May 2004
Richard P. West, Executive Vice Chancellor and Chief Financial Officer

 
  News from the Departments
 

Budget Development
Patrick Lenz, Assistant Vice Chancellor
 

Business Planning and Information Management
Lenore Rozner, Assistant Vice Chancellor
 

Capital Planning, Design and Construction
Elvyra F. San Juan, Assistant Vice Chancellor
 

Financial Services
Dennis Hordyk, Assistant Vice Chancellor
 


 

BUDGET DEVELOPMENT
Patrick Lenz, Assistant Vice Chancellor

Beginning with Chancellor Reed’s overview presentation on March 8 before the Senate Budget Subcommittee on Education, the Senate and Assembly budget subcommittees have been reviewing the CSU budget issues identified in the Governor’s January budget. The budget subcommittees have heard from the Department of Finance (DOF) on the specific recommendations in the Governor’s budget and from the Legislative Analyst’s Office (LAO) on their alternative budget approach to funding higher education. The major issues of concern include enrollment and admissions, outreach and academic preparation programs, the Educational Opportunity Program (EOP), student fees, CSU State University Grants and the Student Aid Commission Cal Grants financial aid, and capital outlay projects.

The Governor’s January budget assumed a state General Fund reduction of $239.7 million, unfunded mandatory costs of $57.5 million, and student fee revenue of $101 million - representing a net total fiscal impact of ($195.5) million to the CSU. The CSU continues to work with the Administration and the legislature on policy issues such as the redirection of first-time freshman, students taking excess course units, and a long-term student fee policy. However, Chancellor Reed has indicated to the Governor and the legislature that enrollment reductions and increasing student fees are the only options for the CSU given the $195.5 million budget reduction proposed for 2004-05 fiscal year, on top of the $300 million budget reduction CSU received in the 2003-04 fiscal year. The CSU has reduced enrollment by 5 percent for 2004-05 and is still considering student fee assumptions based on continuing discussions with the Governor’s office.

By mid-May the Governor will submit his May Revise to the legislature, updating his revenue estimates and expenditures to the 2004-05 state budget. Last year, after the Governor submitted his May Revise, the legislature reduced the CSU budget by $84.5 million. This year, there is great uncertainty as to how the Governor will treat the CSU at May Revise or how the legislature may respond. However, the Revise is anticipating $1.7 billion in additional state revenue, although $1.5 billion of that is considered “one-time” revenue as a result of the Administration’s tax amnesty program.

The 2004-05 budget would result in $562 million of accumulated cuts to the CSU budget since the 2002-03 fiscal year, in addition to a $636 million structural funding gap impacting the quality of education to our students. The CSU has made it clear to the Administration and the legislature that we will only enroll students to whom we can provide “authentic access” - to ensure students receive the classes they need to progress toward a degree in a timely fashion. The CSU is working with the Administration and the legislature to provide a greater understanding of the limited options available if additional budget reductions were to occur.



BUSINESS PLANNING & INFORMATION MANAGEMENT
Lenore Rozner, Assistant Vice Chancellor

QUALITY IMPROVEMENT (QI) PROGRAMS

To further promote the success of QI programs and initiatives at the systemwide and campus levels, the QI
Program plans to publish an Annual Report starting this September. The Annual Report will be ready for distribution at the September Board of Trustees meeting. The Quality Improvement Planning Committee is providing all campuses an opportunity to highlight their quality improvement activities. Specific utilization of the systemwide QI Program tools is not a requirement for inclusion.
This annual report will provide the CSU an additional opportunity to highlight productivity efforts in the system and promote these activities to the public, the Trustees, the legislature, and to our campus constituencies.
Campuses will be asked to submit, via their campus Quality Improvement Facilitator, a one-page summary of activities taking place. The deadline for submissions is July 15, 2004.

For more information, contact Vicki Stover, Chair, QI Planning Committee at (805) 756-2171 or vstover@calpoly.edu, or Matthew Ceppi, Acting Manager, Quality Improvement at (562) 951-4547 or mceppi@calstate.edu

Matthew Ceppi
Quality Improvement Programs


CAPITAL PLANNING, DESIGN AND CONSTRUCTION
Elvyra F. San Juan, Assistant Vice Chancellor

CPDC is very pleased to announce that Mr. Larry Piper has accepted the position of Chief of Facilities Planning in Capital Planning, Design and Construction.

Larry comes to CPDC from his position as Senior Architect in the Department of Facilities Planning and Management (FP&M), at San Diego State University. He has extensive experience with CSU practices and policies for budgeting, programming, and construction management of major state and non-state capital projects. Having twenty years experience in FP&M, Larry brings both the knowledge base and leadership skills necessary to adapt CSU procedures to changing conditions and technologies. Larry will start his appointment on June 1, 2004.

