NEWS FROM THE DEPARTMENTS
BUDGET OFFICE,John Richards, Director
Final Budget Submission
BP 99-3 dated July 15, 1999 called for campus budget submissions by August 15, 1999. All the adjustments to the 1999/2000 final budget as delineated in BP 99-3 were to be included in the submission. Campuses were to allocate the funding (+/-) to budget areas as appropriate with the caveat that State University Grants and EOP Grants were to meet certain minimums. In addition to allocating the state and traditional funds, six campuses took advantage of the new guidelines, pursuant to AB2812, which permit campuses to budget, account and operate certain auxiliary funds and the Student Health Services Fee in and from the Trust Funds. It is anticipated that future budget cycles will see a marked increase in the usage of Trust Funds for applicable funds and programs.
In general, the budgets submitted in the FIRMS format and using the new validation tables were very well done. The 1999/2000 process will be reviewed and new guidelines for 2000/2001 discussed at the spring FOA meetings.
1999 Fee Report
The 1999 Fee Report was due from campuses by September 13, 1999. Executive Order 661 requires that each campus report to the chancellor for the most recently completed fiscal year a complete inventory of all fees charged to students, the total revenue collected for each fee, and the amount of increased funding provided to local financial aid programs to meet additional student need resulting from adjustments to mandatory fee levels. The fee report will be presented to the Board of Trustees at the November meeting to allow the board to consider the level and range of fees charged to students.
Instructional Equipment Inventory Survey
The 1998 Instructional Equipment Inventory survey was due from campuses by September 15, 1999. A key component of CSU budgetary cost factors is the annual inventory of instructional equipment provided by the campuses. This information is used to derive annual depreciation, which is one of the seven major cost factors determining CSU marginal cost per FTES. The depreciation derived from the inventory reports is also used to identify CSU instructional equipment funding deficiencies and for cost comparisons with the University of California concerning relative support budget need, and to explain the funding request to the California Department of Finance. The Chancellor's Office has also used each campus' share of total depreciation as the basis for instructional equipment funding allocations.
CSU 1999/2000 Budget Summary and Highlights
The California State University 1999/2000 Final Budget highlights and summary was distributed at the September board meeting. Copies are available in the budget office; telephone (562) 951-4560.
Budget Process for 2000/2001
The budget process for the 2000/2001 fiscal year has begun. The Executive Council and the System Budget Advisory Committee have both reviewed a preliminary planning estimate. The Board of Trustees discussed the preliminary budget proposal at its September 14-15, 1999 meeting. Approval of the budget by the Board is scheduled for a special meeting on October 28, 1999.
CAPITAL PLANNING, DESIGN AND CONSTRUCTION
J. Patrick Drohan, Assistant Vice Chancellor
ARCHITECTURE AND ENGINEERING
Systemwide Plan Check Agreements
The Chancellor's Office recently signed systemwide enabling agreements for plan check services with four firms. Project plan checks, as required by the California Building Code and SUAM policy, can now be rapidly procured by issuing work orders against one of the systemwide agreements. Information on utilizing these contracts has been distributed to all the campus procurement officers.
Enabling agreements for Seismic Peer Reviews will be completed in the near future and negotiations are under way with the State Fire Marshal for a similar agreement for their required reviews. The ultimate goal of these efforts is to expedite the procurement of all routine services required during the design of facility projects.
A&E Staff Changes
Mr. Thomas Kennedy has joined A&E staff as University Architect. Tom is a CSU graduate, receiving his Bachelor of Architecture, cum laude, from California State Polytechnic University, Pomona. He has a broad familiarity with a range of architectural professional practice issues, including master planning, site planning, design guideline development, project administration, and computing tools for design and construction. Tom fills the position vacated when Robert Schulz was appointed Chief of Architecture and Engineering.
Robert C. Schulz, Chief
The Land Records section of the Capital Planning, Design and Construction department has embarked on the first portion of its plan to create a Land Records Information System as part of the service provided to all campuses. Step one will be to complete and update campus boundary maps. This will include obtaining Record of Survey maps for three campuses that have never had their boundaries properly documented, updating the Record of Survey maps for those campuses that have had significant boundary changes and transferring all boundary survey data into CAD. Other campus Records of Survey that are currently on paper will also be transferred to CAD. Step two will be to have easements and other title encumbrances layered onto the CAD maps, including obtaining updated title information, as necessary. This will facilitate the process of researching the title for new facilities, meeting the requirements for bond sales, and providing title information when requested by campuses, the Office of General Counsel, or other departments.
