Business and Finance

 NEWS FROM THE DEPARTMENTS

September 2002

NEWS FROM THE DEPARTMENTS

BUDGET MANAGEMENT
Patrick Lenz, Assistant Vice Chancellor

The 2002/03 Final Budget has been approved with the enactment of AB 425, Chapter 379 that the Governor signed on September 5, 2002. The CSU General Fund budget appropriation is $2,680,280,000 and includes full marginal cost funding for 5% enrollment growth (15,038 FTES). Campus budget allocations will reflect 4% of this enrollment growth, with the remaining 1% held centrally until campus fall enrollment data has been reviewed.

The 2002/03 budget includes a $43 million one-time reduction in CSU General Fund revenue, which is to be specifically targeted in the areas of technology, instructional equipment replacement, libraries, and deferred maintenance. Campus budget allocations in these areas will be reviewed for compliance with the State's directive.

In addition, the Budget Act of 2002 includes $750 - $900 million in undesignated budget actions that will have to be implemented to balance expenditures with budget. The CSU may be included in actions required to bring the budget into balance, and the Chancellor has asked campuses to remain prudent in planning their expenditures.

Campus final budget submissions for 2002/03 were due August 26th and will form the base for 2003/04 budget planning. The Board of Trustees will receive preliminary recommendations for the 2003/04 budget at their September meeting and will take action on the 2003/04 Support Budget request in October.

BUSINESS PLANNING & INFORMATION MANAGEMENT
Lenore Rozner, Assistant Vice Chancellor 

Quality Improvement (QI) Programs

The final 2002 Customer Satisfaction Survey reports are now available on the QI website: www.calstate.edu/qi. These reports review satisfaction levels for faculty, staff and students on 10 campuses in 11 function areas (Career Services, Facilities, Financial Aid, Human Resources Services, Human Resources-Recruiting, Library, Mail Services, Parking, University Police, Student Accounts Receivables, and Student Health Services).

Performance Measurement 2002
Every other year, the QI Program sponsors a function-based Performance Measurement effort that facilitates the comparison of key performance indicators across the CSU. Based on recent feedback from the Administrative Vice Presidents and Student Services Vice Presidents, there is considerable support for expansion of performance measurement efforts in 2002. In order to accommodate new function groups who have not been involved in this effort in the past, the QI Program will be hosting a two-day workshop to train function representatives in the area of measurement development and to ensure that attendees have a good understanding of the Balanced Scorecard framework, which is being implemented on a number of campuses. This workshop will be held on October 2-3 in Ontario, CA. A similar workshop for established function groups will be held at the Chancellor's Office on December 3-4. For more information and registration details, visit the QI website at: www.calstate.edu/Qi/agenda/qipmagenda.shtml

The 5th Annual Quality Improvement Symposium and Expo
The 5th Annual CSU Quality Improvement Symposium and Expo will be held November 8, 2002 at the Crowne Plaza Hotel in Foster City, just minutes from the San Francisco Airport. This year's event offers a broad selection of breakout sessions that will provide educational opportunities in three tracks: "Assessment and Effectiveness," "Process Improvement," and "Performance Measurement." Learn how to take your organization to the next performance level, despite tight budgets. Michael Josephson, popular radio commentator and founder of the Josephson Institute of Ethics, will deliver the keynote address. For more details and to register on-line, go to the QI website at: www.calstate.edu/qi.

For more about QI activities and events, contact John Sanders at the Chancellor's Office, (562) 951-4556 or jsanders@calstate.edu, or visit the QI website at http://www.calstate.edu/qi.

CAPITAL PLANNING, DESIGN AND CONSTRUCTION
J. Patrick Drohan, Assistant Vice Chancellor

CONSTRUCTION MANAGEMENT

Architecture and Engineering

Update: SUAM, Section XI-Project Plan Development for Major Construction Projects
In April, CPDC updated the State University Administrative Manual (SUAM) to clarify building code enforcement and update project plan development responsibilities.

All current SUAM sections are on-line and available for download from the CPDC website at www.calstate.edu/CPDC/index.shtml

Staff is currently working on an update for Section X-Professional Services for Campus Development. This section will provide updates to the selection and appointment of professional service providers and clarify general requirements for the administration of professional agreements.

