February 27, 2020 University of North Carolina School of the Arts Hanes Student Commons, Eisenberg North Winston-Salem, North Carolina

BOARD MEMBERS:

Elizabeth Madden (chair), Steve Berlin, Phillip Horne, Rob King, Ralph Womble (ex officio)

COMMITTEE STAFF:

Cindy Liberty (Foundation Liaison), Matt Horvat (Staff Council Representative), Ramona Richmond (Staff Council Representative), Ellen Rosenberg (Faculty Council Representative), Michael Smith (VC for Finance & Administration), Lisa McClinton (AVC Finance), Jackie Riffle (Director of Budget), Steve Martin (AVC Facilities), David Harrison (VC for Institutional Integrity & General Counsel), Krista Johnson, Amanda Balwah

AGENDA

1. Call to Order and Confirm Quorum…………….……………………………….Chair Madden

2. Approval of Minutes from the December 2019 Meeting…….………………..Chair Madden

3. State Budget Update……………………………………………………………..Michael Smith

4. FY19-20 Financial Update……….………………………………….…………..Michael Smith

5. Capital Projects Update………...…..……………………………………………Michael Smith

6. Other Business …………………………………………………………………...Chair Madden

7. Adjourn …………….………………………………………………………. …….Chair Madden

MEETING OF THE BOARD OF TRUSTEES

Finance Committee

  1

      

DRAFT OPEN MINUTES

December 5, 2019 University of North Carolina School of the Arts Hanes Student Commons, Room 301 Winston-Salem, North Carolina

COMMITTEE PRESENT

Elizabeth Madden (Chair), Rob King, Phillip Horne, Ralph Womble (ex officio), Steve Berlin

COMMITTEE STAFF PRESENT

Cindy Liberty (Foundation Liaison), Ellen Rosenberg (Faculty Council Representative), Steve Martin (AVC Facilities), David Harrison (General Counsel), Michael Smith (VC Finance and Administration), Jackie Riffle (Director of Budget), Lisa McClinton (AVC Finance), Krista Hopkins, Amanda Balwah

OTHERS PRESENT

Erna Womble, Jim Decristo (Chief of Staff), Karin Peterson (Interim Provost), Tracey Ford (Interim Vice Provost), Mara Wetzel (SGA President)

CONVENE MEETING AND CONFIRM QUORUM

Chair Elizabeth Madden convened the September 26, 2019 Finance Committee Meeting at 10:30 a.m. and confirmed a quorum was present.

APPROVAL OF MINUTES

Chair Elizabeth Madden asked the committee members to review the minutes from the September 26, 2019 meeting. She then called for a motion to approve the minutes as presented.

MOTION: Phillip Horne moved to approve the minutes from the September 26, 2019 meeting. Rob King seconded and the minutes were unanimously approved.

MEETING OF THE BOARD OF TRUSTEES

Finance Committee

  2

2020-2021 TUITION & FEES

Michael Smith, Vice Chancellor for Finance and Administration, reported that the UNC System Office set very clear parameters pertaining to the annual tuition and fees process. The University’s Tuition and Fees committee met and recommended a $194 tuition increase for the following students:

o new undergraduate residents o all undergraduate non-residents o both resident and non-resident graduate students; and o non-resident high school students.

Along with the tuition increase, a recommendation was made to:

o increase housing rates by $300 for Residence Halls A-F o increase Center Stage Apartments rates by $1,000; and o institute a rate for students residing in the temporary housing at the Gateway

Lofts appropriately positioned between the Center Stage Quad and Center Stage Double rates

The final fee increase request was to raise the application fee by $5 to subsidize recruitment and audition expenses within each Arts School.

MOTION: Elizabeth Madden requested a motion to approve the Tuition and Fees as presented from the Tuition and Fees Committee. The first motion came from Rob King with a second from Steve Berlin. There were none opposed.

FINANCIAL STATEMENT AUDITS

Lisa McClinton, Associate Vice Chancellor for Finance, reported that the school has received a clean financial audit report for the 11th consecutive year!

WRITE-OFF OF UNCOLLECTIBLE ACCOUNTS

Ms. McClinton also presented information related to aged accounts receivables and requested approval to write-off accounts deemed uncollectible in the amount of $23,059.33. The Finance Committee thoroughly reviewed this request, unanimously approved it, and endorsed recommendation to the full board for approval.

MOTION: Elizabeth Madden requested a motion for approval to write-off the uncollectible accounts as presented. Ralph Womble gave the first motion with a second from Rob King. There were none opposed.

 

CAPITAL AND R&R UPDATE

Vice Chancellor Smith gave the capital projects update, providing specific information regarding the New Residence Hall, Semans Academic and Administrative Building, and Performance Place renovations.

  3

OTHER BUSINESS

Lisa McClinton asked for approval regarding the issuance of special obligations bonds to finance the new residence halls. State legislation requires the Board of Trustees to approve this issuance.

