CAPITAL PROJECTS

Ayers Hall Renovation

General Contractor, Chorba Contracting, is making significant progress on this project with their new mechanical subcontractor, Modern Heating & Air Conditioning of Gadsden. Chorba is committed to expediting the construction schedule in order to complete this project in a timely manner. A realistic completion date is early May 2005. Overall completion percentage is 86%.

Multi-Purpose Building - Kennamer Hall

The Athletic Department moved in and is occupying the newly completed building. Several punch list items remain to be completed or resolved but all parties are aggressively working to correct the outstanding issues with the magnificent facility. Dedication is scheduled for the April 18^th Board of Trustees meeting.

McClellan Building 3181

Dawson Building of Rainbow City completed Gadsden State’s wing and they are in full operation. The Police Academy moved into their space in late December and started holding classes this month. On December 21, 2004, the final inspection occurred with the State Building Inspector. Outstanding punch list items and change orders are being worked on in order to complete the facility and make ready for JSU’s occupancy.

Library Interior Improvements

Hudak & Dawson Contracting is approximately 98% complete on this project. Several outstanding electrical items remain uncompleted and change order items remain to be accomplished before the project is completed.

Field House Renovations

Hudak & Dawson have made significant progress on the exterior of the building especially the front entrance area. Demolition and renovation are in-process on the main floor for the new meeting/hospitality area facing the field. Cost estimates from the contractor for proposed change orders were received on January 4, 2005 for the rear porch extension, underneath enclosure and upgrade to upstairs area.

The cost estimate for the porch extension work exceeds the preliminary planning estimate by a significant amount. This estimate will require further evaluation and review. The porch extension and enclosure of the underneath area for usable space, have increased the scope of work and associated cost. If accepted, additional work can be incorporated into a change order for the project. If rejected, the original scope of work for the contract will be completed and rejected portion re-bid at a later date.

Little River Canyon Field School

Funding from NASA was appropriated and authorized for use in the amount of $1.8M. FY 04 and FY 05 additional funding requests are pending release and/or approval in the amount of $1.0M and $3.5M respectfully. The entire project scope and construction documents are being developed by the architect in concert with Mr. Pete Conroy’s office and National Parks Service. The substantial funding, which has been approved, allows the entire project to be designed, bid and constructed without phases as originally discussed.

Roof Replacement 2002

The contractor has inspected and reviewed the problems with the facility on their visits. To date, no remediation effort has been accomplished.

Chimney Peak Observatory

Design work by the architects should be completed by mid-February. The telescope is scheduled to be moved to campus before the end of January. Vandalism at the site has subsided appreciably. An appraisal for an additional acre of land at the site has been completed. Discussions with the property owner have not been initiated.

UNIVERSITY ACTIVITIES

Spring Enrollment Report

Headcount enrollment this spring ‘05 semester was 18 students below last spring ’04. However credit hours taken increased by 3,931. This translates into students taking more classes than last year. So much more that the additional credit hours equal 261 undergraduates and 87 graduate students. This is equivalent to an increase of 348 students.

Housing Report

University Housing reported residence hall occupancy for Spring Semester 2005 is 80%. Apartment occupancy rate is 96%. Spring occupancy rate for houses is 100%. Specialty housing is 90%. Overall occupancy average for Spring 2005 is 82% above last Spring ‘04 rate of 79%.

Governmental Affairs

State

The Council of College and University Presidents and the Alabama Commission on Higher Education presented to the Alabama Legislature and the first unanimous Unified Budget Request for the Education Trust Fund since 1988. All two year and four year institutions agreed on a budget request that would increase higher education funding to $138, 230,921 or 11.62%.

The Council and Commission adopted the following principles to be used in guiding funding for fiscal year 2005-2006:

1. That each institution receives its last year’s total appropriation as its base. Monies previously associated with Knight v. Alabama, except for Alabama State University, for which the Court still requires certain line item funding, were into the base.

2. New monies to be distributed as follows (not in priority order):

· Employee Compensation increases be 4% or that the increase be at the same level as that received by K-12.

· Fully fund mandated health insurance (PEEHIP) and retirement rate increases (two and four-year institutions).

· Fully fund mandated retirees’ health insurance costs for public senior institutions not currently enrolled in PEEHIP. [ Athens State University and Jacksonville State University, currently enrolled in PEEHIP will receive funds to cover PEEHIP rate increases.]

· An amount to make the percentage increase recommended for two-year colleges equal to the four-year percentage increases.

3. Participation in development of an education bond issue.

Under this recommendation Jacksonville State University’s budget would be $33,648,294 a 9.95% increase. Whether or not this years budget recommendations will be successful will be determined by the Legislature and Governor Riley when this year’s legislative session begins February 1^st with the presentation of the Governors Education Budget. Dr. Paul Hubbert and the Alabama Education Association have requested a 7% pay raise for K-12 teachers. Although the Education Trust fund has a budget surplus of approximately $564 million there is not enough money to meet the requests of all segments of education. The promise of an interesting legislative session is assured.

Federal

We are very pleased to announce that Jacksonville State University will be receiving Federal transportation funds of approximately $3 million. The Department of Technology and Engineering will be receiving $1 million and the University will receive $2 million for the development of an on campus transportation system. The City of Jacksonville and the East Alabama Regional Planning Commission have begun discussions of how they might work together to develop a transportation system linking the city and other areas to the University. The first of these funds are expected to be appropriated by June of this year. We want to express our appreciation to all our Congressional legislators for assistance in acquiring these funds.

Academic Affairs Report

I would like to ask Dr. Turner to present the Academic Affairs report.

Division of Information Technology

Jacksonville State University has always been fortunate to have been at the cutting edge of data management. We are now facing the need to acquire new software that will be the basis for all university administrative and academic computing systems for the next ten to twenty years. I have asked Mr. Randy Harper, Executive Director of Information Technology to provide a briefing of the need, impact, and expenditure required for this next generation of software.

Institutional Advancement Report

I will now call on Vice President Joe Serviss for an update from his division.

Mr. Chairman that concludes my report unless you or the Trustees have further questions.