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Minutes of the
NIU Board of Trustees
FINANCE, FACILITIES AND OPERATIONS COMMITTEE MEETING
May 29, 1996
CALL TO ORDER AND ROLL CALL
The meeting was called to order by Chair Boey at 12:50 p.m. Recording Secretary Mimms conducted a roll call of Trustees. Members present were Trustees Robert Boey, Susan Grans, George Moser and David Raymond. Also present were Committee Liaison Eddie Williams, Board Parliamentarian Ken Davidson and President John La Tourette.
VERIFICATION OF APPROPRIATE PUBLIC MEETING
Confirmation of Open Meetings Act notification compliance was given by Board Parliamentarian Ken Davidson.
MEETING AGENDA APPROVAL
A motion was made by Trustee Moser to approve the agenda. The motion was seconded by Trustee Raymond.
REVIEW AND APPROVAL OF MINUTES OF APRIL 17, 1996
A motion was made by Trustee Grans and seconded by Trustee Raymond to approve the minutes of the April 17 meeting.
CHAIR'S COMMENTS
Chair Boey commented on the breadth and scope of responsibilities assigned to this committee. Not only is the committee to approve purchases, transactions and specific projects, but they have also been asked to share in the vision for campus planning - both short-term and long-term.
Chair Boey recognized UAC representatives Charles Larson and Jim Russell and thanked them for their cooperation in meeting with Dr. Williams to provide valuable input regarding the agenda for this meeting. The Chair also recognized Ryan Eggert, the new president of the NIU Student Association.
UNIVERSITY RECOMMENDATIONS
FY97 Capital Project Overview
Agenda Item 6.a. - Residence Hall Master Plan - Phase I
Proceeding with the meeting, Chair Boey called on Dr. Williams to comment on Agenda Item 6.a.
Dr. Williams gave an overview of capital project planning efforts being initiated on campus for FY97 and beyond to meet the needs of NIU programs, staff, faculty and students. The overview is to make the committee aware of planning efforts underway, so that they can provide input and guidance as these projects progress.
Dr. Williams then introduced two architects from Solomon Cordwell Buenz & Associates - John Lehay and project manager Mike Lowe - to give an overview of the Residence Hall master Plan-Phase I. Also, present were Jim Bryant, who served as the NIU project manager; Barbara Henley, vice president of student affairs; Chika Nnamani, director of housing; and other staff to respond to committee questions.
John Lehay began the presentation saying that in looking at the residence halls, they made a physical assessment of the different technical and architectural aspects; reviewed the needs of the student body, speaking with students, faculty, administration and physical plant people; and evaluated the relationship of the west campus to the central campus.
This plan is the result of a combined effort to address infrastructure issues, heating and air-conditioning problems that exist in the facilities, as well as quality of life issues for students. Phase I was determined to be "C" and "D" Towers of Stevenson with the connecting common area. Plans concentrated on designing a variety of housing options. Modules were developed to fit students as they move through their academic careers. Community lounge spaces and windows were added on each floor. The dining area was taken from the more traditional set up to something called "scattered servery" (which is like a food court) that would be one large dining room which could be divided off at nonpeak times. There is enough space, Mr. Lehay said, to have things like mini marts, a lecture hall to add a living/learning center component, game rooms, weight rooms, exercise rooms, laundry rooms, dedicated rooms with specific functions that tend to bring people together. The goals would be to provide a more residential character and to better support the whole university program.
There are also landscape changes proposed in Phase I: elaborating on the entrance canopy, removing pavement and providing more planting areas, painting the outside of the concrete structures to soften them a bit and give the whole area a more residential character.
Mike Lowe went over the schedule and budget for Phase I. The design and contract document phase is seven months, bids and permits take two months, and construction is estimated to be 14 months. All of Tower C and half of the common area will be done first. After moving residents from Tower D to Tower C, all of Tower D and the other half of the common area will be completed. The entire process, including the 14 months of construction, should take a little less than two years. The construction budget for Phase I is estimated at $15 million which includes a ten percent design and construction contingency. An additional cost of $8.25 million was estimated to complete the other two Stevenson towers if they are included in this renovation project.
Trustee Grans asked how comfortable Solomon Cordwell Buenz felt about their total cost projection for the renovation. Mr. Lehay said they felt very comfortable because CCS, a company that does construction cost estimating, worked with them on the conceptual estimate, and past experience has shown that CCS' cost projections are very good. Also, a running estimate process would be used through subsequent phases so that cost estimates can be reconfirmed.
Chair Boey asked about security in the renovation design. Mr. Lehay said that one of the key items in the plan was a one-point security design for the area.
