report for finance committee - ubc senate...• work with ubc‐v campus partners on bring ponderosa...
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Student Housing & Hospitality ServicesOverview Report for Senate Finance Committee (March 14, 2012)
Student Housing and Conference Services
Vancouver & Okanagan Campus
Food Services Vancouver Campus
Child C S i V C Child Care Services Vancouver Campus
Integral to meeting the objectives of Place and P i th UBC PlPromise: the UBC Plan.
Student learning; Community Engagement; Aboriginal Engagement; International Engagement; Outstanding Work Environment; SustainabilityEnvironment; Sustainability.
Maintaining and managing university residences at both campuses. Providing student development and student service programs for
di id i l d d l i ioutstanding residential and student learning experiences.
Providing quality food and friendly service in warm, welcoming and innovative environments that enhance the campus experience and sense of community for students, faculty, staff and guests to UBC.
Providing quality conference services at both campuses that support and enhance UBC’s community engagement.
Providing quality child care services for infants and school age children through the largest university child care program in Northchildren through the largest university child care program in North America.
Fostering environmental, economic and social sustainability in powerful ways.
Annual revenue 2011‐12:
$80.0M – Student Housing & Conferences
$28.1M – Food Services – rez dining, cash ops, catering, Sage
$5.9M – Child Care
$114.0M total (growing to $116.4M 2012‐13)
Creating an outstanding work environment for 1,000 employees – (M&P, 116, 2950, g g , p y ( , , ,
BCGEU), and 620 Students – annual salary budget of $35M (30.7%)
Stewardship and Sustainability
$4.0M in annual, non‐capital R&M
Asset Mgmt ‐ $490M on balance sheets
Current Debt load ‐ $308M
100K roomnights per summer – conferences (UBCO + UBCV)
0ver 10,300 students live in residence (1676 UBCO + 8717 UBCV), with 2580 (10/11)
and 3211 (11/12) on meal plan at UBCV.
Over 5 million POS / FS transactions per year (UBCV only)
Student Housing – Current Status
Largest Student Housing operation in Canada; bed spaces and % of FT student population.
8717 beds at UBC‐V; 1676 beds at UBC‐O (from 340 at time of transition)
27% of residence population is 1st year; 33% international
27% of full time student population current living in residence
Diverse mix of housing options – traditional residences withDiverse mix of housing options traditional residences with meal plan, suite‐style, apartments, townhouses
Diverse demographics – 1st year, upper year, graduate student, student family
5 year growth plan to 35% of FT student population5 year growth plan to 35% of FT student population
Long term campus plan allows for 50%
Expanded, direct from high school guarantee effective Sept 2011
Strong asset management
Positive cash flow – system‐wide
Provide on campus accommodation to approx. 30,000 delegates/visitors /hostellers annually
Attract approx 90 events each summer: 20 academic conferences + 70 others (including sport, language, tour,
$7 000 000
$8,000,000
$9,000,000
C&A Revenue 10 Year Trend
( g p , g g , ,short course programs, etc.)
Generate summer employment for approx 150 students
Annual revenue of $6‐8M (excl food/catering); 90% + is room revenue $4 000 000
$5,000,000
$6,000,000
$7,000,000
room revenue
Generate positive economic spin off for UBC.
West Coast Suites – providing short term accommodation on campus on year round basis.
$4,000,000
Opportunities to grow:
Faculty awareness of services available at UBC
Urge faculties to host conferences at UBC
Redevelopment of U/C Lower Floor high quality conference / banquet space
Expand Summer Camp programs, Academic Summer Institutes
Student Housing & Conference Services (UBCV & UBCO)
11/12 Successes and Challenges
• Honoured 1st Year Student guarantee at UBCO and UBCV to allow any student
12/13 Priorities
• Provide programmatic, strategic assignment and financial contributions in support Place coming directly from high school to have a guaranteed bed space.
• Worked with Int’l Student Initiative to provide further access to housing for these students, including a multi‐year, year round housing commitment.