W. Clifford Hahn, Chief
2000/01 Capital Outlay Program and the 2000/05 Capital Improvement Program
This year a new approach was taken in preparing the annual CSU Capital Outlay and Capital Improvement Program. The Capital Outlay Program for 2000/01 was separated from the future programs which contributed to a more streamlined and informative presentation to the Board of Trustees and the Governor's Office while still retaining the comprehensive data that has long been respected in Sacramento. These two program documents were provided to the Trustees in advance of their September meeting.
The Trustees' capital outlay request to the Governor for 2000/01 is the culmination of work by staff at all 23 campuses and at the Chancellor's Office over a period of almost a full year. A critical factor in the timely compilation and analysis of the program by staff is the submission of the draft program in January of every year and the detailed project description (COBCP) by the first of April. The Office of the President at every campus has also played a significant role in the focus of the capital outlay program by discussing the importance of the project in the broader context of the campus' needs.
CSU Unit Costs for Construction
Since the 1960's, established CSU unit building costs for construction have been adjusted using only the annual adjustments for inflation. (The one exception to this approach occurred in 1994 when the DOF approved a CPDC request to increase the base unit cost by $15 across all building types.)
With the goal of optimizing the life of facilities and minimizing the life-cycle costs of building systems, CPDC recently commissioned a construction cost estimator to study the construction costs for selected academic buildings on the basis of life-cycle costs. A committee of executive deans, plant directors and CPDC staff reviewed the study on classroom and laboratory buildings in relation to life-cycle costs. The recommendations of the study indicate that a 24 percent increase in the unit cost for science buildings and a 15 percent increase for classrooms is warranted to address life-cycle cost issues. The committee has requested that other building types also be studied in order to more fully represent the types of buildings that the system would typically build or renovate in meeting its capital needs. After completion of this portion of the study, CPDC will meet with DOF to discuss the revision of the CSU unit cost guidelines with the objective of reducing life-cycle costs.
Facilities Renewal Cost Model
Another initiative undertaken by CPDC in recent months is a study relating to a model for predicting the cost of replacing or renewing the components of buildings that have reached the end of their useful life. The cost model would provide an accurate budgeting tool to predict at what time and at what cost building systems would need to be replaced. It could make a 30-year forecast by system, by campus, by facility, and by component and would enable a campus to budget annually for replacement or renewal.
A steering committee of plant directors, CPDC and Budget Office staff is reviewing the model. The cost is estimated to be approximately $.01 per gross square foot of campus facilities. An initial study involving seven campuses as a test model is proposed, with all other campuses to be added later. With the support of the campuses, the study could be completed by June of 2000.
CPDC also proposes to promote discussions with the DOF regarding State support for a joint UC/CSU initiative to reduce the deferred maintenance backlog. The UC experience and the cost model described above will be presented at the CSU Facilities Planning and Management Conference to be held at the Queen Mary on October 18th.
Update: The Systemwide Telecommunications Infrastructure Upgrade Project
Pursuing the goal of achieving minimum baseline service at all 23 CSU campuses, CPDC included the telecommunications infrastructure build-out in the Capital Outlay Program as a phased implementation and the legislature has supported the request for working drawings for six campuses in 1999. Working drawings are developed at the campus' direction, with the scope being minimum baseline service and the budget as developed in preliminary plans. CPDC and ITS have held conferences to include both the planning and information resources staffs from all campuses. The Physical Infrastructure and Network Technology panel, consisting of campus, CPDC and ITS staffs, oversees the development of the plans and the specifications being developed. The project will provide enhanced connectivity in voice, data and video to all state-supported facilities, classrooms and laboratories. Selected instructional rooms will receive additional technology provisions to meet academic program needs. In the upcoming months, ITS will solicit pre-qualified proposals to furnish the media, terminal resources and the "refresh" portion of the project, based on the cost estimates developed at preliminaries.
Elvyra F. San Juan, Chief
CPDC Due Dates for CPB&G Agenda Items (January 25-26, 2000 Trustees' Meeting)
A complete listing of 1999 and 2000 due dates for CPB&G agenda items is located at CPDC website: http://www.calstate.edu/PPD/Executive/index.shtml.
FINANCIAL SERVICES Brad Wells, Assistant Vice Chancellor
Nonresident Alien Taxes
In an effort to assure the University complies with federal tax requirements and avoids potentially significant penalties, CABO has endorsed the formation of a committee comprised of campus and Chancellor's Office representatives that will develop and implement procedures and tools to assist campuses. The committee will begin work in September with a goal of having a working model in place by the end of the 1999 tax-reporting year.
