for faculty;

the implementation of Schoology that has greatly improved class scheduling and the setup process; and

the new compensation schedule for faculty. He expressed appreciation for the opportunity to serve on the

Board and introduced the incoming faculty representative, Dr. Stephanie Quinn. Chair Mosher thanked

Governor Deemer for his service.

President’s Report: Dr. Takeda-Tinker reported CSU-Global Campus has students in 54 countries, of

which 17% are military personnel. CSU-Global Campus has been providing master degree curriculum for

Saudi Electronic University under the SEU brand for the past four years and 48 women recently

graduated with master’s degrees from the Women’s University that opened two years ago. Dr. Takeda-

Tinker thanked Governors Munn, Robbe Rhodes and Gustafson for participating in the HLC site visit and

acknowledged Governors Mosher, Tuor, and Robbe Rhodes who will be participating in the June 4th

commencement. She then asked Ms. Toney to present the pilot Institutional Loan Program (ILP).

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Ms. Toney explained that CSU-Global Campus currently has over 15,000 students and continues to grow

with 10% of students at risk of not finishing their degrees because they do not have enough left in their

FFA lifetime cap despite CSU-Global Campus’ Tuition Planning process. A new three-year ILP pilot to

increase completion rates while increasing student accountability is being launched through Heartland

ESCI, the lender that works with CSU and CSU-Pueblo for their Perkins loans. CSU-Global Campus is

not eligible for federal Perkins loans.

The ILP will be targeted at undergraduate students with at least 90 credit hours who must sign a

promissory note and complete an entrance counseling program to understand the debt. The maximum

loan is $10,000 and requires $25 per month payments toward the principal while in school and full

repayment begins six months after the last day of attendance. With the assumption that 20% of these

students could potentially not graduate, the risk assessment for loss during the pilot phase ranges from

$64,000 to $82,000. Currently CSU-Global has a very low student default rate of 4.8%.

Dr. Takeda-Tinker noted tuition planning will continue to be done upfront while micro loans for

competency-based exams that have been offered will be discontinued. When asked about experiments

mentioned at a previous meeting, Dr. Takeda-Tinker recounted that CSU-Global Campus applied for two

experiments through the DHE. CSU-Global Campus was accepted for an alternative credit program with

a non-regionally accredited partner. The second experiment that is still pending is for dual enrollment

through high schools with Pell grants to cover the costs. In response to a question, Dr. Takeda-Tinker

explained CSU-Global Campus offers 9 different scholarships for each trimester with certain required

qualifications.

CSU-PUEBLO REPORTS

Faculty Report: Governor Mincic indicated the written report includes information on the Faculty Senate

meetings. Five program enhancement proposals are currently under consideration. A CSU-Pueblo

construction management team recently took first place in a regional competition for the Associated

School of Construction and CSU-Pueblo was the only Division II school that competed. The residual

effects for this win include local, state and national publicity; a $25,000 gift for an endowment account; a

$150,000 challenge donation from one of the department’s advisory committee members; and all of the

students have received job offers. The department has also received a $35,000 grant through the federal

highway administration to run the National Summer Transportation Institute for two weeks in June for

middle school students. Governor Mincic expressed his appreciation to Dr. Di Mare and the Board for

their support and commented on the need to recruit the finest quality of faculty. Chair Mosher thanked

Governor Mincic for his service on the Board.

President’s Report: Dr. Di Mare listed the five program enhancement proposals that are currently under

consideration that might be developed as anchor programs for the university. The Center for Security

Studies is rapidly evolving; a CSU-Pueblo team toured the PuebloPlex that will provide numerous

opportunities; CSU-Pueblo has been named a National Center of Academic Excellence in Cyber-Defense

Education; and representatives from CSU-Pueblo will be meeting with two universities in Taiwan who

are interested in the institution’s cyber and homeland securities programs and certificates.

With the passage of SB191, $900,000 from marijuana tax proceeds would be appropriated to CSU-Pueblo

and help move forward the Institute for Cannabis Studies; an MOU will be developed with several state

and federal agencies that would provide access to different grants; and efforts will continue to create a

cannabis journal and international conference. Through a new partnership with the Smithsonian Institute

that began through HACU involvement, five students from CSU-Pueblo have been selected for summer

internships. The university’s capital campaign has raised $18 million towards the $25 million goal.

At the request of Dr. Di Mare, Dr. Kreminski reported that, through the Center for Teaching and Learning

which is funded through a Title V grant, Dr. Eric Mazur from Harvard conducted a community workshop

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at CSU-Pueblo on collaboration in the classroom. Through the same program, there will be a STEM

education presentation in the fall by 2001 physics Nobel Laureate Dr. Carl Wieman. Dr. Di Mare reported

a donation of $300,000 annually for three years is anticipated from one of the local hospitals to expand

the nursing program.

