Legislative Update No. 4
REBUILDING, RENEWING AND ENHANCING
THE UNIVERSITY OF CONNECTICUT
This FOURTH in a series of reports to Governor John G. Rowland and the Connecticut General Assembly
I. THE INAUGURATION OF A NEW ERA
II. THE UPDATE
III. ACTIVITIES COMPLETED OR UNDERWAY:
On April 17, 1997, Philip E. Austin was inaugurated as the 13th president of the University of Connecticut. President Austin addressed those gathered to celebrate the event with the following words:
The installation of a university president is less the inauguration of an individual than the rededication of an institution. It marks a point along the University’s historical path. I have called the University of Connecticut home for only six months, yet I am absolutely certain of the great potential of this University…
UConn, including the regional campuses, the Law School, and the Health Center in Farmington, is an institution that shares with all the great public universities across the United States a common tradition and a common set of assumptions about America’s future. That tradition — and those assumptions — embody three concepts that are as valid as they are familiar to people concerned with higher education. They stand at the heart of what this administration will represent. They define our future agenda.
The first is excellence in our academic programs — at the undergraduate, graduate, and professional levels, in the classrooms, the laboratories, and the libraries.
The second is access for the people of Connecticut, regardless of race, gender, national origin — or economic condition.
The third is service — to the state and beyond.
We have multiple responsibilities at the University of Connecticut. We seek to fulfill all of them. But we have no greater responsibility than to enable our students to expand their range of knowledge about the world, and their role in making that world a more tolerant, a more secure, a more productive, a more beautiful, and a more equitable place. Those goals are worth working for, worth arguing for, worth struggling for. They merit an investment of dollars; they merit moral support. And I believe that this University will use that investment and that support to make itself a model for the public universities of America.
I came to Connecticut last October firmly convinced that no public university in the United States is better positioned to improve, and improve dramatically, the level of excellence, access and service it offers. I retain that conviction. The University of Connecticut has been an important University for many decades. Now it has the potential to become a great University — one of the handful of public institutions that define what a state can do when it makes a commitment of resources and a commitment of will.
That was a commitment that Connecticut renewed in 1995 when this state’s leaders — many of whom are here today — authorized the long and ambitious journey we call UCONN 2000.
Evidence of that journey’s early steps surrounds us today, a silent but powerful statement of the work of the Governor, President Pro Tem Sullivan, Speaker Ritter, other state legislators, and of the leaders of business and labor who joined forces with members of the Board of Trustees, alumni, administration, faculty, staff, and students to develop an ambitious plan and turned that plan into reality. On behalf of the entire University, I express our deepest gratitude to you, the leaders who brought UCONN 2000 into being.
Nothing is more important to the quality of life in this state than educational excellence. Nothing is more important to Connecticut’s economic development. But even more fundamentally, nothing is more important to our sense of who we are as citizens of a human community and a democratic society. UCONN 2000 — like the University of Connecticut itself, and like all the great American universities — represents a commitment to the concept of education for its own sake, and on its own merits. It is in truth the foundation for all which lies ahead…
This is the fourth in a series of semi-annual reports to the Governor and the General Assembly pursuant to the provisions of Sections 10a-109 through 10a-109m of the Connecticut General Statute, originally An Act to Enhance the Infrastructure of the University of Connecticut, and now known as UCONN 2000.
The first report, dated October 1, 1995, placed this historic undertaking in the context of the University’s strategic plan and provided a summary of the provisions of the law. Because the reporting deadline followed so closely on the heels of the enactment of UCONN 2000, many of the activities on which the University is required to report were in the earliest stages of development. This, and future reports, contains an increasing level of detail as projects are implemented and completed.
While most of the activities mentioned in this report are projects specified in the UCONN 2000 legislation, some are supported in whole or part by other funding sources. All significant projects underway are presented in this report, however, for two reasons. First, it is essential that all major capital activities are developed, implemented and reported in a comprehensive manner. Second, UCONN 2000 did more than provide a funding structure for the rebuilding of the University. The law also conferred upon UConn the flexibility and management authority necessary to enable the University to move forward with this tremendous effort in a focused and expeditious manner. Every aspect of the University’s physical renewal has benefitted from the management oversight provisions of UCONN 2000.
