F–6 STANDING COMMITTEES Finance and Asset Management Committee

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Kincaid Hall Renovation: Stage 1 Approval RECOMMENDED ACTION The administration and the Finance and Asset Management Committee recommend that the Board of Regents approve:

1) Delegate award of Design-Build Contract; and 2) Preconstruction budget of $3,000,000.

BACKGROUND Substantial renovation of Kincaid Hall is necessary to replace aged and outdated building infrastructure, reduce deferred maintenance backlog, and modernize space utilization. Building-wide replacement of the ventilation system is needed to address 47-year-old systems operating at 68% of their original capacity. A rare opportunity with the soon-to-be completed Life Sciences Building enables Kincaid Hall to be vacated, allowing for a more efficient and cost effective renovation. A feasibility study was completed in 2017 aligning a $30M budget with a project scope that will modernize building infrastructure, meet programmatic and future growth for the recently displaced Department of Psychology, and provide dry lab and office space for the Department of Biology. The $30M budget will require trade-offs, including the possibility of shelled out floors for future renovations. Major project objectives:

• Extend the useful life of a central campus building • Consolidate and provide a permanent location for Psychology Clinics

dislocated by the new Population Health Facility and other capital projects, and create office and dry lab space for Biology

• Reduce the deferred maintenance backlog while improve building energy efficiency and creating long term operational cost savings

• Utilize Kincaid Hall as a resource for future growth and programmatic needs for the departments of Psychology, Biology, Anthropology, and possibly Chemistry

FUTURE ACTIONS Stage 2 Approval is anticipated in January 2019.

STANDING COMMITTEES Finance and Asset Management Committee Kincaid Hall Renovation: Stage 1 Approval (continued p. 2)

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Attachments 1. Kincaid Hall Renovation 2. Kincaid Hall Renovation: Summary

Kincaid Hall Renovation

Financial The $30M total project cost will be funded with $3M of University Central Funds and $27M of Internal Lending Program (ILP) funding. Central resources will cover debt service using the funds previously servicing debt that has been retired. Central administration will also cover funding for pre-construction activities. A detailed cash flow, financial due diligence, and financing plan will develop as part of the Stage 2 approval request.

Project Schedule The project will be delivered as a Design-Build project with the team selection process completed by the end of June 2018. The design and permitting process will start in early July 2018 and extended through May 2019. Construction will begin in January 2019 with an anticipated substantial completion in June 2020.

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Kincaid Hall Renovation

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Approve Full Project Budget and Funding Plan

Proposed Budget Proposed FundingConsultant Services $ 2,100,000 7% ILP Debt Funds $ 27,000,000 90%Construction Cost $ 24,000,000 80% Donor Funds $ 0%Equipment and Furniture $ 1,200,000 4% UW Central Funds $ 3,000,000 10%Other Costs $ 1,400,000 5% State Funds $ 0%Project Management $ 1,300,000 4% Departmental Funds $ 0%Escalation $ Other $ 0 0%Total Project Cost $ 30,000,000 100% Total Funds $ 30,000,000 100%

Project Cost Benchmarks

UW Denny Hall Renovation: $367/GSF Skanska USA 2017 Feasiblity Study Cost Estimate $360/GSFUW HSC J-Wing Renovation $349/GSF*Denny/J Wing benchmark aligned with Kincaid project scope

Metrics & IndicatorsCurrent Targets Current Targets

Net Assignable SF 70,000 62,500 * Construction Cost/GSF N/A $284 Gross SF 84,400 84,400 Project Cost / GSF N/A $355 Efficency (NASF/GSF) 83% 74% Operating Costs/GSF** $6.99 $6.99

*Target SF does not include1 floor of shell space

Schedule

Attachment 1

**utility cost will be decreased within operating budget

DescriptionUpgrade building infrastructure along with interior improvements to meet programmatic and growth requirements for the recently displaced Department of Psychology and provide dry lab and office space for the Department of Biology within a $30M project budget as defined by the feasiblity study completed in 2017. Infrastructure improvements include a new roof, new building-wide ventilation system, plumbing, and electrical upgrades. Interior upgrades will modernize the building to meet programmatic needs of Psychology (floors 1-3) and Biology (floor 4), with the 5th floor left as shell space. Seismic and energy code upgrades will be addressed on a case by case basis as supported by the project budget.

Financials

Benchmarks are project costs esclated to 2019

Regent Actions

Delegated Authority to Award Design Build Contract

Objectives· The Kincaid renovation project will extend the useful life of a central campus building· Consolidate and provide a permanent location for Psychology Clinics dislocated by the new Population Health Facility and other capital projects, and create office and dry lab space for Biology

· Reduce campus deferred maintenance backlog and improve building energy-efficiency, creating long term operational cost savings· Utilize Kincaid Hall as a resource for future growth and programmatic needs for the departments of Psychology, Biology, Anthropology, and possibly Chemistry

Approve Pre-construction Budget of $3,000,000 Funded by UW Central Funds

Kincaid Hall Renovation: Summary

Stage 1 Actions: April 2018

Stage 2 Actions: January 2019

2018

Jan March June Sept

2019

Jan March June Sept

2020

Jan March June Sept

Planning

Funding/Approval/Arch/Contractor

Selection

Move In

2017

June Sept

Design/PermittingConstruction

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