Business and Finance News: February 2007

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

EXECUTIVE

2007 Training Program: The CSU Facilities Management Institute 2007 Training Program opened in January with two energy-related workshops at the San Jose campus: Energy Services Agreement (ESA) [formerly CESMEA] and Renewable Energy Projects. These sessions informed campuses of the ESA revisions and lessons learned on implemented projects. Over thirty-five campus staff attended the trainings, which were presented by internal and external experts in the field. Representatives from the seven energy service companies (ESCOs) were also in attendance.

On February 21 – 22, two sessions in support of construction management on the campuses will bpresented at the Chancellor’s Office: 1) Change Orders: CSU Contract General Conditions/Cost Estimating and Negotiating and 2) CSU Inspection of Projects. The presenters are valued consultants who understand the CSU major capital construction program. In March, three workshops are being presented on hiring practices and human resource and union contract management for physical plant directors and their associate directors. To enhance the exchange of best practices on this important topic, campus directors of human resources will participate as attendees in the human resource management session. The workshops will be held in the Executive Meeting Center at the Long Beach Hilton. In mid April (18-19), the training program will move to CSU San Marcos for sessions on building commissioning, central plant optimization and demand side management strategies. Later in April the annual training and update workshop on the Space and Facilities Database (SFDB) will occur at the Chancellor’s Office.

Registration for these sessions is available at http://www.calstate.edu/CPDC/Trg2007.shtml. CPDC appreciates the ongoing support from Financing and Treasury, Contract Services and Procurement, General Counsel, and Systemwide Human Resources in the presentation of this training program throughout the year.

2007 CSU Facilities Management Conference: “‘Inspire–Innovate–Achieve—A Capital Idea” is the theme for the annual CSU Facilities Management Conference at the Sacramento Hyatt Regency and Convention Center, November 4 – 7, 2007. Property Acquisition and Development; Planning; Design and Construction; Plant Management; Energy Management; and new this year, Emerging Trends and Technology are the six educational tracks. There will be inspiring general sessions, innovative roundtable discussions, information exchange with exhibitors and sponsors, and networking opportunities to acknowledge the achievements of colleagues. Watch this column for more
information in the coming months regarding program, website, and registration.

Nancy Freelander-Paice, Executive Program and Fiscal Manager

FACILITIES PLANNING

Capital Renewal: The Capital Renewal Program funds projects to replace major building components and/or systems that have exceeded their useful life. The passage of Proposition 1D by the voters in November 2006 provided funding for the $50 million appropriation included in the 2006/07 Budget Bill for the program. The November election resulted in the delayed availability of funds, thus the campuses will have a difficult time bidding these projects by June 30, 2007, as required by the budget bill. The CSU, with the support of the Department of Finance, has requested the re-appropriation of these funds to extend the encumbrance date to December 31, 2007.

Governor’s 2007/08 State Capital Budget: The governor’s 2007/08 state budget, published on January 10, 2007, included $396 million for 27 projects based on a few adjustments to the five year program approved by the Board of Trustees at the September 19-20, 2006 meeting. Based on the CSU’s share of the Proposition 1D bond funds and funds remaining from prior bonds consistent with the Governor’s Compact, the Department of Finance considered the first 36 projects of the trustees’ request totaling $391.8 million. Adjustments in the governor’s budget included the consolidation of ten nursing renovation/addition projects into one systemwide nursing facility improvements project and a modification of the San Francisco State funds to acquire land surrounded by the campus. None of the 2007/08 project requests were reduced in the governor’s budget. In February, the Legislative Analyst’s Office will release its Analysis of the Budget Bill and the CSU Capital Program.

Larry Piper, Chief of Facilities Planning

LAND USE PLANNING & ENVIORMENTAL REVIEW (LUPER)

California Environmental Quality Act (CEQA) and Traffic Consultants: CPDC convened an unprecedented systemwide meeting of CSU campus planning staff and CEQA traffic consultants on January 16 to address issues relative to "fair share" negotiations for mitigation cost assessments by local government agencies in the context of the 2006 California Supreme Court decision, City of Marina vs. Trustees of CSU. The purpose of the meeting was to better understand traffic models and discuss the common elements that should be considered in modeling the impact on local intersections of a particular campus growth project.

LUPER continues its initiative to improve and update the land title mapping database, which provides campuses with a useful tool: spatially correct maps that can be used as the base for other campus maps. In order to make the boundary and encumbrance (B & E) maps more user-friendly, Ben Morales, CAD Coordinator, is importing CAD and hard copy data in a digital GIS (geographic information system) environment. The goal is to allow the user to "click and view", e.g., click on an easement on a campus's B & E map and view the easement document itself. As part of this effort Ben plans to work with the campuses to spearhead a systemwide CAD and GIS user group to discuss, develop, and implement improved mapping standards. Creating a user group consisting of design professionals and campus mapping personnel, will established. A cadre of users invested in the seamless integration of all campus maps

David Rosso, Chief of Land Use Planning & Environmental Review

ARCHITECTURE & ENGINEERING

Seismic Review Board Shakes Up Priority List: The CSU Seismic Review Board has completed a systemwide campus reassessment of existing buildings for seismic safety. The CSU maintains two seismic lists: Priority I warrants seismic repairs at the earliest opportunity; Priority II mandates seismic renovation no later than concurrent with the next renovation of or addition to that particular facility. This updated priority list can be viewed at: http://www.calstate.edu/cpdc/AE/Seismic/Seismic_Priority_list.pdf. New additions to both priority lists were made as a result of this reassessment. The CSU is in good shape on the whole, having addressed all of the falling hazards and most of the seismically-deficient facilities identified in 1993 when the first complete seismic assessment was performed. CPDC is working with campuses to incorporate facilities with newly identified seismic deficiencies into their five-year capital program planning. This will influence the prioritization of future capital projects. The CSU is recognized for both its commitment to seismic safety and its highly regarded peer review board which provides counsel on systemwide seismic issues.