MOTION: Chair Elizabeth Madden asked for a motion to approve the issuance of special obligations bonds as present by Ms. McClinton. Ralph Womble had the first motion with a second from Rob King. There were none opposed.

ADJOURN

The meeting of the Finance Committee of the University of North Carolina School of the Arts adjourned at approximately 11:15 a.m.

Submitted by: Krista Hopkins, Executive Assistant to the Vice Chancellor of Finance and Administration

      

AGENDA ITEM

State Budget Update………..………......…………………………………………..……Michael Smith

Summary: The North Carolina General Assembly recently adjourned without reaching an agreement with the governor on a state budget. Discussions are not expected to resume until late April. Absent an approved state budget, UNCSA operates under Continuing Budget Authority utilizing the permanent base budget from the 2018-2019 fiscal year.

Implications of the budget stalemate will be highlighted, including impacts to personnel actions, deferred maintenance, and operational resources.

Action: This item is for information only.

MEETING OF THE BOARD OF TRUSTEES

Finance Committee

February 27, 2020

      

AGENDA ITEM

FY19-20 Financial Update..……………….…………………………………………..…Michael Smith

Summary: Absent an approved state budget, UNCSA is operating under Continuing Budget Authority utilizing the prior year’s (Fiscal Year 2018-2019) permanent base budget. Impacts of the budget impasse will be discussed, along with contingency planning efforts to mitigate the effects of a potential prolonged (two-year) budget stalemate.

A high-level update on year-to-date financial performance through January 31, 2020 will be provided. For the seven month period ended January 31, 2020, UNCSA expended a total of $29.11 million or 56.74% of the total budget.

Action: This item is for information only.

MEETING OF THE BOARD OF TRUSTEES

Finance Committee

February 27, 2020

      

AGENDA ITEM

Capital Projects Update.…….…………………………………………………………... Michael Smith

Summary: An update will be provided regarding the status of numerous construction projects at UNCSA, including Seman’s Academic and Administration Building, Performance Place, and the residence hall replacement project.

Impacts of the state budget impasse will be addressed, with special emphasis on funding for capital projects, building reserves, and repair and renovation (R&R) allocations.

Action: This item is for information only.

MEETING OF THE BOARD OF TRUSTEES

Finance Committee

February 27, 2020

Capital Project Update  Facilities Management DepartmentW. Steve Martin, AIA, Associate Vice Chancellor ‐ Facilities

February 27, 2020

Performance Place – Major Renovations Budget:  NC Connect Bond: $2,900,000

Donation: $5,000,000Carry Forward FY16/17:  $   860,000

Total Project Budget: $8,760,000

Designer:   Vines Architecture

Status:  Redesign to align scope with available funds (Construction funding ‐ $6M).  Options established by Vines and approved by Project Committee.  SCO is currently reviewing.

Schedule:  Facility is being occupied for academic year Fall 2019 ‐ Spring 2020.  Optimal phased construction/partial occupancy option.

Bid Opening: Summer 2020Construction Start:  Fall of 2020

Semans (Old Library) – Major Renovations Budget:  NC Connect Bond: $8,000,000

Carry Forward FY16/17:  $  499,201Total Project Budget:  $8,499,201

Designer:   Szostak Design

General Contractor:   Davie ConstructionConstruction Costs:  $6,753,826

Status:  Project under construction and on schedule.  Minor challenges with glass manufacturer and elevator inspection.  Ongoing communication with campus and stakeholders regarding status updates.

Schedule:  Contract duration ‐ 415 days.  Scheduled completion:  May 2020

1605 Chapel Street (Housekeeping) Building –Renovation

Budget:  Total Project Budget: $295,105.00

Designer:  Metropolis Architecture

General Contractor:  Davie Construction

Status:  Furniture and signage installed and “move‐in” completed in December 2019.

Schedule:  Grand Opening held January 2020.

New Residence Hall ‐ Budget:  Total Project Budget: $46,000,000.00

Designer:  LS3P/Ayers Saint Gross

Construction Manager @ Risk:  MetCon

Status:  Project is in Advanced Planning Phase.  Design workshops in progress with design team and project committee.  

Schedule:  Design completion scheduled for March 2020.  Construction scheduled to begin Spring 2020 and complete Fall 2021.

Item Category and Project List  Amount

1 Roof Repairs and replacements $ 575,0002 Structural Repairs $ 350,0003 Repairs and Renovations to meet federal and state standards $ 33,0594 Repairs to or installation of new electrical, plumbing and HVAC $ 575,0005 Improvements to meet requirements of ADA Act $ 150,0006 Improvements to meet fire safety needs $ 150,0007 Improvements to existing facilities for energy efficiency  $ ‐8 Improvements to remove asbestos, lead paint, and other contaminants $ ‐9 Improvements and renovations to improve existing space $ $350,00010 Historical restoration $ ‐11 Improvements to roads, walks, drives, utilities infrastructure $ ‐12 Drainage and landscape improvements $ 50,00013 Building demolition $ ‐

2019‐2020 Repair and Renovation:  $2,233,059.00