February 18-19, 2004 Meeting Minutes In attendance (for part or all of the meeting): Albany - Kathryn K. Lowery & Leo F. Neveu; Alfred - UTC - Daniel J. Neverett; Alfred - Ceramics - Brice M. Weigman; Binghamton - Anthony A. Ferrara & James VanVoorst; Brockport - Lou Spiro; Buffalo Center - Mike LeVine; Buffalo College - Stanley Kardonsky; Canton - Carson E. Smith; Cobleskill - Gary Miller; Cornell Statutory Colleges - Richard J. Duell; Cortland - William E. Shaut; Environmental Science & Forestry - Mark P. Fennessy; Farmingdale - Richard J. Hume; Fredonia - Tracy S. Bennett; Geneseo - Kenneth H. Levison; SUNY Downstate Medical Center - Ivan M. Lisnitzer; SUNY Upstate Medical University -Steven C. Brady; Morrisville - John Angerosa; New Paltz - Johanna D'Aleo; Old Westbury - Deidre M. Dowd; Oneonta - Leif S. Hartmark; Optometry - David A. Bowers; Oswego - Nicholas A. Lyons; Plattsburgh - John R. Homburger; Potsdam - David Kirwan; Purchase - Roseann LoParrino & Judith Nolan; Stony Brook - Richard L. Mann; Utica/IT - Bruce Reihel; System Administration - Jim Campbell; Elizabeth Capaldi; Dave DeMarco; Kellie Dupuis; Andy Edwards; Ed Engelbride; Daniel Esposito; Ed Miller; Dave Richter; Dan Sheppard; Brian T. Stenson & Pat Wiater; Research Foundation - Frank Gabriel & Chris Wade; State University Construction Fund - Robert Haelen; Phil Wood; Guests - Julia Filippone; Mike McCormick; JoAnn Navarro; Jim Pepe; Bruce Reichel; George Stooks Wednesday, February 18, 2004 President David Bowers called the meeting to order at 1:02 p.m. David welcomed everyone and introduced Dave Richter as the first speaker. Vice Chancellor's Report - Dave Richter Strategy and where we are going - 3 year strategy: 2003-04 - 1st year - take massive cut 2004-05 - 2nd year - no reduction in State support 2005-06 - 3rd year - regularize tuition increase - predictable but modest Most agencies have been cut 5 - 10% in the Executive Budget. SUNY is $45 - $90 million down. Series of financial plan initiatives to be used to compensate for not cutting: Convert campus operating dollars used to pay COPS payments to offset $37 million in fringe benefit assessment Chancellor's address has emphasized that SUNY needs $50 million - message is that SUNY is very tight. We cannot take further cuts and sustain operations without layoffs. Cannot sustain or improve quality without real increases. No one recognizes or acknowledges the concomitant effects of enrollment growth. Chancellor is using specifics to relate to SUNY's financial condition. Presidents should speak to Legislature about reallocation loss used as a "hold harmless" strategy in 2003-04. The Chancellor has introduced a predictable tuition increase strategy with the understanding not to reduce State support and ensure that negotiated salary increases would be funded. The Chancellor is attempting to put SUNY's condition in Context of quality, full time faculty and Scholarships. There is $7 million in 2004-05 appropriation to increase tuition for graduate and out-of-state students Capital Plan: What we see is very definite and the Legislature has been silent There has been a great deal of pressure to accept capital adds by Legislature Presidents should talk more about core operating budget than All funds Be careful of fees; they continue to be very sensitive and controversial The proposed 3-for-1 match in Capital Plan doesn't work. System believes there was $100 Million earmarked for SUNY in the $350 million set aside, and we want our share Important to us not to have a formula-driven capital plan; we wanted economic development, one-time and technology projects as general initiatives and justification Brian Stenson/Dan Sheppard Brian indicated Dan Esposito would have a presentation after Brian's remarks. Brian listed some "Would like to's": Achieve the offset fund $19 million; it includes a provision for tuition increase for graduates and non-residents totaling $7 million; a fringe benefit increase of $8.4 million ((to $42.M), increase DIFR fringe benefit rate from 32% to 42% $4.2 million in Construction Fund redirected to offset vs. Dormitory Income Fund (Construction Fund to offset is not a good thing) Governor slipped in HESC increase of $16.9 million based on direct loan activity. HESC seeking support for campus participation (8 campuses currently participate). Anticipate pressure. SUNY Financial Plan - Big imponderable is the Chancellor's request for $50 million. Would help redress this year's redistribution (hold harmless) action. Timing scenario for New Budget Model: Chancellor requesting new allocation model be designed by May/June Sponsored Research & Contracts differentiation needs to be recognized in allocation Brian suggested a conference call to talk about College Fee $4.2 million. It appears to have no effect; cuts $19.0 Million offset by $4.2 million and not State support. Dan Esposito - Revolving Loan Program Dan presented background and history. Any debt commitment is against available reserves. Terms are negotiable (years and amount). Ed Engelbride/Ed Miller - Fire Safety Training Update Ed Engelbride handed out materials - NYS Guidelines/Fire Safety Training. Crosswalk training - there will be film/video training available. At this time they are guidelines, not mandates. Ed and Ed will be providing training - "train the trainer". 