Western Washington University Board of Trustees Agenda June 7, 8, 2012 FRIDAY, June 8, 2012 Location: OM 340 Time: 8:00 a.m. NOTE: Sign-Up Sheet for the Public Comment Period will be available from 7:45 – 8:00 a.m. outside OM340. Persons wishing to speak must sign in indicating the subject they wish to address. 1. CALL TO ORDER, APPROVAL OF MINUTES 8:00 – 8:05 Board of Trustees Meeting, April 12, 13, 2012 Special Board of Trustees Meeting, May 29, 2012 2. RECOGNITIONS AND INTRODUCTIONS 8:05 – 8:15 Lorraine Kasprisin, Secondary Education - International recognition for Innovative approaches to Education Rich Brown, Theatre - National Award in Theatre Work 3. PUBLIC COMMENT PERIOD 8:15 – 8:25 4. BOARD CHAIR REPORT 8:25 – 8:35 Resolution No. 2012-04 Recognizing the Service of Board Member Jacob Whitish Report on AGB National Conference on Trusteeship, April 22-24, 2012 5. UNIVERSITY PRESIDENT 8:35 – 8:45 6. ASSOCIATED STUDENTS 8:45 – 8:55 7. FACULTY SENATE 8:55 – 9:05 ACTION ITEMS 8. CONSENT ITEMS: 9:05– 9:10 Approval of Spring Quarter Degrees 1 Construction Contract for Administrative Services Central Machine Room Infrastructure Improvements, PW648 Architectural and Engineering Services Consultant Contract for Edens Hall North and Ridgeway Alpha Renovations, PW661 9. COLLECTIVE BARGAINING AGREEMENT BETWEEN WESTERN WASHINGTON UNIVERSITY AND THE UFWW 9:10 – 9:15 Presentation: Bruce Shepard, President 9:15 – 9:25 Discussion: 10. 2012-2013 ANNUAL OPERATING BUDGET 9:25 – 9:35 Presentation: Bruce Shepard, President Paula Gilman, Executive Director, University Planning & Budgeting 9:35 – 9:45 Discussion: 11. 2012-2013 STUDENT FEES 9:45 – 9:50 Presentation: 9:50 – 9:55 Discussion: Eileen Coughlin, Sr. Vice President, VP for Enrollment and Student Services Services & Activities Fee Student Health Service Fee Student Recreation Fee Student Technology Fee Non-Academic Building Fee Green Energy Fee Transportation Fee 12. OTHER ACADEMIC PROGRAM FEES 9:55 – 10:00 Presentation: Catherine Riordan, Provost and VP for Academic Affairs 10:00 – 10:05 Discussion BREAK 10:05 – 10:20 13. 2013-2015 CAPITAL BUDGET REQUEST AND 2013-2023 CAPITAL PLAN 10:20 – 10:30 Presentation: Rich Van Den Hul, Vice President for Business & Financial Affairs 10:30 – 10:40 Discussion: 14. RESOLUTION NO. 2012-03 SALE OF HOUSING & DINING SYSTEM REVENUE REFUNDING BONDS, SERIES 2012/2013 TO REFINANCE THE HOUSING & DINING SYSTEM REVENUE AND REFUNDING BONDS, SERIES 2003 10:40 – 10:50 Presentation: Eileen Coughlin, Sr. VP & VP for Enrollment & Student Services Rich Van Den Hul, VP for Business & Financial Affairs 10:50 – 11:00 Discussion: 15. 2012-2014 INTERNAL AUDIT SCHEDULE 11:00 – 11:05 Presentation: Kim Herrenkohl, Director, Office of Internal Audit 11:05 – 11:10 Discussion 2 16. ELECTION OF BOARD OF TRUSTEE OFFICERS 11:10 – 11:15 Presentation: Dennis Madsen, Chair 11:15 – 11:20 Discussion: DISCUSSION ITEMS 17. CAMPAIGN UPDATE 11:20 – 11:25 Presentation: Stephanie Bowers, VP for University Advancement 11:25 – 11:35 Discussion: 18. TUITION WAIVERS 11:35 - 11:40 Presentation: Eileen Coughlin, Sr. Vice President, VP for Enrollment and Student Services 11:40 – 11:45 Discussion: COMMITTEE REPORTS 19. AUDIT COMMITTEE REPORT 11:45 – 11:50 Presentation: Peggy Zoro, Chair, Board Audit Committee 11:50 – 11:55 Discussion 20. INFORMATION ITEMS 11:55 – 12:00 Academic Reports Performance Plan New Tenure Track Faculty Admissions and Enrollment Summary Alumni Relations Report Capital Program Report Development Report Quarterly Grant/Contract Report University Relations Report 21. PASSING THE GAVEL 22. MEETING EVALUATION AND FUTURE AGENDA TOPICS 23. DATE FOR NEXT REGULAR MEETING: August 16, 17, 2012 24. ADJOURNMENT 25. LUNCH - Introduction of 2012 Presidential Scholars and Recognition of Brad Smith, Dean, Huxley College of the Environment. 3 WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: President Bruce Shepard DATE: June 8, 2012 SUBJECT: Approval of the Minutes PURPOSE: Action Items Purpose of Submittal: Approval of the Board of Trustees Meeting Minutes. Proposed Motion: MOVED, that the Board of Trustees of Western Washington University, upon the recommendation of the president, approve the following minutes:   Approval of the Minutes of the Board of Trustees Meeting, April 12, 13, 2012 Approval of the Minutes of the Special Board of Trustees Meeting, May 29, 2012 Supporting Information: Minutes of April 12, 13, 2012 Minutes of May 29, 2012 DRAFT WESTERN WASHINGTON UNIVERSITY BOARD OF TRUSTEES MINUTES April 12, 2012 1. CALL TO ORDER, APPROVAL OF MINUTES Chair Dennis Madsen called the regular meeting of the Board of Trustees of Western Washington University to order at 3:00 p.m., April 12, 2012, in OM 340, Western Washington University, Bellingham, WA. Board of Trustees Betti Fujikado, Secretary Dennis Madsen, Chair Ralph Munro, Vice Chair Phil Sharpe Dick Thompson Jacob Whitish Peggy Zoro Western Washington University Bruce Shepard, President Wendy Bohlke, Assistant Attorney General Stephanie Bowers, Vice President for University Advancement Sherry Burkey, Associate Vice President for University Relations Paul Cocke, Director, University Communications Eileen Coughlin, Vice President for Enrollment and Student Services Paul Dunn, Sr. Executive Assistant to the President Anna Ellermeier, President, Associated Students Paula Gilman, Exec. Director, University Planning & Budgeting Karen Stout, President, Faculty Senate Liz Sipes, Secretary to the Board of Trustees Steve Swan, Vice President for University Relations Richard Van Den Hul, Vice President for Business and Financial Affairs 2. SPECIAL REPORTS A. APPLYING WESTERN’S STRENGTHS TO CRITICAL STATE NEEDS Bruce Shepard, President, reported that the university has been working on budget decision packages for the 2013-2015 Biennium. Shepard said that, even if the state cannot provide funding, it is important to be thinking about these proposals and setting priorities for the future. 1 Kathleen Kitto, Acting Vice Provost for Research and Dean of the Graduate School said that each of the decision packages focuses not only on Western’s needs but also the needs of the State of Washington. Active Minds Changing Lives Brian Burton, Dean, College of Business & Economics presented Active Minds Changing Lives. Burton said that the most basic need of the State of Washington is an educated citizenry and Western helps meet that need by providing a liberal education. Burton said to help our students become “active minds changing lives” we need to provide a lifelong skills set including: Leadership Skills, Innovation and Social Change, Information Literacy, Social, Economic, and Environmental Sustainability, Ethical Decision, and Global Perspective. In order to offer all of these crucial elements to Western’s students and help meet the state’s need for “change agents” we need resources. Clinical Doctorate in Audiology Brent Carbajal, Dean, College of Humanities & Social Sciences presented Clinical Doctorate in Audiology. This initiative builds upon Western’s strengths to meet the needs of the State of Washington. Carbajal noted that the proposed AUD is the entry level graduate degree in Audiology; it meets the 2007 certification standards of ASHA and the Council on Academic Accreditation. The AUD program would replace the master’s degree program that was shelved, but the existing curriculum offers a solid core for the Clinical Doctorate in Audiology curriculum. Carbajal said there is a clear need for this degree, both by student demand and market demand. Currently, the UW is the only institution that offers the AUD program and can only accept 12 students from the 85 to 100 applications received. Western’s Department of Communication Sciences and Disorders is clearly one of Western’s strengths. We can offer physical resources, lab equipment, quality faculty, staff, and students and the department is poised to take on this new program. To respond to the state’s needs we would need to request enabling legislation to have the authority to grant a clinical doctorate, as well as some additional faculty and staff. Coastal Resources and Ecology of Washington (CREW) Kathleen Kitto, Acting Vice Provost for Research/Dean of the Graduate School presented Coastal Resources and Ecology of Washington (CREW). Kitto acknowledged the work of Steve Sulkin, Director of the Shannon Point Marine Center, in putting together this initiative. Kitto said that CREW is a wonderful interdisciplinary opportunity. Over 30 faculty from four colleges and the Shannon Point Marine Center are involved in the initiative. A Steering Committee, comprised of representatives of the various departments and programs, has been formed and are inventorying all the existing recourses. The principal new resources needed will include faculty and support positions to fully implement the initiative and those physical resources required to support is functions. 2 Energy Program Brian Burton, Dean, College of Business & Economics, said the Energy Program is at the right place at the right time. The program meets the mission and goals of the university and can meet the needs of the State of Washington. The Energy Program will continue Western’s tradition of research innovation, environmental leadership and commitment to undergraduate education. Three colleges within the University have collaborated to produce a unique program that harnesses expertise from throughout the campus. All three colleges are nationally recognized for their outstanding educational programs and demonstrated educational excellence. There is availability of all types of energy in the vicinity – wind, solar, hydro, etc. The Energy Program Advisory Board is enthusiastic, highly connected and eager to get this program going and succeed. Resources are needed for additional faculty and staff. Some external money has been raised allowing us to offer a minor in policy, economics and business in the Fall of 2012. Engineering at Western Jeff Wright, Dean, College of Sciences and Technology, said the Engineering at Western initiative would transform the existing Engineering Technology department into a full Engineering Department. This initiative builds on Western’s strengths of a liberal arts core and the existence of an Engineering Technology program. We also have support from the community, state industries, and community colleges. The proposal transitions mechanical engineering technology, electrical engineering technology and plastics technology into full engineering programs. There is a great need in the state for an increased engineering workforce and with modest increases in resources Western can take advantage of its strengths and contribute to that need. Math/Science Teacher Preparation George “Pinky” Nelson, Director of Science & Math Technology Education (SMATE) presented the proposed initiative on Math/Science Teacher Preparation. Nelson said there is a shortage of math and science teachers in Washington State as well as around the country. Western can build on its strength of an existing partnership between the CST and Woodring to almost double the number of high school math and science teachers. Nelson noted that Western is a national leader in producing high quality teachers; our teachers are more confident and better prepared than any other institution in the state. With few additional resources, Western Washington University Math/Science Teacher Preparation will help more people achieve degrees, it will focus on diversity, it will help create higher expectations for K-12 students, it will make college easier to access, and it will fill unmet needs in the high-demand fields. Trustees discussed the proposals and strategies for gathering support for them from the legislators as well as industry and private donors. 3 B. EXECUTIVE PANEL – WWU AND COMMUNITY PARTNERSHIPS Bruce Shepard, President introduced Kelli Linville, Bellingham Mayor and Jack Louws, Whatcom County Executive who joined the Trustees to discuss WWU’s current and potential partnerships with the city and the county. Jack Louws, the new Whatcom County Executive and Kelli Linville, newly elected Bellingham Mayor, each gave a brief personal background. One of the goals of the university is to establish a strong relationship with the city and county and to help each other prosper. Strong and successful partnerships already exist and we can build on those. Linville said she is looking forward to working on the revitalization of economic development partnership in the community. There was discussion of development of programs or internships in the city and county so that students have an active part in local government. The students would benefit from the experience of working in the public sector. Stout said the faculty would be interested in servicelearning opportunities for their students. Louws said there are many areas in county government that would benefit from having the involvement of a faculty member or student. There was a suggestion to structure a program for a short-term city/county/Western project to involve Western students. To help solidify the emotional connection between Western and the surrounding community, a program based around the environment or the economic development of the community needs to be developed. Zoro said she is confident that we can connect the university more directly with the community. All the right people are in place to develop partnerships and Western is ready to do great things in the community. In response to a question on campus growth, Linville said that it would still be appropriate for Western to have a presence on the waterfront. The city needs to accommodate university growth in a variety of ways. Linville said that if the university has plans to expand, we need to start discussing it now so that it can be included in the city’s comprehensive plan update due in 2016. Shepard reported that Western has to produce more baccalaureate degrees in order to meet the state’s needs. We do need more operating budget, but we can accommodate more students on campus by better utilizing our current buildings. The waterfront presents opportunities and challenges and it is an important option for the university. Louws and Linville suggested we begin looking at ways of pooling systems that are non-mission driven and look at ways of collaborating on community issues, etc. The city and the county can use the university as an information resource and work in partnership on many projects. 3. EXECUTIVE SESSION At 4:50 p.m. Chair Madsen announced that the Board would go into Executive Session for 30 minutes to discuss personnel and legal issues as authorized by RCW 42.30.110. No action will be taken. At 5:40 p.m. the Board reconvened in Open Session. The meeting recessed at 5:41 p.m. 4 DRAFT WESTERN WASHINGTON UNIVERSITY BOARD OF TRUSTEES MINUTES April 13, 2012 1. CALL TO ORDER, APPROVAL OF MINUTES Chair Dennis Madsen reconvened the regular meeting of the Board of Trustees of Western Washington University to order at 8:04 a.m., April 13, 2012, in OM 340, Western Washington University, Bellingham, WA. Board of Trustees Betti Fujikado, Secretary Dennis Madsen, Chair Ralph Munro, Vice Chair Phil Sharpe Dick Thompson Jacob Whitish Peggy Zoro Western Washington University Bruce Shepard, President Wendy Bohlke, Assistant Attorney General Stephanie Bowers, Vice President for University Advancement Sherry Burkey, Associate Vice President for University Relations Paul Cocke, Director, University Communications Eileen Coughlin, Vice President for Enrollment and Student Services Paul Dunn, Sr. Executive Assistant to the President Anna Ellermeier, President, Associated Students Paula Gilman, Exec. Director, University Planning & Budgeting Catherine Riordan, Provost/Vice President for Academic Affairs Karen Stout, President, Faculty Senate Liz Sipes, Secretary to the Board of Trustees Steve Swan, Vice President for University Relations Richard Van Den Hul, Vice President for Business and Financial Affairs MOTION 04-01-2012 Ralph Munro moved that the Board of Trustees of Western Washington University, upon the recommendation of the President, approve the minutes of the Board of Trustees Meeting, February 9, 10, 2012. Motion carried. Dick Thompson abstained. 1 2. RECOGNITIONS AND INTRODUCTIONS Roger Briggs Dean Guyette, Dean of the College of Fine and Performing Arts, recognized composer/conductor Roger Briggs as recipient of the 2011 Mayor’s Arts Award. The Mayor’s Arts Award was established to recognize outstanding organizations, business and individuals who demonstrate excellence in their artistic discipline, service to the arts, or contribution to arts education in the community. After 18 years, Briggs is retiring as the artistic director of the Whatcom Symphony Orchestra. Briggs joined Western’s music faculty in the fall of 1989 as director of the composition program. He received his Bachelor’s degree from Memphis State University and his Master of Music and Ph.D. from The Eastman School of Music. WWU Men’s Basketball Team Lynda Goodrich, Director of Athletics, introduced Brad Jackson, Men’s Basketball coach. The WWU Men’s Basketball Team was recognized by the following resolution for their win of the 2012 NCAA Division II National Championship. Jackson was named Coach of the Year for the NABC and DII Bulletin. Trustee Zoro read Resolution No. 2012-02. RESOLUTION NO. 2012-02 A RESOLUTION OF THE BOARD OF TRUSTEES OF WESTERN WASHINGTON UNIVERSITY CONGRATULATING THE WWU MEN’S BASKETBALL TEAM WHEREAS, The Western Washington University (WWU) men’s basketball team won the NCAA Division II National Championship on March 24 by defeating Montevallo (Ala.), 72-65, at The Bank of Kentucky Arena in Highland Heights, Ky. WHEREAS, the national championship was the first in the program’s 110-year history and just the second by a collegiate men’s basketball team in state history and just the first in 36 years; and WHEREAS, the Vikings had a 31-5 record, the win total being the best in school history; and WHEREAS, WWU was ranked No.12 in the final regular season National Association of Basketball Coaches Top 25 Poll; and WHEREAS, WWU made just the school’s second NCAA II Elite Eight appearance, defeating Midwestern State (Texas) 64-63 in the quarterfinals and Stonehill (Mass.) 71-66 in the semifinals before its title game triumph; and WHEREAS, the Vikings won the NCAA II West Regional championship, defeating Seattle Pacific, 56-50, in the title game after posting wins over Grand Canyon AZ, 79-73, and Chico State, 74-65; and 2 WHEREAS, the Vikings won the Great Northwest Athletic Conference regular-season title with a 16-2 record; and WHEREAS, WWU was 17-1 in home games, the most wins and best percentage (.944) in school history; and WHEREAS, WWU’s Brad Jackson was named national Coach of the Year by the NABC and DII Bulletin, as well as being NABC West District and GNAC Coach of the Year; and WHEREAS, Rory Blanche was named a first-team CoSIDA Academic All-American, Elite Eight All-tournament, first-team NABC and Daktronics West Region all-star, first-team GNAC all-star and GNAC academic all-star; and WHEREAS, John Allen was voted West Regional Most Outstanding Player, with Blanche and Zach Henifin also selected to regional all-tournament team; and WHEREAS, John Allen was a second-team GNAC all-star and Richard Woodworth received honorable mention and Elite Eight all-tournament recognition; and WHEREAS, Chris Mitchell was a GNAC academic all-star; and WHEREAS, the team members (John Allen, Rory Blanche, Alfred Davis, Damien Fisher, Zach Henifin, Paul Jones, Chris Mitchell, Shedrick Nelson, Cameron Severson, Dane Thorpe, Rico Wilkins, Richard Woodworth and Dan Young) distinguished themselves as student-athletes in the classroom and on the court throughout a rigorous schedule; and WHEREAS, the entire team demonstrated fine sportsmanship and inspired youth to work hard, play well and enjoy athletic competition; and NOW, THEREFORE BE IT RESOLVED, that the Board of Trustees of Western Washington University officially recognizes the WWU men’s basketball team for its unprecedented accomplishments and extends to the team the Board's gratitude and best wishes on behalf of the entire University Community. PASSED AND APPROVED by the Board of Trustees of Western Washington University at its regular meeting on April 13, 2012. MOTION 04-02-2012 Ralph Munro moved that the Board of Trustees of Western Washington University, upon the recommendation of the President, approve Resolution 2012-02 Congratulating the WWU Men’s Basketball Team. 3. BOARD CHAIR REPORT Chair Madsen welcomed the MBS 525, Corporate Governance Seminar class. Madsen talked about his experience in corporate governance as chair and a member of the WWU Board of Trustees. 3 4. UNIVERSITY PRESIDENT Bruce Shepard, President, reported that T.J. Martin, Oscar winner for a Full-Length Documentary, is a Western alum. Martin is an example of the outstanding students that graduate from Western. Martin’s filmed was screened in the PAC. Shepard invited Rich Van Den Hul, Vice President for Business & Financial Affairs to update the Board on bonding activity. a. Softball Field: This is an innovative partnership between public and private funding. The field is completed and in use. Van den Hul recognized Sara Nichols, Western Foundation, for her fund raising efforts. b. Multipurpose Field: This is also an innovative partnership. Completion is expected in the fall of 2013. c. Student Recreation Center: At the February BOT meeting, the Board delegated authority to refinance the student recreation center bonds and add $2.5 M to the multipurpose field. The bonds were sold at the interest rate of 3.75% through 2037 resulting in significant annual savings. Van den Hul recognized Linda Beckman and Teresa Mroczkiewicz for their hard work on this package. d. Energy Savings Performance Contract: We are moving forward on this $3.2M project for energy conservation at Western. 5. ASSOCIATED STUDENTS Anna Ellermeier, Associated Students President, updated the Board on recent activities of the Associated Students. The AS credited the strong student partnership with the WWU administration that resulted in no budget cuts in the legislative session. Thank yous will be sent to the legislators. The AS students are looking forward to their trip to Washington, DC to lobby for various issues with President Shepard and Steve Swan, VP for University Relations. Elections of the 2012-2013 AS Board will be completed by the end of April. 6. FACULTY SENATE Karen Stout, Faculty Senate President, updated the Board on recent activities of the Faculty Senate. Stout reported that the proposed revisions to the Faculty Handbook Appendix 5: Code of Faculty Ethics, revised Section 7: Conflict of Interest Resulting from Family and/or Intimate Personal Relationships in Employment Situations, and Section 8: Consensual Intimate Personal Relationships Between Faculty and Students, were approved by the Faculty Senate. 7. CONSENT ITEMS MOTION 04-03-2012 Ralph Munro moved, that the Board of Trustees of Western Washington University, upon the recommendation of the President, approve the following consent item: 4 Approval of General Contractor Construction Manager Preconstruction Services for Carver Academic Renovation (PW 645) Construction Contract for Mathes Hall Renovation (PW 642) Construction Contract for Classroom and Lab Upgrades (PW 644) Motion carried. 8. APPROVAL OF HOUSING AND DINING RATES Eileen Coughlin, Sr. Vice President and Vice President for Student Enrollment, reported on the Housing and Dining room and board proposed increase of 3%. Coughlin reported that a committee of students who live in the residence halls reviewed the recommendation and unanimously supported the increase. She noted that this is the lowest increase of all of Washington’s public universities. MOTION 04-04-2012 Ralph Munro moved, that the Board of Trustees of Western Washington University, upon recommendation of the President, approve the Housing and Dining rates as proposed in the attached. The 2012-2013 proposed rates call for a 3.0 percent increase in residence hall and Birnam Wood apartment rental rates. (Att.) Motion carried. 9. NAMING OF THE MULTIPURPOSE FIELD Bruce Shepard, President, remarked that because of Western’s outstanding athletes, there is a huge demand for a multipurpose field on campus. We have been looking at alternative ways to gain funding to build this field. Stephanie Bowers, Vice President for University Advancement, introduced Jerry Thon, President of the Western Foundation who has helped move this project forward. Bowers announced that the Foundation received a $1M donation from the Harrington family to commit to building the multipurpose field. Bowers noted that they also commit $45,000 annually to support athletic programs. We are seeking Board approval to name the multipurpose field for the Harrington Family Foundation. MOTION 04-05-2012 Ralph Munro moved, that the Board of Trustees of Western Washington University, upon recommendation of the President, approve the naming the Multipurpose Field the “Robert S. Harrington Field” to recognize the generosity of the Harrington Family Foundation. Motion carried. 5 10. APPROVAL OF THE PRESIDENT’S CONTRACT Chair Madsen reported that per the Board of Trustees Rules of Operation, Section 2.3(a) the Board is authorized to employ the President under such terms and conditions as may be negotiated from time to time through a written contract, including, but not limited to, compensation, housing requirements, benefits, and tenure to an academic unit… The Board has discussed the President’s contract and is now ready to take action. MOTION 04-06-2012. Ralph Munro move that the Board of Trustees of Western Washington University, upon the recommendation of the Board Chair, approves the renewal of the employment contract of Bruce Shepard and authorizes its chair to execute the action on behalf of the Board of Trustees, in keeping with three points noted below: No salary increase of President Shepard’s current salary of $300,000 as was established by his first contract in April, 2008; b. Provides a retention incentive in the amount of $45,000 /year, payable to President Shepard after the completion of three additional years of service (after June 30, 2014); c. Provides that should that contract be renewed for an additional three year term, an retention incentive will be $65,000/year, payable to President Shepard after the completion of three additional years of service (after June 30, 2017). a. Motion carried. Jacob Whitish abstained. 11. 2013-2014 BOARD OF TRUSTEE MEETING SCHEDULE MOTION 04-07-2012 Peggy Zoro, moved that the Board of Trustees of Western Washington University establish the following meeting schedule for the year 2013-2014: 2013 February 7, 8, 2013 April 11, 12, 2013 June 13, 14, 2013 August 22, 23, 2013 October 10, 11, 2013 December 12, 13, 2013 2014 February 6, 7, 2014 April 10, 11, 2014 June 12, 13, 2014 August 21, 22, 2014 October 9, 10, 2014 December 11, 12, 2014 6 At 9:45 a.m. Chair Madsen announced a 20 minute break. The meeting reconvened at 10:07 a.m. 12. 2012-15 CAPITAL REQUEST and 2013-2023 DRAFT CAPITAL PLAN DRAFTS Rich Van Den Hul, Vice President for Business & Financial Affairs reported to the Board the improvements that were made to the Capital Planning and Development process. The projects on the list are recommendations from the vice presidents made with UPRC feedback. The 2012-2015 Capital Request and 2013-2023 will be brought to the Board for final approval at the June 2012 meeting. There was discussion of the proposed projects on the list including the Gateway Center, Canada House, parking, and renovations to Carver Gym. In response to a question, it was reported that the Waterfront project is moving forward and we are looking at a possible public/private partnership to build Western’s facility. 13. PROMOTION AND TENURE PROCESS Shepard reported that people outside of higher education often have a misunderstanding about tenure and promotion at universities. This is an opportunity to explain the process that faculty members undergo. The recently tenured and/or promoted faculty will be recognized at today’s luncheon. The Tenure and Promotion process is important and works well to protect the academic mission and quality. The first major decision for a faculty member is to apply for tenure and promotion as the decision to tenure is a commitment for a life-time of employment for an individual. The promotion application is to move out of an Assistant Professor rank to an Associate Professor rank. Kevin Leonard, Professor and Chair of the History Department, explained the evaluation processes that faculty must go through. It was noted that if a faculty member is denied tenure after six years of employment, they no longer are able to work at the university. 14. IN- STATE/OUT-OF-STATE STUDENT RATIO Coughlin reported to the Board that the Out-of-State student ratio at Western has increased since 2000. Coughlin said there is room for Western to grow in the area, without being a detriment to Washington resident students. In 2001 the Board approved a recommendation of a goal of a 9% in-state/out-of-state ratio. There was discussion of increasing that ratio as well as accepting more international students. With the right balance will can ensure quality and provide access. 15. GRADUATION RATES Catherine Riordan, Provost and VP for Academic Affairs, reported on the four and six year graduation rates at Western. Steve Vanderstaay, Vice Provost for Undergraduate Education; John Krieg, Professor, Economics; Kathy Kitto, Acting Dean of the Graduate School and Vice Provost for Research; and Ming Zhang, Director, Institutional Research presented how 7 Western measures graduation rates, initiatives to increase graduation rates, and departmental challenges in dealing with graduation rates. It was noted that the for first-time entering freshman, the average time to graduate is 4.3 years. 16. CAMPAIGN UPDATES Bowers thanked the Trustees for the Trustee Endowed Scholarship at Western. The formal endowment agreement was presented to the Board for signing. At this time there is $108,000 in cash and pledges committed to this scholarship. Former and future trustees are able to donate to this fund. The scholarship is for incoming freshman who are a Washington State student, exhibit financial need, have high academic achievement, and the student must demonstrate ability to overcome obstacles. The scholarship will be awarded by the Director of Admissions or his/her designee. Bowers reported that the cash and pledges to Western’s Campaign are currently $6.2 M dollars. 17. OLYMPIA UPDATE Shepard reported that there were no cuts to higher education in the last legislative session, a large part due to the efforts of Western. Sherry Burkey, Associate Vice President for University Relations, thanked Bruce Shepard, Steve Swan, the Vice Presidents, Paula Gilman, and all the students and faculty who participated in the effort. As a result of this effort, Burkey noted that there is a growing interest in Olympia in supporting higher education. Burkey distributed copies of the 2012 Final Legislative Report - Bills of Interest for Higher Education. 18. SUBSTITUTE HOUSE BILL 2313 Shepard reported that SHB 2313, effective June 7, 2012, requires that governing boards of all institutions of higher education follow procedures in the Open Public Meetings Act and also provide time for public comment at their meetings. The Trustees provided feedback as to how they would like to meet the requirements of this law. Guidelines for public comment will be drafted and presented at to the June meeting. Amendments will be made to the Board of Trustees Rules of Operation for the Board’s approval. 19. AUDIT COMMITTEE REPORT Peggy Zoro, Chair of the Board Audit Committee reported on the April 12, 2012 Audit Committee meeting. The committee: approved the minutes of the December 8, 2011 meeting Heard the BFA Semi-Annual Internal Controls Report Discussed establishing the biennial Internal Audit Schedule for 2012-2014. A proposed schedule will be submitted for Board approval at the June 8th meeting. Heard an update on Internal Audit projects and the report of the 2011-4th quarter review of the President’s expenses. Completed the Audit Committee Self-Assessment 8 Performed its annual review of the Audit Committee Charter Met separately with Internal Audit and the President as provided by the Audit Committee’s Charter INFORMATION ITEMS Enrollment and Admissions Summary Vice President Eileen Coughlin provided a general update on the university’s enrollment and admissions. Alumni Relations Report Vice President Bowers provided a written report on the university’s Alumni Relations activities. Capital Program Report Vice President Van Den Hul provided a written report on the university’s capital projects. Development Report Vice President Bowers provided a written report on activities of the Western Washington University Foundation. Professional Leave Report Provost Riordan provided a written report on the faculty professional leave proposals that have been approved for the 2012/13 academic year. Tenure and Promotion Report Provost Riordan provided a written list of the faculty granted tenure and/or promotion on or before March 15, 2012, effective September 2012. University Relations Report Vice President Swan provided a written report on the recent activities of University Relations. 20. FUTURE AGENDA TOPICS 21. DATE FOR NEXT REGULAR MEETING: April 12 & 13, 2012 22. ADJOURNMENT The meeting adjourned at 12:00 p.m. 23. LUNCH The Trustees were joined by the recently Tenure and/or Promoted faculty and their College Deans. 