• Working with various campus stakeholders, received BOG Board 3 approval for UBCV Ponderosa Commons project Phase 1 increasing bed spaces by 600 effective Sept 2013.
p g , g g ppand Promise goals. Further working towards increased faculty connections within the residential setting, including exploring models of living/learning that are relevant to students.
• Work to develop stronger student life through further integration of collegiums and commuter students with Residences.
• Work with UBC‐V campus partners on bring Ponderosa Commons Phase 2 development
• For September 2011 opened UBC‐O Phase 4 adding 212 bed spaces and Totem Infill adding 566 bed spaces, both on time and under budget. Renovated Walter Gage Residence Commonsblock, improving the environment for both students and summer conference clientele.
• Worked with First Nations representatives and other UBC stakeholders to develop appropriate and respectful names of the 2 new buildings.
p p g pproject through design and BOG approval process, including the possibility of a faster construction timetable.
• Initiate program development and massing of Brock Commons in conjunction with campus stakeholders.
• Initiate three year renovation and upgrade plan at Totem Park including bathrooms, student lounges, mechanical systems, elevators and building envelope.
Risks and Opportunities
• Better aligned custodial workforce with underlying occupancy levels in the summertime and during the academic year.
• Working with various campus stakeholders, began strategizing for increased Summer Use of Campus utilization.
g , y , g p
• Complete a long term plan to deal with and support the Land Use Plan Amendments as they pertain to Acadia Park while addressing short term needs at the Acadia Court complexes, including removing 86 end of life townhouse units.
• Continued academic partnerships at St. John’s College and Green College.
Financial Highlights: 11/12 Forecast and 12/13 Plan Risks and Opportunities
• Debt capacity aligning with Student Housing growth plans.
• Courts housing at Acadia Park end of life demolition, and alignment with timing of Acadia Park Neighbourhood plan.
Financial Highlights: 11/12 Forecast and 12/13 Plan
• Continuing strong financial performance including revenue stream to support UBC Place and Promise initiatives.
• Work to further integrate SHHS units for increased performance, cost‐saving, and revenue opportunities including merger of 2 administrative offices.
• Better scheduling of Residential Front Desk workforce to provide improved • Conversion of 268 Faculty/Staff housing units into Student Family housing.
• Incorporate more Academic initiatives within residential housing.
• Addressing summertime Demand and Supply opportunities for both UBC‐V and UBC‐O.
• Capitalize on Vancouver and Kelowna’s reputations as summertime conferences destination.
• Better scheduling of Residential Front Desk workforce to provide improved customer service and overall cost reductions.
• Prioritize and limit workforce expansion in recognition of university financial challenges.
• Average rental increase for 2011‐13 set at 2.5%, with Residential Colleges at 5%.
Financial Highlights 2010‐11 2011‐12 2011‐12 2012‐13 Cash Flow Statement 2010‐11 2011‐12 2011‐12 2012‐13
Student Housing & Conference Services (UBCV & UBCO)
Financial Highlights ($000) Actual Budget Forecast Plan
Revenues (1) 71,170 77,603 79,970 81,075
Expenses: 51,428 55,583 55,816 56,379
Cash Flow Statement As at March 31 ($000) Actual Budget Forecast Plan
Net cash from Operations 16,090 20,158 24,251 23,724
Net cash from Investing/ Capital
Salaries & Benefits (2) 16,594 17,009 17,169 17,378
Interest 16,806 18,788 18,074 18,412
Utilities 7,593 8,626 8,876 9,245
Other Expenses (3) 10,435 11,160 11,697 11,344
Net cash from Investing/ Capital Renewal (5)
(1,184) (13,300) (8,466) (10,626)
Net cash from New Capital (31,777) (27,200) (21,286) (45,878)
Net cash from Financing (4) (1,098) 57,079 38,025 0
Surplus/(Deficit) 19,742 22,020 24,154 24,696
Dividend 4,249 4,401 4,450 4,539
Capital Spending 32,961 40,500 29,752 56,504
Net Cash Inflow/(Outflow) (5) (17,969) 36,737 32,524 (32,780)
Beginning Cash Position 39,763 9,066 17,545 45,619
Debt Balance 251,206 310,502 306,957 298,081
Operating equity (4) 32,230 35,585 34,211 32,663
Dividend 4,249 4,119 4,450 4,539
Ending Cash Position (6) 17,545 41,684 45,619 7,847
Note 1: Revenue increase of $2.432 million for the 2012‐13 Budget Plan generated from increases of 2.5%, with 5% for Residential Colleges, offset by Acadia Park Courts revenue reduction of
$0 991 illi$0.991 million.