Trustees Sustainability Policy Update:The Sustainability Advisory Committee (SAC) is continuing to address the sustainability measurement and verification system that is being developed as the California State University Program for Environmental Responsibility (CSUPER). Following sustainability methodology training in August 2006, the SAC subcommittees reviewed and made recommendations on how to embed sustainability, from a measurement and verification process perspective, into the work of CPDC. The result is CSUPER, which builds on established CSU processes and acknowledges accepted practices in the “green” building industry. CSUPER will develop an integrated design process to encourage comprehensive and responsible decision-making.

An initial draft of CSUPER was presented to a joint meeting of the executive deans and physical plant directors in December 2006 at CSU San Marcos where it was well received. Dialogue with these groups will continue as CSUPER is finalized prior to its presentation to the Board of Trustees at the July 2007 meeting. Systemwide training will follow.

Thomas Kennedy, Chief of Architecture and Engineering

PLANT, ENERGY AND UTILITIES

Plant Directors’ Meeting: The physical plant directors met December 4-5 at CSU San Marcos. Topics discussed included the development of the Electrical Safety Standards Guideline and the Joint Apprenticeship Program. John Ferris, Director of Facilities Services at CSU Los Angeles, presented a video on sustainability titled, “The Next Industrial Revolution.” More information on the video is at http://www.thenextindustrialrevolution.org/. Tony Simpson, Director of Facilities Services at CSU San Bernardino, presented, “Disaster Preparedness; Lessons Learned,” which detailed how CSU San Bernardino dealt with building remediation made necessary by flooding during a major storm in October 2006. The joint meeting with the executive deans included presentations on energy management, sustainable practices, and an update on required access compliance plan checks completed by the Division of the State Architect. The next quarterly meeting is scheduled to take place in March 2007 at CSU Long Beach.

2006 Green Star Award: The Professional Grounds Management Society (PGMS), an organization of park, playing field and campus grounds managers, awarded a 2006 Green Star Award for best-maintained grounds of an urban university to San Francisco State University. The annual award recognizes the aesthetic and technical skill of the campus. Director of Campus Grounds Phil Evans accepted the award on behalf of San Francisco State at the annual PGMS meeting held November 4 in Columbus, Ohio. Evans told the PGMS attendees, “The 25 employees in the San Francisco State Grounds Department work with remarkable personal and professional care. And they have adopted exceptional quality as their daily standard.” A virtual tour of San Francisco State’s campus gardens is at http://www.sfsu.edu/~plantops/TourOurCampusGardens.htm.

Sustainability Advisory Committee (SAC) Education & Research Subcommittee Meeting: The Education & Research Subcommittee convened on December 13, 2006. As reported in the November 2006 newsletter, this subcommittee was formed to bring faculty members into an active role in the sustainability discussion. The vision is that this subcommittee could develop curricular recommendations and service learning opportunities not only to educate CSU students, but also to better use student and faculty interest in pursuing sustainability both on campus and in communities. The results of the first meeting identified the following goals: to improve systemwide sustainability communications; to develop suggestions for a comprehensive sustainability policy for the CSU; and, to develop outside funding sources for sustainability-related academic and curriculum support.

AB32 - CA Global Warming Solutions Act of 2006 - CA Climate Action Registry: The California Air Resources Board (CARB) is entering the policy-making phase required by the California Global Warming Solutions Act of 2006. The Act requires Greenhouse Gas (GHG) emissions to be reduced to 1990 levels by 2020. The CSU is monitoring these developments. Also of note, a provision in the Act grandfathers members of the California Climate Action Registry from any additional reporting requirements developed under the Act. The CSU Chancellor’s Office has signed a statement of intent and paid dues for the entire CSU system (a savings of over $80,000) to secure this option in reporting GHG emissions. The required reporting criteria are direct emissions from mobile and stationary combustion, indirect emissions from electricity and district heating and cooling, direct process emissions, and fugitive (refrigerant) emissions. When accurately submitted, the monthly energy reports already cover required fields with the exception of leak rates on refrigerants. However, existing refrigerant management programs as required by law capture the required information and will be incorporated into the monthly energy report process.

Partnership Update – Capital Renewal Funding: Significant energy efficiency incentives are available for ALL CSU campuses. There are $10.4 million remaining in incentive funding with an additional $1.5 million available to campuses in municipal service territories. If the CSU is unable to secure this funding, the utility partners will re-allocate it to other customer classes. The CSU has met a mere 11% of its commitment to Pacific Gas & Electric, whereas in Southern California Edison and San Diego Gas & Electric territories, the CSU has firm commitments for 82% and 71% of its obligations, respectively. The CSU’s ability to meet its utility partners’ needs by delivering avoided energy use is necessary to ensure continued and increased funding levels from the utility partners. All potential energy projects should be reviewed with Aaron Klemm, CPDC Energy Program Manager, in advance of project decision-making to ensure maximum energy incentive funding. Capital Renewal projects funded in 2006/07 and 2007/08 have the potential for energy savings. These projects need to be evaluated for any opportunities to extend Capital Renewal funding with energy incentives from the Energy Efficiency Partnership.

Len Pettis, Chief of Plant, Energy & Utilities