Questions on the Funding of the CSUN Valley Performing Arts Center Accounts, Accounting, and Accountability By Carol Shubin Executive Summary The purpose of this inquiry is to better understand how Auxiliary and Enterprise Funds can be used to cover other campus funding shortfalls. CSUN Valley Performing Arts Center VPAC provides an example of how a project or program can be saved by auxiliary funding even during a budget crisis. The VPAC story shows us that: If there is a will, there is a way. CSUN worked toward the construction and opening of the Valley Performing Arts Center (VPAC) for nearly eight years. VPAC opened with fanfare in January 2011. The $125 million, 166,000-square-foot, four-story center was built with a combination of public and private investment. The university still needs several million to meet its $50 million fundraising goal. http://blogs.csun.edu/atcsun/news/csun-opens-valley-performing-arts-center-with-fanfare/ Every attempt has been made to provide accurate information from available public records. However, many decisions and transactions occurred without transparency, so neither the accounting not the accountability is clear. This report contains no assertion of illegal activity. Perfunctory and cursory attention was paid to shared governance. To our knowledge, most decisions were made long in advance of their announcement to the faculty, but no serious effort was made to stop the project at any point, other than the state s construction delay. Funding In March 2006, the CSU Board of Trustees approved schematic plans for the California State University, Northridge Valley Performing Arts Center. Although the initial estimated cost of VPAC was less than $100 million, the project eventually mounted to roughly $123 million. In 2006, Legislative Analyst Office recommended a reduction in the cost of VPAC of almost $9 million. This would have brought the state cost down from $56,528,000 to $47,571,000. They recommended the reduction in funding, previously approved by the Legislature, due to increases exceeding construction inflation. The Chancellor s Office required all funds to be identified prior to start of construction. The project went out to bid in December 2007, although the VPAC funding shortfall was approximately $30 million. In January 2008, the Board of Trustees passed a resolution covering the debt service for a portion of potential bond financing. Higher than anticipated construction cost escalations prompted the University to explore bond financing. The state paid roughly $63 million, private contributors gave about $20 million and it appears that roughly $40 million in campus-based resources were used. Chancellor Reed revised the cost ratio of state to non-state funding; he requested that costs be shared 50:50. This ratio was roughly met at $63 million state and $60 million non-state. However, close to $40 million or two thirds of the non-state funding appears to have come from CSUN campus-based funds. The true private funding raising seems 1
to account for about 20/123 = 16% of the total required, and campus-based funds account for the rest, or 40/123 = 32%. Space According to the CSUN 2005 Master Plan, the original non-state space for VPAC was 98,000 GSF (60% of GSF) and state space was figured at 65,200 GSF (40% of GSF). The instructional space declined 38%, and now the instructional space accounts for roughly 25% of the space. The space for the Great Hall increased, and the space for Theater faculty seems to have been almost entirely eliminated. It now appears that the non-state space is closer to 75% of the total GSF. Maintenance It appears that maintenance costs for the VPAC ran a minimum of $1.5 million per year on the state side. In fact, we suspect that it could be a good deal more when one includes salary of staff and faculty and administration, as well as advertising and other advancement costs. Estimated operational cost of VPAC is about $6.7 million but we need to take into consideration that 25% of VPAC will be used as instructional classroom space for AMC. It does appear that the maintenance cost was vastly underestimated in the planning and construction of VPAC. Change in University Corporation Mission The University Corporation is a non-profit auxiliary corporation providing commercial and administrative services to Cal State, Northridge. In 2010, the University Corporation s mission changed to include finding services and solutions that address the needs of CSUN. We hope that this change in the University Corporation s Mission allows it to subsidize instruction if we fall short of funds, or, perhaps, the University Corporation can support the Advancement, so that it does not rely on general funds. Difficulties Raising Funds Advancement was unable to achieve its fund raising goal. It was a difficult time to bring in the funding as the recession was most pronounced in 2008. There was a dilemma since the bond had gone through, but little private funding had arrived. The University Corporation Board expressed concern that fundraising would be even more difficult if the University Corporation pledged the additional $30 million. There was also concern about the University s image, if the project was halted. In addition, construction prices had started to fall in 2008. So the decision was made to proceed with the construction. Thus, quite a bit of money flowed out of Advancement and the Foundation to pay to cover the shortfalls for VPAC funding. Casualties? 1. In December 2009, The University Corporation Board of Directors projected a need for $1,000,000 in annual savings and revenue enhancements over the next few years. University Corporation Minutes reflect that the savings would come from payroll/benefits reductions. Staffing levels and hours were cut in all units. The custodial functions were outsourced to Metropolitan Custodial Services; full-time custodians were also given the option of staying with the Corporation as dishwashers, at a lower pay rate. The Corporation continued the initiative to move student employees to career positions. Meal plans increased 5%. More food units closed during the summer months. For a second year in a row, there were no wage increases (in 2009-2011). Also included in the budget strategies was a redirection of 2
funds from the quasi-endowments to support basic operations. (We believe that the quasi-endowments may have been restored, and for the period of time in which they were suspended other revenue sources covered the purposes of that funding.) 2. Theater faculty office space did not materialize, although the Great Hall grew. When did the design change? Were changes announced to the Board of Trustees or the University Corporation Board, Faculty Senate, or other governance groups? Does AMC faculty have enough office space? This leads us to some questions. DRAFT Questions on Accounts, Accounting, and Accountability of VPAC & Recommendations for Improved University Governance 1. How do we determine if a capital project is supportive of the CSUN Mission? How do we determine if the expense of a project is commensurate with the benefit? (Mission: California State University, Northridge exists to enable students to realize their educational goals. The University s first priority is to promote the welfare and intellectual progress of students.) 2. How has a capital project, such as VPAC, supported the Graduation Initiative? How has it increased retention, decreased time to graduation, or increased the graduation rate of CSUN students? 3. The University Corporation is a non-profit auxiliary corporation providing commercial and administrative services to Cal State, Northridge. In 2010, the University Corporation s mission changed to finding services and solutions that address the needs of CSUN? Is the University Corporation responsible for solving Advancement s or the president s problems? Can Auxiliaries also be responsible for solving problems caused by the shortfalls in General Funds which impact instruction, our primary business? 4. In general, how much money and what resources are at the CSUN president's discretion, in particular for non-academic ventures? At what point can a president be stopped for taking out too much money for discretionary expenditures? 5. Can the interest on any campus-based fund be used for discretionary purposes? Did CSUN run particularly large surpluses by CSU standards in order to collect interest on accounts for discretionary uses? 6. Are Foundation and University Corporation funds considered synonymous with private money? If not, in what way are those funds different from private funds? 7. What happens if there is a violation of a pledge to raise millions of dollars of private money? Is there any accountability for failure to deliver on pledges and promises? To what extent does management tolerate questioning of past financial decisions? What is the mechanism to ask questions? What happens when members of the faculty express concern over not having sufficient time to review or discuss the decision? 3
