Board of Regents

Minutes

Capital Planning and Budget Committee

Thursday, October 8, 2010

Capital Planning and Budget Committee Chair Regent Bartell convened the joint meeting of the Business, Finance, and Audit and the Capital Planning and Budget Committee at 1:02 p.m. in Room 202 of the Reeve Union.  Committee members present were Regents Bartell, Loftus, Manydeeds, Smith, Falbo, Bradley, Walsh, Wingad, and Womack.

I.3.a.    UW-Oshkosh Presentation:  “UWO Foundation/UW-Oshkosh; Partners in Progress and Campus Master Plan Update”

Vice Chancellor Tom Sonnleitner updated the Committee about major themes of the Campus Master Plan that include better circulation, sustainability, and parking strategies.  UW-Oshkosh Foundation President Arthur H. Rathjen explained the Foundation’s partnership with the university in raising awareness, building relationships, and expanding resources.  The foundation assists through scholarships, expands opportunities for collaboration, and commits resources to raise funds for the support of building projects.

The presentations highlighted the new academic building now under construction and the recently completed Titan Stadium.  The foundation completed the renovation of Titan Stadium through a joint agreement with the Board of Regents and will turn over the completed project to the university this year.

The joint meeting adjourned at 1:34 p.m.

The Capital Planning and Budget Committee reconvened at 1:45 p.m. in Room 306 in the Reeve Union.  Present were Regents Bartell, Loftus, and Manydeeds.  Regent S. Davis joined via telephone.

I.3.b.   Approval of the Minutes of the August 19, 2010 Meeting of the Capital Planning and Budget Committee

Upon the motion of Regent Loftus and the second of Regent Manydeeds, the minutes of the August 19, 2010 meeting of the Capital Planning and Budget Committee were approved as presented. 

I.3.c.    UW Colleges:  Authority to Revise the UW-Sheboygan Lease

This item requested authority to revise the lease for the UW-Sheboygan campus between the UW System Board of Regents and Sheboygan County to reflect the current operating arrangement, land boundaries, and the recent co-location of Sheboygan County Cooperative Extension within campus buildings.

The revisions to the lease were requested by Sheboygan County and are supported by the UW‑Sheboygan Dean and UW Colleges Chancellor.  The revisions include numerous technical corrections to update the 1970 lease and two of the significant changes include: (a) returning 7.39 acres to Sheboygan County under the authority given to the county in the original lease, and (b) details regarding how certain operating costs and building space will be shared between Sheboygan County Cooperative Extension, Sheboygan County, and UW‑Sheboygan.

Upon the motion of Regent Loftus and the second of Regent Manydeeds the Committee approved Resolution I.3.c.

Resolution I.3.c.

That, upon the recommendation of the UW Colleges Chancellor and the President of the University of Wisconsin System, the authority be granted to revise the lease for the UW-Sheboygan campus between the UW System Board of Regents and Sheboygan County to reflect the current operating arrangement, land boundaries, and the recent co-location of Sheboygan County Cooperative Extension within campus buildings.

I.3.d.   UW-Madison:  Approval of the Design Report of the Kohl Center Addition Hockey/Swimming Facility Project and Authority to Construct the Project

This item requested approval of

The addition constructed by this project will provide a permanent home for the men’s and women’s hockey program, and men’s and women’s swimming program.  The project will construct a three-level 66,850 ASF/102,800 GSF addition to the Kohl Center that includes a 92’ by 200’ ice sheet for men’s and women’s hockey practice and women’s hockey competition, seating for approximately 2,400 spectators, men’s and women’s team locker rooms, a visitor locker room, a women’s hockey office suite, and associated support spaces.  The project also will include locker and team room functions for the men’s and women’s swimming programs.  These facilities will be connected by a skywalk to the Southeast Recreation Facility (SERF). 

The Hockey/Swim facility will connect underground to the Kohl Center, which will be remodeled to accommodate the connection.  The remodeling work will include relocation of the men’s basketball locker suite to space that is vacated by the men’s hockey locker suite, expansion of the training room facilities, and expansion of the laundry/equipment-issue facilities to accommodate the additional occupants of the complex.

