At the November meeting of the Board, Vice Chair Imeson presented the following proposal regarding engineering education. It stated:
Direct the Chancellor to work with private industry associations and representatives and report back at our next meeting with a proposal that includes the following:
Since the meeting, the Chancellor, staff, and representatives of OSU, PSU, and OIT have been preparing a proposal to address these challenges. A final copy of the proposal will be presented at the Board meeting.
Staff will recommend that the Board approve the Chancellor's plan for the future of engineering education in Oregon.
AMENDMENTS TO 1997-2003 CAPITAL CONSTRUCTION
The following summarizes the amendments to the 1997-2003 Capital Construction Budget, which was approved by the Board in July and submitted to the Department of Administrative Services (DAS) in early September. With the exception of amendments associated with actions occurring after the DAS submittal to the Governor's Office in early November (such as Emergency Board action in late November), these changes were incorporated in the DAS submittal. Amendments to the capital construction budget request are common and have been presented to and approved by the Board in each of the last several biennia. DAS accepted the amendments on the presumption of subsequent Board approval due to historical precedent and the timing of the capital budget submittal process.
The amendments to the capital construction budget are due to a variety of reasons, including institutional requests to amend project funding sources, amounts, or phasing due to the availability of new information that impacts these variables; corrections to project information; shifting of projects to later biennia due to low campus or System prioritization; removal of projects below $500,000 that do not require state funds or new bonding authority; and small adjustments to better accommodate project phasing requirements.
Amendments to the Capital Construction Budget for the 1997-1999 Biennium
Amendments to this capital construction budget reflect a net reduction of $3.11 million for the 1997-1999 biennium from the Board-approved budget in July. This represents the difference between the Board-approved budget of $396,437,000 and the current amended budget total of $393,327,000. The largest adjustment in the Education and General category, associated with the University of Oregon's Campus Development Project, is due to approval by the Emergency Board in November. In that action, the Emergency Board approved the establishment of an Other Funds expenditure limitation in the amount of $24.5 million for construction of a new Law Center (Phase I of this Board-approved three-phase project), to be funded by a combination of $10.3 million of Article XI-F(1) bonds and $14.2 million of gifts. Since this limitation is now available to the University for this biennium, 1995-1997, the new capital budget has been adjusted accordingly.
The amended budget for the UO's Campus Development Project now includes only the remaining two phases: Phase II--Renovation of the existing Law School Building for general instructional use with requested funding of $4.0 million of Article XI-G bonds and $0.5 million of gifts and Phase III--Gilbert Hall Addition of 40,000 square feet of space with requested funding of $0.1 million of Article XI-F(1) bonds, $1.7 million of Article XI-G bonds, and $5.2 million of gifts. The total project funding is the same as that approved by the Board in July ($36 million), but the amount in the 1997-1999 capital construction budget request has been reduced to $11.5 million.
Other adjustments in the Education and General category include: 1) changed Western Oregon State College's funding split to reflect $1.0 million in gifts (Other Funds) for Phase I of the Academic Facilities and Program Accommodation project, leaving a total of $6.47 million to be divided between Article XI-G bonds and General Fund monies; 2) requested additional Other Funds limitation of $5.0 million for Systemwide repair and renovation projects and a total of $7.5 million for Systemwide projects involving Americans with Disabilities Act, safety, and classroom and lab modernization (this additional limitation is needed to provide adequate flexibility for projects that may be needed in those areas, in keeping with previous capital budget requests); 3) moved Southern Oregon State College's Life Sciences/ Math/Classroom project to the 1999-2001 biennium listing as the first priority project for their campus and placed the Technology Enhanced Resource Center in this position since this project is considered a higher priority by the College; 4) added Other Funds expenditure limitation of $2.5 million to Oregon State University's Hatfield Marine Sciences Center (HMSC) Fisheries Building project to properly cover total estimated project costs of $6.5 million; and 5) transferred Portland State University's Waseda University Center project in the amount of $21.9 million from the Auxiliary Projects category to reflect its correct funding source as Education and General.
Amendments to the Auxiliary projects include adding Other Funds expenditure limitation totaling $5.285 million for those projects to be funded by the Student Building Fee debt service fund. This includes adjustments for both PSU's Smith Memorial Center Renovation, Phase I ($0.46 million), and WOSC's Werner College Center Remodel/Addition, Phase II ($0.385 million), to eliminate the need for future project phasing if sufficient incremental debt service funds are available as a result of a prospective higher student building fee level in the 1997-1999 biennium, and requesting limitation for the UO's Recreation and Fitness Center project in its entirety ($18.14 million) to provide more flexibility if the University is able to expedite the project construction in the 1997-1999 biennium in conjunction with available auxiliary funds. Reductions of $20.585 million to the Auxiliary projects include removal of one duplicate item and four small projects (each under $0.5 million) that do not require state funds or bonding authority; the transfer of PSU's Waseda University Center project ($21.91 million) to the Education and General category as mentioned above; and the addition of WOSC's Valsetz Dining Renovation project in the amount of $3.0 million to permit urgent renovation of the dining hall to accommodate more student diners and update/modernize the facility. These collective adjustments result in a net reduction of $15.3 million to the auxiliary projects request.