8. In 12/2007 University Corporation Minutes, the Board Members voiced concern that they had NOT been given the opportunity to review the request to approve a $30 million obligation. The University Corporation Committee members wanted to understand how approving a $30 million obligation would impact the University Corporation s ability to do other things, and how it would affect the Foundation s effort to raise private funds. It appears that these questions were brushed off as a worst case scenario. Was there any meaningful shared governance in this project? 9. What happened to the office space for CSUN Theater faculty described to the University Corporation 12/2007 minutes and the BOT Minutes of 1/2008? We request design plans showing that faculty offices were ever contemplated. Were funds collected for a building plan that was misrepresented to the University Corporation Board and the CSU Board of Trustees? Does AMC faculty have enough office space? 10. How were the maintenance costs calculated ahead of construction? What is the full cost of maintenance for this year and the next five years? 11. Advancement has no history of bringing in funding sufficient to meet the scale of the VPAC project. Why was the project not scaled down before bids were taken, as we knew that we were short over $30 million? 12. Did the University Corporation vote to commit $1 million per year to the VPAC project in December 2007? Did the University Corporation Board understand the nature of the $30 million pledge? The University Corporation has endowments which provide grants for faculty research, and the development of innovative teaching methods. Were any faculty or research endowment grants moved to alternative sources? If so, what were those fund sources? Could we use Foundation and Corporation to cover general fund shortfalls? 13. What is the current funding ratio of non-governmental (state, federal, country or city) and noncampus based fund to compared to private donations for the VPAC? 14. What was the total amount of campus-based revenue that came into the design, construction, landscaping, fund raising effort, advertising, maintenance, and all other aspects of the realization of the VPAC? What was the source of those campus revenues? Please specify how much funding went through the General Funds, University Corporation, Finance, Advancement, and the Foundation to fund an aspect of the design, construction, advertising or maintenance of VPAC. Estimate the revenue lost from endowment returns financing the VPAC debt including interest. 15. Are we still actively fund raising for the VPAC? How much money was raised after the Gala on January 29, 2011? We request an accounting of the spending of all to be sure that they are used for their purpose. 16. How much capital outlay can come from general fund sources? 4
Recommendations 1. We call for an internal investigation into the funding of CSUN Valley Performing Arts Center. 2. We call for realignment of our budget resources with our Mission: California State University, Northridge exists to enable students to realize their educational goals. The University s top priority is to promote the welfare and intellectual progress of students. It appears that Auxiliary funding covered VPAC funding shortfalls. The VPAC bailout provides us with a model for how Auxiliary funds can be used to cover funding cuts to instruction. General Recommendations We must do a better job at estimating the effect of any proposed changes on the revenue by funding category, discussing how changes in resources will impact human resources, assessing the proposed changes effect on academic quality, insisting on authentic shared governance and accountability aligning spending with our Mission, re-examining all non-instructional spending, particularly capital outlays and improvements. reducing firewalls from all non-general fund categories, one time funds, to cover any deficit in our primary mission. 5
Some Background Information on VPAC What is in VPAC? VPAC is a multi-use complex, which includes a 1,700-seat theatre, a 232-seat lecture hall, a 178-seat flexible experimental theatre, rehearsal, and event spaces. In addition, the building includes lighting, media, scenery and costume laboratories, KCSN campus radio station, dressing rooms, and control rooms. VPAC office space currently includes: TH164, 166 Shared offices TH354, 362, 364 Single offices TH162 Scene Shop Office There is only one large classroom in VPAC which has no black board or white board. We note that Theatre is not a large major. (Source: Institutional Research) Undergraduate Theatre Program Headcount by Level Fall Fall Fall Fall Fall Fall Fall Fall Numbers 1993 1995 2000 2005 2007 2008 2009 2010 Freshman 30 28 38 69 59 58 66 90 Sophomore 33 19 26 41 42 38 28 30 Junior 39 29 45 59 76 78 57 47 Senior 60 58 50 72 72 66 76 63 Total 162 134 159 241 249 240 227 230 Numbers Total Theatre Master's Program Headcount by Attendance Status Fall Fall Fall Fall Fall Fall Fall Fall 1993 1995 2000 2005 2007 2008 2009 2010 15 10 21 15 23 19 21 16 Fall 2011 76 46 62 59 243 Fall 2011 16 6
The Accounts It appears that the funding was split between three sources: public (state, federal, county), private, and campus-based funding. $125m total - $20m campaign = $105m public funds $105m public - $63m state = $42m campus-based (verify) VPAC Campus-Funds Expended (m = million) $8m Foundation Board Designated ($2m each year from 6/2008-6/2011) $15.2m University Corp Contribution Revenue 6/2011 (Financial Activity Report) $7m University loan agreement with CSURMA via University Corp. Financial Statement 6/2011 $11.06m Systemwide Revenue Bonds, repaid by the University Corporation 6/2011 - campus originated debt $1.3m UCORP loan to VPAC in financial statement 6/2011 ------$42.56m campus-based funds from the University Corporation and the Foundation. (We request that the University Corporation and the Foundation verify these figures.) [$12.25 m for VPAC from unrestricted Foundation 6/2010 and $2,057,568 for 6/2011.] http://www-admn.csun.edu/financials/docs/fin-activity-rpts-10-11.pdf State $63m state bond (construction and equipment) Perhaps the final cost of the building was $123 million which would mean that $40 m in campus based resources could be used. The Accounting (in millions of dollars) 125 Total - 63 State ----62-20 ----42 VPAC campaign -12 Chancellor's Office. Loan agreement thru CSURMA and UCorp $5 million and $7 million ---30-11 --19 Campus originated debt in 6/2011 7
-4 Operating budget via Foundation ----15-2 Interest based funds via Foundation ---13-2 Campus based projects --11 University Corporation It looks like somewhere between $8-10 million in Foundation funds (non-campaign) and $32-$34 million from the University Corporation funds were used to build VPAC. Also General Funds Capital Outlay funds may have been used. Clearly, Advancement has no history of raising large sums of money. Revenue Private Gifts and Grants Restricted 2008-09 $8,381,222 2009-10 $8,520,807 2010-11 $9,232,887 Average revenue $8.7 million per year General Fund Expense of Advancement 2008-09 $7,342,761 2009-10 $5,528,189 2010-11 $6,146,652 Average expense $6.3 million per year. Note: Only $6.5 million in new charitable gifts were received in 2010-11. http://www.calstate.edu/universityadvancement/reports/1011philanthropicsupport/documents/appendix1011.pdf As far as we can tell, Advancement takes general fund money and returns restricted monies of not much greater value. If university presidents did not see their role as fund raisers, most of the CSU Advancement Offices would be closed immediately. However, as this is unlikely, we propose that Advancement operations are supported by the University Corporation. Revenue generated from VPAC: We are unsure of how much money VPAC ticket sales bring in. What revenue would VPAC need to make to break even? At 1700 seats @ $40/seat and 40 performances = $2.7 million At 1700 seats @ $40/seat and 50 performances = $3.4 million Cost of Maintenance of VPAC (minimum) from the Financial Activity Reports 2010-2011 8
General fund $2,087,007 Enterprise/Trust $1,129,058 2009-2010 General Fund $1,759,227 Enterprise/Trust $1,211,185 It appears that it costs a minimum of $1.5 million per year to run VPAC on the state side. In fact, we suspect it is a good deal more when one includes salary of staff and faculty and administration, as well as advertizing and other advancement costs. Estimated operational cost of VPAC is about $6.7 million but we need to take into consideration that 25% of VPAC will be used as instructional classroom space for AMC. (Faculty Senate Minute 12/9/2010.) The CSUN VPAC opening gala for late January 2011, just two weeks after Gov. Jerry Brown proposed slashing $1.4-billion from state support for higher education. Accountability We leave that to be determined. 9
