UHS Administration and Finance
Briefing for UH SGA
Nov. 19, 2014
1
Questions and Answers - Examples
and Comparisons
What is the status of the stadium? How do the results
compare to the plan and goals? Is the stadium
finished?
How was the stadium financed? How was HEAF used?
What is the revenue plan for the stadium? What are
the basic operating costs we need to cover? How is the
revenue to support operations generated?
How are events booked and priced?
2
TDECU Stadium Timeline
This is similar to Chancellor Khator’s presentation to the UH Board of Regents on 11/14/14
Opening
Fundraising
New Stadium Proposed
Construction Schedule
Construction Inflation
New Stadium Announce
Project evolution, phasing, results
Wilhelmina Robertson
End Zone Project
3
Project evolution: Where we started
in 2008
Est. price $32-38m
4
Change of plan in 2010
Concrete spalling
5
Stadium Cost Comparisons 2010
Comparisons
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Here are the approximate costs of all of the recent projects we
know of.
Apogee Stadium
$78M
BBVA Compass Stadium
$80M
Bobby Dodd Stadium Expansion
$50M
Boone Pickens Stadium Expansion
$45M (Phase I), $50M
(Phase II), $130M (Phase III)
Darrell K. Royal Stadium Expansion
$110 M (North End Zone)
FAU Owls
$69m (30k seats)
Kinnick Stadium Expansion
$86M
Spartan Stadium Expansion
$64M
Ross-Ade Stadium Expansion
$55M
Here is the detail
Apogee Stadium, University of North Texas, Denton, TX
Total Project Cost
Construction Cost
Building Area
Capacity
Construction Cost/SF
Construction Cost/seat
$78M
$68.7M
184,142 SF
28,891
$373
$2,378
BBVA Compass Stadium, Houston Dynamo, Houston, TX
Total Project Cost
Construction Cost
Building Area
Capacity
Construction Cost/SF
Construction Cost/seat
Cougar Stadium Estimating Model
Construction Costs:
• @$2200 per seat =>$88M,
• @$2500 per seat => $100M
Plus:
• Professional Fees: $10M
• Other Costs, Art,
Contingency: $10M
$80M
$63M
340,000 SF
22,100
$185
$2,850
6
Target cost @ 40k seats
June 2010
7
New football stadium, upgrade to Hofheinz part of Tier One vision
STEVE CAMPBELL, Copyright 2010 Houston Chronicle | June 11, 2010
• The University of Houston placed
a hefty bet on its future in
college athletics on Thursday,
unveiling a $160 million plan to
upgrade its football and
basketball facilities.
• The athletic department made a
presentation to the board of
regents on Saturday and
received the go-ahead to pursue
the $120 million construction of
a football facility to replace
Robertson Stadium and a $40
million renovation of Hofheinz
Pavilion
Preliminary plan announcement
8
9
New Stadium Proposed Construction Schedule
900 days
19 months actual construction
BOR
Facilities
Construction
& Master
Planning
Committee
Approval
1) BOR Finance
&
Administration
Building deCommittee
commissioning
Approval
and
Construction
Begins
2) THECB
Approval
December
2012
May 2012
February 2012
Design begins
April 2012
Football
Season 2013
at Reliant
Stadium
Construction
Complete
(Substantial
Completion)
Summer 2014
Fall 2013
Football
Season 2014
Starts
September
2014
10
BOR Budget Approvals
• Feb 2012 BOR FCMP site presentation: phasing
(1) 32,000 seats, (2) 40,000; options for premium
seats
• March 2012 Special Called BOR meeting site
approval.
• Aug BOR 2012, BOR F&A, approved first phase
financing $85m, 30k seats
• May 2013, BOR F&A, approved second phase
financing $105m, 40k seats
• Aug 2013, BOR F&A, approved third phase
financing $120m
11
Capital Project Funding – UH Stadium
Sources at Phase 2
BOR Approvals
• Feb 2012 BOR FCMP site presentation: phasing
(1) 32,000 seats, (2) 40,000; options for premium
seats
• March 2012 Special Called BOR meeting site
approval.
