The University of North Carolina at Charlotte Board of Trustees
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1 The University of North Carolina at Charlotte Board of Trustees Facilities and Physical Properties Committee Meeting Bioinformatics, Room 301 Thursday, April 23, 10:30 a.m. Open Session Minutes Present Mary Ann Rouse, Chair David L. Hauser, Vice Chair (via phone) Robert F. Hull, Jr. Absent Theresa J. Drew Staff/Guests in Attendance Chris Bates, Assistant Vice Chancellor for Administration, Business Affairs Gary Caton, Director of Parking and Transportation Services David Broome, Vice Chancellor and General Counsel Beth Hardin, Vice Chancellor for Business Affairs Kathryn Horne, University Space Management and Utilization Director Phil Jones, Associate Vice Chancellor, Facilities Management Richard LaLiberté, Real Estate Manager Nelda Tatum, Executive Assistant, Business Affairs Keith Wassum, Associate Vice Chancellor for Business Services Call to Order. Ms. Rouse called the meeting to order and reminded committee members of their duty to avoid conflicts of interest and appearances of conflicts of interest under the State Government Ethics Act, in accordance with Chapter 138A of the North Carolina General Statutes, and advised the committee members to notify her immediately if anyone should become aware of a conflict of interest or the appearance of a conflict of interest during the meeting. No conflicts of interest were reported. Approval of the Minutes. Ms. Rouse requested action on the February 13, 2015, minutes of the Facilities and Physical Properties Committee. Action. On a motion by Mr. Hull, seconded by Mr. Hauser, the Committee unanimously approved the February 13, 2015, Facilities and Physical Properties Committee minutes. Facilities and Physical Properties Committee Meeting Minutes Page 1 of 5
2 Center City Building Parking Arrangements. Beth Hardin stated that the.87-acre parcel of land on which the Center City building was built was purchased through the UNC Charlotte Foundation and that in 2005 a handshake agreement with Daniel Levine Properties provided for parking access for Center City. Ms. Hardin stated that she provides guidance but does not negotiate directly for the Center City building project because of a potential conflict of interest and that real estate advisor Dennis Rash and Senior Associate General Counsel Jeff Jensen serve as the University s negotiators. Mr. Broome noted that in 2005 the University created a set of Center City building project agreements between the city, county, and the developer, and that the University is now seeking approval of a set of boundary conditions under which UNC Charlotte will negotiate with the University of North Carolina General Administration. Mr. Broome stated that $4.2 million has been put into an escrow account for Center City parking. Mr. Broome noted that one change to the original plan has been made because underground parking has been determined to be unfeasible. Mr. Broome also noted that even the earliest negotiations in this public/private partnership focused primarily on the University s parking needs. Mr. Broome stated that the extended negotiations included a specific number of spaces (305) and a specific, not-to-exceed per-space price that the University would pay to Levine Properties ($14,300). Mr. Broome also stated that the cost per space was derived from the University s construction hard-cost history. Mr. Broome provided several documents, including a term sheet stating that the University will have access to parking for 99 years. Mr. Broome stated that if the University decides not to continue using the spaces, the University will be refunded a portion of the funds, according to the terms of an agreed-upon schedule. Mr. Broome noted that parking area upkeep and maintenance will be negotiated in a future operations agreement. Ms. Hardin stated that land preparation for the parking project is already underway. Mr. Broome stated that Legal Affairs will ensure that the University maintains its leverage as the project moves forward. Ms. Rouse asked for a motion to approve the agreement and to authorize future negotiations. Action. On a motion by Mr. Hull, seconded by Mr. Hauser, the Committee recommended that the Board: 1. Authorize University staff to seek Council of State approval to enter into an appropriate agreement to perpetually utilize no less than 305 parking spaces in the future parking improvements associated with the development surrounding the Center City Building at a cost of no more than $4,270,000. Reserve funds from the University s Parking and Transportation Services (PaTS) revenues will be dispersed in accordance with the negotiated agreement. 2. Authorize the University staff to negotiate and seek Council of State approval to enter into a future agreement to utilize additional parking spaces, at below-market rates, to satisfy the parking needs of the University (above the 305 spaces initially licensed) in the developer-built parking improvements. Request for Authorization for Capital Project Increase in Authorization Outdoor Event Shelter/Alumni Pavilion. Mr. Jones stated that in the course of infrastructure work on the Alumni Facilities and Physical Properties Committee Meeting Minutes Page 2 of 5
3 Pavilion some soils were determined to be unsuitable and had to be removed and a sewer pipe running under the site had to be replaced, which resulted in additional costs. Mr. Jones noted that aesthetic and other improvements, including the addition of brick veneer on the retaining walls and columns, ceiling fans, and an improved service area for better event support, are also part of the requested increase. Action. On a motion by Mr. Hauser, seconded by Mr. Hull, the Committee recommended that the Board approve an increase in the authorization for the Outdoor Event Shelter project from $1,200,000 to $1,600,000. Request for Ratification of Capital Project Designer Selection Student Counseling Center. Ms. Hardin requested ratification of the designer selection for the Student Counseling Center, a $4 million project. Ms. Hardin noted that the Counseling Center function will be moved from the Library to the new building. Ms. Hardin stated that EYP Architects was chosen for this project and the alternates are LS3P Associates Ltd. and KSQ. Ms. Hardin noted that EYP is a national firm that acquired BJAC and that institutional funds will be used for this project. Ms. Rouse requested a motion to ratify the Capital Project Designer selection for the Student Counseling Center. Action. On a motion by Mr. Hull, seconded by Mr. Hauser, the Committee ratified the selected designer, EYP Architects, and first and second alternates LS3P Associates Ltd. and KSQ for the Student Counseling Center project. Request for Approval of Open-End Professional Service Agreements. Ms. Hardin stated that each year University staff identify firms that can be used for