Appendix to the Appendix Some Background Information on the VPAC Office of the Chancellor / Public Affairs Tuesday, November 2, 2004 L.A. Daily News 10-30-04 Council backs CSUN arts center By James Nash Plans to build a performing arts center at California State University, Northridge -- long a goal of San Fernando Valley arts patrons who say the area lacks cultural venues -- received a boost Friday with a unanimous vote of support from the Los Angeles City Council. The council did not commit any money to the planned $100 million, 1,600-seat arts center, which would be the largest of its kind in the Valley. Instead, council members threw their support behind the project, which supporters called a crucial step toward encouraging private individuals and companies to donate to it. "We think it is a strong and powerful statement that the momentum of this campaign has built up," said John Chandler, a CSUN spokesman. "It is the university's No. 1 building priority and certainly it will be our No. 1 fund-raising priority in the years to come." So far, the university has received about $250,000 toward the $100 million to $110 million cost of the center, Chandler said. A formal fund-raising campaign is expected to launch in July. Chandler said he expects about half of the cost of the center to come from private donations and the other half from construction bonds for public universities in California. CSUN officials hope to open the venue by 2010, Chandler said. Valley residents have long complained that the area is short of cultural venues compared with downtown Los Angeles and the Westside. "There's always been that thought that there's not much culture in the Valley other than the 'Valley Girl,"' said Carlos Ferreyra, a leader of the 2002 secession campaign in which the lack of arts venues was an issue. "We've always had the desire to showcase the artists and musicians and performers who live in the Valley. Downtown is not the heart of the city." Councilman Greig Smith, whose district includes Northridge, said the CSUN center will begin to remedy the shortage of cultural outlets. 10
"For the San Fernando Valley, we have a limited number of facilities," Smith said. "Certainly that was one of the big issues of the secession campaign -- that the Valley was overlooked for cultural and other facilities." Campus: CSU Northridge -- January 26, 2005 http://www.calstate.edu/newsline/2005/n20050126nor2.shtml In the coming years, much of Cal State Northridge's fundraising energy will focus on support for the 1,600-seat Valley Performing Arts Center project planned for the CSUN campus. That project, envisioned as a partnership with the community, is forecast to cost about $100 million, including about half in expected state funds and half in private support. 2006/2007 through 2011/2012 Capital Outlay Projects California State University Campus: Northridge Project Name: Performing Arts Center Project Description: This project will provide a 100,000 ASF/163,000 GSF facility (#54). It will include a 1,600 seat auditorium for live music or drama performance space. The center will accommodate 380 FTE (302 FTE in lecture space, 78 FTE UD laboratory space) and 35 faculty offices. This project is dependent upon state and non-state funding. This project was approved for preliminary planning in 2005/06. The construction estimate was based on a feasibility study by Davis Langdon completed in February 2004. Since that time significant cost escalation has occurred and as a result the request for WC has increased to $56,528,000 to complete the approved scope of the project. A revised cost estimate completed in May 2005 was submitted as backup documentation supporting the cost increase. An augment of $1,383.000 was provided in 2010/11 to cover costs of restarting the project. Project Start Date : Nov-05 Project Completion Date: Apr-10 FTES: 380 Project Status: Closed Bond Funding: $57911000 Bond Authorization: 6610-302-6048-06-06 Congressional District: D-27 Senate District: D-20 Assembly District: D-40 11
The CSUN Masterplan (2005-06) The CSUN Master Plan states that Performing Arts 98,000 GSF Performing Arts 65,200 GSF Non-State (60 % of GSF) State (40 % of GSF) WHAT IS THE CURRENT GSF RATIO NOW? Based on presentations from the President, Provost, and CFO s reports to the Faculty Senate, it appears that the GSF of VPAC is now 75% for the non-state marble side and 25% for the concrete state side. What was the cost ratio of state to non-state? Almost 50:50 (more precisely, 51:49) $63 million state; $60 million non-state However, close to $40 million of the $60 million is from CSUN campus-based funds (2/3) True private funding raising accounted for 20/123 = 16% Campus-based funds 40/123 = 32% These figures must be verified by University Finance and PPM. Was the FACULTY SPACE WAS CUT? Our guess was that there never was a physical design plan with 35 offices. Was this false advertizing to get campus and possibly donor support? This claim could be proved false it there are any construction plans dated from 2007 and 2008 which showed those offices in the design. If 25% of the building is for students, perhaps the state should have paid 25% of the cost of $123 million or $31 million. Originally the state believed that the building would cost $100 million and 40% would be state so State amount was to be $57.7 million for capital and more than $5.6 million for Group II equipment. Board of Trustees, CPB&G / Item 2, March 14-15, 2006 Status Report on the 2006/07 State Funded Capital Outlay Program The California State University s proposed 2006/07 Capital Outlay Program and the Five-Year Capital Improvement Program 2006/07 through 2010/11 were presented at the September 2005 Board of Trustees meeting. The trustees approved a 2006/07 priority list totaling $427 million to complete previously approved projects, perform seismic upgrades, renovate older facilities, and provide new academic space for existing and projected campus enrollments. Funding for this program is dependent on California voter approval of a future general obligation bond. Of the $427 million in requests, it is anticipated that $345 million would be available for the 2006/07 program to fund projects, cost of bond issuance, and reserves consistent with the Governor s Compact. 12
The Department of Finance considered 19 projects totaling $303.3 million based on the trustees priority list. The governor s budget was published on January 10, 2006, and included $289.3 million for 19 CSU projects, reflecting reductions in funding for four projects. In the Legislative Analyst s Office, Analysis of the Budget Bill it is recommended that the Legislature reduce the cost of three projects as the proposed amount requested exceeds construction inflation. These projects include: East Bay Student Services Replacement Building reduce construction budget by $2,752,000. Long Beach Peterson Hall 3 Replacement reduce construction budget by $11,470,000. Northridge Performing Arts Center reduce working drawing and construction budget by $8,957,000. Northridge Performing Arts Center 380 FTE Request $ 56,528,000 (b) Legislative Analyst's Office recommends $47,571,000 (b) Recommended reduction in funding due to original increase (previously approved by the Legislature) exceeding construction inflation. BOT, CPB&G, Agenda Item 6, March 14-15, 2006, Page 4 of 13 2. California State University, Northridge Performing Arts Center Project Architect: Hammel, Green and Abrahamson, Inc. Background and Scope CSU Northridge proposes to construct a 163,000 GSF Performing Arts Center for the College of Arts, Media and Communication. The building features a prominent three-story lobby that provides access to the 1,600-seat main hall from Nordhoff Avenue. The location and massing were designed in concert with the campus master plan goals for the creation of courtyards to support academic use and views into the campus. The building structure is a steel braced frame with concrete filled metal decks. The building exterior will be finished in a combination of glass curtain wall, metal panels, and tile. The center will accommodate 380 FTE and 35 faculty offices, space for theatre lighting and sound, scenery design, rehearsal, and production. In addition to the main hall and lobby, the building program includes a 250-seat experimental theatre, a tiered lecture hall, the campus radio station, and performance supporting spaces. The project will utilize existing utility locations and will be connected to the central plant and the campus s electric service grid. Sustainable features include a cool roof, an energy management system, and connection to the central plant for heating and cooling. The west-facing lobby will have an energy efficient curtain wall system and a large roof overhang to minimize solar heat gain. Energy efficient lighting and control systems will be used in conjunction with natural lighting. The site will have drought tolerant landscaping. Timing (Estimated) Completion of Preliminary Drawings April 2006 Completion of Working Drawings February 2007 Construction Start June 2007 Occupancy June 2009 Basic Statistics Gross Building Area 162,997 square feet Assignable Building Area 100,248 square feet 13
