COLLEGE OF ENGINEERING

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.

BOARD ACTION:

AMENDMENTS TO 1997-2003 CAPITAL CONSTRUCTION BUDGET REQUEST

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

None.

Summary

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.

BOARD ACTION:

SEMI-ANNUAL REPORT ON CAPITAL CONSTRUCTION PROJECTS

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)
College/ University

Project Name


Fund Source
Expenditure Limitation Unexpended Balance

Project Status
1989-1991 Projects
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*
1991-1993 Projects
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 Longhouse Gift 545 545 No Activity
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
1993-1995 Projects
SYS Utility Renovation Various 1,726 1,065 Open
SYS Safety Improvements Various 200 200 No Activity
SYS Academic Modern. Various 600 235 Open
SYS Handicap Improvements Various 939 572 Open
SYS Land Acquisition Various 750 35 Open
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.
SOSC Handicap Access Inst. 72 4 Complete*
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
1995-1997 Projects
SYS Repair/Renovation GF/Bonds/Other 28,750 17,334 Under Constr.
SYS Safety Improvements Other 650 650 Open
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
SYS Seismic Improvements Other 1,000 1,000 Open
SYS Land/Various Improv. Other 1,000 352 Open
SYS Facilities Planning Other 500 500 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 Family Housing Housing 8,400 8,400 Open
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.
OSU Greenhouse Lottery 319 319 On Hold
WOSC Bus./Math/CS/Forensic Other/Lottery 3,500 3,500 On Hold
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 Longhouse Other 650 600 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
PSU Housing Rehabilitation Housing 2,000 2,000 Programming
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