Athletics has incorporated both the debt service and ongoing operational expenses associated with the Hockey/Swim project into their long-term financial plan.  The Division of Intercollegiate Athletics will pay for debt service with a variety of revenue streams, including, but not limited to:  general operational dollars including ticket revenues; anticipated increases in conference revenue associated with the profitability of the Big Ten Network; conference expansion; and income from a projected football conference championship game.  Other potential revenue streams such as a renewed contract with an athletic apparel provider and increases in multi-media rights agreements may also be utilized.

UW System Associate Vice President David Miller and UW-Madison Associate Vice Chancellor Alan Fish describe the physical and programmatic aspects of the project to the committee with architectural renderings of the building and site.  Mr. Fish also commented that the program revenue bonding will be transferred from unused bonding authority from the University Ridge Golf Course.

Regent Loftus asked what changed at University Ridge that allowed the bonding to be transferred.  Mr. Fish explained that when the bonding was authorized in 2001-03 the course envisioned adding second 18-hole course.  Since then the business plan has changed and course improvements to the existing course have been made and a second course is not planned.

Regent Manydeeds asked how the requested bonding had been used since the project enumeration.  Mr. Miller responded that when a project is enumerated the legislature only authorizes bonding amounts, but the actual bonds are not sold until a project is designed and the design report is approved by the Regents and the Building Commission.  In this case the authorized bonding has never been issued.

Upon the motion of Regent Loftus and the second of Regent Manydeeds the Committee approved Resolution I.3.d.

Resolution I.3.d.

That, upon the recommendation of the UW-Madison Chancellor and the President of the University of Wisconsin System, the Design Report of the Athletics Hockey/Swimming Facility project be approved and authority be granted to (a) substitute $9,000,000 existing Program Revenue Supported Borrowing for $9,000,000 previously enumerated gift funds, and (b) construct the project at a total estimated project cost of $27,787,000 ($18,787,000 Gift Funds and $9,000,000 Program Revenue Supported Borrowing).

I.3.e.    UW-Platteville:  Approval of the Design Report of the Porter Residence Hall Renovation Project and Authority to Seek a Waiver to Allow for Single Prime Bidding and Construct the Project

This item requested approval of the Design Report of the Porter Residence Hall Renovation project and authority to: (1) seek a waiver of Wis. Stats s.16.855 under the provisions of s.13.48 (19) to allow single prime bidding and (2) construct the project for a total cost of $4,776,000 Program Revenue Supported Borrowing.

This project will renovate Porter Residence Hall, which is a 265-bed, 54,445 GSF facility that was constructed in 1965.  The project will provide lighting and accessibility upgrades and replace all closet side panels, slide-by windows, and resident room and lower level doors and associated hardware.

The hot-water radiant heat system will be replaced with a four-pipe system that will incorporate hot water and chilled water for future air conditioning  Carpeting will be replaced and resident rooms will be repainted.  Existing electrical and data connections will be upgraded and additional wireless access points will be provided for security cameras and card access.  The fire alarm system will be upgraded and a fire suppression system will be installed.

Exterior modifications will address storm water drainage problems, the south entrance area will be regarded, and new storm water management devices will be implemented. 

This item is requesting authority to seek a waiver for the use of single prime bidding because the project’s critical time schedule.

The projected rates of the double-occupancy rooms for 2010-11 are $3,106 per academic year.  In 2011-12, it is anticipated that all room rates will increase by 4%.  There will be an 8% increase in 2012-13, and an 8% increase in 2013-14 for the future phases of the residence hall upgrade projects that are expected to be enumerated for 2011-13.

Mr. Miller explained that this project was similar to four residence halls at UW-Stevens Point, of which three have been completed.

Regent Bartell asked if this was the first of a series of residence halls and how many were planned.  UW-Platteville Assistant Chancellor Robert Cramer responded that at least four more residence halls were planned with this same scope of work and cost in the next biennium. 