Efficiency 62 percent Cost Estimate California Construction Cost Index CCCI 4633 Building Cost ($420 per GSF) $68,393,000 Systems Breakdown ($ per GSF) a. Substructure (Foundation) $ 22.75 b. Shell (Structure and Enclosure) $121.24 c. Interiors (Partitions and Finishes) $ 86.24 d. Services (HVAC, Plumbing, Electrical, Fire) $ 93.25 e. Group I Equipment $ 62.61 f. General Conditions $ 33.50 Site Development (includes landscaping) 2,771,000 Construction Cost $71,164,000 Fees 9,461,000 Additional Services 6,625,000 Contingency 6,298,000 Total Project Cost ($574 per GSF) $93,548,000 Group II Equipment 6,400,000 Grand Total $99,948,000 Cost Comparison This project s building cost of $420 per GSF is comparable to the CSU construction cost guide for an auditorium (1,200 seats) at $417 per GSF (CCCI 4633) including Group I equipment. Overall, the project s construction costs have increased 14 percent in the past budget year due to materials cost escalation and the design solution that utilizes two separate structures, thereby increasing the quantity of building exterior cladding and glazing. In addition, the large window wall and performance hall interiors are above average in costs and aim to provide a panorama to the arts and gateway to the community in support of the project. Substructure costs are higher than average due to the planned basement to serve the building. Funding Data The project will be funded with a combination of state and nonstate sources with approximately 40 percent of the project budget, or $36,566,000, resulting from campus fundraising efforts. The project received $1,210,000 for preliminary plans in 2005/06 from the Higher Education Capital Outlay Bond Fund of 2004. The proposed budget of $47,713,000 for state funded working drawings and construction is greater than the currently approved state budget by $8,815,000. This revised budget has been proposed as part of the 2006/07 Capital Outlay Program and was supported in the Governor s Budget. State funding for working drawings and construction are reliant upon voter approval of a future bond measure. Additional future state funds of $5,644,000 will be requested for Group II equipment. The nonstate donor funded portion of the project was originally $34.7 million. However, due to the construction cost increases and proposed program, this amount has increased to $36.6 million. California Environmental Quality Act (CEQA) Action The Performing Arts Center was identified as a near term project and determined to be fully analyzed in the Final Environmental Impact Report (FEIR) for the California State University, Northridge 2005 Master Plan for the purposes of compliance with the CEQA. The FEIR has been prepared to address the poten 14
tial significant environmental impacts, mitigation measures, and project alternatives, comments and response to comments associated with the present design and location of the Performing Arts Center, pursuant to the requirements of the California Environmental Quality Act, the CEQA Guidelines, and CSU CEQA procedures. The CSU Northridge 2005 Master Plan and respective FEIR is being presented to the Board of Trustees for approval as Agenda Item 5 at the March 2006 trustees meeting. The following resolution is presented for approval: RESOLVED, By the Board of Trustees of the California State University, that: 8. The schematic plans for the California State University, Northridge Performing Arts Center are approved at a project cost of $99,948,000 at CCCI 4633. Senate Minutes from 3/2007 Vice President for Administration and Finance Randy J. Harris has accepted the appointment as the university's Vice President for Administration and Finance, and Chief Financial Officer. He begins his appointment Monday, April 2, 2007. The President appreciates the hard work of the search and screen committee, chaired by Interim Vice President Jim Sullivan. Randy Harris, Cal State Northridge s new vice president for administration and finance and chief financial officer, came to the university in April 2007 from Salt Lake City. http://www.csun.edu/leadership/harrisbio.html Faculty Senate EXECUTIVE COMMITTEE MINUTES Approved 11/15/07 October 18, 2007, 5. University Hall, Room 277 Visit from Vice President Randy Harris, Administration and Finance Division The new Vice President for Administration and Finance, Randy Harris, attended the meeting to provide an update on projects that are taking place on the campus. He reported that the G3 parking structure, the faculty housing project, the Performing Arts Center, the Orange Grove and walkways renovation, and the new Science Building are in the construction pipeline. Other projects under way are a review of facility numbering and plans for an annual disaster drill in January. Harris plans to make financial statements completely open to the campus community. He invited the Executive Committee to call him if they have any questions or concerns. He will be invited to a future meeting to complete his report to the Executive Committee. THE UNIVERSITY CORPORATION, Executive Committee, November 16, 2007 Performing Arts Center. Two-thirds of the funding for the University s Performing Arts Center project is in hand or has been identified. The project has gone out to bid. The CSU requires all funding to be in hand to proceed. The University has identified several funding streams to cover the debt. At a meeting earlier this week, the Chancellor s Office indicated that they will require the Corporation to pledge what the Corporation provides to the University as one of the potential funding streams to cover the debt. This item is being prepared for presentation to the Corporation Board on December 18, 2007. 15
University Corporation Minutes 12/18/2007 Administration & Finance: Following Randy Harris resignation, Tom McCarron has been appointed administratorin-charge of Administration & Finance, effective Nov. 30, 2007, and is a candidate for the position of Interim Vice President. He will continue to be involved in the faculty/staff housing project. www.csun.edu/tuc/121807boardsummary.doc THE UNIVERSITY CORPORATION,, Board of Directors,, December 18, 2007 Summary ITEM V. PERFORMING ARTS CENTER http://www.csun.edu/tuc/transparency.html The Chancellor s Office requires all funds to be identified prior to start of construction. To date there is a shortfall of approximately thirty million dollars for the Performing Arts Center (PAC). The proposed resolution covers the debt service for a portion of potential bond financing. Higher than anticipated construction cost escalations over the last two years prompted the University to explore bond financing. The University began the PAC project roughly five years ago; the project will be funded through a combination of State bond money, campus funds and private funds. In addition to a performance venue, the PAC will be an academic facility, housing the Department of Theatre, 35 faculty offices, and lecture/teaching space supporting 400 FTE (full time equivalents). The estimated project cost is $125 million. The Construction Manager @ Risk was hired two years ago and has been involved in project design. The CM @ Risk model provides for a guaranteed maximum price. As construction cost escalations slowed, the University determined that it was an appropriate time to go out to bid. Trade bids were under budget. The PAC project is scheduled for CSU Board of Trustees review in January 2008. Concern was voiced that the Executive Committee had not reviewed this item before its presentation to the Board, that the $30 million obligation would impact the Corporation s ability to do other things, and that this support could slow down fundraising. The Chair commented that the resolution addresses a worse case scenario and amounts to a pledge of Corporation funds that would already be provided to the University. Fundraising efforts are ongoing and as the gap closes, the University will ask the Chancellor s Office to remove pledges. Board members commented that it would be bad for the image of the University if the PAC did not move forward and spoke on the benefits to future generations of students. MSP: That The University Corporation Board of Directors approve the pledge requested by the California State University in support of the Performing Arts Center project at California State University, Northridge.* Author s Note: Strangely enough there is no record of former CFO Randy Harris in the SacBee salary files for 2007. 16