CHANCELLOR’S REPORT

CSU System Engagement Hubs: Dr. Frank asked Ms. Rennels for an update on the engagement hubs. Ms.

Rennels indicated a four-year plan was outlined in the meeting materials. Recent successes include raising

the profile for CSU Extension; an innovation study for northwest Colorado completed through the Office

of Engagement in the Dept. of Agriculture; potential Ascend and Climate Smart agricultural initiatives;

and positive results from the county commissioners’ surveys. She commented on the importance of

regional initiatives and strong community partnerships. Dr. Frank added that Dr. Swanson and Ms.

Rennels have taken the lead in refining extension coming into a new era with regional engagement centers

or hubs providing services on a regional or local level.

National Western Center: Dr. Frank asked Ms. Parsons to provide an update. Ms. Parsons reported the

CSU Water Center program plan has recently been the main focus; work continues with the City of

Denver to launch RFPs for overall program management and individual project management for the site;

work continues with the various partners; CSU is participating in a Denver urban waterways restoration

study; and CSU is participating in the hearings to designate the 1909 Building as an historical landmark.

The most recent newsletter and a written report were provided to the Board.

CSU-Pueblo Financial Sustainability: Dr. Frank explained the graphic provided in the meeting materials

illustrates the conversations that have occurred to help CSU-Pueblo build a foundation for future success.

The first tier of support relates to expenses and debt, including long-term debt for the housing bond issues

and short-term fluctuation protection for both revenues and expenses. Dr. Frank acknowledged the work

of Dr. Di Mare and her team on longer term expense control through the routine budget process.

The second tier relates to quality with assistance through seed capital and cornerstone academic programs

to build an academic base that attracts the next generation of students and faculty. Real estate support has

also been provided through the CSU Foundation and there is the RFP for P3 opportunities related to the

physical development of the campus. Ways to provide infrastructure assistance including shared IT

systems continue to be explored. Under Dr. Lovell’s leadership, efforts are underway to develop a more

integrated academic infrastructure.

Governmental Relations: Dr. Frank reported the CSU System legislative relations team during the 2016

Colorado legislative session was involved in over 100 bills; actively involved in more than two dozen

bills; and addressed 50+ fiscal notes. The CSU System was able to essentially hold steady with state

funding in the Long Bill that includes $1.5 million for controlled maintenance, $12.5 million for the CSU

chemistry building, and $1.8 million for CSU-Pueblo technology. There were discussions early in the

session on potential CORA changes; those discussions have now been referred to groups for further

study. The Board of Governors appointments for Governors Mosher, Munn and Singleton were

confirmed. The negative news is it will be more difficult to utilize the state intercept program, and the

appropriation of tuition and fees has returned to the General Assembly after nearly half a decade of being

essentially delegated to the governing boards of higher education institutions.

Ms. Parsons reported the federal lobbyist for the CSU System anticipates not much will be accomplished

between now and the November election. A funding request has been submitted to the Colorado

delegation, although the expectation is it will be difficult to get funding in the current appropriations

cycle. There are national proposals for several good initiatives including 21st Century care for medical

innovation and cancer research.

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Association of Governing Boards (AGB) Conference: Dr. Frank reported he, Ms. Parsons and Governor

Robbe Rhodes recently attended the annual meeting in Washington, DC, and afterwards he and Ms.

Parsons had a positive series of meetings with the Colorado delegation. Governor Robbe Rhodes

commented on how previous AGB meetings focused on qualitative measurements on outcomes and

student learning. This year the sessions were focused on measuring differently in different disciplines and

there was a strong emphasis on the governing boards’ understanding of how to stress test the institutions.

APPROVAL OF CONSENT AGENDA AND RESOLUTIONS

Chair Mosher reviewed the items to be approved on the consent agenda that include minutes from the

April 28th Executive Committee meeting wherein two naming opportunities were approved related to the

Natural Resources Building expansion within the Warner College of Natural Resources and the Alumni

Center for the CSU Alumni Association. Motion/Action: Governor Munn moved to approve the consent

agenda; Governor Robbe Rhodes seconded; and the motion passed unanimously.

Chair Mosher reported there were four resolutions for the Real Estate/Facilities Committee discussed in

the executive session the previous day. The first resolution was for approval of a long-term lease for the

University of Colorado Health in the new CSU Health and Medical Center. Motion/Action: Governor

Tuor moved to approve; Governor Singleton seconded; and the motion carried unanimously.

Three CSU naming opportunities discussed in the executive session are as follows: the Hybrid Cardiac

Interventional Suite within the College of Veterinary Medicine and Biomedical Sciences; the Institute for

Biologic Translational Therapies with the College of Veterinary Medicine and Biomedical Sciences; and

the Trio House within the Division of Student Affairs. Chair Mosher asked for one motion to approve all

three resolutions unless there was a request to take individual action. Motion/Action: Governor Johnson

moved to approve; Governor Singleton seconded; and the motion carried unanimously.