Capital Training: In April, CPDC hosted two one-day training sessions: CSU Design Procedures and Construction Delivery Methods, which included a session on the Master Enabling Agreement for Comprehensive Energy Services. Both days were well attended with 78 participants. The training sessions scheduled at the Chancellor’s Office Dumke Conference Center for the balance of the year are:

July 22   The Law of Design and Construction
July 23   CSU Construction Management Procedures
Sept 23   Construction Issues
Sept 24   The CSU Building Official’s Responsibilities

As part of the recently announced Energy Efficiency UC/CSU/IOU partnership (see article under Plant, Energy & Utilities), the third annual UC conference on sustainability, “Building Confidence – From Sustainability Policy to Practice,” has been incorporated into the Training and Education (T&E) component of the program. The conference will provide a forum demonstrating progress in energy efficiency and sustainable development and strategies for incorporating policies into institutional practices. CSU staff are invited to attend the conference, which will be held June 20 – 21, at UC Santa Barbara. A subsidy will be provided to CSU/UC participants to offset the cost of the conference through the partnership budget, but the details and mechanism have not yet been finalized.

For further information regarding the conference, visit http://www.bren.ucsb.edu/news/events/GreenBuildingConference2004.asp

Due Dates for CPB&G Agenda Items

BOT Meeting
Master Plan Items
All Other Items
July 13-14
May11
May 25
September 14-15  
July 13  
July 27
November 16-17
September 14
September 28

Guidelines and related submission material required for CPBG agenda items are at http://www.calstate.edu/CPDC/Executive/index.shtml

Nancy Freelander-Paice, Executive Program & Fiscal Manager

LAND USE PLANNING AND ENVIRONMENTAL REVIEW

Chuck Happe, Land Use Planning Manager in Capital Planning, Design and Construction, has received a “Letter of Commendation” from the Los Angeles Regional Crime Laboratory Facility Joint Powers Authority for being "an integral part of this successful partnership" and for his "outstanding service.” The Crime Lab is a $100+ million, multi-jurisdictional, non-CSU funded statewide bond project at CSU Los Angeles that involved a number of entities including the city of Los Angeles and the county sheriff's department. The CSU provided land on the campus to site the project, and in return will be able to utilize a portion of the facilities for criminal justice instructional programs. Chuck successfully cleared the complex title on the highly encumbered project area, including numerous decades old easements, thus avoiding delay or possibly even cancellation of the much touted "economic stimulus" project.

David Rosso, Chief of Land Use Planning & Environmental Review

ARCHITECTURE & ENGINEERING

Expected Standards of Care for Errors and Omissions: The systemwide Project Architect/Engineer Agreement is being modified to identify an expected standard of care for professional errors and omissions performance. Our agreements will now identify incurred costs for errors and omissions by the Architect/Engineer of up to three percent (3%) of the initial award construction cost as being within the ‘standard of care.’ Our Architect/Engineering teams are now advised that incurred costs for errors and omissions materially above this range will cause the trustees to progressively consider actions to recover damages. This three percent value is what the CSU has historically used as a gauge of acceptable professional performance, but up until now it has not been specifically identified in our agreement.

Thomas Kennedy, Chief of Architecture and Engineering

CONSTRUCTION MANAGEMENT

Contract General Conditions: Revised Contract General Conditions have been posted on the website, along with a document that identifies the significant changes made to each version of the general conditions. One of the changes to the general conditions stems from the passage of SB 640 last year. Effective January 1, 2004, all contracts must have a Declaration of Eligibility clause, stating that the contractor is eligible to contract with the state pursuant to the California Taxpayer and Shareholder Protection Act of 2003 (per Public Contract Code Section 10286 et seq.). We have incorporated this declaration into all versions of the general conditions, and the Declaration of Eligibility form is no longer required. See www.calstate.edu/cpdc/cm, click on ‘Contract General Conditions.’

Construction Manager at Risk (CM at Risk): After four projects were started using this new procurement method, the CSU contract documents appear to be working well. As a result, all campuses will be afforded the opportunity to ask approval to utilize this new procurement method. CM at Risk is recommended for large (over $20 million), complex projects. The most significant criteria is that the campus hire the designer and the CM simultaneously so that they can work together to ensure a successful project and to have a well defined program. Contact Jim Corsar for further information on the process, and to seek approval to utilize CM at Risk.

