Spring Town Hall Meeting

Thursday, May 20

Agenda

Quick Review of Academic YearWhat is ahead 2010-14?

Shaping the FutureQuestions and Answers

Review of the Academic Year

2010 Merit Award for Excellence in Architecture for Renovation, Owen Residence Hall Renovation – Society of College and University Planning

Bronze Award – 2009 Loyal E Horton Award, Snyder Phillips Gallery, Residence Hall Dining Multi Concept

National Association of College and University Food Services

Bronze Award – 2010 Loyal E. Horton Award, Akers Dining, Residence Hall Theme Dinner – National Association of College and University

Food Services

2010 PR News Corporate Social Responsibility Award for Environmental Stewardship, Pack Up. Pitch In. Help Out. – PR News

2010 PACE Pinnacle Award for Internal Communications, The redesign of Serving State - Public Relations Society of America

2009 Overall Best of Show, Owen Hall Renovation Association of University Interior Design

2009 1st Place, Renovation, Specialty Category, Renovation Under $50,000 and Renovation $50-$150,000 – Association of University Interior Design

2009 Wine Spectator’s “Best Of” Award of Excellence, The State Room, Kellogg Hotel - Wine Spectator Magazine

2009 Santé Restaurant Award – Wine Hospitality Award (Hotel/Resort), The State Room, Kellogg Hotel - Santé Magazine

2009 Trendsetters, Michigan State University, Hooping It Up Food Service Directors, December, 2009

Review of the Academic Year

Three RHS team members accepted The Jack Breslin Distinguished Staff Award

Earl ChapmanMatt McKune

Rich Yarch

AND Just This Past Monday :

2009/2010 HighlightsFYE Holden

Integrated DiningRiverwalk Market

Owen/Mayo/Brody RenovationsCombo-X-Change

Winter Golf ProgramBrody Transitional Dining

Spartan Signature CateringCelebrate State

Serrano’s/Union Pizzeria

Economic Realities

Uncertain State AppropriationsShaping the Future

4%, 7%, 11% University GF ReductionsUniversity Layoffs

22 programs targeted for discontinuance

How does it affect us?

Interest income 0% = -$3MCost Shifting – Alumni Chapel/Cowles House

Closing of Heritage CaféClosing of Brook Lodge

Slow retail sales2010 flat or decreased apartment rates

Looking Ahead

Breslin CenterCherry Lane and Faculty Bricks

Integrated Dining

Breslin Center

Opened August 1989Joined the Division in 2002

MissionHost University Events

Commencement, convocationAthletic EventsEntertainment

Breslin Center

Student Fees support Debt ServiceGeneral Fund supports majority of utility costs

Subsidized by the Division about $3.2 Million since 2002

Breslin CenterRedefine the mission of facility

Facilities Management/Smaller StaffFocus on Athletic Events and University Events

The Wharton Center would be the primary provider for entertainment servicesClose Breslin Ticket Office

Apartments

The Tipping Point

Cherry Lane and Faculty Bricks Existing Conditions

April 2010

Faculty Bricks

Facilities Analysis conducted in 2006 by ISE Corporation Stone Mountain GA

Determination Roof and Entry Door Failure prominent, Window renovation in early 1980’s showing

wear, Exterior Brick work in fair condition with isolated issues, Asbestos typical in flooring and structural components, Interior finishes are in fair to poor condition,

Original Kitchen cabinetry worn, dated and showing excessive wear, Entries/Apartments do not meet Current Accessibility Codes, Does not meet current Fire and Life Safety

Codes for apartments/corridors/stairs/egress/emergency lighting and fire suppression systems, Complete replacement of current mechanical, electrical, plumbing and HVAC is

required to meet code, Buildings are stick frame structures with brick façade

Faculty Brick Renovation Costs

Escalated Costs to 2010 $17.11 Million Construction costs

$23.49 Million project costs$127,700 per apartment unit

Cherry LaneRenovation Costs

Escalated Cost to 2010$28.53 Million Total replacement cost

$39.66Million Project Costs$ 135,800 per apartment unit

Replacement CostsBased on 2009 Cherry Lane –Faculty Bricks Study

Hasbury , Evans, Wright, Vlattas + Company

Faculty Brick $65,000 per one bedroom unit cost$ 90,000 per two bedroom unit cost

124 one bedroom units and 60 two bedroom units$13.5 Million Construction Cost

$18.9 Project Cost

Cherry Lane $65,000 per one bedroom unit cost$ 90,000 per two bedroom unit cost

88 one bedroom units and 204 two bedroom units$24 Million Construction Cost

$33.7Million Project Costs

Implications

Original University Village Demolition – 486 units – Summer of 2006

Spartan Village Zone 1 Demolition 230 Apartment Units – Summer of 2008

Reduction represents 485 Units on 34 Acres – Summer of 2011

55% net reduction in apartments inventory since 2002

Expected Reduction of 30 % of Gross Apartment Revenues beginning Fiscal Year 2011-12

Culinary Services

The Next Three Years

Integrated Dining

Implementation Plan Goals

Provide an outstanding integrated food experience on campus

Emphasize culinary excellence

Deliver outstanding customer service

Engage in sustainable food practices

Be fiscally responsible

Enhance community development

Concurrent Construction Projects2010

Hubbard Emporium

2010-11Brody Square Phase 2

2011-12Case Dining

Wonders Emporium – Spartan Engineering

MSU Union Food Court

2012-13Shaw Phase 1 and Phase 2

West Circle Dining

Culinary Services Implications

Consolidating Residential Dining in South, East and West Circle Neighborhoods

Fiscal Year 2011-12Close McDonel DiningClose Wonders Dining

Fiscal Year 2012-13Close Yakeley Dining

What does it all mean?

Over the next three years we will reduce staff by approximately 50 FTE.

How will we move forward?Goal is to Accomplish Through Attrition

Position ManagementRetirement

Redistribution of JobsLast Resort - Limited Layoffs

“With everything changing so rapidly, the truth is a moving target.”

Employee Handbook for Organizational Change (Pg.19)

“I was gratified to answer promptly.I said I don’t know.”

Mark Twain

Questions?