Agenda
Board of Regents
Facilities and Land Management Committee
Wednesday, April 8, 2009, *2:30 p.m. – 5:00 p.m.
Prince William Sound Community College
Valdez, Alaska
*Times for meetings are subject to modifications within the April 8-9, 2009 timeframe.
Committee Members:
Timothy Brady, Committee Chair
Carl Marrs, Committee Vice-Chair
Mary K. Hughes
I.
Call to Order
II.
Adoption of Agenda
Robert Martin
Kirk Wickersham
Cynthia Henry, Board Chair
MOTION
"The Facilities and Land Management Committee adopts the agenda as
presented.
I.
II.
III.
IV.
V.
Call to Order
Adoption of Agenda
Full Board Consent Agenda
A.
Formal Project Approval for the Energy Technology Facility
at the University of Alaska Fairbanks
B.
Formal Project Approval for the Science Renovation at the
University of Alaska Anchorage
New Business
A.
Schematic Design Approval for the Northwest Campus
Deferred Renewal at the Northwest Campus in Nome, Alaska
B.
Information Item for the Toolik Field Station Stimulus Project
at the University of Alaska Fairbanks
C.
Information Item for the TVCC Revitalization Phase 3
Exterior Envelope at the University of Alaska Fairbanks
Ongoing Issues
A.
Update for the ARSC Facility Development at the University of
Alaska Fairbanks
B.
Update for the Co-generation project at the University of
Alaska Anchorage.
C.
Status Report on University Investments in Capital Facilities,
Construction in Progress, and Other Projects
D.
Update on IT Issues
Facilities & Land Management Committee Agenda: Page 1 of 22
Agenda
Facilities & Land Management Committee
April 8, 2009
Valdez, Alaska
VI.
VII.
Future Agenda Items
Adjourn
This motion is effective April 8, 2009."
III.
Full Board Consent Agenda
A.
Formal Project Approval of the Energy Technology Facility at the
University of Alaska Fairbanks
Reference 10
The President recommends that:
MOTION
“As required by Regents’ Policy 05.12.042, the Facilities and Land
Management Committee recommends that the Board of Regents
approves the Formal Project Approval request for the University of
Alaska Fairbanks Energy Technology Facility as presented, and
authorizes the university administration to proceed through
schematic design not to exceed a Total Project Cost of $30,600,000.
This motion is effective April 8, 2009.”
POLICY CITATION
In accordance with Regents’ Policy 05.12.042, 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. It also represents authorization to complete the
development of the project through the schematic design, targeting the
approved scope and budget, unless otherwise designated by the approval
authority.
A FPA is required for all projects with an estimated TPC in excess of $2.5
million in order for that project’s inclusion of construction funding to be
included in the university’s capital budget request, unless otherwise
approved by the Board. The level of approval required shall be based
upon TPC as follows:



TPC > $4 million will require approval by the Board based on
recommendations from the Facilities and Land Management
Committee (F&LMC).
TPC > $2 million but ≤ $4 million will require approval by the
F&LMC.
TPC > $1 million but ≤ $2 million will require approval by the
Chairperson of the F&LMC.
Facilities & Land Management Committee Agenda: Page 2 of 21
Agenda
Facilities & Land Management Committee
April 8, 2009
Valdez, Alaska

TPC ≤ $1 million will require approval by the university’s Chief
Finance Officer (CFO) or designee.
RATIONALE AND RECOMMENDATION
1.
Background
In January 2008, on behalf of the UA System, UAF launched the Alaska
Center for Energy and Power (ACEP), a new research unit to investigate
energy options for the state and serve as a coordination point for energy
related activities across the University of Alaska campuses and the state.
ACEP builds upon years of energy research organized under the Arctic
Energy Technology Development Laboratory. ACEP is part of the
Institute of Northern Engineering, the research branch of the College of
Engineering and Mines.
ACEP’s mission is to meet state, industry and federal demand for applied
energy research to lower energy costs throughout Alaska, and to develop
economic opportunities for the state, its residents and industries.
The three legs of ACEP
Community Energy Solutions - ACEP will be where the rubber meets the
road for developing sustainable energy solutions for Alaska communities.
ACEP will serve as a proving ground so efficient and effective
technologies can be implemented throughout the state, particularly in rural
Alaska where diesel fuel and power failures come at a high cost.
Powering the Economy – ACEP will provide the research needed to
develop big power projects in Alaska for resource development needs in
the state and arctic regions. A new gold rush has begun for resources in an
Arctic with diminished sea ice. Growth in Alaska and throughout the
Arctic will require power, and Alaska has the opportunity to position itself
as a new-world power broker. Large- and small-scale energy and power
production is an issue of economic, energy and national security.