Labor Compliance Program: The Labor Compliance Managers have been working with campuses on minor cap and job order contract projects that utilize Prop 47 funds. As the first of the Prop 47 major cap projects are bidding or nearing that phase, it is critical that campuses utilize the Supplementary General Conditions requiring contractors to submit all certified payroll on their projects. Campuses must also notify the Labor Compliance Managers once the preconstruction meeting date has been set, so that they can plan to attend and address labor compliance for the projects. Questions regarding labor compliance can be directed to the Labor Compliance Managers, Chris Mitrovich and Brent Thomas, or to Jim Corsar.

Jim Corsar, Chief of Construction Management

PLANT, ENERGY AND UTILITIES

California ISO Predicts Tight Energy Market this Summer and Urges Conservation at Peak: California’s Independent System Operator (ISO), operator of the electricity transmission grid, predicts it will have sufficient energy and reserves to meet an expected 3.5% increase in summer electricity demand as long as weather and market conditions do not exceed normal conditions. Electricity reserves are described as “adequate but not ample” and conservation is urged on hot days.

Campuses can proactively take steps to reduce power demand and earn from $22,000 to $31,000 per megawatt hour by enrolling in a demand response program (DRP) for the peak summer months (June 1 to September 30). Last summer, seven campuses joined the demand response program for some portion of the program period. Sonoma State University was the only campus called on to actually curtail their nominated load and was able to deliver 100% of the 250 kW in their agreement.

Implementing Energy Efficiency Across California Campuses: Kickoff meetings for the Energy Efficiency UC/CSU/IOU partnership were held at three locations in northern and southern California in late April and early May. An overview of the three major components (energy efficiency retrofit, monitoring based commissioning, and training and education) and the goals of the innovative program were presented to campus representatives in the morning session. Input was solicited from attendees on training and education ideas for consideration in the approved training list to be issued this June, funded by the $800,000 training budget.

There is $5.9 million available to fund the Energy Efficiency retrofit projects. These projects are to be completed by December 2005, with target reductions of 1,328 kilowatts and 430,515 therms as program goals across the four investor-owned utility territories in California. The Partnership Executive Management Team is reviewing the project submittals, and will announce the awards in three sets: May 11, May 27, and June 10.

Comprehensive Energy Service Providers Request for Qualifications Released:
On March 23, the procurement office of the Chancellor’s Office released an RFQ for Comprehensive Energy Services. Eighteen firms responded and ten firms met CSU qualifications on April 27. A short list of qualified firms is expected to be finalized in May and the project delivery method available for campus use in June. The three-step implementation process of preliminary audits, investment grade audits, and project delivery streamlines the process for campuses.

CSU Joins State RFP for Solar Power: CSU is participating in a RFP seeking to contract for approximately 4 megawatts of private party owned on-site solar electric systems to be installed on or around state facilities. RFP sponsors are the Department of General Services and the California Power Authority. The goal of the RFP is to select solar service providers who will finance, install, own, and operate solar photo-voltaic (PV) systems to be located at specified state facilities and sell the electrical output to the host site.
Four CSU campuses have identified potential sites with an approximate capacity of 1 megawatt of electricity for pricing: building rooftops and carport structures at parking lots and parking structures. CSU has stipulated that proposed peak power contracts must be 15% less than the otherwise applicable tariff.

Len Pettis, Chief of Plant, Energy, & Utilities


FINANCIAL SERVICES
Dennis Hordyk, Assistant Vice Chancellor

CONTRACT SERVICES AND PROCUREMENT

Policy Manual For Contracting & Procurement: A revision to the CS&P Policy Manual for Contracting and Procurement has been released. This revision incorporates recently passed legislation and new policy requirements effective 4/20/04. This manual
can be viewed at: http://www.calstate.edu/CSP/crl/policy/Policy.shtml
Some of the more significant changes are:

- New Information Technology bidding requirements
- Incorporation of a 2 bid requirement for MEAs with multiple vendors
- Clarification of sole source/brand requirements
- Updates to the conflict of interest requirements

Further information can be obtained at: http://www.calstate.edu/csp/or by contacting Pat Dayneko at (562) 951-4595.

SYSTEMWIDE FINANCIAL STANDARDS AND REPORTING

Year-End Reporting and GAAP Workshop: The 2004 Year-end Legal and GAAP workshop has been scheduled for June 8-9, at the Radisson Hotel at Los Angeles Airport.

The June 8th (year end reporting/legal basis) workshop is designed to provide information related to year-end reporting to the State Controller’s Office, FIRMS year-end reporting to the Chancellor’s Office, as well as the year-end close/reporting process in Peoplesoft.