9 WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: President Bruce Shepard on behalf of Vice President Eileen V. Coughlin DATE: April 13, 2012 SUBJECT: Housing and Dining Rate Increases for 2012-2013 PURPOSE: Action Item Purpose of Submittal: To obtain approval from the Board for increases in rates for Housing and Dining room and board for 2012-2013. Points to Consider: The majority of the rate increase is to address modest inflation and capital plan expenditures. Operating cost increases are offset through operating cost reductions as well as increases to certain income streams. The proposed 3.0% rate increase allows investment for scheduled renovations, is below the rate increase range of 4% – 5% projected in the 10-year capital plan, and is sensitive to students’ total WWU cost. The current long-term capital plan, shared at the Trustee’s December 2010 meeting, was based on the approximate rate increases shown below. Capital plan revisions and adjustments to inflation estimates may result in changes to these estimates. Year FY09 Estimated 4.50% Actual/proposed 4.50% FY10 5.00% 4.75% FY11 4.75% 4.25% FY12 4.75% 4.00% FY13 4.75% 3.00% Year Estimated FY15 4.75% FY16 4.75% FY17 4.75% FY18 4.75% FY14 4.75% Supporting Information:  Housing and Dining Proposed Rates (copy of document shared with student groups)  Housing and Dining Proposed Operations for 2011-12 and 2012-13  Rate Comparison Charts  Ten-year Rate History Source of Funding: Housing and Dining System Action/Decision Needed from the Board: Approval of the proposed room and board rates for 2012-2013. Proposed Motion: MOVED, that the Board of Trustees of Western Washington University, upon recommendation of the President, approve the Housing and Dining rates as proposed in the attached. The 20122013 proposed rates call for a 3.0 percent increase in residence hall and Birnam Wood apartment rental rates. WESTERN WASHINGTON UNIVERSITY HOUSING & DINING SYSTEM 2012-2013 PROPOSED RATES Presented to the Residential Advisory Committee, Residence Hall Association & Associated Students Board of Directors PRO-FORMA SUMMARY: March 1, 2012 Introduction The attached budget and rates represent the recommendations for fiscal year 2012-13. While the challenging fiscal climate facing the state and WWU continues to generate uncertainties into some elements that affect the System’s rates, there are areas that have somewhat settled out, for example, the new dining services program and the opening of the Buchanan Towers addition. Each operating line item in the budget has been reviewed to ensure that revenue opportunities are examined and costs are managed carefully. The System’s leadership has presented a budget and rate proposal which responsibly responds to inflationary pressures, maintains the core functions of the quality residential program, and considers the total cost for students to attend Western. As with every year, a major influence for planning came from the University’s Strategic Action Plan and standards and expectations outlined in the Principles for the Housing & Dining System. This recommended budget meets those standards and ensures that management attends to the necessary reserve fund balances, planned major maintenance, debt service coverage, and capital planning. The figures and explanatory text reflect student input from surveys and committees as well as the most recent projections for revenue and expenditures. The Capital Plan The Enrollment and Student Services Housing & Dining Capital Plan ensures that the System’s facilities meet Western’s enrollment plan; meet or exceed the Board of Trustees’ fiscal principles, invests in infrastructure to ensure longevity, health and safety, and responds to changing student needs and expectations. The Fiscal Year 2013 projects represent the largest capital expenditures in recent years including phase two of both the Ridgeway Beta fire sprinkler installation/room renovation and the wireless access point installation; the start of the Mathes fire sprinkler project; and planning for the Ridgeway Alpha and Edens North sprinklers and room renovations. Capital projects planned over the following 10 years include continued fire sprinkler additions, room and bathroom renovations, upgrades to radiant heat systems, and seismic upgrades. Why is a Housing Rate Increase Needed? The proposed rates represent the System’s continued efforts to provide a quality program at an affordable cost. The attached documents review the impacts of the additional costs to the system, and the results of the responses to those impacts. The larger increases include contributions to the System’s capital plan for planned renovations, expenditures for major building repairs, and anticipated increases for the dining rate and the institutional overhead assessment. In the midst of these cost pressures, residential programs and services are expected to continue at a high quality level. System staff continues to look for efficient operating means and methods to bring quality services to students. State funds are not used to support the Housing & Dining system. Proposed Rate Increase: The proposed residence hall and Birnam Wood rate increase is 3%. The budget and rate materials presented below show that the System can support its 201213 programs with a rate increase of 3% based on our current understanding of expected inflationary pressures. The 3% increase is slightly less than the long-range financing plan presented to the Board of Trustees and the Residence Hall Association which projects annual increases in the 4-5% range over a ten-year period. The projects in the long-range financing plan are not affected by this slight reduction. Impact of the Rate Increases Residence halls: At a 3% increase, a double room w/125-Block Meal Plan increases $29/month or $263 for the school year. Birnam Wood: With four residents per unit, a 3% increase increases the rent by $9.62/month or $87 for the school year. Background Information and Revenue & Expenditure Details: Comments and figures pertaining to FY2013 are compared to the FY2012 proposed budget and rates presented at the April 2011 Board of Trustees meeting (revised Fall 2011 to address opening occupancy adjustments). Revenue Highlights and Assumptions Overall, the budgeted operating revenue increase is $1,735,000 or 4.8% over FY2012’s proposed budget. Occupancy calculations include opening counts at 4,038, reflecting a reduction of 16 students, a slightly increased attrition rate to reflect FY2012 fall/winter trend, and an adjustment to meal plan-ownership patterns compared to the FY2012 pro-forma budget. Rental income is reduced $33,000 or 24% due to the termination of the off-campus apartment leases. There is a slight increase in anticipated conference revenues. There are increased commissions per the food services management agreement, the results of which were not available at the time the 2011-12 budget and rates were under development. The VU Building Fee variance shown on the pro-forma is due to the prior year’s (FY2012) budget figure not reflecting the result of the fee increase which occurred via a separate process in spring 2011. There is no increase proposed to the Viking Union building fee for 2012-13. Operating Expenditures Highlights and Assumptions Budgeted operating expenditures are projected to increase by $744,000 or 3.0%. Wages and benefits increase $46,000 or 0.75%. Primary drivers for the increase are the state minimum wage, and room and board increase for resident advisors. There are no state cost-of-living increases, but classified staff step increases are incorporated. Dining services rates are under negotiation. The increase shown is the combination of an estimated residential dining rate increase, and increased voluntary meal plan sales. Taken together, the decrease in utilities is about $80,000 or -2.7% led by a continued favorable natural gas market. Internet bandwidth (Communications line) shows a 40% increase, although a portion of that increased expense was taken during the October 2011 budget adjustments when bandwidth was increased. Equipment purchases increase 52% due to additional furniture replacements, phase 2 of the emergency communications system, and implementation of a key-tracking system. Rentals and operating leases decrease $88,000 or 91% due to the termination of the New York apartment leases. Institutional Services, which includes the University’s Administrative Services Assessment (ASA) and University Police (Greencoat security staff) increases 12%. The ASA rate is estimated here at 5.5% of adjusted revenue compared to 4.5% in FY2012. Non-Operating Expenditures Highlights and Assumptions Allocations for major repairs and planned renovations increase $274,000 or almost 8%. This investment in the existing facilities keeps the System within targeted levels per the fiscal principles established by the Board of Trustees. Transfer to the System’s capital plan increases $746,000 or 29%. Upcoming projects include two fire sprinkler additions, and the final phase of installation of wireless access points in all residential areas. Overall, budgeted non-operating expenditures and transfers increase $991,000 or 8.7%. WESTERN WASHINGTON UNIVERSITY - HOUSING AND DINING SYSTEM PROPOSED OPERATIONS FOR BUDGET YEARS ENDED JUNE 30, 2012 & 2013 PROPOSED BUDGET 2011-12 As Presented to BOT REVENUES Room and Board Payments Room and Board Fees and Penalties Investment Income Bond Interest Subsidy Housing Rentals Conferences Commissions Viking Union Programs & Services S & A Fee Distribution (Viking Union) Building Fee (Viking Union) Other Total Revenues OPERATING EXPENDITURES Salaries & Benefits Food Service (net of capital contribution) Communications Electricity Heat Water/Sewer Refuse Disposal/Recycling Television Cable Maintenance & Repairs Operating Supplies Equipment Insurance Rentals and Operating Leases Institutional Services & ASA Assigned Student Affairs Costs Other Expenditures Total Operating Expenditures NON-OPERATING EXPENDITURES/TRANSFERS Bond Debt Service R&R/ Minor Cap./Public Works Projects Other Transfers Transfer for capital plan support Total Non-Operating Expenditures Total Expenditures EXCESS (DEFICIT) OF REV OVER EXP DRAFT BUDGET 2012-13 As of 2/27/12 PERCENT CHANGE DIFFERENCE BUDGET $ $31,995,000 142,500 50,000 318,574 103,897 573,069 1,762,300 149,750 1,253,000 1,606,579 93,150 1.54% 0.00% -50.98% 0.00% -23.97% 3.43% 237.41% -7.31% 0.00% 5.70% 0.00% $486,000 0 (52,000) 0 (32,753) 19,000 1,240,000 (11,814) 0 86,645 0 $36,312,741 $38,047,819 4.78% $6,143,653 10,405,870 255,485 763,343 1,449,933 396,227 266,651 111,725 1,991,070 231,365 296,424 457,852 97,014 1,261,896 78,000 772,049 $6,189,816 10,898,605 358,830 758,948 1,373,721 396,227 266,651 111,725 2,001,745 234,235 451,411 451,852 8,925 1,407,968 78,000 734,329 0.75% 4.74% 40.45% -0.58% -5.26% 0.00% 0.00% 0.00% 0.54% 1.24% 52.29% -1.31% -90.80% 11.58% 0.00% -4.89% $24,978,557 $25,722,988 2.98% $744,431 $5,465,895 3,280,023 25,000 2,563,266 $11,334,184 $5,461,713 3,553,583 0 3,309,535 $12,324,831 -0.08% 8.34% -100.00% 29.11% 8.74% ($4,182) 273,560 (25,000) 746,269 $990,647 $36,312,741 $38,047,819 4.78% $31,509,000 142,500 102,000 318,574 136,650 554,069 522,300 161,564 1,253,000 1,519,934 93,150 $ 0 1 $ 0 2 3 $1,735,078 4 5 6 $46,163 $492,735 $103,345 ($4,395) ($76,212) $0 $0 $0 $10,675 $2,870 $154,987 ($6,000) ($88,089) $146,072 $0 ($37,720) $1,735,078 $ 0 SEE FOOTNOTES FOR EXPLANATIONS FOOTNOTES TO THE ATTACHED 2012-13 HOUSING & DINING SYSTEM PROPOSED BUDGET (1) The 2011-12 Budget, as approved by the WWU Board of Trustees April 2011, is shown to compare with the 2012-13 proposed budget. After Fall opening, adjustments were made based on an analysis of opening residence hall and apartment occupancy. Those October 2011 revisions are not shown here. (2) Large budgeted variance due to FY2012 reduction made in Fall 2011, after rates were presented to BOT. FY2013 Investment income reduced slightly to reflect estimated actual investment pool returns. (3) Other Income includes: Western Card replacements, ticket sales, and interdepartmental support recharges. (4) The Food Service line incorporates expenses for residential dining, catering, conference dining and departmental food costs. The variance shown is due to the anticipation of a board plan price increase (dining rate increase is currently under negotiation), and increased voluntary meal plans. (5) Line item total includes institutional services recharge (ASA) and the expense for University Police Greencoats (safety assistants). The WWU overhead assessment rate used here for FY2013 is 5.5% vs. 4.5% for FY2012. (6) The "Transfer for Capital Plan Support" is an allocation representing Operating, Non-Operating and Building Fee funds to be placed into the System's Renewal & replacement Reserve Fund for planned Capital Plan projects for University Residences and the Viking Union. WASHINGTON PUBLIC UNIVERSITIES RESIDENCE HALL ROOM & BOARD PLAN COSTS FY2013 (Revised 3/25/12) For a Double Room with Best-as-Possible Program & Meal Plan Comparison: EWU UW WWU CWU WSU Gold "Level 4" 125 Block "Large" Level 2 Type of Meal Plan Meals & Points Declining Balance Meals & Points Declining Balance Declining Balance Elements of the Meal Plan Equivalent to 2 to 3 meals per day Equivalent of13-15 meals/wk Approx.12+ meals/wk + $450 Points Equivalent to Approx. 14 meals/wk Equivalent to Approx. 14 meals/wk What you'd see on their web page $8,412 $8,655 $9,018 $9,201 $9,398 Additional Charges not part of the base $30 $0 $0 $0 $0 Total Cost of a Double Room and Meals: $8,442 Rate of Increase Over 2011-12 $8,655 $9,018 $9,201 $9,398 Proposed Proposed Proposed estimated Approved 7.1% 3.8% 3.0% 4.0% 4.3% FY2013 Proposed Rates Comparison $10,000 $9,500 $9,000 $8,500 $8,000 $7,500 $7,000 $6,500 $6,000 $5,500 $5,000 EWU UW WWU CWU WSU WESTERN WASHINGTON UNIVERSITY HOUSING & DINING SYSTEM TEN YEAR HISTORY OF RESIDENCE HALL RATES ACADEMIC YEAR ---------------------2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12: 2012-13 ACADEMIC YEAR RATE with 125 BLOCK PLAN* % OF CHANGE - $5,648 $5,945 $6,242 $6,523 $6,784 $7,089 $7,412 $8,076 $8,419 $8,755 $9,018 10-Year Average Percentage Change * 5.25% 5.00% 4.50% 4.00% 4.50% 4.50% 4.75% 4.25% 4.00% 3.00% ----------4.38% * The meal plan used for comparison changed in 2009-10 from the Gold/100 to the 125 Meal Plan SAMPLE ROOM & BOARD RATES and APARTMENT RENTS FOR 2012-2013 Room & Board Plans: Academic Year (@ 3% increase) 2011-12 Actual at 3% incr. 2012-13 Proposed 2012-13 Cost per Month Double Room with Unlimited meal plan Double Room with 125-Block meal plan Double Room with 100-Block meal plan Double Room w/ 75-Block meal plan $9,100 $8,755 $8,417 $8,075 $9,373 $9,018 $8,670 $8,317 $1,041 $1,002 $963 $924 Triple Room with 125-Block meal plan $7,618 $7,847 $872 Single Room with 125-Block meal plan $9,689 $9,980 $1,109 $321 $331 $331 Birnam Wood Apartment Rents: Academic Year (3% increase) Birnam Wood: Monthly rate per person per bed (Two bedrooms with 4 occupants) f:\budget\fy2012\budget\r&bhist2012 WESTERN WASHINGTON UNIVERSITY BOARD OF TRUSTEES MINUTES SPECIAL MEETING May 29, 2012 1. CALL TO ORDER Secretary Betti Fujikado called the special meeting of the Board of Trustees of Western Washington University to order at 8:02 a.m. May 29, 2012, in Old Main 340, Bellingham, Washington. Board of Trustees Betti Fujikado, Secretary Karen Lee Phil Sharpe Dick Thompson Peggy Zoro Western Washington University Bruce Shepard, President Wendy Bohlke, Assistant Attorney General Stephanie Bowers, Vice President for University Advancement Sherry Burkey, Associate Vice President for University Relations Eileen Coughlin, Sr. VP and Vice President for Enrollment and Student Services Catherine Riordan, Provost & VP for Academic Affairs Steve Swan, VP for University Relations Rich Van Den Hul, Vice President for Business and Financial Affairs Brian Burton, Dean, College of Business & Economics Brent Carbajal, Dean, College of Humanities and Social Sciences II. EXECUTIVE SESSION At 8:02 the Board convened in Executive Session to discuss personnel matters as authorized in RCW 42.30.110. At 8:40 the Board convened in Open Session. No action was taken. III. ADJOURNMENT The meeting adjourned at 8:40 a.m. WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: President Bruce Shepard DATE: June 8, 2012 SUBJECT: Recognition of Faculty & Staff _______________________________________________________________ Lorraine Kasprisin, Professor, Secondary Education Lorraine Kasprisin, Professor of Secondary Education, Woodring College of Education, has served Western for nearly 30 years as an educator, philosopher and scholar. Devoted to sharing perspectives on diversity and social justice, her work reaches students, educators, practitioners, and scholars at Western and throughout the world. Kasprisin founded the highly acclaimed Journal of Educational Controversy, an interdisciplinary electronic journal of ideas. The purpose of this peer reviewed journal is to provide a national and international forum for examining the dilemmas and controversies that arise in teaching and learning in a pluralistic, democratic society. The journal is a significant contributor to the body of research on diversity and brings international attention to Western. Kasprisin earned a doctorate from Teachers College, Columbia University as well as bachelor’s and master’s degrees from the City College of New York. Rich Brown, Associate Professor, Theatre and Dance Rich Brown, Associate Professor of Theatre and Dance, College of Fine and Performing Arts, received the 2012 award for Outstanding Lead Deviser/Director of a Devised Work at the national awards at the Kennedy Center American College Theatre Festival (KCACTF) at the Kennedy Center for the Performing Arts in Washington, D.C. Brown was honored for directing the devised production, “Us.” A devised theater work is an original work created collaboratively by a team of artists who are usually also the performers. Brown and a group of Theatre students devised “Us” over the course of a year. The show is an investigation of the young American experience. Brown earned his PhD in Theatre with an emphasis in acting, directing and devising from the University of Oregon. WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: Bruce Shepard, President DATE: June 8, 2012 SUBJECT: Public Comment Period PURPOSE: Information Item Purpose of Submittal: Substitute House Bill 2313, effective June 7, 2012, restates that governing boards of all institutions of higher education follow procedures for open public meetings in the Open Public Meetings Act. It also requires that Governing boards provide time for public comment at regular meetings. Persons wishing to comment will sign in between 7:45 – 8:00 a.m. the day of the Board of Trustees meeting. The signup sheet will be given to the Board Chair at 8:00 a.m. WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: Dennis Madsen, Chair, Board of Trustees DATE: June 8, 2012 SUBJECT: Board Chair Report PURPOSE: Information Item Purpose of Submittal: Board Chair Dennis Madsen will report to members of the Board and President Shepard and his staff on topics related to the Board of Trustees. Resolution 2012-04 Recognizing the Service of Board Member Jacob Whitish Report on the AGB National Conference on Trusteeship, April 22-24, 2012 WESTERN WASHINGTON UNIVERSITY BOARD OF TRUSTEES RESOLUTION NO. 2012 - 04 RECOGNIZING THE SERVICE OF BOARD MEMBER JACOB WHITISH WHEREAS, JACOB WHITISH of Shelton, Washington, has served as a member of the Western Washington University Board of Trustees from July 5, 2011 – June 30, 2012; and WHEREAS, JACOB WHITISH has the distinction of being the fourteenth student appointed by the Governor to the Board of Trustees of Western Washington University; and WHEREAS, JACOB WHITISH brought to his appointment as a trustee dedication to the campus community through his service as an Account Executive in the Western Washington University Associated Students Publicity Center; and WHEREAS, JACOB WHITITSH, recipient of the Eagle Scout Award, brought to his appointment as a trustee dedication to his community by giving back to the youth members of the Boy Scouts of America, and by working on a community service project to improve Franklin Park in Bellingham; and WHEREAS, JACOB WHITISH has contributed his time and commitment to the University at considerable personal sacrifice while pursuing a B.A. in Environmental Studies in Disaster Reduction and Emergency Preparedness and supplementing his course load in classes in Business Law, Financial Accounting, Micro and Macro Economics, and Management; and WHEREAS, JACOB WHITISH contributed to the increased stature and the future potential of Western Washington University through his participation in numerous activities and decisions affecting the University; NOW, THEREFORE BE IT RESOLVED, by the Board of Trustees of Western Washington University that JACOB WHITISH be and is hereby honored for outstanding service and dedication to the University and is extended the gratitude and best wishes of the entire University community. PASSED AND APPROVED by the Board of Trustees of Western Washington University at its regular meeting on June 8, 2012. _____________________________ Dennis Madsen, Chair ATTEST: _____________________________ Betti Fujikado, Secretary WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: Bruce Shepard, President DATE: June 8, 2012 SUBJECT: President’s Report PURPOSE: Information Item Purpose of Submittal: President Shepard will present brief reflections on issues of interest to the Board. WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: President Bruce Shepard on behalf of the Associated Students DATE: June 8, 2012 SUBJECT: Associated Students PURPOSE: Associated Students Report Purpose of Submittal: Anna Ellermeier, AS president, will introduce Ethan Glemaker, Associated Students president for 2012-13. She will also provide the Board with a debrief on the major activities and accomplishments of the Associated Students this past year. WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: President Bruce Shepard behalf of the Faculty Senate DATE: June 8, 2012 SUBJECT: Faculty Senate PURPOSE: Information Item Karen Stout, President of the Faculty Senate, will update the Board on recent Faculty Senate activities. WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: President Bruce Shepard DATE: June 8, 2012 SUBJECT: Consent Items PURPOSE: Action Items Purpose of Submittal: Approval of the university recommendations provided on the consent item agenda. Proposed Motion: MOVED, that the Board of Trustees of Western Washington University, upon the recommendation of the president, approve the following consent items: Approval of Spring Quarter Degrees Construction Contract for Administrative Services Central Machine Room Infrastructure Improvements, PW648 Architectural and Engineering Services Consultant Contract for Edens Hall North and Ridgeway Alpha Renovations, PW661 Supporting Information: Materials supporting the consent item agenda are attached. WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: President Bruce Shepard by Provost Catherine Riordan DATE: June 8, 2012 SUBJECT: Approval of Degrees PURPOSE: Action Item Purpose of Submittal: Board of Trustees responsibility to approve awarding of degrees Proposed Motion: MOVED, that the Board of Trustees of Western Washington University, on recommendation of the faculty and subject to the completion of any unmet requirements, approves awarding undergraduate and graduate degrees to the candidates listed in the files of the Registrar and Graduate Dean, for Spring Quarter 2012, effective June 9, 2012. Supporting Information: Lists on file with the Registrar and Graduate Dean. Students Undergraduates Masters June 2012 1757 205 Comparison: June 2011 1,689 171 WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: President Bruce Shepard by Vice President Richard Van Den Hul DATE: June 8, 2012 SUBJECT: Construction Contract for Administrative Services Central Machine Room Infrastructure Improvements, PW 648 PURPOSE: Action Item Purpose of Submittal: Award a construction contract for the Administrative Services Central Machine Room Infrastructure Improvements, PW 648. Contract award following Board action. Construction to start June 18, 2012. Proposed Motion: MOVED that the Board of Trustees of Western Washington University, upon the recommendation of the President, award a contract to VECA Electric & Technologies, Bellingham, WA, for the amount of $780,900 (base bid, plus alternates 1, 2, 3 and 4) for the construction contract to construct the Administrative Services Central Machine Room Infrastructure Improvements. Supporting Information: The project will replace the existing Uninterruptible Power Supply (UPS) that is near capacity and the Heating, Ventilation and Air Conditioning (HVAC) units, in order to provide a redundant system. Equipment cabinets will be replaced as an alternate to improve cooling and efficiency. This project was advertised for competitive bidding on May 4, 2012 with the bid opening held 3 p.m. on May 17, 2012. Two bids were received by the University: Bidder VECA Electric & Technologies Base Bid $636,300 Alt 1 – Smart Aisle for HVAC Units $ 22,900 Alt 2 – 13 Telecommunications Cabinets $ 67,700 Alt 3 – 12 Telecommunications Cabinets $ 46,500 Alt 4 – Replace existing receptacles w/twist lock $ 7,500 Total $780,900 Razz Construction $690,000 $ 30,000 $ 95,000 $ 65,000 $ 5,000 $885,000 Zervas Group, Bellingham, WA, prepared the plans and specifications for this project. Project award of the contract is also contingent on the approval of the contractor’s Responsibility Criteria submittal. Source of Funding: State Building Construction Account – Appropriated WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: President Bruce Shepard by Vice President Van Den Hul DATE: June 8, 2012 SUBJECT: Architectural and Engineering Services Consultant Contract for Edens Hall North and Ridgeway Alpha Renovations, PW661 PURPOSE: Action Item Purpose of Submittal: Approval of an Architectural and Engineering Services Consultant Contract for Edens Hall North and Ridgeway Alpha Renovations. Award of contract will follow Board action. Services to start on June 18, 2012. Project construction is scheduled for summer 2013. Proposed Motion: MOVED, that the Board of Trustees of Western Washington University, upon the recommendation of the President, award a consultant contract to King Architecture, Bellingham, WA, for a fee of $483,448 (including reimbursables), to provide Architectural and Engineering services for the design of Edens Hall North and Ridgeway Alpha Renovation. The scope of the project will include fire sprinklers, upgraded fire alarm systems and architectural finishes. Supporting Information: King Architecture was selected from ten (10) teams responding to the Request for Proposals. The firms responding to the Request for Proposals included: 10 Arch, Bellingham CNJA Architects, Everett * King Architecture, Bellingham * Mahlum, Seattle McGranahan Architects, Tacoma RMC Architects, Bellingham * Rolluda Architects, Seattle Schacht Aslani Architects, Seattle SHKS Architects, Seattle Studio Meng Strazzara, Seattle * Selected for interview King Architecture was recommended following review of all firms’ proposals and interviews of three top scoring firms. Source of Funding: Housing & Dining System – Non-appropriated WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: Bruce Shepard, President DATE: June 8, 2012 SUBJECT: Agreement between Western Washington University and United Faculty of Western Washington PURPOSE: Action Item I bring this forward to the Board of Trustees with a recommendation for approval. This agreement is beneficial to all while making progress on shared strategic goals for Western. Proposed Motion: MOVED, that the Board of Trustees hereby approves the proposed collective bargaining agreement with the United Faculty of Western Washington. The Board of Trustees authorizes the President or his designee to execute the agreement on behalf of the Board effective June 8, 2012, in keeping with the reserved authority in the Board of Trustees Rules of Operation, Section 2.3(h). Supporting Information: State law authorizes colleges and universities to engage in collective bargaining with faculty. The University and the UFWW have been at the table in negotiation since January 26, 2012 and have now reached a tentative collective bargaining agreement. Members of the UFWW were given the opportunity to vote on whether to ratify the contract on Monday and Tuesday, June 4 and 5, 2012. The result of that vote will be counted on June 6, 2012 and will be reported at the Board meeting. WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: President Bruce Shepard by Paula M. Gilman, Executive Director for University Planning and Budgeting DATE: June 8, 2012 SUBJECT: Approval 2012-13 Annual Operating Budget PURPOSE: Action Item Purpose of Submittal: For the June 8, 2012, meeting, the Board will be requested to approve the FY 2012-13 operating budget as originally presented in June 2011 including some minor housekeeping adjustments. Supporting information is included in the attached document. Proposed Motion: MOVED, that the Board of Trustees of Western Washington University, upon the recommendation of the President, approve a 2012-13 Annual State Operating Budget of $ 140,113,687 consisting of a State Appropriation in the amount of $41,147,000; WWU net tuition operating fee revenue of $88,077,368; administrative services assessment revenue of $2,652,319; and one-time funds of $8,237,000. Supporting Information: See attached report on the 2012-13 operating budget. Source of Funding: State appropriations (general fund-state, education legacy trust funds and capital construction projects account funds used for operations); net tuition operating fee revenue; administrative services assessment revenue, and one-time funds (institutional reserve fund balances). PMG/xx Attachment WESTERN WASHINGTON UNIVERSITY SUPPORTING INFORMATION SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: President Bruce Shepard by Paula M. Gilman, Executive Director for University Planning and Budgeting DATE: June 8, 2012 SUBJECT: Supporting Information for Board Approval of the 2012-13 Annual Operating Budget Introduction In order to fund the basic instructional and academic support missions of the institution, the President is proposing for Board approval Western’s 2012-13 operating budget for state funded operations that reflects revenue and expenditure estimates available for university operations from state appropriations, net tuition operating fees, the administrative services assessment and temporary reliance on institutional contingency reserves. Approvals for 2011-13 Biennial Operating Budgets While the Board was presented both years of the 2011-13 operating budget in June 2011 as is our practice, the Board acted in 2011 to approve year one only or the 2011-12 operating budget. Additionally, tuition rates for both years of the 2011-13 biennium were approved at that time. Resident undergraduate tuition was increased 16% for each year of the 2011-13 biennium; all other student categories of tuition were increased by an equivalent dollar amount. For the June 8, 2012, meeting, the Board will be requested to approve the FY 2012-13 operating budget as originally presented in June 2011 including some minor housekeeping adjustments. These housekeeping adjustments do not involve policy matters or strategic direction and consequently were not the subject of a campus-wide discussion. There are also few technical adjustments imposed by the 2012 legislature that will have no material impact to Western’s operations. State Budget Reductions from 2007-09 to 2011-13 While the supplemental operating budget passed by the 2012 special session of the legislature for 2011-13 imposed significant general reductions on other state agencies, higher education “dodged a bullet”. During the session, significant reductions were proposed for higher education in various budget versions, however, in the end, no reduction was enacted. It is critical to recall, however, that from 2007-09 through the originally enacted 2011-13 budget, on a biennial basis Board of Trustees June 8, 2012 Page 2 Western’s state appropriations were reduced a cumulative $63.3M or -49%. Such drastic state funding reductions drove up resident undergraduate tuition by a cumulative 70% during this period in order for the university to maintain basic operations while keeping student enrollments essentially flat. Student Enrollments The proposed 2012-13 budget is based on maintaining current year or 2011-12 enrollment levels at the approximate level of Western’s fall 2011 headcount of 14,294 students (14,842 when self-sustaining enrollments are considered). State funded enrollment, according to the legislature, was set for WWU at 11,762 annual average FTE students for both 2011-12 and 2012-13, leaving approximately 898 annual average FTE students or 7.6% of Western’s total enrollment per year without state support. Average annual FTE enrollments are subject to variables such as average student course load and are not based solely on the numbers of students enrolled. Since fall 2010, one goal of enrollment management has been to strategically leverage institutionally-funded financial aid in order to generate additional net tuition revenue. Targeting limited financial aid to enroll students helps entice students to come to WWU over competitors, increases the recruitment of academically talented students, and increases out-of-state enrollments. To this end, Western has endeavored to increase its out-of-state undergraduate enrollment while keeping enrollment flat, replacing a number of resident undergraduates with non-resident undergraduates in order to generate additional tuition revenue for WWU’s operating budget. Of Western’s total undergraduate headcount enrollments in fall 2010, 7% were non-resident undergraduates; in fall 2011, 8%; and it is anticipated that this share will grow to approximately 10%. Proposed FY 2012-13 Annual Operating Budget A summary of all revenue sources is included in the table below. Please note that tuition operating fee revenue is presented net of tuition waivers and Western’s student loan/grant fund contribution at 4%. 2012-13 Annual Operating Budget by Funding Source Funding Source State Appropriations Net Tuition Operating Fees Administrative Services Assessment One-Time Funds Total State Operating Budget FY 2013 $41,147,000 $88,077,368 $2,652,319 $8,237,000 $140,113,687 Board of Trustees June 8, 2012 Page 3 Percentage Share of Tuition and State Appropriations Western’s state operating expenditures have been historically supported by a combination of state appropriations and tuition operating fees. In 2008-09, state appropriations represented 60% of WWU's state operating budget compared to 40% in net tuition operating fees; however, due to several years of severe state budget reductions, state appropriations will represent only a 31% share by 2012-13. 2011-13 Western’s Student Loan/Grant Fund Gross tuition operating fees collected up until 2010-11 were subject to a 3.5% minimum setaside for the WWU student loan and grant fund. This was true of all higher education institutions in the state, with variations on percent contributions. The 2011-13 operating budget enacted by the legislature coupled with other legislation, raised this fee from 3.5% to 4.0% on all tuition in exchange for resident undergraduate tuition granting authority. 2011-13 Budget Reductions and Division Rebasing Initiatives As reported to the Board in June 2011, after careful consideration by the campus of the impacts of reductions and the net effect of both reductions and recommended additional funding to support high priority needs, division budgets were reduced by 1.4% or $3.3M in the 2011-13 biennium, an amount attributable to the Olympia reductions. The collaborative and thoughtful process used to evaluate and recommend these reductions ensured that cuts would not be taken across-the-board. In addition, rebasing efforts were and will continue to be implemented to grow WWU’s quality offerings to students. Rebasing initiatives within divisions are estimated at $9M for the biennium, with approximately $6M provided to the Provost/VPs to reallocate to high priority division needs and the remaining $3M to be reallocated within departments or colleges to priority needs. Some rebasing efforts were implemented immediately in 2011-12, others will be implemented in 2012-13, and others will require several years of planning to implement. 