Financing & Treasury

Office of the Chancellor
400 Golden Shore
Long Beach, California 90802-4275
(310) 985-2900

Parking System Task Force Recommendations:

a) That existing bond debt be repaid from balances available in the Parking System funds;

b) That parking operations be decentralized to the campuses of the California State University. To that end, commencing July 1, 1995, as parking fee revenue is deposited by campuses, campuses should receive simultaneous authority to expend those funds. Further, that commencing July 1, 1995, campuses should be responsible for annual operations, maintenance and repair, future new construction projects, establishing necessary reserves, and payment of systemwide expenses;

c) That construction projects approved by the Trustees through the 1995/96 action year and subject to confirmation as to project costs as of January 1, 1995 should be funded from existing reserves at or below the financial levels indicated. Further, that until a contract is awarded, campuses are eligible to receive the authorizations at the dollar levels specified plus any necessary Engineering News Record index (ENR) adjustment as approved by/through Auxiliary Planning and Bonds. Further, that no ENR adjustments be approved after June 30, 1996. Further, that such projects be terminated if the construction contract is not let by June 30, 1997, and dollars for the project revert for multi-campus distribution. Further, that for projects that are delegated for administration to campuses, campuses contribute on third of the cost of any contractor claims;

d) That the Office of the Chancellor retain a $5 million reserve to be used only for ENR adjustments and contractor claims related to projects referenced in c above. Further, that bid savings from projects should flow into this fund to offset expenditures from the reserve. Further, that this reserve be reevaluated as of June 30, 1996 and June 30, 1997, to determine the adequacy of the reserve. Funds not needed for the purpose of the reserve should be distributed to campuses. Should it be determined that funds are inadequate to cover the intended purposes, provisions should be implemented to rebuild the fund from campus parking revenues;

e) That as campuses receive decentralized fiscal responsibility/authority for all aspects of their parking program under the decentralization, this authority/responsibility should also include control over project management at the campus level as campuses plan and fund future new projects;

f) That reserves remaining after bond repayment (a) above, authorized project expenditures (c) above, and funding of the ENP/contractor claims reserve (d) above should be distributed to campuses. An initial partial distribution should be made by June 30, 1995, based on estimated funds, with a later distribution as year-end balances are confirmed;

g) That any reserve funds distributed should be distributed to campuses in a manner that divides one half the funds by a pro rata relationship based upon 1994/95 parking revenues for twenty campuses and the Chancellor's Office (except using 1992/93 for Northridge); and the remaining one half simply as a flat share for twenty-three campuses including the Chancellor's Office, the Maritime Academy and Monterey Bay; and

h) That in general, future required subsidies for parking operations between and among campuses are impractical and not supported as compatible with decentralization.

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