7.04.A.3.B._Permanent_Improvement_Project_UofSC-C

Agenda Item 7.04.A.3.B DESCRIPTION OF PERMANENT IMPROVEMENT PROJECT FOR CONSIDERATION January 9, 2020 UNIVERSITY OF SOUTH CAROLINA – COLUMBIA PROJECT NAME: Strom Thurmond Wellness Center Intramural Recreation Fields Synthetic Turf Installation REQUESTED ACTION: Increase Budget (Phase II) REQUESTED ACTION AMOUNT: $1,822,250 Internal Projected Cost: $1,850,000 INITIAL CHE APPROVAL DATE: 11/1/2018 (Phase I) Project Budget Professional Service Fees Site Development Landscaping Contingency Total Source of Funds Strom Thurmond Wellness Fee Center Maintenance Reserve Fund Total Previous $27,750 -$27,750 Previous Change $ 121,050 1,511,200 50,000 140,000 $1,822,250 Revised $ 148,800 1,511,200 50,000 140,000 $1,850,000 Change Revised $27,750 $1,822,250 $1,850,000 $27,750 $1,822,250 $1,850,000 DESCRIPTION: University of South Carolina – Columbia seeks the Commission’s recommendation to replace two natural turf athletic fields, totally 140,000 square feet, at the Strom Thurmond Wellness Center with synthetic turf fields According to USC staff, these fields are highly utilized by the student body, averaging more than 750 hours of annual usage compared with industry best practices of no more than 400 hours The project scope includes removal of the existing natural turf, regrading the land, and installing engineered drainage and synthetic turf According to UofSC staff, replacing the fields with synthetic turf is more cost effective over the long run While seven times less expensive than synthetic turf per square foot, natural sod should be replaced annually on heavily-used fields according to UofSC’s athletic department Synthetic turf is typically guaranteed for 10 years of unlimited use and the underpad for 20 years As a result, the University believes it will realize cost savings after year seven by installing synthetic turf compared with natural turf Based on documentation provided by UofSC-Columbia, the type of synthetic turf installed will include at minimum an eight-year warranty, have had already been used in South Carolina, and have been used by other NCAA colleges nationally, among other requirements The warranty must be pre-paid, cover claims up to $32,000,000, and provide for the full replacement value of the product without a deductible This project was identified as priority of 14 on year of the 2019-20 CPIP Agenda Item 7.04.A.3.B SOURCE OF FUNDS: The following outlines the funding source for the project: • $1,850,000 from Strom Thurmond Wellness and Fitness Center Maintenance Reserve Funds Strom Thurmond Wellness and Fitness Center Maintenance Reserve Funds originate from a $105 per semester wellness fee charged to students After accounting for this project, the fund will have an uncommitted balance of $324,844 E&G MAINTENANCE NEEDS: UofSC-Columbia uses its Strom Thurmond Wellness and Fitness Center Maintenance Reserve Funds to fund maintenance at its intramural facility As noted above, this fund is supported by a $105 per semester student wellness fee ANNUAL OPERATING COSTS/SAVINGS: UofSC-Columbia projects an annual savings of $86,000 during the first fiscal year of operations due to reduced maintenance costs Based on documentation provided by UofSC, the successful bidder of the project will provide biannual scheduled maintenance of the synthetic fields for the first eight years PERMANENT IMPROVEMENT PROJECTS REQUIRED INFORMATION FOR PHASE II CONSTRUCTION BUDGET Provide the total projected cost of the project Attach a summary of the costs prepared during the A&E pre-design phase to support the total cost The total internal projected cost for this project is $1,850,000 Identify the source(s) of funds for construction If any private or federal funds are included, attach a letter guaranteeing the availability of the funds The source of funds for A&E pre-design are Strom Thurmond Wellness and Fitness Center Maintenance Reserve Funds Describe and define each fund source to be used for construction Cite any statutory authority, including the code section other provision of law for use of the funds for permanent improvement projects If the source includes any fee, provide the name of the fee, the fee amount, the frequency of collection and when the fee was first implemented Strom Thurmond Wellness and Fitness Maintenance Reserve Funds are funds available to the University from a student recreation fee The statutory authority for the university to assess fees is found in the Code of Laws Title 59, Chapter 117 Section 40 - item "(9) To fix tuition fees and other charges for students attending the University, but these shall not be inconsistent with statutes where the legislature undertakes to fix such fees and charges" Annually the University Board of Trustees adopts the tuition and fee schedule for the University of South Carolina students as part of the annual budget development process Provide the current uncommitted balance of funds for each source described above The current uncommitted balance, excluding this project, is $2,364,458 