FY 2017 Capital Development Plan Arizona State University

EXECUTIVE SUMMARY

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 1 of 47

Item Name: FY 2017 Capital Development Plan (ASU) Committee Recommendation to Full Board Full Board Approval Issue:

Arizona State University asks committee review and recommendation to the full board for approval of its FY 2017 Capital Development Plan, which includes six new projects and two previously-approved projects. The CDP totals $177.3 million.

Enterprise or University Strategic Plan (Check the element(s) of the strategic plan that this item supports or advances) Empower Student Success and Learning Advance Educational Attainment within Arizona Create New Knowledge Impact Arizona Compliance Real property purchase/sale/lease Other: Statutory/Policy Requirements 

Pursuant to Arizona Board of Regents Policy Chapter 7-107 Capital Committee review and Board approval of the annual Capital Development Plan (CDP).

Project Justification/Description/Scope 

The Arizona State University (ASU) FY 2017 CDP totals $177.3 million and proposes six new major capital projects for approval, along with two previouslyapproved projects and Sun Devil Stadium Renovation Phase 3:

-

Building and Infrastructure Enhancements and Modifications Classroom and Academic Renovations Research Laboratory/Faculty Startup Central Plant Chilled Water System Optimization and Deferred Maintenance Armstrong Hall Renovation Ross-Blakley Law Library Renovation Gammage Auditorium Rehabilitation (previously approved) Sun Devil Stadium Renovation Phase 3 (previously approval)

Contact: Morgan R. Olsen, Executive Vice President, Treasurer and CFO • (480) 727-9920 • [email protected]

EXECUTIVE SUMMARY

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 2 of 47



For this CDP, ASU has set as its highest priorities renovation of Armstrong Hall and the Ross-Blakley Law Library at the Tempe campus, as well as infrastructure upgrades and classroom, academic and research laboratory renovations at multiple campuses. These projects respond to the need to provide high-quality space for students, faculty, researchers and staff to advance ASU’s goals, including improving retention and graduation performance, curricular reform, and improved student outcomes.



Thoughtful and productive investment in the University's infrastructure is vital to the success of current and future ASU students and supports the key elements of ASU’s Strategic Enterprise Framework, including:    

Achieving a fifty-seven percent increase in degree production Establishing national standing in academic quality and the impact of colleges and schools in every field Enhancing local impact and social embeddedness Expanding research performance to $815 million in annual research expenditures by 2025

Fiscal Impact and Financing Plan: 

The ASU FY 2017 CDP, if fully implemented, reflects a total cost of $177.3 million, including the previously-approved Sun Devil Stadium Renovation Phase 3, as amended, and Gammage Auditorium Rehabilitation projects.



Of the total amount, $137.5 million will be financed using debt.



Debt Ratio Impact: The projected incremental debt ratio impact on system revenue bond debt service from the proposed CDP projects is 0.39 percent.



The tables in Exhibits 1 and 2 provide details on project financing, funding sources and debt ratio impact.

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 3 of 47

EXECUTIVE SUMMARY 

The following table reflects charitable gift funding anticipated in each project plan of finance: Occupancy Date

Project Cost

Gift Target

Current Gifts (Cash/ Pledges)

PA 12/2012

7/2014

$54.5m

$7.5m

$7.5m

PA 6/5/2014

7/2016

$129.0m

$3.0m

$10.0m

Sun Devil Stadium Renovation

PA Ph1 11/2014 Ph2 9/2015 Ph3 6/2016

8/2017

$268.7

$56.0m

$56.0m

Gammage Auditorium Rehabilitation

CDP 11/2015

TBD

$9.1m

$5.6m

$5.3m

Project Name College Avenue Commons AZ Center for Law and Society

Approval Date

Requested Action Arizona State University asks the committee to recommend and forward to the full board approval of its FY 2017 Capital Development Plan, as described and presented in this executive summary.

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 4 of 47

EXECUTIVE SUMMARY

Exhibit 1 Project

Board Approval  Status

Gross Square  Footage

CIP Sept 2015

 N/A 

$15,000,000 

CIP Sept 2015

                30,750 

$10,000,000 

CIP Sept 2015

                30,000 

$15,000,000 

 N/A 

$10,380,000 

Project Cost

Amount Financed

Funding Method

Annual Debt Service

Debt  Ratio

New Academic/Support Projects ASU‐ Building and Infrastructure  Enhancements and Modifications ASU‐ Classroom and Academic  Renovations ASU‐Research Laboratory/Faculty  Startup ASUT‐Central Plant Chilled Water System  Optimization and Deferred Maintenance

System Revenue  Bonds System Revenue  $10,000,000  Bonds System Revenue  $15,000,000  Bonds $15,000,000 

$802,400  0.03% $1,203,600  0.05%

Local Funds System Revenue  Bonds System Revenue  $6,800,000  Bonds

ASUT‐Armstrong Hall Renovation

CIP Sept 2015

                98,829 

$15,000,000 

ASUT‐Ross‐Blakley Law Library  Renovation

CIP Sept 2015

                67,752 

$6,800,000 

              227,331 

$72,180,000 

$61,800,000 

$96,000,000 

$75,700,000

New Projects Total

$1,203,600  0.05%

$15,000,000 

$1,203,600  0.05% $545,600  0.02% $4,958,800  0.20%

Previously Approved Auxilary Projects ASUT‐Sun Devil Stadium Renovation‐ Phase 3

ASUT‐ Gammage Auditorium  Rehabilitation Previously Approved Projects Total Total

Revised CDP Nov  850,000 2015 Revised CDP Nov                  10,000  2015

$9,125,000 

860,000

$105,125,000

$75,700,000

          1,087,331

$177,305,000

$137,500,000

System Revenue  Bonds/Gifts Gifts/Local  Funds/Tuition

$5,643,400

0.19%

 $                 5,643,400  0.19% $               10,602,200

0.39%

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 5 of 47

EXECUTIVE SUMMARY

EXHIBIT 2 CAPITAL DEVELOPMENT PLAN ‐ ANNUAL DEBT SERVICE BY FUNDING SOURCE Project New Academic/Support Project ASU‐ Building and Infrastructure  Enhancements and Modifications

Amount Financed

301

TUI

AUX

ICR

OLF

SLP

FGT

DFG

OTH

TOTAL ANNUAL DEBT  SERVICE

$15,000,000

$1,203,600

$1,203,600

ASU‐ Classroom and Academic Renovations

$10,000,000

$802,400

$802,400

ASU‐Research Laboratory/Faculty Startup

$15,000,000

$1,203,600

$1,203,600

ASUT‐Armstrong Hall Renovation

$15,000,000

$1,203,600

$1,203,600

$6,800,000

$545,600

$545,600

$61,800,000 

$4,958,800 

$4,958,800 

ASUT‐Ross‐Blakley Law Library Renovation New Projects Total Previously Approved Auxiliary Projects ASUT‐Sun Devil Stadium Renovation Phase 3