• Aug BOR 2012, BOR F&A, approved first phase
financing $85m, 30k seats
• May 2013, BOR F&A, approved second phase
financing $105m, 40k seats
• Aug 2013, BOR F&A, approved third phase
financing $120m
12
Use of HEAF funds in an Auxiliary Building
(Chancellor Khator is independently examining this)
•
Higher Education Assistance Funds
- Legislative appropriation for the support of E&G buildings for instruction,
research and academic support.
•
Is the use of HEAF in the stadium appropriate?
- The band is a part of our music program and as such qualifies for HEAF
support.
- Presented to THECB, 9/18/12 – “This project will also provide the School of
Music Band program with rehearsal and storage space and additional
rehearsal space for other facets of academic music school programs (chamber
music, small ensembles, opera rehearsal, etc.).”
•
Other examples of mixed use (auxiliary and E&G) buildings using HEAF
UH Hilton
Health and Biomedical Building
classrooms
13
Racing against inflation
14
Where we are now….
OPEN (substantial completion) but not finished
15
Recent Football Stadiums
Project Summaries
Stadium
Date
Opened
Total Seats
Project Cost
Cost/Seat
Apogee
Stadium
2011
30,850
$78 million
$2,528.36
BBVA
Compass
2012
22,039
$80 million
$3,629.93
UH
2014
40,000
$120 million
$3,000.00
Kyle Field
2014-2015
102,512
$450 million
$4,389.73
McClane
Stadium
2014
45,000
$250 million
$5,555.56
Katy ISD
Future
12,000
$58 million
$4,833.33
16
17
Next, project close-out
What is involved in closing out a project?
•
•
•
•
•
•
•
•
•
•
•
Building testing and balancing (TAB) of systems
Building system commissioning
Architecture punch list review
Unfinished items and inspections must be
Warranty inspections/calls
Post-occupancy assessment
complete before final acceptance of project
Operating and maintenance manuals submission
Submission of attic stock items
As-built drawing submission
Lien releases
Review outstanding potential change orders (PCO)
This is what determines final
Final construction audit
project cost.
NOTE: Project close out is a function of size, complexity and cost. Cougar Village 2 and Cougar Place
final close-out approximately one year after opening. Average closeout time on projects greater than
one year in duration at Michigan State was reported as 596 days (Michigan State University, 2008)
18
What are UH Auxiliary Facilities? How do they operate?
Auxiliary Funds -Self-supporting activities are recognized in the Auxiliary Fund. These
activities include income and expenses from activities such as: housing, food service,
parking, student activities, special facilities and athletics.
19
How do we fund and budget our
Auxiliary facilities?
Fee revenues fund the
operating budget:
–
–
–
–
–
–
Staffing costs
Program operating costs
Debt service costs
Maintenance costs
Major repair cost
Capital Renewal,
Replacement funding
Transfers to the capital
budget:
– Financing, debt service
budgeting
– Major
repairs/renovations
project funds
– Capital Renewal project
funds
20
How do Auxiliaries generate revenue to cover their
operating budgets? User fees and hosted events.
21
Requirements for UH Auxiliaries that
rent their facilities for income.
• UH System Administrative Policy 01.B.06, covers
– UHS policies
– Auxiliary facilities use
– Maintenance costs
• UH Manual of Administrative Policies and Procedures 9.03.01, (Being
Updated) covers
– Reservation and Rental policies
– Facility Use Fees
– Facilities Use Agreement
• UH Manual of Administrative Policies and Procedures 9.04.01, (New)
covers
– Capital Renewal Requirements
– Renewal Funds Set Aside
22
Why MUST we budget for Capital Renewal and How?
