UNC Greensboro



MINUTES

The University of North Carolina at Greensboro

Board of Trustees

Business Affairs Committee

August 25, 2009

MEMBERS PRESENT: Susan Safran, Randall Kaplan, Richard Moore, William Pratt,

Steve Hassenfelt

OTHER BOARD MEMBERS/GUESTS: Kate Barrett, Linda Brady, Mike Byers, Terri Cartner, Carol Disque, Howard Doyle, Carolyn Ferree, Steve Gilliam, Linda Haitt, Jill Hillyer, Donna Honeycutt, Mary Hummel, Curtis Irwin, Ed Keller, Bruce Michaels, Melissa Minyard, Sharlene O’Neil, Fred Patrick, Dave Perrin, Jorge Quintal, Cindy Reed, Steve Rhew, Jessica Russo, Kim Sawyer, Steve Starnes, Reade Taylor.

PROCEEDINGS: Ms. Safran called the meeting to order at 8:03 a.m. The minutes from the April 2, 2009 meeting were approved as distributed. The decision was made to cover the information items of the agenda first and the Student Affairs Committee would join us at 8:30 for the action items.

INFORMATION ITEMS

University Investment Fund Update (BAC-5)

Mr. Taylor reported that the foundations of UNCG have combined their assets into The UNCG Investment Fund for the purposes of investing the foundations' assets. The Board hires Cambridge Associates to provide advice as well as perform due diligence on new managers. The majority of the funds in the Investment Fund are owned by the UNCG Endowment with 55%, the UNCG Excellence Foundation is second with 39%, the Human Environmental Sciences has 4%, and the Alumni Association and Campus Ministries each have 1%. The strategic distribution of funds is listed on the attached handout. If the past year we have sustained a 20.7% loss. Mr. Taylor stated our objective is to achieve a 5% return above inflation and an annual spending rate of 4.25%. (He corrected this statement via email sent to committee members on 8/25 to clarify the investment objective is to earn a 5% real return after inflation.) We had achieved this goal prior to the downturn in the economy.

Annual Report on Property Purchased and/or Leased Since September 18, 2008 (BAC-6)

Mr. Byers reported that in conjunction with our master plan, we purchased an additional property on McIver Street, giving us roughly half of the property on the east side of the street for UNCG development.

We also completed the purchase of the Spring Garden Apartments, a residence hall developed by the Capital Facilities Foundation, Inc. UNCG issued 25-year debt for this structure, which is the most popular residence hall on campus, with a lengthy waiting list for occupancy. This was one of the first such projects in North Carolina to be purchased by a state university and a great deal of trail blazing was accomplished in the transfer of the property to the state.

There were no new leases entered into, but three current leases were extended during this period. The Center for New North Carolinians, the Center for Youth, Family and Community Partnerships and the University Police building leases were renewed.

Construction Manager at Risk Selection for the Joint School for Nanoscience and Nanoengineering (JSNN) (BAC-7)

Mr. Quintal reported that this project is to house the Joint School for Nanoscience and Nanoengineering (JSNN) at the South Campus of the Joint Millennial Campus. The budget for this project is $46,274,300.

Twenty five letters of interest were received, of which two were local. The list was narrowed to six firms for review. The selection group was comprised of Mr. Andy Perkins and Mr. Bill Barlow from NCA&T, Mr. Fred Patrick, Mr. Howard Doyle and Mr. David Reeves from UNCG, Dr. James Ryan from JSNN and Mr. John Merrill and Mr. Chuck Dixon from Gateway University Research Park. Samet/Barton-Mallow of Greensboro was recommended due to Experience with construction other nanotechnology buildings, strong proposed team for project management and field personnel and the combination of this team provides national and local CM@risk expertise to Gateway.