3/24 - Windam Hotel in Syracuse to organize strategies and plans for training schedules Trying to establish statewide regional sites for ongoing training and certification President's Report - David Bowers We have lost some members: Greg Mitchell at Brockport; Lou Spiro is filling in for Greg Barbara Larson at Delhi returned to previous campus; Ken Armstrong is now filling in for Barbara We are fortunate to have representatives from PPAA who will be joining the Executive Committee for discussions this afternoon and tomorrow to help refocus and recharge them with goals and objectives. PPAA members in attendance were: Mike McCormick JoAnn Navarro Jim Pepe Bruce Reichel George Stooks No speaker tonight. Kim Cline really tried. Marti Anne Ellermann will not be able to attend tomorrow; Andy Edwards will fill in for questions and answers. Secretary's Report - John Homburger John Homburger asked for a motion to approve the minutes of September 17 & 18, 2003 and November 19 & 20, 2003 (2 meeting dates). Motion to accept by Ken Levison; seconded by Ivan Lisnitzer. Passed. John also extended his thanks to Tracy Bennett for writing and distributing the November meeting minutes. Treasurer's Report - Brice Weigman Account Summary: Share Balance: $31,381.76; Draft Balance: $215.00. Sector Meetings Comprehensive & UTC's - Tracy Bennett Local entity contracts status still ambiguous and no apparent movement. Status of Student Associations still unclear. Fee increases need flexibility to request salary, fringe benefit and general contract increases. 1% cap on enrollment is still in place but each campus can negotiate their own enrollment increase (with justification). OAP - billing between campuses is problematic and needs clearer procedures and guidelines. It was suggested that some follow-up work be taken in this area as it still remains very entrepreneurial and operates outside our normal policies and procedures. University Centers & Statutories - Tony Ferrara Rehashed issues related by Dave Richter. What are the next steps of BAP? Can BAP really be adapted to the unpredictable and inconsistent variables in such a politized Budget environment? Everyone needs to advocate for the $50 million legislative increase. Scholarships - Institutional sustainability is a concern? Status of ASC contracts, foundations, and alumni associations and fiscal controls and procedures for student associations. All appear to be at a standstill; no direction - no action. Ken to follow up on the Crane Report. Has it been published? Will it be used in any way to influence future initiatives and/or issues? Adjourned 4:26 p.m. Wednesday, February 18, 2004 - Executive Session Meeting with PPAA members Mike McCormick, Jim Pepe, JoAnn Navarro, Jim Pepe, Bruce Reichel, and George Stooks. Ken Levison Work with SUBOA subcommittee to obtain real time financial status on projects. Work to enhance communication link with the Fund and PPAA. Sharing of Best Practices needs to be more broadly publicized. Energy procurement is a continuous issue regarding a significant resource. Disaster Preparedness. EPA issues raised in the completed audits need to be shared and discussed. Potential shared professional development programs should be identified and supported. The PPAA view themselves as a stand-alone organization vs. a standing committee of SUBOA. Thursday, February 19, 2004 Legal Affairs Report - Andy Edwards Dave began the meeting by introducing Andy Edwards and Rose Marie Scrodanus, who spoke on behalf of Marti Anne Ellerman. Andy introduced Rose Marie, who is SUNY's counsel, specializing in contracts. Rose Marie presented a checklist for EO 127 chart generally used when dealing with vendors, regardless of purchases, and if you don't anticipate (within 12 month period) exceeding $15,000. If you know you will exceed, the EO 127 must be completed. Current legislature continuing a review of EO 127. A bad accident occurred at a campus when an assistant coach crashed a van. This led to implementation of the LENS Program, which allows business officer control as to who drives campus vans. Each driver of a State vehicle must sign up and an automatic notice is issued to campus designee from the Department of Motor Vehicles. In addition to vehicle operator, two procedures from OGS were discussed. When vehicle is part of a State fleet, it does not have insurance coverage but, rather, is covered under the New York State self-insurance program. However, if campus has leased a vehicle (vans or sedans) it must have an OGS insurance requirement - car rental vendors must have an approved State insurance company. Leased vehicle vs. short term rentals require the following: Vehicle ID Make/Year Andy indicated that each Foundation contract should be initiated and signed (executed) at campus level. Proceed with executing Alumni, Foundation, CAS contracts in lieu of State OSC approval - "something is better than nothing". Auxiliary - Pat Wiater All real estate/speculative real estate properties are being recommended for transfer from the Auxiliary Corporations to local foundations (there are a number of concerns related to this action). EPA's first report avoided $1.5 million in fines. MOU for collections - clarification of debt referred to Attorney General has been discussed extensively. Dialogue is under way to develop a standard transmittal for A/G submittals as well as addressing many outstanding debt procedures and standards for A/G collections vs. private collection agency dollar thresholds. SUCF Report - Phil Wood/Bob Haelen Budget