UCONN 2000: ACTIVITIES COMPLETED OR UNDERWAY
- On April 11, 1997, the Board of Trustees approved a revised list of UCONN 2000 projects. This list substituted several projects on the Storrs campus, including the expansion of the Student Union, for the Hartford Relocation project. (Please see Attachment A.)
- The Ice Rink Enclosure project was bid; however, bids submitted were over budget. The Project is being redesigned and will be rebid in the next two months.
- The financial projections for the use of Owners Controlled Insurance Program (OCIP) have been confirmed by actual bidding results. The cumulative reduction in bid price for three projects has been $3,714,000, or 4% of the bid prices. The cost to the University of purchasing insurance is approximately 50% of this amount, representing a net savings to the University of $1,800,000.
The following projects are presently covered by OCIP:
- New Chemistry Building
- Stamford Downtown Campus
- Music & Drama/Music Additions and Renovations
The following projects are either out to bid or will be bid in the near future and will also be covered by OCIP:
- South Campus Dormitory and Dining Hall
- Ice Rink Renovation
- New Central Warehouse
- North Campus Parking Garage
- Avery Point Marine Sciences
- Heating Plant Upgrade
- Technology Park Phase I (Biology/Physics)
- Agricultural Biotechnology Building
- University Programs Building
- Waring Building Conversion
- Litchfield Agricultural Center
- New School of Business
Current projections indicate potential savings of approximately $7,000,000 as a result of OCIP implementation.
Architects and engineers providing professional design services are normally covered for errors and omissions by insurance purchased for their practices. Although the practice policy is the most common type of insurance, the policy has several short-comings from the owner’s point of view. The two most significant problems with the traditional policy are:
- Coverage is based on the time of claim and must be shared with all other claims made against the design professional at the same time.
- There is no guarantee of continued coverage.
These drawbacks expose the University to substantial risk in an undertaking as large as UCONN 2000. In order to reduce that risk, the University investigated measures to supplement or replace traditional coverage. Based on this review, UConn has decided to replace the traditional policies with a new policy, one that will provide $10,000,000 of insurance per claim and aggregate per project. Most importantly, insurance will extend for a period of eight years after the last UCONN 2000 project is completed. This insurance program is designed to include major projects already in construction as well as all future UCONN 2000 projects. Sedgwick James of New England, Inc. submitted the successful proposal to provide the new service to the University.
- The Facilities Management Department has created a Home Page on the World Wide Web for dissemination of information on UCONN 2000 projects. One of the primary uses for the Home Page is to advertise the projects to individuals or entities whose services (such as architectural or engineering) are sought. This allows those seeking engagements to view UConn’s needs at any time, rather than having to rely solely on the legal advertisements published on a one-time basis.
The combination of the use of the web and traditional newspaper advertisements resulted in an excellent response to this year’s new projects. Architect/Engineer teams have been selected for the following projects:
- New School of Business
- North Campus Parking Garage
- Renovations to the Waring Building
- Renovations to the Northwest Dormitories
- Litchfield Agricultural Center
The only additional advertisements for the next few months will be for new open-ended architect and engineer contracts to ensure that qualified professionals are available for small projects. These contracts will replace the on-call list selected two years ago.
- The project for the development of a revised Facilities Master Plan is moving forward. Current projects that are either in design or construction have been coordinated with the master planning effort. This plan has identified potential future building sites for the UCONN 2000 projects. Some of the goals of the master planning effort are:
- Establishment of a framework that emphasizes a clear concept of campus organization within a context of an academic community committed to a physical infrastructure that is beautiful, accessible, practical, secure and durable
- Adoption of architectural building guidelines
- Development of site and landscape standards
- Composite campus-wide system plans that identify:
- Potential building locations
- Open space
- Pedestrian circulation
- Development of subcampus alternatives
Identification of infrastructure capacities to support growth including:
- Utilities (distribution and production)
- Site/building capacities
Vehicular circulation (automobiles, shuttle transit and bicycles)
The master planning effort will be completed in the Fall of 1997. The University of Connecticut is in a unique position — with the support of UCONN 2000 funding, the University will be able to see significant aspects of its Master Plan implemented in the coming decade.