NEXT MEETING

Chair Mosher indicated the next meeting will be held June 15-17 at the CSU Mountain Campus. An

overview of the campus tour to be held at the conclusion of the May meeting was provided. With no

further business to come before the Board, the meeting was adjourned at 12:08 p.m.

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Section 4

Executive Session

This section intentionally left blank

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Section 5

Real Estate and Facilities

Committee


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Section 6

Evaluation Committee


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Section 7

Public Comment

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Section 8

Meeting Evaluation


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APPENDICES

Appendix I: Correspondence

Appendix II: Reading Material

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APPENDIX I

Correspondence

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CSUS Board of Governors Correspondence Received [dates] Date Received Email/Letter From Subject Response May 27, 2016 Email Bob Vangermeersch Athletics May 31, 2016 May 24, 2016 Email Mike Pruznick Comments on Coloradoan

Site

May 27, 2016

June 5, 2016 Email Bob Vangermeersch Athletics June 8, 2016

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Geary,Melanie

From: CSUS BoardSent: Tuesday, May 31, 2016 3:41 PMTo: [email protected]: RE: and even more irresponsibility in higher ed

Good afternoon Mr. Vangermeersch, This email acknowledges receipt for your email to the Board of Governors of the Colorado State University System. Your correspondence will be shared with the Board of Governors. Best regards, Melanie Geary Office of the Board of Governors Colorado State University System 475 17th Street, Suite 1550 Denver, CO 80202 From: [email protected] [mailto:[email protected]] Sent: Friday, May 27, 2016 9:42 PM To: CSUS Board <[email protected]> Subject: Fwd: and even more irresponsibility in higher ed

G'Day CSU BOG Please send this email to all 15 members of the CSU Board of Governors. Sound familiar? You may substitute CSU for UC any place and get what's happening at CSU. $20,000,000 + deficits within the CSU athletics dept. Don't believe Dr. Frank about the hogwash of a ''slight deficit'' of $3.2 M. Show some gumption and start asking appropriate questions. Regards Bob Vangermeersch Fort Collins CO. -----Original Message----- From: Deborah Shulman <[email protected]> To: Shulman,Steven <[email protected]>; Bernasek,Alexandra <[email protected]>; Keller,Robert <[email protected]>; Hogler,Ray <[email protected]>; Bob VanGermeersch <[email protected]>; Dimitris Stevis <[email protected]>; Gerry Horak <[email protected]>; Carl Wangsvick <[email protected]>; Carl Patton <[email protected]>; Mary Meyer <[email protected]>; Jean Opsomer <[email protected]>; John Kefalas <[email protected]> Sent: Fri, May 27, 2016 8:45 pm Subject: and even more irresponsibility in higher ed

CSU is not alone. This is a nationwide disease. What is the cure? http://citybeat.com/cincinnati/article-32706-robin_hood_in_reverse.html

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-- Deborah Shulman, Ph.D. [email protected] 970-481-2523

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Geary,Melanie

From: [email protected]: Thursday, June 02, 2016 2:23 PMTo: Chancellor OfficeSubject: Re: Did Professor personally attacks high school student?Attachments: csu-fixed-doc-schaeffer.png

CSU, I see that the individual in question changed his posting to remove his affiliation with CSU, as you can see in the attached. Thank you, that fully addresses my concern. My concern was with a CSU Director making a personal attack against a high school student and that is no longer the case, it is now a private citizen issue. This is exactly why I don't my employment information in my facebook account. Yes, it is unfortunate that facebook does this, but we know it does. I realize you have a lot of employees and inappropriate personal comments will be associated with the university from time to time. Thank you for having a process that deals with this instead of ignore it. If there is a more appropriate place for me to report this in the future, please let me know. Thank you, Michael Pruznick > BEG: Chancellor Office <[email protected]> (Fri, > 27 May 2016 22:04:19 +0000) > > Dear Mr. Pruznick, > > Thank you for making us aware of the concern regarding comments from a > Colorado State University employee on the Coloradoan’s website. We > certainly appreciate your concern for the propriety of the situation > and for the young student involved, and we have discussed and reviewed > this issue in light of your concerns. Colorado State University > respects the First Amendment rights of our employees and their freedom > to express opinions publicly on topics of personal interest and public > concern. However, we do ask that they use care when associating their > university title with personal commentary so as not to create the > appearance of speaking in a professional capacity or on behalf of the > institution. (Unfortunately, the Coloradoan’s use of Facebook for its > comments section complicates matters because the system automatically > pulls up professional titles from Facebook data.) We will reaffirm the > position of the University and the CSU System that all employees > should take care to differentiate personal opinions from their > professional CSU roles. > Thanks again for sharing your concern. Dr. Tony Frank Chancellor > Colorado State University System > > ‐‐‐‐‐Original Message‐‐‐‐‐ > From: [email protected] [mailto:[email protected]]