The Energy Field of the Future – ACEP will extend ongoing research at
the University of Alaska in gas hydrates, heavy oil, coal, carbon
sequestration and other opportunities so that the oil industry and the state
are prepared for the future. The energy field of the future does not need to
be limited to extraction technologies. ACEP will investigate new ways of
using existing oil infrastructure in an environment of declining oil
reserves.
ACEP is interdisciplinary, needs-driven and agile. Much of the previous
energy research at UAF was funded through the Department of Energy
fossil energy program, and as such was limited in scope and focused on
Facilities & Land Management Committee Agenda: Page 3 of 21
Agenda
Facilities & Land Management Committee
April 8, 2009
Valdez, Alaska
issues of national interest. ACEP will focus on the needs of the state, its
residents and its industries, and with state involvement, will be able to
target energy solutions from the community to the state level. ACEP will
focus on applied research as well as testing and development in
cooperation with other state agencies to test technologies being proposed
for Alaska.
ACEP incorporates all three MAUs of the University of Alaska, taking
advantage of existing strengths at each campus. ACEP is developing a
wide range of partnerships outside the university at the local, state,
national and international levels to ensure research conducted through
ACEP will be relevant and current.
2.
Project Scope
The new Energy Technology facility will attract and retain collaborative
initiatives with public and private entities and be the catalyst for power
and energy solutions in the State of Alaska. Solutions for energy
production, consumption, and distribution are critical right now when
most Rural Alaskans cannot afford to heat their homes and are struggling
just to keep food on their tables.
The new building and program will encourage abundant undergraduate
research opportunities through the programs cohesiveness with the
College of Engineering and Mines. Undergraduate research is a key
component to the recruitment and retention of Alaska’s best and brightest
students.
Research: ACEP does not have any designated space, and must use space
in the Duckering Building and other locations on campus, including the
Mineral Industry Research Laboratory facility. The office space in the
MIRL building is limited to five small cubicles (70 – 100 square feet), and
the lack of space requires researchers to double up in a small conference
room and reception area. The only ACEP laboratory space is limited to a
single small hydrogen laboratory, which houses numerous research and
testing activities, and a diesel engine test bed in a small, unheated connex
behind the MIRL building. For ACEP to help meet the demand for applied
energy research in Alaska, it is crucial that the program have designated
space to conduct research, testing and demonstrations. ACEP must also
have space where public and private entities can interact with the
university. With its present distribution across campus, there is no central
location that brings the university and the community together around
energy solutions. In addition, the lack of appropriate space also makes it
challenging to hire and retain the type of world-class researchers needed to
meet ACEP’s long-term program goals.
Facilities & Land Management Committee Agenda: Page 4 of 21
Agenda
Facilities & Land Management Committee
April 8, 2009
Valdez, Alaska
UAF is proposing construction of a new facility for ACEP to meet their
programmatic needs. The fast-tracked building will be completed 20 – 24
months after funding is secured, with a target move-in date in late 2011.
Featured in the building will be one floor dedicated to wet, dry, and
hazardous research labs. Each lab will be unique in function, but generic
enough in design to allow for changes in initiatives. Above the labs will be
faculty and student researcher space sized for the current and known
growth of ACEP. At least 15 offices will be created along with graduate
student space. The proposed site is next to the UAF power plant, where
ACEP researchers can take advantage of the plant’s large-scale power
production capabilities and work closely with plant staff. The site also
makes ACEP accessible to business and industry partners, and university
undergraduate students participating in various research and testing
activities and projects.
Service to the Community is paramount for science and learning that deals
directly with the economic health and welfare of Alaskans. The need for
research space ties directly to how the public will access and utilize UAF.
The building users will generate useful and innovative research that
benefits every resident in the state. To support community engagement,
limited space will be available for presentation of research and interaction
between investigators and interested community members.
Leveraging UAF’s Lease Payments will help support construction and
administrative operations. Currently the Facilities Services Division of
Design and Construction department is housed in a leased facility off of
the main campus in Fairbanks. The division is charged with planning,
designing, and constructing all types of projects with varying dollars
amounts and schedule. To better align with the goals of the administration,
added space is proposed in the Energy Technology Building for the thirty
staff. The new space will accommodate the current staff in close
proximity to other Facility Services staff. In the future, if ACEP programs
grow beyond projections and other space is available for Design and
Construction staff, this can serve as program expansion space. In the near
term using existing lease payments to cover some of the required debt and
bringing this function on campus provides significant advantages.
The university intends to utilize an Innovative Procurement process to
select a Construction Manager at Risk for preconstruction services and
possibly the construction of the facility.
Facilities & Land Management Committee Agenda: Page 5 of 21
Agenda
Facilities & Land Management Committee
April 8, 2009
Valdez, Alaska
3.