Attendance to the June 8th training is strongly suggested for all financial accounting and budget representatives who will have responsibility for FIRMS submissions and year end reporting to the State Controller’s Office.

As we approach year three of using the GASB 34/35 GAAP financial statements model as of June 30, 2004, the GAAP training session will focus on key areas in the GAAP preparation, as well as areas where campuses experienced difficulty last year, and any updates to the manual. Topics on the agenda include the conversion process for converting legal basis data to GAAP, GAAP adjustments and reclassifications, pass down entries from the Chancellor’s Office, statement of cash flows, management discussion and analysis (MD&A), reporting expectations, and other issues. This year, an afternoon session on Auxiliary Organizations has been added. Attendance for this training is mandatory for all Campus and Auxiliary Organization GAAP coordinators and any GAAP support personnel, who have responsibility for preparing and reviewing the GAAP financial statements.

The State Controller’s Office (SCO), Members of the Financial Standards Advisory Committee (FSAC), Chancellor’s Office, and KPMG will conduct the year-end reporting workshop.

The cost for the year-end reporting workshop is as follows:

Legal Training (June 8) $115 per person without legal manual
$140 per person with legal manual.
GAAP Training (June 9) $115 per person without GAAP manual
$190 per person with GAAP manual

Continental breakfast and lunch will be provided on each day.

The legal and GAAP manuals will be posted on the website prior to registration. The manuals will show edits to allow the attendees to see what changes have been made from the prior year, to give attendees the option of whether to purchase one or both of the manuals. If the attendee chooses not to purchase one or both of the manuals, he or she may print a clean copy of the revised manual to replace in the existing binder by accepting the changes in the track changes feature under tools in Word.

Registration is available now via the Financial Services website at the Chancellor’s Office homepage at: http://www.calstate.edu/FinancialServices/. All hotel reservations must be made on an individual basis with the Radisson Hotel at Los Angeles Airport by calling (310) 337-9000 prior to May 23, 2004. Please reference CSU Year-End Financial Report Workshop to obtain the discounted rate of $84 per night.

The last day to register is May 23, 2004. You must pre-register. Although we may be able to accommodate attendees after this date, we need to make proper arrangements with the hotel for meals and meeting materials in advance.

Should you have any questions regarding this training, please contact Sedong John, Associate Director of Systemwide Financial Standards and Reporting at 562-951-4577 or sjohn@calstate.edu, or Lily Wang, Financial Reporting Manager at 562-951-4628 or lwang@calstate.edu. Questions related to the registration process should be directed to Audra Reed at areed@calstate.eduor 562-951-4598.

FINANCING AND TREASURY

Retirement: On April 30, 2004, Richard K. Leffingwell retired after 32 years of service to the CSU. Rick started his CSU career in the audit department where he worked for six years. In 1978, he changed careers and became a financial advisor in Auxiliary Business Services, the predecessor of the Financial Services division. Rick, as Senior Director of Financing and Treasury, was instrumental in the recent implementation of the Commercial Paper Program and the Systemwide Revenue Bond (SRB) program. Under Rick’s leadership, the CSU benefited by receiving over $1.9 billion of proceeds from the bond and commercial paper programs. Rick will be enjoying retirement pursuing his gliding adventures.

Welcome: On April 12, 2004, Robert Eaton joined Financing and Treasury as the Financial Manager responsible for the cash management functions of the commercial paper program and the CSU investment program. Robert also has management responsibilities for the Channel Islands Site Authority financing activities. Robert has significant banking experience in servicing corporate and municipal clients with a variety of financing products. Financing and Treasury welcomes Robert to their team.

For further information on the commercial paper program or the CSU investment program, please

contact Robert Eaton at reaton@calstate.eduor his staff, Lisa Tran at ltran@calstate.eduor at (562) 951-4570.

Auxiliary Organization Debt Refinancing: Financing and Treasury is working with its financing team to identify potential bond refunding candidates for auxiliary organizations. The team is working on issuing Systemwide Revenue Bonds that would pay off eligible auxiliary organization bonds and fold in the auxiliaries to the SRB indenture. The bond sale is scheduled to occur in August 2004 and is estimated at $140 million, involving approximately twelve different auxiliaries. Financing and Treasury continues to monitor the bond market and identify all refunding candidates, both related to auxiliary bonds and Trustee bonds, such as for continuing education, housing, parking, and student unions programs.

For further information, please contact Walter Marquez at wmarquez@calstate.edu or (562) 951-4570.

