September 25‑26, 2003

ITEM 120-2012-R0903  Authorization to Utilize Short Term Loans for the Implementation of a Multi-Year Information Technology Infrastructure Replacement Plan; Montana State University

THAT: The Board of Regents of the Montana University System authorizes Montana State University to utilize short term loans, for those thirteen (13) individual projects specified in Attachment #1, in order to initiate the Universitys multi-year Information Technology Infrastructure Replacement Plan.

EXPLANATION: At its May 29 meeting the Board of Regents authorized Montana State University to establish a mandatory Information Technology Fee at each of its campuses. The Board Item for the May meeting included the University's 23-page, 10-year, IT Infrastructure Replacement Business Plan.

The purpose of this Fee is to provide a significant portion of the long term funding necessary to implement and sustain the University's multi-year plan for lifecycle replacement and enhancements of the University's and campuses' existing investment in central computing, network equipment, software, cabling, and computer room environmental control equipment.

Although the new IT Fee will not become effective until FY07, the Board of Regents' approval was secured in May so that the University could finalize its business plans and begin securing lines of credit to initiate the Plan in FY04.

The most likely sources of short term loans for Montana State University are GE Capital Finance and Intercap loans from the Montana Board of Investments; and, it is the policy of the Montana Board of Investments to require a signed endorsement from the Office of the Commissioner of Higher Education for loans such as these.

Because its IT Infrastructure Replacement Plan is based upon a continual flow of short term loans, the University believes that it will be a good business practice to request Regent approval of a package of short term loans each fiscal year.

The following document (Attachment #1) itemizes the thirteen (13) individual IT infrastructure replacement/enhancement projects, and their necessary short term loans, that are planned for the next 18 months. The items directly reflect the Business Plan that was presented to the Regents at their May meeting.

 

ATTACHMENT:   Montana State University IT Infrastructure Replacement Plan