2012-13 Compensation Adjustments 3% 2011-13 Temporary Compensation Reduction In the original 2011-13 enacted budget, a one-time biennial reduction in state appropriations equivalent to a 3% salary reduction for all Western employees was imposed for each year of the biennium, an amount for Western of $2.5M for 2012-13 and $5M for the biennium. This reduction did not result in salary reductions for Western employees since a decision was made to cover the full reduction with one-time funds. The legislature anticipates restoring $2.5M to Western’s 2013-14 annual operating budget ($5M for the 2013-15 biennium) during the 2013 session. Across-the-Board Salary Increases: The legislature did not provide state appropriations for across-the-board salary increases for the 2011-13 biennium for any employee category (faculty, classified staff or professional staff). Board of Trustees June 8, 2012 Page 4 Classified Staff: Western is required by the state to continue to provide classified staff longevity step or anniversary date salary increases in FY 2012-13, an unfunded mandate as part of contractual obligations. Classified staff longevity step or anniversary date increases (usually 5% on the employee’s anniversary date until the employee reaches the top step of his or her salary range) will be funded by rebasing within university divisions via salary differentials and/or other savings. Faculty: Should the Board and UFWWU act to approve a contract for 2012-15, consequences for the 2012-13 operating budget will be identified as that contract is presented to the Board for their action. Employer Paid Health Care Insurance Premiums: A technical adjustment enacted by the 2012 legislature, adjusts employer paid insurance premiums from $850 per month to $800 per month for each employee. Since the legislature provides Western with state dollars to pay the employer premiums, the reduction in state funds of nearly $1M will have no material impact. Resumption of Tenure Track Faculty Hires An amount of $1.5M is included in the 2012-13 operating budget, including an increase of $1M, to assist in efforts to reinstate tenure-track faculty hiring for fall 2012. Search activities began in 2011-12 and to date 32 searches have been successful. New Investment in Non-Tenure Track Faculty Hires To further relieve course bottlenecks and fund course access in higher demand, more costly areas, and programs with growing demand, and amount of $2M in permanent and one-time funds were allocated in 2011-12, with $1M of this amount carried forward into 2012-13. Other Revenue Sources In order to spread total biennial tuition revenue evenly between fiscal years, an amount of $4.1M in tuition revenue in effect was temporarily “borrowed” from 2012-13 tuition revenue and expended in 2011-12. This step was necessary and fiscally prudent since legislative state budget reductions were evenly divided between fiscal years and thus primarily impacted year one of the biennium. As tuition revenue significantly increases in year two, this amount is returned to the 2012-13 budget. Budgeted Contingency Reserve Within the 2011-13 proposed operating budgets, an increase was proposed in WWU’s centrally budgeted contingency reserve for both 2011-12 and 2012-13. An amount of $575,000 was added in 2011-12 with an additional $575,000 recommended for 2012-13. Due to housekeeping adjustments included in the 2012-13 operating budget, permanent use of $642,484 of the permanent reserve is required for these adjustments. With possible increases to the reserve in 2013-14 and in future years, Western will again be on track to meet its 5% reserve target. PMG/xx WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: President Bruce Shepard on behalf of Vice President Eileen Coughlin as recommended by the Associated Students and the S&A Fee Committees DATE: June 8, 2012 SUBJECT: Approval of 2012-2013 Student Fees PURPOSE: Action Item Purpose of Submittal: To approve mandatory student fee levels for 2012-13, distributions of the Services & Activities (general S&A) Fee for academic year 2012-13 and summer 2012, and to receive executive summary program reports for the Green Energy Fee and the Transportation Fee. Motion: Moved that the Board of Trustees of Western Washington University, upon the recommendation of the university president and the various constituent review committees, approve the 2012-13 mandatory student fee levels and distribution for the S&A Fee as proposed in the attached documents for the following fees: Services & Activities (general S&A) Fee (2.37% increase) Health Service Fee (No increase) Technology Fee (No increase) Non-Academic Building Fee (No increase) Green Energy Fee (No increase) Student Recreation Fee (S&A) (No increase) Student Transportation Fee (No increase) Supporting Information: Attachment A: Summary of current and proposed mandatory student fee levels Attachment B: S&A Fee proposed distributions Attachment C: Green Energy Fee program report Attachment D: Transportation Fee program report 2012-2013 Mandatory Student Fees Executive Summary: This proposal is to increase one of the seven mandatory student fees for 2012-13 (only the Services & Activities Fee.) This proposal constitutes a net average increase of 0.93% for all existing mandatory student fees (from $1,290 per academic year to $1,302.) The S&A Fee is proposed to increase 2.37% (from $169 to $173 per quarter) to fund increasing operational costs due to inflation in categories such as travel. Fee Increase Proposed Services & Activities (general S&A) Fee ($4 per quarter, a 2.37% increase) No Fee Increase Proposed Health Service Fee Technology Fee Non-Academic Building Fee Green Energy Fee Student Recreation Fee (S&A) Student Transportation Fee See Attachment A for a chart summarizing all of the mandatory fees. Attachment A 2012-13 Mandatory Student Fees Summary of Current and Proposed Mandatory Student Fee Levels It is proposed to increase one of the seven mandatory student fees for 2012-13. This proposal constitutes a net average increase of 0.93% for all existing mandatory student fees. The Board of Trustees previously approved a tuition increase of 16% for resident undergraduates in 2012-13. 2012-2013 Mandatory Student Fees - Proposed Increases Effective Fall Quarter* *Sub ject to Board of Trustees Approval on June 8, 2012 Quarterly Fee Fee Services & Activities (S&A) Fee Notes Status (1) (2) Proposed increase of $4 per quarter. The S&A Health Service Fee Technology Fee Non-Academic Building Fee Green Energy Fee Current (3) Fee Committee is recommending distribution by percentages for each constituent. Fee is prorated per credit w ith 10+ credits paying the full fee. No change proposed. Fee is charged to students taking 6+ credits. Other students may voluntarily pay the fee to obtain services. No change proposed. The full fee is charged to students taking 6+ credits. Those taking 1-5 credits are charged $12.50. No change proposed. Fee is charged to students taking 6+ credits. No change proposed. Spring 2010 student initiative passed w ith 80.6% approval (23.7% voter turnout), authorizing fee to be betw een $4 and $9/qtr. for purchase of renew able energy certificates (RECs) and sustainable energy projects. Fee is charged as 70 cents per credit w ith a max of $7 for 10 credits or more. Current 2011-12 $169.00 Proposed $$ Academic Year Fee % Current 2012-13 Change Change $173.00 $4.00 2.37% 2011-12 $507.00 Proposed $$ % 2012-13 Change Change $519.00 $12.00 2.37% $70.00 $70.00 $0.00 0.00% $210.00 $210.00 $0.00 0.00% $25.00 $25.00 $0.00 0.00% $75.00 $75.00 $0.00 0.00% $39.00 $39.00 $0.00 0.00% $117.00 $117.00 $0.00 0.00% $7.00 $7.00 $0.00 0.00% $21.00 $21.00 $0.00 0.00% Student Recreation Fee (S&A) (1) No change proposed. Bond refunding resulted in annual savings in addition to funds to support the multi-purpose field. Fee is charged to students taking 6+ credits. Other students may voluntarily pay the fee to obtain access/services. $95.00 $95.00 $0.00 0.00% $285.00 $285.00 $0.00 0.00% Student Transportation Fee No change proposed. Fee is charged to students taking 6+ credits. Summer quarter fee is less than academic quarters because the extra late night shuttle service is not provided; the summer rate of $20 covers just the bus pass. $25.00 $25.00 $0.00 0.00% $75.00 $75.00 $0.00 0.00% $430.00 $434.00 $4.00 0.93% $1,290.00 $1,302.00 $12.00 0.93% Total Mandatory Fees Notes: (1) Fee is sub ject to 3.5% Student Financial Aid/Loan Fee deduction. (2) Bond Covenants pledge a minimum of $32/full-time student per qtr and $6.40/part-time student per quarter to the Housing & Dining System. (3) Net fee revenues (from over-enrollment and/or lower-than-expected energy costs) are held in reserve. The reserve is being allocated systematically for sustainable energy projects. Proposed Distributions and 2.37% Increase in Fee Proposed Fee and Distribution: The Services and Activities (S&A) Fee Committee recommends a 2.37% increase to the Services & Activities Fee for the 2012-2013 academic year, maintaining the Summer 2013 rate at 65.15% of the academic year rate; and recommends approval of the distribution of fees for the 2012-2013 academic year and Summer 2012 as outlined. The committee proposes a 2.37% increase to the S & A Fee for the 2012-2013 year (from $507 to $519 per academic year, or $169 to $173 per quarter). The following constituents receive funds from the Services & Activities Fee: Housing & Dining (per bond covenants) Associated Students (AS) Athletics Campus Recreation Department Related Activities (DRAC) Historically, Athletics has received a smaller proportion of its operating budget from S&A Fee funds as compared with the other S&A constituents. Athletics receives state dollars in addition to generated revenue through gate receipts, sponsorships, donations and other activities. In an effort to rebalance funding sources, the S&A constituents reduced their 2011-12 budget requests in order to allocate a greater proportion of S&A Fee dollars to Athletics so that Athletics could then shift a greater proportion of its operating expenses onto the S&A Fee and release some state dollars. The total proposed to be shifted is $100,000. Note: Constituents are planning to take additional cuts in other funding sources as a part of the state budget cuts and institutional rebasing. Background The Services and Activities (S&A) Fee Committee operates under the authority of RCW 28B.15.045 and makes recommendations on the distribution of S & A Fees for the following constituent groups: Housing & Dining, Associated Students, Athletics, Campus Recreation and Department Related Activities (DRAC). In concert with the RCW, the committee is comprised of 12 members, seven voting and five non-voting. The voting members include one faculty member and six students representing Associated Students, Athletics, Campus Recreation and DRAC. The non-voting members include staff advisors from Associated Students, Athletics, Campus Recreation and DRAC, and a designee of the Vice President for Enrollment and Student Services who serves as Chair. The S&A Fee Committee follows an established annual process to prepare its recommendations on the level and distribution of S&A Fees. This process includes the review of budget requests for each constituent group and an open hearing process to provide the opportunity for input from members of the campus community. The committee is required to maintain a $10,000 reserve. Maximum allowed increases for academic year S&A Fees are limited by RCW to percentages established for tuition increases. Proposed Fee Distribution I. II. III. IV. 3.5% to Student Financial Aid Fund as required by law. Music Copyright Fee to be allocated in the amount of $14,890 Housing & Dining to receive minimums as required by bond covenants for debt service. This amounts to $32 per quarter per full-time student and $6.40 per quarter per parttime student. Recommendation is based on projected revenue. Revenue in excess of projection to be allocated to constituents on a percentage basis. Academic Year Allocations Fee Revenue -Less 3.5% for Financial Aid Fund Net Available for Distribution 2011-12 Actual 6,166,626 215,832 5,950,794 2012-13 Proposed 6,312,775 220,947 6,091,828 Variance 146,149 5,115 141,034 Less: Housing & Dining (per bond covenants) Less: Music Copyright Net for Further Distribution 1,226,758 13,703 4,710,333 1,226,758 14,890 4,850,180 1,187 139,847 Associated Students Athletics Campus Recreation DRAC 2,121,524 1,349,477 322,978 789,464 4,583,443 126,890 4,710,333 $ 2,210,712 1,482,215 350,668 806,585 4,850,180 89,188 132,738 27,690 17,121 266,737 4,850,180 139,847 Subtotal Distributions To Reserve Amount $ Total Distributed $ Summer 2013 Proposed Fee Level As approved by the Board of Trustees in June 2002, the summer rate is set at 65.15% of the academic year rate. With an increase to the rate for the 2012-2013 academic year S&A Fee, the rate for Summer 2013 would increase from $11.06 to $11.34 per credit.) Summer 2012 Proposed Fee Distribution The Board approved the Summer 2012 rate of $11.06 per credit in June 2011. It is proposed that Summer 2012 S&A Fee revenue be split on the following percentage basis after Housing & Dining receives $32.00 per full-time student and $6.40 per part-time student. Constituency Summer 2011 Actual Distribution Summer 2012 Proposed Distribution Housing & Dining $ 55,437 (bond cov.) $ 55,437 (bond covenant) Associated Students Campus Recreation Department Related Activities TOTAL 159,434 (69.99%) 28,156 (12.36%) 40,206 (17.65%) $283,233 162,462 (62.54%) 28,679 (11.04%) 68,632 (26.42%) $315,210 Attachment C 2012-13 Mandatory Student Fees GREEN ENERGY FEE 2011-12 Program Report on Renewable Energy Credit Purchases and Sustainability Projects The Green Energy Fee (GEF) funds purchase of Renewable Energy Credits to offset WWU carbon emissions in addition to the new on-campus sustainability pilot projects through the GEF Grant Program. In its first grant cycle the Grant Program received 7 applications from 32 students and staff/faculty advisors and completed construction on its first five pilot projects: o Environmental Studies Building Solar Array: A 5kw array for power generation and demonstration site for solar power studies. ($167,500). o Parking Lot LED Lighting Retrofitting: Piloting LED technology in high-use applications ($61,000) o Water Bottle Refilling Stations: Reducing waste production and cost, providing easy access to water ($21,000). o High Speed Air Hand Dryers: Reducing waste associated with paper towel use and diverting materials to composting & agricultural use ($13,000). o Restroom Paper Towel Composting: Diverting paper towels to agricultural use through education and signage ($1,400). This year, the Grant Program restructured its project selection process to include Conceptual and Internship phases in order to allow deeper learning for student teams, lessen the impact on campus resources, and spread project work out over the year. In support of the new process, a permanent staff position was added for program stability. At present, in the second grant cycle, there are 9 applications from 35 students and staff advisors. Project selection for this cycle will be completed in June 2012 and team internships will begin in September 2012. A third grant cycle is expected to begin during winter quarter 2013. The Grant Program is a highly collaborative effort, directed by the student/staff/faculty GEF Committee, financially managed by the Associated Students, informed by Facilities Management, Facilities Development and Capital Budget, and other departmental stakeholders, and is programmatically managed by the Office of Sustainability. Fee revenues are appropriate. No additional increases are requested for this Fee for 201213. Fiscal Summary The table below summarizes the Green Energy Fee fund activity and projections. Fee revenues are stable at $285,000 per year The cost for the Renewable Energy Credits (REC) has continued to decline from $1.60 to $0.95/per REC in the new contract (1/1/12). 100% renewable electricity cost $50,000 in 2011-12 and $38,000 in 2012-13. A reserve of $50,000 will support contracted REC purchases and staff support for project completion. One classified staff and one student position are funded to administer the proposal/review process and to promote student engagement through projects. Project funds allocated yearly have increased to create campus awareness and impact. 2010-2013 Green Energy Fee Budget Report Y.T.D. Projection 2011-12 262,110.04 $ (50,000.00) $ 212,110.04 $ Projected 2012-13 171,110.04 (50,000.00) 121,110.04 285,000.00 (50,000.00) (26,000.00) 209,000.00 $ $ $ $ 285,000.00 (38,000.00) (58,934.00) 188,066.00 Total Funds Available for Projects (Annual + Reserve) $ 476,010.04 $ 421,110.04 $ Allocated to Sustainable Projects $ (263,900.00) $ (300,000.00) $ 309,176.04 (250,000.00) Beginning Fund Balance Reserve Actuals 2010-11 $ 305,367.79 $ $ (50,000.00) $ Available for Expenditure $ 255,367.79 $ Fee Revenue REC's Staff & Operations Annual Fee Collections Available for Projects Remaining Fund Balance Available for Allocation $ $ $ $ 284,353.36 (50,000.00) (13,711.11) 220,642.25 $ $ $ $ $ 212,110.04 $ Green Energy Fee Website: http://www.wwu.edu/sustain/gef/ 121,110.04 $ 59,176.04 Attachment D 2012-2013 Mandatory Student Fees Student Alternative Transportation Fee 2011-12 Program Report The Western Washington University student body voted in the Associated Students elections in April 2012 to renew the mandatory Alternative Transportation Fee for an additional five year term at a maximum of $25 per quarter. The fee passed by 84% of the student vote. Only minor changes were made to clarify the wording of the fee language before it went to student vote. No changes to the structure or amount of the fee are being proposed. The recommendation is to keep the current fee structure: $25 quarterly fee for the academic year and a $20 fee for summer quarter (a lesser amount because late night shuttle service is not provided in the summer). This fee level would be in effect from fall 2012 through summer 2013. The transportation fee provides funding for student WTA bus passes, operation of the Student Shuttle, a part-time AS Alternative Transportation Coordinator student position, a full-time staff position, and additional part-time employment of students for fall bus pass distribution assistance and survey projects. The program is monitored by an active Alternative Transportation Fee Committee consisting of a majority of student representatives along with supporting administrative staff. Over 13,000 bus passes are distributed annually; 12,000 in the first 2 weeks of the school year. The bus pass function is encoded onto the WWU student ID card, eliminating the need for students to carry a separate bus pass. The Student Shuttle provides transit service from 11 PM to 3 AM Monday through Saturday and 9 PM to 3 AM on Sunday. It provides safe, efficient, and convenient service to jobs, residences, shopping, dining, entertainment and libraries. Annual revenue approximates $1,030,000. Costs incurred are primarily payments to the transportation providers (WTA and Bellair Charters). Currently, annual expenses approximate $971,000 in the following categories: Staffing (including Student Staff) 7% Operating Costs 1% Transportation Providers 92% Payment to transportation providers has increased annually as percentage of expenses since 2009. A reserve fund of 10% of annual revenue has been set aside during the first five years for the purpose of major repairs or shuttle bus replacement. The pending agreement with WTA increases annual payment as follows: 2012-2013, 2013-2014, 2014-2015, 2015-2016, 2016-2017, $793,462 $857,418 $923,670 $933,618 $946,596 (8.4% increase from 2011-2012) (8.0% increase from 2012-2013) (7.7% increase from 2013-2014) (1.1% increase from 2014-2015) (1.4% increase from 2015-2016) WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: President Bruce Shepard by Provost Catherine Riordan DATE: June 8, 2012 SUBJECT: Approval of Other Academic Program Fees PURPOSE: Action Item Purpose of Submittal: Approval of Other Academic Program Fees for Extended Education Programs and Other Programs: Other Academic Program Fees include tuition fees for Summer Session as well as a variety of extended education and other academic programs. At its December 2011 meeting, the Board approved 2012 Summer Session Fees. Other Academic Program Fees for extended education and other programs have been developed over the past few months and are now ready for Board approval. Other Academic Program Fees are fees paid by students enrolling in extended education programs primarily through Western’s Extended Education (EE). Other Academic Program Fees are: CONTINUING EDUCATION PROGRAMS AND COURSES tuition and fees are assessed at a level to support these self-sustaining academic programs. DEGREE PROGRAMS VIA EXTENDED EDUCATION tuition and fees are assessed at a level to support these self-sustaining academic programs. SUMMER SESSION tuition and fee increases are limited to academic year tuition increase. Annual fee increases for all of these programs are limited to projected program costs. These fees were reviewed by the Academic Fee Committee, the Budget Working Group and President’s Council. Proposed Motion: MOVED, that the Board of Trustees of Western Washington University, upon the recommendation of the President, approve the attached 20122013 Other Academic Program fee schedule. Supporting Information Attached fee schedule WESTERN WASHINGTON UNIVERSITY 2012- 2013 14-May-12 Other Academic Program Fees FUND: Fund Title, Department Fee Title 2011-12 Fee 2012-13 Proposed Fee Change Amount Change Percent Change Academic Affairs 22041: Intensive English Program, Provost/Other Programs Continuing Education Programs and Courses Student Fee Per Quarter 2,250.00 Per quarter 2,350.00 Per quarter Increase in fee 100.00 4.44% Continuing Education Programs and Courses Summer Tuition 2,120.00 Per quarter 2,210.00 Per quarter Increase in fee 90.00 4.25% 8.00 per credit 9.00 per credit Increase to fee 1.00 12.50% Degree Programs via EESP Graduate Course Workshop 295.00 per credit 328.00 per credit Increase to fee 33.00 11.19% Degree Programs via EESP Undergraduate Course Workshop 235.00 per credit 262.00 per credit Increase to fee 27.00 11.49% 8.00 per credit 9.00 per credit Increase to fee 1.00 12.50% Degree Programs via EESP Graduate Course Workshop 295.00 per credit 328.00 per credit Increase to fee 33.00 11.19% Degree Programs via EESP Undergraduate Course Workshop 235.00 per credit 262.00 per credit Increase to fee 27.00 11.49% 8.00 per credit 9.00 per credit Increase to fee 1.00 12.50% Degree Programs via EESP Graduate Course Workshop 295.00 per credit 328.00 per credit Increase to fee 33.00 11.19% Degree Programs via EESP Undergraduate Course Workshop 235.00 per credit 262.00 per credit Increase to fee 27.00 11.49% 8.00 per credit 9.00 per credit Increase to fee 1.00 12.50% 25104: Elementary Education, Extended Education & Summer Programs Degree Programs via EESP Extended Student Service Fee 25107: Educational Administration, Extended Education & Summer Programs Degree Programs via EESP Extended Student Service Fee 25110: Vehicle Design, Extended Education & Summer Programs Degree Programs via EESP Extended Student Service Fee 25111: CSD - Comm. Science & Disorders, Extended Education & Summer Programs Degree Programs via EESP Extended Student Service Fee University Planning and Budgeting Page 1 of 3 FUND: Fund Title, Department Fee Title 2011-12 Fee 2012-13 Proposed Fee Change Amount Change Percent Change Academic Affairs Degree Programs via EESP Graduate Course Workshops 295.00 per credit 328.00 per credit Increase to fee 33.00 11.19% Degree Programs via EESP Undergraduate Course Workshop 235.00 per credit 262.00 per credit Increase to fee 27.00 11.49% 8.00 per credit 9.00 per credit Increase to fee 1.00 12.50% Degree Programs via EESP Graduate Course Workshop 295.00 per credit 328.00 per credit Increase to fee 33.00 11.19% Degree Programs via EESP Undergraduate Course Workshop 235.00 per credit 262.00 per credit Increase to fee 27.00 11.49% 356.00 per credit 374.00 per credit Increase to fee 18.00 5.06% 8.00 per credit 9.00 per credit Increase to fee 1.00 12.50% 8.00 per credit 9.00 per credit Increase to fee 1.00 12.50% Degree Programs via EESP Graduate Course Workshop 295.00 per credit 328.00 per credit Increase to fee 33.00 11.19% Degree Programs via EESP Undergraduate Course Workshop 235.00 per credit 262.00 per credit Increase to fee 27.00 11.49% 8.00 per credit 9.00 per credit Increase to fee 1.00 12.50% 25112: Environmental Studies, Extended Education & Summer Programs Degree Programs via EESP Extended Student Service Fee 25113: MIMSUP - Shannon Pt., Extended Education & Summer Programs Continuing Education Programs and Courses Undergraduate Course Workshop 25114: Professional Certificate, Extended Education & Summer Programs Continuing Education Programs and Courses Extended Student Service Fee 25115: Off-Campus Student Teaching, Extended Education & Summer Programs Degree Programs via EESP Extended Student Service Fee 25120: AY Self-Sustaining Programming, Extended Education & Summer Programs Continuing Education Programs and Courses Human Services - Extended Student Service Fee Continuing Education Programs and Courses Human Services - Graduate Course Workshop 295.00 per credit 328.00 per credit Increase to fee 33.00 11.19% Continuing Education Programs and Courses Human Services - Undergraduate Course Workshop 235.00 per credit 262.00 per credit Increase to fee 27.00 11.49% University Planning and Budgeting Page 2 of 3 FUND: Fund Title, Department Fee Title 2011-12 Fee 2012-13 Proposed Fee Change Amount Change Percent Change Academic Affairs Continuing Education Programs and Courses Non-Resident Graduate course/workshop Continuing Education Programs and Courses Non-Resident Undergraduate course/workshop Continuing Education Programs and Courses Resident Graduate course/workshop Continuing Education Programs and Courses Resident Undergraduate course/workshop 226 - 244 per credit TBD once AY13 state rate are set Increase to fee 217.00 per credit TBD once AY13 state rates are set Increase to fee 216 - 234 per credit TBD once AY13 state rates are set Increase to fee 206.00 per credit TBD once AY13 state rates are set Increase to fee 115.00 per credit 128.00 per credit Increase to fee 13.00 11.30% 8.00 per credit 9.00 per credit Increase to fee 1.00 12.50% 25304: Independent Learning, Extended Education & Summer Programs Continuing Education Programs and Courses Correspondence 25306: Professional Development, Extended Education & Summer Programs Continuing Education Programs and Courses Extended Student Service Fee Continuing Education Programs and Courses Graduate Course Workshop 295.00 per credit 328.00 per credit Increase to fee 33.00 11.19% Continuing Education Programs and Courses Undergraduate Course Workshop 235.00 per credit 262.00 per credit Increase to fee 27.00 11.49% University Planning and Budgeting Page 3 of 3 WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: President Bruce Shepard by Vice President Richard Van Den Hul DATE: June 8, 2012 SUBJECT: 2013-2015 CAPITAL BUDGET REQUEST AND 2013-2023 CAPITAL PLAN PURPOSE: Action item Purpose of Submittal: Capital Budget request requirement of the Office of Financial Management. Proposed Motion: MOVED, that the Board of Trustees of Western Washington University, upon the recommendation of the President, approves a 2013-2015 Capital Budget Request from State-appropriated funding sources of $112,360,000. Supporting Information: Supporting information is attached. WESTERN WASHINGTON UNIVERSITY Board of Trustees June 8, 2012 2013-2015 CAPITAL BUDGET REQUEST and 2013-2023 CAPITAL PLAN Introduction The following information is provided to the Board of Trustees as support documentation for the University’s 2013-2015 Capital Budget Request. At the April 2012 Board meeting, a draft of the Capital Budget Plan and Request was submitted to the Board along with information on how the Capital Plan and Budget Request were developed over the last two years. Information on the proposed items being requested for the 2013-2015 biennium was also included. Since that meeting, the Vice Presidents have met, considered additional input from the campus, including the University Planning and Resources Council (a sub-committee of the Faculty Senate), and modified the final 2013-2023 Capital Plan and 2013-2015 Capital Budget request to include the most important and necessary projects in the 2013-2015 request and re-prioritized some of the future biennia projects. The estimated costs of some of the projects were also refined since the April meeting based on additional information and analysis. For the 2013-2015 biennium, Western Washington University proposes a total capital funding request of $112,360,000 from State-appropriated funding sources. Following are descriptions of the projects being requested as agreed to by the Vice Presidents and submitted to the Board of Trustees for the June 2012 meeting. 2013-2015 Major and Intermediate Capital Project Requests (See attached 2013-2015 Capital Request & 2013-2023 Capital Plan) Carver Academic Facility Renovation – Construction The 10-year plan recommends that the Carver Academic Facility be the highest ranking major capital project requested by the University. Design funding was received in 2011-2013. The need to renovate the Carver facility has been long-standing and this request is for construction funding. This renovation will begin to meet the critical needs for more instructional capacity for departmental programs and general University use. It will also provide much needed infrastructure enhancements. The mechanical, electrical and life safety systems have exceeded their useful life with some existing equipment dating back to the original 1936 construction. Building systems are currently costly to maintain and parts are often difficult to obtain or unavailable. The second floor spaces in Carver do not currently meet ADA access requirements. The redeveloped building, along with modest additions, will improve efficiency and accommodate the current unmet needs of students, staff and faculty. 1 GATEWAY COMPLEX (Academic Services & Performing Arts Facility) – Design The project title has been changed to better describe the overall project and reflect the incorporation of a 358 space parking structure adjacent to the facility. Design funding for the Gateway Complex (Academic Services & Performing Arts Facility) is included in the 2013-2015 capital request. This project proposes to construct a building of approximately 98,000 square feet on the land presently occupied by High Street Hall, Parking Lots 11G and 25G and Canada House. While High Street Hall will likely be demolished, options for the removal of Canada House are still being considered. The building would accommodate the following functions: • College of Fine and Performing Arts: Programmatic needs include a medium-sized performance space to accommodate music, theater and dance performances and dance program space, Western Gallery, multi-media classroom, theater classroom, costume lab, soundstage/recording studio, administrative offices and support spaces. • Center for Canadian-American Studies: Center offices and support spaces. • Admissions – New Student Services/Family Outreach: Offices, interview rooms and support spaces to accommodate a centrally located, store-front access for students, potential students and their parents. High Street offers an exceptional combination of central campus location, high visibility and direct access to public transportation, pedestrian and bicycle corridors. The site is challenged for its lack of high density parking in close proximity which is now being addressed as part of this project. This longstanding issue has impeded both our function as a University and our relationship with the community. Interdisciplinary Science Facility – Predesign The plan recommends that the University’s next major building be the Interdisciplinary Science Facility. We are considering a progressive model that is increasingly being used today in American higher education where intensive science use is concentrated within robust, adaptable and highly flexible facilities. Older science buildings such as our Environmental Studies Building will be devolved over time to less intensive, general use. As is common with the new paradigm of science buildings, the space is a reflection of the dynamic, crossdisciplinary research and teaching that occurs within; the space readily adapts to the needs of a changing world and work place. The Interdisciplinary Science Facility will draw from the strong interdisciplinary history of the Huxley College of the Environment and the collaborative work of the College of Sciences and Technology. Western’s state mandated performance targets call for a 14% increase in science related degrees between now and 2014. Comprehensive Exterior Renovation of Performing Arts Center (Design/Construction) Over the years, the large stucco wall of the Concert Hall that faces Bellingham Bay has developed cracks and water staining. The soffits are peeling. The building brick walls allow moisture to penetrate, primarily at the caulking joints and brick mortar, and the wood windows need resealing and refinishing to avoid rot. This project would include: repairing the stucco; 2 selective tuck-pointing (or replacing of damaged mortar between bricks); and, complete brick sealing and recaulking joints. It would also include replacing all single pane steel windows with insulated systems and resealing and restaining the Music Library wood feature windows facing the PAC Plaza. North Campus Utility Upgrade (Design/Construction) This project would upgrade the existing north campus 4,160 volt electrical distribution system to a looped 12,470 volt system per the 2007 Utilities Master Plan. The existing distribution system is a radial feed system where power can only come from one direction. A failure in the existing system has the potential of impacting facilities downstream of the failure for a significant period of time. By switching to a looped system, the power can come to a facility from either direction, minimizing its down time. Buildings connected to this system in this area are Old Main, Mathes Hall, Nash Hall, Higginson Hall and Edens Halls (both North and South). Classroom and Lab Upgrades This project was shifted from future biennia to 2013-2015 to be included in the request for this biennium. This is a continuation of the University’s plan to renovate older under-utilized classrooms and labs throughout academic disciplines to create highly functional, technology enhanced, teaching and learning spaces for students and faculty. Storm Water Mitigation This project was shifted to the 2015-2017 biennium to better align it with the results of a parking and circulation study of campus. Minor Capital Request Items As in previous biennial requests, our Minor Works Preservation and Minor Works Program omnibus categories are for requests for projects ranging in size from $25,000 to $2,000,000. These projects are critical to our on-going capital program. Historically, the projects include roofing replacements, exterior renewal, fire alarm upgrades, office renovations, the correction of safety hazards, disabled access, security of physical assets, etc. 3 Western Washington University 2013-2015 CAPITAL REQUEST & 2013-2023 CAPITAL PLAN As submitted for BOT action June 2012 2013-2015 2015-2017 2017-2019 2019-2021 2021-2023 PROJECT TITLE Biennium Biennium Biennium Biennium Biennium 1 MINOR WORKS - PRESERVATION 13,479,000 14,290,000 15,145,000 16,055,000 17,000,000 2 MINOR WORKS - PROGRAM 9,900,000 10,494,000 11,124,000 11,791,000 12,499,000 3 Carver Academic Renovation 69,500,000 4 Gateway Complex (Academic Services & Performing Arts Fac.) 7,235,000 61,775,000 5 Interdisciplinary Science Facility 500,000 9,784,000 83,503,000 6 Comprehensive Exterior Renovation PAC 3,082,000 7 North Campus Utility Upgrade 3,764,000 8 Classroom & Lab Upgrades 4,900,000 9 Wilson Academic Renovation & Expansion 400,000 5,000,000 55,000,000 10 Storm Water Mitigation 4,889,000 11 12 Steam System Partial Replacement Waterfront Land Acquisition/ Waterfront Community Learning Ctr 3,000,000 7,600,000 400,000 5,000,000 40,000,000 13 Southwest Campus Roadway and Parking Revisions 650,000 6,500,000 37,000,000 14 Environmental Studies Center Renovation 300,000 3,000,000 30,000,000 15 Old Main Preservation 250,000 3,500,000 132,596,000 99,999,000 Univ. Priority TOTAL Color Key - Predesign - Design - Construction - Intermediate - land acq. 112,360,000 112,632,000 120,722,000 WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: President Bruce Shepard by: Vice President Rich Van Den Hul, Business and Financial Affairs Sr. Vice President Eileen Coughlin, Enrollment and Student Services DATE: June 8, 2012 SUBJECT: Resolution No. 2012-03 Authorizing the Sale of Housing & Dining System Revenue Refunding Bonds, Series 2012/2013 to Refinance the Housing & Dining System Revenue and Refunding Bonds, Series 2003 PURPOSE: Action Item Purpose of Submittal: To authorize the sale of Housing & Dining System Revenue Refunding Bonds, Series 2012/2013 to refinance the Housing & Dining System Revenue and Refunding Bonds, Series 2003, to achieve annual cost savings. Supporting Information: The issuance and sale of Housing and Dining System Revenue and Refunding Bonds requires the approval of the Board of Trustees. A Resolution is proposed for the sale of Bonds, including delegation of authority to the President or Vice President for Business and Financial Affairs to determine the method, timing and details of the Bond sale. Currently the market conditions are such that refunding the Housing & Dining System Revenue and Refunding Bonds, Series 2003 could result in cost savings of approximately $68,700 per year (as of May 8, 2012 market rates). Resolution No. 2012-03 will authorize the President or Vice President for Business and Financial Affairs to sign the necessary documents for the execution and delivery of the bonds and make other determinations relative to the bond refinancing, including the method of sale, as described in the Bond Resolution and summarized in the attachment. Proposed Motion: MOVED that the Board of Trustees of Western Washington University, upon the recommendation of the President, adopt Resolution No. 2012-03 (attached) authorizing the sale of Housing & Dining System Revenue Refunding Bonds, Series 2012/2013, including delegation of authority as outlined in the Bond Resolution. Supporting Information (Attached): Summary of Financing Terms Resolution No. 2012-03 Authorizing the Sale of Housing & Dining System Revenue Refunding Bonds, Series 2012/2013 to Refinance the Housing & Dining System Revenue and Refunding Bonds, Series 2003 Housing and Dining Housing and Dining System Revenue Refunding Bonds, Series Resolution 2012/2013 WESTERN WASHINGTON