Amendments to the Capital Construction Budget for the 1999-2001 Biennium
In July, the Board approved a capital construction budget for the 1999-2001 biennium in the amount of $435,228,000. With the amendments summarized below, the new budget totals $436,558,000 -- reflecting a net increase to the budget of $1,330,000.
The Education and General budget category reflects three project amendments representing a net addition of $21.805 million: 1) phasing of OSU's Greenhouse Modernization project, with Phase II in the amount of $3.93 million included in this biennium's capital construction budget; 2) adding OSU's Burt Hall Addition project to this category from the auxiliaries; and 3) placing SOSC's Life Science/Math/Classroom project in this biennium's budget as the first priority for the campus in this category.
The three Auxiliary budget amendments for this biennium collectively represent a net decrease of $20.475 million in this category. The amendments have all been mentioned previously in this report and include: 1) transferring OSU's Burt Hall addition to the Education and General budget for this biennium; 2) transferring SOSC's Technology Enhanced Information Resource Center project to the Education and General budget for the 1997-1999 biennium; and 3) transferring WOSC's Valsetz Dining Hall Renovation to the 1997-1999 capital budget for auxiliaries.
Amendments to the Capital Construction Budget for the 2001-2003 Biennium
The overall effects of these changes on the 1997-1999 capital construction budget for Education and General projects are to decrease the amount of state funds requested by $1,430,000 and to increase the amount of Other Funds limitation being requested by $13,620,000. The auxiliary services budget decreased from the Board-approved (July) budget of $125,775,000 to $110,475,000, for a net reduction of $15,300,000. The 1999-2001 request (which will be reviewed and renewed by the Board in 1998) would increase by $1,330,000.
Staff Recommendation to the Board
Staff recommends the Board approve the amendments to the 1997-2003 Capital Construction Budget based on the information provided in this report. The amendments result in a revised 1997-2003 Capital Construction Budget Request for the Oregon State System of Higher Education that totals $393,327,000, reflecting a net reduction of $3,110,000 from the budget approved by the Board in July.
SEMI-ANNUAL REPORT ON CAPITAL CONSTRUCTION
There has been significant activity since the May report on Board-approved capital construction projects. The following table portrays the status of all legislatively approved capital construction projects at the seven State System colleges and universities. Some are listed as complete, meaning that the facilities are occupied and all artwork, accounting, construction claims, and other transactions have been finished. Some of the projects reaching this stage since the last report included a Systemwide Asbestos Abatement project, KSOR Improvements at Southern Oregon State College, Hoke Hall Addition and Remodel at Eastern Oregon State College, and the Environmental Computer Center at Oregon State University.
Construction is progressing on a number of facilities as the State System currently has over $118 million of projects underway. These include Phase II of the Family Housing project at the University of Oregon, the Werner College Center Addition and Renovation at Western Oregon State College, and the Family Housing project (Old Mill Village) at Southern Oregon State College. The New Residence Hall at Eastern Oregon State College continues to maintain its construction schedule despite poor weather conditions. The efficient design will minimize construction costs and allow the college to provide comfortable, full-service living quarters to approximately 96 students.
Oregon State University has a number of projects underway: the Visitor Center, Dock Facilities, and Housing at the Hatfield Marine Sciences Center in Newport; the Valley Football End-Zone building; the Seafoods Research Lab and the Seafoods Education Center in Astoria; the Food Innovation Center building in Portland; the Forest Ecosystem Research building; and the West Dining Hall and West Residence Hall remodels.
In addition, Oregon State University officials report the Valley Library Addition and Remodel (a $40 million project) is progressing well since breaking ground in May of this year. The contractors made good use of a drier-than-normal summer and early fall for the massive amount of excavation and foundation work. The 147,000-square-foot, five- story addition on the north side of the existing 189,000-square-foot, six-story building is currently up to the second-floor level. The structural shell is expected to top out in early 1997 and the addition will be completed in late summer 1997. After that, work will begin on the phased renovation of the existing building. The renovation will be done two floors at a time, with all work complete in September 1998.
In addition to major projects such as these, there are many smaller projects and many capital repair/deferred maintenance projects underway.