This project commits $1,850,000 leaving an uncommitted balance of $514,458 If institution or revenue bonds are included as a source, provide when the bonds were issued If not issued yet, provide when the bond resolution is expected to be brought for State Fiscal Accountability Authority approval The question is not applicable to this project If a student fee is used to fund debt service, provide the current amount of the fee collected annually or by semester Specify which The question is not applicable to this project Indicate whether or not the use of any funds for construction will require an increase in any student fee or tuition Describe any increase in student fees effected in prior years that has contributed to the availability of these funds Rev July 29, 2018 PERMANENT IMPROVEMENT PROJECTS REQUIRED INFORMATION FOR PHASE II CONSTRUCTION BUDGET There will be no increase to student fees or tuition for this project If the project qualifies for the JBRC policy requirement to meet the LEED certification/Green Globes certification as the conservation measure, please attach the findings of a cost-benefit analysis showing the anticipated energy savings over the life of the project Additionally, attach the checklist of items to be included to achieve LEED points or a description of the energy measures to achieve LEED The project does qualify for the JBRC policy to meet certification If the project does not qualify for the JBRC policy requirement to meet the LEED certification/Green Globes certification as the construction measure, provide what savings/conservation measures will be implemented within the project Explain the energy savings measures to be implemented as part of this project If there are no energy savings measures included, state that and explain why The question is not applicable since certification will be required 10 Provide the projected date (month and year) for execution of the construction contract Summer 2020 11 Provide the projected date (month and year) for completion of construction Winter 2020 12 Describe the programs that will use the constructed or renovated space Intramural Sports, Sports Clubs, and Open Recreation for students 13 Provide the total square footage of the building to be renovated or constructed The project does not affect the Strom Thurmond Wellness and Fitness Center The project installs approximately 140,000 square feet of synthetic turf 14 If a portion of the building is to be renovated, provide the square footage of the portion that will be included in the renovation The project does not affect the Strom Thurmond Wellness and Fitness Center The project installs approximately 140,000 square feet of synthetic turf 15 Provide the current age of the building and building systems to be renovated or replaced Rev July 29, 2018 PERMANENT IMPROVEMENT PROJECTS REQUIRED INFORMATION FOR PHASE II CONSTRUCTION BUDGET Strom Thurmond Wellness and Fitness Center and Recreation Fields were originally constructed in 2003 They are 16 years old 16 If any new space is being added to the facility, provide demand and usage data to support the need No new space is being added to the facility or the fields 17 Provide an estimate of the numbers of students, faculty, staff and clients that are expected to utilize the space associated with the project or building Estimated students that will use the space for intramural sports and sport club participants in excess of 5,000 annually 18 If the construction cost increased significantly from the internal estimate and/or from the total estimated cost provided on the CPIP (30% or more), provide what factors caused the cost to increase The cost did not increase by 30% 19 If the contingency is more than 10%, explain why The contingency is not more than 10% 20 If funds are being transferred from another project, provide the current status of the project from which funds are being transferred The question is not applicable to this project 21 Indicate whether or not the project has been included in a previous year’s CPIP If so, provide the last year the project was included and year for which it was proposed The project is included in Year of the 2018 CPIP It was listed as priority number of The project is included in Year of the 2019 CPIP It is listed as priority number of 14 22 Provide the economic impact of the project or project request, including job creation and retention If there is no economic impact, provide an explanation This project will provide economic activity through the construction project itself Construction creates and/or retains jobs in three ways: 1) it creates direct jobs that are involved in the construction project; 2) it creates indirect jobs through the manufacturing of building materials and systems and the provision of key services in areas like design professions, legal, and accounting services; and 3) it creates induced jobs in other service areas whereby income from the first two categories is spent on goods and services in other areas of the economy It is estimated that this project will generate 