Proposed Cost and Funding Source(s)
Over the course of the last 10 months, significant fiscal planning has
occurred at UAF with advice from the Statewide System. The fiscal
planning for this facility has been approached from a holistic view of
UAF’s master plan. UAF’s fiscal planning includes the three major
facilities that will require long-term operating funding commitments as
well as the contingency that under poor conditions, funding may be
needed for critical infrastructure renewal. The three major facilities are:
the Life Sciences Innovation and Learning Facility (UAF highest priority),
the ARSC facility lease (ARSC direct funded), and the Energy
Technology Facility. Fiscal scenarios consider five key sources; state
funding support, UA revenue bonds with UAF funded debt service,
corporate and private develop efforts, and most recently, the federal
stimulus grant opportunities.
In addition to UAF’s strategic program priorities and the associated space
constraints, there are two overriding factors that create the need to move
these projects quickly:


UAF must start construction prior to March 2010 to be within the
window of UA’s next F&A rate proposal cycle. UA’s F&A rate
proposal determines UAF’s indirect cost recovery rate (ICR) for
the next three years. Due to the lack of research facility
investments, UAF’s F&A rate has declined over the last two cycles
from 50.4%, to 47.5% to the current 45.1%. The operating impact
between a 50% rate and a 45% rate on $80 million of eligible
research is $4 million per year.
Active progress on these facilities will position UAF to compete
more successfully for the significant research funding
opportunities resulting from the federal American Recovery &
Reinvestment Act (ARRA). The ARRA funding opportunities
may include marginal construction support, but most important is
research funding for critically important Alaskan issues;
specifically energy and health.
Specific to this project, the UAF FY10 Capital Budget project request of
$30.6 million consists of $15.3 million state funding and $15.3 million
non-general funds, specifically University Receipts. At a minimum, fifty
percent of the total project cost ($15.3M) will be provided through nongeneral funds which may include private donations from interested donors,
alumni, and general industry, in addition to the UA revenue bond funding.
The debt service for the UA bond would come from UAF indirect cost
recovery as a result of increased research activity, redirecting existing
Facilities & Land Management Committee Agenda: Page 6 of 21
Agenda
Facilities & Land Management Committee
April 8, 2009
Valdez, Alaska
lease payments, and, in the near term, reallocation of UAF operating
funds.
Appendix D provides a Preliminary Business Plan for the UAF Energy
Technology Facility. There are state funding uncertainties that will be
resolved over the next two months. The impact of these uncertainties
relative to the business plan will be discussed in depth during the
presentation. A more robust business plan will be provided when UAF
seeks schematic design approval expected for June 2009.
4.
Maintenance and Operating Costs (M&O)
Annual Operating and Maintenance costs have been calculated based on
2012 estimates. Costs are subject to change as other factors besides
inflation play a role such as oil cost and utility rates. A significant amount
of the M&O funding will be requested from state funding as available ICR
will be directed to bond payments. The business plan presented in
Appendix D includes provisions for these costs.
Trash/Grounds
Utilities
Custodial
Annual Total
$20,374
$234,766
$116,689
$371,829
Fully funded after 5 years - yrs 1-5 build up 20%/yr
M&R (1.5% of value) $450,000
R&R
$17,647
5.
Consultant(s)
Consultant selection is underway using a publicly advertised Request for
Proposals.
6.
Other Cost Considerations
The programs associated with Energy Research are, for the most part,
grant funded. The research revenue generated by these initiatives covers
the incremental operating cost of the program. The UAF FS Division of
Design and Construction is a recharge center funded on a capital project
assessment basis.
7.
Schedule for Completion
Design Start:
April 2009
Construction Start:
August 2009 (contingent upon funding)
Construction Complete: August 2011 (contingent upon funding)
Facilities & Land Management Committee Agenda: Page 7 of 21
Agenda
Facilities & Land Management Committee
April 8, 2009
Valdez, Alaska
B.
Formal Project Approval for the Science Renovation at the University of
Alaska Anchorage
Reference 11
The President recommends that:
MOTION
“As required by Regents’ Policy 05.12.042, The Facilities and Land
Management Committee recommends the Board of Regents approve
the Formal Project Approval request for the Science Renovation at
the University of Alaska Anchorage, as presented, and authorizes the
University administration to proceed through schematic design not to
exceed a Total Project Cost of $11,400,000. This motion is effective
April 8, 2009.”
POLICY CITATION
In accordance with Regents’ Policy P05.12.042, 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. It also represents authorization to complete the
development of the project through the schematic design, targeting the
approved scope and budget, unless otherwise designated by the approval
authority.
A FPA is required for all projects with an estimated TPC in excess of $2.5
million in order for that project’s inclusion of construction funding to be
included in the university’s capital budget request, unless otherwise
approved by the Board. The level of approval required shall be based
upon TPC as follows:

TPC > $4 million will require approval by the Board based on
recommendations from the Facilities and Land Management
Committee (F&LMC).

TPC > $2 million but ≤ $4 million will require approval by the
F&LMC.

