CAL POLY CORPORATION BOARD OF DIRECTORS MEETING #5 Friday, May 21, 2010, 8:30 a.m. Corporation Administration Building #15 Conference Room #124 Fiscal Year 2009-10 MINUTES Present: BENNETT, BRABECK, KELLEY, KELLOGG, LEBENS, LOKEY, MORTON, OGREN, WEHNER Absent: HOWARD-GREENE, JOHNSON, PAYNE Guest: Staff: CAWLEY, DAVIS, DEBRUM, FORESTER, HOSEGOOD MARTIN, LEE, MULLEN, MURPHY, SPRAGUE, THORNTON, TREXLER, WEAVER, WILLIAMS Chair Larry Kelley convened the meeting at 8:33 a.m. and welcomed everyone. He announced that the Board is going to present to President Baker a nice framed resolution from the Board at the luncheon today. He also announced that the Board will be giving a commemorative plaque to Sandi Ogren, who is retiring, as well as and Brent Johnson and Carl Payne who are graduating in June, and this is their last Board meeting. I. MINUTES A. Board Meeting Minutes – April 9, 2010 Kelley asked for a motion to accept the April 9, 2010 minutes as presented with concurrence from the Board. (none opposed) II. A. Executive Directors Update Murphy reported that Grant Trexler, the new Associate Director of Finance & Business Operations, started this past Wednesday. Murphy reported on the following: Old Business: Senate Bill (SB) 330 - No additional action is anticipated until after the November elections. In the meantime, CPC and CPHC have uploaded the last three years of Board meeting minutes, audited financials, IRS 990’s and are working on uploading Master & Supplemental Agreements. Two-Tier Retirement - CPC hired a consultant to conduct an analysis of a two-tier retirement option to compare offering medical retirement vesting for new employees beginning at 10 years versus 5 years. Changing the vesting time did not yield a savings to CPC. CPC will expand the analysis to include additional options that may yield favorable savings. New Business: Through April 30, 2010, the Bookstore’s year-to-date sales are $700,000 below budget. Some of the reduction is due to courseware and computer sales being down. The management of the cost of sales, payroll and operating costs offset the unfavorable variance and through April 30, the Bookstore is off budget by $40,000 or 6%. Campus Dining’s year-to-date sales through April 30 are $580,000 above budget. that continues to do well is VG Café. VG Café is $2.2 million over budget. This the closure of Baja Surf. Sandwich Factory is $238,000 over budget, 19 Metro is $850,000 and Starbucks is over budget by $214,000. Julian’s Patisserie in the extremely well and is $150,000 over budget as of April 30. The operation is partly due to over budget by library is doing Beverage vending commissions for the first 8 months that Coke has been on campus are up by Attachment I-A Cal Poly Corporation Board of Directors Meeting Minutes May 21, 2010 Page 2 $5,000 or 27%. This amount does not include having debit card readers on the machines. Adding the card readers to the machines has been a challenge due to the cost associated with the installation. In addition to the Osher Lifelong Learning Endowment that is part of the Board packet, there are letters from President Baker and Bob Stets. The letter from President Baker is in regards to the donor’s intent to reassign the endowment from the College of Continuing Education to the Kennedy Library, and the letter from Stets states that he recognizes that CPF’s policies are very different from CPC’s policies. The existing endowment is written in favor of CPC in how CPC conducts business. Therefore, Stets’ letter states that CPF will continue to adhere to the policies as written by CPC when it is transferred to CPF. In the agreement, the donor did include their right to transfer the endowment from one entity to another. Subsequent to these two documents, Stets sent a copy of an email from the Senior Program Officer for the Bernard Osher Foundation requesting that the University proceed with preparing language to amend the gift agreement and award to move it from how CPC conducts business to how CPF conducts business. Brabeck asked even though the endowment is under water and has lost money is the only way to have a payout on this endowment for the agreement to be amended and transferred to CPF. Murphy replied that CPF can pay out under conditions that CPC can’t, therefore the agreement must be amended before CPF is able to payout. Lokey asked who was managing this endowment. Murphy replied that this endowment is worth approximately $1 million and represents 18% of the pool managed by CPC but will not impact the other eleven endowments that CPC has in the pool. The transfer of this endowment is planned for the last working day of May. III. BUSINESS ITEMS A. Nomination/Election of Officers and Directors M/S/Passed (Wehner/Kellogg) Wehner reported that the nominating committee had a conference call to develop a slate of nominees for Officers and Board of Directors. The nominating committee would like to submit to the Board for consideration the slate of Directors: Penny Bennett Dave Wehner Three-year term Three-year term Expires May 2013 Expires May 2013 And the following names for the slate of officers for FY 2010-11: Chair – Larry Kelley Vice Chair – Dan Howard-Greene Secretary/Treasurer – Dave Wehner The Board voted and approved the recommendations. B. Contribution to ASI Leadership Fund M/S/Passed (Lokey/Brabeck