• New buildings
– BOR policy required budget for facility renewal
• E&G buildings
– Facility condition audit (FCA)
– Capital Improvement Program (CIP)
– Capital Renewal Deferred Maintenance (CRDM)
• Auxiliary buildings
– Productive life, carry 20year+ debt load
– Self-supporting
• Create a “renewal fund” or finance a replacement?
23
Auxiliary Facilities Condition Assessment (BOR May 2014)
A
B
Bldg.
No.
C
D
Bldg
Abbr
Cat egory
Building Name
Gros s Area
FCNI
v
(General
Def erred
Maint enanc e
Maint enanc e
Projec t
Projec t
Cos t * (4Q
Cos t **(4Q
2013)
2015 $)
Spac e Ty pe
Condit ion)
E
Def erred
F
G
Ot her
Renov t n
$/ SF Per
THECB
H
Tot al Ot her
Tot al Projec t
Renov at ion
Renewal Cos t
Cos t
***
CATEGORY I -- NEW CONSTRUCTION / REPLACE IN PLACE
1
2
3
4
5
6
0557
0555
0558
0556
0559
BH
LH
TH
SH
OB
Bates Residence Hall
Law Residence Hall
48,462
45,556
54,045
39,933
76,864
835 beds,
total
Taub Residence Hall
Settegast Residence Hall
E. E. Oberholtzer Res. Hall
TOTAL
140.30%
138.90%
138.60%
125.00%
70.80%
1 Non E&G
1 Non E&G
1 Non E&G
1 Non E&G
1 Non E&G
$
$
$
$
$
5,858,720
5,620,800
6,420,320
6,389,280
16,355,681
$
$
$
$
$
6,617,213
6,348,491
7,251,520
7,216,462
18,473,153
$
$
$
$
$
158
158
158
158
158
$
$
$
$
$
264, 860
7,656,952
7,197,895
8,539,074
6,309,414
12,144,575
TOTAL
$
$
$
$
$
14,274,165
13,546,387
15,790,594
13,525,876
30,617,728
$87, 754, 750
CATEGORY III -- REHABILITATE OR REPAIR
7
8 0562
ADB
A. D. Bruce Religion Center
21,503
61.10%
1 Non E&G
$ 3,870,540 $
4,371,636 $
204 $
4,386,612 $
9
10 0525
11 0567
12
HC
UCS
UH Health Center Renovation
11,789
38,657
43.7%
42.50%
2 Non E&G
2 Non E&G
$ 3,241,975 $
$ 4,675,000 $
3,661,694 $
5,280,244 $
438 $
256 $
5,163,582 $ 8,825,276
9,896,192 $ 15,176,436
13
14 0584
15 0531
16 0504
17
UC Satellite Renov/Repurposing
TOTAL
50, 446
TOTAL
8,758,248
$24, 001, 712
CATEGORY IV -- MAINTENANCE
MR
HP
CCC
Moody Towers Res. Halls
1091 beds
314,967
189,804
14,506
Hofheinz Pavilion
Child Care Center Renovation
TOTAL
36.00%
29.6%
32.50%
3 Non E&G
3 Non E&G
3 Non E&G
$ 57,761,485 $
$ 16,080,480 $
$ 2,611,080 $
65,239,517 $
18,162,323 $
2,949,121
158 $
319 $
$
519, 277
</=35%: keep as-is, maintain for a ten to fifty year life; >/= 50%: consider replacement; minor repairs only.
MayFCIN
6, 2014
49,764,814 $ 107,526,299
60,547,476 $ 78,709,799
$ 2,949,121
TOTAL $189, 185, 219
24
Renewal or Replacement Needed
Non E&G Projects
Clockwise from Top Right:
UH Health Center; Hofheinz
Pavilion, ground floor; Child
Care Center, exterior; UC
Satellite, ground floor UC
Example: Budgeting for Renewal
Natatorium Capital Renovation
We have the authority to do the work, but we
have to finance the project (April 2014)
Design Phase Financing: FY 2014 Rec/Wellness
Ending Balance $0.9M.