Note 2: Salaries increase of less than 2% is a result of changes to Front Desk staff structure and Custodial work scheduling.
Note 3: Other expenses are comprised of Operational Supplies, Repair & Maintenance , Bank Charges, GMSL , Professional Fees, Travel and PD/Training.
Note 4: Operating Equity is shown net of year end construction financing.
Note 5: Repayment of $10.325 million Sinking Fund Debenture occurs in 2011/12.
Note 6: Fluctuations in the cash position result from financing of on‐going Construction projects at UBC‐V and UBC‐O.
Cash Operations 45%
Residence Dining 33%
Wescadia 11%
University Centre 6%
Other 6%
Total Revenue $27.4 Million
11/12 Successes and Challenges 12/13 Priorities
Food Services
/ g / Became Canada’s first certified Fair Trade University. Contributed to University’s achievement of a Gold rating in the STARS AASHE report.
Opened Loop Café (CIRS) on time and on budget in September 2011. Converted White Spot operation to same brand family, quick service Triple O’s.
Open three small café operations in new buildings for September 2012: Allard Hall (Law), Earth Systems and Pharmacy buildings
Engage University community and stakeholders in a future building use plan for University Center Lower Floor, encompassing a renovation of the existing Sage Restaurant.
Completed renovations to Gage Mini Mart as part of Gage Commons Block renovation.
Upgrades to Totem Park service stations to accommodate 566 additional students resulting from Totem Park Infill project expansion.
Added AMS Blue Chip outlet to the Campus Partnership Program and the University Village Booster Juice outlet in 2011.
Continue with Phase 4 of the Monkey Media project to achieve functionality for recipe costing and nutritional analysis.
Complete concept and design for new Ponderosa Commons outlets. Develop secondary survey method to explore EBI results for Food Services: determine areas for improvement and implement changes.
Risks and OpportunitiesFinancial Highlights: 11/12 Forecast and 12/13 Plan
Forecast to achieve revenue targets in spite of slow economy and increasing campus competition.B d t 2012/13 l th i il t ib t d b th i f 3
Managing unit saturation and internal cannibalization on campus. Uncertainty of new SUB building food operations and the repurposing of old SUB on existing Pacific Spirit Place operations.
Uncertainty of impact of new SUB and Alumni Centre on Wescadia Catering Budget 2012/13 sales growth primarily contributed by the opening of 3 new operations, continued growth at Point Grill, and market sensitive price increases.
Maintaining Gross Margin at 67.0 % and improving Labour Cost to 44.4% of Budgeted Sales. Absorb expected 2% GWI through other operational efficiencies.
Budgeting to achieve 2012 13 Net Income of 2 4% of Sales an increase from
business with expanded banquet facilities in both new buildings. Ability to provide cost efficient operations at CIRS cafe while fully meeting the high sustainability standards.
Ability to provide cost‐effective labour at table service locations (Sage and Point Grill).
Managing increases in commodity costs and market pricing ceilings. Budgeting to achieve 2012‐13 Net Income of 2.4% of Sales, an increase from the Forecast 2011‐12 figure of 1.5%.
Grow dividend by 2% annually in support of Place and Promise initiatives. Deferred capital spending in 2011‐12 as key projects were delayed until 2012‐13.
Ongoing seasonality issues impacting financial performance and service model. Summer Use of Campus initiatives important to smooth out seasonality issues.
Development of shared funding model for development of UC Lower Floor to financial viability of opportunity.