and all Board members) that the Board approve the contribution to the ASI Leadership Fund in Honor of President Warren J. Baker. Murphy reported this is a recommendation for a contribution to the ASI Leadership Fund from CPC in honor of President Baker. Since 1979, President Baker has been a tireless supporter of CPC, working closely with the Board of Directors to encourage and promote first class programs and activities provided by the auxiliary, all of which contribute to making Cal Poly a great educational institution. The ASI Leadership Fund was presented to President Baker on April 17, by the ASI students at a reception that was attended by past ASI Presidents. ASI recognized President Baker at the reception for what he has done for the students at Cal Poly. The target goal for the fund is $1 million. A $100,000 pledge by CPC will provide the initial contribution to the fund, and will be funded out of the 2010-11 G&A revenues. It is currently included as an expense item in the 2010-11 budget. It is anticipated that revenues will be sufficient in the next fiscal year to cover this expense; however, what CPC would like to do is to have the Board consider the pledge of $100,000 and CPC would like to pay it out over a four year period beginning in 2010-11. CPC would agree to pay $25,000 in 2010-11 and $25,000 over the next three consecutive years. Lokey asked would it be the idea that CPC would have the option to pay it over the four years and if CPC had a good year that CPC could pay it early. Murphy replied Cal Poly Corporation Board of Directors Meeting Minutes May 21, 2010 Page 3 that it is definitely a possibility to pay the total amount sooner. Kelley reported that CPC will modify the background piece with the understanding that it is a $100,000 pledge and can be paid at anytime over the next four years or sooner. None Opposed. C. New Policy No. 117 Approval-Budget Controls and Delegated Authority Policy M/S/Passed (Brabeck/Lokey) that the Board approves the new policy No. 117 ApprovalBudget Controls and Delegated Authority Policy. Murphy reported this is a new policy regarding budget controls and delegating authority to the CPC Executive Director. In the past, the Board of Directors has reviewed and approved the annual proposed budgets. This new policy documents this fiscal practice, and provides further guidance and authority for redirection of budgeted non-fixed funds, reallocation of budgeted capital funds, and spending of unbudgeted capital and non-fixed expenditures. In the past, when CPC has had matters come up after the budgets were approved for expenses that are above the budget, CPC would basically move forward and take care of it. They would then come to the Board for approval usually after CPC has already spent the funds. What CPC is now trying to do is correct how business was conducted in the past and to put in place an approval up to a certain amount that CPC can expend above the approved budget. Kellogg stated that he has a question about the first paragraph of the proposed new policy; he commented that it is his understanding that this Board approves the budgets and then they are forwarded on to the President, but the Board has ultimate responsibility of the budgets. He is concerned, from the standpoint of a Board member, that the Board could approve a budget and have it modified. The second to the last sentence in the first paragraph of the new policy reads that “the President of the University for approval and/or modification.” Kellogg made a motion: to amend the policy by striking the “and/or modification”. Kellogg stated that ultimately the Board has the responsibility of the budget and once it leaves the Board, the Board may not know about any changes or modifications, but it is still the Board’s fiduciary responsibility to watch out for CPC. Lokey made a motion to have included in the policy: “if the budget is modified by the President that it would need to come back to the CPC Board of Directors for said approval of the budget.” M/S/Passed (Brabeck/Lokey) To approve the motions made by Kellogg and Lokey. D. General Administrative Services FY 2010-11 Operating Budget Proposal M/S/P (Brabeck/Lebens) that the Board adopts the proposed fiscal year 2010-11 General Administrative (G&A) operating budget and capital outlay as presented. Forester reported that the core business is a consolidation of the four core business operations; Bookstore, Campus Dining, Plant Fund, and General Administration Fund. Due to the unpredictable nature of investments, CPC does not create a budget for the Investment Fund. Net to reserves overall for the consolidated core businesses are budgeted at $250,000 compared to $1.9 million this year. The net income decrease of $1.6 million is primarily driven by Campus Dining, with fewer freshman meal plan contracts and increased operating expenses. G&A is also expected to decrease $350,000 due to meal plan service charges that are no longer being recognized by G&A. Bookstore is the same as last year, and Plant Fund is expected to decrease $100,000 assuming Campus Dining vacates the warehouse. G&A Initiatives for fiscal year 2010-11 are to: • Shorten duration of month-end close process. Currently the monthly closing ends on the tenth day and CPC is looking to change that to five days in order to get final reports