TPC > $1 million but ≤ $2 million will require approval by the
Chairperson of the F&LMC.

TPC ≤ $1 million will require approval by the university’s Chief
Finance Officer (CFO) or designee.
RATIONALE AND RECOMMENDATION
1.
Background
The Science (SCI) building will be vacated in the Fall of 2009, due to the
science programs in this building moving into the new Conoco Phillips
Facilities & Land Management Committee Agenda: Page 8 of 21
Agenda
Facilities & Land Management Committee
April 8, 2009
Valdez, Alaska
Integrated Science Building (ISB). The backfill plan shows that various
dry labs that serve the science curriculum will be relocated from Beatrice
McDonald Building (BMH) and the Engineering Buildings into the SCI
building. Originally constructed in 1975, the SCI building will require
remodeling, structural, mechanical and electrical systems renewal and
tenant improvements for its redefined function. During the spring of
2008, consultants reviewed the building and the backfill program plan and
developed a renovation plan for the building.
2.
Project Scope
This project will renovate the existing SCI building to provide classrooms,
instructional labs, offices, prep rooms and other supporting areas. The
mechanical and electrical systems will be upgraded to extend the life of
the building, ensure code compliance and improve efficiencies of pumps,
motors, lights and controls. The structure will be upgraded to comply with
current seismic requirements. The building envelope will be improved for
thermal efficiency.
Funding is not certain until July 2009. If full funding is not received the
project will be phased with the first phase to remove hazardous material,
upgrade structural, mechanical and electrical as funding allows. A Phase II
with FY11 funds would finish the renovation work.
3.
Proposed Cost and Funding Source(s)
FY09 Capital Appropriation Fund #17043-564303
FY10 Capital Appropriation Fund # to be determined
$1,250,000
$11,400,000
*Note: when $11,400,000 is fully appropriated, the $1,250,000 will be
transferred back to FY09 RR projects.
4.
Maintenance and Operating Costs (M&R)
This project will reduce maintenance and operating costs due to
installation of new building systems.
5.
Consultant(s)
Architects Alaska was chosen through the RFP process to do
programming, and if approved, the design.
6.
Other Cost Considerations
It has been identified that the standby generator will need to be replaced;
this cost is being calculated.
If the building is phased because full funding is not obtained, the total
project cost may increase and would be addressed in future approvals.
Facilities & Land Management Committee Agenda: Page 9 of 21
Agenda
Facilities & Land Management Committee
April 8, 2009
Valdez, Alaska
7.
Schedule for Completion
Design:
Nov 2008 to Aug 2009
Bidding:
Sep 2009
Construction:
Oct 2009 to Aug 2010; Aug 2011 if phase funded
Occupancy:
Aug 2010 pending full funding; Aug 2011 if phase funded
Our project delivery strategy is to accomplish the work in phases as
funding becomes available. We envision two phases for this project Phase
I: Demolition, hazardous material removal, structural, electrical and
mechanical renewal and Phase II: Classroom and office space renewal.
IV.
New Business
A.
Schematic Design Approval for the Northwest Campus Deferred Renewal
at the Northwest Campus in Nome, Alaska
Reference 12
The President recommends that:
MOTION
“As required by Regents’ Policy 05.12.043, the Facilities and Land
Management Committee approves the Schematic Design Approval
request for the University of Alaska Fairbanks Northwest Campus
Deferred Renewal Project as presented, and authorizes the University
administration to proceed, not to exceed a Total Project Cost of
$3,500.003. This motion is effective April 8, 2009.”
POLICY CITATION
In accordance with Regents’ Policy 05.12.043, 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.
Unless otherwise designated by the approval authority or a Material
Change in the project is subsequently identified, SDA also represents
approval of the proposed cost of the next phase(s) of the project and
authorization to complete the Construction Documents process, to bid and
award a contract within the approved budget, and to proceed to completion
of project construction. Provided, however, if a Material Change in the
project is subsequently identified, such change will be subject to the
approval process described below.
For the Schematic Design Approval, if there has been no Material Change
Facilities & Land Management Committee Agenda: Page 10 of 21
Agenda
Facilities & Land Management Committee
April 8, 2009
Valdez, Alaska
in the project since the Formal Project Approval, approval levels shall be
as follows:

TPC > $4 million will require approval by the Facilities and Land
Management Committee (F&LMC).

TPC > $2 million but ≤ $4 million will require approval by the
chair of the F&LMC.

TPC ≤ $2 million will require approval by the university’s Chief
Finance Officer (CFO) or designee.
If there has been a Material Change in the project since the Formal Project
Approval, the Schematic Design approval levels shall be the same as the
Formal Project Approval.
RATIONALE AND RECOMMENDATION
1.
