ࡱ> ` cbjbj 8BZ\6 6 6 6 ...BWWW8"X\~X|BhYY(.Y.Y.YZZZGIIIIII$`hȖm.8fZZ8f8fm6 6 .Y.Yg:nnn8f6 \ .Y..YGn8fGnnR.Ӑ.YX ڱ:W g  <<)Th|T<ӐT.Ӑ8Z;^n`bQZZZmmn^ZZZ8f8f8f8fBBB(&BBBB&BBBB6 6 6 6 6 6  Agenda Board of Regents Facilities and Land Management Committee *Thursday, December 8, 2005; 9:00 a.m. 12:00 noon Room 107 University Commons University of 91ֱAnchorage Anchorage, Alaska *Times for meetings are subject to modification within the December 7-8, 2005 timeframe. Committee Members: Michael Snowden, Committee Chair Cynthia Henry Robert Martin Joseph E. Usibelli, Jr. Mary K. Hughes Brian D. Rogers, Board Chair I. Call to Order II. Adoption of Agenda MOTION "The Facilities and Land Management Committee adopts the agenda as presented. Call to Order II. Adoption of Agenda Full Board Consent Agenda A. Formal Project Approval for the State Virology Lab Building IV. New Business A. Formal Project Approval for the UAA Kenai Peninsula College Campus Ward Building Classroom Addition for MAPTS B. Ex Post Facto Total Project Cost Increase for UAF Yukon Flats Classroom Addition V. Ongoing Issues A. Status Report on University Investments in Capital Facilities, Construction in Progress, and Other Projects B. Update on IT Issues C. Status Report on a Utilities Development Plan at University of 91ֱFairbanks Campus VI. Future Agenda Items VII. Adjourn This motion is effective December 8, 2005." III. Full Board Consent Agenda A. Formal Project Approval for the State Virology Lab Building Reference 14 The President recommends that: MOTION The Facilities and Land Management Committee recommends that the Board of Regents approves the Formal Project Approval request for the State Virology Lab Building as presented, and authorizes the university administration to proceed through Schematic Design not to exceed a Total Project Cost of $25,700,000. This motion is effective December 8, 2005. POLICY CITATION In accordance with Regents Policy 05.12.04.C.1, Formal Project Approval (FPA) represents approval of the Project including the program justification and need, scope, the Total Project Cost (TPC), and funding plan for the project. Schematic Design Approval (SDA) represents approval of the location of the facility, its relationship to other facilities, the functional relationship of interior areas, the basic design including construction materials, mechanical, electrical, technology infrastructure, and telecommunications systems, and any other changes to the project since Formal Project Approval. Projects with an estimated TPC of in excess of $4.0 million will require approval by the board based on recommendations from the Facilities and Land Management Committee (F&LMC). Paragraph A in the cited policy defines, in general, capital projects that are subject to the approval policy and outlines the procedures to be followed. The Administration has interpreted this language to include projects to be sited on university property that are not owned by the university, owned but not occupied/used by the university, or partially occupied/used by the university. Furthermore, the level of detail required by the respective MAU for Board approval shall be prescribed by the Administration on a project-by-project basis relative to the financial/managerial involvement of the MAU. RATIONALE AND RECOMMENDATION Background The 91ֱState Public Health Virology Laboratory (a.k.a. State Virology Lab) provides a state-wide viral diagnostic service that aids in the diagnosis and surveillance of human viral diseases of public health importance. The lab is currently located in the Arctic Health Research Building (AHRB) on the West Ridge portion of the Fairbanks campus, spread out among several areas in this sprawling, 44 year-old facility. A new building is being planned to replace the current overcrowded and outdated leased space. An out-year capital request (FY09) will fund the programming, design and construction of backfilling the vacated lab space in the AHRB. The board was updated on the conceptual planning at the February 2005 meeting and presented with several alternatives being considered by the parties. The plan matured and became a project when the State Virology Lab was funded during the FY06 legislative session. The University of 91ֱand the State of 91ֱDepartment of Administration executed a Land Lease Agreement, effective October 7, 2005, that leases approximately 18,000 square feet of land to the State for the purpose of constructing, maintaining and operating a State Public Health Laboratory. This is located east of Sheenjek Drive, and north of and adjacent to the Biological Research and Diagnostics (BiRD) facility, currently under construction on the UAF campus. The period of the lease is 25 years, from October 1, 2005, through September 30, 2030 with two 10-year option extensions. The new facility will be owned and primarily occupied by the State of 91ֱDepartment of Health and Social Services (ADHSS). The State of 91ֱDepartment of Transportation and Public Facilities (ADOT/PF), on behalf of and in conjunction with UAF and ADHSS, will manage the planning, design and construction of the facility. A Project Agreement, describing the duties and responsibilities of all three parties, with respect to planning, design, construction, and financing, was executed on October 7, 2005. A Collaborative Use Agreement, describing the duties and responsibilities of UAF and ADHSS, with respect to research, operations and maintenance, was executed on October 6, 2005. Project Scope The new building proposed for the State Virology Lab will be an approximately 30,000-to-40,000 gross square feet (GSF) facility constructed on two levels of approximately equal size. It will be located directly adjacent to, and adjoining, the