to the board in a more timely. • Update Corporation Administration policies. • Update strategic plan- 5 year project and fiscal Viability report. Cal Poly Corporation Board of Directors Meeting Minutes May 21, 2010 Page 4 • Increase transparency of business processes and financial information to the campus community. • Implement improved student payment process (ISPP) - CPC is working with the University on moving the meal plans that are currently being paid through CPC and combining it with housing to create a one stop shop for students to pay for their dining plan and housing at the same time. • Implement web-based timekeeping system upgrade. • Implement new online application system. • Reduce dependency on paper based processes and making processes more web-based. The 2010-11 budget proposal for revenues consists of two primary sources: the first source is assessments which are pre-determined amounts charged to operations and represents 52% of the total income. A slight increase is budgeted over the 2009-10 budget due to Executive Office salary chargeback’s to Campus Dining and El Corral Bookstore. The second source is Fees for Service which are principally established by fixed price contracts and represents 48% of the total revenue. A fee for service includes the Administrative Services Agreement with CPF and investment management fees. CPC is expecting to have an 11.4% decrease due to the fact that the meal plan service charges of $99.00 for installment fees are no longer going to be included in the G & A budget. This charge is no longer going to be charged to the students separately; it will be included in the price of the meal plan and included in Campus Dining revenue. Payroll budgeted expenses for 2010-11 represents 76.5% of the total expenses and is the largest expense. CPC is budgeting for a 1.5% decrease from the current year estimate due to vacant and eliminated positions and no merit increases for the next fiscal year. Operating expense is budgeted to increase by 7.9% due to the $100,000 contribution to the ASI Endowment Fund in honor of President Baker. Other income and expenses are primarily the investment income, received from the Corporate General Investment Fund, which is used to balance the G&A budget. This fund is projected to be sufficient to cover the 2010-11 operating expenses. Investment income includes interest and dividends less expenses in the investment fund. The reserve balance overall at June 30, 2011, is projected at $1,461,800. It is anticipated that the Operating Reserve and Investment Operating Assets reserves will be fully funded. Capital outlay request includes a $230,000 purchase for a web-based Kronos Timekeeping System. The current system is beyond its useful life since it was acquired in 1997 and is windows-based, not web-based. CPC must upgrade this system in order to maintain vendor support. The current system only accommodates about 65% of CPC employees. The other 35% of employees submit paper timecards. The new system benefits are: • • • • • • • • Web-based. Eliminates paper timecards. Provides real-time labor tracking and immediate access for adjustments and audit tracking. It will reduce payroll processing time by one to one and a half days. CPC will be able to offer direct deposit to all CPC and ASI employees. Overall efficiency across CPC organizations. Improve timekeeping security. Current technology. Kellogg asked if the current students pay meal plan payments to CPC then the money can be moved to investments right away; How often will the funds from the meal plans be transferred to CPC from the University? Forester responded that CPC will receive payments twice a week on Tuesdays and Fridays, and there should not be any issues with receiving those funds. Kelley commented that currently the housing, dining and university fees are all paid separately. In combining these fees, it will allow the students to pay for all fees on one bill at one place. Cal Poly Corporation Board of Directors Meeting Minutes May 21, 2010 Page 5 E. Plant Fund FY 2010-11 Operating Budget Proposal M/S/P (Kellogg/Lokey) that the Board adopts the proposed fiscal year 2010-11 Plant Fund operating budget and capital outlay as presented. Forester reported that the total Plant Fund income is budgeted to decrease by $39,000. There are no increases in rent projected for all buildings in 2010-11 fiscal year. However, Campus Dining is expected to vacate the warehouse at some point next year, so the decrease that is projected is based on a decrease in rental income at the warehouse. Expenses are budgeted to be $67,000 or 34.9% higher than the current year estimate. Increase in depreciation expense is due to capital projects and an increase in equipment expense due to miscellaneous energy efficient upgrades. These upgrades were actually budgeted for the current year; however, all of the upgrades will not be completed this year. Capital outlay request is to upgrade the fire alarm system in the CPC Administration building and warehouse in the amount of $85,000 and roof replacements in the Administration building and warehouse in the amount of $350,000. Reserve balances for the plant fund next year are projected to be $4.6 million at June 30, 2011. These reserves are expected to be fully funded based on the capital projects that CPC anticipates. F. El