Managing the rollback and timing of repeal of HST and return to separate taxes. Impact on student Savings Plus plan and internal tax savings at Wescadia Catering.
Food Services Budget 2012‐13
Financial Highlights ($000)
2010‐11 Actual
2011‐12 Budget
2011‐12Forecast
2012‐13 Plan
Revenues (1) 27,415 29,195 28,090 28,991
Cash Flow Statement As at March 31 ($000)
2010‐11 Actual
2011‐12 Budget
2011‐12 Forecast
2012‐13 Plan
, , , ,
Cost of Goods Sold 8,824 9,485 9,306 9,561
Gross Profit 18,591 19,710 18,784 19,430
Expenses: 17,180 17,452 16,763 16,856
Net cash from Operations 1,425 2,518 2,086 2,542
Net cash from Investing/ Capital Renewal (3 yr avg.)
(1,198) (2,114) (854) (1,101)
Net cash from New Capital 0 (450) (109) (2,050)Salaries & Benefits 12,993 13,012 12,906 12,858
Other Expenses 4,187 4,440 3,857 3,998
Surplus (cash basis) 1,411 2,258 2,021 2,574
Dividend 700 714 731 745
p ( ) ( ) ( , )
Net cash from Financing (43) 12 (247) 1,392
Net Cash Inflow/(Outflow) 184 (34) 876 783
Dividend 700 714 731 745
Capital Spending(2) 1,198 2,564 963 3,151
Debt Balance(3)1,334 1,395 991 2,383
Operating equity (46) (637) 34 104
Beginning Cash Position 1,750 1,564 1,234 1,379
Dividend 700 714 731 745
Ending Cash Position 1 234 816 1 379 1 417Operating equity (46) (637) 34 104 Ending Cash Position 1,234 816 1,379 1,417
Note (1) – Budget 2011‐12 included St John’s College meal plan which did not proceed. Note (2) ‐ Construction of new Law café and Sage Bistro Renovation are deferred to 2012‐13. In addition, two new units to be constructed for 2012‐13: ESB and Pharmacy.Note (3) – PSP and Trekkers Debentures matured in 2011‐12. New loans planned for 2012‐13 for Sage Bistro and University Centre Lower Floor Renos
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Renos.
• Largest campus owned and operated child care service in N. A.
• Added 182 University operated spaces since 2009
• Currently 527 licensed child care spaces ‐ 23 programs ‐children from birth to 12 years of age.
• First priority ‐ student, staff and faculty ‐ small number of spaces available to non‐affiliated UNA families.spaces available to non affiliated UNA families.
• Waitlists range from 0 to 20 months (reduced from 8 – 28 months pre‐2010) depending on the age of the child and the type of care
h f f• 3 to 12 months for infants; • 14 to 18 months for toddlers• 12 – 20 months for 3 – 5 year olds• 0 – 6 months for Kids Club
• Growth: Pond Hub: 24 spaces in 2015; SUB: 16 P/T space in• Growth: Pond Hub: 24 spaces in 2015; SUB: 16 P/T space in 2014
• 588 University operated total by 2015.
11/12 Successes and Challenges 12/13 P i iti 11/12 Successes and Challenges Renovations completed for the September 2011 opening of Caribou
child care in the University Services Building, with licensing for 12 toddler and 25 3‐5 year olds.
Rapid expansion impacted the waiting list in various ways. Toddler waitlist was shortened by 4 6 months and the wait list for three and
12/13 Priorities
Champion the UBCV Child Care Coordination Committee expansion goals.
Participate in design of next phase of on‐campus expansion , including Ponderosa Commons, new SUB, repurposed old SUB, and Brock Commons.
waitlist was shortened by 4‐6 months, and the wait list for three and four year olds from qualified UBC families was briefly at zero in September 2011. Unfilled child care spaces resulted in September 2011 for the first time in 15 years.
Phase one renovations to Developmental Disabilities Association ‘s Berwick Preschool added 8 spaces in 2011, with further renovations in
Work towards addressing child care staff wage inequities at UBC.