Project Architect Engineer Agreement Updates
The Project Architect/Engineer Agreement, companion exhibits and the Submittal Requirements and Procedure Guide for CSU Capital Projects have recently been updated and are available on CPDC's website at www.calstate.edu/CPDC/AE/ae_contracts.shtml. Incremental refinements to these documents are planned and minor updates are added over time. It is important to not save 'blank' agreements for later use as they may inadvertently become outdated. Download from web to ensure most current version.

Staff is working to develop a CM-at-Risk Agreement Supplement to the Project Architect/Engineer Agreement for presentation in CPDC's training coming up in October.

Also under development, a Campus Enabling Agreement template for Job Order Contracting of Professional Services to facilitate the provision of professional services on minor capital projects. It is envisioned that this agreement would be entered into with various service providers to provide services on an annual basis.

CPDC University Architect Appointed
On September 3, Ms. Deborah Wylie joined CPDC in the role of University Architect. Ms. Wylie has served as the Campus Architect at CSU Northridge since 1995. During her tenure at Northridge, she was instrumental in supporting the major rebuilding effort necessitated by the effects of the Northridge earthquake. We look forward to her contributions in this systemwide role.

Thomas Kennedy, Chief of Architecture and Engineering

FACILITIES PLANNING

SUAM, Section IV - Fiscal Resources for Campus Development, Section V - Measurement Devices for Physical Planning and Section VI - Standards for Campus Development are currently being revised. If there are specific issues you would like addressed in one of these sections, please contact Carol Hendrickson at chendrickson@calstate.edu or call 562.951?4108. The plan is to e-mail the edited version of these three sections to the Executive Deans in October for review and comments. The revisions will also be discussed at the Executive Deans meeting planned for the third week in November.

Proposition 47
The CSU is expectantly looking to the November 2002 ballot in which voters will consider Proposition 47, a $13 billion bond measure that would direct a total of $1.65 billion to higher education for capital outlay projects. The CSU's 2002/03 and 2003/04 capital outlay programs directly rely upon voters' support of this new general obligation bond.

Through this bond, the CSU would receive $496 million to fund the 2002 ($290 million) and 2003 ($206 million) capital program. This funding would allow for the renovation of buildings, the construction of new buildings for increased enrollment, and the upgrade of telecommunications capabilities at the remaining seven campuses that did not receive construction funding in the previous bond. This funding would also provide new faculty offices, increased study areas and collection space in libraries, and improve student service spaces - all critical capital components in our ability to serve student instructional needs.

It is important to bear in mind, however, that the approval of Proposition 47 by the voters would also permit the 2004 and 2005 capital programs to go before the voters in March or November of 2004. Failure of Proposition 47 would mean that there would be no ballot in front of the voters for the 2004 and 2005 programs.

Facilities Planning Due Dates
Draft Capital Outlay Budget Change Proposals (COBCPs) with Feasibility Studies for 2004/05 and Draft Capital Improvement Programs for 2004/05 thru 2008/09 were due into CPDC from campuses on September 3, 2002. Proposed revisions and recommendations from CPDC will go out to campuses by October 14, 2002.

DOF/LAO Campus Site Visits
Site visits by the Department of Finance and the Legislative Analyst's Office to review the scope of projects proposed in the 2003/04 program, have been confirmed for September 26 at CSU San Bernardino, September 27 at San Jose State University, and October 11 at San Diego State University.

Elvyra San Juan, Chief of Facilities Planning

PLANT, ENERGY AND UTILITIES

The cost of utilities continues to fluctuate because of both market conditions and regulatory actions. While the market price of electricity has dropped over the past six months, the cost to CSU has risen as much as 30 percent because of the California Public Utility Commission actions in levying surcharges to allow the Utility Companies to recover from last year's energy crisis. Further surcharges are on the horizon to pay for the huge debt incurred by the State for purchasing power through the Department of Water Resources (DWR). The CSU's Direct Access contract with APS is still bringing savings to the campuses over bundled utility service, although only time will tell if Direct Access will still be economical as the mandated surcharges mount.

Natural gas prices continue to drop and the CSU is enjoying substantial savings compared to one year ago when gas prices reached record highs. We are currently working with the Department of General Services to purchase long-term, fixed-price gas in order to take advantage of the current low prices. The program has been put on hold until the State budget has been signed.

The audit of all campus Enron related billings are approximately 60 percent complete. We hope to have this process completed and a final reconciliation with Enron by October 31.