north side of the new BiRD facility, which is currently under construction. This location will foster opportunities for collaboration between State and UAF researchers regarding diagnostic activities related to animal and human health. The consultant selection process is currently underway and, under the management of ADOT/PF, is scheduled to be completedincluding fee negotiation and contract awardin March 2006. The geotechnical report prepared for the site recommended deep excavation and removal of unsuitable soils and the incorporation of a deep basement. Taking this into account, the two levels proposed will be ground floor and a basement. Early conceptual programming for the facility indicated the State only needed about half of the full area of the basement footprint for mechanical/electrical equipment rooms and storage. This opened the possibility of horizontal expansion for UAF adjacent to its BiRD facility. Further joint development of the conceptual plans now identify approximately 9,200 GSF that will be made available for exclusive use by UAF for future expansion of its research endeavors. UAF is committed to pay $1.5 million for its pro rata share of the cost to design and construct the building. Current funding is sufficient to construct this area as "shelled" or unfinished space (concrete walls and floor with infrastructure for future completion). The FY07 capital budget request includes $2.5 million to build out, equip and furnish this space. Approval by the Board formally authorizes the ADHSS to proceed with the design of the project through completion of the Schematic Design Phase, and authorizes the administration to proceed with its financial and administrative commitments of this project through the same Schematic Design Phase. The administration recommends that the Board approve this Formal Project Approval as presented. Prior Approvals or Actions Board Information Item February 2005 Preliminary Administrative Approval March 2005 Approval of Land Lease for State Virology Building on UAF Campus August 2005 Funding in hand: FY06 Municipal Bonds authorized by SB73 $24,200,000 (ADHSS portion) SW Working Capital Bridge Loan to UAF $1,500,000(UAF portion) The UAF portion will be repaid through proceeds of a future university revenue bond issuance. Schedule for completion: Design Commencement March 2006 Schematic Design May 2006 Construction Documents February 2007 Construction Contract Award April 2007 Construction Completion December 2008 The Land Lease Agreement, Project Agreement and Collaborative Use Agreement are included as Reference 14. IV. New Business A. Formal Project Approval for the UAA Kenai Peninsula College Campus Ward Building Classroom Addition for MAPTS Reference 15 The President recommends that: MOTION The Facilities and Land Management Committee approves the Formal Project Approval request for the UAA Kenai Peninsula College Campus Ward Building Classroom Addition for MAPTS as presented, and authorizes the University administration to proceed through Schematic Design not to exceed a Total Project Cost of $3,000,000. This motion is effective December 8, 2005. POLICY CITATION In accordance with Regents Policy 05.12.04.C.2, Formal Project Approval (FPA) represents approval of the Project including the program justification and need, scope, the Total Project Cost (TPC), and funding plan for the project. Schematic Design Approval (SDA) represents approval of the location of the facility, its relationship to other facilities, the functional relationship of interior areas, the basic design including construction materials, mechanical, electrical, technology infrastructure, and telecommunications systems, and any other changes to the project since Formal Project Approval. Projects with an estimated TPC of in excess of $2.0 million but not more than $4.0 million will require approval by the Facilities and Land Management Committee (F&LMC). RATIONALE AND RECOMMENDATION Background The Board of Regents first authorized a project to expand classroom space at the Kenai Peninsula College Campus (KPC) in October 2000. Initially this expansion was to add approximately 12,000 square feet to the existing campus to house several new KPC programs in addition to relocating the Mining and Petroleum Training Services (MAPTS) to the main campus. The 2002 General Obligation Bond provided $850,000 for the expansion and by combining several other funding sources, the first phase of this work (three new classrooms totaling 2,200 square feet plus 2 new offices) are currently being constructed on the southwest side of the Ward Building. Completion of this work is anticipated by late December 2005. In keeping with the campus strategic plan, the next step is to move the MAPTS program from their 4,000 square feet of leased space to the main campus where co-location will give the program access to campus infrastructure and resources. $3.0 million has been appropriated by the Legislature in the approved FY06 Capital budget for this purpose. The MAPTS program is currently housed in an off-campus leased facility. Once this project is completed, this space will be vacated and the monies currently allocated to rent will be re-allocated to pay for operating the new facility. Project Scope This project includes design and construction of a 6,500 GSF addition (approximately) to the existing Ward Building on the Kenai Peninsula College Campus. At this time, it is anticipated that this addition will be located just south of the new classrooms and offices currently being constructed and will tie in to the Ward/Goodrich Building. This addition will be programmed for additional classroom/seminar space and will also include areas for a shop and storage. Approval by