37 jobs Rev July 29, 2018 PERMANENT IMPROVEMENT PROJECTS REQUIRED INFORMATION FOR PHASE II CONSTRUCTION BUDGET 23 Discuss how maintenance of this facility construction/renovation will be addressed and funded Maintenance will be funded from the Strom Thurmond Wellness and Fitness Center Maintenance Reserve Funds 24 Provide the name of any account from which costs of deferred maintenance are addressed and its current uncommitted balance Indicate the sources used to fund the account Strom Thurmond Wellness and Fitness Center Maintenance Reserve Funds The Intramural Recreation Fields Synthetic Turf project, planned Intramural Recreation Field Land Acquisition, and Intramural Recreation Field Land Site Development will be funded from this account Remaining funds are applied to routine planned and unplanned maintenance The fund is replenished annually 25 If funding for maintenance of this facility construction/renovation has not yet been determined, discuss the steps that have been taken to address and fund maintenance of this and other facilities owned or managed by the agency or institution The funding of maintenance is described in the answers to questions 23 and 24 TO BE PROVIDED FOR HIGHER EDUCATION PROPOSALS Indicate whether or not the use of any funds for construction will require an increase in any student fee or tuition Describe any increase in student fees effected in prior years that has contributed to the availability of these funds There will be no increase to student fees or tuition for this project If the use of any funds for construction includes any student fee, provide the name of the fee, the fee amount, the frequency of collection and when the fee was first implemented This project uses a small portion of the reserve funds generated from the student wellness/ recreation fee The full fee is $105 per semester, which was first implemented at that level in 2002 and has not increased since that time The portion utilized for maintenance reserve is further described in question #3 (below) Provide a five-year history of each component within the institution’s tuition and fee structure designated or utilized for permanent improvements Identify the tuition or fee component per student, per semester; the total revenue collected during the academic year; and the fund balance at fiscal year end, all delineated by academic year Include a projection for the ensuing academic Rev July 29, 2018 PERMANENT IMPROVEMENT PROJECTS REQUIRED INFORMATION FOR PHASE II CONSTRUCTION BUDGET year, and any future academic years in which the fee is projected to increase Use the following format in responding to this question and provide as many tables as are necessary to promote a clear understanding of the relationship of tuition and fee revenue designated by the institution for permanent improvements, maintenance and other facility-related expense, including debt service Academic Year 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20* *Projection Rev July 29, 2018 Amount per student per semester $7.21 $8.58 $11.04 $12.31 $12.31 $12.31 Total Revenue Collected During Academic Year $475,526 $578,369 $753,132 $845,877 $846,000 $846,000 Amount Expended for Permanent Improvements $199,097 $0 $241,416 $1,105,612 $27,750 $1,822,250 Fund Balance at Year End $8,064,421 $8,642,790 $9,127,262 $9,864,458 $10,682,708 $9,706,458 PERMANENT IMPROVEMENT PROJECTS REQUIRED INFORMATION FOR PHASE II CONSTRUCTION BUDGET Identify any other funds not specifically designated that may be utilized or redirected for permanent improvements, maintenance and other facility-related expense, including debt service Provide a five-year history of total collections, by fund; amounts applied to or for permanent improvements, maintenance and other facility-related expense, including debt service; and the fund balance at fiscal year end, delineated by academic year Include a projection for the ensuing academic year, and any future academic years in which the revenue is projected to increase Describe any portion of the source that originates from any tuition or fee component Include all permanent improvements without regard to Joint Bond Review Committee or State Fiscal Accountability approval requirements Use the following format in responding to this question and provide as many tables as are necessary to provide a complete and comprehensive response for each fund Fund Source or Name: There are no additional funds associated with this project, beyond those outlined in question #3 (above) Description: Academic Year 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20* *Projection Total Revenue Collected During Academic Year Portion Collected From Tuition or Fee Revenues Amount Expended for Permanent Improvements Fund Balance at Year End Describe the fund sources reflected above that will be utilized to support the project that is the subject of this Phase I proposal The source of funds is the Strom Thurmond Wellness and Fitness Center Maintenance Reserve, which is funded by the student wellness/recreation fee Rev July 29, 2018