after 30-day amendment: Provided funding for Levin Institute (reallocated, not added, approximately $30 million - capital funding). SUCF wants to review MR&R funding for policies on useful life. Lump sums reduced to $25 million. Last time $45 million in emergencies and $5 million in legal. Language in legislative bill still has flexibility. Next steps for Capital Plan: We need to review and evaluate more projects Be better at setting project scopes and budgets Manage projects within tighter time lines Think about using funds for consultants to scope and budget projects - it is core to procurement Look at projects currently in design - get them ready for bid $100+ million currently ready to bid in SUNY inventory Address Advancing new capital funds to kick start projects in 2nd 5 Year Capital Plan. Clarify MR&R funds and sources. Problems with year-end processing; things slow down in March - hard to get contracts. We will fall into emergency appropriation for new year; example: old funds only but can't let new contracts. Going to try to push new contracts with old appropriations. In order to help campuses the Fund will be handing over projects for processing contracts in order to expedite approval. SUCF focus is critical maintenance; 86% of dollars going towards critical maintenance. The Fund needs to review what MR&R monies have been spent on in the past. Source for MR&R will be internally identified and allocated in the 2nd 5 Year Capital Plan. $10 million will go to campuses in 2004-05. Matching funds - Matching concept not ours. We were in for $100 million. Chancellor indicated in testimony that the 3:1 match will not work. Shift has happened from hard dollars vs. bonded dollars for MR&R support. Shift will be from any unallocated balances to help support MR&R. Contingency to start projects vs. annual allocation is still an issue. Other updates: SUCF had asked for 20 additional positions. This request was not supported and continues to be capped @ 113 positions and capped at appropriation level. Positions were asked to come off appropriation. Planning to use consultants (i.e.. hiring CM's to mitigate staffing/project development pressure. Plan to submit to OSC. Term consultant agreements (up to $1,000,000) Use of CM's willing to participate on a regional basis CM at risk - does not feel it meets the statute - holding to see if there is legislative support Job order contracting mechanism ($100,000 imposed minimum) plan to manage workload Mission Review II - disconnected allocation of dollars with campuses. Circulated Capital Advisory Committee recommendations for template on using campus lets. Awaiting return of comments. Elizabeth Capaldi - Vice Chancellor and Chief of Staff Elizabeth indicated she is the Chancellor's Chief of Staff and will be coordinating activities among the senior officers in his absence. She emphasized that she has a campus perspective and intends to rely on it. The current Vice Chancellor and Chief of Staff's domains include the following: Academic Government/Legislative Enrollment Finance Enrollment crosses all areas and it is important to coordinate plans and efforts. When lobbying, the Crane Report should be used to assist with increasing awareness. Enrollment should have a context in what is happening in education in New York State and nationally. Office of Strategic Planning will be establishing a clear message/clean plan to help develop an overall aim. Government Relations - we need to be sure what we are trying to communicate. SUNY needs to develop a national agenda. She will be developing a portfolio of information on SUNY and will share it. The Crane Report will be presented at next President's Board Meeting. Government Relations - Jim Campbell Handed out 2004 Legislative Update. Hot Program issues: Hazing will be woven into Article 129, plus alcohol-related issues Foreign students - Senator LaValle is trying to increase tracking requirements at State level in addition to (SEVIS) requirements. 4-Year tuition guarantee sponsored by LaValle - perceived to be playing positive. Education Committee in Assembly has not met to discuss issues. Continued dialogue on privacy act - more to come. Committee Reports - Tracy Bennett A/B/B - Jim VanVoorst Becky to submit formal report. TAP issue - how do we manage it? The new Manage system (SMRT Program) is well under way (training was excellent - train the trainer). Start dialogue with SUCF for help - obtain better reporting (financial) - will be setting up task group. Discussion on allocation distribution and expenditure distribution can be solved with better communication. Recharge Committee will be active in January through June - addressing issues and will move through A/B/B Committee. Moved meeting to week after Business Officers Association Meetings. David asked if any movement to invigorate the group and reduce the sense of disconnect had occurred. Looking at team approach to projects ACS - (for Mike Lewis)/Julia Filippone- Executive Director at Albany Julia indicated that the organization meets 5 times a year; three time during fall/twice in the spring. The first meeting was at Geneseo on food vending and meal plans. The second meeting in Albany will address marketing initiatives to improve image and awareness of Auxiliary Services. Have also met with Book Store managers for discussion of issues and challenges. In April will meet with Human Resources professionals to discuss topics. For the