the board formally authorizes the administration to proceed with design through completion of the Schematic Design Phase. The administration recommends that the Facilities & Land Management Committee approve this Formal Project Approval as presented. Prior Approvals or Actions Preliminary Administrative Approval Waived Funding in hand: FY06 Capital appropriation $3,000,000 Schedule for completion: Design Commencement December 2005 Schematic Design February 2006 Construction Documents March 2006 Construction Contract Award April 2006 Construction Completion December 2006 The Formal Project Approval and the Project Agreement are included as Reference 15. B. Ex Post Facto Total Project Cost Increase for UAF Yukon Flats Classroom Addition Reference 16 The President recommends that: MOTION The Facilities and Land Management Committee agrees to provide an ex post facto Total Project Cost Increase for the University of 91ֱFairbanks Yukon Flats Classroom Addition project from $1,560,000 to $2,225,000 in order to correct a technical error to the previous approval level. This motion is effective December 8, 2005. POLICY CITATION In accordance with Regents Policy 05.12.04.I.2: Approval levels required for changes in the sources of funds, increases in budget, or Material Changes in project scope identified subsequent to Schematic Design Approval shall be determined by the universitys chief finance officer based on the extent of the change and other relevant circumstances. This determination requires judgment, but will generally be based on the nature of the funding source, the amount, and the budgetary or equivalent scope impact relative to the approved Budget at the Schematic Design Approval stage, and assigned as follows: Changes with an estimated impact in excess of $0.4 million but not more than $1.0 million will require approval by the Facilities and Land Management Committee. RATIONALE AND RECOMMENDATION The Yukon Flats Training Center Addition project adds 2,688 GSF of classroom and computer lab space to the existing facility. Originally, the project was estimated to cost $1,560,000 and received Schematic Design Approval in December 2001. It was designed and bid in 2002 as a three-part project: raising the existing building four feet above grade, adding two classrooms and a computer lab, and constructing a 10-bed dormitory. The low bid was more than $700,000 over the available budget and the project was put on hold. A second attempt to bid a portion of the project (raising the existing building) resulted in an unsatisfactorily high bid and was rejected. A two-year hiatus included down-sizing/reorganizing the project scope and seeking/receiving additional funding. In the meantime, a project to improve the ventilation to the crawl space was accomplished and eliminated the need to raise the existing building. Likewise, the dormitory component of the original project was eliminated by a successful alternative solution housing was provided by leasing space in a third-party development project. The MAU re-submitted the project for approval in December 2004 with a new Total Project Cost (TPC) budgeted at $2,225,000. It was unclear whether this new approval should be considered a material change, a TPC Increase request, or a new Schematic Approval request. It was submitted as a new Schematic Approval with a TPC of $2,225,000 this was within the approval purview of the Chair of the F&LMC. This approval was granted by Regent Demeksa on December 11, 2004. A recent audit of this project discovered that, since the general scope of the project remained the same, this should have been considered a material change rather than a new schematic approval. The appropriate approval of a material change and an increase in TPC of $665,000 should have been from the Facilities & Land Management Committee, not the Chair. Passage of this motion will rectify that technical error. The project is currently in the final construction phase and is approximately 98% completed. The project is near completion and within the approved schedule and budget. CURRENT FUNDING Economic Development Administration Grant $1,200,000 Series L Bonds Issued in 2003 $ 460,000 Title III Grant $ 500,000 CRA Contribution $ 65,000 TOTAL $2,225,000 The previously approved Schematic Design Approval is included as Reference 16. V. Ongoing Issues A. Status Report on University Investments in Capital Facilities, Construction in Progress, and Other Projects Reference 17 Associate Vice President for Facilities Richard Schointuch and campus representatives will update the committee regarding the ongoing investment in capital facilities and answer questions regarding the status report on active construction projects approved by the Board of Regents, implementation of recommendations by the external consultants, functional use survey, space utilization analysis, and other recent activity of note. This is an information and discussion item; no action is required. B. Update on IT Issues Steve Smith, Chief Information Technology Officer, will review the MyUA Enterprise Portal. The portal is designed to be one-stop entry point for students, faculty, staff and eventually all who need to interact online with the university. The portal is the facilitating technology for automation efforts taking place across the system, particularly in student services and human resources. Regents will have the opportunity to see live demonstrations of the portal at workstations set up outside the meeting rooms. C. Status Report on a Utilities Development Plan at University of 91ֱFairbanks Campus BACKGROUND The UAF energy infrastructure has served the campus well for over 30 years. Growth during the past seven years, in terms of both consumption per