smaller projects up to $500,000. Ms. Hardin stated that all firms awarded Open-End Professional Service Agreements have the professional credentials to provide these services. Ms. Hardin also explained that all firms are on the current list and were also on the previous year s list did not receive any work in Mr. Jones stated that the University tries to divide available work among firms on the list. Ms. Rouse requested a motion to approve the Open-End Professional Service Agreements list for fiscal year Action. On a motion by Mr. Hull, seconded by Mr. Hauser, the Committee approved the Open-End Professional Service Agreements list for FY State Construction Office Award. Mr. Jones stated that the State Construction Office recognizes the Best Managed Projects at its annual conference and that this year UNC Charlotte received honors for the PORTAL and Jerry Richardson Football Stadium projects. Mr. Jones noted that UNC Charlotte was the only university to have two projects receive the award in Approval of Parking System Rate/Regulations. Ms. Hardin stated that North Carolina law requires the University to seek the Board of Trustees approval for any changes in the University s parking rates and regulations. Ms. Hardin stated that no parking rate changes will be made for , and that this is the third year in a row in which rates have not increased. Ms. Hardin stated that most revisions to the ordinance relate to changes in technology and that the language was edited to improve student understanding. Facilities and Physical Properties Committee Meeting Minutes Page 3 of 5
4 Ms. Rouse noted that parking is unique for every campus. Mr. Wassum stated that approaches to parking are very diverse across the University system and that UNC Charlotte has more parking structures than most campuses because of its high percentage of commuters. Mr. Caton stated that the UNC Charlotte website (pats.uncc.edu/parking) offers a guide entitled Everything About Parking to assist the campus community and visitors with campus parking. Ms. Rouse requested a motion to approve the proposed changes to the University s ordinances governing parking, traffic, and the registration of motor vehicles. Action. On a motion by Mr. Hull, seconded by Mr. Hauser, the Committee approved the proposed changes to the University s ordinances governing parking, traffic, and the registration of motor vehicles. Parking and Transportation Services. Mr. Wassum stated that Mr. Caton will retire in May Mr. Wassum noted that during Mr. Caton s administration the University has added four parking decks with a net increase of 4,000 spaces and that Mr. Caton and his staff also introduced automated parking. Real Estate Update. Ms. Hardin stated that the Light Rail project will have a huge impact on development between the Center City Building and the main campus and that the University has a strong interest in that development. Mr. Jones made a presentation on why and how the University seeks to influence development in proximity to the campus. Mr. Jones discussed the University s desire to acquire strategic properties and the reasons for using the University s affiliated entities (the UNC Charlotte Foundation, the Board of Trustees of the Endowment Fund, and the UNC Charlotte Facilities Development Corporation) in making these acquisitions. Mr. Jones briefed the Committee on three recent acquisitions: eight single-family residential properties in the Craven Croft subdivision; two residential properties on John Kirk Road; and segments of the medical office complex adjacent to the Foundation Building. Mr. Jones also briefed the Committee on plans to sell the Ben Craig Center, which is owned by the Endowment and was vacated when Ventureprise moved to PORTAL. Mr. Jones stated that a charter school has signed a contract to purchase the Ben Craig Center but closing has been delayed because of financing issues. Ms. Hardin stated that the University is making progress in the real estate arena but needs to find ways to better influence development in University City as a whole. Capital Improvement Projects Update. Ms. Hardin and Mr. Jones updated the Committee on the status of capital improvement projects on campus. Science Building. Ms. Hardin stated that the statewide bond package in North Carolina Governor Pat McCrory s proposed budget includes $60 million for a new science building at UNC Charlotte. Ms. Hardin also stated that the possibility of increasing the science building appropriation to $90 million continues to be discussed in the legislature. Ms. Hardin noted that the total UNC system request in the Board of Governors proposed bond package was $126 million. Ms. Hardin also noted that renovating the Burson building would cost $30 million. Renovation and Major Improvements. Ms. Hardin stated that, in addition to the Burson building, several older academic buildings in the campus core need major renovations and the University is Facilities and Physical Properties Committee Meeting Minutes Page 4 of 5
5 reviewing those needs. Ms. Hardin stated that Business Affairs staff members have considered an array of projects that will cost between $68 million and $80 million. Ms. Hardin noted that the State has provided no capital appropriations in the last seven or eight years. Ms. Hardin stated that the only funds available for capital improvements are from carryforward funds and that those funds are limited to 2.5 percent of the University s annual operating appropriations. South Village Dining. Mr. Wassum stated that the South Village Dining facility opened in January 2015 and was well received. Mr. Jones stated that the Phase XIII Residence Hall and Holshouser Hall Renovation projects in South Village are scheduled to open in fall Mr. Jones noted that Martin Village (Phase XII) opened in fall Mr. Jones reported that the groundbreaking for Levine Hall (Phase XIV) will take place in May 2015 and that construction on that project should be completed in fourteen months. Health and Wellness Center. Ms. Hardin stated that the Chancellor would present the Health and Wellness Center project for approval during the full Board of Trustees meeting. Ms. Hardin stated that the Health and Wellness Center will be located near the Student Union and that the University is planning for the new science building to be built adjacent to the Health and Wellness Center. Ms. Hardin noted that if the legislature approves funding for the science building, additional consideration may need to be given to the building site, depending on the planned size of the facility. Adjourn. There being no further business before the Committee, Ms. Rouse adjourned the meeting. Submitted: Elizabeth A. Hardin Date Vice Chancellor for Business Affairs Approved: Mary Ann Rouse Date Chair Facilities and Physical Properties Committee Facilities and Physical Properties Committee Meeting Minutes Page 5 of 5
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