Narrative Description
The Library and Nagozruk building’s pilings are failing and must be
replaced. New pilings for the Nagozruk building will be placed south of
the existing structure. This will allow usage of the building during piling
installation, better handicap access and provide better visibility from the
street. A site investigation has been conducted and we are in the process
of determining the specific piling design for each piling.
The new pilings for the Library will be placed near the satellite buildings,
and north of the new Nagozruk building location. This follows the longrange Master Plan for the campus and will provide access to restrooms for
the satellite buildings as well as a place for students to study before and
after classes. Once the pilings are installed, the structure will be moved
and placed on its new foundation.
The services of a structural mover, a company that moves structures, are
available in Nome. With the high price of building materials in Nome, the
recycling of buildings is vital and common to the town. Equipment is
readily available to push/slide buildings onto a flat bed surface. No
special equipment is needed.
Each building on campus has its own service drop from the electric utility,
this increases costs and maintenance to the campus. Electrical service will
be combined and redistributed to the relocated buildings, thus reducing
several existing meters, usage charges and maintenance issues. The main
service will be to the relocated library, with a distribution panel in the
mechanical room.
Water and sewer connections will be modified to have one connection to
the city’s main then redistributed to those buildings requiring utilities.
Facilities & Land Management Committee Agenda: Page 11 of 21
Agenda
Facilities & Land Management Committee
April 8, 2009
Valdez, Alaska
Thus abandoning a poorly functioning sewer line and reducing
maintenance costs.
The existing heating and ventilation systems in the relocated buildings will
be modified to improve distribution of heat and lower costs. The
associated fuel tanks will be consolidated and reduced.
2.
Graphic Description
The buildings will be relocated to provide better foundation, greater
visible presence and combine services to buildings including reduction of
electrical services and heating equipment to campus.
3.
Proposed Cost and Funding Source(s)
This should describe the cost and funding source(s) for the next phase of
the project and for eventual completion of the project.
Funding for this project comes from a state Capital Appropriation, with a
line item appropriation in the amount of $3,500,003.
4.
Schedule for Completion
Design
Purchase of pilings to be shipped to Nome
Bid Period
Anticipated construction period
Anticipated Beneficial Occupancy Date
August 2008 - August 2009
August 2009
September 2009
April 2010 – August 2010
mid-August 2010
5.
Affirmation
The relocation of the buildings conforms to Northwest Campus’ Master
Plan to unify the campus and make room for a new consortium library as
well as provide a stable foundation for important campus buildings.
B.
Information Item for the Toolik Field Station Project at the University of
Alaska Fairbanks
BACKGROUND
The Toolik Field Station is located in the northern foothills of the Brooks
Range in northern Alaska on the southeast shore of Toolik Lake, 254 km
north of the Arctic Circle adjacent to the Dalton Highway. Toolik Field
Station supports 300-400 researchers annually between April through
October and more than 100 scientists and students are at Toolik on any
given day during midsummer. Toolik Field Station is a unique and
valuable center for arctic research because of its history of investment in
long-term monitoring of climate, hydrology, biodiversity, and
physiological and ecological processes.
Facilities & Land Management Committee Agenda: Page 12 of 21
Agenda
Facilities & Land Management Committee
April 8, 2009
Valdez, Alaska
The land is owned by the Federal Bureau of Land Management and leased
to the University of Alaska. All facilities at Toolik Field Station are
owned by NSF or UAF. Toolik is operated and administered by the
Institute of Arctic Biology at the University of Alaska Fairbanks under a
Cooperative Agreement with the National Science Foundation (NSF). The
Cooperative Agreement is worth approximately $3M/year.
Toolik Field Station supports year round operations and research and the
TFS development plan calls for expanded winter capable operations,
laboratories, dormitories, and support facilities within 5 years.
PROJECT SCOPE
The NSF has allocated approximately $5M from the American Recovery
and Reinvestment Act for Toolik facility and infrastructure improvements.
The highest priority project in the Toolik Development Plan is a new
Kitchen and Dining Facility that can serve 150 people in the summer and
50 people during the winter. Preliminary planning for the project indicates
that it is feasible within the available funding. It is also likely that some
improvements will need to be made to the water supply system so that it is
winter capable.
Design and construction of the project will be performed by the NSF
Arctic Logistics Contractor (CH2M Hill Polar Services) or their
subcontractors. UAF Facilities Services will not have a procurement role,
but will have a review and monitoring role in the project.
FUNDING
The exact amount that will be allocated to Toolik Facilities Upgrades will
be determined by the end of March, 2009. The initial indication is $4.5M
in construction funds will be allocated for this project. It is currently
unknown whether funding will be adequate for the entire project. The
University will also investigate its potential for contributing additional
funding, if necessary for completion.
SCHEDULE
Project Scoping
Design
Possible Site Work
Construction
March 2009 to April 2009
April 2009 to November 2009
August 2009 to October 2009
November 2009 to August 2010
Note: The majority of construction is planned to be modular and
performed off site.