Agenda Item 6.b. - Center for University Resources for Latinos and Latin American Studies
The Center for University Resources for Latinos and Latin American Studies are now housed in separate locations. This is a plan to unify the space envelopes in which these programs operate. The architectural firm of Wendell Campbell and Associates was engaged to provide a full analysis of the existing space now occupied by one of the programs. Dr. Williams introduced Mr. Wendell Campbell who is president and founder of Wendell Campbell and Associates. Wendell Campbell and Associates worked with the university in the design and development of the Center for Black Studies. Mr. Campbell introduced Mr. Dan Franks, project architect for both studies.
Mr. Franks began the presentation with a review of the Center for Black Studies, stating that the program is similar for the Latino Studies project. Both buildings consist of a meeting room, lecture hall, office spaces and public facilities and need to provide handicapped accessibility. The existing University Resources building is a 1940s, ranch-style residence that_s been converted to office space. The pea gravel roof is in bad condition. The overall structural condition, however, is fairly good.
The basement space is about 2,000 square feet and the upper level is about 2,000 square feet. A skylight will bring light down into this area. Planned for the basement are a new lecture area and a lit foyer area. Some of the low ceiling areas will be used for storage.
The ground floor plan will include a reception/secretarial area which would be shared by both groups. The facilities will be divided with Resources on the right-hand side and Studies on the left-hand side with some shared facilities in the basement. The skylight will bring light into this central area of the first floor plan and the basement area. There will be central shared spaces, such as filing, copying, etc. There_s a common conference area on the upper level and a common library in the basement. The parking area has been relocated, providing two spaces for handicapped on the west side.
Trustee Grans asked if the building was salvageable or if it would be better to put up a new building. Mr. Franks stated that the building is structurally salvageable. Dr. La Tourette stated that the cost of constructing a new facility would be approximately 50% greater. Chair Boey inquired about the project time frame. Mr. Campbell stated that the design phase would be three months because of the complexity of the renovation and that construction would take from six to eight months. The project, he said, should take approximately a year from start to finish.
Agenda Item 6.c. - West Campus Master Plan
Dr. Williams stated that a master plan is being developed for the west campus quadrant. The plan is to deal with pedestrian and vehicular circulation as well as the siting of some potential facilities in that quadrant. He stated that an RFP has been sent out requesting proposals from planning organizations and architectural firms to do a master plan.
Agenda Item 6.c.1. - Recycling Center
Among the specific projects that could be located on the west campus is a recycling center for the campus. Jim Bryant of NIU's Architectural and Engineering area gave a quick overview of the present recycling center. The recycling center was converted from a storage shed which housed lawn mowers and snow blowers about ten years ago. Center personnel do not have the proper equipment for recycling and working conditions are less than favorable, especially in the winter. Bryant stated that the Student Association and the head of the campus recycling program look forward to any improvement at this facility so they can begin to deal with the solid waste reclamation plan mandated by the State of Illinois.
In answer to Chair Boey's question, Mr. Bryant said the center has been a break-even organization. Part of the recycling study will be the economic feasibility of continuing with the existing materials - paper, glass, aluminum - and the possibility of expanding into other materials.
Agenda Item 6.d. - Child Care Center
Dr. Williams stated that discussions are underway regarding the potential of a campus child care center. The campus has a limited child care service which is inadequate in terms of space and the number of children that can be accommodated. The Center is primarily supported through student fees and user fees. A committee has been formed to address the potential for a either a major remodeling project or the possible need for a new facility to accommodate child care services. The results of that committee study will be reported in early Fall.
President La Tourette pointed out that NIU's student body is increasingly more nontraditional - students who are older than the usual 18 to 22 year-old category of undergraduates, students who are single parents, students who are couples with children. Also, there is concern about child care facilities for staff people, particularly those who find it difficult to pay the commercial child care rates. The University has been subsidizing this operation by making space available. Between student fees and user charges the facility has been more or less breaking even. It is, however, very limited. The program can only accommodate 35 children and always has a very long waiting list. Concerns have been expressed by both staff and students about the need for additional child care facilities. We would need an additional source of funds for a new building or to expand the existing facility to allow it to operate within a range of charges which are affordable for both student and staff needs or uses.
UAC representative Charles Larson stated that many parents are handling the problem by taking the children into the classroom. He stated that this is not really the best way to conduct higher education. Some teachers are very open and willing, he said, but there are certain classes that cannot accommodate young children.
Trustee Boey stated that input from his own company staff is that the child care rate is now between $75 and $90 a week, per child.