Student Union Decentralization – Available for Eligible Campuses: As discussed recently with the campus VP for Administration and the Auxiliaries Organization, we are proceeding with decentralizing the student union program in cases where the unions have Systemwide Revenue Bonds outstanding and do not have senior bonds. Under the SRB program, the bond indenture allows greater flexibility in managing flow of funds and releasing funds to operate the student union facilities. The campuses will be receiving a memo from the Executive Vice Chancellor’s office outlining the principles for the decentralization and the oversight responsibilities of the campus’ chief fiscal officers. The accounting office will follow with a supplementary memo providing guidance on the accounting changes as a result of the decentralization. Financing and Treasury will be conducting a training workshop to provide further guidance to campuses.

For further information, please contact Rosa H. Renaud at rrenaud@calstate.edu or her staff, Angelique Sutanto at asutanto@calstate.edu or (562) 951-4570.

RISK MANAGEMENT

2004 Workers’ Compensation Reform: Governor Schwarzenegger signed Senate Bill 899, a comprehensive workers’ compensation bill that addresses many of the major cost drivers and problems that have plagued the workers’ comp system in the state of California. Provisions of the bill will affect processes on campuses. Sessions in the upcoming “Fitting the Pieces Together” Risk Management Conference will cover the changes. The following is a preliminary analysis, additional details will be provided to campuses shortly:

Senate Bill 899 was passed as an urgency measure and most of the major provisions of the bill became effective on April 19, 2004 when it was signed by the Governor. The provisions that are effective immediately are:

Treating Physician Presumption: The repeal of the personal physician’s or chiropractor’s presumption of correctness shall apply to all cases, regardless of the date of injury, but shall not constitute good cause to reopen or rescind, alter, or amend any existing order, decision, or award of the Workers’ Compensation Appeals Board (WCAB).

Vocational Rehabilitation: Vocational Rehabilitation is re-enacted for injuries prior to January 1, 2004.

Liberal Interpretation: Labor Code Section 3202.5 the “Liberal Interpretation” section has been amended to provide that all parties shall “meet the evidentiary burden of proof on all issues by a preponderance of the evidence in order that all parties are considered equal before the law.”

Medical/Legal Evaluations: The Agreed Medical and Qualified Medical Evaluation processes are more streamlined and now eliminate the employee’s right to an additional evaluation once they become represented by an attorney.

Medical Treatment: “Within one working day after an employee files a claim form under Section 5401, the employer shall authorize the provision of all treatment consistent with Section 5307.27 or the American College of Occupational and Environmental Medicine’s Occupational Medicine Practice Guidelines (ACOEM) for the alleged injury and shall continue to provide the treatment until the date that liability for the claim is accepted or rejected. Until the date the claim is accepted or rejected, liability for medical treatment shall be limited to ten thousand dollars ($10,000).

Medical treatment has been specifically defined as being treatment which is consistent with the current ACOEM guidelines until the AD creates his own guidelines as directed to be effective November 1, 2004.

Provisions allowing the employee to pre-designate a personal physician make it clear that the treating physician is intended to be a physician who actually served as the personal physician of the injured worker before the injury and must be the employee’s “regular physician and/or surgeon.” The physician must agree to be pre-designated.

Employers are now allowed to advise providers that pre-authorization is required for all non-emergency treatment and diagnostic services and that the employer may conduct reasonably necessary utilization review.

Limiting chiropractic and physical therapy treatments has been amended to include occupational therapy within the 24-visit limitation cap.

Temporary Disability Limits: With the exception of certain well defined serious injuries and illnesses, temporary disability is limited to no more than 104 weeks within a period of two (2) years from the date of the commencement of temporary disability.

Apportionment: “Apportionment of permanent disability shall be based on causation.” Physicians must now clearly state what percentage of the disability is due to the direct result of the work injury and what percentage was caused by other factors both before and subsequent to the injury. A report that fails to address this will be deemed incomplete.

Later Implementation: The provisions of all the new Permanent Disability Rating Schedule, the increased in the permanent disability benefits and the implementation of the new increase and decrease in permanent disability benefits based on return to work issues are all deferred until adoption of the new permanent disability rating schedule to be adopted by January 1, 2005.

Effective January 1, 2004 employers are allowed to contract with “networks” of doctors. Employers who do so are no longer subject to the 30-day medical control rule, instead they maintain medical control indefinitely.