$75,700,000

Previously Approved Auxiliary Projects Total

$75,700,000 

Total

$137,500,000 

$5,643,400

$4,958,800 

$5,643,400

$5,643,400 

$5,643,400 

$5,643,400 

$10,602,200 

CAPITAL DEVELOPMENT PLAN ‐ OPERATION AND MAINTENANCE BY FUNDING SOURCE Project New Academic/Support Projects ASU‐ Building and Infrastructure  Enhancements and Modifications

TOTAL ANNUAL O&M

$                         ‐

ASU‐Research Laboratory/Faculty Startup

$                         ‐

ASUT‐Central Plant Chilled Water System  Optimization and Deferred Maintenance

$                  50,000

ASUT‐Armstrong Hall Renovation

$                         ‐

New Academic/Support Projects Total

TUI

AUX

ICR

OLF

GFA

FGT

$                         ‐

ASU‐ Classroom and Academic Renovations

ASUT‐Ross‐Blakley Law Library Renovation

301

DFG

OTH TOTAL ANNUAL 0&M

$                       ‐

$             50,000

$                50,000

$                         ‐  $                  50,000   $       ‐   $                        ‐   $                        ‐ 

$0   $             50,000   $          ‐   $          ‐   $          ‐   $        ‐   $                50,000 

Previously Approved Auxiliary Projects ASUT‐Sun Devil Stadium Renovation Phase 3

$             1,600,000

ASUT ‐ Gammage Auditorium Rehabilitation

$                             ‐

Previously Approved Auxiliary Projects Total Total Debt Service Funding Source Codes: 

$        1,600,000

$           1,600,000 $                           ‐

 $            1,600,000   $       ‐   $                        ‐   $       1,600,000   $                             ‐   $                        ‐   $          ‐   $          ‐   $          ‐   $        ‐  $          1,600,000   $            1,650,000 

 $       1,600,000   $                             ‐   $             50,000 

(301) 301 Fund/Other (ICR) Indirect Cost Recovery (TUI) Tuition (OLF) Other Local Funds (AUX) Auxiliary (SLP) State Lottery Allocation Proceeds

(GFA) General Fund Appropriation (FGT) Federal Grant (DFG) Debt Financed by Gifts (OTH) Other

$          1,650,000 

EXECUT TIVE SUMM MARY

Bussiness and Finance Co ommittee M Meeting June 8 8, 2016 Item #3A Page 6 of 47

EXECUTIVE SUMMARY

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 7 of 47

Arizona Board of Regents Arizona State University Capital Development Plan Project Justification Report Building and Infrastructure Enhancements and Modifications Previous Board Action: 

FY 2018-2019 Capital Improvement Plan

September 2015

Statutory/Policy Requirements 

ABOR Policy 7-109 requires approval of renovation or infrastructure projects with a total project cost over $5 million before contracts can be executed and construction can begin.

Project Justification/Description/Scope 

This project is planned to upgrade, install and replace building systems and infrastructure such as fire sprinklers and alarms; HVAC and electrical systems (including reliability and redundancy upgrades); exhaust, chilled water and steam systems; exterior brick re-pointing; roof replacement/coating; and re-caulking windows and building joints. Abatement of hazardous materials will be performed as needed. Campus infrastructure enhancements may include site improvements for malls, lighting, street repair and realignment, parking, site drainage and retention. In addition to the above items, this project will start the process to replace the infrastructure between the central plant and campus buildings, distribution of chilled water supply and return, steam and condensate return, domestic water, and sewer systems as needed to bring campus distribution up to current standards.



Many components of the ASU built environment are not capable of supporting additional functions required by the University to carry out its mission of research and academic excellence. Building envelope components either must be replaced or brought up to a condition that ensures protection from outside elements.



These projects not only will enhance the quality of campus infrastructure and systems, but also will keep the University in compliance with code requirements for safety, and address ABOR directives to reduce deferred maintenance. Projects essential for life safety/code compliance and University strategic initiatives have been given top priority.

EXECUTIVE SUMMARY

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 8 of 47

Project Delivery Method and Process: 

Depending on the nature of the work, components of this project may be delivered through the Design Build (DB), CMAR or Job Order Contracting (JOC) methods.



ASU has not yet selected a DB, CMAR, JOC contractor or design professional firm for any components of this project bundle. Contractors and design professionals will be selected according to ABOR policy and Arizona law.

Project Status and Schedule 

Design Professionals (DPs) will be selected after CDP approval. Design will be complete approximately six to twelve months after the DP contract is awarded for that component of work.



General construction is scheduled to begin when design is complete and after all approvals are in place. Construction on all project components will be completed by 2019.

Project Cost 

The budget for this set of projects is $15,000,000.



For this Capital Development Plan phase, no preliminary external cost estimates have been provided by third-party consultants. DP and DB, CMAR or JOC contractor teams have not yet been selected for these project components. Independent cost estimates will be provided by the DP, DB, CMAR or JOC contractor after these selections are complete.



For projects selected to use the DB or CMAR delivery method, the CMs will be at risk to provide the completed project within the agreed-upon Guaranteed Maximum Price (GMP). A final report on project control procedures, including change orders and contingency use, will be provided at project completion.

Fiscal Impact and Financing Plan: 

The $15.0 million project budget will be funded with system revenue bonds. Debt service will be paid from tuition.



There are no expected increases in operation and maintenance costs for these projects.

EXECUTIVE SUMMARY 

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 9 of 47

Debt Ratio Impact: The projected incremental debt ratio impact for this project bundle is 0.05 percent.

Occupancy Plan 

These projects will not affect occupancy or programs, but will renew building and campus infrastructure and life safety systems.

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 10 of 47

EXECUTIVE SUMMARY

Capital Project Information Summary University: Arizona State University

Project Name: Building and Infrastructure Enhancements and Modifications

Project Description and Location: This project bundle is planned to upgrade, install and replace building systems and infrastructure at all campuses. Abatement of hazardous materials will be performed as needed. Campus infrastructure enhancements may include site improvements for malls, lighting, street repair and realignment, parking, site drainage and retention. In addition to the above items, this project will start to replace the infrastructure between the Tempe campus central plant and the campus buildings, distribution of chilled water supply and return, steam and condensate return, domestic water, and sewer systems as needed to bring campus distribution up to current standards. Project Schedule: Planning Design Construction Start Construction Completion

February December May December

Project Budget: Total Project Cost Total Project Construction Cost Total Project Cost per GSF Construction Cost per GSF

$ 15,000,000 $ 10,100,000 $ N/A $ N/A

Change in Annual O & M Cost: Utilities Personnel All Other Operating Subtotal

2016 2016 2017 2019

$

$

0

Funding Sources: Capital A. System Revenue Bonds $ 15,000,000 Debt Service Funding Sources: Tuition Operation/Maintenance Funding Sources:

$ 0

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 11 of 47

EXECUTIVE SUMMARY

Capital Project Budget Summary University: Arizona State University

Project: Capital Development Plan

Capital Costs 1. Land Acquisition 2. Construction Cost A. New Construction B. Bldg. Infrastructure Improvements C. Special Fixed Equipment D. Site Development (excl. 2.E.) E. Parking and Landscaping F. Utilities Extensions G. Other* (Demolition) Subtotal Construction Cost 3. Fees A. CMAR Pre-Construction B. Architect/Engineer C. Other Subtotal Consultant Fees 4. FF&E Movable/Security 5. Contingency, Design Phase 6. Contingency, Constr. Phase 7. Parking Reserve 8. Telecommunications Equipment Subtotal Items 4-8 9. Additional University Costs A. Surveys, Tests, Haz. Mat. Abatement B. Move-in Costs C. Printing Advertisement D. Keying, signage, facilities support E. Project Management Cost F. State Risk Mgt. Ins. (.0034 **) Subtotal Addl. Univ. Costs Total Capital Cost

300,000 2,500,000 1,000,000 1,500,000 4,500,000 300,000 $ 10,100,000

$

$ $

$

$

211,195 1,407,970 79,160 1,698,325

Building and Infrastructure Modifications and Enhancements Project Approval

$

-

$

-

$

-

$ $

-

422,391 1,015,090 1,015,090 140,797 2,593,368

675 8,400

36,000 528,892 34,340 $ 608,307 $ 15,000,000

* Universities shall identify items included in this category ** State Risk Management Insurance factor is calculated on construction costs and consultant fees.

EXECUTIVE SUMMARY

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 12 of 47

Arizona Board of Regents Arizona State University Capital Development Plan Project Justification Report Classroom and Academic Renovations Previous Board Action: 

FY 2018-2019 Capital Improvement Plan

September 2015

Statutory/Policy Requirements 

ABOR Policy 7-109 requires approval of renovation or infrastructure projects with a total project cost over $5 million before contracts can be executed and construction can begin.

Project Justification/Description/Scope 

ASU intends to renovate existing classrooms, create new classrooms of various sizes and add smaller instructional spaces at all campuses. Plans call for the renovation of approximately 30,750 gross square feet of classrooms and academic space, including faculty and student space. Building components such as HVAC, plumbing, electrical systems, flooring, ceilings, interior and exterior paint, roofs, windows, doors, internal walls and partitions, elevators, and fire prevention equipment may be upgraded in this project. The Classroom and Academic Renovations project bundle will comprise multiple components at each ASU campus.



The ASU Strategic Enterprise Framework identifies several goals, including improving retention and graduation performance, curricular reform, and improved student outcomes. Resources needed to achieve these ends include continued investment in faculty as well as space renovations to support teaching innovations. These projects will provide renovated and growth space for academic programs, allowing better student/faculty interaction and learning experiences. The work will create attractive spaces for student learning, and renovate worn areas that distract from learning and teaching effectiveness, resulting in improved and updated space for new faculty hires.



These project components will enhance the quality of the buildings, with improved space for faculty and better classroom experience for students, maintain compliance with code requirements for safety, and address ABOR directives to reduce deferred maintenance. Project components essential for life safety/code compliance and University strategic initiatives have been given top priority.

EXECUTIVE SUMMARY

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 13 of 47

Project Delivery Method and Process: 

Depending on the nature of the work, components of this project may be delivered through either the CMAR or Job Order Contracting (JOC) method.



ASU has not yet selected a CMAR, JOC contractor or design professional firm for any components of this project. Contractors and design professionals will be selected according to ABOR policy and Arizona law.

Project Status and Schedule 

Design Professionals (DPs) will be selected after CDP approval. Design will be complete approximately six to nine months after the DP contract is awarded.



General construction is scheduled to begin when design is complete and after all approvals are in place. Construction on all project components will be completed by 2019.

Project Cost 

The budget for this set of projects is $10,000,000.



The budget represents an estimated construction cost of $211 per gross square foot. The estimated total project cost is $325 per gross square foot.



For this Capital Development Plan phase, no preliminary external cost estimates have been provided by third-party consultants. DP and CMAR or JOC contractor teams have not yet been selected for these projects. Independent cost estimates will be provided by the DP, CMAR or JOC contractor after these selections are complete.



For projects selected to use the CMAR delivery method, the CMARs will be at risk to provide the completed project within the agreed-upon Guaranteed Maximum Price (GMP). A final report on project control procedures, including change orders and contingency use, will be provided at project completion.

EXECUTIVE SUMMARY

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 14 of 47

Fiscal Impact and Financing Plan: 

The $10.0 million project budget will be funded with system revenue bonds. Debt service will be paid from tuition.



There are no expected increases in operation and maintenance costs for this set of projects.



Debt Ratio Impact: The projected incremental debt ratio impact for this project bundle is 0.03 percent.

Occupancy Plan 

These project components will reconfigure and renew spaces for classroom and academic areas. Programs may be temporarily displaced as spaces are renovated.

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 15 of 47

EXECUTIVE SUMMARY

Capital Project Information Summary University: Arizona State University

Project Name: Classroom and Academic Renovations

Project Description and Location: This project bundle includes the renovation of approximately 30,750 gross square feet of classrooms and academic space, including faculty and student space at all campuses. Building components such as HVAC, plumbing, electrical systems, flooring, ceilings, interior and exterior paint, roofs, windows, doors, internal walls and partitions, elevators, and fire prevention equipment may be upgraded in this project. Project Schedule: Planning Design Construction Start Construction Completion

Project Budget: Total Project Cost Total Project Construction Cost Total Project Cost per GSF Construction Cost per GSF Change in Annual O & M Cost: Utilities Personnel All Other Operating Subtotal

January July December December

$ 10,000,000 $ 6,500,000 $ 325 $ 211 $

$ 0

Funding Sources: Capital A. System Revenue Bonds $ 10,000,000 Debt Service Funding Sources: Tuition Operation/Maintenance Funding Sources:

2016 2016 2016 2019

$ 0

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 16 of 47

EXECUTIVE SUMMARY

Capital Project Budget Summary University: Arizona State University

Project:

Classrooms and Academic Renovations

Capital Development Plan Capital Costs 1. Land Acquisition 2. Construction Cost A. New Construction B. Tenant Improvements C. Special Fixed Equipment D. Site Development (excl. 2.E.) E. Parking and Landscaping F. Utilities Extensions G. Other* (Demolition/abatement) Subtotal Construction Cost 3. Fees A. CMAR Pre-Construction B. Architect/Engineer C. Other Subtotal Consultant Fees 4. FF&E Movable 5. Contingency, Design Phase 6. Contingency, Constr. Phase 7. Parking Reserve 8. Telecommunications Equipment Subtotal Items 4-8 9. Additional University Costs A. Surveys, Tests, Haz. Mat. Abatement B. Move-in Costs C. Printing Advertisement D. Keying, signage, facilities support E. Project Management Cost F. State Risk Mgt. Ins. (.0034 **) Subtotal Addl. Univ. Costs Total Capital Cost

Project Approval

5,300,000 1,000,000

$

$

$ $

$

200,000 6,500,000

$

-

97,500 780,000 91,660 969,160

$

-

$

-

$ $

-

325,000 650,000 650,000 455,000 2,080,000

8,840 50,000 358,680 33,320 $ 450,840 $ 10,000,000

* Universities shall identify items included in this category ** State Risk Management Insurance factor is calculated on construction costs and consultant fees.