(No Board action required)
CURRENT CAPITAL CONSTRUCTION PROJECTS
Balances as of October 31, 1996
($ in thousands)
|Expenditure Limitation||Unexpended Balance||
|SYS||Asbestos Abatement||GF||$ 2,062||$ 0||Complete*|
|OSU||Kerr Library||GF, Gift||2,080||1,579||Balance of Limitation Canceled|
|SOSC||KSOR Satellite Station||Federal, Gift||419||0||Complete*|
|SYS||Land Acquisition, etc||Various||440||203||Now Open|
|EOSC||Hoke Hall Addition||BF, Housing||2,500||0||Complete*|
|OSU||Envirn Computing Center||Gift||2,000||0||Complete*|
|OSU||Mitchell Gym. Rehab.||Gift||750||38||Now Open|
|SOSC||Campus Pedestrian Safety||Housing||235||45||Under Constr.|
|SOSC||Parking Expansion||Parking||150||43||Under Constr.|
|UO||Museum Natural History||Gift||1,570||1,570||In Planning|
|UO||N. Campus Relocation||Riverfront||2,225||2,225||On Hold|
|UO||Communication Services Bldg.||Auxiliary||5,200||4,760||No Activity|
|UO||Chemistry Lab Renovat.||Gift/Grant||1,520||871||Under Constr.|
|UO||EMU SELP||SELP||667||65||Under Constr.|
|PSU||Student Housing||Housing||19,040||17,494||On Hold|
|SYS||Safety Improvements||Various||200||200||No Activity|
|SYS||Deferred Maintenance||GF, XI-G Bonds||23,340||587||Under Constr.|
|SOSC||KOSR Improvements||Grant, Gift||450||450||No Activity|
|SOSC||Stevenson Union Addition||BF, Auxiliary||600||249||Under Constr.|
|SOSC||Visual Arts Complex||Gift||2,700||2,190||Part Under Constr.|
|OIT||Child Care Facility||BF||200||190||In Planning|
|OSU||Seafoods Lab||Grant, Gift||4,400||3,742||Contract Issued|
|OSU||Seafood Ed Center||Grant||1,995||1,856||On Hold|
|OSU||Pharmacy Lab Renovation||Gifts||850||850||Await Gifts|
|OSU||Kerr/Kidder Energy||SELP||1,371||1,306||Under Constr.|
|OSU||Kerr (Valley) Library Expansion, Ph I||Gift, XI-G Bonds||20,000||14,447||Contract Issued*|
|OSU||Lab Theater Renovation||Gift||750||70||Under Constr.*|
|OSU||Food Innovation Center||Grant, Inst, Rent||8,775||8,724||Await USDA CREES approval*|
|UO||Law Library Addition||Gifts||2,315||NA||Limitation Canceled|
|UO||Fac./Staff Child Care||Gifts, Fees||1,240||427||Under Const.*|
|UO||OIMB Add/Alts||Grant||1,500||1,500||Await Grant|
|UO||Gilbert Hall Add/Alts||Gifts||7,500||7,258||In Design|
|UO||Amazon Housing, Ph II||Housing||9,000||671||Under Constr.|
|UO||International College||GF/Housing/Lott||18,000||17,730||On Hold|
|PSU||Housing Rehabilitation||Housing||4,475||4,475||On Hold|
|SYS||Utility System Rehab.||Other||8,500||8,500||Open|
|SYS||Academic Modernization||Other||4,200||3,510||Some in Constr.|
|SYS||Campus Handicap Impr.||Other||1,300||1,027||Open|
|OSU||Kerr (Valley) Library Expansion, Ph II||Gifts/Bonds||20,000||20,000||Under Constr.*|
|OSU||Forest Ecosystem Res Lab||Fed/Gifts||19,746||19,746||Open|
|OSU||Memorial Union Renov.||Bldg Fee||2,650||739||Under Constr.|
|OSU||West Dining||Housing||4,855||4,650||Under Constr.*|
|OSU||West Hall Renovation||Housing||8,285||6,229||Under Constr.*|
|OSU||HMSC Visitor Center||Federal||5,500||2,906||Under Constr.|
|OSU||HMSC Dock Upgrade||Federal||4,200||723||Under Constr.|
|OSU||HMSC Housing||Other||1,100||969||Some In Constr.|
|OSU||Valley Football Ctr Add||Gifts||5,300||4,800||Under Constr.|
|WOSC||Training Center||Other||7,700||7,700||On Hold|
|WOSC||College Center Renov.||Bldg. Fee||2,250||2,013||Under Constr.*|
|SOSC||Art Facilities, Ph II||Gifts||3,065||3,065||In Design|
|SOSC||Family Housing||Housing||2,900||250||Under Constr.|
|UO||Law Center Library||Gifts/Bonds||9,400||8,856||In Planning|
|UO||EMU Safety||Bldg Fee||4,150||4,055||In Planning|
|UO||Family Housing||Housing||6,000||6,000||Ph I Under Const.|
|UO||Riverfront Business Incubator||Lottery||3,500||3,500||Await Funding|
|PSU||Urban Center||Federal/Lottery||5,500||5,300||In Design|
|EOSC||Residence Hall/Dorian||Housing||3,935||3,061||Under Constr.|
|PSU||Urban Center, Ph I||Bonds||20,470||10,442||In Process*|
* Indicates change in status since previous report.
Abbreviations: Inst.=Institution Funds; BF= Building Fee; GF=General Fund; SELP=State Energy Loan Program; Lott.=Lottery; HMSC=Hatfield Marine Science Center; CS=Computer Science