square foot and in the number of square feet, has stretched the ability of that infrastructure to provide reliable service to the campus. This has prompted UAF to initiate a comprehensive engineering and financial review of all utilities, with the initial and most significant deliverables being focused on energy (heat and power). The overall goal of the plan is to provide a choice of road maps for expansion of utilities to support UAF campus development for the next 20 years. UAF has the opportunity to carefully weigh the choices for future utility development and find a solution that will be viewed in the same positive light as the good utility choices made 30 years ago. UAF is currently working with Statewide Administration and retained consultants to develop a Utilities Development Plan (UDP) that will provide the framework for upgrading and expanding utilities for the next 20 years. The UDP will include the identification and evaluation of various long-term strategies that might provide the most economical utility solution (based on life cycle cost) while maintaining the reliability needs of the campus. Using real campus data provided by the joint SW-UAF working group, the scope of the consulting team was three-fold: (1) Identify and quantify immediate renewal needs for the existing utility infrastructure; (2) Propose strategies for expanding both the central plant and the distribution systems and recommend the best direction for the campus in terms of NPV and life-cycle cost analysis; (3) Evaluate the business and financial options (both capital and operating) as well as develop options for structuring an organization for the most cost-effective delivery. STATUS OF THE PLAN Immediate Needs The consultants initial findings identify approximately $60-$70M of imminent renewal needs for the existing utility system (primarily electricity distribution, steam and central facilities and distribution systems). There is a range of importance for the renewal items, but most of these items should be corrected in the near term (progressively over the next 7 years). It is important to note that these renewal elements will need to be completed to maintain the current levels of supply and reliability regardless of any increase in utility demand. This is work that must be done in addition to any future work defined in any of the three strategies being evaluated. Strategies Being Evaluated Strategies for expansion of both central facilities and distribution systems are being analyzed in detail to determine the preferred strategy. The analysis will consider growth based on the campus master plan, the six-year capital improvement plan, realistic funding expectations, different fuel types (coal, oil, and natural gas), central vs. distributed systems, self generation or purchase from GVEA, and life cycle costs (integrating capital costs with future operating cost on a Net Present Value basis). The consultants and working group identified three fundamental strategies for the analysis: Strategy 1 Individual Building Heating Systems: Install stand-alone boilers (both oil and natural gas will be considered) in new buildings and purchase all additional power from GVEA that exceeds the current plant capacity at UAF [Lowest initial cost but highest operating costs with an estimated total capital cost of $106 million over 20 years] Strategy 2 West Ridge Energy Center: Install a modularized, satellite boiler plant (both oil and natural gas will be considered) on the West Ridge to provide steam for heat and purchase all power from GVEA that exceeds the current plant capacity at UAF [Estimated to have a total capital cost of $98 million over 20 years] Strategy 3 Add to Existing Central Plant: Install a new coal boiler and steam turbine (for electrical generation) at the central plant. Increase steam pressure in existing pipes to deliver steam to the West Ridge [Lowest long-term operating and fuel cost estimated to have a total capital cost of $204 million over 20 years where the operating costs are estimated to be $5-10 million per year lower than Strategy 1] It should be noted that these estimated costs are for the energy (electric and heat) solutions only. Costs for utilidor extensions or other infrastructure needs for future growth are being developed. Business and Financial Options The UDP will evaluate options for funding utilities (both capital and operating) and various methods of structuring the organization responsible for their delivery and reliability. In general, the primary goal for the study is to identify all costs for providing the service in a sustainable manner and ensure those costs are funded on a pay-as-you-go basis. The options being considered include: Maintain the existing recharge center Create a UAF enterprise utility model Privatize through an outside utility owner/operator Combinations or permutations of these models NEXT STEPS The joint SW-UAF working group will continue to review model data input. The preliminary Net Present Value (NPV) model results will be available and reviewed by the working group in the near future. That analysis, along with the preferred strategy, will be incorporated into this information item and made available to the board at its December 7-8, 2005 meeting. The consultant team will be presenting their detailed results to the SW-UAF working group and others in Fairbanks on December 13, 2005. Updated information and reference materials of this draft report will be distributed at the December 2005 meeting, with a final document slated for a future board meeting that incorporates and addresses issues raised by the regents. This is an information item only; no action is required. 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