President La Tourette asked Dr. Anne Kaplan for comments on the child care situation. Dr. Kaplan stated that this year summer flex time was begun a little earlier so that staff could take advantage of child care while it was available. But looking around the University, she said, it_s clear that some staff, because of child care schedules, simply take a vacation day on Friday so that they can stay home. They must be replaced, and the university then has to pay for a vacation day plus a replacement.
Trustee Raymond asked if the consultants will look at what the needs are in terms of numbers and location of the child care facility. Dr. Williams answered that the consultants will be asked to analyze university needs of faculty and staff as well as students. The consultants will be asked to look at the flexibility of what we can offer for part-time students as well as infant care.
Agenda Item 6.e. - Illinois Association of School Business Officials Joint Facility
The Illinois Association of School Business Officials (IASBO) has been associated with Northern Illinois University for over three years occupying space in the College of Education. This program is in need of additional space and the College of Education would like to have the space that IASBO is now occupying. Discussions are underway with the IASBO board to develop a joint facility where space would be shared by NIU and IASBO. Dr. Williams asked Patrick Bell for a brief overview.
In April, Mr. Bell said, a joint committee of representatives from NIU and IASBO interviewed architectural firms and selected Bradley and Bradley of Rockford, a full architectural and engineering firm that has been in business for over a hundred years and specializes in school architecture, primarily in the Northwest.
The design approach is to organize two office suites around a core of space that is shared commonly. Both office suites are about 2,500 square feet and the center common area would be approximately 2,000 square feet. The design will include university standards for office sizes, building materials and mechanical, electrical and plumbing equipment.
In answer to Trustee Grans' inquiry, Dr. Williams said that IASBO receives its funding, primarily, from statewide membership dues.
To give some background, President La Tourette explained that NIU's school business management program, at the master's level, is the largest in the state. Those who want to go on for the Ed.D. can do so within the area of educational administration. IASBO also manages short-term funds for school districts. They have a great deal of strength and are closely affiliated with NIU. Currently, IASBO is providing funds in the amount of $100,000 per year for a named professorship in the NIU College of Business.
NIU would like to enter into an agreement with IASBO for the construction of the facility, which would be amortized over a period of time, and then donated to the university.
Dr. Williams explained that IASBO would build the building and NIU would provide them with a ground lease. NIU would also lease the space in the building over a term of 20 to 25 years. At the end of 25 years, ownership would revert back to the University.
Agenda Item 7 - Capital Project Funding
Dr. Williams gave the committee an overview of ways in which NIU funds capital projects.
There are two major sources by which projects are funded at Northern Illinois University. One is through state appropriations. The state provides appropriated support for capital projects at universities in direct support of instruction. In these cases, funds are appropriated directly to the Capital Development Board on behalf of the institution. NIU has a very small amount in its operating budget for capital repairs and maintenance which is also available in support of instructional facilities on campus. NIU can also support facilities through the revenue bond authority that the Board of Trustees has under state statute. This authorization allows NIU, Dr. William said, to build noninstructional facilities, make improvements to the campus and fund those improvements through the issuance of revenue bonds. In this case, the project is totally under the jurisdiction of the University.
The Board of Trustees has the power to issue revenue bonds in support of the projects we discuss. Revenue bonds are a key aspect of funding which the Board can use for some of the projects discussed. A revenue stream must be available through user fees, direct student fees or generated income from activities in the facilities themselves. Right now, we have four major areas in our revenue bond system: the residence halls; the student center; recreation facilities; and the parking facilities.
Trustee Raymond inquired about the funding of the residence hall project. Dr. Williams answered that as many projects as possible will be put together in one bond offering, to keep down the cost of issuance. Dr. La Tourette explained that it would be prohibitive in terms of issuance cost to issue revenue bonds or certificates of participation for small projects in the $500,000 to million dollar range because the percentage of the proceeds going to the cost of issuance would be extraordinarily high. So, it is better to package a number of smaller scale projects like the recycling center, the recreation fields, the Latino Center, and even the child care center, in one package with the residence hall project. It is expected that the university will be able to come before the committee with specific projects and a specific bond offering in the early Fall.
The university has a bond rating of AAA, which is the highest for insurability, by both Moody's and Standard and Poor's.
In answer to Chair Boey's inquiry regarding the renovation of the library, Dr. Williams said that it is a state-supported project and would not be a part of the revenue bond projects.
Agenda Item 8 - Periodic Status Report on Capital Projects in Excess of $250,000
Capital Development Board projects and Northern Illinois University projects in excess of $250,000 were summarized indicating total budget, source of funding, architect/engineer in charge and current status.