UNIVERSITY Board of Trustees June 8, 2012 HOUSING AND DINING SYSTEM REVENUE BONDS RESOLUTION – No. 2012-03 Summary of Financing Terms Overview It is proposed that Bonds be issued to refinance the Housing and Dining System Revenue and Refunding Bonds, Series 2003, for the purpose of locking in lower interest rates and debt service savings, and to pay costs of issuance of the Bonds. Bonds to be Refunded Housing and Dining System Revenue and Refunding Bonds, Series 2003 Original Par $15,180,000 Outstanding Par $10,850,000 Callable Par $9,480,000 First Call Date 4/1/2013 Interest Rates 3.75 – 4.65% Average Interest Rate 4.38% Final Maturity 10/1/2023 Sale of Bonds Authority to determine the details of the bonds and bond sale will be delegated to the President or Vice President for Business and Financial Affairs. Delegated actions include the following: Establish the method of sale (competitive or negotiated); Determine whether a debt service reserve fund is required and in what amount; Approve final interest rates; Approve maturity dates and principal maturing each year; Approve aggregate principal amount of bonds; and Approve redemption rights. Delegated authority will expire December 31, 2013. Security for Bonds: A lien on the revenue of the Housing and Dining System, and related revenue. Use of Proceeds: To refund the outstanding Housing and Dining System Revenue Bonds, Series 2003, in order to reduce overall debt service. Size of Bond Issue: Up to $9,900,000. The final size will be based on the amount required to prepay the 2003 bonds and pay all costs of issuance. Term of Bonds: Final maturity is October 1, 2023, consistent with the 2003 Bonds. Interest Rates: The savings estimates are based on a TIC of 2.40% (current market as of May 8, 2012). The average interest rate on the refunded bonds is 4.38%. Minimum Savings Target: The Bond Resolution establishes the net present value (NPV) aggregate savings (after payment of all costs of issuance) with respect to all Refunded Bonds to be at least equal to five percent (5.0%) of the principal amount of the Refunded Bonds. Current market estimates result in NPV savings of 7.61% which would produce estimated average annual savings of $68,700. If interest rates increase approximately 0.40% (from 2.40% to 2.80%), the savings would equal 5% NPV. Estimated Savings from Current Refunding (Assumes 7/12/2012 Bond Closing) NPV Average Annual TIC% NPV% Savings Savings Current Market -25bps Current Market Scale* Current Market +25bps Current Market +50bps 2.15% 2.40% 2.66% 2.91% $864,950 711,550 562,250 417,100 9.37% 7.61% 5.93% 4.33% $82,300 68,700 55,050 41,200 * Current Market as of May 8, 2012 Proposed Sale Date: The bond sale is expected to be scheduled between June 2012 and April 2013, and timing will be determined based upon market conditions. Financial Advisor: SDM Advisors, Inc. (Susan Musselman) Bond Counsel: K&L Gates (Cynthia Weed) WESTERN WASHINGTON UNIVERSITY BOARD OF TRUSTEES RESOLUTION NO. 2012-03 AUTHORIZING THE SALE OF HOUSING & DINING SYSTEM REVENUE REFUNDING BONDS, SERIES 2012/2013 TO REFINANCE THE HOUSING & DINING SYSTEM REVENUE AND REFUNDING BONDS, SERIES 2003 WHEREAS, the Western Washington University Board of Trustees (Board) intends to proceed towards the sale of Housing and Dining System Revenue Refunding Bonds, Series 2012/2013 to refinance the Housing and Dining System Revenue and Refunding Bonds, Series 2003, and WHEREAS, market conditions are such that refunding the Housing & Dining System Revenue and Refunding Bonds Series 2003 could result in cost savings of approximately $68,700 per year (as of May 8, 2012 market rates), and WHEREAS, the Board is authorized by law to delegate its authority as it deems appropriate by resolution; NOW, THEREFORE, Be it Resolved, The Board of Trustees hereby delegates authority to President Bruce Shepard and Richard Van Den Hul, Vice President for Business and Financial Affairs, to: 1. Sign the necessary documents for the execution and delivery of the bonds and make other determinations relative to the bond refinancing, including the method of sale; 2. Approve the selection of an underwriter for a negotiated sale of the bonds; 3. Proceed with rating agency applications as they deem necessary and appropriate; and 4. Approve a preliminary official statement with respect to the bonds and deem it final in accordance with Securities and Exchange Commission Rule 15c-2(12). Additional terms of the Bonds are set forth in Master Resolution No. 97-90 and Series Resolution No. 2012-03, each of which is incorporated by reference herein. DATED June 8, 2012. __________________________ Dennis Madsen, Chair ATTEST: _____________________________ Betti Fujikado, Secretary SERIES RESOLUTION WESTERN WASHINGTON UNIVERSITY RESOLUTION NO. 2012-03 A RESOLUTION OF THE BOARD OF TRUSTEES OF WESTERN WASHINGTON UNIVERSITY; AUTHORIZING THE ISSUANCE AND SALE OF HOUSING AND DINING SYSTEM REVENUE REFUNDING BONDS OF THE UNIVERSITY IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $9,900,000 FOR THE PURPOSE OF REFUNDING CERTAIN OUTSTANDING HOUSING AND DINING SYSTEM REVENUE BONDS OF THE UNIVERSITY; PROVIDING FOR THE REDEMPTION OF THE OUTSTANDING BONDS TO BE REFUNDED; AUTHORIZING THE SALE OF THE BONDS AND THE PREPARATION OF A PRELIMINARY OFFICIAL STATEMENT; AND AUTHORIZING THE DESIGNATED UNIVERSITY REPRESENTATIVE TO MAKE CERTAIN DETERMINATIONS AND APPOINTMENTS WITH RESPECT TO THE BONDS UNDER THE TERMS AND CONDITIONS SET FORTH HEREIN. ADOPTED: JUNE 8, 2012 Prepared by: K&L GATES LLP Seattle, Washington WESTERN WASHINGTON UNIVERSITY RESOLUTION NO. 2012-03 TABLE OF CONTENTS* Page Section 1. Section 2. Section 3. Section 4. Section 5. Section 6. Section 7. Section 8. Section 9. Section 10. Section 11. Section 12. Section 13. Section 14. Section 15. Section 16. Section 17. Section 18. Section 19. Exhibit A Definitions............................................................................................................. 4 Compliance with Parity Conditions .................................................................... 11 Authorization of Series 2012/2013 Bonds; Bond Details ................................... 12 Right of Prior Redemption and Purchase............................................................ 13 Place and Medium of Payment ........................................................................... 17 Registration ......................................................................................................... 18 Series 2012/2013 Bond Fund .............................................................................. 23 Application of Proceeds of Series 2012/2013 Bonds.......................................... 28 Call For Redemption of Refunded Bonds ........................................................... 29 Defeasance .......................................................................................................... 31 Tax Covenants .................................................................................................... 31 Form of Series 2012/2013 Bonds and Registration Certificate .......................... 34 Execution ............................................................................................................ 36 Defaults and Remedies ....................................................................................... 37 Designation of the Refunded Bonds; Sale of Series 2012/2013 Bonds .............. 38 Undertaking to Provide Ongoing Disclosure ...................................................... 42 Bond Insurance; Surety Bond ............................................................................. 42 Severability ......................................................................................................... 43 Effective Date ..................................................................................................... 44 Form of Escrow Agreement * This Table of Contents and the Cover Page are for convenience of reference and are not intended to be a part of this Series Resolution. -i- SERIES RESOLUTION WESTERN WASHINGTON UNIVERSITY RESOLUTION NO. 2012-03 A RESOLUTION OF THE BOARD OF TRUSTEES OF WESTERN WASHINGTON UNIVERSITY; AUTHORIZING THE ISSUANCE AND SALE OF HOUSING AND DINING SYSTEM REVENUE REFUNDING BONDS OF THE UNIVERSITY IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $9,900,000 FOR THE PURPOSE OF REFUNDING CERTAIN OUTSTANDING HOUSING AND DINING SYSTEM REVENUE BONDS OF THE UNIVERSITY; PROVIDING FOR THE REDEMPTION OF THE OUTSTANDING BONDS TO BE REFUNDED; AUTHORIZING THE SALE OF THE BONDS AND THE PREPARATION OF A PRELIMINARY OFFICIAL STATEMENT; AND AUTHORIZING THE DESIGNATED UNIVERSITY REPRESENTATIVE TO MAKE CERTAIN DETERMINATIONS AND APPOINTMENTS WITH RESPECT TO THE BONDS UNDER THE TERMS AND CONDITIONS SET FORTH HEREIN. WHEREAS, Western Washington University, a regional university of the State of Washington (the “University”), maintains a housing and dining system (defined in the hereinafter referred to Master Resolution as the “System”) which is in need of expansion, renovation and improvement from time to time; and WHEREAS, the University has authorized the issuance of housing and dining system revenue bonds in one or more series pursuant to Resolution No. 97-09, adopted on December 5, 1997 (the “Master Resolution”); and WHEREAS, the bonds authorized under the Master Resolution are payable from Net Revenues (as such term is defined in the Master Resolution); and WHEREAS, the University has issued and has outstanding bonds secured by a parity lien on the revenues of the University (the “Outstanding Parity Bonds”), as follows: Resolution Number 97-09 and 98-01 Date of Issue Designation 2/1/98 Housing and Dining System Junior Lien Revenue Refunding Bonds, 1998 Series A Original Principal Amount $17,225,000 Currently Outstanding $10,850,000 Final Maturity 10/1/22 Housing and Dining System Revenue and Refunding Bonds, Series 2003 $15,180,000 $10,175,000 10/1/23 97-09 and 2005-01 5/24/05 Housing and Dining System Revenue Refunding Bonds, Series 2005 $12,580,000 $11,485,000 6/1/26 97-09 and 2006-02 2/23/06 Housing and Dining System Revenue Bonds, Series 2006 $ 9,620,000 $ 7,515,000 4/1/26 97-09 and 2009-09 6/30/09 Housing and Dining System Revenue Bonds, Series 2009A and Series 2009B $14,280,000 $13,730,000 4/1/34 97-09 and 5/7/03 2003-03 ; and WHEREAS, under the terms of the Master Resolution, the University is authorized to issue additional bonds having a parity of lien on Net Revenues with the Outstanding Parity Bonds; and WHEREAS, the University has outstanding its Housing and Dining System Revenue and Refunding Bonds, Series 2003, issued under date of May 7, 2003, pursuant to Resolution Nos. 97-09 and 2003-03, maturing in principal amounts and bearing as follows: -2- Maturity Years (October 1) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Principal Amounts $ 695,000 735,000 755,000 785,000 815,000 855,000 885,000 915,000 970,000 1,025,000 880,000 860,000 Interest Rates 3.650% 3.750 3.850 4.000 4.000 4.125 4.250 4.350 4.400 4.500 4.600 4.650 (the “2003 Bonds”); and WHEREAS, the 2003 Bonds maturing on and after October 1, 2013 (hereinafter defined as the “Refunded Bonds”), are subject to optional redemption at the option of the University in whole or in part on any date on or after April 1, 2013 at par; and WHEREAS, the University has been advised that substantial debt service savings may be obtained by refunding the “Refunded Bonds” through the issuance of revenue refunding bonds in the aggregate principal amount of not to exceed $9,900,000, herein authorized to be issued under the Master Resolution (hereinafter defined as the “Series 2012/2013 Bonds”); and WHEREAS, the Board wishes to delegate authority to the Designated University Representative to determine the manner of sale of the Series 2012/2013 Bonds, the approval of the final principal amount of the bonds, interest rates, principal maturities and redemption provisions of such bonds to be fixed under such terms and conditions as are approved by this Series Resolution; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF WESTERN WASHINGTON UNIVERSITY, as follows: -3- Section 1. Definitions. Unless otherwise defined herein, the terms used in this Series Resolution, including the preamble hereto, which are defined in the Master Resolution shall have the meanings set forth in the Master Resolution. In addition, the following terms shall have the following meanings in this Series Resolution: Acquired Obligations means the Government Obligations acquired by the University under the terms of this Series Resolution and the Escrow Agreement to effect the defeasance and refunding of the Refunded Bonds. Approved Bid means the winning bid submitted for the Series 2012/2013 Bonds if the Series 2012/2013 Bonds are sold by Competitive Sale. Beneficial Owner means any person that has or shares the power, directly or indirectly, to make investment decisions concerning ownership of any Series 2012/2013 Bonds (including persons holding Series 2012/2013 Bonds through nominees, depositories or other intermediaries). Bond Insurance Policy means the municipal bond insurance policy issued by the Insurer insuring the payment when due of the principal of and interest on the Series 2012/2013 Bonds as provided therein. Bond Purchase Contract means, if the Series 2012/2013 Bonds shall be sold by Negotiated Sale, the purchase contract relating to the Series 2012/2013 Bonds between the University and the Underwriter. Call Date means April 1, 2013. Code means the Internal Revenue Code of 1986, as amended, and shall include all applicable regulations and rulings relating thereto. -4- Competitive Sale means the process by which the Series 2012/2013 Bonds are sold through the public solicitation of bids from underwriting firms. Disclosure Agreement means the commitment of the University to comply with the ongoing disclosure requirements of the Rule. DTC means The Depository Trust Company, New York, New York, a limited purpose trust company organized under the laws of the State of New York, as depository for the Series 2012/2013 Bonds pursuant to Section 6 hereof. Escrow Agent means the escrow agent as selected by the Designated University Representative in accordance with Section 8 of this Series Resolution. Escrow Agreement means the Escrow Deposit Agreement to be dated as of the date of closing and delivery of the Series 2012/2013 Bonds substantially in the form attached hereto as Exhibit A. Future Parity Bonds means those revenue bonds or other revenue obligations which may be issued by the University in the future as Parity Bonds. Government Obligations means obligations defined as such in Chapter 39.53 RCW as now or hereafter amended. Insurer means such bond insurance company, if any, from which a Bond Insurance Policy may be acquired for the Series 2012/2013 Bonds, in accordance with this Series Resolution. Letter of Representations means a blanket issuer letter of representations from the University to DTC. MSRB means the Municipal Securities Rulemaking Board or any successor to its functions. Until otherwise designated by the MSRB or the SEC, any information, reports or -5- notices submitted to the MSRB in compliance with the Rule are to be submitted through the MSRB’s Electronic Municipal Market Access system (“EMMA”), currently located at www.emma.msrb.org. Negotiated Sale means the process by which the Series 2012/2013 Bonds are sold by negotiation to one or more underwriting firms selected by the Designated University Representative. Net Proceeds when used with reference to the Series 2012/2013 Bonds, means the face amount of the Series 2012/2013 Bonds, plus accrued interest and original issue premium, if any, and less original issue discount and proceeds deposited into the Series 2012/2013 Reserve Account, if any. Official Notice of Sale means, if the Series 2012/2013 Bonds shall be sold by Competitive Sale, the notice of bond sale authorized to be given in Section 15 of this Series Resolution. Outstanding Parity Bonds means the outstanding parity bonds identified in the recitals of this Series Resolution. Parity Bonds means any revenue obligations issued by the University pursuant to the Master Resolution, which Parity Bonds have a lien upon the Net Revenues for the payment of the principal thereof and interest thereon equal to the lien created upon Net Revenues for the payment of the principal of and interest on the Series 2012/2013 Bonds, and the term “Parity Bonds” shall mean and include the Outstanding Parity Bonds, the Series 2012/2013 Bonds and any Future Parity Bonds. Private Person means any natural person engaged in a trade or business or any trust, estate, partnership, association, company or corporation. -6- Private Person Use means the use of property in a trade or business by a private person if such use is other than as a member of the general public. Private Person Use includes ownership of the property by the private person as well as other arrangements that transfer to the private person the actual or beneficial use of the property (such as a lease, management or incentive payment contract or other special arrangement) in such a manner as to set the private person apart from the general public. Use of property as a member of the general public includes attendance by the private person at municipal meetings or business rental of property to the private person on a day-to-day basis if the rental paid by such private person is the same as the rental paid by any private person who desires to rent the property. Use of property by nonprofit community groups or community recreational groups is not treated as Private Person Use if such use is incidental to the governmental uses of property, the property is made available for such use by all such community groups on an equal basis and such community groups are charged only a de minimis fee to cover custodial and utility expenses. Qualified Insurance means any non-cancellable municipal bond insurance policy or surety bond issued by any insurance company licensed to conduct an insurance business in any state of the United States (or by a service corporation acting on behalf of one or more such insurance companies) (A) which insurance company or companies, as of the time of issuance of such policy or surety bond, are rated in one of the two highest Rating Categories by Moody’s Investors Service and Standard & Poor’s Ratings Group or their legal successors for unsecured debt or insurance underwriting or claims paying ability or (B) by issuing its policies causes obligations insured thereby to be rated in one of the two highest Rating Categories. Qualified Letter of Credit means any irrevocable letter of credit issued by a financial institution, which institution maintains an office, agency or branch in the United States and as of -7- the time of issuance of such letter of credit, is rated in one of the three highest Rating Categories by Moody’s Investors Service and Standard & Poor’s Ratings Group or their legal successors, if any. Rating Agency means Moody’s Investors Service or Standard & Poor’s Ratings Group. Rating Category means the generic rating categories of the Rating Agency, without regard to any refinement or gradation of such rating category by a numerical modifier or otherwise. Refunded Bonds means any or all of the 2003 Bonds maturing on and after October 1, 2013. Refunding Candidates means the 2003 Bonds maturing on and after October 1, 2013. Registered Owner means the person named as the registered owner of a Series 2012/2013 Bond in the Bond Register. The Registered Owner shall be deemed to be the owner of all the Series 2012/2013 Bonds, except for the purposes of Section 16 of this Series Resolution. Registrar means, collectively, the fiscal agency of the State of Washington in New York, New York, appointed by this Series Resolution for the purposes of registering and authenticating the Series 2012/2013 Bonds, maintaining the Bond Register, and effecting transfer of ownership of the Series 2012/2013 Bonds. Rule means Rule 15c2-12(b)(5) adopted by the SEC under the Securities Exchange Act of 1934, as the same may be amended from time to time. Savings Target means a dollar amount at least equal to five percent (5.0%) of the principal amount of the Refunded Bonds. SEC means the United States Securities and Exchange Commission. -8- Series 2012/2013 Bond Fund means the Western Washington University Housing and Dining System Revenue Bond Fund, Series 20__ created in the office of the Treasurer of the University by Section 7 of this Series Resolution. Series 2012/2013 Bonds means the Western Washington University, Housing and Dining System Revenue Refunding Bonds, Series 20__, authorized to be issued by Section 3 of this Series Resolution. Series 2012/2013 Debt Service Account means the account of that name created in the Series 2012/2013 Bond Fund by Section 7 of this Series Resolution. Series 2012/2013 Reserve Account means the account of that name, if any, created in the Series 2012/2013 Bond Fund by Section 7 of this Series Resolution. Series 2012/2013 Reserve Account Requirement means the amount, if any, specified in the Bond Purchase Contract if the Series 2012/2013 Bonds are sold by Negotiated Sale and/or by the University in the Official Notice of Sale if the Series 2012/2013 Bonds are sold by Competitive Sale. Surety Bond means the surety bond, if any, issued by the Insurer on the date of issuance and delivery of the Series 2012/2013 Bonds for the purpose of satisfying the Series 2012/2013 Reserve Account Requirement. Surety Bond Agreement means the agreement pursuant to which the Surety Bond is issued. System has the meaning given such term in the Master Resolution and in addition, the term “System” shall include all Residence Halls, Birnam Wood Apartments, Dining Commons, Viking Union, Lakewood Recreational Facility and the Commissary. -9- Term Bonds means any Series 2012/2013 Bonds designated as “Term Bonds” in the Bond Purchase Contract or Approved Bid for such Series 2012/2013 Bonds. Treasurer means the Vice President for Business and Financial Affairs of the University or any successor to the functions of such office, and also shall include any designee of the Treasurer for the performance of specific functions under this resolution. 2003 Bond Resolution means Resolution No. 2003-03 adopted on April 11, 2003 authorizing the 2003 Bonds. 2003 Bonds means the Housing and Dining System Revenue and Refunding Bonds, Series 2003 of the University issued pursuant to the 2003 Bond Resolution, issued under date of May 7, 2003, and presently outstanding in the aggregate principal amount of $10,175,000. Underwriter means the initial purchaser or representative of the purchasers (if more than one firm acts collectively with one or more additional underwriting firms) of the Series 2012/2013 Bonds. Rules of Interpretation. In this Series Resolution, unless the context otherwise requires: (a) The terms “hereby,” “hereof,” “hereto,” “herein, “hereunder” and any similar terms, as used in this Series Resolution, refer to this Series Resolution as a whole and not to any particular article, section, subdivision or clause hereof, and the term “hereafter” shall mean after, and the term “heretofore” shall mean before, the date of this Series Resolution; (b) Words of the masculine gender shall mean and include correlative words of the feminine and neuter genders and words importing the singular number shall mean and include the plural number and vice versa; -10- (c) Words importing persons shall include firms, associations, partnerships (including limited partnerships), trusts, corporations and other legal entities, including public bodies, as well as natural persons; (d) Any headings preceding the text of the several articles and Sections of this Series Resolution, and any table of contents or marginal notes appended to copies hereof, shall be solely for convenience of reference and shall not constitute a part of this Series Resolution, nor shall they affect its meaning, construction or effect; (e) All references herein to “articles,” “sections” and other subdivisions or clauses are to the corresponding articles, sections, subdivisions or clauses hereof. (f) Words importing the singular number include the plural number and vice versa. In this Series Resolution, the Treasurer is authorized to create a number of “funds” and/or “accounts.” In each case, the Treasurer may designate each such fund or account in his or her discretion as a fund or as an account, regardless of its designation in this Series Resolution. Section 2. Compliance with Parity Conditions. The University has reserved the right pursuant to the Master Resolution to issue Future Parity Bonds upon compliance with certain conditions set forth therein. The University hereby finds and determines, as required by Sections 5 and 6 of the Master Resolution as follows: First, the University has not been in default of its covenant under Section 7(a) of the Master Resolution for the immediately preceding year (year ending June 30, 2011); and Second, that the Maximum Annual Debt Service on all Outstanding Bonds after the issuance of the Series 2012/2013 Bonds shall not be greater than the Maximum Annual Debt Service were such refunding not to occur. -11- The Series 2012/2013 Bonds will not be issued unless the Designated University Representative certifies that the University has not been in default of its covenant under Section 7(a) of the Master Resolution for the immediately preceding year. The limitations contained and the conditions provided in the Master Resolution having been complied with or assured, the payments required herein to be made out of the Net Revenues to pay and secure the principal of and interest on the Series 2012/2013 Bonds shall constitute a lien and charge upon such Net Revenues equal in rank to the lien and charge thereon of the Outstanding Parity Bonds. Section 3. (a) Authorization of Series 2012/2013 Bonds; Bond Details. Authorization of the Series 2012/2013 Bonds. For the purpose of refunding the Refunded Bonds and thereby effecting a savings to the University, paying the cost of funding the Series 2012/2013 Reserve Account Requirement, if any, and paying costs of issuance of the Series 2012/2013 Bonds, the University shall issue its housing and dining system revenue refunding bonds in the aggregate principal amount of not to exceed $9,900,000. (b) Bond Details. The Series 2012/2013 Bonds shall be designated as “Western Washington University Housing and Dining System Revenue Refunding Bonds, Series 20__” (the “Series 2012/2013 Bonds”) shall be registered as to both principal and interest shall be in the denomination of $5,000 each, or any integral multiple thereof, provided that no Series 2012/2013 Bond shall represent more than one maturity; shall be numbered separately in the manner and with any additional designation as the Registrar deems necessary for purposes of identification, shall be dated and bear interest at the per annum rates, payable on the dates and maturing in principal amounts set forth in the Approved Bid or Bond Purchase Contract, pursuant to Section 15 of this Series Resolution. The Series 2012/2013 Bonds of any of the maturities may -12- be combined and issued as term bonds (“Term Bonds”), subject to mandatory redemption as provided in the Approved Bid or Bond Purchase Contract. Section 4. (a) Right of Prior Redemption and Purchase. Optional Redemption. The Series 2012/2013 Bonds may include provision for optional redemption on the dates, at the prices and under the terms set forth in the Bond Purchase Contract or Approved Bid approved by the Designated University Representative pursuant to Section 15. (b) Mandatory Redemption. The Series 2012/2013 Bonds shall be subject to mandatory redemption to the extent, if any, set forth in the Bond Purchase Contract or Approved Bid and as approved by the Designated University Representative pursuant to Section 15. (c) Purchase of Series 2012/2013 Bonds. The Series 2012/2013 Bonds may be purchased at any time, to the extent that such Series 2012/2013 Bonds are offered to the University at any price deemed reasonable by the Treasurer but only to the extent of Gross Revenue available after providing for the payments required by paragraphs first through sixth of Section 2(a) of the Master Resolution. (d) Selection of Series 2012/2013 Bonds for Redemption. As long as the Series 2012/2013 Bonds are held in book-entry only form, the maturities to be redeemed, if any, shall be selected by the University and, within a maturity, the selection of Series 2012/2013 Bonds of such series to be redeemed shall be made in accordance with the operational arrangements in effect at DTC. If the Series 2012/2013 Bonds are no longer held in uncertificated form, the selection of such Series 2012/2013 Bonds to be redeemed shall be made as provided in this subsection (d). If the University redeems at any one time fewer than all of the Series 2012/2013 Bonds having the same series and maturity date, the particular Series 2012/2013 Bonds or -13- portions of Series 2012/2013 Bonds of such series and maturity to be redeemed shall be selected by lot (or in such other manner determined by the Registrar) in increments of $5,000. In the case of a Series 2012/2013 Bond of a denomination greater than $5,000, the University and Registrar shall treat each Series 2012/2013 Bond as representing such number of separate Series 2012/2013 Bonds each of the denomination of $5,000 as is obtained by dividing the actual principal amount of such Series 2012/2013 Bond by $5,000. In the event that only a portion of the principal sum of a Series 2012/2013 Bond is redeemed, upon surrender of the such Series 2012/2013 Bond at the principal office of the Registrar there shall be issued to the Registered Owner, without charge therefor, for the then unredeemed balance of the principal sum thereof, at the option of the Registered Owner, a Series 2012/2013 Bond or Series 2012/2013 Bonds of like maturity and interest rate in any of the denominations herein authorized. (e) Notice of Redemption. (1) Official Notice. Unless waived by any owner of Series 2012/2013 Bonds to be redeemed, official notice of any such redemption (which notice, in the case of a conditional redemption, shall state that redemption is conditioned by the Registrar on the receipt of sufficient funds for redemption) shall be given by the Registrar on behalf of the University by mailing a copy of an official redemption notice by first class mail at least 20 days and not more than 60 days prior to the date fixed for redemption to the Registered Owner of the Series 2012/2013 Bond or Series 2012/2013 Bonds to be redeemed at the address shown on the Register or at such other address as is furnished in writing by such Registered Owner to the Registrar. All official notices of redemption shall be dated and shall state: (A) the redemption date, (B) the redemption price, -14- (C) if fewer than all Outstanding Series 2012/2013 Bonds are to be redeemed, the identification by series and maturity (and, in the case of partial redemption, the respective principal amounts) of the Series 2012/2013 Bonds to be redeemed, (D) that on the redemption date, provided that in the case of optional redemption the full amount of the redemption price is on deposit therefor, the redemption price will become due and payable upon each such Series 2012/2013 Bond or portion thereof called for redemption, and that interest thereon shall cease to accrue from and after said date, (E) the place where such Series 2012/2013 Bonds are to be surrendered for payment of the redemption price, which place of payment shall be the principal office of the Registrar, and (F) that the notice of redemption may be withdrawn and the proposed redemption of Series 2012/2013 Bonds cancelled if for any reason funds will not be available on the date fixed for redemption. Unless the University has revoked the notice of redemption, on or prior to any redemption date, the Treasurer shall deposit with the Registrar an amount of money sufficient to pay the redemption price of all the Series 2012/2013 Bonds or portions of Series 2012/2013 Bonds which are to be redeemed on that date. Failure to give notice as to redemption of any Series 2012/2013 Bond or any defect in such notice shall not invalidate redemption of any other Series 2012/2013 Bond. Notwithstanding the foregoing, if the Series 2012/2013 Bonds are then held in book-entry only form, notice of redemption to any Registered Owner or beneficial owner of Series 2012/2013 Bonds shall be given only in accordance with the operational arrangements then in effect at DTC but not less than twenty (20) days prior to the date of redemption. -15- (2) Effect of Notice; Series 2012/2013 Bonds Due. Official notice of redemption having been given as aforesaid, the Series 2012/2013 Bonds or portions of Series 2012/2013 Bonds so to be redeemed shall, on the redemption date (unless in the case of conditional redemption the conditions have not been fulfilled and the notice or redemption therefore withdrawn), become due and payable at the redemption price therein specified, and from and after such date such Series 2012/2013 Bonds or portions of Series 2012/2013 Bonds shall cease to bear interest. Upon surrender of such Series 2012/2013 Bonds for redemption in accordance with said notice, such Series 2012/2013 Bonds shall be paid by the Registrar at the redemption price. Installments of interest due on or prior to a mandatory redemption date shall be payable as herein provided for payment of interest. Upon surrender for any partial redemption of any Series 2012/2013 Bond, there shall be prepared for the Registered Owner a new Series 2012/2013 Bond or Series 2012/2013 Bonds of the same series and maturity in the aggregate amount of the unpaid principal. All Series 2012/2013 Bonds which have been redeemed shall be canceled and destroyed by the Registrar and shall not be reissued. (3) Additional Notice. In addition to the foregoing notice, further notice may be given by the University as set out below, but no defect in said further notice nor any failure to give all or any portion of such further notice shall in any manner defeat the effectiveness of a call for redemption if notice thereof is given as above prescribed. Each further notice of redemption given hereunder shall contain the information required above for an official notice of redemption plus (A) the CUSIP numbers of all Series 2012/2013 Bonds being redeemed; (B) the date of issue of the Series 2012/2013 Bonds as originally issued; (C) the rate of interest borne by each Series 2012/2013 Bond being redeemed; (D) the maturity date of each Series 2012/2013 Bond being redeemed; and (E) any other descriptive information needed to identify accurately the -16- Series 2012/2013 Bonds being redeemed. Each further notice of redemption may be sent at least twenty (20) before the redemption date to the Insurer, if any, and to each party entitled to receive notice pursuant to Section 16 of this Series Resolution, and to the original purchaser of the Series 2012/2013 Bonds or to its business successors, if any, and to such persons (including the MSRB who customarily at the time receive notices of redemption in accordance with rules promulgated by the SEC) and with such additional information as the Registrar deem appropriate, but such mailings shall not be a condition precedent to the redemption of such Series 2012/2013 Bonds. (4) Use of CUSIP Numbers. Upon the payment of the redemption price of Series 2012/2013 Bonds being redeemed, each check or other transfer of funds issued for such purpose shall bear the CUSIP number identifying, by maturity, the Series 2012/2013 Bonds being redeemed with the proceeds of such check or other transfer. (5) Amendment of Notice Provisions. The foregoing notice provisions of this Section 4, including but not limited to the information to be included in redemption notices and the persons designated to receive notices, may be amended by additions, deletions and changes in order to maintain compliance with duly promulgated regulations and recommendations regarding notices of redemption of municipal securities. Section 5. Place and Medium of Payment. The principal of, premium, if any, and interest on the Series 2012/2013 Bonds shall be payable in lawful money of the United States of America. Interest on the Series 2012/2013 Bonds shall be calculated on the basis of a 360-day year consisting of