Corral Bookstore FY 2010-11 Operating Budget Proposal M/S/P (Lokey/Kellogg) that the Board adopts the proposed fiscal year 2010-11 El Corral operating budget and capital outlay as presented. Cawley gave an example as to why El Corral is down approximately $1 million in sales. There is a group called the California State University Independent Bookstore Group. It is made up of the eleven bookstores that are still independently run. This group met last month and two of the CSU stores are projecting net income losses of $1 million each and projecting even larger losses next year. All of the non-institutional stores are in the process of renegotiating their leases with the universities due to the fact that they are not meeting their threshold of their original sales. The good thing about this is that El Corral is in a slightly better position than other bookstores because textbook sales represent 42% of total sales where the average is 53%. El Corral has already built in products that have much larger gross margins than textbooks. Cawley commented that he has an incredible staff and thanked Phil Davis for all his work on the budget. Cawley reported that El Corral, in comparison to other CSU’s, is number one in the following areas: • • • • • • In total sales per FTE. In total sales per square foot of selling space. In non-book sales. In sales of computer hardware, software, and supplies. In sales of school supplies. In sales of apparel. Highlights for the 2009-10 fiscal year sales are projected at approximately $15 million which is $800,000 less than budgeted. The biggest loss was in textbooks and is due to the way people are buying textbooks; there are fewer students, the remodel of the UU Plaza has a drastic effect on sales, and the recession had an effect. Textbook sales are down $259,000 or 4%, school supplies are down 10%, and electronic hardware is down 10% primarily because the university does not have the funds to purchase computers, and CPC merchandise is down 6%. Cost of goods is on budget at 31%. Due to managing salaries and expenses the net to reserve will be below budget by only $40,000. After paying University Services $371,000 El Corral will capture a $62,000 net to reserves at the end of the year. Cal Poly Downtown is on budget to make sales of $1.2 million and over budget as far as net to reserves. Cal Poly Downtown is projecting $166,000 but will come in at approximately $175,000 Cal Poly Corporation Board of Directors Meeting Minutes May 21, 2010 Page 6 net to reserves. Pony Prints in the Kennedy library provides offset black-and-white printing and plotting sales. Sales are at $420,000 and on budget. Net to reserve is $97,000 and is on budget as well. Customer count at the Bookstore for this year so far is down 34,000 or 12%. It is the Bookstore’s hope that with the plaza reopening the day before graduation, the students will come back. Textbooks units are down over a three year period 18% and 12% in dollars. Proposed sales for 2010-11 fiscal year are projected to be 1% lower or $192,000. Although textbook sales are projected to be lower, El Corral is forecasting major increases in sales in other departments. The two departments that will see losses next year will be textbooks of $550,000 and general books of $64,000. The elimination of all overtime, reduction in student and casual hours, and the elimination of any wage increases will cause salaries to be 4.3% less than last year. Net from operations will be $428,000. Kelley commented that the University was asked to reduce enrollment to be more consistent with state funding levels, which is approximately 1,600 fewer full-time enrolled students that are being targeted. From a management perspective, the University has chosen to do that in a way that protects and reserves the flow of freshman. There will be roughly 3,600 full time freshmen enrolled next year. The University is encouraging graduation and made the summer program completely self-supported, not state-supported. This summer the University will have the same amount of students as it had last summer. There will be 3,000 students enrolled for summer term. Bookstore goals for next year is to: • • • • • • • • Offer textbook rentals. Increase digital textbook sales. Increase department sales. Social networking. Website upgrade to be completed. Sales floor remodel. Stockroom remodel. Bookstore of the future. There are two capital outlay requests and they include a Missouri Book System Point of Sale (MBS-POS), and to remodel the Bookstore sales floor. Kellogg commented that for sixteen years it has been the same scenario. The economic future is uncertain and probably more so in the Bookstore than anywhere else. Yet each year the El Corral Bookstore looks strong and is rated number one. This is a testimony to Frank and his crew and he feels that the store is in great hands and complimented Frank and his staff for doing such a great job. The Board took a short break at 9:57 a.m. and reconvened at 10:11 a.m. G. Campus Dining FY 2010-11 Operating Budget Proposal M/S/P (Brabeck/Kellogg) that the Board adopts the proposed fiscal year 2010-11 Campus Dining operating budget and capital outlay as presented. Thornton reported that the purpose of Campus Dining is to provide services in support of the educational mission of the university and its students. It