Spring Town Hall Meeting

1. Spring Town Hall Meeting Thursday, May 20

2. Agenda Quick Review of Academic Year What is ahead 2010-14? Shaping the Future Questions and Answers

3. 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 Awardfor 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

4. Review of the Academic Year 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

5. AND Just This Past Monday : Three RHS team members accepted The Jack Breslin Distinguished Staff Award Earl Chapman Matt McKune Rich Yarch

7. 2009/2010 Highlights FYE Holden Integrated Dining Riverwalk Market Owen/Mayo/Brody Renovations Combo-X-Change Winter Golf Program Brody Transitional Dining Spartan Signature Catering Celebrate State Serrano’s/Union Pizzeria

8. Economic Realities Uncertain State Appropriations Shaping the Future 4%, 7%, 11% University GF Reductions University Layoffs 22 programs targeted for discontinuance

9. How does it affect us? Interest income 0% = -$3M Cost Shifting – Alumni Chapel/Cowles House Closing of Heritage Café Closing of Brook Lodge Slow retail sales 2010 flat or decreased apartment rates

10. Looking Ahead Breslin Center Cherry Lane and Faculty Bricks Integrated Dining

11. Breslin Center Opened August 1989 Joined the Division in 2002 Mission Host University Events Commencement, convocation Athletic Events Entertainment

12. Breslin Center Student Fees support Debt Service General Fund supports majority of utility costs Subsidized by the Division about $3.2 Million since 2002

13. Breslin Center Redefine the mission of facility Facilities Management/Smaller Staff Focus on Athletic Events and University Events The Wharton Center would be the primary provider for entertainment services Close Breslin Ticket Office

14. Apartments The Tipping Point

15. Cherry Lane and Faculty Bricks Existing Conditions April 2010

16. 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

17. Faculty Brick Renovation Costs Escalated Costs to 2010 $17.11 Million Construction costs $23.49 Million project costs $127,700 per apartment unit Cherry Lane Renovation Costs Escalated Cost to 2010 $28.53 Million Total replacement cost $39.66Million Project Costs $ 135,800 per apartment unit

18. Replacement Costs Based 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

19. 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

20. Culinary Services The Next Three Years

21. 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

22. Concurrent Construction Projects • 2010 • Hubbard Emporium • 2010-11 • Brody Square Phase 2 • 2011-12 • Case Dining • Wonders Emporium – Spartan Engineering • MSU Union Food Court • 2012-13 • Shaw Phase 1 and Phase 2 • West Circle Dining

23. Culinary Services Implications • Consolidating Residential Dining in South, East and West Circle Neighborhoods • Fiscal Year 2011-12 • Close McDonel Dining • Close Wonders Dining • Fiscal Year 2012-13 • Close Yakeley Dining

24. 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 Management Retirement Redistribution of Jobs Last Resort - Limited Layoffs

25. “With everything changing so rapidly, the truth is a moving target.”Employee Handbook for Organizational Change (Pg.19)

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

27. Questions?