Report on Architects/Designers Appointed by Chancellor (BAC-8)

Mr. Quintal advised the Board that annually the Chancellor appoints architects and engineers for projects whose authorized funding is $500,000 or less. Beginning this year we will put forward the names of firms that we may call upon for the Board's information. The list includes thirty-one firms in Greensboro, and fifteen businesses designed historically underutilized businesses (HUB).

Mr. Quintal also reported that Sasaki Associates of Watertown, MA was selected to provide an addendum to the 2007 Campus Master Plan. This appointment was due to the firm's work in completing the 2007 Campus Master Plan, their expertise with campus planning and university housing, and Sasaki's ability to build consensus in a large group forum. This was directed by the Board to integrate the University's Housing Strategic Plan with the University's Master Plan.

The firm of Pieper O'Brien Herr Architects of Alpharetta, GA was recommended to the Chancellor for the Quad housing massing students and concept floor plans due to their expertise with campus housing projects, expertise in providing quick three-dimensional modeling and their ability to provide the study material within the time-frame necessary.

The firm of Kling Stubbins of Raleigh, NC was recommended for the campus utility metering project. This project will upgrade existing electric meters throughout the campus to modern digital meters and add meters to a number of locations currently not metered. This upgrade will allow Facilities to accurately measure electrical consumption at the building level. Kling Stubbins was recommended due to their previous projects at other institutions, their ability to complete the work in UNCG's time frame and their experience in monitoring energy demand use on other campuses.

The Student Affairs Committee joined the Business Affairs Committee for the action items to be discussed at 8:30 a.m.

ACTION ITEMS

Mr. Kaplan, Chair of the Student Affairs Committee announced that beginning of the joint meeting and introduced Dr. Brady for remarks.

Dr. Brady addressed the committees to outline the changes that she endorses for the future of residence on campus. She reminded the committees that when the Board met on August 17, it approved an ambitious strategic housing plan to designed to recapture the residential character of UNCG, as well as accommodate enrollment growth that we expect between now and 2020. That plan calls for significant expansion of our housing program which will call for both construction on the core campus as well as development of a new neighborhood west or south of our core campus. Today as well as when the Board meets on September 10, we will require authorization to implement Phase I of this plan. Phase I involves addressing the condition of the Quad residence halls, constructing a new residence hall elsewhere on the core campus, and exploring options for a new neighborhood that would include both housing and recreation near to the current campus.

She then addressed the Quad in particular. This issue has captured the passions of many people. Last spring a number of meetings and forms were held with students, alumni and other members of the campus community to seek views from various constituencies regarding the future of the Quad. These meetings were capped by a public forum hosted by this Board in April. She has listened closely to the diverse views of all of these groups, to the express memories of our alumni who lived on the Quad - which are also diverse in themselves - to those in the community and campus who are committed to sustainability, to the expansion of living/learning communities, and to the needs of current and future students, who demand higher quality space and amenities. She has taken all of these views into account in considering her recommendation to this Board.

Also during the summer, UNCG engaged a consultant to upgrade the strategic housing plan into our campus master plan. As a result of that effort additional sites have been identified on the core campus to support the proposed housing expansion. It became clear that we cannot accomplish our ambitious goals for housing on the core campus alone, and we would need to develop a new neighborhood close to the existing campus. Today we bring a recommendation to you to renovate the Quad residence halls into suite style rooms with adjoining baths. The project will include air conditioning, addressable fire alarms and fire sprinklers and ADA accommodations, as well as additional space to support learning communities.

She makes this recommendation for several reasons, first in the context of the significant expansion of our housing program recommended in the strategic housing plan, the number of additional beds that could be achieved by reconstruction of the Quad with larger buildings, would not make a significant difference in our housing capacity. Second, a review of the campus master plan identified sufficient sites to support the proposed housing expansion goals without having to demolish the existing Quad and replacing it with larger buildings. Third, the proposed renovation will meet two important goals - to increase the number of suite style beds on the core campus and to create space to support our learning communities in the Quad. A review of the master plan identifies the Quad as an historic and space shaping resource on the campus that should be protected and restored. UNCG has demonstrated its commitment to historically sensitive innovation illustrated by the work on Aycock Auditorium, the Alumni House, Forney and other projects. We will approach renovation of the Quad residence halls in that same spirit.