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> Sent: Tuesday, May 24, 2016 2:09 PM > To: CSUS Board <[email protected]> > Subject: Did Professor personally attacks high school student? > > BOG, > > Please look into this issue and take the appropriate action. I know > it might be a personnel issue and I won't be able to get details, but > if someone could at least confirm that my complaint has been entered > into the correct process and info me that the process was completed, > that would be appreciated. Even if I cannot get details, at least > knowing it went though the process is reassuring. > > The letter referenced below was written by a local high school > student. This student may or may not have a job. We do not know. > This looks like an inappropriate personal attack by a CSU Director > using their official position with the university. Also, please note, > how his comment inspired a subsequent personal attack. > > Thank you for looking into this issue > Michael Pruznick, Citizen > > REFERENCES: > > http://www.coloradoan.com/story/opinion/2016/05/19/letter‐community‐se > rvice‐part‐learning/84555156/ > > Letter: Community service should be part of learning > > Steven Doc Schaeffer ∙ > Director ‐ Engineering Manufacturing Education Center at Colorado > State University How about getting a job, Ryland? That will give you > "real world" experience and a little money to put in your pocket. > That's how we do it in a free society. > > END: Chancellor Office <[email protected]> (Fri, > 27 May 2016 22:04:19 +0000) >

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Geary,Melanie

From: Geary,MelanieSent: Wednesday, June 08, 2016 5:42 PMTo: Geary,MelanieSubject: FW: Letter to the 15 governors

From: CSUS Board Sent: Wednesday, June 08, 2016 5:41 PM To: '[email protected]' <[email protected]> Subject: RE: Letter to the 15 governors

Good afternoon Mr. Vangermeersch, This email acknowledges receipt for your email to the Board of Governors of the Colorado State University System. Your correspondence will be shared with the Board of Governors. Best regards, Melanie Geary Office of the Board of Governors Colorado State University System 475 17th Street, Suite 1550 Denver, CO 80202 From: [email protected] [mailto:[email protected]] Sent: Sunday, June 05, 2016 8:42 PM To: CSUS Board <[email protected]> Cc: [email protected] Subject: Letter to the 15 governors

TO: all 15 members of the board Please forward to each of the 15 governors.

An Open letter to the CSU Board of Governors 6-2-16

Dear Governors

By now I'm sure you’re aware that the CSU president is soliciting

the BIG 12 to join their conference.

A good question to ask is: ''Will this help CSU from an academic perspective?”

I have conducted an informal, non-scientific poll of active and

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retired CSU professors, along with various other academics.

In all cases, the conclusive response is: NO, this is NOT an

academically advantageous move!

Another question to ask is: “Will joining the BIG 12 cure the Athletics Department’s

devastating losses (over $20,000,000 per year)?”

Let's examine some possible responses. A. Sure, an influx of media dollars may look good; however, what will it cost CSU to be competitive?

B. The CSU Athletics budget is approximately $38 M dollars, of which over $20 M is subsidized by the taxpayers and students. The average Athletics budget for the 10 teams presently in the

BIG 12 is $97 M! C. The new CSU football stadium will have 36,000 seats. The

average capacity of a BIG 12 facility is 61,000 seats, which is

70% bigger than CSU’s new stadium. D. The average capacity of the BIG 12 basketball arena is

13,100, which is 50% larger than CSU's Moby Arena which has

a capacity of 8,700 (and it’s usually less than half full).

Here are a few recommended questions for Dr. Frank, assuming

he asked for the Board’s permission to solicit the BIG 12: 1. Will you provide a pro forma financial plan that shows the

cost/benefit analysis of joining the BIG 12?

2. How will the break-even cost of the new stadium ($18.2 M) be

factored into the financial documents?

3. How do you reconcile your August 2015 statement indicating

the Athletics Department’s ''slight deficit'' ($3.2M) with the NCAA report that shows a $20 M subsidy necessary to balance their

budget?

Dr. Ken Starr, President/Chancellor of Baylor University , was

quoted as saying: “I was kept behind a veil of ignorance.''

Please tell Dr. Frank that members of this Board do NOT like

veils!

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Bob Vangermeersch

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APPENDIX II

Reading Material

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Documents

BOARD OF GOVERNORS RETREAT AND MEETING CSU Mountain Campus, Hotchkiss Lodge Amended ...csusystem.edu/uploads/files/2016_06_22_21_39_20_JUNE 2016... · 2016-06-22 · BOARD OF GOVERNORS