- Design will be completed and bids received on the following major projects in the next six months:
- South Campus Dormitories and Dining Hall
- Avery Point Marine Sciences and Technology Center
- White Building Code Violation Abatements
- Central Warehouse
- Additional smaller scale project were designed and bid to support the Technology Quadrant projects, additional classroom renovations, roofing replacement and parking lot expansions.
- Several projects authorized prior to the adoption of UCONN 2000 are awaiting action by the State Bond Commission. The projects and the dates the requests for action were initiated are as follows:
- Mansfield Training School Improvements (March 1996)
- Heating Plant Improvements (May 1996)
- Music & Drama/Music Additions and Renovations (March 1997)
- Ice Rink Improvements (February 1997)
- The UCONN 2000 construction program is progressing. As outlined below, there will be over $200,000,000 worth of projects in various stages of construction by Fall, 1997 This compares to the approximately $80,000,000 in activity at the current time.
- Initial reaction to the prequalification process described in previous reports is favorable. The University is attracting interest from contractors who never before sought University work. The criteria used to prequalify (similar experience, bonding capacity, financial ability, managerial and technical know-how) insure that all contractors entering the competition have the capacity to complete quality work. This system is designed to ensure that low bid does not translate into low quality.
- The number of prequalifications has accelerated during the last six months. Contractors have been prequalified for the following projects that are either out to bid or in final stages of design:
- South Campus Dormitories and Dining Hall
- Avery Point
- Ice Rink Enclosure
- Central Warehouse
- Classroom Renovations
- White Building Renovations
- North Campus Parking Garage
This prequalification procedure will be followed for these additional projects within the next two months.
Physics/Biology Building – Tech Quad Phase I
Heating Plant Upgrade
Agricultural Biotechnology Building
- The Gampel Seating project was completed in its entirety in time for the basketball season. This project was completed one year ahead of schedule through the combined efforts of the contractor (O&G Industries of Torrington, CT) and University staff empowered by the flexibility contained in the UCONN 2000 legislation.
- The Stamford Downtown renovation project is well underway. The project is about one month behind original projections based on a very aggressive schedule. Completion is now scheduled for October 1997; the project is on budget.
- Construction started on the new Chemistry Building in November, 1996. The bids received were within the construction budget. Walsh Construction of Trumbull, CT was selected as the contractor for this project. The project has benefited from a mild winter construction season. Completion is scheduled for the Summer of 1998.
- The Field House Reconstruction project is rapidly moving towards its scheduled completion in July 1997. Construction is about 75% complete. The contractor is Konover Construction Co. of West Hartford, CT.
- Renovations to the Mansfield Apartments are on schedule. This project provides new sloped roofs, windows, doors and interior renovations. The project is scheduled for completion in the Summer of 1997.
- Bids have been received for the additions to the Fine Arts Complex. This project includes the renovation of the Music & Drama/Music buildings as well as construction of a new Music Library and Orchestra Band Building. O&G Industries of Torrington, CT is the low bidder for the project, but no contract has been awarded as the project awaits Bond Commission action.
- Numerous smaller projects have been completed, including the renovation of two classrooms, relocation of utilities in anticipation of the new Chemistry Building, an athletic batting facility, roof repairs and lighting of recreation courts.
- Babbidge Library repairs are continuing under the management of the Department of Public Works. DPW’s request for additional funds to complete the project received legislative approval and favorable Bond Commission action in April, 1997. The project is currently scheduled for completion in April, 1998.
