CAMPUS REENGINEERING COMMITTEE

Minutes: March 12, 1999

Approved Unanimously By CRC, April 16, 1999

Members Present

Members Absent

APPROVAL OF THE AGENDA

Steve Wilson brought the meeting to order at 12:25 PM. Wilson indicated the loss reporting policy was not ready for discussion and asked that it be removed from the Agenda. No objections were expressed. Wilson asked for a motion to approve the Agenda as amended. A motion was made by John Bond. A second was obtained from Andy Merrifield. The amended Agenda was approved unanimously.

APPROVAL OF THE MINUTES February 12, 1999

Wilson then asked for a motion to approve the minutes of February 12, 1999. A motion was made by Floyd Ross. A second was obtained from Bond. The minutes were then approved with no nay votes but with abstentions from those Members not present at the February 12, 1999 meeting. Merrifield asked that the minutes be distributed more than one day in advance. Neil Markley will try to distribute the minutes no later than the Monday before the meeting.

ACTION ITEMS/INFORMATION ITEMS TO DATE

Wilson asked the Committee to review the Action/Information Items to date contained in their agenda packets.

VICE-PRESIDENT'S REPORT

CMS Update
Wilson introduced Larry Linn to give an update on the CMS project. Linn reported 100 people attended the Peoplesoft product demonstration on March 5, 1999. A product overview was also distributed at that meeting. Linn informed the Committee that a CMS website and discussion forum is up and being maintained by University Affairs. Linn will be visiting CSU Fresno to further examine how that campus uses the Peoplesoft product on a Macintosh platform. Wilson updated the Committee on the finance module. Edna Nakamoto updated the Committee on the human resources module. Nakamoto indicated 5 prototype teams for 7 modules have been developed and prototyping will begin in April.
Land Acquisition
Schlereth indicated this report satisfies the accountability measure assigned to Administration and Finance. Sale of the Henderson parcel has officially closed. Structures on the property have been assessed for historical significance by the Northwest Information Center and have been deemed of no historical significance. The structures will be demolished in a manner to minimize the possibility of asbestos related issues. The Anderson parcel is still in negotiation.
1998-1999 Expenditure Plan
Copies of the expenditure plans have been sent to numerous people on campus including the CRC. The Chancellor's Office has also received a copy. Schlereth noted this Expenditure Plan is the most comprehensive to date. The California Faculty Association is interested in using this Expenditure Plan as a model. The document also includes audits of the University and Auxiliaries.
AUDIT REPORTS
The University went through financial audits and one risk management compliance . Letitia Coate walked the Committee through the audits. Coate explained the financial audits are GASB GAAP audits conducted by independent auditors and contain four main parts: the management letter, auditor's report, financial statements, and notes. The auditors had two findings: the University needs to examine Y2K issues and additional resources should be allocated to the accounting staff. The risk management compliance audit was conducted by an auditor from the Board of Trustees. Schlereth noted the auditors would return for a follow-up visit on March 31, 1999. Schlereth noted the Risk Management position has been a high priority at Sonoma State for the last two years. Schlereth commended the accounting staff and departments for their hard work and very good audits. Wilson pointed out the compliment Zainer Rhinehart's auditors bestowed on the University for integrating the Auxiliaries into Financial Services. Wilson complimented the Financial Services staff. Bernie Goldstein noted Chancellor Reed and Audit Chair Stanley Wang, are making audits a large priority at the system level.
PBAC UPDATE
Schlereth presented Rose Bruce's statistics related to large classes at Sonoma State. Schlereth reviewed new university-wide items which he feels will be the centerpiece of the upcoming PBAC meetings.