Mark Gutheinz - Chief of Plant, Energy and Utilities

CPDC Due Dates for CPB&G Agenda Items (November 12-13, 2002 Trustees' Meeting

Master Plan Revisions

September 10, 2002

All Other Items

September 24, 2002

GOVERNMENTAL AFFAIRS,

Karen Yelverton, Assistant Vice Chancellor

Copies of CSU Legislative Reports and other legislative information pertaining to the CSU are available on the OGA website at: http://www.calstate.edu/oga

INFORMATION TECHNOLOGY SERVICES
David Ernst, Assistant Vice Chancellor

COMMON MANAGEMENT SYSTEM (CMS)

Student Administration (SA) Implementations Progressing Well
The SA pilot continues at the Fresno, CMA, and Sonoma campuses and will be completed in September. Students at the Fresno campus registered over the web using the Fresno portal, as well as through their voice response program. Sonoma and CMA students have also successfully registered over the web. As the classes begin on all three campuses, students will have the ability to drop and add classes over the web.

Close follower campuses, San Jose and Long Beach, have recently completed their Human Resource 8.0 upgrade, which is a milestone on the path to going live with the first Student Administration functionality later this year

2nd Wave Campuses Go Live with HR and Finance modules
Several 2nd wave campuses are now live with CMS baseline functionality. There are five 2nd wave campuses live with HR 8.0 and three live with Finance 7.5. More 2nd wave campuses are soon to follow. In October, the Chancellor's Office will go live with Finance and HR, and the San Bernardino campus will go live with HR.

ACADEMIC TECHNOLOGY SUPPORT

MERLOT
Project continues to grow in national and international reputation, and MERLOT is developing multiple levels of participation within the higher education cooperative. Recruitment of systems and institutions of higher education continues as well as developing alliances with professional societies. One National Science Foundation grant has been awarded ($352,000) and preliminary indication is that another grant will be awarded ($409,000). Both are two-year grants.

Center for Distributed Learning
Innovative projects in image databases, video streaming, and simulations for academic programs are planned for 2002-2003 along with web-based tools and resources to provide easy access to CSU's academic technology projects.

System-wide Library Projects
Pharos project staff continues to conduct campus orientation and training visits in preparation for fall implementation of Pharos 1.0 version, including an online catalog of combined library holdings, user-initiated interlibrary loan, and unified search interface features.

Academic Technology Planning:
Systemwide strategic planning on academic technology has been initiated with the Executive Council Retreat, and a meeting with the Academic Council (August 13, 2002). An RFP was released requesting consultation support in implementing the strategic planning process.

TECHNOLOGY INFRASTRUCTURE INITIATIVE

Stage 1 Progress
On July 24, Cal Poly San Luis Obispo became the eleventh CSU campus to successfully receive bids for a TII Stage 1 infrastructure upgrade project. As with most of the preceding ten campuses, the low bid amount was well within the engineer's estimate. It is expected that Hayward, Humboldt and Sacramento will also complete the bidding process in the very near future, with the result that all Phase 1 and Phase 2 campuses would be under contract for Stage 1 construction by the early fall months of 2002, in accord with recent schedule forecasts. Most Phase 3 sites have moved through preliminary plans into construction document development, but their planning for the bid process must await the outcome of voter action on Proposition 47 on the November statewide ballot.

Network Management
The Infrastructure Terminal Resources Program project includes a comprehensive set of Network Management Tools that will allow campus IT staff to proactively monitor the network and provide a quick resolution to problems. Phase-I of the project, which tests the baseline parameter settings, and the level of integration to determine if there are any significant operational problems, is nearing completion.

Middleware
As an outcome of the Presidents' Retreat on Information Technology, a Middleware Steering Committee charged with drafting a technology road map for CSU middleware development and deployment was created. Middleware technologies encompass directory, authentication and authorization services. As the institution begins to conduct more of its business on-line, these and related technologies become critical for security, privacy, identity conveyance and verification, etc.

The steering committee is charged with delivering a report to the Information Technology Advisory Committee (ITAC) no later than October 1, 2002. A draft of the report, including a proposed project plan, in the form of a list of specific initiatives and target dates, was provided to ITAC during their August meeting.

The Business and Finance Newsletter is accessible from the Chancellor's Office website http://www.calstate.edu/BF/. Questions related to receiving the B&F newsletter or changes in e-mail addresses should be directed to James Francel at (562) 951-4547 or jfrancel@calstate.edu.