- The goal for private financial support for Fiscal Year 1996-97 is $18 million in receipts. Actual gift receipts for the University totaled $11.1 million at December 31, 1996 and $15.9 million at March 31, 1997. These amounts represent an 82% increase and a 68% increase, respectively, over the same periods the previous fiscal year. This can also be compared to $13.3 million raised during all of Fiscal Year 1996 and $8.2 million raised in Fiscal Year 1995.
- The upward giving trend demonstrated since the inception of UCONN 2000 has continued. As of March 31, 1997, giving was up across all major areas — Storrs and regional campuses, 119%; Health Center, 73% and Athletics, 12%, compared to gift levels during the comparable period in the last fiscal year.
- Gifts to the endowment as of March 31, 1997 totaled $9.0 million. This represents an increase of 201% over the same period in the previous fiscal year, and can be directly attributed to the matching gift opportunities available to donors through UCONN 2000.
- The size of individual gifts has increased dramatically since the inception of the UCONN 2000 matching gifts program. During the first nine months of Fiscal Year 1996-97, 52 donors made major gifts — those between $25,000 and $99,000 — which totaled $1.9 million and 23 principal gifts of $100,000 or greater were received, for a total of $7 million. This compares to 28 major gifts and 11 principal gifts received during the comparable period the previous fiscal year.
- The UCONN 2000 endowment matching gift program has resulted in unprecedented levels of giving from alumni and other friends of the University. After the first full year of UCONN 2000 solicitation, which ended on December 31, 1996, pledges totaled $16.8 million. As of March 31, 1997, the total had grown to $17.6 million, or 88% of the $20 million in matching funds committed to by the State. The University has asked the General Assembly to extend the provisions of the matching grant program.
- On February 14, the Board of Trustees submitted to the Governor’s Office of Policy and Management a request for $9.1 million in matching funds to be paid against endowment gifts received in calendar year 1996. It is expected that these funds will be received from the State at the start of the next fiscal year, July 1997.
- The largest gift ever made for the benefit of University programs was received in January, 1997. Harold S. Schwenk, Jr. and Paula H. J. Schwenk, ’79 MA donated $1.75 million in stock to establish the Harold S. Schwenk, Sr. Distinguished Chair in Chemistry in honor of the donor’s father, a former chemistry professor at the University. A portion of the gift will also be used to establish “The Fund for Innovative Education in Science,” an educational program to encourage undergraduates to pursue the sciences. Due to favorable market conditions, the sale of this stock gift netted over $2 million — $1.75 million of which was eligible to be matched under UCONN 2000 — resulting in a total benefit to the University of over $3.75 million.
- Payment of a $500,000 pledge made by Robert Cizik was received in January 1997. The gift, which will be matched under UCONN 2000, will establish the “Robert Cizik Chair of Excellence in Manufacturing and Technology Management,” the first endowed chair in the School of Business Management. The gift will fund a full professorship to be filled by a premier educator experienced in fostering joint business and engineering projects, conducting critical research and forging strong ties with industry.
- In February 1997, the assets of the University of Connecticut Foundation topped $100 million. This compares to assets of $55 million at June 30, 1994; $65 million at June 30, 1995 and $85 million at June 30, 1996. Over 76% of total assets are currently held in endowment.
General Obligation Bonds Secured by the States Debt Special Commitment
- The law authorized, in total, bonding for UCONN 2000 projects of $962,000,000 to be secured by the State’s debt service commitment, plus costs of issuance and any required reserves.
- As of April 30, 1997, $224,543,000 of the $962,000,000 of total project authorizations has been allocated and approved for bonding for projects approved by the Board of Trustees and the Office of the Governor.
- On February 21, 1996, “The University of Connecticut General Obligation Bonds 1996 Series A”, the first series of bonds secured by the State’s debt service commitment, were issued in the amount of $83,929,714.85 . Of this amount $82,606,220 was for UCONN 2000 projects, and the balance, together with accrued interest, funded the cost of issuance through the Office of the Treasurer.