EXECUTIVE SUMMARY

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 17 of 47

Arizona Board of Regents Arizona State University Capital Development Plan Project Justification Report Research Laboratory/Faculty Startup Previous Board Action: 

FY 2018-2019 Capital Improvement Plan

September 2015

Statutory/Policy Requirements 

ABOR Policy 7-109 requires approval of renovation or infrastructure projects with a total project cost over $5 million before contracts can be executed and construction can begin.

Project Justification/Description/Scope 

The Research Laboratory/Faculty Startup projects bundle will involve the renovation of approximately 30,000 gross square feet of laboratories to meet the needs of new and current research requirements within existing facilities. Multiple wet and dry lab spaces will be upgraded, as well as infrastructure and building systems, in order to maximize adaptable and flexible technologies. Renovation activities will involve building systems such as HVAC, mechanical, fume hoods, lab gas lines, electrical, and code-required life safety upgrades.



Many existing University laboratories and building systems are inadequate, due to age and the requirements of emerging technologies. The poor condition of the spaces and age of the building systems constrain the development of these strategically important areas. This project will ensure facility systems can meet research demands and will keep areas within code compliance. It will convert inadequate classroom laboratories, research laboratories and research building systems to state-of-the-art research facilities.



Increasing research activity and the resultant arrival of new faculty continue to make laboratory renovation projects an imperative. Spaces must be updated and renovated for the needs of incoming researchers and successful grant applications. These laboratories will provide the core infrastructure from which faculty and students can compete in the global marketplace of ideas, stimulating not only advances in science and human health needs, but potentially stimulating the regional economy.

EXECUTIVE SUMMARY 

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 18 of 47

The 2012 campus master plan update identified a need for additional research space totaling 350,000 gross square feet. This project will contribute to meeting this need.

Project Delivery Method and Process: 

Depending on the nature of the work, components of this project may be delivered through either the CMAR or Job Order Contracting (JOC) methods.



ASU has not yet selected a CMAR, JOC contractor or design professional firm for any components of this project bundle. Contractors, and design professionals will be selected according to ABOR policy and Arizona law.

Project Status and Schedule 

Design Professionals (DPs) will be selected after CDP approval. Design will be complete approximately six to nine months after the DP contract is awarded.



General construction is scheduled to begin when design is complete and after all approvals are in place. Construction on all project components will be completed by 2019.

Project Cost 

The budget for this project bundle is $15,000,000.



The budget represents an estimated construction cost of $325 per gross square foot. The estimated total project cost is $500 per gross square foot.



For this Capital Development Plan phase, no preliminary external cost estimates have been provided by third-party consultants. DP and CMAR or JOC contractor teams have not yet been selected for these project components. Independent cost estimates will be provided by the DP, CMAR or JOC contractor after these selections are complete.



For project components selected to use the CMAR delivery method, the CMARs will be at risk to provide the completed project within the agreed-upon Guaranteed Maximum Price (GMP). A final report on project control procedures, including change orders and contingency use, will be provided at project completion.

EXECUTIVE SUMMARY

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 19 of 47

Fiscal Impact and Financing Plan: 

The $15.0 million project budget bundle will be funded with system revenue bonds. Debt service will be paid from tuition.



There are no expected increases in operation and maintenance costs for this project bundle.



Debt Ratio Impact: The projected incremental debt ratio impact for this project bundle is 0.05 percent.

Occupancy Plan 

These project components will not affect occupancy or programs, but will renew research spaces.

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 20 of 47

EXECUTIVE SUMMARY

Capital Project Information Summary University: Arizona State University

Project Name: Research Laboratory/Faculty Startup

Project Description and Location: The Research Laboratory/Faculty Startup project bundle will involve the renovation of approximately 30,000 gross square feet of laboratories to meet the needs of new and current research requirements within existing facilities.

Project Schedule: Planning Design Construction Start Construction Completion

Project Budget: Total Project Cost Total Project Construction Cost Total Project Cost per GSF Construction Cost per GSF Change in Annual O & M Cost: Utilities Personnel All Other Operating Subtotal

January June January December

2016 2016 2017 2019

$ 15,000,000 $ 9,760,000 $ 500 $ 325 $

$

0

Funding Sources: Capital A. System Revenue Bonds $ 15,000,000 Debt Service Funding Sources: Tuition Operation/Maintenance Funding Sources:

$

0

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 21 of 47

EXECUTIVE SUMMARY

Capital Project Budget Summary University: Arizona State University

Project:

Research Laboratory/Faculty Startup

Capital Development Plan Capital Costs 1. Land Acquisition 2. Construction Cost A. New Construction B. Tenant Improvements C. Special Fixed Equipment D. Site Development (excl. 2.E.) E. Parking and Landscaping F. Utilities Extensions G. Other* (Demolition/abatement) Subtotal Construction Cost 3. Fees A. CMAR Pre-Construction B. Architect/Engineer C. Other Subtotal Consultant Fees 4. FF&E Movable 5. Contingency, Design Phase 6. Contingency, Constr. Phase 7. Parking Reserve 8. Telecommunications Equipment Subtotal Items 4-8 9. Additional University Costs A. Surveys, Tests, Haz. Mat. Abatement B. Move-in Costs C. Printing Advertisement D. Keying, signage, facilities support E. Project Management Cost F. State Risk Mgt. Ins. (.0034 **) Subtotal Addl. Univ. Costs Total Capital Cost

Project Approval

7,260,000 2,000,000

$

$

$ $

$

500,000 9,760,000

$

-

146,400 1,171,200 50,000 1,367,600

$

-

$

-

$ $

-

650,000 976,000 976,000 650,000 3,252,000

8,772 50,000 528,444 33,184 $ 620,400 $ 15,000,000

* Universities shall identify items included in this category ** State Risk Management Insurance factor is calculated on construction costs and consultant fees.

EXECUTIVE SUMMARY

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 22 of 47

Arizona Board of Regents Arizona State University Capital Development Plan Project Justification Report Central Plant Chilled Water System Optimization and Deferred Maintenance Previous Board Action: 

None

Statutory/Policy Requirements 

ABOR Policy 7-109 requires approval of renovation or infrastructure projects with a total project cost over $5 million before contracts can be executed and construction can begin.