INFORMATION TECHNOLOGY SERVICES (ITS)
David Ernst, Assistant Vice Chancellor

ACADEMIC TECHNOLOGY SERVICES

Academic Technology Initiatives: The Provosts’ Technology Steering Committee continues to provide oversight of academic technology initiatives. Below are updates on the first four initiatives:

As part of the Foundational Skills Initiative, the CSU Math Success website project is underway, with the CSU Center for Distributed Learning (housed at Sonoma State University) leading the effort. The CSU Math Success Website will support an outreach process to:

  • raise awareness of an individual student’s math proficiency needs
  • make explicit CSU requirements for math proficiencies
  • provide strategies for developing math proficiencies to satisfy math requirements.

The CSU Math Success Website will also enable access to instructional strategies for developing math proficiencies to satisfy math requirements. Three types of instructional options will be available to prospective CSU students

  1. High school courses/programs: Students can take courses to satisfy the CSU math proficiency requirements by taking selected high school courses in their senior year. This option is especially recommended for the EAP conditionally exempt students.

  2. CSU campus programs: Many CSU campuses have math preparation and remediation programs that are or can be delivered before the students begin their first semester in the CSU. The Math Success Website would provide an outreach/marketing pathway for prospective and admitted students to campus programs.
  3. System managed programs: The CSU will develop system-wide licensing agreements for prospective and admitted CSU students to purchase technology-based services that will help them prepare for the ELM. There WILL NOT be an exclusive vendor for these services. The first ELM-focused program has been developed and deployed for the last year by ALEKS - an online assessment and tutorial program that has been specifically designed to prepare students for the ELM through consultation with CSU faculty. ALEKS also has live online tutors.

Math Success project accomplishments to date include:

  • Interviews took place with high school students, teachers, and counselors to develop “use cases” for design
  • Process analysis conducted to develop navigational strategy and design/content requirements
  • Technology architecture selected
  • Campus “audit” of math remediation programs completed by Provosts
  • Preliminary designs for the integration of ALEKS practice exams completed
  • Outreach to CSU campuses about ALEKS (through CSU-ALEKS Users Workshop at CSU San Marcos 4/23/04)

A goal of the e-Learning Framework Initiative is to improve the usability and integration of academic technologies of course management systems (WebCT/Bb/Other), CSU library services, digital libraries (e.g. MERLOT), and CMS-PeopleSoft, producing user benefits for students, faculty, staff, and administrators. Accomplishments to date include:

  • Pilot test of Sentient Learning service for integrating access to CSU library collections and other digital libraries through Blackboard and WebCT.
  • Integration of MERLOT into Sentient Learning underway
  • Integration of CMS-PeopleSoft and Blackboard underway at CSU Pomona
  • MERLOT submitted NSF proposals for about $1.5 million to support a variety of projects for faculty and students using academic technology effectively.

A goal of the Digital Marketplace Initiative is to reduce cost and increase convenience/usability of academic technology content and tools. The initiative will pursue two strategies:

  1. Organize the purchasing power of the CSU by voluntarily and collectively identify, negotiating, and purchasing academic technology products and services (SWAT –Systemwide Acquisition of Technology), and
  2. Enable the CSU to effectively, efficiently, and securely distribute academic technology content, products and services (Digital Marketplace Service).

Accomplishments to date include:

  • Renewal of Turnitin and Macromedia at significant discounts (approximately 40% savings)
  • SWAT II plan and processes developed. SWAT II Team will meet in May, 2004
  • Draft plan for the distribution of digital content and applications developed with subcommittee of campus CIO’s. Consultation on plan continues.

One goal of the Student Success Initiative is to provide students and CSU staff access to accurate and timely degree audits to improve academic advising and student decisions. A strategy is to design and deliver degree audit capabilities to campuses with CMS-PeopleSoft. Accomplishments to date:

CMS-PeopleSoft is implementing the degree audit functionality in the Student Administration Module at CSULB.
Preliminary plans are in place for a meeting of campus academic advisors to inform requirements of degree audit and technology support for academic advising (Summer 2004).

TECHNOLOGY INFRASTRUCTURE INITIATIVE

Infrastructure Build-Out Project: Stage 1 and Stage 2: (As a reminder, the phases group campuses in the order that they undertake the TII project. Stage 1 refers to the physical construction of pathways, spaces and media on campuses; Stage 2 represents the installation of the necessary electronic components.)

Construction at the fourteen TII Phase 1 and Phase 2 campuses continues. All but one project is expected to be fully completed by mid-summer 2004.

Most Phase 3 sites are in the bidding process, and two (Bakersfield and San Jose) have received bids and will soon initiate construction. Project staff anticipate that all Phase 3 campuses will begin Stage 1 construction by late fall 2004.