TRANSACTION APPROVAL
Agenda Item 9.a.1. - Contract Renewals - Printing Services - Printing Equipment
The university requested approval of three lease/purchase programs for Printing Services operations were presented to the committee for FY97. Trustee Grans made the motion to approve; Trustee Raymond seconded.
Agenda Item 9.a.2. - Contract Renewals - Printing Services - Copier Equipment
The University has found it cost effective to contract for copiers throughout the campus and has unified them under a general contract. Approval of the renewal of multiyear copier equipment agreements was requested for FY97. Trustee Moser moved approval; Trustee Raymond seconded.
Agenda Item 9.b. - NIU Foundation Professional Services Contract - FY97
The Northern Illinois Foundation contract supports the fund raising services and activities provided by the Foundation on behalf of the university. This contractual agreement is in accordance with the Legislative Audit Commission Guidelines. The contract amount will be offset by the Foundation payment to the university for personal services, fringe benefits, facilities, indirect costs and program expenditures to meet the contract obligations. Tom Mitchell, Vice President of Development and University Relations, stated that, since 1983 the NIU Foundation has been involved with the University by a contract required by the Illinois Auditor General's Office. The contract, he said, primarily supports the fund raising services and activities of the Foundation for the university. Private gift support over the last few years has grown at an unprecedented rate. The university requested approval to renew the NIU Foundation contract for FY97 at a cost of $325,313. Trustee Raymond made the motion; Trustee Grans seconded.
Agenda Item 9.c. - International Programs
Dr. Williams indicated that Northern Illinois University has one of the largest international programs in the country. The university sought to renew the operational authorization annually granted to the International Programs division to disburse funds in connection with foreign study programs offered through the division. Students from around the country sign up for the foreign studies programs at NIU and then go overseas to be involved in these various programs of study. These students are required to make payments to the International Program Division pursuant to contracts providing transportation, related administrative overseas instructional services, room and board and local tuition where appropriate. Traditionally, Northern has provided an expenditure authorization for the foreign studies program. The requested Board action would provide advance authorization for FY97 disbursements of up to $2.2 million. A summary of all expenditures over $250,000 would be reported in detail to Board of Trustees on a periodic basis. A motion for approval was made by Trustee Moser and seconded by Trustee Grans.
President La Tourette stated that as many as 800-900 students from across the country come through this program each year. He said this is a very unique service because there are very few schools in the country that can guarantee transferability of credit back to the student's home institution.
Agenda Item 10.a. - Capital Project Approval - Swen Parson Computer Center Air Conditioning and Flooring Upgrade
Swen Parson Hall has a raised floor which has deteriorated and an air conditioning system which is not adequate. Chair Boey commented that, due to the age of the institution, this committee would probably see more of this type replacement in the coming years. Board approval was requested for a project budget of $398,600. Trustee Moser made the motion; Trustee Grans seconded.
Agenda Item 11 - FY96 Appropriated Line Item Transfer
State statute allows two percent flexibility in transferring funds between line items without legislative approval. The university is required to obtain the approval of its Board, and concurrence from the Board of Higher Education and the Bureau of the Budget. A transfer of $350,000 was requested from Contractual Services to meet requirements for Medicare and commodities. Dr. Williams noted that the state has provided some funding for this, but it is not adequate to meet the actual costs incurred by the University. Of the requested funds, $200,000 is to support Medicare and $150,000 is to support commodities. Trustee Raymond made the motion; Trustee Moser seconded.
Agenda Item 12 - Report on Income Fund Legislation
Dr. Williams asked Kathy Swanson, NIU's government liaison, to give the committee a progress report on developments in the FY97 appropriation process.
Ms. Swanson said that House Bill 2836, regarding income fund legislation, which would allow state universities to retain tuition revenues paid by the students, passed the house and Senate. The bill has gone to the Governor for signature. Explaining the income fund issue, Ms. Swanson said that approximately 39% of our budget comes from State-appropriated general revenue funds and 19% is generated from income fund revenue. This amounts to approximately $46 million annually.
Higher education maintained it's original budget request. Transition funds were retained. The Illinois Institute on Entrepreneurship Education was transferred from Northern Illinois University control to the Illinois Community College Board at the university's request.
Due to Representative Wirsing's efforts in the House and Senator Burzynski's efforts in the Senate, NIU obtained a $976,000 appropriation for the build-out of the Founders Memorial Library basement.
The committee will be notified by mail of the next meeting date.
Chair Boey asked for a motion to adjourn. The motion was made by Trustee Moser and seconded by Trustee Raymond.
The meeting adjourned at 2:30 p.m.
Respectfully submitted,
Sharon M. Mimms
Recording Secretary
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