CSU Board of Trustees Finance, Agenda Item 2, January 22-23, 2008, Page 5 of 9, REVISED 4. The University Corporation (California State University, Northridge) Performing Arts Center Project; Background and Project Description In March 2006 the Board of Trustees approved schematic plans for the California State University, Northridge Performing Arts Center (PAC). The 163,000 gross square foot PAC will support academic programs* within the College of Arts, Media and Communication and the overall campus, as well as a variety of public performances. The 1,700-seat performance hall will have the acoustic properties and audiovisual capabilities to accommodate live music, theatre, film and Broadway productions. In addition to the performance hall, the building includes lighting, media, scenery and costume laboratories, rehearsal spaces, a 200-seat flexible theatre, a 200-seat tiered lecture hall, campus radio station, and performance supporting spaces such as dressing rooms and control rooms. The PAC will enhance CSU Northridge s outstanding programs in music and theater arts, while establishing a cultural hub within the San Fernando Valley. The PAC which will accommodate 380 student FTEs and include 35 faculty offices will provide the CSU Northridge Music and Theatre Departments with teaching environments similar to those students will encounter in their professional careers. The facility will provide an economic stimulus for the surrounding region and expand opportunities for campus partnerships with cultural institutions, the entertainment industry and the community. Project Funding The total project cost of $124.8 million will be funded from multiple sources, including state capital outlay funds for construction ($57.7 million) and state capital outlay funds for Group II equipment that are anticipated to come from the 2008-09 State Funded Capital Outlay Program ($5.6 million). The campus has already expended $4.0 million from unrestricted campus funds, and has identified an additional $20.5 million in cash donations from private donors, municipal grants, unrestricted campus project funds, a cash contribution from the University Corporation (a recognized auxiliary organization), and unrestricted interest on trust funds. 17
Finance Agenda Item 2 January 22-23, 2008 Page 6 of 9 $57,700,000 REVISED State Capital Outlay 2008-09 Group II Equipment State Capital Outlay 5,600,000 Campus-Funds Expended 4,000,000 Campus-Funds Available 20,500,000 $7,700,000 cash donations from private donors and municipal grants $2,850,000 unrestricted campus project funds $8,050,000 University Corporation contribution * $1,900,000 unrestricted interest on trust funds, thru 12-07 Enforceable Donor Commitments 6,000,000 Anticipated University Foundation Contribution * 1,000,000 Remainder Required 30,000,000 $11,500,000 Systemwide Revenue Bonds, repaid by the University Corporation $18,500,000 Internal loan, amortized over 20 years, repaid from: product sponsorship pouring rights contract facilities lease revenues cell phone sites ITFS frequency contract unrestricted interest earnings on trust funds Total Project Cost $124,800,000 18
The remaining $37 million in funds required for the completion of the project will come from $6 million in enforceable donor pledges, a University Foundation contribution of $1 million, and future fundraising. Should fundraising proceeds not materialize on schedule, two sources will provide cash requirements for construction: 1) Systemwide Revenue Bond/Commercial Paper proceeds of $11.5 million, to be repaid under a pledge of the University Corporation (the subject of this item) and 2) an internal loan of $18.5 million, to be repaid from product sponsorships, facility lease revenues, and unrestricted earnings on trust funds. The following chart lays out the project funding. In order to capitalize on an optimal subcontractor bidding climate and mitigate the risk of significant construction cost escalation, the campus wishes to sign the construction contract for the PAC and begin construction as quickly as possible. The project was bid in December 2007, and the campus received favorable bids. Construction is scheduled to begin in February 2008, with completion in March 2010. Financing The Board of the University Corporation, a recognized auxiliary organization in good standing, has approved an annual pledge of $1 million for this project from available University Corporation revenues. (IS THIS WHAT THe UNIVERSITY CORPORATION APPROVED? Carol ) This amount provides a 1.25 times debt service coverage on a maximum annual debt service of $799,861, assuming level debt service over thirty years and funding of the full not-toexceed amount. This level of debt service coverage meets the CSU benchmark of 1.25 for an auxiliary project. Although the campus is confident that additional fundraising will mitigate the need to borrow for the full amount of the SRB portion, in order to finalize the construction contract, all fund sources must be identified at the time of the construction contract signing. The not-to-exceed par amount of $12,210,000, the maximum annual debt service, and the ratios above are based on an interest cost of 5.17% (as of January 3, 2008), reflective of market scale plus 50 basis points as a cushion for changing financial market conditions that could occur before the permanent financing bonds are sold. Note: The complete VPAC was 166,000 sq ft. It appears that the size increased while the space for faculty decreased. MINUTES OF THE MEETING OF BOARD OF TRUSTEES. Committee on Finance Trustees of the California State University, January 22, 2008 Trustee Hauck reported the committee heard one information item, Report on the 2008-2009 California State University Support Budget Report on Student Fees, Financial Aid, and Student Fee Revenue and one action item as follows: Approval to Issue Trustees of the California State University, Systemwide Revenue Bonds and Related Debt Instruments for Various Projects (RFIN 01-08-01) Orrick, Herrington & Sutcliffe LLP, as bond counsel, prepared resolutions as presented in Item 2 of the Committee on Finance at the January 22-23, 2008 meeting CSU Board of Trustees for projects at CSU Northridge (Northridge Student Housing Phase I); California State University, 19
Long Beach Foundation, (Brooks College Acquisition Project and Foundation Office Building Refinancing); California State University, Long Beach, (Forty Niner Shops, Inc. The Outpost Food Services Replacement Building Project); California State University, Northridge, (The University Corporation, Performing Arts Center Project); California State University, Stanislaus, (Auxiliary and Business Services Residential Life Village Refinancing); California State University, Fullerton 7420 Foundation, (College Park Refinancing). The resolutions will achieve the following: 1. Authorize the sale and issuance of Systemwide Revenue Bond Anticipation Notes and the related sale and issuance of the Trustees of the California State University Systemwide Revenue Bonds in an amount not-to-exceed $171,795,000, and certain actions relating thereto. 2. Provide a delegation to the Chancellor; the Executive Vice Chancellor and Chief Financial Officer; the Assistant Vice Chancellor, Financial Services; and the Director, Financing and Treasury; and their designees to take any and all necessary actions to execute documents for the sale and issuance of the bond anticipation notes and the revenue bonds. The resolutions will be implemented subject to receipt of good bids consistent with the projects financing budgets. 20
FOUNDATION PRESIDENT S REPORT Vance T. Peterson 10/22/2010 ITEM 3 FUND RAISING REPORT and IMAGINE THE ARTS CAMPAIGN $20,237,986 second best year in fund raising for CSUN. For the first time, there was 100% participation from Board members resulting in $4,576,074. Valley Performing Arts Center total funds raised $21,711,800 WE REQUEST VERIFICATION OF THIS CLAIM. We would like to be sure that all gifts have been used as were intended. 21