Project Justification/Description/Scope 

The ASU Central Plant Chilled Water System is one of the foundational components necessary to provide air conditioning to ASU’s Tempe Campus. Despite aging equipment, the system is expected to serve ASU for many years to come. In order to meet future operational expectations reliably and efficiently, a number of upgrades and replacements are necessary.



The Central Plant Chilled Water System Optimization and Deferred Maintenance Project (“Project”) addresses many of these required actions and significantly improves performance. First, it replaces a number of critical motors and adds energy-efficient variable speed drives. Second, it upgrades the current outmoded control system. Third, it adds critical instrumentation to monitor the system’s operation more effectively. Fourth, it adds an optimization program to assist personnel with operations and reduce energy costs. Finally, the project improves the system’s cooling tower performance by replacing certain worn fan assemblies, replacing aged cooling tower media for two of the towers, and installing fan shroud extensions that will direct saturated air away from the cooling towers.



In addition to increasing plant reliability and reducing deferred maintenance, the Project will reduce ASU’s Central Plant chilled water system energy use by over 15 percent.

Project Delivery Method and Process: 

The project will be delivered by Ameresco, Inc., through a project implementation agreement under the Ameresco Strategic Alliance Master Agreement for Climate

EXECUTIVE SUMMARY

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 23 of 47

Neutrality, which was awarded to Ameresco as a result of a competitive solicitation. ASU has had significant experience with Ameresco (including APS Energy Services, which was acquired by Ameresco in 2011) through other competitive procurement awards. Ameresco was the design/build contractor for the Combined Heat and Power Facility on the Tempe Campus and the Central Plant on the Polytechnic Campus. In addition, Ameresco implemented two phases of an energy savings performance contract at the Tempe Campus and installed multiple solar systems throughout ASU.

Project Status and Schedule 

This project is in the design phase, with construction expected to begin in June 2016. Construction will be completed approximately twelve months from notice to proceed.

Project Cost 

The budget for this project is $10,380,000.



To ensure that costs are reasonable, unless otherwise dictated by ASU, Ameresco will select its subcontractors and equipment purchases by seeking at least three bids before hiring each subcontractor or purchasing each piece of major equipment. Ameresco will provide open book pricing and access to ASU with respect to these bids and all other direct costs.



Ameresco will be at risk to provide the completed project within the agreed-upon price. A final report on project control procedures, including change orders and contingency use, will be provided at project completion.



Additionally, ASU has hired a third-party, independent engineering consultant (Jacobs Engineering) to review the Project scope of work and the costs of design and construction.

EXECUTIVE SUMMARY

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 24 of 47

Fiscal Impact and Financing Plan: 

The $10.38 million project budget will be funded with local funds.



Annual savings due to energy efficiency are anticipated to be in excess of $750,000.



The average annual operations and maintenance costs for this project are estimated to be approximately $50,000. The University will fund operations and maintenance with local funds.



Debt Ratio Impact: Not applicable

Occupancy Plan 

Central Plant use and occupancy will not change as a result of this project.

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 25 of 47

EXECUTIVE SUMMARY

Capital Project Information Summary University: Arizona State University

Project Name: Central Plant Chilled Water System Optimization and Deferred Maintenance

Project Description and Location: This project replaces obsolete and aged mechanical equipment within the Central Chiller Plant as well as the control system with new energy-efficient equipment and an upgraded control system. Project Schedule: Planning Design Construction Start Construction Completion

August February June June

Project Budget: Total Project Cost Total Project Construction Cost Total Project Cost per GSF Construction Cost per GSF

$ 10,380,000 $ 8,969,398 $ N/A $ N/A

Change in Annual O & M Cost: Utilities Personnel All Other Operating Subtotal

$

$

2014 2016 2016 2017

0 0 50,000 50,000

Funding Sources: Capital A. Local Funds $ 10,380,000 Debt Service Funding Sources: Not applicable Operation/Maintenance Funding Sources: Local Funds

$

50,000

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 26 of 47

EXECUTIVE SUMMARY

Capital Project Budget Summary University: Arizona State University

Project:

Central Plant Chilled Water System Optimization and Deferred Maintenance

Capital Development Plan Capital Costs 1. Land Acquisition 2. Construction Cost A. New Construction B. Tenant Improvements C. Special Fixed Equipment D. Site Development (excl. 2.E.) E. Parking and Landscaping F. Utilities Extensions G. Other* (Commisioning) Subtotal Construction Cost 3. Fees A. CMAR Pre-Construction B. Architect/Engineer C. Other Subtotal Consultant Fees 4. FF&E Movable 5. Contingency, Design Phase 6. Contingency, Constr. Phase 7. Parking Reserve 8. Telecommunications Equipment Subtotal Items 4-8 9. Additional University Costs A. Surveys, Tests, Haz. Mat. Abatement B. Move-in Costs C. Printing Advertisement D. Keying, signage, facilities support E. Project Management Cost F. State Risk Mgt. Ins. (.0034 **) Subtotal Addl. Univ. Costs Total Capital Cost

Project Approval

8,907,398

12,000

$

50,000 8,969,398

$

-

$

25,000 96,160 121,160

$

-

$

-

$ $

-

830,514

$

5,000 835,514

$

30,000

15,000 372,333 36,595 $ 453,928 $ 10,380,000

* Universities shall identify items included in this category ** State Risk Management Insurance factor is calculated on construction costs and consultant fees.

EXECUT TIVE SUMM MARY

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EXECUTIVE SUMMARY

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 28 of 47

Arizona Board of Regents Arizona State University Capital Development Plan Project Justification Report Armstrong Hall Renovation

Previous Board Action: 

FY 2017 Capital Improvement Plan

September 2015

Statutory/Policy Requirements 

Pursuant to Arizona Board of Regents Policy, Chapter 7-102, all renovation projects of $5 million or more shall be brought to the Business and Finance Committee for approval, regardless of funding source or financing.

Project Justification/Description/Scope 

With the Sandra Day O’Connor College of Law relocating to the new Arizona Center for Law and Society on the Downtown Phoenix campus this summer, its existing facilities on the Tempe campus will be repurposed, including Armstrong Hall. Armstrong Hall opened in 1967 to meet the unique needs of the law program and underwent a significant renovation in 1988 when a second floor was added and other updates completed. The two-story facility provides approximately 98,829 gross square feet (GSF), including the basement.



The University intends to update Armstrong Hall to serve as the new home of the College of Liberal Arts and Sciences (CLAS). Armstrong Hall will house the Office of the Dean, provide a central location for CLAS student success and advising functions, and create a hub for CLAS student instruction and collaboration. Additionally, the Great Hall will be updated for use as both a large classroom and for lectures and special events.