Facilities & Land Management Committee Agenda: Page 13 of 21
Agenda
Facilities & Land Management Committee
April 8, 2009
Valdez, Alaska
APPROPRIATE APPROVALS
Board of Regents’ approval under Policy 05.12 will be needed for this
project. It is possible that a combined Formal Project Approval and
Schematic Approval will be requested in the June 4-5, 2009 Board of
Regents Meeting. The combined approval may be appropriate due to
procurement being performed by the NSF and its Arctic Logistics
Contractor.
C.
Information Item for the TVCC Revitalization Phase 3 Exterior Envelope
at the University of Alaska Fairbanks
Reference 13
POLICY CITATION
In accordance with Regents’ Policy P05.12.047, approval levels required
for changes in the source of funds, increases in budget, or material in project
scope identified subsequent to schematic design approval shall be determined
by the 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 $1.0 million will require
approval by the board based on recommendations from the regents’
committee responsible for facilities;
 Changes with an estimated impact in excess of $0.4 million but not more
than $1.0 million will require approval by the regents’ committee
responsible for facilities;
 Changes with an estimated impact in excess of $0.2 million but not more
than $0.4 million will require approval by the chair of the regents’
committee responsible for facilities;
RATIONALE AND RECOMMENDATION
1.
Narrative Description
The UAF Tanana Valley Campus Center at 604 Barnette Street in
Fairbanks, Alaska (formerly the Fairbanks Courthouse) was designed and
constructed in 1962-63. The building has four stories plus a mechanical
penthouse with a total of 78,504 gross square feet. Since taking ownership
in 2003, the University has accomplished a series of two State funded
projects and two additional projects funded by the Denali Commission.
The second State funded project, Phase 2 Mechanical and Electrical
Upgrades, is in the final stage of completion.
The Phase 3 Exterior Envelope project will replace the entire existing
exterior building envelope and windows which have failed.
Facilities & Land Management Committee Agenda: Page 14 of 21
Agenda
Facilities & Land Management Committee
April 8, 2009
Valdez, Alaska
The existing exterior wall system consists of enamel coated aluminum
storefront panels with an R-value of no more than 4. The panels enclose
asbestos containing materials (ACM) that provide most of the insulating
value. Hazardous materials handling methods will be employed for
demolition and disposal of the panels. The exterior aluminum windows
have deteriorated and are beginning to fall out of the exterior skin. The
storefront system also acts as the building’s vapor barrier which is not
continuous, and is leaking. The poor wall system and inconsistent vapor
barrier has led to some corrosion of the structural systems, access for
mold, drafty and uncomfortable spaces, and poor use of energy.
The new wall system will be an Exterior Insulation Finish System (EIFS)
exterior integrated with a pre-fabricated, lift-in-place panel system. The
system is medium priced with many advantages including low
maintenance, durability, excellent thermal performance, and site assembly
methods that result in minimum exposure of the building interior during
construction. The new panel system will connect to the structural
connection points of the existing curtain wall system, and will provide an
R-21 insulation value and a continuous vapor barrier at the perimeter of
the entire facility.
The new windows will be fixed double pane, argon filled, low E-coated,
high performance (HP) insulated windows with extruded aluminum
(thermal break) frames. There are approximately 224 windows and
replacement will improve both function and aesthetics. Each window will
have a separate window shade.
All storefront and insulated hollow metal doors will be replaced as part of
this project. Storefront interior and exterior doors, sidelights and transoms
will be replaced with insulated, thermal break (HP) systems. The
building’s exterior electrical equipment will be replaced with colorcorrected, high pressure sodium lights and new headbolt outlets on control
points for energy conservation.
The exterior look of the building will take on a 21st century, modernized
look utilizing a series of linear and square/rectangular panels. The
existing penthouse and building parapets will be modified to tie into the
building design.
The sizes will allow for day lighting deeper into the building spaces
including the programmed student lounge areas. An insulated, translucent
wall system will be installed on the exterior wall where the main stair is
located at the east end of the facility (Barnette Street). Daylight will
penetrate into the building through the panels while still maintaining a
thermal buffer from the exterior cold.
Facilities & Land Management Committee Agenda: Page 15 of 21
Agenda
Facilities & Land Management Committee
April 8, 2009
Valdez, Alaska
Replacement of the exterior envelope will impact the interior perimeter
hydronic heating system and various architectural, mechanical, and
electrical aspects of the interior rooms. The impact to these systems and
areas will be addressed as needed by this project.
2.
Proposed Cost and Funding Source(s)
SB 221 SLA08 FY09 General Fund Appropriation
UAF & TVC Operating Funds
$7,000,000
$400,000
3.