THE UNIVERSITY CORPORATION,, Board of Directors, December 22, 2009 - Summary D. Three-Year Budget Strategies (Executive Committee Item #5) Information The three-year budget strategies are designed to facilitate budget planning. The assumptions used will be updated continuously. Management projects the need for $1,000,000 in annual savings and revenue enhancements over the next few years, approximately 70% of which will come from payroll/benefits reductions. Included in the budget projections is a 5% increase in the meal plan prices, which would still be lower than most meal plans. More food units will close during the summer months. For a second year in a row, there will be no wage increases for 2010/11. Also included in the budget strategies is a redirection of funds from the quasi-endowments to support basic operations. This is addressed as an action item (below). Operating deficits are anticipated for the next three years. E. Quasi-Endowments (Executive Committee Item #6) Action Years ago the Corporation Board established quasi-endowments to support faculty research, student projects and teaching development. Because all available funds are currently needed for basic operations, Management recommends suspension of support to these programs for three years beginning in 2010/2011, so that the funds can be used for operations. This will not affect the quasiendowments. Action: That The University Corporation Board of Directors approve suspending support to faculty research, instructional improvements and student projects programs for three years beginning in fiscal year 2010/2011, and that the funds available from the three Corporation quasi-endowments be redirected to support Corporation operations, with the understanding that for 2010/2011, Mr. Bookstein will assure substitute external funding of $42,000 to provide support for faculty research grants. http://www.csun.edu/tuc/transparency/universitycorp-finalauditreport10_11.pdf FACULTY SENATE MEETING Approved 2/10/2011 Minutes of Meeting of December 9, 2010 Oviatt Library Presentation Room 5. President s Report Jolene Koester Link to written report: http://www.csun.edu/senate/reports/presidentsreport120910.pdf President Koester reported that the Governor approved an additional $366 million, comprised of $106 million of one-time Federal Stimulus money and $260 million of ongoing money, to CSUs for 2010-11; CSUN s share is approximately 7%. This $366 mil, however, is linked to 339,000 FTES, which is an increase of about 30,000 FTES system-wide. If CSU does not achieve this newly set FTES of 339,000, CSU may need to pay a penalty return money to state. For more details, see the linked written report. 22
Provost Hellenbrand and Vice President McCarron reported that VPAC construction cost came in at $123 million--$2 million below the estimated $125 million. Currently, there is a $12 million gap, approximately 10% in debt. However, we have a very low interest rate loan and there may be a large gift/donation forthcoming. Estimated operational cost of VPAC is about $6.7 million but we need to take into consideration that 25% of VPAC will be used as instructional classroom space for AMC. Operational cost will be funded through state subsidy, ticket sales revenue, facility rental revenue, parking revenues, and advancement revenues. The Provost noted that VPAC ticket sales have been very strong over 600,000 season tickets were sold for Spring 2011. For a more detailed report from the President s Office, see the link above. President s Report December 9, 2010 President Koester reported the following: Budget The state budget for the 2010-11 fiscal year provided $366 million to the CSU which was not in the 2009-10 budget and represents partial reinstatement of previously reduced state appropriation. The $366 million is comprised of $106 million in one-time Federal stimulus money and $260 million intended to be recurring in subsequent years base budgets. The $260 million portion depends in part on the CSU achieving a new higher enrollment target of 338,507 FTES. If the CSU does not achieve this enrollment goal, a portion of this money must be returned to the state. The state plans to backfill the $106 million in one-time Federal stimulus money in the 2011-12 budget, converting this one-time funding to base budget. Usually the Cal State Northridge portion of increases to the CSU budget is seven percent. However, this year the Chancellor s Office held $100 million centrally in the anticipation of three possible contingencies: in the event that the enrollment target is not met and the CSU must return money to the state, in the event of a mid-year budget cut, or in the event of a budget cut for 2011-12. Based on allocations from the Chancellor s Office and achieved enrollment, Cal State Northridge has approximately $4.3 million in new base budget money and approximately $9 million in one-time funding to be expended this year. Prior to receiving this funding and in anticipation of budget reductions for 201011, the President had directed a 5 percent budget reduction to all divisions. The budget reductions to the divisions have been rescinded. Further, because the Cal State Northridge enrollment target was increased, Academic Affairs will not see budget reductions due to enrollment reductions. Allocation of the $4.3 million in recurring funding will include: $800,000 to Academic Affairs and Student Affairs for support of initiatives to improve graduation rates (such initiatives were funded last year through Federal stimulus funds), $500,000 set aside centrally as a safety net for operations of the Valley Performing Arts Center, and $3 million to increase the University s operational reserves from $2 million to $5 million. Allocation of the $9 million in one-time funding will include: $2 million for professional development for faculty and staff, allocated pro rata to the University divisions; $2 million for additional student employment; $2 million for technology infrastructure projects that are not part of IT s ongoing budget (such as improving wireless access in classrooms); and $3 million for deferred physical maintenance projects (priority will be given to those most needed, for which other types of money cannot be used, and including some associated with visible improvement). In addition to the 50-60 faculty searches already underway, the President has committed funds from next year s budget for an additional 50 faculty searches. The need for more tenured/tenure track faculty is documented by data as well as by concerns with workload expressed by tenured/tenure track faculty in the President s coffees with the faculty. 23
2. Valley Performing Arts Center President Koester reminded the Senate that the University has been working toward the construction and opening of the new performing arts center for nearly eight years. The opening gala, a fundraising event, takes place January 29, 2011, and the spring season begins in early February. Additionally, Cornell West will speak on February 3. Tickets are free to faculty, staff, and students and are available at the A.S. Ticket Office. Recent meetings with Provost Hellenbrand and Vice President for Administration and Finance Tom McCarron provided information to the Senate Executive Committee, the Senate Educational Resources Committee (ERC) and the University Budget and Planning Group (UPBG) about the Center s operating budget and construction financing. At President Koester s request, Provost Hellenbrand and Vice President McCarron provided a summary of this information to the full Senate. Funding for operations resides with the Provost but is separate from the regular Academic Affairs budget and does not reduce the academic/instructional budget. The base budget was provided by allocations of new university funds over several years. Provost Hellenbrand explained that the initial operating budget makes conservative assumptions. For example, presenting revenues are projected as equivalent to artists fees, but there will be additional revenues from rental of the facility that are not included in the initial budget projections. Staffing includes some current staff from Plaza del Sol and other internal hiring. Vice President McCarron explained that in January 2008 the CSU Board of Trustees provided approval for construction financing. The campus had identified $95 million of the projected $125 million needed for construction from approved State Capital Outlay funding, campus funds held by the University Corporation, and donor gifts and commitments already received. This left a $30 million gap to be financed through a 30-year $11.5 million systemwide revenue bond and a 20-year $18.5 million loan from the CSU. Since that time, the University has paid down $18 million of this debt and now has remaining debt of only $12 million. Sources for payment included interest income on fees held in trust, University Corporation generated funds, revenues from pouring rights and cell sites, an allocation from the CSU to cover costs incurred during the construction suspension in early 2009, General Fund allocation for Group II equipment, and additional fundraising. Additionally, construction costs were nearly $2 million less than originally estimated so less money was needed. With now just $12 million to be paid, the University has obtained alternative financing at very low interest rates and other advantageous terms. $7 million in CSU commercial paper is payable over five years, and $5 million through the CSU Risk Management Authority is payable over ten years. The University anticipates paying off both loans early as there are no pre-payment penalties. Monies to pay down the loans will come from annual contributions to the University by the University Corporation, revenues from television rights, cell sites and pouring rights, and additional fundraising. 24