Renovations to the first floor of Armstrong Hall will increase office and student collaboration space and update the Great Hall. Second floor renovations will provide adminstrative and support space for CLAS. The lower level will be used for student collaboration and classrooms. Infrastructure upgrades will include installation of more energy-efficient mechanical systems and additional IT and AV equipment, as well as address any code compliance and ADA issues.

EXECUTIVE SUMMARY 

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 29 of 47

The Armstrong Hall Renovation will further two campus master plan goals by supporting CLAS attainment of national standing by providing a “front door” for CLAS, as well as strengthening the heart of the Tempe campus by using existing academic space for CLAS students, faculty, staff and administration.

Project Delivery Method and Process: 

This project will be delivered through the Construction Manager at Risk (CMAR) delivery method. This approach was selected to provide contractor design input and coordination throughout the project, alleviate potentially adversarial project environments, and allow for the selection of the most qualified contractor team. With the use of two independent cost estimates at each phase, and pre-qualified, low-bid subcontractor work for the actual construction, CMAR project delivery also provides a high level of cost and quality control.



ASU is in the process of selecting both the Design Professional (DP) and CMAR for this project. The initial cost and scope for this project were determined through the use of a consulting engineering firm that performed an in-depth evaluation of the building to identify required upgrades to meet CLAS’s academic needs. The proposed budget is based upon reasonable assumptions on cost per square foot for the needed changes in the building to accommodate the new occupants.

Project Status and Schedule 

This project is in the DP and CMAR selection phase. Construction will be completed approximately twelve months after CMAR construction contracts are awarded.

Project Cost 

The budget for this 98,829 gross-square-foot project is $15 million.



The budget represents an estimated construction cost of $101 per gross square foot. The estimated total project cost is $152 per gross square foot.



For this Capital Development Plan phase, an engineering consultant was hired to determine the scope and provide external cost estimates from independent programming efforts. Additional independent cost estimates will be provided by the DP and CMAR, once selected, as the project progresses through the design process.

EXECUTIVE SUMMARY 

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 30 of 47

The CMAR will be at risk to provide the completed project within the agreed-upon Guaranteed Maximum Price (GMP). A final report on project control procedures, including change orders and contingency use, will be provided at project completion.

Fiscal Impact and Financing Plan: 

The $15.0 million project budget will be funded with system revenue bonds. Debt service will be paid from tuition.



There are no expected increases in operation and maintenance costs for this project.



Debt Ratio Impact: The projected incremental debt ratio impact for this project is 0.05 percent.

Occupancy Plan Armstrong Hall will become the home of the College of Liberal Arts and Science (CLAS) on the Tempe Campus, bringing together physically separated offices, classrooms, and student support space. 

The relocation of these academic functions to Armstrong Hall will open up space in the Fulton Center and other buildings across campus and provide needed growth space for the University.

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 31 of 47

EXECUTIVE SUMMARY

Capital Project Information Summary University: Arizona State University

Project Name: Armstrong Hall Renovation

Project Description and Location: The renovation of Armstrong Hall will prepare the building for a new user group by creating new offices, student collaboration space, and updating the Great Hall. The project also will include infrastructure upgrades with the intention of creating more energy-efficient mechanical systems and addressing the major operational and code compliance issues currently being experienced. Project Schedule: Planning Design Construction Construction Completion

August October February December

Project Budget: Total Project Cost Total Construction Project Cost Total Project Cost per GSF Construction Cost per GSF

$ 15,000,000 $ 10,000,000 $ 152 $ 101

Change in Annual O and M Cost: Utilities Personnel All Other Operating Subtotal

2016 2016 2017 2017

$

$

0 0 0

Funding Sources: Capital A. Gifts $ B. System Revenue Bonds $ 15,000,000 Debt Service Funding Sources: Tuition Operation/Maintenance Funding Sources:

$

0

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 32 of 47

EXECUTIVE SUMMARY

Capital Project Budget Summary University: ASU at the Tempe Campus

Project:

Armstrong Hall Renovation

Capital Development Plan Capital Costs 1. Land Acquisition 2. Construction Cost A. New Construction B. Renovation C. Special Fixed Equipment D. Site Development (excl. 2.E.) E. Parking and Landscaping F. Utilities Extensions G. Other* (Demolition) Subtotal Construction Cost 3. Fees A. CMAR Pre-Construction B. Architect/Engineer C. Other Subtotal Consultant Fees 4. FF&E Movable 5. Contingency, Design Phase 6. Contingency, Constr. Phase 7. Parking Reserve 8. Telecommunications Equipment Subtotal Items 4-8 9. Additional University Costs A. Surveys, Tests, Haz. Mat. Abatement B. Move-in Costs C. Printing Advertisement D. Keying, signage, facilities support E. Project Management Cost (2%) F. State Risk Mgt. Ins. (.0034 **) Subtotal Addl. Univ. Costs Total Capital Cost

Project Approval

6,000,000 4,000,000

$

10,000,000

$

150,000 1,200,000

$

1,350,000

$ $

500,000 1,000,000 1,000,000

$

$

$ $

$

-

$

-

500,000 3,000,000

$

-

140,500 45,000 2,500 25,000 386,000 51,000 650,000 15,000,000

$ $

-

* Universities shall identif y items included in this category ** State Risk Management Insurance f actor is calculated on construction costs and consultant f ees.

EXECUT TIVE SUMM MARY

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EXECUTIVE SUMMARY

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 34 of 47

Arizona Board of Regents Arizona State University Capital Development Plan Project Justification Report Ross-Blakley Law Library Renovation

Previous Board Action: 

FY 2017 Capital Improvement Plan

September 2015

Statutory/Policy Requirements 

Pursuant to Arizona Board of Regents Policy, Chapter 7-102, all renovation projects of $5 million or more shall be brought to the Business and Finance Committee for approval, regardless of funding source or financing.

Project Justification/Description/Scope 

With the Sandra Day O’Connor College of Law relocating this summer to the new Arizona Center for Law and Society on the Downtown Phoenix campus, its existing facilities on the Tempe campus will be repurposed, including the Ross-Blakley Law Library (Ross-Blakley). Ross-Blakley, with 67,752 gross square feet of space, was built in 1992 and last updated in 2010.



The University intends to update Ross-Blakley to house the College of Liberal Arts and Sciences (CLAS) English Department. Ross-Blakley will provide classrooms, writing centers, humanity research space, offices and student collaboration space for use by the English Department, with limited renovation required. Additionally, the project will address infrastructure upgrades identified in a recent engineering evaluation, such as elevator upgrades and additional points of exit.



The Ross-Blakley Renovation will further two campus master plan goals by supporting CLAS in attainment of national standing by locating the English Department in a single location that enhances instruction and research effectiveness, as well as strengthening the heart of the Tempe campus by using existing academic space for English Department students, faculty, and staff.