is important to understand the sources of revenue that Campus Dining has and the main staple of payment is the meal plans. The meal plan realistically comes in dining credits, which is a single swipe-through at four venues: Vista Grande, Sandwich Factory, Metro 19 and Einstein’s. Cal Poly Corporation Board of Directors Meeting Minutes May 21, 2010 Page 7 The other part of the plan is flex dollars and these dollars are used the same as cash. As Campus Dining adds and flows the value on the dining credit, the plu$ dollars they have to spend changes. This is where cash operation sales go up and down. The plu$ dollar is where you see major influxes and then drops in sales patterns for different venues. Freshman enrollment numbers causes massive swings in the budget when there are changes in enrollment. At the rate Campus Dining has meal plans, for every 125 student adjustment it equates to $500,000. This year for the 2009-10 budget Campus Dining had 400 extra meal plans. Campus Dining budgeted for 3,300 meal plans and had 3,700. For the 2010-11 Campus Dining is budgeting 3,200 meal plans. Immediately off the top of this year’s meal plan number there is $1.7 million reduction in income. The 2009-10 income estimates shows an increase due to the $1.4 million in additional meal plans. The reason the $1.4 million does not carry over to the variance is due to the fact that catering last year was budgeted for $700,000 increase and catering did not meet the budget. Through March 31, 2010, Campus Dining is $1 million over budget from income from operations and is due to the increase of meal plan students and the continued savings in labor and costs in the venues. The month of April was budgeted at $400,000 for income from operations and came in above budget by $800,000. Campus Dining for 2010-11 proposed budget is projecting smaller numbers. Campus Dining is projecting a $1.7 million reduction in meal plans. Budget for actual food costs is 36.9% and it is currently at 36.3%. Labor is budgeted the same as this year with one shift. This shift was based on the TSI consultant recommendation to shift staff who were in the Corporation Business office over to Campus Dining. Operating expenses are budgeted at 22.1% which is an increase over this year’s budget of 19.5%. One of the reasons Operating expenses increased is because Campus Dining made a strategic decision to allow meal plans to be used at Einstein’s next year. The downside to this is Campus Dining will pay royalties to Einstein’s on that income. The pay off will be Campus Dining providing another service. In doing this, it will drive cash customers to PCV. The sales at PCV have slowed down from the previous year. Therefore, there will be a change of Income from Operations from 8.3% this year to 3.3% next year. Projects and visions for Campus Dining next year are to: • Expand the Chick-fil-A operation at the Avenue. This venue will expand into the Slyders venue next to it, doubling the space. Everything sold in Slyders currently can be transferred to another location. • Expand the Salad Bar from an 8-foot to a 16-foot salad bar with soup wells and a merchandiser on the end for add-on packages. • Expand Dexter Subs & More into the Park Vending room to allow for a full sandwich operation and seating. • Remodel Backstage Pizza by removing the wall between the Bowling Alley and Backstage businesses and create an inclusive environment. • Implement an online ordering system for Backstage Pizza to increase sales and eventually add other venues. • Place an Ice Cream Parlor in the UU that will feature Cal Poly Ice Cream and offer twelve flavors. This project is tentative and waiting on ASI Board approval. Lebens asked if there is an opportunity for clubs and organizations to have fund raisers at dining venues. In offering this it is a way to increase advertising. Thornton responded that Campus Dining does work with groups who are academic based, but Campus Dining tries to stay neutral. It is definitely something for Campus Dining to look into and assess. H. Sponsored Programs FY 2010-11 Budget Proposal M/S/P (Bennett/Morton) that the Board adopts the proposed fiscal year 2010-11 Sponsored Programs operating budget and capital outlay as presented. Cal Poly Corporation Board of Directors Meeting Minutes May 21, 2010 Page 8 Mullen reported that Sponsored Programs provides the post award administration for sponsored research activity on campus and the financial administration for Centers and Institute and fee-forservice accounts. The primary responsibility for these general areas is award acceptance, account establishment, tracking, close out and record retention. Mullen reported that Contract and Grant Administration has 511 active research projects and 235 project directors leading these activities. Sponsored Programs also provides support for the administration and fiscal management of Centers and Institutes and Fee-for-Service. Currently there are 24 Center and Institutes accounts and 15 fee-for-service activities. Mullen reported on the FY 2009-10 estimate budget. The estimated income for this year is expected to be above budget by $183,341 or 5.5% over last year’s income due to Sponsored Programs making some thoughtful adjustments based on the State’s economic situation. Salaries and benefits are at $814,685 and are below