Direct Vendor Pay
The direct vendor pay (DVP) program authority sunsets January, 2002. To develop support for legislation that would make the direct vendor pay authority permanent, a performance review of the program has been initiated. The purpose of the review is to demonstrate the benefits and efficiencies of allowing the CSU to pay vendors directly rather than process individual claims through the state controller's office. A committee has been formed to help guide these efforts. The initial step in the project has begun with the sampling of payable transactions that will test adherence to state requirements and also provide a basis for DVP benefit measurements.
Questions regarding non-resident alien tax reporting or DVP should be directed to Mark Osborne at (562) 951-4637 or via e-mail firstname.lastname@example.org.
Bill Musselman, Acting Director
CONTRACT SERVICES AND PROCUREMENT (CS&P)
Four - Campus PBX
Seven proposals were submitted in response to the PBX Communications Platform solicitation. The successful bidder(s) will provide the telephone communications systems to four campuses: San Marcos, Chico, Northridge and Hayward. In addition, the resultant agreed upon pricing will be available to all other CSU campuses. An evaluation team is currently evaluating the proposals and is expected to issue a Notice of Intent to Award in mid-September.
CSU Life Insurance
Proposals are currently being evaluated from seven firms to underwrite a variety of employer/employee paid life insurance programs. The RFP solicited proposals to underwrite any combination of the following: Basic Term Life & AD&D (employer paid), Voluntary Universal Life (employee paid) and/or Voluntary Portable Term Life (employee paid). An award(s) is anticipated in late September.
CSU Employee Dental Plan
Two contracts are being finalized for dental plan coverage, one has been awarded to Delta Dental for the indemnity plan and a second agreement has been awarded to Private Medical-Care, Inc. (PMI), a subsidiary of Delta, for the pre-paid dental plan option. Coverage for both plans will be effective January 1, 2000 for an initial 3-year term with optional term extensions.
Questions regarding these agreements can be directed to: Jackie Baird at (562) 951-4582 or email@example.com.
Status of Job Order Contracts (JOC)
In June, the Chancellor's Office executed a master enabling agreement with The Gordian Group for systemwide development and implementation of the CSU Job Order Contracts (JOC) process.
JOC is a procurement system designed to facilitate multiple, small (<$250K) improvement projects under one competitively bid contract. JOC replaces the normal design-bid-construct cycle associated with public works projects.
Eight campuses are presently implementing JOC. Interested campuses only need to execute the Campus Participation Agreement, Exhibit 1, of the master enabling agreement, to secure the services of The Gordian Group. Procurement Officers are encouraged to coordinate JOC activity with campus Facilities Management to ensure the agreement is executed and to facilitate the procurement process.
Questions regarding the JOC Agreement should be directed to Haaziq Muhammad who can be reached at (562) 951-4591 or by e-mail at firstname.lastname@example.org.
Status of Small Business Program
Effective January 1, 1999, Assembly Bill 2405 established a Small Business Advocate network. State agencies with an annual contracting program of $100,000 or more are required to appoint a small business advocate to act as a liaison for small businesses. To administer AB-2405 effectively, the Chancellor's Office Small Business Advocate coordinated with campus PSSO's to designate campus Small Business Coordinators. These designees will provide outreach and disseminate procurement opportunities to the small business community.
The CSU has been invited to team with the State of California, Department of General Services, Certification and Resources division to co-sponsor statewide community outreach workshops for the Small Business and DVBE communities. In conjunction with the Small Business Advocate Steering Committee, the CSU's Small Business Advocate will participate on a number of statewide subcommittees aimed at identifying best practices for small business participation in contracting opportunities.
Further information about these agreements and policy activities is provided on the CS&P website: http://www.calstate.edu/tier3/cs+p.
Pat Dayneko, Director
Workers' Compensation Administrator Update
Ward North America conducted the first in a series of on-line system access training sessions on August 26, 27 and 30 in San Diego and Concord. Training was provided to campus staff for entering a new claim directly into the system, and reviewing claims on-line. System training for additional campus staff will be conducted in October after the data conversion from SCIF has been completed. The dates for those future training sessions will be announced in the near future.
"Fitting the Pieces Together" Conference
The Fitting the Pieces Together conference, scheduled for November 3-5, has been postponed as a result of the workload associated with the transition of the Workers' Compensation program from SCIF to Ward.
