Download FINANCIAL & PHYSICAL PLANNING MINUTES April 18, 2006

FINANCIAL & PHYSICAL PLANNING
MINUTES
April 18, 2006
Present:
Jean-Guy Beliveau, Matthew Carlson (for Arthur Kuflik), Cynthia
Forehand, Albert Joy, Stephanie Kaza, Bud Meyers, Deb Neher (for Don
Ross), Tom Visser, Ge Wu, Justin Joffe
Absent:
David Harrison, Bob Parsons, Corey Teuscher
Guests:
Mike Gower, Lani Ravin, Linda Seavey, Bob Vaughan
Chair, Tom Visser, called the meeting to order at 9:17am in the Faculty Senate
Conference Room (327 Waterman).
1. Minutes from the 3/28/06 meeting were accepted.
2. Committee Updates

Educational Technologies – Cindy Forehand, chair of this committee’s
Educational Technologies Subcommittee, reported voting is currently underway
to determine if the subcommittee will be elevated to a full Faculty Senate standing
committee. The subcommittee addressed the issue of preparedness for a potential
bird flu pandemic at its last meeting. Topics discussed included the potential for
the continuation of coursework through online/distance learning, and the need this
presents to assess current capabilities.
3. Capital Plan Update
Michael Gower joined the meeting to provide the committee with an update on the
Capital Plan. He distributed a handout which was presented to the Board of Trustees
at their last meeting, but noted some of the data represented is currently being
updated.
The Capital Plan encompasses ten years, with specific focus on the next five years.
Projects that will start within the next thirty months are also defined. The Capital
Plan calls for $300 million to meet the University’s building needs over the next ten
years. Mike Gower explained how the Capital Plan will assist the University in
dealing with specific projects and investments, and what impact those will have on
the borrowing capacity of the institution. He explained internal and external
borrowing capacities, the University’s debt policy with regard to what percent of the
operating budget is allowable for debt service, and the role of the liability ratio in
judging an institution’s financial health. The current debt policy calls for no more
than five percent of the operating budget to be spent on debt service. He reported that
the University will be in compliance with this conservative debt policy through the
end of 2006, but that it may come out of compliance in the future as building needs
and deferred maintenance issues cause the University to become capitally
constrained. There are assumptions built into the Capital Plan. Estimates are based
on figures that may change and new revenue sources may become available.
Bob Vaughan explained the sequencing model being utilized for new construction
and planned renovations to existing buildings. The future of the current University
Bookstore building was discussed. Committee members expressed concern over the
potential loss of useable space – and its replacement cost – for what appear to be
aesthetic reasons. Mike Gower noted other issues, including the presence of asbestos
in the building, will have an impact on that decision. Stephanie Kaza inquired how
priorities are determined and who the decision-makers are. Mike Gower responded
that several factors impact the decision process including sequencing, opportunity,
program needs and deferred maintenance issues. He noted that the Board of Trustees’
Facilities and Technology Committee summer meeting will include a discussion on
deferred maintenance funding. He pointed out that funding is not the only limiting
factor in deferred maintenance. Many buildings have limited availability when
students are on campus during the fall and spring semesters. This requires a
tremendous amount of the work to be completed during the summer months. The
committee discussed the future of the Waterman Building and the reasoning behind
the push to move department offices out of houses. Mike Gower said the potential
exists for some administrative functions to be moved off-campus and into leased
office space in the community. Committee members agreed on the need for increased
availability of both faculty office and classroom space.
Committee members expressed a desire to serve - as representatives of a broad crosssection of faculty - in an advisory role to the administration in this process. Matthew
Carlson said many students are interested in how the University allocates finances.
He said there is a need for someone from the administration to explain the financial
plan in basic terms and to field questions from students. He asked if Mike Gower
would be willing to field questions in his introductory political science classes. He
also suggested there be some type of open forum or town meeting for students who
are interested and would like a voice in the process. Mike Gower said he would
welcome the opportunity.
Tom Visser inquired about how new office space for new faculty is funded. Mike
Gower said the University pays space costs from the General Fund. Stephanie Kaza
said internal construction for an office that did not previously exist was funded by her
department. Mike Gower said in some cases departments do pay, but the money may
come from institutional funds.
Tom Visser thanked Mike Gower for attending the meeting. Stephanie Kaza thanked
him for the clarity of his presentation. In closing Mike Gower noted that capital
planning from a financial perspective and debt management did not exist at UVM
until recently. The efforts focused on establishing these processes will have a major
impact on the future.
4. Project Updates

Bob Vaughan said progress continues on all projects reported on at this
committee’s last meeting.
External construction on the central chilled water plant is expected to begin in
October. Work on the connections for the steam and chilled water lines for the
Davis Center will be completed independently but will take place in the same
area. Access will be impacted as walkways are closed in the area around the
bookstore and library. Maps will be set up to identify detours on a week by week
basis. The walkways will not be closed until after commencement. Albert Joy
noted that handicapped access will also be an issue. Vehicular access will be
impacted for the shuttle bus and service vehicles behind the library.
Albert Joy re-stated concern over the library’s main air intake being located at
ground level. Diesel fumes and dust enter the library through the intake. Bob
Vaughan asked if Albert would serve as a contact to discuss the issue with those
working on the problem.
The Davis Center remains on schedule. Concrete is scheduled to be poured every
three to four days for floors in the Davis Center.

Linda Seavey reported the Campus Master Plan is scheduled to be presented to
the Board of Trustees at their next meeting.
5. Committee Updates

Board of Trustees Facilities & Technologies – Nothing to report.
6. Adjournment – The meeting was adjourned at 10:45am.