Regent Loftus commented that the student population of the System has grown overall and combined with the growth agenda that housing would need to grow as well.  Regent Bartell asked whether the campus had adequate housing to support student requesting to live on campus.  Mr. Cramer commented that the campus population has grown significantly and the campus would need to add student beds in the near future and improve the mix of room style offered.  The campus has one suite-style hall now.  Mr. Miller said that not all enrollment growth anticipated through the growth agenda was traditional students living on campus.  He said that significant enrollment growth was planned online education and non-traditional students.

Upon the motion of Regent Loftus and the second of Regent Manydeeds the Committee unanimously approved Resolution I.3.e with the exception of Regent Davis, who did not vote due to a business conflict of interest.

Resolution I.3.e.

That, upon the recommendation of the UW-Madison Chancellor and the President of the University of Wisconsin System, the Design Report of the Porter Residence Hall Renovation project be approved and authority be granted to: (1) seek a waiver of Wis. Stats s.16.855 under the provisions of s.13.48 (19) to allow single prime bidding and (2) construct the project for a total cost of $4,776,000 Program Revenue Supported Borrowing.

I.3.f.    UW System:  Authority to Construct All Agency Maintenance and Repair Projects

This item requested authority to construct various maintenance and repair projects at an estimated total cost of $19,709,900 ($5,944,500 General Fund Supported Borrowing; $12,284,200 Program Revenue Supported Borrowing; and $1,481,200 Program Revenue-Cash).

            Energy Conservation

EAU - Multi-Building Energy Conservation ($3,631,000):  Project work will include the implementation of eight buildings (Brewer Hall, Hibbard Hall, Kjer Theater, McPhee Physical Education, McPhee Physical Education – Ade Olson Addition, Phillips Hall, Schneider Hall, and Zorn Arena) totalling approximately 720,000 GSF, and also some general campus-wide opportunities in twenty-one other campus buildings.  The project will install a new air handling unit for the animal laboratory in Hibbard Hall and implement a new PC power management system.

MIL - University Services and Research Building Energy Conservation ($2,449,000): Project work will include implementation of four energy conservation measures throughout the University Services and Research Building.  The project will retro-commission all HVAC and mechanical systems, retrofit air distribution systems with new occupancy sensors, and install a new university owned chiller unit to replace the chilled water services purchased through an auxiliary entity.

PLT - Multi-Building Energy Conservation ($4,229,000): Project work will include the implementation of a wide range of energy conservation measures throughout ten buildings (Brigham Hall, Center for the Arts, Gardner Hall, Giese Facility Management Building, Karrmann Library, McGregor Hall, Ottensman Hall, Pioneer Student Center, Royce Hall and Williams Fieldhouse) totalling approximately 700,000 GSF, and some general campus-wide opportunities.  This project will recommission building systems in the affected buildings, replace the domestic hot water heating unit in Brigham Hall, install occupancy ventilation controls in the Pioneer Student Center conference rooms, install new renewable energy systems, and install an electronic campus dashboard that will record campus energy usage.

STP - Heating Plant Condensate and Feedwater Pump Improvements ($58,100 increase for a total project cost of $205,400):  This request will increase the project scope and budget as recommended by the design consultant.  The scope enhancements will provide superior operating efficiencies and lower operating costs.  The debt service will be paid back from the annual energy savings from the fuel and utilities appropriation (Fund 109).

Project work will replace two feed water pumps and three condensate pumps with new high efficiency variable frequency drive (VFD) pumps; repair one feed water turbine; and install a new human machine interface (HMI) control panel to operate the VFDs.

            Facilities Maintenance and Repair Requests

OSH - Kolf Physical Education Bleacher and Flooring Replacement ($1,475,200): This project will replace the original telescoping bleacher system, install a new synthetic sport flooring system, and refinishe the athletic wood flooring system in the field house.  Approximately 43,700 SF of new synthetic sport flooring system will be installed over the existing synthetic sport flooring system. 