Charlene Minnick, Director
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 www.calstate.edu/oga/
INFORMATION TECHNOLOGY SERVICES David Ernst, Assistant Vice Chancellor
A great deal of progress has occurred in the development of the CSU baseline Human Resources software over the past two months. Prototyping sessions in several areas have been completed including workforce administration, workforce recruiting, time and labor, base benefits, leave accounting, and regulatory reporting. Prototype sessions in coming months will focus on service and tenure calculations, labor cost distribution, labor budget and encumbrances, and health and safety administration.
Prototyping is underway for generation of the Finance chart of accounts. A white paper outlining the overall structure for the chart of accounts will be distributed for review by all CSU campuses in mid-September. Prototyping for general ledger and procurement will begin in September.
A CMS technical architecture workshop was held in August to design a technical environment that will meet the needs of the CMS project implementation on all CSU campuses. A document summarizing the technical architecture will be completed this calendar year.
The CMS project plan has been updated to show planned go live dates for the 1st wave campuses for the initial human resources and financial implementations. Planning is currently underway to develop a detailed project plan for the student administration modules. We expect to begin prototyping of these modules later this fiscal year
Hilary Baker, Senior Director
BUSINESS PLANNING & INFORMATION MANAGEMENT Lenore Rozner, Assistant Vice Chancellor
Quality Improvement (QI) Programs
Customer Satisfaction Survey: The second, systemwide customer satisfaction survey encompassing nine functional areas has been completed. Ten campuses participated in the survey. Three surveys (one to the faculty, one for the staff and an A and B version for students) were administered. A systemwide summary report has been prepared and is being reviewed by the QI Steering and Planning Committees. Copies of the systemwide summary report will be sent to each campus.
Mini-Benchmark Project: Functional areas have held their post-data-collection workshops and are in the process of analyzing their data and preparing their functional reports. Function Chairs will give presentations of their final reports to the Steering and Planning Committees on September 21, 1999. Shortly thereafter, a consolidated final report will be issued with copies to all campuses.
QI Frameworks RFP: Master enabling agreements have been issued for the following three consultants: APQC Consulting, Citygate Associates, and Booz-Allen & Hamilton. Campuses interested in developing and adopting QI frameworks will be able to use these consultants for various levels of framework consulting depending on their needs. Information about these consultants is available on the QI website: http://www.calstate.edu/qi/Library/Library.shtml
Process Mapping: Orion Development Group has been selected as the consulting firm to provide process mapping training. During the next few months, workshops will be available for the functional group representatives and Quality Improvement Facilitators to attend. Campuses also have the option to contract with Orion to provide on-campus cross-functional training in support of their CMS implementation or other campus QI projects. More information relating to process mapping training is available on the QI website: www.calstate.edu/qi/library/library.shtml
Annual Fall Symposium: Registration has begun for this year's symposium entitled "Demonstrating Excellence in the 21st Century." The focus of this year's event is to celebrate and to learn about quality improvement efforts and models in the CSU. Chancellor Reed will open the day's activities discussing CSU accomplishments. The keynote speaker will be C. Jackson Grayson, Jr., Chairman of American Productivity and Quality Center who will present "The Quality Journey," San Jose will have an executive panel (President and Vice Presidents) discussing their QI story. Track sessions will offer 'how-tos' for change management, Balanced Scorecard and successful QI efforts in the CSU. Registration forms and other information are available on the QI website noted above.
Questions relating to the QI programs, frameworks, benchmarking, customer satisfaction surveying or process mapping training should be directed to Ron Ashcroft (email@example.com, (562) 951-4556
CSU Mentor Credit Card Interface
The CSU Mentor Internet credit card interface, giving students the option to pay for their application fee via credit card, has been up and running since July 30, 1999. In addition to domestic credit cards, this interface will also accept international credit cards, thus allowing students with such cards to use the service.
The CSUMentor's credit card servicer is CyberCash. At the request of campuses, an effort was made to provide campuses with a second vendor, Informed Decisions, to provide these services. Unfortunately, Informed Decisions has decided not to pursue the CSUMentor hookup option at this time.
The option for campuses to use a different vendor is still available if details can be worked out to do so. Requests to use a vendor other than CyberCash for CSUMentor will continue to be entertained. Questions relating to this issue should be directed to Brenda Whitworth at firstname.lastname@example.org.
The Y2K progress reports for the second quarter were received and summarized in a report to the Board of Trustees at its September meeting. Campuses continue to make progress and the CSU is "on track" to achieving its Y2K readiness objectives
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 email@example.com.