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CAPITAL
PLANNING, DESIGN AND CONSTRUCTION
J. Patrick Drohan, Assistant Vice
Chancellor
CONSTRUCTION
MANAGEMENT
The Governor has signed AB 1719, the Trustees'
sponsored legislation, and the bill was chaptered
on August 1, 2001. In part, this bill amended
Public Contract Code Sections 10705, 10710 and
10760 and it becomes effective January 1, 2002.
Public Contract Code Section 10705 currently
allows the CSU to bid contracts less formally by
exempting a project that is $250,000 or less in
value from CSU Contract Law provisions. Beginning
January 1, 2002, this section of the Public
Contract Code links to Public Contract Code Section
10108, wherein the value of a minor capital outlay
project is $400,000 or below. Therefore, CSU may
exempt a project that is $400,000 or less in value
from CSU Contract Law provisions. However, the
CSU
Please contact Barbara Nicholson at 562-951-4117
for a copy of these Supplementary General
Conditions.
must still comply with the provisions external
to the CSU Contract Law, such as: subcontractor
listing (Public Contract Code Section 4100 et
seq.), DVBE (Public Contract Code Section 10115),
payment bond, payment of prevailing wage rates, use
of Contracts Register, small business, and license
requirements.
Public Contract Code Section 10710 allows for
awarding annual contracts for repair or other
repetitive work (job order contracts) not to exceed
three million dollars. Currently, individual job
orders may not exceed $250,000. Beginning January
1, 2002, this section of the Public Contract Code
links to Public Contract Code Section 10108,
wherein the value of a minor capital outlay project
is $400,000 or below. Therefore, individual job
orders may not exceed $400,000 after January 1,
2002.
Public Contract Code Section 10760 currently
states that the trustees may, and on projects that
exceed $300,000, the trustees shall require
prequalification. Beginning January 1, 2002, the
contract value for projects requiring
prequalification increases to $400,000. Note: this
section does not link to Section 10108, so if the
value of a minor capital project in Public Contract
Code Section 10108 is increased in the future, the
prequalification level will remain $400,000 until
Section 10760 is specifically changed.
James R. Corsar, Chief, Construction
Management
FACILITIES
PLANNING
With the last of Prop 1A funds from the 1998
funding of capital outlay projects in 2001, the
capital programs of the three segments of higher
education are pretty much at a standstill, awaiting
the passage of a new General Obligation Bond.
Faced with the prospect of adding the equivalent
of a campus the size of Hayward every year for the
next ten years, the G.O. Bond is especially
critical for the CSU. The CSU plans to address
forecasted capacity limitations in part by:
- Moving forward aggressively to implement
year-round operations at 14 campuses this year
and the remaining campuses in 2002,
- Expanding evening and weekend course
offerings, and
- Improving distance-learning
opportunities.
However, the renovation or replacement of
facilities built thirty or more years ago remains a
pressing need, along with new facilities and
infrastructure to accommodate growth.
At present, a $4.8 billion G.O. Bond for K-12/
Higher Education over a four-year period is being
sought. The CSU estimates that its needs over the
next four years require a funding level of
approximately $3.1 billion. The CSU has also agreed
with the other two segments to set aside $800
million to address additional needs of the
community colleges, tri-segmental joint facilities
and new campuses/centers.
Elvyra F. San Juan, Chief, Facilities
Planning
PLANT,
ENERGY AND UTILITIES
With the last of Prop 1A funds from the 1998
funding of capital outlay projects in 2001, the
capital programs of the three segments of higher
education are pretty much at a standstill, awaiting
the passage of a new General Obligation Bond.
Faced with the prospect of adding the equivalent
of a campus the size of Hayward every year for the
next ten years, the G.O. Bond is especially
critical for the CSU. The CSU plans to address
forecasted capacity limitations in part by:
- Moving forward aggressively to implement
year-round operations at 14 campuses this year
and the remaining campuses in 2002,
- Expanding evening and weekend course
offerings, and
- Improving distance-learning
opportunities.
However, the renovation or replacement of
facilities built thirty or more years ago remains a
pressing need, along with new facilities and
infrastructure to accommodate growth.
At present, a $4.8 billion G.O. Bond for K-12/
Higher Education over a four-year period is being
sought. The CSU estimates that its needs over the
next four years require a funding level of
approximately $3.1 billion. The CSU has also agreed
with the other two segments to set aside $800
million to address additional needs of the
community colleges, tri-segmental joint facilities
and new campuses/centers.
Elvyra F. San Juan, Chief, Facilities
Planning
PLANT,
ENERGY AND UTILITIES
The CSU campuses have done very well in
responding to the California Energy Crisis. Plans
for responding to Stage One, Two, and Three Energy
Emergencies have been developed by every campus as
well as contingency measures to be used in the case
of a rolling blackout. All of these plans, as well
as other conservation efforts, have been documented
in the CSU Peak Load Reduction Plan that has been
forwarded for approval by the California Energy
Commission.
Rolling blackouts were originally predicted to
affect the campuses as much as 55 days over the
course of the summer (April to October). While we
still face more hot weather in the next few weeks,
it appears the State of California has secured
commitments for enough reserve power to avoid any
further rolling blackouts. Overall, only a few
campuses (Fresno, Humboldt, San Francisco, and
Sonoma) have been subjected to rolling blackouts
for the four-campus total of less than 5 hours!
The future of the energy market is still very
unpredictable and volatile. Natural gas prices have
dropped significantly, but even with levels that
are much lower than just six months ago, forecasts
on the price of future natural gas are still double
what the campuses paid in the past several years.
The one positive note is the natural gas market
appears to be stabilizing in price within the next
6-12 months.
Conversely, the electric market does not appear
to be stabilizing in the near future. The
Legislature and the California Public Utility
Commission are still working feverously to rebuild
a broken deregulated market and the proposed fixes
and changes are many and frequent. For CSU, we have
reached a settlement with Enron Energy Services,
our Direct Access power provider since 1998, and
are in the process of working out terms and
conditions far an extension to our existing
contract that will provide us Direct Access
electricity through the year 2004. It is believed
that the electric market will have stabilized, and
hopefully recovered, by 2004 from one of the worst
energy crisis the State of California has ever
faced.
Mark Gutheinz, Chief, Plant, Energy and
Utilities
CPDC Due
Dates for CPB&G Agenda Items (January 29-30,
2002 Trustees' Meeting)
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Master Plan Revisions:
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November 27, 2001
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All Other Items:
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December 11, 2001
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A complete listing of 2001/02 due dates for
CPB&G agenda items is located at CPDC website
http://www/tier3/PPD/Executive/index.html
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