Six campuses (Dominguez Hills, Maritime, Northridge, Sonoma, San Bernardino and Stanislaus) have completed Stage 2 of the infrastructure build-out. These campuses now have an upgraded network infrastructure, including new Cisco network electronics that meets the baseline standards for supporting the needs of campus students, faculty and staff. Two additional campuses, Long Beach and Los Angeles, are expected to complete Stage 2 by June of this year.

Network Management System (NMS): NMS, a set of software tools that allows campuses to monitor and measure their network performance and quickly identify points of failure when problems arise, has been installed on all 23 campuses. The next NMS version will update the network management tools to coincide with current vendor software releases and will be beta-tested during the summer months. Roll-out on the campuses should take place in late summer 2004.
Advanced training on the use of NMS software tools, which began last November, was completed in March 2004. The courses built upon previous training and taught students to use the more advanced network monitoring features of the software tools. The training sessions featured live, web-based as well as classroom delivered training at the Dominguez Hills campus. Staff from nineteen campuses participated.

Network Infrastructure Asset Management System (NIAMS): The Asset Management tool is a software application that allows campuses to maintain records of their network infrastructure by tracking cable and equipment locations on campus. The Network Technology Alliance (NTA) Committee’s Asset Management Working Group has been working in coordination with project management to position the NIAMS initiative within the Infrastructure Terminal Resources Project’s (ITRP) Standard Operating Environment (SOE). A parallel effort is underway to define and recommend SOE parameters for continuation of the software roll-out. The SOE implementation is expected to alleviate the system compatibility and configuration difficulties encountered by some campuses attempting to load and activate the software.

Security Incident Response Team: CSU will begin collaboration with Carnegie Mellon University’s Software Engineering Institute to offer improved handling of network system security incidents at each of the 23 CSU campuses. In the first phase of this effort, a baseline framework for incident handling will be created. In an optional second phase, advanced security incident response capabilities would be addressed through staff training and development.

CSU has the opportunity to become a national leader in the development of a security incident response team model customized for the university environment. Both CSU and Carnegie Mellon hope these efforts will help to set a standard that will benefit other institutions of higher education.

COMMON MANAGEMENT SYSTEMS (CMS) 

CMS project receives Computerworld Honors award: The CSU submitted a case study on CMS which officially became part of the Computerworld Honors Collection Sunday, April 4th when the 2004 Collection was formally presented to the Global Archives. The CSU was presented with the Medal of Achievement which is presented annually to men and women around the world who have made outstanding progress for society through the visionary use of information technology.

First Finance 8.4 Campuses Live: In March the San Luis Obispo and San Jose campuses successfully completed their Finance upgrades from Finance 7.5 to the new web-enabled Finance version 8.4 and the Long Beach campus completed their upgrade in April. The Bakersfield, Humboldt, San Francisco and San Marcos campuses plan to complete their initial Finance implementations in July.

Annual CMS Disaster Recovery Test: The third annual CMS Disaster Recovery Test was conducted over a recent weekend in March. CMS Central worked closely with Unisys, CENIC (for the wide area network connectivity to the disaster recovery site), and two CSU campuses, Fresno and Hayward to conduct the test. Within a 24-hour time period, CMS Human Resource, Finance and Student data was successfully loaded from Unisys backup tapes. Subsequent campus testing was successful after resolving several issues. This disaster recovery test demonstrates that the plan and operational processes are in place to recover, establish connectivity and enable CSU to conduct business in the CMS environment at an alternate facility in the event of a disaster.

MMS+ Facilities Management Mobile Computing and Bar Coding Live: The MMS+ Mobile Computing and Bar Coding Project officially went live at Humboldt State on April 12, 2004. The software allows for inventory automation and work order updates in the field. The project pays for itself in the first year through paper and other savings. Fresno State is scheduled to go live in mid-May and Sonoma is planning to go live in June.
CMS Audit: All the CMS audit recommendations have been addressed and the CSU submitted its response to the Bureau of State Audit in early March.

CMS Website Frequently Visited: Between September and November 2003, there were over 18,000 unique visitors to the CMS website, viewing a total of 6,485 pages. Given the current focus of campus activities, it is not surprising that during the three- month period surveyed, the most frequently accessed areas were the Finance 8.4 documents.

For more information on CMS, please go to http://cms.calstate.edu/

Measures of Success: The annual Campus Information Technology Survey was released to each Information Technology Advisory Committee designee on April 14, 2004. The completed surveys are due no later than August 2, 2004.