Advocate to reinstate the successful staff recruitment and retention program of 2009/10 in order to reduce turnover and related staff training and orientation costs.
Participate in and implement a job evaluation process for child care staff.
Risks and Opportunities
p ,2012 & 2013 to provide a total of 24 new spaces.
Financial highlights: 11/12Forecast and 12/13 l Significant wage disparity with off campus competitors is negatively
impacting recruitment and retention of qualified child care staff.
Manage impacts as a result of succession planning for aging workforce, including potential redesigns within the work space.
Both staff shortages and lack of waitlist for 3‐5 year age group impacting ability to fully enroll the new centre(s)
Plan Consider budget revenue adjustment for potential under enrollment
as a result of staff shortages and/or reduced wait lists for some age categories.
Continue to set aside significant funds to enable redesign and d f i t l d impacting ability to fully enroll the new centre(s).
Monitor the demographics of the child care waiting list to inform future planning decisions.
School age child care programs that cross subsidize the less profitable younger age programs may be negatively impacted by the proposed new University Elementary School on Acadia Road in 2014.
upgrade for aging center play yards.
Plan for potential impacts of collective bargaining process, including the potential for non‐ratification and/or job action.
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Child Care Services Budget 2012‐13
Financial Highlights ($000)
2010‐11 Actual
2011‐12 Budget
2011‐12 Forecast
2012‐13 Plan
Cash Flow Statement As at March 31 ($000)
2010‐11 Actual
2011‐12 Budget
2011‐12 Forecast
2012‐13 Plan
Revenues (1)(2) 4,979 5,867 5,938 6,306
Expenses: 4,787 5,797 5,829 6,045
Salaries & Benefits (3) 4 401 5 343 5 258 5 546
Net cash from Operations 55 66 93 246
Net cash from Investing/ Capital Renewal
(63) (15) (11) (250)
h f i lSalaries & Benefits (3) 4,401 5,343 5,258 5,546
Other Expenses 386 454 571 499
Surplus/(Deficit) 192 70 109 261
Net cash from New Capital 0 0 0 0
Net cash from Financing 0 0 0 0
Net Cash Inflow/(Outflow) (8) 51 82 (4)
Capital Spending 63 300 11 250
Debt Balance 0 0 0 0
Operating equity 1 263 1 233 1 492 1 634
Beginning Cash Position 1,657 1,606 1,649 1,731
Dividend 0 0 0 0
Ending Cash Position 1 649 1 657 1 731 1 727Operating equity 1,263 1,233 1,492 1,634 Ending Cash Position 1,649 1,657 1,731 1,727
Note 1: Revenue increase includes $5 to $100/month fee increase depending on the type of client served.Note 2: Budget Plan 2011/12 included opening of a new center in the USB and conversion of three existing centers into full time centers.Note 3: Salary costs reflect a 2% salary increase. A resumption of the recruitment and retention plan is not included.
[email protected]@ubc.ca
Current SHHS Operated Hous ing Inventory
Number of bed spaces / type of housingp / yp g
Vancouver
27% of residence population first year; 33% international
Totem Park 1,751 bed spaces – traditional room & board Totem Park 1,751 bed spaces traditional room & board
Place Vanier 1,462 bed spaces – traditional room & board
Ritsumeikan‐UBC House 205 bed spaces – apartment‐style
Marine Drive – 1,625 bed spaces – apartment‐style
Thunderbird – 632 bed spaces – apartment‐style
Walter Gage – 1,350 bed spaces – apartment‐style
Fraser Hall – 136 bed spaces – apartment‐style
F i i C t 771 b d h d t h Fairview Crescent – 771 beds – shared townhouses
Acadia Park – (student family housing) 517 units in apartments/townhouses
Green College – 100 bed spaces – traditional room & partial‐board
St John’s College – 168 bed spaces – traditional room & partial‐boardg p p
Okanagan
1,058 bed spaces – traditional room & board
618 bed spaces – apartment‐style
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