FINANCIAL STATEMENTS Let s review the CSUN Financial Activity Reports for the Foundation and University Corporation from 6/20096/2011. In 2009, University Corporation contribution revenue was small. Note the change in 2010 and 2011 on the next pages. 25
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http://www-admn.csun.edu/financials/docs/fin-statements-2011.pdf The University Corporation made a $15.244 million in contribution revenue in 2010-2011. Source: CSUN Financial Activity Reports http://www-admn.csun.edu/financials/docs/fin-activity-rpts.pdf 37
CSUN Foundation support for Performing Arts Center from Program Expenses was $12.5 million in 6/2010. http://www.csun.edu/ua/documents/fs-csun-0610-final-signed.pdf 38
CSUN Foundation program support for Performing Arts Center was $2.057 million in 6/2011. http://www.csun.edu/ua/foundation/financial/fs-csun-0611-final-signed.pdf 39
Let s review the CSUN Foundation Financial of Board Designated Contributions of Unrestricted Assets from 6/2008-6/2011. So the Foundation Board appears to have designated $8 million to CSUN VPAC during 2008-2011. http://www.csun.edu/ua/foundation/documents/fs-csun-0608-final-signed.pdf 40
http://www.csun.edu/ua/foundation/documents/fs-csun-0609-final-signed%20(2).pdf 41
http://www.csun.edu/ua/documents/fs-csun-0610-final-signed.pdf 42
http://www.csun.edu/ua/foundation/financial/fs-csun-0611-final-signed.pdf 43
CSUN Financial Activity Reports show that Capital Outlay from General Funds was $0.3 million in 2008-2009. http://www-admn.csun.edu/financials/docs/fin-activity-rpts-08-09.pdf 44
CSUN Financial Activity Reports show that Capital Outlay from General Funds was $2.066 million in 2009-2010. http://www-admn.csun.edu/financials/docs/fin-activity-rpts-09-10.pdf 45
CSUN Financial Activity Reports show that Capital Outlay from General Funds was $2.794 million in 2010-11. http://www-admn.csun.edu/financials/docs/fin-activity-rpts-10-11.pdf 46
Another Jewel is Added to the Crown of World Class Performance Halls in Southern California Valley Performing Arts Center at California State University, Northridge Announces Inaugural Season of All-Star Performers First Major Concert Hall for 2 Million Residents of the San Fernando Valley Los Angeles, CA, Oct. 27, 2010 - After decades of determined effort by California State University, Northridge officials and civic leaders, the dream of building a world-class performing arts center serving the Valley finally became reality as President Jolene Koester and Valley Performing Arts Center Executive Director Robert Bucker welcomed members of the press, supporters and local dignitaries with details of the highly anticipated inaugural season and a first look inside the stunning new 1,700 seat performance hall. The 166,000-square-foot Valley Performing Arts Center will officially open its doors on Jan. 29, 2011 with a star-studded, black-tie gala celebration followed one week later by the inaugural season featuring a host of top performers in music, dance and theater, including soprano Dame Kiri Te Kanawa, the Russian National Ballet, the China Philharmonic Orchestra, Metales M5 and Rosanne Cash. Dr. Koester, whose vision and determination led to the center becoming reality, said building a state-ofthe-art, world-class performing arts space on the campus of Cal State Northridge has always been about giving the greater community and our faculty and students something they have long desired and deserve. Every community in America knows how important the arts are to the cultural fabric that binds us, and the millions of residents in the San Fernando Valley have waited too long for a special place like the Valley Performing Arts Center to congregate, celebrate and, most importantly, enjoy the arts. Cal State Northridge has been a part of this community for more than fifty years and we are very proud to be the home of this magnificent facility. Providing the San Fernando Valley with a world-class center to experience the very finest in the performing arts will not only bring new cultural activity to this region, but also increased revenue and jobs for area businesses, she said. The Valley Performing Arts Center and its programming will be overseen by veteran performing arts executive Robert Bucker, who will serve as Executive Director in addition to his duties as dean of CSUN s Mike Curb College of Arts, Media and Communication. The acoustical capabilities of this new space will allow us to present superb artists from around the globe, fostering artistic development in our students and encouraging community engagement beyond the campus, Bucker said. DESIGN Joining the prominent ranks of the Walt Disney and Henry & Renee Segerstrom Concert Halls in southern California, the HGA Architects & Engineers-designed Valley Performing Arts Center is a feat of modern technology and sustainability. Successfully integrating creative design with state-of-the-art techno 47
logy and engineering innovation, the center balances three important goals: staying within the university s budget, setting a new standard for sustainability, and ensuring superior acoustical quality, said Jamie Milne Rojek AIA, vice president and project manager for HGA. Constructed by Los Angeles-based C.W. Driver, the $125 million Valley Performing Arts Center is comprised of two connected buildings forming one 166,000-square-foot, U-shaped, multi-use complex wrapped around a central exterior courtyard. For the building containing the main concert hall, a dramatic glass curtain visually opens VPAC s interior to the University s campus life. Stone tile and glass embrace the lobby as a grand staircase sweeps up three levels to the upper balcony and rooftop terrace. The main feature of the Center is a 1,700-seat multi-purpose performance hall designed with the latest technology in acoustical flexibility to support orchestra, opera, Broadway, film, contemporary music and dance. The concert hall features an intimate three-tier seating configuration and uses a complex combination of tuning components to accommodate the broad variety of programming. Perhaps the most unique aspect of the performance hall is its variable acoustical system. Behind the screen "grillage" covering the rear and side walls lie both carefully shaped reflecting wall construction and deployable sound absorptive wool serge fabric. The architect's vision was to keep the hall's appearance unchanged irrespective of the different sound attributes necessary for various productions; this challenge required optimizing both the walls' reflectivity and absorptivity behind the metal mesh cover. Additional variable acoustic banners can be deployed above the hall s catwalks to further modify the halls sound quality to suit a wide range of performance types. Design of single-purpose halls such as orchestral concert halls or drama venues can be challenging enough within architectural and budget constraints, but when one is required to serve each of these needs well, the challenge looms very large, noted David Conant, principal of acoustical consultants McKay Conant Hoover who oversaw the acoustical design. Design features of the hall include sinuous wood ribbons radiating from the stage while more than 34,000 feet of stainless steel mesh panels cover the acoustical fabric on the rear walls. The hall also includes an adjustable orchestra shell, a spacious professional stage-house with an 85-foot-high full fly tower equipped with a 60-line set rigging system, a hydraulic stage extension/pit lift and generous backstage maneuvering space for large stage sets. Another keystone is a 178-seat black box theater that Executive Director Robert Bucker promises will become a showcase for groundbreaking experimental theater. The complex also includes several large rehearsal rooms, academic and professional production support spaces, theatre studio-classrooms, a 230-seat lecture hall, and studio facilities for the university s awardwinning KCSN (88.5 FM) public radio station. SUSTAINABILITY From early in the design phase, a commitment to energy efficiency and the use of sustainable materials became an overarching theme of the project and will lead to the facility achieving the coveted LEED silver certification, ensuring it is one of the few performing arts centers in the United States accredited at such a high level for its reduced carbon footprint. Saving existing mature trees and adding drought tolerant landscaping, combined with reflective roof surfaces, provide natural shading and reduce the heat is 48