Variance Report
The reason for this Total Project Cost Increase request is to award
construction of the Formal Project and Schematic Design approved scope
of work. There has been no significant change in the scope of work as a
result of the design process. The Contractor’s low bid to construct the
work was significantly higher than the Engineer’s estimated cost. An
analysis for reasons the estimate differs from the bid amount identified
three likely causes. The estimate did not include sufficient costs for the
project schedule, wall framing, and handling of hazardous materials. The
scope of the project has not changed from the time of Formal and
Schematic approval and the University is requesting approval to add funds
and proceed with the work.
4.
Schedule for Completion
Design Development (65%)
Construction Documents (95%)
Bid Documents (100%)
Bid Period
Construction
Occupancy
October 10, 2008
December 5, 2008
January 5, 2009
January 11 to March 15, 2009
March 15 to October 31, 2009
Continuous Coordinated Occupancy
5.
Affirmation
The Board of Regents gave Formal Project Approval at the June 18, 2008
Meeting.
6.
Action Requested
Total Project Cost Increase Approval by the Chair of the Facilities and
Land Management Committee.
Facilities & Land Management Committee Agenda: Page 16 of 21
Agenda
Facilities & Land Management Committee
April 8, 2009
Valdez, Alaska
V.
Ongoing Issues
A.
Update for the ARSC Facility Development at the University of Alaska
Fairbanks
An information item was provided at the December 1-2, 2008 and the
February 17-18, 2009 Board of Regents meetings regarding the proposed
ARSC Facility Development Project. This third information item is an
update on the project’s progress and subsequent changes.
PROJECT INTENT
Capitalize on private/public partnerships or agency partnerships in order
to:
•
•
•
•
•
•
develop new facilities which alleviate the physical and
infrastructure constraints currently limiting growth of the ARSC;
complete the Data Center element in time to meet grant funding
opportunities which will occur in Federal FY 2010;
set the stage for partnering opportunities and ARSC expansion
opportunities for a 25 year planning horizon;
capture and share with a development partner the “value” inherent
in the synergies made possible by an ARSC Technology Park;
leverage the “waste heat” produced in the Data Center to reduce
operations cost and maximize Phase I development; and,
enhance the Strategic goals of the University of Alaska, University
of Alaska at Fairbanks, and the ARSC.
An RFP was issued on November 21, 2008 and the initial due date for
proposals was January 29, 2009, but has been extended to April 2, 2009.
The developers will have the option of submitting proposals for building
on University owned land or private parcels. The University will select the
Proposer that best meets the development goals, is technically competent,
and offers the best long term value for a 25-year lease.
FUNDING
ARSC and UAF have committed $1M per year to lease the maximum
amount of space, but as a minimum to have a data center that can
accommodate their needs. They have also committed $400,000 for
operating expenses above and beyond the basic lease. This additional
commitment was in response to proposer feedback that the project was not
viable without additional funding.
Facilities & Land Management Committee Agenda: Page 17 of 21
Agenda
Facilities & Land Management Committee
April 8, 2009
Valdez, Alaska
INITIAL FEEDBACK FROM PROPOSERS
Proprietary meetings were held with four Proposers on December 11 and
12, 2008 and January 29-30, 2009 to discuss all aspects of the project and
the RFP. A common theme from all Proposers was the $1M/yr lease
budget was insufficient for the required scope.
Addendums to the RFP were issued on January 20, February 5, and
February 20, March 11, and March 16, 2009. The addendums clarified the
amount of equipment ARSC will purchase, terms and conditions, and
Addendum No. 3 changed the lease conditions from full service to triple
net. This change is essentially an increase in funding as the operating
expenses of the facility are assumed by ARSC/UAF.
There is likely to be a range of possible responses to the RFP and
proposals will be ranked based on which team can provide the facility
closest to the original RFP requirements.
REVISED SCHEDULE
Although there is an immediate need for more space, ARSC has agreed
and planned future supercomputer purchases around the following
schedule:
RFP Preparation, Evaluation and
Lease Award Design
Design
Construction (possible site/foundations
in 2009)
Occupy Lease Space
October 2008 to June 2009
June 2009 to December 2009
August 2009-April 2011
April 2011
APPROPRIATE APPROVALS
The chosen submittal/project and subsequent contracts may require Board
of Regents’ approval and possibly Legislative approval. It is anticipated
that appropriate approvals will be sought at the June 2009 board meeting.
A special Board of Regents meeting may be needed for this project if
contract negotiations cannot be completed prior to the agenda submission
date for the June, 2009 meeting.
B.
Update for the Co-generation Project at the University of Alaska
Anchorage
PROJECT SUMMARY
Anchorage Municipal Light & Power, Providence Hospital and University
of Alaska Anchorage are preparing to develop a combined heat and power
project for the benefit of the three organizations. The project will contain
Facilities & Land Management Committee Agenda: Page 18 of 21
Agenda
Facilities & Land Management Committee
April 8, 2009
Valdez, Alaska
one or two gas turbine generators each with a heat recovery boiler and a
thermal distribution system that will connect Providence Hospital and
UAA buildings to the plant.
