monday, march 15, 2004
news
the university daily kansan
9A
BUDGET: University makes deal with corporation
CONTINUED FROM PAGE 1A
Lights, Chevron, Action
On the jagged slope between Stauffer-Flint Hall and Dole Human Development Center, yellow back-hoes move mounds of mud from the base of the University's central air conditioner.
For years, several air conditioners cooled water on campus. They were located all over, working at less-than-full power to cool their area's water.
Facilities Operations knew it cost more than necessary. Any machine running at half its capacity isn't as efficient as it could be.
The water chillers were just the tip of the iceberg. The lights bulbs on campus would cost too much to burn.
An old boiler wasn't worth the money Facilities Operations poured into it.
For years, the University has asked the state for money to help repair and replace the equipment without ever seeing a cent, said Theresa Klinkenberg, chief financial officer for business and financial planning.
But the work couldn't wait. University administration asked several corporations to bid on a project that would get the work done at nearly no immediate cost to the University.
"If the savings are true, it's fine. If they're not, we'll have to figure out
we'll have to figure out a way to make the arguments."
payments."
Steve Green
Associate director of Facilities
Operations
ChevronTexaco answered the call. Chevron officials signed a performance contract with the University, stating it would do the necessary work at no cost up front, so long as the University reimbursed the $18 million Chevron's work will cost.
Chelton "It's a different financing tool, because the state doesn't have any money," said Steve Green, associate director of Facilities Operations.
Operations.
The $18 million in revamped utilities will cover a portion of the University's $150 million in deferred maintenance —maintenance money shortages left incomplete, said James Long, vice-provost for Facilities Operations.
And Kansas isn't the only university suffering.
According to an Association of Higher Education Facilities Operations study, American universities and colleges would need $26 billion to cover their
These costs include failing utility systems and worn-out buildings — urgent need areas. So when states can't pay, universities sign contracts with corporations like Chevron to cover the initial cost.
total deferred maintenance costs.
To pay back Chevron, the Board of Regents and University administrators successfully lobbed for a bond issue in the Legislature last year. Now the University has 20 years to pay back the money.
According to a State of Kansas program study, the improvements to the electrical and heating and cooling systems will generate $1.7 million in savings every year.
every year.
If that holds true, the bond should be paid back in less than 11 years.
Now, just three months away from completion of all aspects of the project. Facilities Operations must wait and see if the savings will transfer from paper to reality.
"If the savings are true, it's fine. If they're not, we'll have to figure out a way to make the payments," Green said.
At the University of Utah, which also signed a performance contract with Chevron to revamp their utilities, the savings have been true.
Pete van der Have, plant operations director at Utah, told Long last July that Utah had reinvested 95 percent of projected savings to pay Chevron and had exceeded their estimated savings with the new Chevron systems.
"We've taken a risk," Green said, referring to the 20-year debt the bond issue created. "But it looks like a good risk to me."
The risk does come with its drawbacks, Green said.
To help pay for the debt, University administration will remove $108,000 from Facilities Operations' annual budget.
The money will come primarily from the electricity and refrigeration and air conditioning budgets, Green said.
mgbudget,
Those budgets combined
equaled just less than
$190,000.
Long calls the budget reductions "savings" because the new equipment means it will require less maintenance in the future.
But Chevron didn't revamp all electrical and cooling systems on campus.
If something breaks down or needs repairs, the money will either come from other areas of Facilities Operations' budget or be deferred again, Green said.
"It's a little staggering to think about," Green said.
FATALITY: Hit and run results in one death
Edited by Meghan Brune
Sigma Nu president Jason Watson said some of the people involved in the incident attended the party, but could not say in what capacity.
CONTINUED FROM PAGE 1A
Sigma Nu is on probation for a hazing incident earlier this academic year.
Richard Johnson, associate vice provost and dean of students, issued sanctions against Sigma Nu in early October.
As conditions of the probation, Sigma Nu must complete a five-point program including a written report and educational meetings.
meetings. The chapter also may not host or attend any social functions with alcohol until June 2004.
Sorority and fraternity presidents received an e-mail this
afternoon from Stephanie LeClaire, Shawnee junior and vice president for public relations for Panhellenic Association, and Clint Jones, Troy junior and vice president for public relations for Interfraternity Council.
The e-mail instructed all members not to talk about the accident, especially to the media.
LeClaire and Jones both
refused to comment.
Johnson would not comment on the investigation.
Douglas County deputies are investigating the hit and run further and will not have more information until later today.
Tate said she encouraged anyone with any information regarding the incident to call 832-5226 or the Crime Stoppers hotline at 843-TIPS.
- Edited by Cindy Yeo
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