NEW UNIVERSITY-WIDE ITEMS 1999-2000

CSU Risk Pool Increase $260,000
Mandated CSU Item. Relates to the System-Wide self-insurance program for general liability, workers compensation, industrial disability leaves and non-industrial disability leaves.
Common Management Systems $120,000
Mandated CSU Item. Relates to the second year of a multi-year financial plan discussed with PBAC.
Hope Scholarship Reporting $ 20,000
Mandated Federal Item. Relates to providing each student with an IRS report reflecting payments made for instruction
YEAR 2000 Compliance $350,000
Un-avoidable expense. Relates to replacing and repairing certain portions of the campus infrastructure primarily in Information Technology, and the conversion of the campus network from Localtalk to Ethernet. Project costs estimated at $1,500,000 and exclude any Year 2000 issues in the physical plant. Financed with a five year interfund loan from the CSU at 6%. Annual debt service projected at $350,000. Alternate funding being explored and may result in the elimination of this item.
Schulz Center Warm Shell $335,000
Relates to the completion of the third floor warm-shell space in the Schulz Center brought about by a construction bid higher than budget. Also includes resources to finance moving the Library and Information Technology from from Salazar Hall., Total project cost estimated at $2,500,000. Financed with a ten year interfund loan from the CSU at 6%. Annual debt service projected at $335,000. Delay in funding this item will increase project costs by at least $1,000,000 and result in an unfinished, unusable third floor in the Schulz Center.
Un-Identified CSU Items $150,000
Relates to the probability of additional mandates from the CSU likely to be identified between now and the issuance of the final budget. $150,000 is an estimate only and could be considerably higher depending on the outcome of collective bargaining and CSU strategies to fund technology needs in the wake of CETI. On item has already been identified and relates to the acquisition of property insurance for non-bond financed campus buildings. For SSU, this initiative, should it be launched, could range between $75,000 and $150,000 annually.
University Reserve $300,000
Relates to the lack of a University Reserve and historical data illustrating. Reserve expenditures of approximately $300,000 annually. Failure to fund this item "off the top" will require assessing each Division for Reserve expenditures as items are approved for funding from this budget annually.
CMS General Fund One-Time Assessments $118,000
Relates to one-time annual assessments for CMS for individual General Fund units. One-Time assessments will be required in each of the next six fiscal years. Failure to fund this item "off the top" will require assessing each Division unit for CMS as was done in fiscal 98-99
NEW UNIVERSITY-WIDE ITEMS: 1999-2000 SUMMARY
Item Amount
CSU Risk Pool Increase $ 260,000
Common Management Systems $ 120,000
Hope Scholarship Reporting $ 20,000
YEAR 2000 Compliance $ 350,000
Schulz Center Warm Shell $ 335,000
Un-Identified CSU Items $ 150,000
University Reserve $ 300,000
CMS General Fund One-Time Assessments $ 118,000
SUB-TOTAL $1,653,000
Less Projected New Discretionary Dollars from CSU $ -335,000
TOTAL $1,318,000

1999-2000 GENERAL FUND BUDGET STATUS REPORT - GOVERNOR'S BUDGET PLAN FOR THE CSU
RESTRICTED FUNDS    
Full Year Compensation Costs $ 2,500,000 $ 2,500,000
New Space $ 2,057,000 $ 2,057,000
Plant Maintenance $ 4,000,000 $ 4,000,000
Monterey Bay Start-Up $ 2,833,000 $ 2,833,000
State University Grants $ 3,269,000 $ 3,269,000
Benefits Increase $ 7,400,000 $ 10,654,000
Employee Compensation Increase $ 73,440,000 $ 44,982,000
Summer Session - Teacher Preparation $ 2,429,000 $ 2,200,000
Technology $ 33,700,000 $ 2,000,000
Channel Islands $ 2,000,000 $ 1,200,000
Applied Agricultural Research $ 5,000,000 $ 1,000,000
Instructional Equipment $ 1,300,000 $ 0
Additional Compensation Faculty (2%) $ 19,512,000 $ 0
Teacher Recruitment $ 2,000,000 $ 0
Coachella Valley $ 380,000 $ 0
State Recognized Deficiencies $ 45,000,000 $ 0
Less Campus Productivity Savings $-10,000,000 $ 0
TOTAL   $ 76,695,000
VARIANCE $196,820,000 120,125,000