OVERVIEW
Combined heat and power production offers the possibility of improving
the fuel efficiency of an electric generating process by more than 100%
when compared to conventional electric plants and by more than 70%
when compared to combined-cycle electric generating plants.
The University of Alaska Anchorage and Providence Hospital are two
large institutional customers served by Anchorage Municipal Light and
Power. Anchorage Municipal Light and Power is a regulated utility. The
University and the Hospital fall within its exclusive service territory.
Together the two customers make up about 4% of the utility’s sales.
ML&P is currently updating its resource plan and will replace some of its
generating equipment. The University has a number of boilers that are
near the end of their useful life and Providence continues to grow to meet
the needs of the community and is faced with capital investment for
infrastructure to meet its growth. It is a favorable time to develop a single
project to meet the three organizations overarching goals.
Nearly all power and heat in the Anchorage area is produced by
combusting natural gas and it is in the public’s best interest to use this fuel
efficiently. All parties expect the cost of natural gas to remain high.
THE PROJECT
An opportunity exists to develop a project to meet the three organization’s
goals:
□ Use fuel more efficiently
□ Reduce emissions associated with making electricity and heating
buildings
□ Reduce operating costs
Currently, we anticipate the project will be:
□ Located on University land
□ Located adjacent to Providence Hospital
□ Use ML&P generating assets
□ Use ML&P natural gas
□ Rely upon Enstar for natural gas transportation
□ Include heat recovery boilers
□ Bundle with other facilities such as Providence Laundry, UAA
Parking structure
Facilities & Land Management Committee Agenda: Page 19 of 21
Agenda
Facilities & Land Management Committee
April 8, 2009
Valdez, Alaska
The proposed project will locate ML&P generating assets near the two
institutions, where heat, that is normally wasted when making electricity,
is recovered to meet the thermal energy needs of the University and the
Hospital. The Hospital has the largest constant heat load and is essential
to the project.
For the project to move forward the institutions will continue to rely upon
ML&P as an electric service provider and the institutions must realize
economic benefit by meeting their thermal energy requirements with lowcost, waste-heat.
Independent, preliminary studies have been completed by all three parties.
Each believes that a project can be developed that serves their best interest
and that the greatest benefit will be achieved by all three parties
cooperating to plan, finance and operate a single facility.
The project cost is estimated to be about $63 million and the schedule is
estimated to be 36 months.
The three parties have committed themselves to:
□ Organize a working group,
□ Select a lead organization that is responsible for directing various
consultants to perform in the best interest of the joint project and
□ Contribute one third of the cost ($100,000 each) verifying that the
project is technically, operationally and financially sound.
□ Submit a renewable energy grant application to the state this
December for partial funding of the project
If the project is validated, the three parties will continue to work together
to manage the construction project and oversee the ongoing operation of
the plant. Legal, permitting and financial services will also be required.
The bottom line for the partners (ML&P, Providence Hospital, UAA) in
this project is:
□ Providence and UAA and possibly other UMED district members
could reduce their heating costs by over half. For UAA that is
over $1M/year.
□ Reduced Carbon Footprint of both campuses by using waste heat
for space heating
□ Renewed infrastructure through replacement
□ A jointly used energy system adjacent to Providence’s Facilities
area
□ A training site for energy system operators and maintenance
personnel
□ A great project for the State’s Renewable Energy Grant.
Facilities & Land Management Committee Agenda: Page 20 of 21
Agenda
Facilities & Land Management Committee
April 8, 2009
Valdez, Alaska
SCHEDULE
Grant application submission
UA BOR Presentation
Complete Reconnaissance Phase
Define and Build the Business
Complete Feasibility Analysis
Conceptual Design
November 2008
December 2008
April 2009
June 2009
June 2009
September 2009
UPDATES
HGA refinement of project costs continues and is within early estimates
HGA collecting plume and turbine noise data from like plants
UAA is looking at alternative site(s) for Power Plant
UAA is exploring business model(s) and Regulatory Commission likely
opinion
UAA is looking at “in building” equipment and costs associated with
connection
Phase II energy grant projects to be sent to Legislature without AEA
recommendation
Phase II energy grant projects are unlikely to be acted upon this session
This is an information and discussion item; no action is required.
C.
Status Report on University Investments in Capital Facilities, Construction
in Progress, and Other Projects
Reference 14
Kit Duke, Chief Facilities Officer, and campus facilities 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.
D.
Update on IT Issues
Reference 15
CITO Smith will report on IT issues of importance for the university
including an update on the status of online security review and
remediation across the system.
VI.
Future Agenda Items
VII.
Adjourn
Facilities & Land Management Committee Agenda: Page 21 of 21