PKS - Multi-Building Exterior Envelope Maintenance and Repair ($593,300): This project will correct exterior building envelope deficiencies at Facilities Management Center, Greenquist Hall, Heating and Chilling Plant, Molinaro Hall, Sports & Activity Center, Student Center, Tallent Hall, University Apartments, and Wyllie Hall.  All sealants will be replaced on some walls or areas of all buildings and tuckpointing will be performed on all buildings.  Project work will include replacing glazing compound on all exterior windows, replacing select exterior doors, resealing all skylights, installing new roof safety anchors, repairing concrete fascias, repairing glazed curtain walls, repairing cracks in the campus skywalk, waterproofing underground utility tunnel structures, and reconstructing concrete pedestrian walkways.

            Utilities Repair and Renovation Requests

EAU - Chippewa River Bridge Repair ($100,000 increase for a total project cost of $306,000): 

LAX - Heating Plant Boiler No. 3 Replacement ($2,295,000): This project will replace Boiler No. 3 and its associated stack in the Heating Plant.  Project work will include replacing the 25,000 lbs/hr summer boiler with a new higher efficiency 30,000 lbs/hr natural gas boiler. 

MIL - East Substation Breaker Replacement ($1,352,000 increase for a total project cost of $3,925,400):  This request will increase the scope and budget to fund the replacement and expansion of the East Substation 5 kV distribution system based on the Campus Master Plan study and the consultant’s suggested options for expansion.  The scope will be increased to allow replacement of the two 5 kV sheltered aisle switchgear units that house six feeder breakers with two new 5 kV sheltered aisle switchgear units that house 10 feeder breakers.    

MSN - Pit 17/9 to School of Veterinary Medicine Steam and Condensate Box Conduit Replacement ($102,700 increase for a total project cost of $252,060):  This request will increase the project budget and scope to address unforeseen conditions encountered during construction.  This increase is needed to complete the originally approved project intent. Project work will include installing a new concrete box conduit in lieu of replacing 124 LF of existing concrete box conduit between Pit 17/9 and the School of Veterinary Medicine. 

OSH - Campus Storm Water Improvements ($856,000):  This project will install biofiltration devices to 12 parking lots and near two pedestrian plaza areas in compliance with the UW‑Oshkosh Wisconsin Pollutant Discharge Elimination System (WPDES) storm water discharge permit. 

STP - Steam and Condensate Return Laterals Replacement ($2,568,600): This project will replace fifteen sections of underground steam conduits serving various campus facilities, that were originally installed within steel jackets, cast iron casings, and insulating concrete (Z-Crete).  New concrete box conduits will be constructed to enclose the replacement steam and condensate piping sections, reusing the steam piping where possible. 

Upon the motion of Regent Loftus and the second of Regent Manydeeds the Committee unanimously approved Resolution I.3.f.

Resolution I.3.f.

That, upon the recommendation of the President of the University of Wisconsin System, authority be granted to construct various maintenance and repair projects at an estimated total cost of $19,709,900 ($5,944,500 General Fund Supported Borrowing; $12,284,200 Program Revenue Supported Borrowing; and $1,481,200 Program Revenue-Cash).

I.3.g.    Report of the Associate Vice President

Associate Vice President David Miller reported that the building commission approved about $162M for projects at its September meeting.  The funding breakdown for those projects is $74M General Fund Supported Borrowing, $21M Program Revenue Funds, and $67M Gift Funds.

Miller presented the committee with copies of a report that was requested by the State Building Commission regarding the impact of capital projects on the cost of housing.  The report examines university policy regarding housing for students during their university education; the impact of capital projects on the cost of housing; and the impact on students of various economic means.  The report concludes that capital projects do not have a significant impact on the cost of housing, and given the market prices in many areas, actually help to maintain affordability.

I.3.h.   Additional items which may be presented to the Committee with its approval

No additional items were presented to the Committee.

I.3.i.     Closed session for purposes of considering personal histories, as permitted by s.19.85(1)(f), Wis. Stats., related to the naming of facilities at UW-Madison and UW-Platteville

Upon the motion of Regent Manydeeds and the second of Regent Loftus the Committee adjourned to closed session at 2:30 p.m.  Regents Bartell, Loftus, and Manydeeds were present.  Regent S. Davis joined via telephone.

The closed session concluded at 2:53 p.m., at which time the meeting was adjourned.