Phase I also requires the construction of a new residence hall on the core campus that will also include suite or apartment style layout and include learning and program space. Finally, Phase I requires us to explore options for the development of a new housing and recreational neighborhood west or south of the campus due to the dramatic growth we expect.

These movements forward will honor the past, take advantage of the moment to expand the footprint of UNCG and ensures building for the future.

Mr. Kaplan thanked Chancellor Brady and turned the meeting over to Mr. Taylor.

Site Selection for Future Residence Halls (BAC-1)

Mr. Taylor announced that the Strategic Housing Plan endorsed by the Board of Trustees at the called meeting of August 17 requires the construction of additional residence halls on campus. As a result of this mandate, additional sites have been identified on campus for residence halls. These sites will be incorporated into a formal Master Plan update presented to the Board at a future meeting.

It was recommended that the Board of Trustees approve the sites indicated on the map distributed for future residence halls on campus. Mr. Moore moved and Ms. Ferree seconded that the committees forward this action item to the full Board for approval at the September 10, 2009 meeting. The site selections were approved by acclamation of both committees.

Authorization for Implementation of Strategic Housing Plan Phase I (BAC-2)

Building on the action requested in item BAC-1, the execution of Phase I of the Strategic Housing Plan consists of three projects:

1) Renovation of the Quad residence halls - The University will renovate the existing buildings in the Quad including interior demolition and comprehensive renovation of all seven buildings, converting the double rooms into suites with adjacent bathrooms and construction of new learning spaces. Also included will be the installation of new fire sprinkler systems, fire alarms, and air conditioning. The preliminary cost of this project is $52.5 million, funded by a combination of cash and long term debt.

2) Construction of Tower Village II - A new residence hall with approximately 400 beds will be constructed on a potion of the site 1-2 approved in BAC-1. The residence hall will include a suite style layout with learning and program spaces. The preliminary cost of this project is $30 million and is planned to be construction through the Capital Facilities Foundation, Inc. (see BAC-3)

3) Exploration of options near campus for a new housing and recreational neighborhood - The University will investigate the development of a new housing and recreational neighborhood west or south of the core campus. The possible locations of the new neighborhood will be evaluated in coming months in consultation with the master plan team. The preliminary cost of this project is pending a program definition and site selection.

It was recommended that the Board of Trustees authorize and direct the administration to proceed with the renovation of the Quad, the construction of Tower Village II and the exploration of new neighborhood options. The Board also authorizes the administration to seek approvals from the President/Board of Governors and work with State Property Office as required under state law and Board of Governors regulations for this work.

Mr. Moore moved and Ms. Ferree seconded that the committees forward this action item to the full Board for approval at the September 10, 2009 meeting. The authorizations were approved by acclamation of both committees.

Ground Lease and Lease Back for Tower Village II (BAC-3)

Building on the previous two action items, the University requested approval to 1) enter into a 30-year leave/build arrangement with the Capital Facilities Foundation, Inc. on lands owned by the State of North Carolina (UNCG campus) on which to construct a 400-bed student residential facility and 2) enter into a 30-year lease-back arrangement with the Foundation in which the University will have the option to lease back the facility or purchase back the facility using its legislative authority to issue bonds to finance the purchase.

Mr. Hassenfelt moved and Mr. Moore seconded that the committees forward this action item to the full Board for approval at the September 10, 2009 meeting. The approval for the leases were approved by acclamation of both committees.

At this time Ms. Safran and Mr. Kaplan asked that we move into closed session for discussion of BAC-4. Ms. Safran moved to take the Board into closed session, Ms. Russo seconded the motion.

The meeting was adjourned at 9:47 a.m.

Respectfully submitted

_______________________

Donna Honeycutt

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