twelve 30-day months. For so long as all Series 2012/2013 Bonds are in fully immobilized form, such payments of principal and interest thereon shall be made as provided in the operational arrangements of DTC as referred to in the Letter of Representations. -17- In the event that the Series 2012/2013 Bonds are no longer in fully immobilized form, interest on the Series 2012/2013 Bonds shall be paid by check or draft mailed (or by wire transfer to a Registered Owner of such Series 2012/2013 Bonds in aggregate principal amount of $1,000,000 or more who so requests) to the Registered Owners of the Series 2012/2013 Bonds at the addresses for such Registered Owners appearing on the Bond Register on the 15th day of the month preceding the interest payment date. Principal and premium, if any, of the Series 2012/2013 Bonds shall be payable upon presentation and surrender of such Series 2012/2013 Bonds by the Registered Owners at the principal office of the Registrar. Section 6. (a) Registration. Registrar/Bond Register. The University hereby specifies and adopts the system of registration for the Series 2012/2013 Bonds as approved by the State Finance Committee of the State of Washington from time to time. The University shall cause a bond register to be maintained by the Registrar. So long as any Series 2012/2013 Bonds remain Outstanding, the Registrar shall make all necessary provisions to permit the exchange and registration of transfer of Series 2012/2013 Bonds at its principal corporate trust office. The Registrar may be removed at any time at the option of the Treasurer upon prior notice to the Registrar, the Insurer, and a successor Registrar appointed by the Treasurer. No resignation or removal of the Registrar shall be effective until a successor shall have been appointed and until the successor Registrar shall have accepted the duties of the Registrar hereunder. The Registrar is authorized, on behalf of the University, to authenticate and deliver Series 2012/2013 Bonds transferred or exchanged in accordance with the provisions of such Series 2012/2013 Bonds and this Series Resolution and to carry out all of the Registrar’s powers and duties under this Series Resolution. The Registrar -18- shall be responsible for its representations contained in the Certificate of Authentication on the Series 2012/2013 Bonds. (b) Registered Ownership. The University and the Registrar, each in its discretion, may deem and treat the Registered Owner of each Series 2012/2013 Bond as the absolute owner thereof for all purposes (except as provided in Section 16 of this resolution), and neither the University nor the Registrar shall be affected by any notice to the contrary. Payment of any such Series 2012/2013 Bond shall be made only as described in Section 5 hereof, but such Series 2012/2013 Bond may be transferred as herein provided. All such payments made as described in Section 5 shall be valid and shall satisfy and discharge the liability of the University upon such Series 2012/2013 Bond to the extent of the amount or amounts so paid. (c) DTC Acceptance/Letter of Representations. To induce DTC to accept the Series 2012/2013 Bonds as eligible for deposit at DTC, the University has executed and delivered a Letter of Representations to DTC. Neither the University nor the Registrar will have any responsibility or obligation to DTC participants or the persons for whom they act as nominees (or any successor depository) with respect to the Series 2012/2013 Bonds in respect of the accuracy of any records maintained by DTC (or any successor depository) or any DTC participant, the payment by DTC (or any successor depository) or any DTC participant of any amount in respect of the principal of or interest on Series 2012/2013 Bonds, any notice which is permitted or required to be given to Registered Owners under this Series Resolution (except such notices as shall be required to be given by the University to the Registrar or to DTC (or any successor depository)), or any consent given or other action taken by DTC (or any successor depository) as the Registered Owner. For so long as any Series 2012/2013 Bonds are held in fully immobilized form hereunder, DTC or its -19- successor depository shall be deemed to be the Registered Owner for all purposes hereunder, and all references herein to the Registered Owners shall mean DTC (or any successor depository) or its nominee and shall not mean the owners of any beneficial interest in such Series 2012/2013 Bonds. If any Series 2012/2013 Bond shall be duly presented for payment and funds have not been duly provided by the University on such applicable date, then interest shall continue to accrue thereafter on the unpaid principal thereof at the rate stated on such Series 2012/2013 Bond until such Series 2012/2013 Bond is paid. (d) Use of Depository. (1) The Series 2012/2013 Bonds shall be registered initially in the name of “CEDE & CO.”, as nominee of DTC, with one Series 2012/2013 Bond maturing on each of the maturity dates for the Series 2012/2013 Bonds in a denomination corresponding to the total principal therein designated to mature on such date. Registered ownership of such immobilized Series 2012/2013 Bonds, or any portions thereof, may not thereafter be transferred except (A) to any successor of DTC or its nominee, provided that any such successor shall be qualified under any applicable laws to provide the service proposed to be provided by it; (B) to any substitute depository appointed by the Board pursuant to subsection (ii) below or such substitute depository’s successor; or (C) to any person as provided in subsection (iv) below. (2) Upon the resignation of DTC or its successor (or any substitute depository or its successor) from its functions as depository or a determination by the Board to discontinue the system of book entry transfers through DTC or its successor (or any substitute depository or its successor), the Board may hereafter appoint a substitute depository. Any such substitute -20- depository shall be qualified under any applicable laws to provide the services proposed to be provided by it. (3) In the case of any transfer pursuant to clause (A) or (B) of subsection (1) above, the Registrar shall, upon receipt of all Outstanding Series 2012/2013 Bonds, together with a written request on behalf of the Board, issue a single new Series 2012/2013 Bond for each maturity of the Series 2012/2013 Bonds then Outstanding, registered in the name of such successor or such substitute depository, or their nominees, as the case may be, all as specified in such written request of the Board. (4) In the event that (A) DTC or its successor (or substitute depository or its successor) resigns from its functions as depository, and no substitute depository can be obtained, or (B) the Board determines that it is in the best interest of the beneficial owners of the Series 2012/2013 Bonds that such owners be able to obtain such bonds in the form of Series 2012/2013 Bond certificates, the ownership of such Series 2012/2013 Bonds may then be transferred to any person or entity as herein provided, and shall no longer be held in fully immobilized form. The Designated University Representative shall deliver a written request to the Registrar, together with a supply of definitive Series 2012/2013 Bonds, to issue Series 2012/2013 Bonds as herein provided in any authorized denomination. Upon receipt by the Registrar of all then Outstanding Series 2012/2013 Bonds together with a written request on behalf of the Board to the Registrar, new Series 2012/2013 Bonds shall be issued in the appropriate denominations and registered in the names of such persons as are requested in such written request. (e) Registration of Transfer of Ownership or Exchange; Change in Denominations. If the Series 2012/2013 Bonds are no longer held in book-entry only form, the transfer of any Series 2012/2013 Bond may be registered and Series 2012/2013 Bonds may be exchanged, but -21- no transfer of any such Series 2012/2013 Bond shall be valid unless such Series 2012/2013 Bond is surrendered to the Registrar with the assignment form appearing on such Series 2012/2013 Bond duly executed by the Registered Owner or such Registered Owner’s duly authorized agent in a manner satisfactory to the Registrar. Upon such surrender, the Registrar shall cancel the surrendered Series 2012/2013 Bond and shall authenticate and deliver, without charge to the Registered Owner or transferee therefor, a new Series 2012/2013 Bond (or Series 2012/2013 Bonds at the option of the new Registered Owner) of the same date, maturity and interest rate and for the same aggregate principal amount in any authorized denomination, naming as Registered Owner the person or persons listed as the assignee on the assignment form appearing on the surrendered Series 2012/2013 Bond, in exchange for such surrendered and canceled Series 2012/2013 Bond. If the Series 2012/2013 Bonds are no longer held in book-entry only form, any Series 2012/2013 Bond may be surrendered to the Registrar and exchanged, without charge, for an equal aggregate principal amount of Series 2012/2013 Bonds of the same date, maturity and interest rate, in any authorized denomination or denominations. The Registrar shall not be obligated to register the transfer or to exchange any Series 2012/2013 Bond during the 15 days preceding the date any such Series 2012/2013 Bond is to be redeemed. (f) Registrar’s Ownership of Series 2012/2013 Bonds. The Registrar may become the Registered Owner of any Series 2012/2013 Bond with the same rights it would have if it were not the Registrar, and to the extent permitted by law, may act as depository for and permit any of its officers or directors to act as member of, or in any other capacity with respect to, any committee formed to protect the right of the Registered Owners of Series 2012/2013 Bonds. -22- (g) Registration Covenant. The University covenants that, until all Series 2012/2013 Bonds have been surrendered and canceled, it will maintain a system for recording the ownership of each Series 2012/2013 Bond that complies with the provisions of Section 149 of the Code. (h) Series 2012/2013 Bonds Payable from Series 2012/2013 Bond Fund. The Series 2012/2013 Bonds shall be obligations only of the Series 2012/2013 Bond Fund and shall be payable and secured as provided herein and in the Master Resolution. The Series 2012/2013 Bonds are not general obligations of the University or of the State of Washington. The Series 2012/2013 Bonds do not constitute an indebtedness of the University within the meaning of the constitutional provisions and limitations of the State of Washington. Section 7. Series 2012/2013 Bond Fund. A special fund of the University designated the “Western Washington University Housing and Dining System Revenue Bond Fund, Series 20__” (the “Series 2012/2013 Bond Fund”) is hereby authorized to be created in the office of the Treasurer for the purpose of paying and securing the payment of the Series 2012/2013 Bonds. The Series 2012/2013 Bond Fund shall be held separate and apart from all other funds and accounts of the University and shall be a trust fund for the owners, from time to time, of the Series 2012/2013 Bonds. (a) Series 2012/2013 Debt Service Account. If the Bond Purchase Contract or University specifies an amount to be held as the Series 2012/2013 Reserve Account Requirement in the Series 2012/2013 Reserve Account, a separate account within the Series 2012/2013 Bond Fund, to be designated as the Series 2012/2013 Debt Service Account is hereby authorized to be created in the Series 2012/2013 Bond Fund for the purpose of paying the principal of, premium, if any, and interest on the Series 2012/2013 Bonds. -23- The University hereby irrevocably obligates and binds itself for as long as any Series 2012/2013 Bonds remain Outstanding to set aside and pay into the Series 2012/2013 Debt Service Account from Net Revenues or moneys in the Revenue Fund, on or prior to the respective dates the same become due: (1) Such amounts as are required to pay the interest scheduled to become due on Outstanding Series 2012/2013 Bonds; and (2) Such amounts with respect to Outstanding Series 2012/2013 Bonds as are required (A) to pay maturing principal, (B) to make required sinking fund payments, and (C) to redeem Outstanding Series 2012/2013 Bonds in accordance with any mandatory redemption provisions. (b) Series 2012/2013 Reserve Account. If the Bond Purchase Contract or University specifies an amount to be maintained as the Series 2012/2013 Reserve Account Requirement, a Series 2012/2013 Bond Reserve Account (the “Series 2012/2013 Reserve Account”) shall be created in the Series 2012/2013 Bond Fund for the purpose of securing the payment of the principal of and interest on Series 2012/2013 Bonds. The University hereby covenants and agrees that on the date of issuance of the Series 2012/2013 Bonds, it will provide for the funding of the Series 2012/2013 Reserve Account in an amount sufficient to satisfy the Series 2012/2013 Reserve Account Requirement, if any. Such deposit will be made in the form of a surety bond, as Qualified Insurance, or in the form of cash or other securities, as necessary. The Designated University Representative is hereby authorized and directed to determine the method of funding of the Series 2012/2013 Reserve Account Requirement. -24- The University further covenants and agrees that it will maintain the Series 2012/2013 Reserve Account Requirement throughout the term of the Series 2012/2013 Bonds, except for permitted withdrawals therefrom. The Series 2012/2013 Reserve Account Requirement may be maintained by deposits of cash, a Qualified Letter of Credit or Qualified Insurance, or a combination of the foregoing. In computing the amount on hand in the Series 2012/2013 Reserve Account, Qualified Insurance and/or a Qualified Letter of Credit shall be valued at the face amount thereof, and all other obligations purchased as an investment of moneys therein shall be valued at its market value, and shall be revalued at least once each year. At the time of revaluation of obligations held in the Series 2012/2013 Reserve Account, if it is determined that the balance on hand in the Series 2012/2013 Reserve Account is less than the Series 2012/2013 Reserve Account Requirement, then the University shall transfer sufficient funds to make up this deficiency within one year of the date of such determination. Whenever there is a sufficient amount in the Series 2012/2013 Bond Fund, including the Series 2012/2013 Reserve Account and the Series 2012/2013 Debt Service Account to pay the principal of, premium, if any, and interest on all outstanding Series 2012/2013 Bonds, the money in the Series 2012/2013 Reserve Account may be used to pay such principal, premium, if any, and interest. Money in the Series 2012/2013 Reserve Account may be withdrawn to redeem and retire, and to pay the interest due to such date of redemption and premium, if any, on any Outstanding Series 2012/2013 Bonds, so long as the moneys left remaining on deposit in the Series 2012/2013 Reserve Account are equal to the Series 2012/2013 Reserve Account Requirement. The University may also transfer out of the Series 2012/2013 Reserve Account any moneys required in order to prevent any Series 2012/2013 Bonds from becoming “arbitrage bonds” under the Code. -25- If a deficiency in the Series 2012/2013 Debt Service Account shall occur, such deficiency shall be made up from the Series 2012/2013 Reserve Account by the withdrawal of cash therefrom for that purpose and by the sale or redemption of obligations held in the Series 2012/2013 Reserve Account, if necessary, in such amounts as will provide cash in the Series 2012/2013 Reserve Account sufficient to make up any such deficiency, and if a deficiency still exists immediately prior to an interest payment date and after the withdrawal of cash, the University shall then draw from any Qualified Letter of Credit, Qualified Insurance, or other equivalent credit facility for the Series 2012/2013 Bonds in sufficient amount to make up the deficiency. Such draw shall be made at such times and under such conditions as the agreement for such Qualified Letter of Credit or such Qualified Insurance shall provide. Reimbursement shall be made to the issuer of the Surety Bond in accordance with the terms of the Surety Bond Agreement, and after making necessary provision for the payments required to be made in paragraph First through Third of Section 2(a) of the Master Resolution. Any deficiency created in the Series 2012/2013 Reserve Account by reason of any such withdrawal shall be made up within one year from Qualified Insurance or a Qualified Letter of Credit or out of Net Revenues (or out of any other moneys on hand legally available for such purpose) (in 12 approximately equal installments) after making necessary provision for the payments required to be made into the Series 2012/2013 Debt Service Account within such year. In making the payments and credits to the Series 2012/2013 Reserve Account required by this Section 7(b), to the extent that the University has obtained Qualified Insurance or a Qualified Letter of Credit for specific amounts required pursuant to this section to be paid out of the Series 2012/2013 Reserve Account, such amounts so covered by Qualified Insurance or a Qualified Letter of Credit shall be credited against the amounts required to be maintained in the -26- Series 2012/2013 Reserve Account by this Section 7(b) to the extent that such payments and credits to be made are insured by an insurance company, or guaranteed by a letter of credit from a financial institution. Such Qualified Letter of Credit or Qualified Insurance shall not be cancellable on less than one year’s notice. In the event of any cancellation of the Qualified Insurance, or Qualified Letter of Credit, for reasons other than insolvency of the issuer of the Qualified Insurance or the Qualified Letter of Credit, the Series 2012/2013 Reserve Account Requirement shall be satisfied within one year of the date of cancellation with Qualified Insurance or another Qualified Letter of Credit, or if the issuer of the Qualified Insurance or the Qualified Letter of Credit shall be insolvent the Series 2012/2013 Reserve Account Requirement shall be satisfied within five years (in 60 approximately equal installments) of the insolvency or cancellation out of Net Revenues (or out of moneys on hand legally available for such purpose) after making necessary provisions for the payments required to be made into the Series 2012/2013 Debt Service Account. (c) Pledged Amount. In Section 7(h) of the Master Resolution, the Board has covenanted and agreed to establish, maintain and collect Services and Activities Fees at least equal to the Pledged Amount. Further, the Master Resolution retains the authority of the Board to increase the “Pledged Amount” to include additional fees specifically pledged to one or more series of Bonds. The Board hereby covenants and agrees that it will allocate such additional portion of the aggregate Services and Activities Fees (imposed by the Board from time to time in the future) as are necessary to meet the required payments into the Series 2012/2013 Debt Service Account to pay the principal of and interest on the Series 2012/2013 Bonds as the same becomes due and payable. -27- (d) Lien of Deposits into Series 2012/2013 Bond Fund. Said amounts so pledged to be paid into the Series 2012/2013 Debt Service Account and Series 2012/2013 Reserve Account with respect to the Series 2012/2013 Bonds are hereby declared to be an equal and prior lien and charge upon the Gross Revenue superior to all other charges of any kind or nature whatsoever, except for Operating Expenses and except that the amounts so pledged are of equal lien to the lien and charge of the Outstanding Parity Bonds and to any lien which may hereafter be made to pay and secure the payment of the principal of and interest on any Future Parity Bonds. (e) Use of Excess Money. Money in the Series 2012/2013 Bond Fund not needed to pay the interest or principal and interest next coming due on any Outstanding Series 2012/2013 Bonds or to maintain required reserves therefor may be used to purchase or redeem and retire Series 2012/2013 Bonds. Money in the Revenue Fund, the Series 2012/2013 Debt Service Account and the Series 2012/2013 Reserve Account may be commingled for investment purposes and may be invested in any investments legal for the University; subject to the limitations set forth in Section 11 hereof. Section 8. Application of Proceeds of Series 2012/2013 Bonds. Proceeds of sale of the Bonds shall be delivered to the Escrow Agent for the purpose of defeasing the Refunded Bonds and paying related costs of issuance. Money received by the Escrow Agent from Series 2012/2013 Bond proceeds and other money provided by the University, shall be used immediately upon receipt thereof to defease the Refunded Bonds as authorized by the resolution authorizing the issuance of the Refunded Bonds and to pay costs of issuance. The University shall defease the Refunded Bonds and discharge such obligations by the use of money deposited with the Escrow Agent to purchase certain Government Obligations (which obligations so purchased, are herein called “Acquired -28- Obligations”), bearing such interest and maturing as to principal and interest in such amounts and at such times which, together with any necessary beginning cash balance, will provide for the payment of: (a) interest on the Refunded Bonds coming due on or before the Call Date; (b) the redemption price (100% of the principal amount thereof) on the Call and Date of the Refunded Bonds. Such Acquired Obligations shall be purchased at a yield not greater than the yield permitted by the Code and regulations relating to acquired obligations in connection with refunding bond issues. The Designated University Representative is hereby authorized to appoint a qualified banking association to act as the escrow agent (the “Escrow Agent”) for the Refunded Bonds and to designate an accounting firm to act as escrow verification agent. A beginning cash balance, if any, and Acquired Obligations shall be deposited irrevocably with the Escrow Agent in an amount sufficient to defease the Refunded Bonds. The proceeds of the Series 2012/2013 Bonds remaining after acquisition of the Acquired Obligations and provision for the necessary beginning cash balance shall be utilized to pay expenses of the acquisition and safekeeping of the Acquired Obligations and expenses of the issuance of the Bonds and/or returned to the University for the payment of such expenses. Section 9. Call For Redemption of Refunded Bonds. The University hereby directs that sufficient funds be irrevocably set aside for the purchase of Acquired Obligations from proceeds of the Bonds to make the payments described in Section 8 of this Series Resolution. -29- The University hereby irrevocably calls the Refunded Bonds for redemption on the Call Date in accordance with terms of the resolution pursuant to which the Refunded Bonds was issued authorizing the redemption and retirement of the Refunded Bonds prior to their fixed maturities. Said defeasance and call for redemption of the Refunded Bonds shall be irrevocable after the final establishment of the escrow account and delivery of the Acquired Obligations to the Escrow Agent. The Escrow Agent is hereby authorized and directed to provide for the giving of notice of the redemption of the Refunded Bonds in accordance with the applicable provisions of the resolution pursuant to which the Refunded Bonds was issued. The Treasurer of the University is authorized and requested to provide whatever assistance is necessary to accomplish such redemption and the giving of notice therefor. The costs of publication of such notice shall be an expense of the System. The Escrow Agent is hereby authorized and directed to pay to the Treasurer of the University, or, at the direction of the Treasurer of the University, to the fiscal agency or agencies of the State of Washington, sums sufficient to pay, when due, the payments specified in of Section 8 of this Series Resolution. All such sums shall be paid from the moneys and Acquired Obligations deposited with said Escrow Agent pursuant to the previous section of this Series Resolution, and the income therefrom and proceeds thereof. All moneys and Acquired Obligations deposited with said bank and any income therefrom shall be held, invested (but only at the direction of the Treasurer) and applied in accordance with the provisions of this Series Resolution and with the laws of the State of Washington for the benefit of the University and owners of the Refunded Bonds. -30- The University will take such actions as are found necessary to see that all necessary and proper fees, compensation and expenses of the Escrow Agent for the Refunded Bonds shall be paid when due. In order to carry out the purposes of the preceding section of this Series Resolution and this section, the Treasurer of the University is authorized and directed to execute and deliver a copy of such agreement to the Escrow Agent when the provisions thereof have been fixed and determined. A form of such agreement is attached hereto as “Exhibit A,” and the final form of the Escrow Agreement may be modified to meet the actual terms of the refunding. Section 10. Defeasance. In the event that money and/or Government Obligations maturing or having guaranteed redemption prices at the option of the owner at such time or times and bearing interest to be earned thereon in amounts (together with such money, if any) sufficient to redeem and retire part or all of the Series 2012/2013 Bonds in accordance with their terms, are hereafter irrevocably set aside in a special account and pledged to effect such redemption and retirement, then no further payments need be made into the Series 2012/2013 Bond Fund or any account therein for the payment of the principal of and interest on the certain Series 2012/2013 Bonds so provided for, and such Series 2012/2013 Bonds shall then cease to be entitled to any lien, benefit or security of the Master Resolution and this Series Resolution, except the right to receive the funds so set aside and pledged and notices of early redemption, if any, and such Series 2012/2013 Bonds shall no longer be deemed to be Outstanding hereunder, or under any resolution authorizing the issuance of bonds or other indebtedness of the University. Section 11. (a) Tax Covenants. Arbitrage Covenant. Without limiting the generality of the foregoing, the University covenants that it will not take any action or fail to take any action with respect to the -31- proceeds of sale of the Series 2012/2013 Bonds or any other funds of the University which may be deemed to be proceeds of the Series 2012/2013 Bonds pursuant to Section 148 of the Code and the regulations promulgated thereunder which, if such use had been reasonably expected on the date of delivery of the Series 2012/2013 Bonds to the initial purchasers thereof, would have caused the Series 2012/2013 Bonds as “arbitrage bonds” within the meaning of such term as used in Section 148 of the Code. The University represents that it has not been notified of any listing or proposed listing by the Internal Revenue Service to the effect that it is an issuer whose arbitrage certifications may not be relied upon. The University will comply with the requirements of Section 148 of the Code and the applicable regulations thereunder throughout the term of the Series 2012/2013 Bonds. (b) Private Person Use Limitation for Series 2012/2013 Bonds. The University covenants that for as long as the Series 2012/2013 Bonds are Outstanding, it will not permit: (1) More than 10% of the Net Proceeds of the Series 2012/2013 Bonds to be used for any Private Person Use; and (2) More than 10% of the principal or interest payments on the Series 2012 Bonds in a Bond Year to be directly or indirectly: (A) secured by any interest in property used or to be used for any Private Person Use or secured by payments in respect of property used or to be used for any Private Person Use, or (B) derived from payments (whether or not made to the University) in respect of property, or borrowed money, used or to be used for any Private Person Use. The University further covenants that, if: (3) More than five percent of the Net Proceeds of the Series 2012/2013 Bonds are to be used for any Private Person Use; and -32- (4) More than five percent of the principal or interest payments on the Series 2012/2013 Bonds in a Bond Year are (under the terms of this Series Resolution or any underlying arrangement) directly or indirectly: (A) secured by any interest in property used or to be used for any Private Person Use or secured by payments in respect of property used or to be used for any Private Person Use, or (B) derived from payments (whether or not made to the University) in respect of property, or borrowed money, used or to be used for any Private Person Use, then, (i) any Private Person Use of the projects described in subsection (3) hereof or Private Person Use payments described in subsection (4) hereof that is in excess of the five percent limitations described in such subsections (3) or (4) will be for a Private Person Use that is related to the state or local governmental use of the Projects, and (ii) any Private Person Use will not exceed the amount of Net Proceeds of the Series 2012/2013 Bonds used for the state or local governmental use portion of the project to which the Private Person Use of such portion of the Projects relates. The University further covenants that it will comply with any limitations on the use of the projects by other than state and local governmental users that are necessary, in the opinion of its bond counsel, to preserve the tax exemption of the interest on the Series 2012/2013 Bonds. The covenants of this section are specified solely to assure the continued exemption from regular income taxation of the interest on the Series 2012/2013 Bonds. -33- Section 12. Form of Series 2012/2013 Bonds and Registration Certificate. The Series 2012/2013 Bonds shall be in substantially the following form: STATEMENT OF INSURANCE, if any UNITED STATES OF AMERICA NO. ______ $__________ STATE OF WASHINGTON WESTERN WASHINGTON UNIVERSITY HOUSING AND DINING SYSTEM REVENUE REFUNDING BOND, SERIES 20__ Maturity Date: CUSIP No. Interest Rate: Registered Owner: Cede & Co. Principal Amount: WESTERN WASHINGTON UNIVERSITY, a regional university organized and existing under and by virtue of the laws of the State of Washington (the “University”), promises to pay to the Registered Owner identified above, or registered assigns, on the Maturity Date identified above, solely from the special fund of the University known as the “Western Washington University Housing and Dining System Revenue Bond Fund, 20__” (the “Series 2012/2013 Bond Fund”) created by Resolution No. 2012-03 of the Board of Trustees (together with Resolution No. 97-09, hereinafter collectively referred to as the “Bond Resolution”) the Principal Amount indicated above and to pay interest thereon from the Bond Fund from _____________, 2012, or the most recent date to which interest has been paid or duly provided for or until payment of this bond at the Interest Rate set forth above, payable on __________ 1, 2012, and semiannually thereafter on the first days of each ________ and ___________. Both principal of and interest on this bond are payable in lawful money of the United States of America. Interest shall be paid as provided in the Blanket Issuer Letter of Representations (the “Letter of Representations”) by the University to The Depository Trust Company (“DTC”). Principal shall be paid as provided in the Letter of Representations to the Registered Owner or assigns upon presentation and surrender of this bond at the principal office of the fiscal agency of the State of Washington (the “Registrar”). Capitalized terms used in this bond which are not specifically defined have the meanings given such terms in the Bond Resolution. This bond is one of an issue of bonds of the University of like date, tenor and effect, except as number, amount, rate of interest and date of maturity and is issued pursuant to the Bond Resolution to refund certain outstanding revenue bonds of the University. -34- The bonds of this issue are subject to redemption as stated in the Bond Purchase Contract or Approved Bid. The bonds of this issue are not private activity bonds. The bonds of this issue have not been designated by the University as eligible investments for financial institutions under Section 265 of the Internal Revenue Code of 1986, as amended. The University hereby covenants and agrees with the owner and holder of this bond that it will keep and perform all the covenants of this bond and the Bond Resolution. The University does hereby pledge and bind itself to set aside from such Gross Revenue of the System, and to pay into said Series 2012/2013 Bond Fund [and the Series 2012/2013 Reserve Account created therein] the various amounts required by the Bond Resolution to be paid into and maintained in said Fund [and Account], all within the times provided by said Bond Resolution. Said amounts so pledged to be paid out of Gross Revenue into said Series 2012/2013 Bond Fund and Series 2012/2013 Bond Reserve Account are hereby declared to be a first and prior lien and charge upon the Gross Revenue, subject to the Operating Expenses of the System and equal in rank to the lien and charge upon such Gross Revenue of the amounts required to pay and secure the payment of the University’s Housing and Dining System Junior Lien Revenue Refunding Bonds, 1998 Series A, Housing and Dining System Revenue and Refunding Bonds, Series 2003, Housing and Dining System Revenue Refunding Bonds, Series 2005, Housing and Dining System Revenue Bonds, Series 2006, Housing and Dining System Revenue Bonds, Series 2009A (Tax-Exempt – Bank Qualified), Housing and Dining System Revenue Bonds, Series 2009B (Taxable – Build America Bonds) and any revenue bonds of the University hereafter issued on a parity with such bonds and the bonds of this issue. The University has further bound itself to maintain all of its properties and facilities which contribute in some measure to such Gross Revenue in good repair, working order and condition, to operate the same in an efficient manner and at a reasonable cost, and to establish, maintain and collect rentals, rates and charges in the operation of the System for as long as any bonds of this issue are outstanding that will make available, for the payment of the principal thereof and interest thereon as the same shall become due, Net Revenues (as the same is defined in the Bond Resolution) in an amount equal to or greater than the Rate Covenant. This bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Bond Resolution until the Certificate of Authentication hereon shall have been manually signed by or on behalf of the Registrar. It is hereby certified and declared that this bond and the bonds of this issue are issued pursuant to and in strict compliance with the Constitution and laws of the State of Washington and resolutions of the University and that all acts, conditions and things required to be done precedent to and in the issuance of this bond have happened, been done and performed. -35- IN WITNESS WHEREOF, Western Washington University has caused this bond to be executed by the manual or facsimile signatures of the Chair and Secretary of the Board of Trustees, and a facsimile corporate seal of the University to be imprinted hereon as of the ___ day of __________, 2012. WESTERN WASHINGTON UNIVERSITY By /s/ Chair, Board of Trustees ATTEST: /s/ Secretary, Board of Trustees CERTIFICATE OF AUTHENTICATION Date of Authentication: ____________________ This bond is one of the bonds described in the within mentioned Bond Resolution and is one of the Housing and Dining System Revenue Refunding Bonds, Series 20__ of Western Washington University, dated _____________, 2012. WASHINGTON STATE FISCAL AGENCY, Registrar By Authorized Signer Section 13. Execution. The Series 2012/2013 Bonds shall be executed on behalf of the University with the manual or facsimile signature of the Chair of its Board, shall be attested by the manual or facsimile signature of the Secretary of the Board and shall have the seal of the University impressed or a facsimile thereof imprinted thereon. Only such Series 