EXECUTIVE SUMMARY

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 35 of 47

Project Delivery Method and Process: 

This project will be delivered through the Construction Manager at Risk (CMAR) delivery method. This approach was selected to provide contractor design input and coordination throughout the project, alleviate potentially adversarial project environments, and allow for the selection of the most qualified contractor team. With the use of two independent cost estimates at each phase, and pre-qualified, low-bid subcontractor work for the actual construction, CMAR project delivery also provides a high level of cost and quality control.



ASU is in the process of selecting both the DP and CMAR for this project. The initial cost and scope for this project were determined through the use of a consulting engineering firm that performed an in-depth evaluation of the building to identify required upgrades to meet the academic needs of the English Department. The proposed budget is based upon reasonable assumptions on cost per square foot for the needed changes in the building to accommodate the new occupants.

Project Status and Schedule 

This project is in the DP and CMAR selection phase. Construction will be completed approximately twelve months after CMAR construction contracts are awarded.

Project Cost 

The budget for this 67,752 gross-square-foot project is $6.8 million.



The budget represents an estimated construction cost of $74 per gross square foot. The estimated total project cost is $100 per gross square foot.



For this Capital Development Plan phase, an engineering consultant was hired to determine the necessary scope and provide external cost estimates from independent programming efforts. Additional independent cost estimates will be provided by the DP and CMAR, once selected, as the project progresses through the design process.



The CMAR will be at risk to provide the completed project within the agreed-upon Guaranteed Maximum Price (GMP). A final report on project control procedures, including change orders and contingency use, will be provided at project completion.

EXECUTIVE SUMMARY

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 36 of 47

Fiscal Impact and Financing Plan: 

The $6.8 million project budget will be funded with system revenue bonds. Debt service will be paid from tuition.



There are no expected increases in operation and maintenance costs for this project.



Debt Ratio Impact: The projected incremental debt ratio impact for this project is 0.02 percent.

Occupancy Plan Ross-Blakley will become the new consolidated home for the English Department in the College of Liberal Arts and Science. 

The English Department is currently located in multiple buildings on the Tempe campus. This project will free up space in the Durham Language and Literature Building, Mclintock Hall, and the Farmer Education Building.

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 37 of 47

EXECUTIVE SUMMARY

Capital Project Information Summary University: Arizona State University

Project Name: Ross-Blakley Law Library Renovation

Project Description and Location: This project will … Project Schedule: Planning Design Construction Construction Completion

August October February December

Project Budget: Total Project Cost Total Construction Project Cost Total Project Cost per GSF Construction Cost per GSF

$ 6,800,000 $ 5,000,000 $ 100 $ 74

Change in Annual O and M Cost: Utilities Personnel All Other Operating Subtotal

2016 2016 2017 2017

$

$

0 0 0

Funding Sources: Capital A. Gifts $ B. System Revenue Bonds $ 6,800,000 Debt Service Funding Sources: Tuition Operation/Maintenance Funding Sources:

$

0

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 38 of 47

EXECUTIVE SUMMARY

Capital Project Budget Summary University: ASU at the Tempe Campus

Project:

Ross-Blakley Law Library Renovation

Capital Development Plan Capital Costs 1. Land Acquisition 2. Construction Cost A. New Construction B. Renovation C. Special Fixed Equipment D. Site Development (excl. 2.E.) E. Parking and Landscaping F. Utilities Extensions G. Other* (Demolition) Subtotal Construction Cost 3. Fees A. CMAR Pre-Construction B. Architect/Engineer C. Other Subtotal Consultant Fees 4. FF&E Movable 5. Contingency, Design Phase 6. Contingency, Constr. Phase 7. Parking Reserve 8. Telecommunications Equipment Subtotal Items 4-8 9. Additional University Costs A. Surveys, Tests, Haz. Mat. Abatement B. Move-in Costs C. Printing Advertisement D. Keying, signage, facilities support E. Project Management Cost (2%) F. State Risk Mgt. Ins. (.0034 **) Subtotal Addl. Univ. Costs Total Capital Cost

Project Approval

2,857,000 2,155,000

$

5,012,000

$

75,180 601,440

$

676,620

$ $

142,850 250,600 250,600

$

-

$

-

$

199,990 844,040

$

-

$ $

780 243,902 22,658 267,340 6,800,000

$ $

-

* Universities shall identify items included in this category ** State Risk Management Insurance factor is calculated on construction costs and consultant fees.

EXECUT TIVE SUMM MARY

Bussiness and Finance Co ommittee M Meeting June 8 8, 2016 Item #3A Page 3 39 of 47

EXECUTIVE SUMMARY

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 40 of 47

Arizona Board of Regents Arizona State University Capital Development Plan Project Justification Report Sun Devil Stadium Renovation Phase 3 Previous Board Action:      

FY 2017 CDP Phase 2 Project Approval FY 2016 CDP Phase 1 Project Approval FY 2015 Amended CDP 2016-2018 CIP

June 2016 September 2015 June 2015 November 2014 September 2014 September 2013

Statutory/Policy Requirements 

ABOR Policy 7-109 requires approval of renovation or infrastructure projects with a total project cost over $5 million before contracts can be executed and construction can begin.

Project Justification/Description/Scope 

Arizona State University takes pride in its status as an elite institution with a topranked intercollegiate athletics program. Sun Devil Stadium, the University’s largest public assembly building, has been a landmark in the Valley for the last 58 years. The Stadium has operated in recent years with substandard and insufficient access, restrooms, concessions, points of sale, and spectator amenities, and a lack of competitive premium seating amenities.



The Sun Devil Stadium Renovation Project provides an opportunity to increase ASU’s investment in the community and to set the standard for collegiate athletics facilities. ASU is seeking philanthropic support to provide features that will enhance the game day experience for both fans and student-athletes.



The project will renovate Sun Devil Stadium, while retaining its iconic setting between the Tempe and Hayden Buttes. ASU will utilize the inherent media interest that surrounds college football to extend the University’s prominence on a national stage and showcase the best the University has to offer. After the 1997 Rose Bowl, applications to Arizona State University increased by nearly fifteen percent from the previous season. More recently, The Arizona Republic called the 2013 PAC-12 Championship football game, held at Sun Devil Stadium, a “…giant

EXECUTIVE SUMMARY

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 41 of 47

commercial for school and state.” Sun Devil Athletics hosts an average of 180 events per year at its athletics facilities, for a total economic impact in the Valley of slightly over $209 million annually. 

The Sun Devil Stadium Renovation Project has been planned in three phases while the team continues to play in the stadium. Phase 1 began after the 2014 football season, Phase 2 began after the 2015 season, and this Phase 3 will begin during the 2016 season, with completion of all phases in time for the start of the 2017 season.