past two years, each meeting has had a professional development component where "best practices" are shared among the campuses. It is a very positive and productive activity. Have worked hard at implementing model contract (local entity) and changing local contracts. Concerned with the effect in moving real estate from ASC's to Foundations: Liability issues Economic issues What is the financial impact on balance sheets? Unclear as to motive/objective Awaiting approval of model contracts and OSC's timing for approval. Invited a SUNY Risk Management Assessment representative to help understand the initiative and clarify expectations. Residence Hall Committee & SICAS Report - Tracy Bennett Spring Meeting in April - has asked for agenda items. Concern has been expressed over impact of change to college fee and fringe benefit increase (financial impact). Called for volunteers to sit on SUNY Policy Committee; tentatively meeting in March. SICAS will be meeting in two weeks to review recharge budget for 2004-05. ITEC - Johanna D'Aleo Reviewing proposed budget information for 2004-05 (handout of budget distributed). Dave Demarco has about a $400,000 reserve on hand to help with cost increases and potential initiatives. SUNY Electronic Buying Group: Review and some start-up problems; working them out. 14 campuses are currently participating. Nominating Committee David asked Ivan Lisnitzer to report on Nominating Committee. Goal to provide slate of officers at April meeting. Anyone interested should contact Ivan. PPAA Discussion - Levison/Navarro David introduced Joann Navarro, Director of Operations at Binghamton and chair of PPAA to say a few words on behalf of the organization. She introduced George Stooks, Jim Pepe, and Mike McCormick. PPAA was organized in 1988 as a formalized structure (by-laws). Typically there is a business meeting in Saratoga in January with invited speakers and a formal program. Summer conference rotates through New York State. New York is hosting ERAPA Conference this year. Sub-Activities of PPAA include: Supervisor Training Management - Janitorial goods, etc. Considering the establishment of a scholarship - $400 - $1,000 offered to SUNY schools Benchmarking Committee (organization: staffing cost issues) Shares successes/failures/best practices Natural synergy to develop relationship with SESHA and University Police Ken Levison Comments PPAA is a standing committee of SUBOA and has only met once in the past 15 years. Discussed the following issues: Work with SUBOA and the Dormitory Authority to develop meaningful, real-time reporting on construction projects and campus programs. Create a communication link on successful energy conservation programs, perhaps in conjunction with SUCF. We hear of project failures, but if there are successes, we could all benefit. Work with SUBOA and SUNY on evaluating and developing a more effective energy procurement process. What are campuses doing in developing disaster and recovery plans in regard to physical facilities? What EPA type issues are being raised through the audits? Are there general facilities-related programs or actions that should be taken for the future? What kinds of coordinated programs can we do in career ladders/professional development? Working together will give us a much greater chance of creating the kind of policies, procedures and support systems we all can benefit from. In addition: Issues of standards and interpretation of codes Look at +/- `s of what an Office of Capital Facilities would provide Allocation policy for capital funds needs to be developed. Job descriptions and restrictions of 30 - 40 year-old job specifications. Emphasis on trying to find out the important issues Ken suggested sending out a survey to identify priorities Who has reporting ownership for facilities? Research Foundation - Frank Gabriel, Vice President for Finance Introduced Chris Wade, Comptroller, Assistant Vice President - Finance Office. Introduced Michael Bartoletti, Director of Applications Development & Customer Services - Information Services. Gift Policy and Procedure - Research Foundation has always been able to receive gifts. January Board has approved several changes to procedures: Provide support role, not be in competition for managing gifts, trusts, etc. Changed guidelines for planned giving instruments/charitable remainder trusts and annuities to help facilitate this aspect of advancement where it is practical and cost effective. Cost will be paid by users based on actual cost. Investment management services are available for campuses that want to use the Research Foundation's management expertise. Fringe Benefits - In October next year were projected to go to 35% from 31%. After the review, fringe benefits will go to 33% for next year (2004-05). The deficit +/- @ $3million still needs to be recovered from prior year fringe benefit costs. Mike Bartoletti spoke to Information Services and distributed an updated handout. Mike indicated the RF System SUCKS in the following areas and needs to be addressed as soon as practical: Hardware upgrade Make balances more accurate Make data more accessible Modify approach to software Information Technology Update - Dave DeMarco Dave handed out a summary presentation highlighting goals. David Bowers Reminder - next meeting April 21 & 22 at the Hilton Garden Inn. Meeting adjourned at 12:08 p.m. Respectfully submitted, John R. Homburger Back to Minutes/Reports