2012/2013 Bonds as shall bear thereon a Certificate of Authentication in the form hereinbefore recited, manually executed by the Registrar, shall be valid or obligatory for any purpose or entitled to the benefits of this Series Resolution. -36- Such Certificate of Authentication shall be conclusive evidence that the Series 2012/2013 Bonds so authenticated have been duly executed, authenticated and delivered hereunder and are entitled to the benefits of this Series Resolution. In case either of the officers of the University who shall have executed the Series 2012/2013 Bonds shall cease to be such officer or officers of the University before the Series 2012/2013 Bonds so signed shall have been authenticated or delivered by the Registrar, or issued by the University, such Series 2012/2013 Bonds may nevertheless be authenticated, delivered and issued and upon such authentication, delivery and issuance, shall be as binding upon the University as though those who signed the same had continued to be such officers of the University. Any Series 2012/2013 Bond may also be signed and attested on behalf of the University by such persons as at the actual date of execution of such Series 2012/2013 Bond shall be the proper officers of the University although at the original date of such Series 2012/2013 Bond any such person shall not have been such officer. Section 14. Defaults and Remedies. The University hereby finds and determines that the failure or refusal of the University or any of its officers to perform the covenants and obligations of this Series Resolution will endanger the operation of the System and the application of Gross Revenue and such other moneys, funds and securities to the purposes herein set forth. Any one or more of the following shall constitute a Default under this Series Resolution: (a) The University shall fail to make payment of the principal of any Series 2012/2013 Bonds when the same shall become due and payable whether by maturity or scheduled redemption prior to maturity; -37- (b) The University shall fail to make payments of any installment of interest on any Series 2012/2013 Bonds when the same shall become due and payable; or (c) The University shall default in the observance or performance of any other covenants, conditions, or agreements on the part of the University contained in this Series Resolution, and such default shall have continued for a period of 90 days. Upon the occurrence and continuation of any Default, the Registered Owners of the Series 2012/2013 Bonds shall be entitled to exercise the remedies specified in Section 20 of the Master Resolution. The failure to observe any term of an ongoing disclosure agreement under the Rule shall not constitute a Default hereunder or under the Master Resolution. Section 15. (a) Designation of the Refunded Bonds; Sale of Series 2012/2013 Bonds. Designation of Refunded Bonds. As outlined in the recitals to this ordinance, certain principal maturities of the 2003 Bonds may be called for redemption prior to their scheduled maturities. All or some of these bonds may be refunded and refinanced with the proceeds of the Series 2012/2013 Bonds authorized by this Series Resolution (“Refunding Candidates”). The Designated University Representative may select some or all of the Refunding Candidates and designate those Refunding Candidates as the “Refunded Bonds” if the net present value aggregate savings with respect to all Refunded Bonds to be realized as a result of the refunding of the Refunded Bonds, after payment of all costs of issuance), is at least equal to the Savings Target. (b) Bond Sale. The Board has determined that it would be in the best interest of the District to delegate to the Designated Representative the authority to designate the Refunded Bonds by selection from the Refunding Candidates as described in subsection (a) above, approve -38- the manner of sale, the final interest rates, maturity dates, aggregate principal amount, principal amounts of each maturity, redemption rights and other terms and conditions of the Refunded Bonds. The Designated Representative is hereby authorized to approve the manner of sale, the final interest rates, maturity dates, aggregate principal amount, principal maturities and redemption rights for the Refunded Bonds in the manner provided hereafter so long as (i) the aggregate principal amount of the Refunded Bonds does not exceed $9,900,000; (ii) the true interest cost for the Series 2012/2013 Bonds (in the aggregate) does not exceed 3.5%; (iii) the net present value aggregate savings with respect to all Refunded Bonds to be realized as a result of the refunding of the Refunded Bonds, after payment of all costs of issuance), is at least equal to the Savings Target; and (iv) the Maximum Annual Debt Service on all Outstanding Bonds after the issuance of the Bonds shall not be greater than the Maximum Annual Debt Service if the Bonds were not to be issued. In determining the final interest rates, maturity dates, aggregate principal amount, principal maturities and redemption rights of the Bonds, the Designated University Representative, in consultation with University staff and the University’s financial advisor, shall take into account those factors that, in his/her judgment, will result in the lowest true interest cost of the Bonds to their maturity, including, but not limited to current financial market conditions and current interest rates for obligations comparable in tenor and quality to the Series 2012/2013 Bonds. Initially, the Designated University Representative is hereby authorized to determine whether the Series 2012/2013 Bonds shall be sold by Negotiated Sale or by a Competitive Sale. If the Series 2012/2013 Bonds are sold by Negotiated Sale, the Designated University Representative shall select one or more underwriting firms to underwrite the Series 2012/2013 -39- Bonds through a process of soliciting proposals for underwriting. Upon the selection of one or more underwriters, the Designated University Representative shall negotiate the terms of sale for the Series 2012/2013 Bonds, including the terms described in this section, in a contract of sale (the “Bond Purchase Contract”). If the Series 2012/2013 Bonds are sold by Competitive Sale, sealed bids will be received by the Designated University Representative or the Competitive Sale will be undertaken by electronic means, in the manner and on such date and time as the Designated University Representative hereafter shall determine. The Designated University Representative will approve the bid offering to purchase the Series 2012/2013 Bonds at the lowest true interest cost to the University at such price as shall be determined at the time of sale by the Designated University Representative, plus accrued interest to the date of delivery, on all the terms and conditions set out in the applicable Official Notice of Sale. All bids submitted for the purchase of the Series 2012/2013 Bonds shall be as set forth in the applicable Official Notice of Sale or otherwise as established by the Designated University Representative which will be furnished upon request made to the Designated University Representative. Such bids shall be accompanied by surety bond or a cashier’s or certified check, as a good faith deposit, made payable to the order of the University, in an amount determined by the University’s financial advisor. The good faith deposit of the successful bidder shall be security for the performance of its bid and shall be held as liquidated damages in case the successful bidder fails to take up and pay for the Series 2012/2013 Bonds within 45 days if tendered for delivery. All bids submitted shall be opened (but not read publicly) by the University. The University reserves the right to reject any and all bids and to waive any irregularity or informality in any bid. -40- Subject to the terms and conditions set forth in this Section 15, the Designated University Representative is hereby authorized to accept an Approved Bid in a Competitive Sale and/or execute the final form of a Bond Purchase Contract in a Negotiated Sale, upon his/her approval of the final interest rates, maturity dates, aggregate principal amounts, principal maturities and redemption rights set forth therein. Following the sale of the Series 2012/2013 Bonds, the Designated University Representative shall provide a report to the Board, describing the final terms of the Series 2012/2013 Bonds approved pursuant to the authority delegated in this section. The authority granted to the Designated University Representative by this Section shall remain in effect until December 31, 2013. If the sale for the Series 2012/2013 Bonds has not been completed by December 31, 2013, the authorization for the issuance of the Series 2012/2013 Bonds shall be rescinded, and the Series 2012/2013 Bonds shall not be issued nor their sale approved unless such Series 2012/2013 Bonds shall have been re-authorized by resolution of the University. The resolution re-authorizing the issuance and sale of such Series 2012/2013 Bonds may be in the form of a new resolution repealing this resolution in whole or in part or may be in the form of an amendatory resolution establishing terms and conditions for the authority delegated under this Section. The Designated University Representative or his/her designee are hereby authorized to review and approve on behalf of the University the preliminary and final Official Statements relative to the Series 2012/2013 Bonds with such additions and changes as may be deemed necessary or advisable to them. The Designated University Representative is hereby further authorized to deem final the Preliminary Official Statement for the Series 2012/2013 Bonds for purposes of compliance with the Rule. -41- Upon the adoption of this Series Resolution, the proper officials of the University including the Designated University Representative, are authorized and directed to undertake all other actions necessary for the prompt sale, execution and delivery of the Series 2012/2013 Bonds and further to execute all closing certificates and documents required to effect the closing and delivery of the Series 2012/2013 Bonds in accordance with the terms of the Official Notice of Sale, Approved Bid and/or Bond Purchase Contract. Section 16. Undertaking to Provide Ongoing Disclosure. The Designated University Representative is authorized to, in his/her discretion, execute and deliver a certificate regarding continuing disclosure in order to assist the Underwriter in complying with Section (b)(5) of the Rule. Section 17. (a) Bond Insurance; Surety Bond. Bond Insurance. The payments of the principal of and interest on the Series 2012/2013 Bonds may be insured by the issuance of the Bond Insurance Policy. The Designated University Representative, with the assistance of the University’s financial advisor, is hereby further authorized and directed to solicit proposals from municipal bond insurance companies for the issuance of a Bond Insurance Policy. In the event that the Designated University Representative receives multiple proposals, the Designated University Representative may select the proposal having the lowest cost and resulting in an overall lower interest cost with respect to the Series 2012/2013 Bonds. The Designated University Representative may execute a commitment received from the Insurer selected by the Designated University Representative. The Board further authorizes and directs all proper officers, agents, attorneys and employees of the University to cooperate with the Insurer in preparing such additional agreements, certificates, and other documentation on behalf of the University as shall be necessary or advisable in -42- providing for the Bond Insurance Policy. To the extent that the Series 2012/2013 Bonds are insured by a Bond Insurance Policy, the Insurer of each maturity of the Series 2012/2013 Bonds so insured shall be deemed to be the Registered Owner of such Series 2012/2013 Bonds for all purposes, including consent, under this Series Resolution and the Master Resolution. (b) Surety Bond. The guaranteeing of certain payments into the Series 2012/2013 Reserve Account may be secured by a surety bond (the “Surety Bond”). The Designated University Representative, with the assistance of the University’s financial advisor, is hereby further authorized and directed to solicit proposals from municipal bond insurance companies for the issuance of a Surety Bond (the “Surety Bond Provider”). In the event that the Designated University Representative receives multiple proposals, the Designated University Representative may select the proposal having the lowest cost and resulting in an overall lower interest cost with respect to the Series 2012/2013 Bonds. The Designated University Representative may execute a commitment received from the Surety Bond Provider selected by the Designated University Representative. The Board further authorizes and directs all proper officers, agents, attorneys and employees of the University to cooperate with the Surety Bond Provider in preparing such additional agreements, certificates, and other documentation on behalf of the University as shall be necessary or advisable in providing for the Surety Bond. Section 18. Severability. If any one or more of the covenants or agreements provided in this Series Resolution to be performed on the part of the University shall be declared by any court of competent jurisdiction to be contrary to law, then such covenant or covenants, agreement or agreements, shall be null and void and shall be deemed separable from the remaining covenants and agreements in this Series Resolution and shall in no way affect the validity of the other provisions of this Series Resolution or of any Series 2012/2013 Bonds. -43- Section 19. Effective Date. This Series Resolution shall be effective immediately upon its adoption. ADOPTED AND APPROVED by the Board of Trustees of Western Washington University, at a regular meeting held this 8th day of June, 2012. WESTERN WASHINGTON UNIVERSITY Chair, Board of Trustees ATTEST: Secretary of the Board -44- EXHIBIT A FORM OF ESCROW AGREEMENT ESCROW DEPOSIT AGREEMENT WESTERN WASHINGTON UNIVERSITY HOUSING AND DINING SYSTEM REVENUE REFUNDING BONDS, SERIES 20__ THIS ESCROW AGREEMENT, dated as of ____________, 20__ (herein, together with any amendments or supplements hereto, called the “Agreement”) is entered into by and between Western Washington University (herein called the “University”) and ____________________________, ___________, ____________ as escrow agent (herein, together with any successor in such capacity, called the “Escrow Agent”). The notice addresses of the University and the Escrow Agent are shown on Exhibit A attached hereto and made a part hereof. WITNESSETH: WHEREAS, the University has issued and there presently remain outstanding the obligations described in Exhibit B (the “Refunded Bonds”); and WHEREAS, pursuant to Resolution No. 2012-03, adopted on June 8, 2012 (the “Series Resolution”), the University has determined to issue its Western Washington University Housing and Dining System Revenue Refunding Bonds, Series 20__ (the “Refunding Bonds”). A portion of the Refunding Bonds are being used for the purpose of providing funds to pay the costs of refunding the Refunded Bonds; and WHEREAS, the Escrow Agent has reviewed this Agreement, and is willing to serve as Escrow Agent; and. WHEREAS, __________________________, Certified Public Accountants, of _______, __________, have prepared a verification report which is dated ____________, 20__ (the “Verification Report”) relating to the source and use of funds available to accomplish the refunding of the Refunded Bonds, the investment of such funds and the adequacy of such funds and investments to provide for the payment of the debt service due on the Refunded Bonds; and WHEREAS, pursuant to the Series Resolution, the Refunded Bonds have been designated for redemption prior to their scheduled maturity dates and, after provision is made for such redemption, the Refunded Bonds will come due in such years, bear interest at such rates, and be payable at such times and in such amounts as are set forth in Exhibit C; and A-1 P:\20287_CMW\20287_9JE 06/01/12 WHEREAS, when Escrowed Securities have been deposited with the Escrow Agent for the payment of all principal and interest of the Refunded Bonds when due, then the Refunded Bonds shall no longer be regarded as outstanding except for the purpose of receiving payment from the funds provided for such purpose; and WHEREAS, the Refunding Bonds have been duly authorized to be issued, sold, and delivered for the purpose of obtaining the funds required to provide for the payment of the principal of, interest on and redemption premium (if any) on the Refunded Bonds when due as shown on Exhibit C; and WHEREAS, the University desires that, concurrently with the delivery of the Refunding Bonds to the purchasers, the proceeds of the Refunding Bonds, together with certain other available funds of the University, shall be applied to purchase certain direct obligations of the United States of America hereinafter defined as the “Escrowed Securities” for deposit to the credit of the Escrow Fund and to establish a beginning cash balance (if needed) in the Escrow Fund; and WHEREAS, the Escrowed Securities shall mature and the interest thereon shall be payable at such times and in such amounts so as to provide money which, together with cash balances from time to time on deposit in the Escrow Fund, will be sufficient to pay interest on the Refunded Bonds as it accrues and becomes payable and the principal of the Refunded Bonds as it becomes due and payable; and WHEREAS, to facilitate the receipt and transfer of proceeds of the Escrowed Securities, particularly those in book entry form, the University desires to establish the Escrow Fund at the principal corporate trust office of the Escrow Agent; and WHEREAS, the Escrow Agent is a party to this Agreement to acknowledge its acceptance of the terms and provisions hereof; NOW, THEREFORE, in consideration of the mutual undertakings, promises and agreements herein contained, the sufficiency of which hereby are acknowledged, and to secure the full and timely payment of principal of and the interest on the Refunded Bonds, the University and the Escrow Agent mutually undertake, promise and agree for themselves and their respective representatives and successors, as follows: Article 1. Section 1.1. Definitions. Unless the context clearly indicates otherwise, the following terms shall have the meanings assigned to them below when they are used in this Agreement: A-2 Acquired Obligations means the Government Obligations acquired by the University under the terms of the resolution and this Escrow Agreement to effect the defeasance and refunding of the Refunded Bonds. Escrow Fund means the fund created by this Agreement to be established, held and administered by the Escrow Agent pursuant to the provisions of this Agreement. Escrowed Securities means the noncallable Government Obligations described in Exhibit D, or cash or other noncallable obligations substituted therefor pursuant to Section 4.2 of this Agreement. Government Obligations means direct, noncallable (a) United States Treasury Obligations, (b) United States Treasury Obligations — State and Local Government Series, (c) non-prepayable obligations which are unconditionally guaranteed as to full and timely payment of principal and interest by the United States of America or (d) REFCORP debt obligations unconditionally guaranteed by the United States. Paying Agent means the fiscal agency of the State of Washington, as the paying agent for the Refunded Bonds. Section 1.2. Other Definitions. The terms “Agreement,” “University,” “Escrow Agent,” “Series Resolution,” “Verification Report,” “Refunded Bonds,” and “Refunding Bonds” when they are used in this Agreement, shall have the meanings assigned to them in the preamble to this Agreement. Section 1.3. Interpretations. The titles and headings of the articles and sections of this Agreement have been inserted for convenience and reference only and are not to be considered a part hereof and shall not in any way modify or restrict the terms hereof. This Agreement and all of the terms and provisions hereof shall be liberally construed to effectuate the purposes set forth herein and to achieve the intended purpose of providing for the refunding of the Refunded Bonds in accordance with applicable law. Article 2. Deposit of Funds and Escrowed Securities Section 2.1. Deposits in the Escrow Fund. Concurrently with the sale and delivery of the Refunding Bonds the University shall deposit, or cause to be deposited, with the Escrow Agent, for deposit in the Escrow Fund, the funds sufficient to purchase the Escrowed Securities [and pay costs of issuance] described in A-3 Exhibit D, and the Escrow Agent shall, upon the receipt thereof, acknowledge such receipt to the University in writing. Article 3. Creation and Operation of Escrow Fund Section 3.1. Escrow Fund. The Escrow Agent has created on its books a special trust fund and irrevocable escrow to be known as the Escrow Fund (the “Escrow Fund”). The Escrow Agent agrees that upon receipt it will deposit to the credit of the Escrow Fund the funds and the Escrowed Securities described in Exhibit D. Such deposit, all proceeds therefrom, and all cash balances on deposit therein (a) shall be the property of the Escrow Fund, (b) shall be applied only in strict conformity with the terms and conditions of this Agreement, and (c) are hereby irrevocably pledged to the payment of the principal of and interest on the Refunded Bonds, which payment shall be made by timely transfers of such amounts at such times as are provided for in Section 3.2. When the final transfers have been made for the payment of such principal of and interest on the Refunded Bonds, any balance then remaining in the Escrow Fund shall be transferred to the University, and the Escrow Agent shall thereupon be discharged from any further duties hereunder. Section 3.2. Payment of Principal and Interest. The Escrow Agent is hereby irrevocably instructed to transfer to the Paying Agent from the cash balances on deposit in the Escrow Fund, the amounts required to pay the principal of the Refunded Bonds at their respective redemption dates and interest thereon to such redemption dates in the amounts and at the times shown in Exhibit C. Section 3.3. Sufficiency of Escrow Fund. The University represents that, based upon the information provided in the Verification Report, the successive receipts of the principal of and interest on the Escrowed Securities will assure that the cash balance on deposit in the Escrow Fund will be at all times sufficient to provide money for transfer to the Paying Agent at the times and in the amounts required to pay the interest on the Refunded Bonds as such interest comes due and the principal of the Refunded Bonds as the Refunded Bonds are paid on an optional redemption date prior to maturity, all as more fully set forth in Exhibit E. If, for any reason, at any time, the cash balances on deposit or scheduled to be on deposit in the Escrow Fund shall be insufficient to transfer the amounts required by the Paying Agent to make the payments set forth in Section 3.2., the University shall timely deposit in the Escrow Fund, from any funds that are lawfully available therefor, additional funds in the amounts required to make such payments. Notice of any such insufficiency shall be given promptly as hereinafter provided, but the Escrow Agent shall not in any manner be responsible for any insufficiency of funds in the Escrow Fund or the University’s failure to make additional deposits. A-4 Section 3.4. Trust Fund. The Escrow Agent shall hold at all times the Escrow Fund, the Escrowed Securities and all other assets of the Escrow Fund, wholly segregated from all other funds and securities on deposit with the Escrow Agent; it shall never allow the Escrowed Securities or any other assets of the Escrow Fund to be commingled with any other funds or securities of the Escrow Agent; and it shall hold and dispose of the assets of the Escrow Fund only as set forth herein. The Escrowed Securities and other assets of the Escrow Fund shall always be maintained by the Escrow Agent as trust funds for the benefit of the owners of the Refunded Bonds; and a special account shall at all times be maintained on the books of the Escrow Agent. The owners of the Refunded Bonds shall be entitled to the same preferred claim and first lien upon the Escrowed Securities, the proceeds thereof, and all other assets of the Escrow Fund to which they are entitled as owners of the Refunded Bonds. The amounts received by the Escrow Agent under this Agreement shall not be considered as a banking deposit by the University, and the Escrow Agent shall have no right to title with respect thereto except as a trustee and Escrow Agent under the terms of this Agreement. The amounts received by the Escrow Agent under this Agreement shall not be subject to warrants, drafts or checks drawn by the University or, except to the extent expressly herein provided, by the Paying Agent. Article 4. Limitation on Investments Section 4.1. Investments. Except for the initial investment in the Escrowed Securities, and except as provided in Section 4.2, the Escrow Agent shall not have any power or duty to invest or reinvest any money held hereunder, or to make substitutions of the Escrowed Securities, or to sell, transfer, or otherwise dispose of the Escrowed Securities. Section 4.2. Substitution of Securities. At the written request of the University, and upon compliance with the conditions hereinafter stated, the Escrow Agent shall utilize cash balances in the Escrow Fund, or sell, transfer, otherwise dispose of or request the redemption of the Escrowed Securities and apply the proceeds therefrom to purchase Government Obligations which do not permit the redemption thereof at the option of the obligor. Any such transaction may be effected by the Escrow Agent only if (a) the Escrow Agent shall have received a written verification from a firm of certified public accountants that such transaction will not cause the amount of money and securities in the Escrow Fund to be reduced below an amount sufficient to provide for the full and timely payment of principal of and interest on all of the remaining Refunded Bonds as they become due, taking into account any optional redemption thereof exercised by the University in connection with such transaction; and (b) the Escrow Agent shall have received the unqualified written legal opinion of its bond counsel or tax counsel to the effect that such transaction will not cause any of A-5 the Refunding Bonds or Refunded Bonds to be an “arbitrage bond” within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended. Article 5. Application of Cash Balances Section 5.1. In General. Except as provided in Sections 2.1, 3.2 and 4.2, no withdrawals, transfers or reinvestment shall be made of cash balances in the Escrow Fund. Cash balances shall be held by the Escrow Agent in United States currency and shall not be reinvested by the Escrow Agent, except as directed or authorized herein. Article 6. Redemption of Refunded Bonds Section 6.1. Call for Redemption. The University hereby irrevocably calls the Refunded Bonds for redemption on their earliest redemption dates, as shown in the Verification Report and on Appendix A attached hereto. Section 6.2. Notice of Redemption/Notice of Defeasance. The Escrow Agent agrees to give a notice of defeasance and a notice of the redemption of the Refunded Bonds pursuant to the terms of the Refunded Bonds and in substantially the forms attached as and as described in Appendices A and B to the Paying Agent for distribution as described therein. The notice of defeasance shall be given immediately following the execution of this Agreement, and the notice of redemption shall be given in accordance with the ordinance or resolution authorizing the Refunded Bonds. The Escrow Agent hereby certifies that provision satisfactory and acceptable to the Escrow Agent has been made for the giving of notice of redemption of the Refunded Bonds. Article 7. Records and Reports Section 7.1. Records. The Escrow Agent will keep books of record and account in which complete and accurate entries shall be made of all transactions relating to the receipts, disbursements, allocations and application of the money and Escrowed Securities deposited to the Escrow Fund and all proceeds thereof, and such books shall be available for inspection during business hours and after reasonable notice. A-6 Section 7.2. Reports. While this Agreement remains in effect, the Escrow Agent annually shall prepare and send to the University a written report summarizing all transactions relating to the Escrow Fund during the preceding year, including, without limitation, credits to the Escrow Fund as a result of interest payments on or maturities of the Escrowed Securities and transfers from the Escrow Fund for payments on the Refunded Bonds or otherwise, together with a detailed statement of all Escrowed Securities and the cash balance on deposit in the Escrow Fund as of the end of such period. Article 8. Concerning the Paying Agent and Escrow Agent Section 8.1. Representations. The Escrow Agent hereby represents that it has all necessary power and authority to enter into this Agreement and undertake the obligations and responsibilities imposed upon it herein, and that it will carry out all of its obligations hereunder. Section 8.2. Limitation on Liability. The liability of the Escrow Agent to transfer funds for the payment of the principal of and interest on the Refunded Bonds shall be limited to the proceeds of the Escrowed Securities and the cash balances from time to time on deposit in the Escrow Fund. Notwithstanding any provision contained herein to the contrary, the Escrow Agent shall have no liability whatsoever for the insufficiency of funds from time to time in the Escrow Fund or any failure of the obligors of the Escrowed Securities to make timely payment thereon, except for the obligation to notify the University promptly of any such occurrence. The recitals herein and in the proceedings authorizing the Refunding Bonds shall be taken as the statements of the University and shall not be considered as made by, or imposing any obligation or liability upon, the Escrow Agent. The Escrow Agent is not a party to the proceedings authorizing the Refunding Bonds or the Refunded Bonds and is not responsible for nor bound by any of the provisions thereof (except to the extent that the Escrow Agent may be a place of payment and paying agent and/or a paying agent/registrar therefor). In its capacity as Escrow Agent, it is agreed that the Escrow Agent need look only to the terms and provisions of this Agreement. The Escrow Agent makes no representations as to the value, conditions or sufficiency of the Escrow Fund, or any part thereof, or as to the title of the University thereto, or as to the security afforded thereby or hereby, and the Escrow Agent shall not incur any liability or responsibility in respect to any of such matters. A-7 It is the intention of the parties that the Escrow Agent shall never be required to use or advance its own funds or otherwise incur personal financial liability in the performance of any of its duties or the exercise of any of its rights and powers hereunder. The Escrow Agent shall not be liable for any action taken or neglected to be taken by it in good faith in any exercise of reasonable care and believed by it to be within the discretion or power conferred upon it by this Agreement, nor shall the Escrow Agent be responsible for the consequences of any error of judgment; and the Escrow Agent shall not be answerable except for its own action, neglect or default, nor for any loss unless the same shall have been through its negligence or want of good faith. Unless it is specifically otherwise provided herein, the Escrow Agent has no duty to determine or inquire into the happening or occurrence of any event or contingency or the performance or failure of performance of the University with respect to arrangements or contracts with others, with the Escrow Agent’s sole duty hereunder being to safeguard the Escrow Fund, to dispose of and deliver the same in accordance with this Agreement. If, however, the Escrow Agent is called upon by the terms of this Agreement to determine the occurrence of any event or contingency, the Escrow Agent shall be obligated, in making such determination, only to exercise reasonable care and diligence, and in event of error in making such determination the Escrow Agent shall be liable only for its own misconduct or its negligence. In determining the occurrence of any such event or contingency the Escrow Agent may request from the University or any other person such reasonable additional evidence as the Escrow Agent in its discretion may deem necessary to determine any fact relating to the occurrence of such event or contingency, and in this connection may make inquiries of, and consult with, among others, the University at any time. Section 8.3. Compensation. The University shall pay to the Escrow Agent fees for performing the services hereunder and for the expenses incurred or to be incurred by the Escrow Agent in the administration of this Agreement pursuant to the terms of the Fee Schedule attached as Appendix C. The Escrow Agent hereby agrees that in no event shall it ever assert any claim or lien against the Escrow Fund for any fees for its services, whether regular or extraordinary, as Escrow Agent, or in any other capacity, or for reimbursement for any of its expenses as Escrow Agent or in any other capacity. A-8 Section 8.4. Successor Escrow Agents. If at any time the Escrow Agent or its legal successor or successors should become unable, through operation or law or otherwise, to act as escrow agent hereunder, or if its property and affairs shall be taken under the control of any state or federal court or administrative body because of insolvency or bankruptcy or for any other reason, a vacancy shall forthwith exist in the office of Escrow Agent hereunder. In such event the Western Washington University, by appropriate action, promptly shall appoint an Escrow Agent to fill such vacancy. If no successor Escrow Agent shall have been appointed by the University within 60 days, a successor may be appointed by the owners of a majority in principal amount of the Refunded Bonds then outstanding by an instrument or instruments in writing filed with the University, signed by such owners or by their duly authorized attorneys-in-fact. If, in a proper case, no appointment of a successor Escrow Agent shall be made pursuant to the foregoing provisions of this section within three months after a vacancy shall have occurred, the owner of any Refunded Bond may apply to any court of competent jurisdiction to appoint a successor Escrow Agent. Such court may thereupon, after such notice, if any, as it may deem proper, prescribe and appoint a successor Escrow Agent. Any successor Escrow Agent shall be a corporation organized and doing business under the laws of the United States or any state, authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least $100,000,000 and subject to the supervision or examination by federal or state authority. Any successor Escrow Agent shall execute, acknowledge and deliver to the University and the Escrow Agent an instrument accepting such appointment hereunder, and the Escrow Agent shall execute and deliver an instrument transferring to such successor Escrow Agent, subject to the terms of this Agreement, all the rights, powers and trusts of the Escrow Agent hereunder. Upon the request of any such successor Escrow Agent, the University shall execute any and all instruments in writing for more fully and certainly vesting in and confirming to such successor Escrow Agent all such rights, powers and duties. The obligations assumed by the Escrow Agent pursuant to this Agreement may be transferred by the Escrow Agent to a successor Escrow Agent if (a) the requirements of this Section 8.4 are satisfied; (b) the successor Escrow Agent has assumed all the obligations of the Escrow Agent under this Agreement; and (c) all of the Escrowed Securities and money held by the Escrow Agent pursuant to this Agreement have been duly transferred to such successor Escrow Agent. A-9 Article 9. Miscellaneous Section 