budget by 7.9%. Other operating expenses are estimated at $602,308 and are estimated to be below budget by 3.4% due to vacant staff positions and voluntary reduction to schedules. Net revenue from Contract and Grant Income and other income available in support of University Programs is higher. The return to the University currently, after meeting expenses, is projected to be $2 million. Mullen reported that overall research activity has decreased. Other activities that Sponsored Programs has fiscal oversight with are the centers and institutes and fees-for-service activities. Over the last five years the amount has been between $1 and $2 million. This current year it tailored down primarily due to the economy. New centers and Institutes were established by the University this year. In fact five Fee-for-Services projects and four new Centers for Institutes were established in FY 09-10. Challenges and goals for 2009-10 were the economy, regulations and resources. Goals, objectives and challenges for 2010-11 are: • • • • To monitor award activity and expenditure trends for budget planning. To support the University and Sponsored Programs in an efficient and effective manner. Streamline processes and improve customer relations. Acceptance of a new Facilities and Administrative Rate Agreement. Mullen reported on the following for the 2010-11 proposed budget. Revenues are projected to drop due to the economy and State and Federal projects haven’t been replaced. Payroll will increase only due to increases in benefit expenses. Operating expenses are projected to decrease. Capital outlay request in the amount of $4,425 is to replace five computers. There are two reserves accounts; the first is the audit reserve account. The purpose of this account is to establish a reserve for audit allowances. The goal is to fund this account at a value of 1.5% of the total contract and grant expenditures over the past three years. The second reserve account is the Contingency Reserve account. The purpose of this account is to establish a fund in the event of something unusual that might occur. The goal of that funding is based on 50% of the total current operating expenses. In both cases the accounts are underfunded. I. Educational Web Services FY 2010-11 Budget Proposal M/S/P (Kellogg/Lebens) that the Board adopts the proposed fiscal year 2010-11 Cal Poly Corporation Board of Directors Meeting Minutes May 21, 2010 Page 9 Educational Web Services (EWS) operating budget and capital outlay as presented. Debrum reported that since 2001 Educational Web Services has been part of the G&A budget. To better split out the commercial operations, EWS is now a standalone operation. Revenues this year are up 3.6%. There are two primary categories for revenues; the first is feesfor-service. Fees-for-service are actually made up of EWS’s fixed annualize hosting costs. For many of the departments on campus, EWS provides hosting services. These services are also provided to off-campus entities throughout the CSU system. The second is the labor costs. Labor costs include development of applications and services. EWS has maintenance retainers with some of the larger clients. This new category of assessments, in the past under the G&A budget, resulted in EWS not recouping costs from any defined development projects to other Corporation entities, which resulted in un-billable hours. This has since been split out and is now a recognized cost within EWS’s revenue lines. On the expense side, this comes back to EWS as well. Wages and Benefits will have a slight increase. The general operation expenses will be fairly static and budgeted costs will go down. Net to reserve for 2010-11 is projected at $10,951. The last two years have been difficult due to the State budget has greatly impacted projects. Departments are looking to where they can cut, and development of non necessary applications has been cut back and moved out to later fiscal years. Next fiscal year we are starting to see these projects that were delayed come back. Goals and Objectives: • Expand services and identify new areas. • Increase staff. • Online ordering system. • Improve holiday meal program. • University housing Project. • Bolster conference capabilities to online applications to register and manage the events. • Support existing clients. • Focus on future projects and services. IV. Announcements A. Tentative 2010-2011 Board Meeting Schedule and Retreat Kelley asked the Board to look at the proposed Board of Directors meeting schedule and make sure the dates work for them. Kelley announced that there will be a lunch for the Board of Directors at noon at Sage and that President Baker will also be attending. CPC Board will present a Resolution Commendation to President Baker and announce that CPC is making a $100,000 commitment to the ASI Leadership Fund in Honor of President Warren J. Baker. Lokey commented that he has been impressed on how business is conducted and likes how CPC is very professional. He is very happy and proud to be part of this organization. V. CLOSED SESSION Closed Session in accordance with California Education Code, Section 89920, et seq. VI. ADJOURNMENT M/S/P (Kellogg/Morton) No further matters appearing, the meeting was adjourned at 11:16 a.m. Respectfully submitted, ________________________ Ann Roy RECORDING SECRETARY