- An updated list of projects funded with 1996-A bond proceeds includes: the Chemistry Building, Deferred Maintenance & Renovation Lump Sum, Equipment, Library Collections & Telecommunications, Mansfield Apartments Renovations, Stamford Downtown Relocation-Phase I, plus additional amounts.
- On April 24, 1997, “The University of Connecticut General Obligation Bonds 1997 Series A”, the second series of bonds secured by the State’s debt service commitment, were issued in the amount of $124,392,431.65 . Of this amount $121,080,861.48 was for UCONN 2000 projects, and the balance, together with accrued interest, funded the cost of issuance through the Office of the Treasurer. Some of the projects funded by this issue include: the Chemistry Building, the Mansfield Apartment Renovations, the Stamford Downtown Relocation, Equipment, Library Collections & Telecommunications, Deferred Maintenance & Renovation Lump Sum, the Avery Point Marine Science Research Center, the Heating Plant Upgrade, the Ice Rink Enclosure, the Litchfield Agricultural Center, the Northwest Quad Renovations, the Parking Garage North, the School of Business, the South Campus Complex, the Waring Chemistry Complex, the White Building Renovations, and the Wilbur Cross Building Renovations.
- As of April 30, 1997, the UCONN 2000 debt service commitment bonds were rated “AA-” by Standard & Poor’s, “A-1” by Moody’s Investors Service, and “AA-” by Fitch Investors Service. In addition, certain maturities of bonds are insured with “AAA” rated municipal bond insurance. The State Treasurer manages the debt service commitment Bond sale process and invests the proceeds.
University Special Obligation Revenue Bonds Secured by Pledged Revenues
The law also authorizes the University to issue Special Obligation Revenue bonds. The debt service on the Special Obligation Revenue bonds is normally paid for from certain revenues of the University pledged in the particular bond series indenture.
Any University Special Obligation Revenue bonds to be issued might also be backed by the State’s Special Capital Reserve Fund (“SCRF”). The SCRF may be funded at issuance at the lesser of the maximum amount of debt service in any calendar year or any succeeding calendar year on all outstanding bonds issued under the indenture, or 10% of the bond issue. The State is obligated to refill the SCRF to the required amount should the SCRF funds be drawn upon to pay debt service.
The University is planning a special obligation revenue bond issue during early Fiscal Year 1998 to finance the South Campus Complex, including a dormitory and dining hall facility. These bonds are currently planned to be secured by selected student fees as well as the State’s Special Capital Reserve Fund.
CURRENT PROJECT STATUS: UCONN 2000 – PHASE I
|CHART KEY:||*** = Planning and Design Completed||
= Construction Completed
Completed to date
25% 50% 75% 100%
Facility: Phase 1
|Contract documents due 8/97.||************|
|Avery Pt. Marine Science &
Technology Center: Phase 1
|Out to bid. Construction start 6/2/97.||**************|
|Babbidge Library Envelope
|Project over budget; DPW obtaining additional funding. Construction completion scheduled 4/98.||**************||
|Beach Hall Renovations||
|Design to begin 97-98|
|Benton State Art Museum Addition||
|Architectural contract cancelled.
Project being re-evaluated.