GOVERNMENTAL AFFAIRS
Karen Y. Zamarippa, Assistant Vice Chancellor

CSU Opposes Special Assessments Bill: The CSU has expressed opposition to Assembly Bill 2902 (Hancock), legislation that would allow local governments to levy special assessments on CSU campuses to pay for off-campus infrastructure improvements. This bill disregards current constitutional law and would force institutions of higher education to foot the bill for a wide variety of local infrastructure improvements that do not directly serve CSU faculty, students and staff.

Under current law, state property devoted to public use is constitutionally exempt from special assessments for local public improvements, absent express authorization by the Legislature [San Marcos Water Dist v. San Marcos Unified School Dist (1986) 42 Cal.3d 154, 166 (San Marcos).] AB 2902 would violate this long-standing constitutional provision and severely impair the system’s ability to fend off attempts by local jurisdictions to make CSU campuses the “deep pockets” for much-needed infrastructure improvements.

Such an issue is currently pending before the California Supreme Court. In City of Marina et al v. Board of Trustees of the California State University, the Monterey County Superior Court ordered CSU Monterey Bay (CSUMB), to pay the Fort Ord Reuse Authority (FORA) what amounts to a special assessment for local off-campus traffic and fire protection improvements. However, the Court of Appeal reversed this decision, holding the Trustees could not comply with the trial court’s order because CEQA does not expressly abrogate a state university’s sovereign immunity from special assessments. The court also held that, under San Marcos, any payment by the University for off-campus capital improvements, in the absence of express authorization from the Legislature, would be an unconstitutional gift of public funds.

In its first committee hearing, AB 2902 was approved by the Assembly Natural Resources Committee. However, the bill had only been amended a week prior to the hearing, leaving committee members little time to fully appreciate its impacts on CSU and the University of California (UC). As it moves to the Appropriations Committee, CSU and UC will continue to work to defeat the bill.

Mandate Relief Bills Advance: Two bills authored by the Assembly Higher Education Committee to provide mandate relief for California public higher education institutions continue to advance through the legislative process.

Assembly Bill 2469 would a) delete the requirement that the California Postsecondary Education Commission (CPEC) review biennial reports submitted by the three higher education segments relative to programs and services for students with disabilities; b) change, from annually to biennially, the frequency by which CSU must report to the governor and the Legislature on the revenues obtained from sales and leases of property at CSU Channel Islands; and c) delete the requirement that CSU and the Department of General Services (DGS) incorporate conclusions and recommendations on revisions of recycled paper procurement policies as part of an annual report to the Legislature and the governor. AB 2469 is pending on the Assembly floor, where it is on the consent calendar.

A second bill, Assembly Bill 2615, has advanced to the State Senate where it will be amended to include additional mandate relief items (to be determined) that pertain to CSU. Currently, the bill repeals obsolete Education Code provisions related to reporting requirements for the cross-enrollment program.

Student Fee Policy Bills Advance: Two bills which would establish a statutory long-term student fee policy are pending in the Appropriations Committees of their respective houses:

Assembly Bill 2710 (Liu) would establish policies regarding mandatory systemwide student fees and financial aid for students at public universities. Included in the bill are the following policies: a) increases in student fees shall be coupled with corresponding increases in state and institutional financial aid; b) the state should fund a fixed percentage (unspecified in the current version of the bill) of the costs of education for undergraduate students; c) undergraduate fees should not be increased by more than 8 percent in any academic year; and d) except in fiscal emergencies, student fees should be adjusted by the annual changes in statewide per capita personal income.

Senate Bill 1535 (Karnette), as amended by the Senate Education Committee, would require the Legislative Analyst’s Office and CPEC, in consultation with CSU, UC and the California Community Colleges, to propose a statewide policy for the mandatory systemwide student fees of public higher education institutions.

The CSU did not take a formal position on these bills, but in correspondence to the authors and appropriate committee chairs, expressed that given the state’s budgetary and long-term fiscal picture, a student fee policy – coupled with a funding commitment from the state – is absolutely essential to ensure the CSU is able to meet the promise of the Master Plan for Higher Education to provide an affordable, high-quality education to students. In CSU’s view, such a policy should:

  • recognize the value of higher education;
  • support quality, access and affordability;
  • hold the state accountable for future funding levels consistent with the CSU’s Master Plan mission and responsibilities;
  • anticipate ongoing and increasing enrollment growth;
  • acknowledge system shortfalls and unfunded costs;
  • recognize the role of students in paying a share of the cost of their education;
  • confirm the need for both General Fund and student fee revenues to support the university; and perhaps most importantly; and
  • provide a measure of predictability and stability to the fee-setting process for students.

The correspondence also provided an overview of current efforts to develop a long-term fee policy being undertaken by the Board, Chancellor, students, and faculty at CSU.

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


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