9.1. Notice. Any notice, authorization, request, or demand required or permitted to be given hereunder shall be in writing and shall be deemed to have been duly given when mailed by registered or certified mail, postage prepaid addressed to the University or the Escrow Agent at the address shown on Exhibit A attached hereto. The United States Post Office registered or certified mail receipt showing delivery of the aforesaid shall be conclusive evidence of the date and fact of delivery. Any party hereto may change the address to which notices are to be delivered by giving to the other parties not less than ten days prior notice thereof. Section 9.2. Termination of Responsibilities. Upon the taking of all the actions as described herein by the Escrow Agent, the Escrow Agent shall have no further obligations or responsibilities hereunder to the University, the owners of the Refunded Bonds or to any other person or persons in connection with this Agreement. Section 9.3. Binding Agreement. This Agreement shall be binding upon the University and the Escrow Agent and their respective successors and legal representatives, and shall inure solely to the benefit of the owners of the Refunded Bonds, the University, the Escrow Agent and their respective successors and legal representatives. Section 9.4. Severability. In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Agreement, but this Agreement shall be construed as if such invalid or illegal or unenforceable provision had never been contained herein. Section 9.5. Washington Law Governs. This Agreement shall be governed exclusively by the provisions hereof and by the applicable laws of the State of Washington. Section 9.6. Time of the Essence. Time shall be of the essence in the performance of obligations from time to time imposed upon the Escrow Agent by this Agreement. A-10 Section 9.7. Notice to Moody’s, Fitch and Standard &Poor’s. In the event that this agreement or any provision thereof is severed, amended or revoked, the State shall provide written notice of such severance, amendment or revocation to Moody’s Investors Service at 7 World Trade Center at 250 Greenwich Street, New York, New York, 10007, Attention: Public Finance Rating Desk/ Refunded Bonds, Fitch Ratings at One State Street Plaza, New York, New York, 10004, Attention: Public Finance Rating Desk/Refunded Bonds and to Standard & Poor’s Ratings Group, 55 Water Street, New York, New York 10041, Attention: Municipal Bond Department. Section 9.8. Amendments. This Agreement shall not be amended except to cure any ambiguity or formal defect or omission in this Agreement. No amendment shall be effective unless the same shall be in writing and signed by the parties thereto. No such amendment shall adversely affect the rights of the holders of the Refunded Bonds. No such amendment shall be made without first receiving written confirmation from the rating agencies, (if any) which have rated the Refunded Bonds that such amendment will not result in a withdrawal or reduction of its rating then assigned to the Refunded Bonds. If this Agreement is amended, prior written notice and copies of the proposed changes shall be given to the rating agencies which have rated the Refunded Bonds. A-11 EXECUTED as of the date first written above. WESTERN WASHINGTON UNIVERSITY Title: [ESCROW AGENT] Title: Exhibit A Exhibit B Exhibit C Exhibit D Exhibit E Appendix A Appendix B Appendix C — — — — — — — — Addresses of the University and the Escrow Agent Description of the Refunded Bonds Schedule of Debt Service on Refunded Bonds Description of Beginning Cash Deposit (if any) and Escrowed Securities Escrow Fund Cash Flow Notice of Redemption — 2003 Bonds Notice of Defeasance — 2003 Bonds Fee Schedule A-12 EXHIBIT A Addresses of the University and Escrow Agent University: Western Washington University 516 High Street Bellingham, Washington 98225 Attention: Vice President, Business and Financial Affairs Escrow Agent: ________________________ ________________________ ________________________ Attention: Corporate Trust Services A-A-1 EXHIBIT B Description of the Refunded Bonds Western Washington University Housing and Dining System Revenue and Refunding Bonds, Series 2003 (“Refunded Bonds”) Maturity Years (October 1) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Principal Amounts $ 735,000 755,000 785,000 815,000 855,000 885,000 915,000 970,000 1,025,000 880,000 860,000 A-B-1 Interest Rates 3.750% 3.850 4.000 4.000 4.125 4.250 4.350 4.400 4.500 4.600 4.650 EXHIBIT C Schedule of Debt Service on Refunded Bonds Date Principal/ Redemption Price Interest Total [Month, Date, Year] $ $ $[Total Amount] Total $[Total Amount] $[Total Amount] $[Total Amount] A-C-1 EXHIBIT D Escrow Deposit I. Cash: $_______ II. Other Obligations Description [SLG, TNOTE] Principal Amount Maturity Date [Month, Date, Year] Interest Rate $ [Rate]% __________ $[Total Amount] III. Total Cost $ $[Total Amount] Costs of Issuance [as applicable] Escrow Agent Fee (____________________________) Bond Counsel Fee (PGE) Escrow Verification Fee ([Escrow Verification]) OS Printing and Mailing Costs (__________________) Rating Agency ([Rating Agency(ies)]) $ TOTAL: $ A-D-1 * ________ EXHIBIT E Escrow Fund Cash Flow Escrow Requirement Date [Month, Date, Year] Excess Receipts Net Escrow Receipts $ $ $ $[Total Amount] $[Total Amount] A-E-1 Cash Balance $ APPENDIX A Notice of Redemption* Western Washington University Housing and Dining System Revenue and Refunding Bonds, Series 2003 NOTICE IS HEREBY GIVEN that the University has called for redemption on April 1, 2013, its then outstanding Housing and Dining System Revenue and Refunding Bonds, Series 2003 (the “Bonds”). The Bonds will be redeemed at a price of 100% of their principal amount, plus interest accrued to April 1, 2013. The redemption price of the Bonds is payable on presentation and surrender of the Bonds at the office of: The Bank of New York Mellon Worldwide Securities Processing 2001 Bryan Street, 9th Floor Dallas, TX 75201 -or- Wells Fargo Bank, National Association Corporate Trust Department 14th Floor 999 Third Avenue Seattle, WA 98104 Interest on all Bonds or portions thereof which are redeemed shall cease to accrue on April 1, 2013. The following Bonds are being redeemed: Maturity Years (October 1) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Principal Amounts $ 735,000 755,000 785,000 815,000 855,000 885,000 915,000 970,000 1,025,000 880,000 860,000 Interest Rates CUSIP Nos. 3.750% 3.850 4.000 4.000 4.125 4.250 4.350 4.400 4.500 4.600 4.650 By Order of Western Washington University * This notice shall be given not more than 60 nor less than 30 days prior to April 1, 2013 by first class mail to each registered owner of the Refunded Bonds. In addition notice shall be mailed at least 30 days prior to April 1, 2013 to The Depository Trust Company of New York, New York; Piper Jaffray & Co., Ambac Assurance Corporation, Moody’s Investors Service and Standard & Poor’s Ratings Services; and to the MSRB. Page 1 - Appendix A The Bank of New York Mellon, as Paying Agent Dated: . Withholding of 28% of gross redemption proceeds of any payment made within the United States may be required by the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the “Act”) unless the Paying Agent has the correct taxpayer identification number (social security or employer identification number) or exemption certificate of the payee. Please furnish a properly completed Form W-9 or exemption certificate or equivalent when presenting your Bonds. Page 2 - Appendix A APPENDIX B Notice of Defeasance* Western Washington University Housing and Dining System Revenue and Refunding Bonds, Series 2003 NOTICE IS HEREBY GIVEN to the owners of that portion of the above captioned bonds with respect to which, pursuant to an Escrow Agreement dated _________, 20__, by and between Western Washington University (the “University”) and ____________________________ (the “Escrow Agent”), the University has deposited into an escrow account, held by the Escrow Agent, cash and non-callable direct obligations of the United States of America, the principal of and interest on which, when due, will provide money to pay each year, to and including the respective maturity or redemption dates of such bonds so provided for, the principal thereof and interest thereon (the “Defeased Bonds”). Such Defeased Bonds are therefore deemed to be no longer outstanding pursuant to Resolution No. 2003-03 of the University authorizing the Defeased Bonds, but will be paid by application of the assets in such escrow. The Defeased Bonds are described as follows: Western Washington University Housing and Dining System Revenue and Refunding Bonds, Series 2003 (Dated May 7, 2003) Maturity Years (October 1) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 * Par Amounts Defeased $ 735,000 755,000 785,000 815,000 855,000 885,000 915,000 970,000 1,025,000 880,000 860,000 Interest Rates 3.750% 3.850 4.000 4.000 4.125 4.250 4.350 4.400 4.500 4.600 4.650 CUSIP Nos. Call Date (@100%) 04/01/2013 04/01/2013 04/01/2013 04/01/2013 04/01/2013 04/01/2013 04/01/2013 04/01/2013 04/01/2013 04/01/2013 04/01/2013 This notice shall be given immediately by first class mail to each registered owner of the Defeased Bonds and to the MSRB. Page 1 - Appendix B Bond Numbers of 2003 Defeased Bonds Information for Individual Registered Owner The addressee of this notice is the registered owner of Bond Certificate No. _____ of the Defeased Bonds described above, which certificate is in the principal amount of $_________. Of that principal amount, $__________ has been defeased as described above. [Date] ____________________________, as Escrow Agent Page 2 - Appendix B APPENDIX C Fee Schedule Escrow Agent Fee: $___________ Page 1 - Appendix C WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: Board Audit Committee and President Bruce Shepard DATE: June 8, 2012 SUBJECT: Approval of 2012-2014 Internal Audit Schedule PURPOSE: Action Item Purpose of Submittal: In accordance with the Audit Committee’s authorities, outlined in its Charter, the committee has reviewed and recommends the attached 2012-2014 Internal Audit Schedule to the Board of Trustees for its review and approval. The Office of the Internal Auditor creates a risk-based audit schedule to maximize the effective use of Western’s Internal Audit resources. In developing the 2012-2014 Internal Audit Schedule, Internal Audit utilized a risk assessment process, solicited input from across campus, considered planned external audit coverage, included required follow up audits and allowed for flexibility for contingencies that may arise during the year. Draft Internal Audit Schedules were discussed with the Vice Presidents, Provost, President, and Audit Committee. Proposed Motion: MOVED, that the Board of Trustees of Western Washington University, upon recommendation of the Board of Trustees Audit Committee and President Shepard, approve the 2012-2014 Internal Audit Schedule. Documents Attached:  2012-2014 Internal Audit Schedule DRAFT – 5-25-12 Western Washington University Office of the Internal Auditor 2012-2014 Internal Audit Schedule 2012-2013 OPERATIONAL/FINANCIAL AUDITS 2013-2014 OPERATIONAL/FINANCIAL AUDITS Associated Bookstore Overtime Special Investigation – IN PROCESS Registrar’s Office To review concerns related to overtime time keeping in the Associated Students Bookstore. To review and evaluate the operational efficiency, effectiveness and compliance of the University’s registration, transcript, and grade reporting processes and maintenance of sensitive information. Huxley College - Audit of Fee Expenditures– IN PROCESS Grant Administration Process To review and evaluate Huxley Colleges’ course and lab, service and facility rental fees for compliance with the university’s processes. To review and evaluate the operational efficiency, effectiveness and compliance of the University’s grant processes. Services and Activities Fee Process Department Purchasing Card Audit To review and evaluate the operational efficiency, effectiveness and compliance of the University’s processes for administering services and activities fees. To review and evaluate department’s compliance with state law and University purchasing card policies and procedures. Athletics Department – Financial Operations Laboratory Chemicals Audit To review and evaluate the efficiency, effectiveness and compliance of the Athletic Department’s financial operations. To review and evaluate the administration and handling of the University’s laboratory chemicals for safety and compliance. WWU - Office of the Internal Auditor - 2012-2014 Internal Audit Schedule DRAFT FOR BOT APPROVAL June 8, 2012 Page 1 DRAFT – 5-25-12 2012-2013 2013-2014 Student Travel Abroad Oversight Compliance Student Sports Clubs To review and evaluate if all events or programs where Western Washington University students travel and study outside of the United States are administered under the direction of the Center for International Studies in compliance with University policies. To review and evaluate student sports club fundraising processes for efficiency, effectiveness and compliance. Cash Audits Fraud Risk Management Program - Assessment This on-going project monitors the efficiency, effectiveness and compliance of the University’s cash handling processes. To evaluate the University’s fraud risk management practices and controls to determine if the potential risk of fraud is reasonably managed. Quarterly President Expense Reviews Cash Audits This on-going project monitors the efficiency, effectiveness and compliance of the University’s cash handling processes. To review the President’s state-funded travel and entertainment expenses for compliance with state rules and University policies. Quarterly President Expense Reviews To review the President’s state-funded travel and entertainment expenses for compliance with state rules and University policies. FOLLOW UP AUDITS Vending Machine Contracts – IN PROCESS Payroll Time Keeping Audit Purchasing Card Audit Outside Consulting and Employment Audit Payments and Reimbursements to Board of Trustees Audit Computer Science Department Payroll Overpayment Investigation WWU - Office of the Internal Auditor - 2012-2014 Internal Audit Schedule FOLLOW UP AUDITS Accounts Receivable and Collections Audit Property Management Contract Consultation Accounts Payable Process Audit Lakewood Center Use of Resources Special Investigation DRAFT FOR BOT APPROVAL June 8, 2012 Page 2 WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: Bruce Shepard, President DATE: June 8, 2012 SUBJECT: Election of Board Officers PURPOSE: Action Item Purpose of Submittal: Chair Madsen will hear discussion and nominate Board officers pursuant to the WWU Board of Trustees Rules of Operation, Section 5(.01) Officers and Terms. This section in the Rules of Operation states that the Board will elect a chair, vice chair, and secretary for two-year terms. Proposed Motion: MOVED that the Board of Trustees of Western Washington University elect the new Board officers as nominated, to be effective at the close of this meeting. Peggy Zoro, Chair Ralph Munro, Vice Chair Betti Fujikado, Secretary Publicity: Office of University Communications WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: President Bruce Shepard by Stephanie Bowers, Vice President for University Advancement and Executive Director, WWU Foundation DATE: June 8, 2012 SUBJECT: Campaign Update PURPOSE: Discussion Item Purpose of Submittal: Stephanie Bowers, Vice President for University Advancement and Executive Director of the WWU Foundation, will provide an update to the board on the Western Washington University campaign. WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: President Bruce Shepard by Vice President Eileen V. Coughlin DATE: June 8, 2012 SUBJECT: Tuition Waivers PURPOSE: Discussion Item Purpose of Submittal: To provide an overview of tuition waivers Supporting Information: The amount of tuition waivers, covered under the 10% limit, that were granted to students in FY 2011 was $6,822,448 (operating dollars). o Enrollment and need-based support comprised 65% of that amount for the purpose of access, retention, keeping student borrowing at a reasonable level; and to shape enrollment with an emphasis on attracting a diverse and talented class. o Graduate assistants for teaching received 18% of the total. o Mandated waivers were 3% of the total to provide support to veterans, firefighters, and their families. o The remaining 14% of waiver dollars were used for other waivers. o Portions of graduate, mandated, gender equity and other waivers include waivers based on need. o In addition, there is tuition discounting invested to attract out-of-state students. 3% Enrollment and needbased 14% Graduate assistants 18% Mandated 65% Other Over, please… Fall 2011 Source: WWU Peak Data (WWU IR, Nov. 2011) Number of Students FTE Students # Resident % Resident % Non-Resident # First Generation % First Generation # Students of Color % Students of Color # Started as Transfer % Started as Transfer If started as Transfer, # from WA CC If started as Transfer, % from WA CC # Students where last college = WA CC (includes Running Start) % Students where last college = WA CC (includes Running Start) # receiving any fee waiver % receiving any fee waiver # receiving any financial aid % receiving any financial aid New Freshman Class 2,695 2,576.9 2,363 87.7% 12.3% 836 31% 628 23% Undergrad Students 13,685 12,927.2 12,595 92.0% 8.0% 4,389 32% 2,859 21% 3,431 25% All Students 14,842 13,909.6 13,610 91.7% 8.3% 4,569 31% 2,984 20% 2,750 80% 5,237 38% 965 2,817 3,109 36% 21% 20% 1,917 8,247 8,829 71% 60% 59% Authority for granting tuition waivers is two-fold: o The Revised Code of Washington (primarily section 28B.15) dictates how much Western can grant in tuition waivers, currently capped at 10% of our operating budget. Some waivers are permissive and some, such as veterans, police and firefighters, are mandatory. o In 2000, the Washington State Senate passed SB 6010 allowing campuses to waive all or a portion of the operating fees for any student with the caveat that there would be no state general fund support for those waivers. WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: Peggy Zoro, Chair, Board Audit Committee DATE: June 8, 2012 SUBJECT: Board Audit Committee Report PURPOSE: Information Item Purpose of Submittal: To report to members of the Board of Trustees and the university president and his staff topics related to the Board Audit Committee. WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: President Bruce Shepard by Provost Catherine Riordan DATE: June 8, 2012 SUBJECT: Academic Report: Performance Plan PURPOSE: Information Item Purpose of Submittal: To provide information about the "Performance Plan" that Western established through negotiations with Governor Gregoire's staff and office. The plan describes benchmark performance data for Western and sets performance goals to be reached by 2014. Background Narrative As part of Governor Gregoire's leadership of the National Governor's Association, she helped establish the "Complete to Compete" initiative, a recommended funding framework established to reward public universities for their performance. A result of widespread concern about low college graduation rates at public universities, the "Complete to Compete" initiative was a poor fit with high achieving universities, like Western. Whereas, nationally, half the students who go to college do not graduate, graduation rates at WWU are arguably the best in our class. Consequently, an "improve your performance or lose your funding" orientation never fit our situation. No new funding was provided to enable the state's universities to improve their performance. Given the cuts we have sustained and Washington’s current position as one of the most highly performing group of public universities in the country,* we proposed "performance targets" that mirror our current performance. Negotiations The Governor's Office rejected these "sustaining" targets and insisted we set higher goals. A working team that included the Vice Provost for Undergraduate Education and the Office of Institutional Research met to review the performance metrics. Informed by the strategic plan, internal assessments, and previous discussions with faculty and college bodies, this team recommended that the University to seek to improve the retention and both 4 and 6-year graduation rates of students who qualify for Pell Grant Assistance. The Accreditation and Assessment Advisory Committee (AAAC) affirmed improvement in this area as a performance goal that arises out of our own self-studies and which the university community supports. Drawing from discussions with the Vice Presidents, we also recommended a performance goal for increasing the percentage of graduates who are employed or in graduate school. Sherry Burkey reported that the Governor's Office supported these goals but sought overall growth in our total number of graduates. She recommended that Western accept this recommendation, hence the performance goal for that metric. We expect to exceed that goal next year but estimate that the total number of graduates will drop below that rate by 2014, as predicted by current rates of retention for that class. *According to the Education Trust, the Universities most "similar" in results to WWU are James Madison University, the University of New Hampshire, Illinois State University, the University of Wisconsin-La Crosse, the University of Oregon and SUNY Albany. Not surprisingly, most of these are research institutions, or universities that are more selective and better funded than we are. Supporting Information: Office of Financial Management’s (OFM) 2012 Higher Education Performance Plans for all state universities: http://www.ofm.wa.gov/performance/plans/default.asp WWU’s Performance Plan 2012   Western  Washington  University   U   Student  (FTE)   WWU  Profile   Student  Enrollment:     x Undergraduate:  12,650   x Graduate:  664        UW                WSU            EWU            CWU              TESC            WWU   Median  SAT   score   UW                      WSU          EWU            CWU                  TESC          WWU     Median  SAT  score,  2011:    1121     Percentage  of  Pell-­‐Eligible  Undergraduates:  25.6%       “The  state’s  third-­‐largest  higher  education   institution,  Western  is  among  the  most  selective   public  higher  education  institutions  in  the  Pacific    Northwest.”     Student  Aid     UW                WSU            EWU              CWU            TESC              WWU   Admittance     rate   UW              WSU              EWU                CWU            TESC            WWU       Time  and  Credits  to  Degree   Time  to  degree  (full-­‐time,  first-­‐  time  students)   Measures  number  of  years  students  take  to   complete  degrees.    Lower  time  to  degree  indicates   better  performance.   x WWU’s  time  to  degree  is  better  than  the   national  average.           Credits  to  degree  (full-­‐time,  first-­‐  time  students)   Measures  total  credits  earned  by  students   graduating  with  a  degree,  a  measure  of  how   efficiently  earned  credits  translate  to  degree   attainment.    A  degree  requires  a  minimum  of  180   quarter  credits  for  graduation.    Lower  credits  to   degree  indicates  better  performance.             WWU  -­‐  1     2012   Western  Washington  University   U   Student  Retention  and  Success   Retention  rate  (fall-­‐to-­‐fall,  new    full-­‐time,  first-­‐  time   students)   Measures  the  percentage  of  all  entering  freshmen   returning  in  the  fall  of  their  sophomore  year,  a   measure  of  student  persistence.   x     WWU’s  freshman  retention  rate  is  better  than   the  national  average,  with  a  goal  to  maintain   the  baseline  retention  rate  of  84.2%.   Retention  rate,  Pell  Grant  recipients  (fall-­‐to-­‐fall,   new    full-­‐time,  first-­‐  time  students)   Measures  the  annual  percentage  of  low-­‐income   students  continuing  toward  degree  completion.     WWU’s  goal  is  to  increase  retention  rates  for  low   income  students  by  2.2%  to  81.0%,  and  to  within   nearly  3%  of  the  retention  rate  for  the  overall   student  population.     Four-­‐year  graduation  rate  (new    full-­‐time,  first-­‐   time  students)   Measures  the  percentage  of  all  undergraduate   students  attaining  a  bachelor’s  degree  within  four   years  of  enrollment.   x WWU’s  four  year  graduation  rate  is  significantly   better  than  the  national  average.         Four-­‐year  graduation  rate,  Pell  Grant  recipients   (new    full-­‐time,  first-­‐  time  students)   Measures  the  percentage  of  low-­‐income   undergraduate  students  attaining  a  bachelor’s   degree  within  four  years  of  enrollment.    WWU’s   goal  is  to  increase  four-­‐year  graduation  rates  for   low  income  students  by  2.2%  to  33.0%     WWU  -­‐  2     2012   Western  Washington  University   U   Six-­‐year  graduation  rate  (new    full-­‐time,  first-­‐  time   students)   Measures  the  percentage  of  all  undergraduate   students  attaining  a  bachelor’s  degree  within  six   years  of  enrollment.   x WWU’s  six    year  graduation  rate  is  significantly   better  than  the  national  average,  with  a  goal  to   improve  from  68.8%  to  71.0%       Six-­‐year  graduation  rate,  Pell  Grant  recipients   (new    full-­‐time,  first-­‐  time  students)   Measures  the  percentage  of  low-­‐income   undergraduate  students  attaining  a  bachelor’s   degree  within  six  years  of  enrollment.      WWU’s  goal   is  to  improve  from  61.4%  to  65.0%       Degree  Production   Bachelor’s  degrees  awarded   Measures  the  annual  number  of   bachelor’s  degrees  awarded.    WWU’s  goal   is  to  maintain  baseline  degree  production.     High-­‐demand  bachelor’s  degrees   awarded   Measures  the  annual  number  of   bachelor’s  degrees  awarded  in  high   demand  fields.    With  new  funding,  WWU’s   goal  is  to  increase  the  number  of  high   demand  degrees  produced  by  14%  from   baseline.         WWU  -­‐  3     2012   Western  Washington  University   U   Bachelor’s  degrees  –  Pell  Grant  recipients   Measures  the  annual  number  of   bachelor’s  degrees  awarded  to  low-­‐ income  students.    WWU’s  goal  is  to   increase  low-­‐income  student  bachelors’   degrees  by  29  degrees,  an  increase  of  3%.     Advanced  degrees  awarded   Measures  the  annual  number  of  master’s   degrees  awarded.    WWU’s  goal  is  to   maintain  the  baseline  of  330  advanced   degrees.                     Institution-­‐Specific  Metrics   Percent of Bachelor's Degree Recipients either Employed or Continuing their Education WWU’s  goal  is  to  increase  by  0.8%  the   number  of  recent  graduates  who  are   employed  or  continuing  their  education.     WWU  -­‐  4     2012   Western  Washington  University   U   Percentage  of  BA  graduates  with  no  loan   debt   WWU’s  goal  is  to  increase  by  0.7%  the   number  of  recent  graduates  who  are   employed  or  continuing  their  education.           6-­‐Year  Graduation  Rate  for  Students  of   Color   Measures  the  percentage  of  undergraduate   students  of  color  attaining  a  bachelor’s   degree  within  six  years  of  enrollment.       WWU’s  goal  is  to  improve  from  64.3%  to   66.0%.       WWU  -­‐  5     2012   Western  Washington  University   U   Western Washington University: Performance Plan Narrative Western  Washington  University  is  ranked  by  U.S.  News  and  World  Report  as  the  finest  masters-­‐granting   university  in  the  region  and  the  second-­‐best  in  the  entire  West,  including  a  region  stretching  from  the   Mississippi  River  to  the  Pacific  Ocean.  The  state’s  third-­‐largest  higher  education  institution,  Western  is   among  the  most  selective  public  higher  education  institutions  in  the  Pacific  Northwest.  Western’s  fall   2010  enrollment  was  14,979  full-­‐and  part-­‐time  students;  19%  of  students  are  students  of  color.  Through   its  Extended  Education  Office,  Western  offers  classes  in  Bremerton,  Everett,  Port  Angeles,  Seattle,  and   Anacortes.  Through  its  International  Programs  Office,  Western  students  travel  worldwide  to  earn   academic  credit  and  gain  invaluable  experiences.  More  than  100,000  of  Western’s  graduates  live  in   Washington.  The  University  has  won  national  recognition  for  its  community  service  and  engagement,  its   green  energy  and  environmental  practices,  and  for  the  Peace  Corps  participation  of  its  graduates.   th   Kiplinger’s  ranks  Western  38 in  its  list  of  the  nation’s  100  “Best  Values”  in  public  colleges  and   universities  based  on  quality  and  cost.     Key  indicators  of  university  quality,  while  historically  high  for  Western,  have  continued  to  improve  over   the  last  decade.  Fall-­‐to-­‐fall  retention  for  freshmen  has  risen  from  81%  prior  to  2002  to  84%  in  2010.  Six-­‐ year  graduation  rates  have  risen  from  61%  for  the  2000  co  hortto  69%  as  reported  for  our  2009-­‐10   baseline.  Similarly,  four-­‐year  graduation  rates  have  risen  from  28%  for  the  2000  cohort  to  40%  as   reported  for  our  2009-­‐10  baseline.  Indeed,  Western’s  graduation  rates  are  among  the  highest  for   universities  in  our  classification  (public,  Masters-­‐granting,  large),  more  than  11%  above  the  national   average.  Moreover,  graduation  rates  for  Native  Americans,  Latino  students,  and  African  American   students  are  more  than  15%  higher  than  the  national  average  for  universities  in  our  classification.     While  teaching  is  at  the  core  of  what  Western  does,  the  university  is  also  a  powerful  engine  of   academic  research  and  creative  productivity.  Faculty  and  students  are  engaged  in  cutting-­‐edge   research  projects:  exploring  cheaper,  more  efficient  solar  panels,  designs  for  a  lightweight  hybrid  bus,   new  treatments  for  schizophrenia,  the  ecological  effects  of  removing  the  Elwha  River  Dam,  mid-­‐ocean   volcano  analysis,  and  faster  movement  of  cargo  at  the  Canadian  border,  just  to  name  a  few.       Western  pursues  open,  transparent  and  continual  improvement  processes.  When  internal  analyses   demonstrated  that  delays  in  major  declaration  and  course  access  bottlenecks  were  impacting  time  to   degree  for  many  students,  the  university  implemented  a  strategic  improvement  initiative,  coordinated   across  all  divisions.  This  initiative  includes  new  advising  initiatives,  a  streamlined  major  declaration   process,  accelerated  two-­‐year  transfer  programs,  a  parent  communication  campaign  to  reinforce  a  four-­‐ year  graduation  expectation,  and  Viking  Landing:  Making  the  Most  of  Your  GURs,  an  information  and   dialog  session  preceding  every  quarterly  registration  period  to  help  students  navigate  their  general   education  requirements.    To  aggressively  target  course  access  bottlenecks,  Western  made  additional   budget  cuts  and  shifted  resources  to  rapidly  fund  additional  sections  in  high-­‐demand  courses,  created   technical  tools  to  improve  course  planning  and  initiated  a  wait-­‐listing  procedure  that  prioritizes   enrollment  based  on  need.     WWU  -­‐  6     2012   Western  Washington  University   U   Western  is  also  committed  to  increasing  degree-­‐production  in  high-­‐employer  demand  programs  and  in   critical  areas  of  state  needs.  Over  the  last  five  years,  Western  has  rebased,  shifting  resources  to  hire   faculty  and  expand  course  offerings  in  high-­‐employer  demand  programs  of  study  that  meet  critical  state   needs.  Between  2005  and  2011,  Western  has  seen  an  increase  of  49%  in  students  majoring  in  STEM   areas  and  a  29%  increase  in  STEM  graduates.     Western  faces  several  challenges  in  its  efforts  to  continue  to  improve.  These  include  faculty  being  hired   away  because  of  non-­‐competitive  and  low  salaries,  the  precipitous  drop  in  state  support,  the  lowest   dollars  per  student  funding  of  any  of  the  State’s  higher  education  institutions,  including  lower  funding   on  per  student  basis  than  the  community  colleges,  faculty  and  staff  reductions  forced  by  budget  cuts,   the  rising  cost  of  tuition,  salary  compression  and  the  general  decline  in  the  economic  resources  of   students  and  their  families.     Washington  State  citizens  receive  significant  benefits  from  the  contributions  of  Western  Washington   University  through  education,  research  and  public  service.  With  increasing  state  support  in  the  form  of   resources  to  match  the  level  of  expected  outcomes  within  this  Performance  Plan,  Western  will  continue   to  create  future  leaders  for  all  sectors  of  the  state.    The  University  will  continue  to  make  significant   contributions  to  a  highly-­‐skilled  workforce  and  to  provide  significant  value  to  the  state’s  economy.  With   adequate  funding,  Western  will  achieve  its  mission  of  building  a  stronger  Washington  by  building  upon   its  considerable  strengths  to  address  critical  state  needs  and  expand  student  access  to  rigorous  and   engaging  baccalaureate  and  graduate  education.       Western Washington University “Pride Points” x Our  graduation  rates  are  among  the  highest  in  our  class,  more  than  11%  points  above  the  national   average  for  regional  universities  within  our  Carnegie  classification  (public,  Masters-­‐granting,  large).     x Our  graduation  rates  for  African  American,  Hispanic  and  Native  American  students  are  more  than   15%  higher  than  the  national  average  for  universities  within  our  Carnegie  classification.     x WWU  is  the  only  public  university  in  the  state  to  be  awarded  the  Honor  Roll  recognition  for  public   service  by  President  Obama.     x     Kiplinger's  ranks  Western  38th  in  its  list  of  100  Best  Values  in  Public  Colleges  and  Universities.     