|Chemistry – New Building||
|Construction began 11/96.||**************||
|Deferred Maintenance and Renovation Lump Sum FY 97-98||
|Bidding and awarding contracts.|
|Equipment, Library Collections & Telecommunications FY 97 – 98||
|FY 97/98 Equipment and Library Collections have been ordered..|
|Fairfield Road Pedestrian Mall||
|Await outcome of Master Plan update. Design to begin FY 97/98|
|Gant Plaza||Construction to be integrated with Tech Quad Phase I.||***********|
|Hartford Relocation Design||
|Hartford Relocation Feasibility Study||
|Heating Plant Upgrade||
|Final contract documents under review.||*************|
|Ice Rink Enclosure||
|Construction start 3/16/98||**************|
|Litchfield Agricultural Center||
|Mansfield Apartments Renovations||
|Construction began 10/96. 7/97 completion.||**************||
|North Campus Renovation||
|Design to begin 98/99.|
|North Superblock Site &Utilities||
|Design under review. Project to be bid as part of Heating Plant Upgrade.||*************|
|Northwest Quadrant Renovation||
|Negotiating design contract.||**|
|Parking Garage – North||
|Bidding 5/97 to design build contractors.||**************|
|Pharmacy – New Building Phase I||
|Study completed. Design to begin 97/98.||*|
|School of Business – New Building||
|Programming study complete. Design start 6/97.||**|
|South Campus Dorms &Dining Hall: Old &New||
|Construction start 5/15/97.||**************||
|Stamford – Relocation to Downtown: Phase I||
|Construction completion 10/97||**************||
|Tech Quad: Phase I-A: Biology &Physics New Building||
|Contract documents due 7/15/97.||************|
|University Programs New Building||
|Project rescoped; to be built and funded through the UConn Foundation.||**|
|Waring Building Conversion||
|Programming study underway.||***|
|Waterbury Property Purchase||
|Offer made to seller. Await response.|
|White Building Code Violation Abatements||
|Bids over budget. Negotiating with contractors.||**************|
|Wilbur Cross Building Renovation||
|Await completion of program.||*|
CURRENT FUND SOURCES: UCONN 2000 – PHASE I
CURRENT PROJECTS, FUND SOURCES: UCONN 2000
|UConn 2000 Securities||University Revenue Bonds||Other State Funds||Federal Funds||Private Funds|
|Agriculture Biotechnology||$13,183,550||$9,400,000||$600,000||* $3,857,550|
|Facility: Phase 1|
|Avery Point Marine Science andTechnology Center: Phase I||$38,000,000||$34,000,000||$4,000,000|
|Babbidge Library Envelope Repairs||$29,650,000||$29,650,000|
|Beach Hall Renovations||$994,000||$994,000|
|Benton State Art Museum Addition||$4,870,456||$3,341,000||$750,000||** $389,986||*** $389,470|
|Chemistry New Building||$56,754,200||$53,062,000||$3,692,200|
|Deferred Maintenance & Renovation Lump Sum||$21,214,000||$21,214,000|
|Equipment, Library Collections & Telecommunications||$30,141,000||$30,141,000|
|Fairfield Road Pedestrian Mall||$1,880,000||$1,880,000|
|Hartford Relocation Design||$0||$0|
|Hartford Relocation Feasibility Study||$0||$0|
|Heating Plant Upgrade; Underground Steam and Water Upgrade||$13,969,000||$12,969,000||$1,000,000|
|Ice Rink Enclosure||$2,790,000||$2,470,000||$320,000|
|Litchfield Agricultural Center – Phase I||$1,350,000||$1,000,000||$350,000.00|
|Mansfield Apartments Renovations||$2,771,000||$2,471,000||$300,000|
|North Campus Renovations||$2,654,000||$2,654,000|
|North Superblock Site and Utilities||$7,668,000||$7,668,000|
|Northwest Quadrant Renovation||$2,001,000||$2,001,000|
|Parking Garage – North||$9,658,000||$9,658,000|
|Pharmacy – New Building: Phase I||$3,856,000||$3,856,000|
|School of Business – New Building||$19,464,000||$19,464,000|
|South Campus Dorms and Dining Hall – Old and New||$40,981,000||$12,251,000||$26,979,350||$1,750,650|
|Stamford – Relocation to Downtown||$62,350,000||$48,350,000||$14,000,000|
|Technology Quadrant – Phase IA||$40,118,000||$37,393,000||$2,725,000|
|Biological Sciences I|
|University Programs Building||Budget being developed.|
|Waring Building Conversion||$7,520,000||$7,520,000|
|Waterbury Property Purchase||$325,000||$325,000|
|White Building Code Violation||$2,800,000||$2,430,000||$370,000|
|Wilbur Cross Building Renovations||$3,409,000||$3,409,000|
|* Federal funding to date
** Federal funding and interest (designated)