land effect, thereby reducing energy costs and making outdoor areas more useable during warmer months. In addition, a state-of-the-art HVAC system will result in energy efficiency exceeding CA Title 24 requirements by over 15%. The additional HVAC system demands of the new Center will be met through the University s one megawatt advanced hydrogen fuel cell powered satellite central plant, thus eliminating the need for major chillers and boilers at the building. FINANCING PLAN The $125 million Valley Performing Arts Center is being funded through a public-private partnership. Approximately $110 million has been received or committed to date: $80 million (64%) from a combination of federal, state, and county sources; and, $30 million (24%) from a combination of individuals, corporations, and foundations. The University is currently in the final stage of a capital campaign to raise the additional funds. California State University, Northridge Vice President for Advancement, Vance Peterson, is heading the effort. Bridge financing will continue until the current campaign is concluded. For additional information or interview requests, contact: Charlie Windisch-Graetz charlie@c4global.com Funding Raising for the VPAC Wall of Honor - Main Entrance to Lobby Cornerstone Founder $5 Million+ Founder $500,000-$4,999,999 Founding Benefactor $100,000-$499,999 Distinguished Patron $25,000 - $99,999 Community Gifts Wall Patron $10,000 $24,999 Community Partners $2,500 $9,999 Printed Recognition (In the Valley Performing Arts Center PROGRAM no permanent recognition) Friends Less than $2,500 49
Cornerstone Founders - $5 million, Linda & Mike Curb 63, Hon. D 09 Founders $500,000 - $5m Mary 63 & Jack Bayramian (for scholarships) Office of Supervisor Zev Yaroslavsky Clyde & Nancy Porter Jean & David Fleming, Hon. D 09 Nextel Communications California State University, Northridge Foundation Board The Sheila and Stanford L. Kurland Family Foundation The Ahmanson Foundation Joseph Drown Foundation Follett Higher Education Group Larry Layne & Sheelagh Boyd Muriel Pollia Foundation The Ralph M. Parsons Foundation Michael D. Antonovich, Los Angeles County Supervisor Founding Benefactors 30 * 250K= $7.5m??? Virginia Mancini Northern Trust, NA Lisa & Charles Noski 73, M 95, Hon. D 07 Rekha & Pradip Choksi Mary & Samuel Bond Haskell, III Walter Lantz Foundation State Farm Insurance Josephine 61, M 70 & Robert Barbera U.S. Congressman Brad Sherman Valley Alliance for the Arts Laurence K. Gould, Jr. Valerie & Sanford P. Paris JoAnn & Leonard Roth Sherry & Albert Lapides M 68 California Community Foundation Bob Stiefel 67 & Ed Imparato MGM and UA Service Company Richard L. Gay HGA Architects and Engineers Robbi & Rickey Gelb California State University, Northridge Alumni Association Dr. Ami & Remo Belli Milt 68 & Debbie Valera National Notary Association Manja & Dennis Swanson Eda & Robin Rousselet 79, M 97, M 10 50
Wells Fargo The Green Foundation Distinguished Patrons $25,000- $99,000 (less than $1m) ADP Foundation Barry J. Nadell Stern Family Foundation Cynthia Haas Griffeth 78 & William C. Griffeth 80 Elizabeth & Howard Layne Jolene Koester & Myron W. Lustig Edythe & Eli Broad Karen Dunbar-Enzer 81 & Earl Enzer 83 Goldman, Sachs & Co. Linda Brown Valley Presbyterian Hospital Ilene & Stanley Gold Samuel Goldberg & Sons Foundation, Inc. Janet & Benjamin Kaplan Walter J. Perez, California Industrial Group Corporation Marla & Cary Lefton Pratt & Whitney Rocketdyne, Inc. Ellie & Mark Lainer Erika & Gus Manders 64 Timothy Miklaucic & Ana Loehnert Charlene & Burton Sperber Foundation John Golisch 72 Jaleh 86 & Galen Etemad Warner Bros. Nancy Cartwright Elizabeth Levitt Hirsch Horace Heidt Big Band Foundation Miller, Kaplan, Arase & Co., LLP 30* 25K= 750K Maybe $1 million? 51
Patrons $10,000-25,000 Gene Haas Foundation John and Beverly Stauffer Foundation Microsoft Foundation Marianne & Dr. James Mertzel Sally & Philip Magaram, Hon. D 03 Cynthia & Robert Rawitch 67 Bill Allen Broadway Federal Bank Carol Shubin Evelyn V.E. Bautista 62 Rodney S. Davis & Jeffrey W. Baker Marilyn & Alan Popiel Miriam Rain, in memory of Leo J. Rain, M.D. Sara & Bob Bauer Shari Tarver-Behring & John Behring The Honorable Joy & Dr. Gerald Picus Barbara 76 & Richard Bergman 77 Rita & Norm Roberts Toba & Earl Greinetz Janice & Benjamin Reznik The Eisner Foundation Louis Colen Community Partners The Capital Group Companies Foundation The Tseng College, California State University, Northridge Lon and Rocky Morton Donor Advised Fund Northridge Hospital Medical Center Participant Media Occidental Petroleum Ellen & Howard Wang 67 Richard 82 & Debra Farra 82 Neiman Marcus Topanga Donald G. Gumpertz Regina & Joseph Scheer Ronni 66 & Shepard Goodman 64 The Air Products Foundation Dr. Béla & Ange Kasza Jackie & Howard Banchik 62 Debra 75 & Sim Farar Andrea 80 & Don Reinken Jilanne 63, M 72 & Richard Fager 62 Beverly Kamber, in memory of Stan Kamber Pyramid Pipe & Supply Company Shirley Ford Annie & Barry Cleveland In memory of Olie & Sibyl Brown Stephen Horwitz 67 Merkie & Ivan Rowan Cathy 89 & David Kort Phyllis & Irvin Mael Maria Elena Zavala & James Parker Christine 64 & Owen Smith 65, M 67 California State University, Northridge University Women s Club Sheryl & Vincent Barabba 62 In memory of Rocky Childs Diana Homer & Richard Homer Kenneth Tapola 73 Patricia & Robert Kiddoo, M 69 Arts Council for California State University, Northridge Karen & John Bradley June & Herbert Frankenberg Maureen & Robert Gohstand Bernice & Leonard Haber Barbara 74 & Donald Kornblau Elizabeth & Danny Markoe 72 Janice & Mark Winston Professor, Todd Russell Reinstein Community Partners Jean & Greg Buesing Rita Streimer, in loving memory of Irving Streimer Bonnie & Vance Peterson Santa Barbara Bank & Trust In memory of Lydia Schneider The University Corporation Helen & Alan Lowy Virginia & Tom McCarron 76 The Honorable Glenn A. Mahler Bastian & Perrott, Oswald Mortuary Groman Eden Mortuary Los Angeles Opera In honor of Gailya Brown Shirley J. 75 & Dr. Martin Lebowitz Providence Health and Services Kaiser Permanente Nicholas T. Goldsborough Joann & Stan Benson Sue 64 & The Honorable Alan Haber 64 The Boeing Company Florence A. 67 & David Kleine 66 Winner & Associates Dr. Deborah Leidner Renee Tepper David Honda Sandra & Irving Klasky Gloria & Ronald Malkin Cantor Judith Greenfeld & Michael Greenfeld Elizabeth & Salvatore Piazza Debra E. Srery-Weiss 79 & Scott J. Weiss 78 Allyn & Jeffrey L. Levine Claire & Donald Marks Marcia M. & Steven H. Medof Gayle 67 & Philip Tauber 68 Rebecca 83 & Pierre Tada 80 Sandra 84 & Ronald Zacky Elaine Berke David Bienstock Jane & Herbert Boeckmann Flora & George Buchler 72 Nancy & Philip Mundy 71 Suzanne & William 52 Sutton Lauren B. Leichtman 72 & Arthur E. Levine Peggy & Edward B. Robin
Community Donors less than $1m (as of March 8, 2012) Alumna and Husband Give CSUN Record $7.3 Million Donation to Expand Student Scholarships, Aid Performing Arts Center In July 2005, California State University, Northridge announced that a former San Fernando High School art teacher who graduated from CSUN and her husband had donated their entire $7.3 million estate as a bequest to the university. The gift will expand student scholarships and marks the largest cash and alumni gift in the university s history. The endowment created by longtime San Fernando Valley residents Mary and Jack Bayramian--who passed away in November 2002 and January 2005, respectively--will fund two major new university scholarship programs, including a $2.3 million portion to launch student scholarships for the future Valley Performing Arts Center project on the campus. This remarkable gift from Mary and Jack Bayramian will empower the university to support outstanding students, said Cal State Northridge President Jolene Koester. The Bayramians, who were devoted to each other during more than 60 years of marriage, now have extended that caring to improve the lives of hundreds of our students. To honor the gift, the California State University Board of Trustees, meeting July 20, 2005, in Long Beach, approved renaming the university s Student Services Building as Bayramian Hall. President Koester called the dedication a fitting tribute, because the building houses the university s scholarship, financial aid and other student support services offices. http://www.csun.edu/pubrels/bayramian/ We are curious about how much the fund has been used for scholarships, and request an accounting of the use of this and all other gifts to the university over the past 5 years. 53
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