Construction Financing: Student fees
26
Creating a Public Private Partnership
Chancellor Khator is forming a committee to develop policies
for managing PPPs
Goals:
• Engage a private sector partner with a vested interest in UH’s campus, growth and success.
• Engage private sector management for all specified aspects of facilities management
• Create a profit sharing agreement
Desired Qualifications:
•
•
•
•
Experience with UH Athletics
Experience with UH
Experience with higher education
Experience in Houston
Business Plan:
• Promote UH facilities as a venue for non-UH events
• Develop partnership that anticipates growth of UH venues and athletics program
• Use comps from athletics contract data base of 1000 institutional agreements
27
Generating Revenue: FY2015 booking
schedule, TO DATE.
Cullen Performance Hall (80 Events)
Hofheinz Pavilion (2 Events)
Examples:
•
Jason Mraz
•
MOTH
•
Celtic Yuletide
•
A Soul Town Christmas
•
New Year's Message
•
IN THE MOOD - 1940's Big Band Musical Revue
•
Russell Peters
•
Outback Concert
•
Jekyll & Hyde
•
Menopause the Musical
•
Eureka
•
World-Class Talent Experience
•
Chinese New Year
•
Trailer Park Boys
Examples:
•
Humble/Kingwood Graduations
•
Goose Creek ISD
TDECU Stadium (10 Events)
Examples:
•
Pearland High School vs Deer Park High School
•
Foster High School vs Ridge Point High School Football
•
George Ranch High School vs Elkins High School
•
Galena Park ISD High School Football
•
Manvel High School Football
•
Friendswood ISD High School Football
•
Temple High School Football
•
Say No To Drugs (Photo Session)
•
Nitro Circus
28
Sample for Sporting Event Costs
at TDECU Stadium 40,000 attendance
SAMPLE SPORTING EVENT EXPENSES - Stadium
Event & Facility Operating Expenses for 40k attendance
Facility Rental – TDECU Stadium
$
35,000
5 STAR
$
44,370
UHPD
$
11,400
ADVANTAGE
$
3,200
Equipment Rental
$
16,730
S&E Event Staff
$
1,200
Custodial
$
8,294
Maintenance
$
3,159
Set-up
$
4,213
Supplies
$
1,097
*TOTAL COST: $
128,663
How do we
benchmark rates?
COMPARISONS
Stadium Rental Costs
Reliant
$75,000 per game
plus $85,000 operating
expenses for 30k fans
plus $2 ticket over 30k
-----------------------------$160,000 per game min
Rice Stadium
$115,000 per game
BBVA Compass
$130,000 plus $1.5-$3
per ticket
Concessions Comparison
TDECU Stadium
Minute Maid Park
Houston Toyota Center
NRG Reliant Staduim
Hot Dogs
Hot Dogs
Hot dogs
Hot Dog, Jumbo
$
$
6.00
Hot Dog, Topped
$
6.00
Chicken
Proposed Price 2013-2014
Texas Style Dog
$
3/1 Foot Long Hot Dog (all beef)
3/1 Footlong All Beef Hot Dog
$
7.00
6/1 All Beef Hot Dog
$
5.00
6/1 Extreme Dog (topped dog)
$
7.25
Sandwiches/Meals
$
Total Hot Dog
7.00
Hot Dog, Southern Dawg
Chicken Tender Basket
2014 MLB Pricing
$
7.00
10.00
Sanwiches & Meals
Total Entrée Products
8.00
Crispy Chicken Tender Basket - 4 piece
Chicken Tender/Fries Basket
$
8.75
Chicken Tender Basker
$
10.00
Nolan Ryan Burger
$
7.25
Nacho Grande
$
9.00
Nolan Ryan Bacon Burger
$
9.00
Rocket Burger
$
9.50
Texas Legends Single Burger
$
8.75
Chicken Sandwich
$
9.00
Nachos (Cheese & Jalapenos)
$
6.50
Nachos Supreme (cheese, chilli,
jalapenos, salsa, sour cream)
$
8.50
$ 10.00
Snacks
Burger, Htown
$
9.00
Nachos
Nacho, Supreme
Nachos
$
Nacho, Reg
$
6.50
5.25
NA Beverage
Soda/N-A Beverages
Soda, Reg
$
4.00
Soda, Souv
$
5.50
$
6.75
Nachos Grande
$
8.75
$
4.75
$
7.25
$
7.25
Total Non ALC Bev. Products
22 oz. Soda
$
5.00
Souvenir Soda
$
6.75
32 oz. Souvenir - refillable
$
7.50
Regular 22 oz. Soda
$
5.25
Bottled Water
$
5.00
Soda/NA Beverage
Alcohol
Beer, 16oz Dom
Nachos
20 oz. BIB Coke cup
$
7.50
32 oz. BIB REFILL Souvenir Soda
Total Bottled Beer Products
Alcohol
Alum. Bottled Beer - 16 oz.