3/7/2012                     WWU  -­‐  7     2012   Western  Washington  University   U   Western  Washington  University   Student  Enrollment     Annual  Average  FTE 2010-­‐-­‐-­‐11 2000-­‐-­‐-­‐01 State-­‐ UCNPS* Self-­‐ All                  12,100.0        155.4                            3    94.3    1    2,649.8                            547.3          5    3.7                                  63.0              6    64.1                  12,647.4        209.2                            4    57.4    1    3,313.9                  10,673.6 n/a n/a    1    0,673.6                            517.6 n/a n/a              5    17.6                  11,191.2 n/a n/a    1    1,191.2 Undergraduate Graduate/Professional Total Undergraduate Graduate/Professional Total Average  of  Fall,  Winter  and  Spring   Non  State-­‐-­‐-­‐Funded  enrollments  were  not  reported  in  2000-­‐-­‐-­‐01   2000-­‐-­‐-­‐01  enrollment  does  not  include  23  AA  FTE  in  "Timber  Worker  Displacement  Program"   *University  Center  of  North  Puget  Sound     Annual  Average  Headcount 2010-­‐-­‐-­‐11 2000-­‐-­‐-­‐01 State-­‐ UCNPS* Self-­‐                  12,932.0        181.3                            5    00.3                            589.3          6    3.7                            1    00.7                  13,521.3        245.0                            6    01.0                  11,272.0 n/a n/a                            550.0 n/a n/a                  11,822.0 n/a n/a Undergraduate Graduate/Professional Total Undergraduate Graduate/Professional Total Annual  Average  FTE 2010-­‐-­‐-­‐11 2000-­‐-­‐-­‐01 State-­‐ UCNPS Self-­‐-­‐-­‐Sustain All                              1    0.6          3    3.6                            1    16.9              1    61.2 n/a n/a                            4    57.4              4    57.4 n/a n/a n/a n/a n/a n/a n/a n/a Distance  Learning Self-­‐-­‐-­‐Sustaining Distance  Learning Self-­‐-­‐-­‐Sustaining Fall  Quarter  Undergraduates All 92.1% 25.6% 20.6% 20.6% 94.0% 20.2% 13.5% 13.5% %  Resident %  Pell-­‐-­‐-­‐Eligible %  Students  of  Color %  Underrepresented   Minority %  Resident %  Pell-­‐-­‐-­‐Eligible %  Students  of  Color %  Underrepresented   Minority Fall  2011 Fall  2001 Undergraduate   Student  Body  Profile     Students  of  color:  Includes  Hispanic/Latino  of  any  race,  Black/African-­‐-­‐-­‐American,  Asian,  American  Indian/Alaskan  Native,  Native     Hawaiian/Pacific  Islander,  Two  or  more  Races     URM:  Includes  Hispanic/Latino  of  any  race,  Black/African-­‐-­‐-­‐American,  American  Indian/Alaskan  Native,  Native  Hawaiian/Pacific  Islander,     Two  or  more  Races     Complete  Undergraduate  Applications 2010-­‐-­‐-­‐11 2000-­‐-­‐-­‐01 Total Resident Non-­‐-­‐-­‐Resident %  Admit  rate  -­‐-­‐-­‐  residents Total Resident WWU  -­‐  8     All                        13,184                        11,256                            1,897 67%                        10,522                            8,935 2012   Western  Washington  University   U   Non-­‐-­‐-­‐Resident %  Admit  rate  -­‐-­‐-­‐  residents                            1,471 78% Residency  not  determined  for  some  applicants     Entering  Undergraduate  Class 2010-­‐-­‐-­‐11 2000-­‐-­‐-­‐01 All First-­‐-­‐-­‐Time,  First  Year  Students %  FTFY  -­‐-­‐-­‐  WA  residents %  FTFY  -­‐-­‐-­‐  First-­‐-­‐-­‐Generation %  Enrolling  on  campus  in  remedial  courses Average  High  School  GPA Average  SAT  composite  score Transfer  Students %  Transfers  -­‐-­‐-­‐  WA  residents First-­‐-­‐-­‐Time,  First  Year  Students %  FTFY  -­‐-­‐-­‐  WA  residents %  FTFY  -­‐-­‐-­‐  First-­‐-­‐-­‐Generation %  Enrolling  on  campus  in  remedial  courses Average  High  School  GPA Average  SAT  composite  score Transfer  Students %  Transfers  -­‐-­‐-­‐  WA  residents 90% 32% 2% 3.5 1121.4 93% 94% 31% 2% 3.4 1082.4 89% Research  Expenditures 2010-­‐-­‐-­‐11 2000-­‐-­‐-­‐01 $10,878,151 $8,423,875 1  FTE:  Broken  into  undergraduate   and  graduate/professional   based  on  student  level.  Calculation,   regardless  of  level   is  SCH/45  for  undergraduate   courses  and  SCH/30  for  graduate  courses  (assuming  quarters).     WWU  -­‐  9     WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: President Bruce Shepard by Provost Catherine Riordan DATE: June 8, 2012 SUBJECT: Academic Report: New Tenure Track Faculty PURPOSE: Information Item Purpose of Submittal: Information about newly hired tenure-track faculty for 2012-13 academic year. Supporting Information: List new tenure-track faculty for AY 2012-13 WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: President Bruce Shepard by Vice President Eileen Coughlin DATE: June 8, 2012 SUBJECT: Admissions and Enrollment Summary PURPOSE: Information Item Purpose of Submittal: To provide a general update on enrollment and admissions June 2012 Enrollment and Admissions Report Prepared by Clara Capron, Executive Director of Admissions and Financial Aid Fall 2012 Admissions Western experienced an increase of 703 freshman admissions applications for Fall 2012 compared to Fall 2011. The admit rates for students were nearly identical to those for Fall 2011. With the admission cycle for Fall 2012 nearly complete, the size of the incoming freshman and transfer class is projected to be slightly larger than Fall 2011. Freshmen applications rose 7.7% to 9782 (compared to 9079 for Fall 2011) and transfer applications decreased by 4.9% to 2364 (compared to 2486 for Fall 2011). The transfer applications to date are primarily from the state of Washington with nearly 1,000 applicants (42.3%) being students who anticipate transferring to WWU after completing their Washington State Direct Transfer Degree. We are currently seeing an increase in the number of undergraduates returning after taking one or more quarters off from Western, with 57 already enrolled for Fall 2012 compared to 37 at this time last year. Fall 2012 enrollment targets are 875 – 950 transfers (857 in Fall 2011) and 2,790 – 2,825 freshmen (2,693 in Fall 2011). Overall academic quality remains fairly consistent with the past few years. We have students coming from 46 states and are proud to note that six National Merit finalists have confirmed with Western for the upcoming fall. We anticipate enrolling 30 more nonresident students compared to Fall 2011 and 30 more students in the top Admissions Index categories (a formula derived from GPA and test scores) compared to Fall 2011. Financial Aid reports a 14% (816) increase in freshman and transfer students awarded by May compared to the same time last year. In accordance with a recommendation from Scannell & Kurz Consultants, Financial Aid sent estimated awards to students who would otherwise have received their finalized awards later in the awarding process due to the need for Financial Aid to request and review additional information. Approximately 1,600 freshman and transfer students received estimated awards in mid-March and early April rather than in late April, which supported earlier confirmation decisions. Western Washington University was the only four-year public institution to award College Bound Scholarships to prospective freshmen by May 1. Awarding processes associated with College Bound are new and complex. We are pleased to report that a total of 484 prospective freshmen were awarded $8,510 via the College Bound Scholarship program. The College Bound Scholarship program encourages low-income, middle school students to choose a path that will lead to educational success after high school. The program promises tuition (at public institution rates) and a small book allowance for income-eligible students who sign up in the 7th or 8th grade, work hard in school, stay out of legal trouble, and successfully apply to a higher education institution when they graduate. The recruitment process for fall 2013 is already well underway. The Office of Admissions partnered with the Alumni Association and New Student Services/Family Outreach to host ”Spring into Western,” an Admissions open house in conjunction with Back2Bellingham weekend on May 19. The program drew more than 700 guests including more than 150 prospective students for Fall 2013. WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: President Bruce Shepard by Stephanie Bowers, Vice President for University Advancement and Executive Director, WWU Foundation DATE: June 8, 2012 SUBJECT: Alumni Association Report PURPOSE: Information Item Purpose of Submittal: Provide an update to the Board on Alumni Relations activities. Supporting Information: Report Attached OFFICE OF ALUMNI RELATIONS News In its third year, Back2Bellingham 2012 Alumni & Family Reunion exceeded expectations and prior year attendance by 133% with more than 7000 alumni, families and friends coming to campus from 8 states, British Columbia, and the District of Columbia. They represented 48 class years ranging from 1969–2017. New marketing tactics helped to drive attendance and included billboard and bus ads along the greater Seattle I-5 corridor, increasing Western’s visibility to an audience of 3.7 million people; direct mail to all Bellingham elementary school students; and Whatcom County bus ads and signage in area retailers. Over the four day event, they choose from more than 100 educational, recreational and social activities organized by campus colleges, departments, student organizations and programs. Planning is underway for Back2Bellingham IV and is scheduled for May 16th– 19th, 2013 with Woodring College of Education as the academic reunion focus. Growing and encouraging Western communities in corporations with a large concentration of alumni and parents is critical to keeping them informed and involved in the story of WWU. The Western@Boeing effort launched the program in May with a questionnaire to the 2,400 alumni and parents resulting in nearly 600 respondents with 94% indicating they wanted to receive quarterly Western news and 86% indicated an interest in on-site alumni programs and networking. Similar programs will be created at additional Puget Sound area corporations. Alumnus Chris Witherspoon ’93 has been nominated and confirmed to join the Alumni Association Board of Directors. He brings great depth of skill and diversity through his college affiliation, profession, ethnicity, gender, age and status as a former WWU football play. Alumni Events Ongoing broad-based engagement opportunities continue to be a focus. Since July, we have planned and executed 32 events and programs with an additional 8 in the upcoming three months. Capital Program Report Board of Trustees June 8, 2012 MAJOR/INTERMEDIATE CAPITAL PROJECTS Carver Academic Renovation The LMN Architects consultant team, along with Western representatives, has completed the process of documenting the academic program and facility’s needs, and are working on schematic design documents. Mortenson Construction the project general contractor/construction manager (GC/CM), has also joined the team and is assisting with cost and constructability issues. Schematic design is scheduled to be complete in August 2012. If funding is received from the legislature, construction is planned to start in mid-2014 and be completed spring of 2016. Fraser Hall Renovation The renovation will upgrade the entire building to address building issues such as the heating, ventilation and air conditioning (HVAC) system, access and code issues by adding elevator access, and constructing accessible restroom facilities. Programmatic needs will be addressed, such as replacement of fixed seating and the addition of technology to support a variety of learning modalities. The consultant team is working with Western representatives evaluating schematic design concepts. Design Development is scheduled to begin by the end of June. Construction documents are scheduled to be completed and ready for bidding by fall 2012. Construction is scheduled to begin January 2013 with final completion by Fall Quarter 2013. Classroom and Lab Upgrades Work will occur in 20 classrooms in seven buildings on the main campus. Work includes: hazardous materials abatement; new lecture podium systems with computer, video and projection equipment; projection screens; whiteboards; modifications to doors, walls and ceilings; new flooring, ceilings and acoustical wall treatments; modifications to mechanical and electrical systems; and updated furnishings in some rooms. The construction contract has been processed and construction is scheduled to start June 11. Work will occur in two phases: summer of 2012 and fall of 2012. All work during summer is scheduled to be complete by the start of Fall Quarter 2012. All work during fall is scheduled to be complete by start of Winter Quarter 2013. 2013-15 CAPITAL PLANNING PROCESS A final recommendation of the University’s 2013-2023 Ten Year Plan and 2013-2015 Capital Budget Request is before the Board in a separate item. Upon approval, all of the corresponding documents will be completed over the next few months, and submitted to the Office of Financial Management. For more information about the major projects, the Capital Program, and the Capital Planning Process, visit the Office of Facilities Development and Capital Budget website: http://www.wwu.edu/wwuarchitect/. WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: President Bruce Shepard by Stephanie Bowers Vice President for University Advancement and Executive Director, WWU Foundation DATE: June 8, 2012 SUBJECT: Development Report PURPOSE: Information Item Purpose of Submittal: Provide an update to the Board on Western Washington University Foundation activities. Supporting Information: Report Attached OFFICE OF DEVELOPMENT Gift and commitments for the campaign reached $8 million as of the Foundation Board meeting on May 17th. The Foundation is transitioning to a new board format. A smaller (15-20 member) core group will comprise the Governing Board; directors of the Board will be responsible for the strategic planning and visioning of the foundation as well as have fiduciary responsibility for managing the assets. A somewhat larger group, Foundation Board Members, will be expected to attend the annual meeting of the Foundation, provide financial support, identify new supporters, and lend their expertise when called upon. The 15th annual Seattle Business Forum raised $155,000 for scholarships. More than $35,000—an all-time high—was realized from the solicitation made at the event. The third annual Gathering of Advocates and the Spring President’s Club event were hosted during Back2Bellingham weekend with a combined total of 300 attendees at both events. Gifts and Commitments of Note • A gift of $20,000 from Russell Investments to support the Center for Economic Education. • A gift of $15,000 from the Snohomish Public Utilities District to support the Institute for Energy Studies. • A total of $52,000 from the Kaiser-Borsari Educational Fund to support scholarships. • A gift of $15,000 from Bering Sea Fisheries Research Foundation to support Shannon Point Marine Center. • A gift of $10,000 from Jerry and Truc Thon to support a variety of WWU programs. • A gift of $30,000 from David Mason for continued funding of the Adventure Learning Grants through Fairhaven College. • An estate commitment of $1.5 million from Paul and Mary Ann Ford for future scholarships and the fly-fishing collection in the Library. Upcoming Events August 2nd: Seattle-area President’s Club summer BBQ, The Canal August 9th: Bellingham-area President’s Club summer BBQ, WWU Softball Field WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: President Bruce Shepard by Provost Catherine Riordan DATE: June 8, 2012 SUBJECT: Quarterly Report on Grants and Contracts PURPOSE: Informational Item Purpose of Submittal: Information from the Office of Research and Sponsored Programs concerning grant awards for the period October 1, 2011 – March 31, 2012 and fiscal year 2011/12. Supporting Information: Grant awards/totals for the period 10/1/10 – 3/31/12 Grant awards for the fiscal year 2011/12 Grant Awards for the Period 1/1/12-3/31/12 The total amount of grants and contracts received this period was $ 1,640,157. This includes both new awards and additions to existing awards. Department Anthropology Biology Canadian/American Studies Chemistry Child Development Center Geology Huxley Journalism Physics/Astronomy Police Department Psychology Shannon Point Marine Center Small Business Development Center Wilson Library Total Award Total $ # New Awards 2,000 748,275 105,063 2,000 10,844 211,644 4,000 1 4 4 2,500 135,477 799 22,567 373,738 20,000 750 1 1 1 __________ $1,640,157 # Additions 1 1 1 1 1 1 3 1 1 __________ 16 __________ 7 SUBJECT: YTD Grant Awards Department Anthropology Biology Business & Economics Campus Compact Canadian/American Studies Center for Economic Vitality Chemistry Child Development Center Critical Juncture Institute Engineering Technology English Geology History Huxley Journalism 7/1/119/30/2011 133,688 57,566 56,000 685,000 16,857 180,000 207,000 10/1/1112/31/2011 1/1/123/31/2012 4/1/126/30/2012 Fiscal Year 2011-12 2,000 748,275 1,197,096 105,063 50,000 9,970 2,500 10,844 4,500 15,312 121,934 164,914 141,212 10,000 211,644 10,765 4,000 2,500 Mathematics Physics/Astronomy Police Department Psychology 160,178 Science, Math & Tech Ed Shannon Point Marine Center 497,152 279,506 41,622 5,330 WCE 1,707,082 4,672 Total $ 4,412,589 $ 1,344,767 135,477 799 22,567 Small Business Dev Center Wilson Library 373,738 20,000 750 $ 1,640,157 $ - $ 7,397,513 GRANT AWARDS FOR THE PERIOD FUND 51582 51153 51154 56302 56304 55765 56732 56731 56734 DESCRIPTION Workshop Travel Support Ecology of Microbial Mats RUI: Stomatal Differntiation Zetaproteobacteria/Microbial Comm. Ecology of Zetaproteobacteria National Resource Center '11-12 Seminar: Beyond the Border Quebec Guest Professor 2012 National Consortium on Canada 56662 55769 Add to Discretionary Award HECB Child Care Grant 51155 Late CenozoicCrustal Motions 56288 56733 51147 Add to Snowmobile-Related Pollutants The Ethical Audit Add to CAREER: Iontronic Applications 56303 Low-Loss Plasmonic Waveguides 55770 WASPC Traffic Safety 2012 53020 Add to Incubation of Craving 56707 51570 Add to COSEE Pacific Add to MIMSUP '08-'13 51581 Add to REU: Coastal Marine Processes 55768 SBDC 2012 56301 Questioning Questions Total NEW FUNDS 2,000 602,606 80,669 50,000 15,000 72,746 5,000 17,250 10,067 ADD'L FUNDS 2,500 January, February and March 2012 FUNDING AGENCY NSF NSF NSF Univ Southern California M.J. Murdock Charitable Trust University of Washington Canadian Consulate General Government of Quebec Canadian Consulate General P.I. Etnier, M Moyer, C Pillitteri, L Moyer, C Moyer, C Alper, D Alper, D Alper, D Alper, D DEPARTMENT Anthropology Biology Biology Biology Biology Canadian American Studies Canadian American Studies Canadian American Studies Canadian American Studies 10,844 Research Corp HECB Bussell, M Ashby, P Chemistry Child Development Center 211,644 NSF Housen, B Geology Winter Wildlands Alliance Pennsylvania State University Sofield, R Webb, S Huxley Journalism NSF Leger, J Physics/Astronomy Research Corporation WA Assn Sheriffs & Police Chiefs Leger, J Physics/Astronomy Osborn, T Police Department 22,567 NIH Grimm, J Psychology 85,163 210,107 University of Oregon NSF Sulkin, S Sulkin, S Shannon Point Marine Center Shannon Point Marine Center 78,468 NSF Sulkin, S WSU International Writing Centers Assoc Shelton, J Shannon Point Marine Center Small Business Development Ctr Kjestud, R Wilson Library 4,000 2,500 102,144 33,333 799 20,000 750 1,135,208 504,949 DEPT. TOTAL 2,000 748,275 105,063 2,500 10,844 211,644 4,000 2,500 135,477 799 22,567 373,738 20,000 750 1,640,157 WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: President Bruce Shepard by Steve Swan, V.P. for University Relations DATE: June 8, 2012 SUBJECT: University Relations Report PURPOSE: Information Item Purpose of Submittal: A written report is provided on the recent activities of University Relations. Supporting Information: Report Attached 1 WESTERN WASHINGTON UNIVERSITY OFFICE OF THE VICE PRESIDENT FOR UNIVERSITY RELATIONS REPORT FROM THE VICE PRESIDENT TO THE BOARD OF TRUSTEES GOVERNMENT RELATIONS State Relations With the legislative session ending on April 11th, we are back to planning for the next big budget session. With continuing concern around the revenue situation and with over 1/6 of the current legislators retiring, running for other offices or moving on to other positions, all of the House and half of the Senate up for reelection, and a new Governor in our future, there is a lot of uncertainty as to what the next session holds. We are working on finalizing the Decision Packages that you heard about at the last Board meeting. They will be the core of our legislative agenda for the 2013 legislative session and we are working on plans to build support from individuals, industry and advocacy associations to help us gain support for those packages with legislators. We are also planning how to build support for our 2013-15 Capital Budget request, the biggest item being a request for $65M for construction of Carver. We are working with the other 4 year institutions on some of the work mandated in the budget regarding the new Student Achievement Council, the successor of the HECB, new revisions of some of our business practices around purchasing being driven by the Department of Enterprise Services (DES), and performance agreements with OFM. We are working on putting together panels for the Munro Seminar from June 18 – 22 in Seattle and June 25 – 29 in Bellingham. Topics for the six panels are Initiatives and Referenda – Good for Washington State?, Political Influence, Higher Education Legislative Challenges, Budgeting in Challenging Times, Political Reporting and Lobbying . We are having a good response from those we invited to participate. We also had several key legislators join us in Seattle for WWU’s Seattle Business Forum on April 30th. We have met with the leadership of our Alumni Legislative Committee to begin planning for the summer and fall work to support our 2013 legislative agenda. Federal Relations A contingent representing Western had a successful trip to Washington, D.C. April 19-21st. President Bruce Shepard, VP Steve Swan, Associated Students President Anna Ellermeier, AS VP of Governmental Affairs Iris Maute-Gibson and AS Legislative Liaison Joe Meyer met with Senator Patty Murray, Congressman Rick Larsen and with staff members of Senator Maria Cantwell. The student leaders also had Capitol Hill meetings with a staff member of Senator Frank Lautenberg who is the sponsor of the Tyler Clementi Anti-Bullying Act and with a staff member of Congressman Jim McDermott. Western’s agenda for Congressional office visits included the student’s top priority topics of Federal financial aid (most specifically the Pell Grant Program and the Stafford Loan Program), the Dream Act, and the Tyler Clementi Anti-Bullying Act. The office visits also provided an opportunity to provide briefings on Western’s efforts in pursuing funding for programs through Federal departments. 2 The Department meetings were held at the Department of Energy regarding WWU’s new Institute for Energy Studies, and at the Department of Education regarding the Compass 2 Campus Program, the Math and Science Teacher Education Preparation Program, and for the Veteran’s Upward Bound Program. UNIVERSITY RELATIONS Waterfront Development The annual meeting of Western Crossing Development was held on May 1st at the offices of the Port of Bellingham. The agenda included: An update on the planning calendar of the City and Port of Bellingham regarding approval of the waterfront master plan. Leaders from the two entities project final approval by their respective governing bodies in approximately 15 months. Discussion about the Port issuing an RFPS to begin the process that will lead to the issuing of an RFP for selection of a developer for the development of the waterfront. A preview was also provided on an Eco-Conference District institute Conference in Portland on May 8-10. The Institute selects 10 teams each year from cities throughout North America to attend and engage in collaborative learning on the development of sustainable community projects. The Bellingham team was one of the 10 selected and included representatives from the City, Port and Western. The election of officers for Western Crossing for 2012-13. Peggy Zoro was elected as President. OFFICE OF UNIVERSITY COMMUNICATIONS Our skilled professionals worked hard on a wide range of online, print, social media, video and graphic design communications and marketing, which included: University Communications assistant director John Thompson recently worked with peers at the University of Michigan and the National Science Foundation in writing and disseminating a press release regarding the publication in the prestigious scientific journal “Nature” the biodiversity research of WWU biology professor David Hooper. These efforts resulted in a front-page written piece in the Bellingham Herald that was subsequently picked up in more than 100 other media markets worldwide, from Vancouver BC to New Delhi, India, via distribution through the Associated Press. The spring 2012 edition of Window magazine, edited by Mary Gallagher, was just published and has been well received, judging by comments by both alumni and readers on campus. We are also at work transitioning our University Relations Annual Report from a 100-page paper document into an interactive website that will make it much easier for campus community members to read about and access the year’s highlights in excellence at Western. Finally, the recent spring edition of the Soundings family newsletter, also edited by Mary Gallagher, was the best-read spring edition of that publication since Soundings went online in 2009. University Communications staff is building on their recent training and is involved in more video projects, including Matthew Anderson working with our student interns this quarter on a promotional video for the university. Participated in and led communication efforts for Western’s campus-wide test on May 9 of emergency notification systems, collectively known as Western Alert. 3 Assisted in response to heavy media coverage of the death of student Timothy Crossan April 16 at Nash Hall. Also assisted in providing communications about creation of the Timothy Crossan Memorial Fund. Completion of graphic design projects by Chris Baker and Derek Bryson with many campus offices, including Admissions, New Student Services, Residence Life, Commencement, Compass 2 Campus, Canadian-American Studies and other campus offices and colleges. In addition, also worked on homepage design and design templates for College and Department websites. Booking faculty speakers by Pam Smith through Western’s Speakers Bureau. 4 PASSING THE GAVEL MEETING EVALUATION & FUTURE AGENDA TOPICS DATE FOR NEXT REGULAR MEETING August 16, 17, 2012 ADJOURNMENT 2012 Presidential Scholars Donald Cheyette Huxley College of the Environment Donald Cheyette’s interest in the environmental field stems from his love for the outdoors. An avid kayaker and hiker, Cheyette is committed to taking care of the world around him, and at Western, his Bachelor of Science in Environmental Science and Chemistry minor gave him the tools to fulfill that commitment. At the Huxley College of the Environment, he learned effective methods for addressing the challenges we face in achieving a sustainable society. Perhaps the most crucial component of his education was the opportunity to apply his knowledge in a realworld setting through case-study classes, such as working with the Port of Everett to evaluate its cleanup efforts. And as a research intern with Maul Foster and Alongi, a Bellingham environmental consulting firm specializing in remediation through redevelopment of contaminated sites, he surveyed more than 40 tribes in Washington, Oregon and Idaho and submitted a Tribal Brownfield Report to the Environmental Protection Agency. He loves learning and will eventually resume his studies in a graduate program. Meanwhile, he hopes to find a job where he may apply his knowledge and passion. Reuben Walker College of Fine and Performing Arts “Reuben Walker is a liberal arts scholar in the truest sense of the term,” says Associate Professor Lesley Sommer, chair of the Music Department. “He is an outstanding student whose interests span several aspects of Music and Physics.” Walker earned a Bachelor of Music in Vocal Performance and Cum Laude honors for his Bachelor of Science in Physics. Walker was a lead performer or soloist in many productions while maintaining high grades in both of his majors. He had several major roles in productions at Western including the title role in “Don Giovanni” and the Pirate King in “Pirates of Penzance.” He also performed Mahler’s “Kindertotenlieder” with WWU’s Symphony Orchestra as a Concerto Competition finalist. His knowledge of music from several cultures demonstrates a commitment to diversity in art, as well as in life. In his Physics major, Walker ranked in the top 20 percent of his classes, according to Professor Brad Johnson, chair of the Physics Department. Walker has been accepted into the master’s program for Vocal Performance at the Indiana University Jacobs School of Music. Sophie Wenzlau College of Business and Economics “Outstanding,” “well-rounded,” and “truly exceptional” are some of the words faculty members use to describe Sophie Wenzlau, a Magna Cum Laude graduate who earned a Bachelor of Science in Politics, Philosophy and Economics as well as a minor in French. Wenzlau is the Outstanding Graduate in the University Honors program and has taken several challenging courses beyond those required for her major. In addition to her academic work at Western, Wenzlau has distinguished herself through significant study-abroad and international-service experiences. In summer 2011, Wenzlau was a research intern in India studying water security in the Thar Desert for the Jal Bhagirathi Foundation. Some of her research work was published in the Times of India. In fall quarter of 2010, she was an exchange student in Geneva studying international relations and Swiss agricultural security. In summer of 2007, Wenzlau volunteered in Madagascar where she conducted rural field interviews in French and taught English. Wenzlau has also been active in local service organizations; she is the vice president of WWU’s Economics Association and is an intern for the local Sustainable Connections nonprofit group. After graduation, Wenzlau will spend the summer as a research intern in agricultural security at the Worldwatch Institute in Washington D.C. Jessica Grace Jones College of Humanities and Social Sciences – Humanities Division Jessica Grace Jones, who earned a Bachelor of Arts degree in Communication in Fall 2011, is an “incredibly bright, articulate and motivated student,” according to faculty members in the Department of Communication. Jones has a 3.92 GPA. Steven Woods, an Associate Professor of Communication, directed Jones’ senior thesis and says she “typifies the excellence of students by demonstrating strong intellectual skills paired with a positive attitude and a willingness to work hard to achieve her goals.” Jones’ thesis paper expanded on her interest in social media by examining how Facebook users express their gender identity through profile photographs and how the portrayal of women on the social media site compares with gender portrayals in other media. Jones was the Election Board Chair for the Associated Students of Western, where she supervised fair and diverse elections. She was also active in student government at Whatcom Community College, where she earned a Vision Award for her work overseeing the college’s student fee budget development process. Jones also was an intern managing communication and marketing for an East Coast company specializing in Search Engine Optimization. Now she’s looking for a position in which she can continue to use her passion for higher education to help students achieve their goals. Saraswati Noel Woodring College of Education For Saraswati Noel, thinking and social activism go hand in hand. She graduates Cum Laude this summer with a Bachelor of Arts degree with a major in Secondary Math Education and minor in Sociology. Noel’s work is embedded in her belief that everyone deserves access to a high-quality education where they can see themselves as active participants in society. Through teaching practicums at local middle and high schools, she has devoted hundreds of hours working with students. And as a private tutor in Western’s Veterans Affairs Office, she worked one-on-one with veterans and their dependents. Finally, as a mathematics fellow in Western’s Math Center, she tutored college students in upper-level courses. Her passion for social justice and equity carried through into her research, too. As an intern with the Department of Secondary Education, she analyzed data on Woodring alumni to assess the college’s efforts to create more inclusive and diverse curricula. Michael Pegis College of Sciences and Technology Michael Pegis, who earned a Bachelor of Science degree in Chemistry and is the department’s Outstanding Graduate, is being honored for his scholarly and volunteer work. His research explores the conversion of agricultural waste into usable chemicals and fuels. And as the lead Chemistry tutor at the WWU Tutoring Center, he has worked with about 7,000 students in Math, Chemistry, Physics and Philosophy for the past three years. Recently, he served as a volunteer private tutor for low-income students. He says this is an integral method to not only keep students with financial difficulties in college but help give them the tools necessary to achieve their goals and become successful. He also conducted research on learning styles and incorporated his findings into the center’s tutor training programs. And he volunteered with the Washington Trails Organization’s cleanup efforts and served food to homeless people through the St. Joseph Parish in Seattle. After graduation, Pegis will enroll in the University of Washington’s graduate program, where he will pursue a doctorate in Physical Inorganic Chemistry Heather Wrenn College of Humanities and Social Sciences – Social and Behavioral Sciences Division Heather Wrenn today graduates Cum Laude from Western Washington University with a Bachelor of Arts degree. She double-majored in Psychology and Business Administration with a concentration in Human Resources Management. Her experience during her five years at Western has been shaped largely by her advocacy for equity. She held leadership positions in several campus organizations, most notably serving as Western chapter president of the Northwest Human Resource Management Association (NHRMA) and as Associated Students personnel coordinator. In her position with NHRMA, she collaborated with groups such as the Professional Women’s Association and the U.S. Marine Corps to host speakers and put on workshops to teach women skills for their professional lives. In her position with the AS Personnel Office, she helped in efforts to increase the representation of minority employees in the AS by expanding outreach efforts and improving hiring practices. “I want women to be just as prepared as their male counterparts to enter the professional workforce,” she says. “And I want ethnic minorities to have equal opportunities on campus.” As she pursues a career in human resources, she plans to continue studying the way diversity works in the workforce and finding ways to improve interactions. . WESTERN WASHINGTON UNIVERSITY BOARD OF TRUSTEES RESOLUTION NO. 2012-05 RECOGNIZING THE SERVICE OF BRADLEY F. SMITH WHEREAS, in 1994, BRADLEY SMITH was appointed by President Karen W. Morse as Dean of Huxley College of the Environment at Western Washington University; and WHEREAS, BRADLEY SMITH brought to his appointment as Dean of Huxley College of the Environment, sixteen years of experience as a faculty member at Delta College in Michigan; as well as experience in Washington D.C. as Acting President of the National Environmental Education and Training Foundation; Acting Associate Administrator of the U.S. Environmental Protection Agency, Office of Communication, Education and Public Affairs (during the Presidential Transition), and Director of the Office of Environmental Education, U.S. Environmental Protection Agency, as well as experience as a member of the U.S. Senior Executive Service; and WHEREAS, BRADLEY SMITH received his undergraduate and graduate degrees from Western Michigan University; and his doctorate from the University of Michigan; and WHEREAS, under BRADLEY SMITH’S exceptional leadership, Huxley College of the Environment has successfully addressed a number of significant goals and is now recognized locally, nationally and internationally as a leader in the development and implementation of educational, research and service programs that build on sustainability and resilience platforms and motivate environmental problem solving. WHEREAS, under BRADLEY SMITH’S guidance, Huxley College of the Environment has adopted a mission that: Addresses today's environmental issues and prepares tomorrow's interdisciplinary problem solvers. We accomplish this mission by integrating outstanding educational programs, faculty-student collaboration, applied research, and professional and community service. WHEREAS, BRADLEY SMITH is considered to be a highly effective leader and has served with commitment and distinction as Dean of Huxley College of the Environment and as a trusted member of the Academic Affairs leadership team; and WHEREAS, BRADLEY SMITH plans to maintain his commitment to the local, national and international environmental community with his continued service to various environmentally-focused boards, councils and commissions; and WHEREAS, BRADLEY SMITH will complete his appointment as Dean of Huxley College of the Environment on July 31, 2012; NOW, THEREFORE BE IT RESOLVED that the Board of Trustees of Western Washington University offers thanks and commendation to BRADLEY SMITH for his many achievements and for his service as Dean of Huxley College of the Environment. DATED and signed this 8th day of June, 2012. __________________________ Dennis Madsen, Chair ATTEST: _______________________ Betti Fujikado, Secretary