General Meeting Information
Date: June 9,
Time Topic Purpose Discussion Leader 2pm Approval of Notes from May 5, 2020 A Grey/Gore 2:05pm I/D Gannon/Grey 2:25pm I/D Grey/Varela 2:35pm
Child Development Center Financials
I/D Harada 2:55pm
A = Action
D = Discussion
I = Information
Yi-Baker noted that the DASB student assigned to the APBT was no longer serving on the DASB and she would notify us of the replacement representative.
The notes from May 5, 2020 were approved.
The Bookstore, Dining Services and the Child Development Center are all self-funded entities. They have been important departments to students, faculty and staff for many years. Many colleges have closed such departments and brought in outside companies to provide these services, but De Anza has always valued the superior service and quality of in-house departments. The APBT, VP and AVP of Administration have all been committed to keeping as many services in-house in support of our students and staff in these departments through many years of budget crisis and layoffs. The impact of Covid19 cannot be overstated. It has severely impacted all three of these departments. Previous to Covid19 these areas were already impacted by the decline in enrollment, decreased revenues and increasing expenses.
Gannon opened by giving an overview of the bookstore operations. The bookstore has been closed to walk-in trade since March 15. During the last weeks of March, the bookstore staff spent an enormous amount of time and energy totally reorganizing its operations to make it 100% online; including having to reorganize the physical store to allow for increased space needed for online orders. Other challenges to the bookstore operations have been retraining staff due to high staff turnover; loss of revenue due to decline in enrollment, increased student salaries, loss of revenue from the Apple account (products used to be purchased through the bookstore and are now purchased directly from the district); and increased competition from online vendors. There are 7 fulltime equivalent positions with $592k in total salaries. The bookstore staff have been working hard to increase revenue and have been successful in contacting students with Promise money and have sold approx. $60k of computers. Book rentals are challenging as they cannot be returned. With the lifting of the shelter in place directive, the bookstore is planning to have a curb-side pickup/drop off service. Staff have been releasing holds on students’ registration due to unreturned books. Inventory is being performed this week.
The updated projections show a reduction of $766K in revenue for FY19/20 which reflects a loss of $204K for the year. This year the department was already projecting a loss of $96K. The projected revenue for FY20/21 is only $2.5M which is a reduction of $1.9M from the adopted budget. The projected expenses for the FY20/21 year are $3M which is an operating loss of $517K. There are reserves in the account which will be used to cover the deficit for FY19/20. Using the tentative budget figures for 20/21 the department would also use the reserves to cover the operating loss for 20/21. This department is not funded by general fund money. Pam thanked Gannon and his staff for all their hard work and service to students and faculty.
Gannon opened by giving an overview of dining services. This department has been closed since March 15 and is not expected to open before January 2021. There is no revenue coming in for this department. Expenses are ongoing. As a self-sustaining entity revenue is critical to cover the expenses. The department is just completing a 12- year (self-funded) renovation project. At the beginning of March 2020, the projections were that the department would break even. Dining services have 8 stations: Unamas, pizza, grill, pasta, bibimbap, salad, sandwiches & pho. The department needs approx. 2000 customers to sustain this level of service. When the cafeteria reopens, it will have to reduce the amount of stations and service level to address lower demand. Reduced stations and demand would likely mean reduced staffing levels and no student workers. There is a reduction of revenue for FY19/20 of $833K resulting in a loss of $340K for the year. This year the department was projected to make a modest profit of $22K. The projected revenue for FY20/21 is only $465k which is a deficit of $1.6M from the adopted budget. The projected expenses for the FY20/21 year are $880K which is an operating loss of $416K. There are reserves in the account which will be used to cover the deficit for FY19/20. Using the tentative budget figures which include reduced supply and demand for 20/21 the department would also need the reserves to cover the operating loss for 20/21. This will only leave $174k in reserves which will not even cover staffing costs. This department is not funded by general fund money.
Students are interested in finding other sources of income for the DASB due to a decrease in Flea market income and suggested bringing in outside food vending machines. It was noted that there is currently an outside vendor, Le Café, and a convenience store in the bookstore and that adding additional outside vendors would not be supportive to dining services staff who are already facing uncertainty and does not provide nutritional, quality food.
Grey noted that there are many competing priorities across the campus. She will take this information to senior staff and then bring back the agenda item to a special APBT meeting next week to decide on next steps for dining services and the bookstore.
Child Development Center (CDC)
Harada opened by giving an overview of the CDC. She announced that the best asset of the CDC is the staff. The center has been closed since March 15 and is hoping to open in summer to a reduced number of children once the Covid19 regulations have been met. The CDC provides an important service by allowing parents and student parents to continue working/studying while their children are being care for by the staff at the CDC. The CDC is also a lab space for De Anza child development education (CDE) students and, as such, provides a high level of care and an enriched learning environment for the children. The CDE program, in the Social Sciences/Humanities Division, is very successful with 95% of students get jobs or transferring to 4-year colleges.
The staff are enthusiastic to come back to work and are busy preparing to reopen the center in summer. De Anza students will likely not send their children to the CDC as all classes are online. Usually there are 24 children in a class. Now the CDC can only care for 10 children per class. This will result in a significant loss of revenue and will likely lead to an increase in tuition. Harada met with parents to discuss options. Scenarios were for raising tuition to somewhere between $2200 to $2600. However, this financial projection is based on 12 months of care and with the center closed for the past few months it will impact the revenue. There is also a shorter program operation being considered. The CDC will survey the parents to gather more feedback. Foundation money is available for the children’s lunch and snack. Expense worksheet only includes salaries. Harada showed a presentation highlighting the role of the CDC and the updated Covid19 childcare preparations. There are individual items for each child. The CDC as already working on an inclusionary model to assist in cultivating an equity focus with the children’s education.
The team agreed to draft a statement to present to College Council and senior staff in support of the CDC reopening as soon as possible while following the Covid19 regulations.
Participatory Governance Discussion
Grey shared that there have been discussions surrounding the current shared governance group system and its successes and failures. This model has been in place for approx. 25 years and it is time to thoughtfully reevaluate the model and consider what we can do to change the way we do business on a day to day basis. Grey asked the team to start thinking about this topic so they can participate in further discussions.
Yi-Baker spoke to the importance of looking inside oneself and to the internal college shared governance process and the college leadership to make some systemic changes.
Present: Burdick, Chand, Fritz, Gerard, Gore, Grey, Harada, Varela, Yi-Baker. Notes Gibson.
Documents and Links
- CCCCO State Budget Update June 3, 2020
- Dining Services Financials June 2020
- Bookstore Financials June 2020