$
8.25
Bottled Beer - 12 oz. Import
$
8.00
Bottled Beer - 24 oz. Import
$
11.25
20 oz. DOM Draft Souvenir Cup
31
SAMPLE Concert Event Costs
40,000 attendance at TDECU
SAMPLE CONCERT EVENT 40,000 attendance
Building Rent – TDECU Stadium
$
Field Cover
$
65,000.00
Barricade
$
4,500.00
Box Office
$
5,000.00
Dressing Room
$
Ticket Takers
$
Subtotal $
35,000.00
8,500.
15,000.00
$
125,000.00
Stage Hands
$
85,000.00
Electrician
$
Police
$
15,000.00
Security
$
10,000.00
Ushers
$
20,000.00
Runners (3)
$
600.00
Medical
$
6,500.00
Generator(s)
$
40,000.00
Fuel
$
3,500.00
Chairs
$
28,000.00
Phones/Internet
$
4,200.00
Spotlights
$
8,500.00
Equipment Rental
$
30,000.00
Misc: (visqueen/plywood/signage
$
15,000.00
Pipe & Drape
$
5,000.00
Spotlights
$
8,500.00
20,000.00
$
14,500.00
Subtotal $
439,300.00
Clean up
$
8,500.00
Credit Card (3.5%)
$
10,000.00
MISC
$
2,000.00
Subtotal $
NC
Field Cover
NC
Barricade
$
Box Office
$
5,000.00
Dressing Room
$
8,500.00
Ticket Takers
$
Subtotal $
133,000.
Staging
Golf Carts
SAMPLE UH CONCERT EVENT 40,000 attendance
Building Rent
Staging
*Does not include promoter costs, advertising, local
transportation
$
15,000.00
33,000.00
$
85,000.00
Stage Hands
$
65,000.00
Electrician
$
Police
$
15,000.00
Security
$
10,000.00
Ushers
$
20,000.00
Runners (3)
$
600.00
Medical
$
6,500.00
Generator(s)
$
40,000.00
Fuel
$
3,500.00
Chairs
$
28,000.00
Phones/Internet
NC
Spotlights
$
8,500.00
Equipment Rental
$
30,000.00
Misc: (visqueen/plywood/signage
$
15,000.00
Pipe & Drape
$
5,000.00
Spotlights
$
8,500.00
Golf Carts
$
14,500.00
20,000.00
Subtotal $
375,100.00
Clean up
$
8,500.00
Credit Card (3.5%)
$
MISC
$
Subtotal $
20,500.00
Estimate Cost of event*
Estimate Cost of event*
4,500.00
592,800.00
*Does not include promoter costs, advertising, local transportation
$
10,000.00
2,000.00
20,500.00
428,600.00
Sample Booking – Hofheinz
High school graduation
33
Sample Booking – Cullen
34
Sample Booking – TDECU
12,500 seats
35
Sample Booking – Cullen
SFAC event
36
Questions?
37
Thank You
38