Footnote on Employee Compenstation Increase: Represents a decrease from a 4% salary increase pool to a 2.45% salary increase pool

DISCRETIONARY FUNDS
Item    
3% Enrollment Growth $ 52,516,000 $ 52,516,000
VARIANCE   $0

Sonoma State University expects to grow by just under 1% or 54 FTES 54 FTES will produce approximately $335,000 of new campus discretionary revenue 54 x $6200 = $334,800.

Schlereth noted the PBAC did not discuss the University Reserve due to time constraints. Jim Christmann asked if new money would be used to lower the university-wide items or would it be given out based on the marginal cost formula. Schlereth answered it would most likely be used to lower the university-wide items. Andy Merrifield asked if the May revised looks better. Schlereth believes it will, but only in the areas of technology and compensation which doesn't help the university-wide list.

CRC SUB-COMMITTEE REPORTS

Alternative Transportation
No Report
Exterior Lighting
Bond reported the group has developed a strategy to walk through the campus every six months to locate problem areas. At Cara Puccio's request, conduit has been run for the "F" lot crosswalk area. Further, the crosswalks will be repainted over Spring Break for better visibility. Letters for the building will be installed on March 20, 1999 and bids are going out for the building monument signs.
Human Resources Information Group
Schlereth stated the group was going and doing excellent work. Their first item to come to the CRC is the Recruitment Policy the Committee will be discussing today. An ADA and Leave Policy will be forthcoming. The Group is also looking at ergonomic furniture needs.
Financial Services Information Group
Wilson indicated they will be meeting on March 16, 1999. They will be discussing the Governor's Budget and an Investment Policy
Classroom Renovation Committee
This Committee is awaiting faculty members and should begin after Spring Break.

MAINTENENCE AND REPAIR 1999-2000

Bond explained he is not sure the exact amount of dollars to expect yet, however the budget is being focused on instructional spaces. Schlereth believes we will get $354,000+ in deferred maintenance money and $300,000-$700,000 in minor capital money. Rand Link asked that any Gym work that is to be started be communicated early so the Gym may be scheduled accordingly.

RECRUITMENT POLICY

Schlereth introduced Joyce Suzuki to the Committee who highlighted the proposed Recruitment Policy. This policy was an update from the 1989 Recruitment Policy. The Human Services staff is also updating forms which will be placed on the Human Services server. Discussion ensued on this policy with questions and suggestions made to Suzuki. Schlereth noted while many institutions recruit in different ways, he wanted this policy to reflect the culture of Sonoma State University. The PeopleSoft product will change this policy again when it comes on-line, he added. The proposed policy was sent back to the Human Resources Information Group for revision.

SERVERY REDESIGN

Neil Markley and Bruce Walker presented the budget, timeline, and schematics for the Commons Servery remodel. The project has been budgeted at $50,000 and will begin after commencement. Four themes will be included in the servery: burgers and fries, sandwiches and salads, smoothies, and Pastries Plus. The menu and prices had been discussed at a previous meeting. The area will also be made more attractive for catering when viewed from the dining room. Each theme in the servery will have its own cash register and drink station to help expedite the flow of customers. The lines in the Commons will be hard to eliminate because of the large volume in a limited space at lunch, however the new design should help alleviate the problem.

PARKING POLICY

Schlereth asked Ogg to review changes to the Parking Policy, but asked that questions be kept until next meeting because due to time constraints. Ogg reviewed the proposed changes.

ITEMS FOR THE GOOD OF THE ORDER

Bond noted he was working with the vendor to correct the problems with the seats in Darwin.

Schlereth adjourned the meeting at 4:00pm.

Minutes prepared by Neil Markley

CRC Minutes 1998-1999
Updated 2008-01-08
AFD.WebContact@Sonoma.edu