In addition to the benefits identified above, ASU is working to create an environment at Sun Devil Stadium that will support use not only for athletic events, but also by the general student population and potentially the public as well. With enhancements to components such as IT and AV, the stadium potentially will accommodate outdoor/indoor classrooms, academic events/functions and public events. The goal is for Sun Devil Stadium to serve as a gathering and social space for students, faculty/staff and the public beyond football.

Project Delivery Method and Process: 

This project is being delivered through the Construction Manager at Risk (CMAR) method. This approach was selected for the project to save time through fast-track project scheduling, provide contractor design input and coordination throughout the project, improve potentially adversarial project environments, and allow for the selection of the most qualified contractor team. With the use of two independent cost estimates at each phase, and low-bid subcontractor work for the actual construction, CMAR delivery also provides a high level of cost and quality control.



ASU selected Hunt/Sundt Construction, a joint venture, as the CMAR and HNTB and Gould Evans as the design professionals for this project. During the CMAR selection process, there were three responses and three contractors interviewed. The selection process for the design professional included seven responses and four firms were interviewed.

Project Status and Schedule 

Design and construction will be completed in three phases to enable Sun Devil football games to be scheduled in the stadium throughout the construction period without temporary relocation or a significant negative impact on the fan experience. Phase 1, completed for the fall 2015 season, included construction of a new student section in the south end zone that creates a continuous concrete

EXECUTIVE SUMMARY

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 42 of 47

lower seating bowl. The new section includes infrastructure, enhanced concessions and food service, renovated and new restrooms, improved Wi-Fi, ADA enhancements and elevators. 

Phases 2 and 3 include demolition and rebuild of much of the east and west side of Sun Devil Stadium to resolve deferred maintenance and structural issues, in addition to bringing the stadium up to the level of excellence expected by fans and players. Phase 2 west seating bowl improvements will be complete for the fall 2016 football season and Phase 3 east side improvements and premium seating amenities all will be available for fall 2017. The lower bowl, the loge level, a portion of the upper deck seating, and both the main and upper deck concourses will be demolished. The reconstructed lower bowl will provide improved seating options, wider treads, and easier seat access. The main concourse will be replaced to connect seamlessly with the new south end zone concourse elevation. A new upper deck concourse will be constructed and new upper bowl seating will augment existing upper bowl seating. New premium seating will be constructed between the upper deck and the main concourse level on the west side, with improved amenities and access to premium seating lounge areas. Stadium patrons will appreciate new concessions, expanded restrooms, enhanced technology, and improved circulation on all levels of the stadium. Exterior construction of the Student Athletic Facility, which will be integrated into the north end zone stadium structure, will be completed during Phase 2 and the interior buildout will be completed in Phase 3. Both phases also will address infrastructure issues, including waste lines, domestic water, and electrical and mechanical systems, and provide complete ADA upgrades.



Phase 3 design is complete and construction will begin immediately following receipt of ABOR PA and JCCR review. Prior to the end of the fall 2016 football season, work will continue within the Student Athletic Facility and tasks that can be accomplished on the east side without impact to the game day experience will begin, as well as ordering of long-lead materials.

Project Cost 

The total budget for all three phases of this 850,000 gross-square-foot project is $268.7 million and the budget for Phase 3 is $96 million. The Sun Devil Stadium Renovation project also creates the potential to develop additional finished amenity space that will be built out as separate projects as funding is available in the future.



The total Phase 3 budget is $96.0 million, based on a construction budget of $78.4 million (see page 7 for additional breakdowns). The Phase 3 budget has increased $12.7 million from the initial project forecast to accommodate several in-scope contract modifications not identified in the original project description.

EXECUTIVE SUMMARY

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Modifications include unforeseen site conditions such as a construction landfill discovered in the north end zone, replacement of the full lower bowl structure, expanded IT/AV infrastructure and components to accommodate increased utilization of the stadium beyond athletic events, and contingency costs associated with schedule acceleration required to avoid impact to the 2016 football schedule. 

For Phase 3 Project Approval, the DP and CMAR teams have provided external cost estimates based upon independent programming and estimating efforts. The estimates are in alignment for both Phase 3 and the overall $268.7 million project budget.



The CMAR will be at risk to provide the completed project within the agreed-upon Guaranteed Maximum Price (GMP). A final report on project control procedures, including change orders and contingency use, will be provided at project completion.

Fiscal Impact and Financing Plan: 

The $96.0 million Sun Devil Stadium Renovation Phase 3 project will be funded with $75.7 million in System Revenue Bond proceeds and $20.3 of capital gifts. Debt service on the bonds will be funded by Sun Devil Athletics (SDA) revenues, including enhanced stadium income, conference revenue distributions, charitable gifts, and in the longer term, ASU Athletic Facilities District revenues.



In earlier project phase approvals, gifts were planned to fund $50.3 million of Phase 3 project costs. However, to ensure compliance with updated IRS private use regulations, $30 million in gifts were shifted from Phase 3 to Phase 2, with an offsetting decrease in Phase 2 System Revenue Bond funding. Over the three project phases, project gift funding remains unchanged at $56 million and System Revenue Bond funding has increased $12.7 million in response to the Phase 3 budget increase. The increased bond funding can be accomplished within the originally anticipated debt service payment levels, due to favorable long-term interest rates.



Once the project is complete, operations and maintenance costs are estimated to increase by $1.6 million annually. The University will fund operations and maintenance increases through SDA revenues.

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 44 of 47

EXECUTIVE SUMMARY 

The following table reflects charitable gift funding anticipated in the project plan of finance: Total Project Cost

Gift Target

Current Gifts (Cash/ Pledges)

Project Name

ABOR Approval

Intended Occupan cy Date

College Avenue Commons

PA 12/2012

7/2014

$54.5m

$7.5m

$7.5m

AZ Center for Law and Society

PA 6/2014

7/2016

$129.0m

$3.0m

$10.0m

Sun Devil Stadium Renovation

PA Ph1 11/2014 Ph2 9/2015 Ph3 6/2016

8/2017

$268.7m

$56.0m

$56.0m

Gammage Auditorium Rehabilitation

CDP 11/2015

TBD

$9.1m

$5.6m

$5.3m



Debt Ratio Impact: ASU’s maximum projected ratio of debt service to total expenditures is 4.9 percent, including the anticipated 0.19 percent impact of these projects, well below the 8.0 percent statutory maximum.

Occupancy Plan 

The project is being completed in three phases between football seasons to allow uninterrupted use of the stadium during renovation. The project’s three phases all are scheduled to be completed prior to the fall 2017 season.

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 45 of 47

EXECUTIVE SUMMARY

Capital Project Information Summary University: Arizona State University

Project Name: Sun Devil Stadium Renovation Phase 3

Project Description and Location: The project will renovate approximately 850,000 gross square feet of Sun Devil Stadium on the Tempe Campus and construct an integrated Student Athlete Facility. The renovations will be designed and constructed to last fifty years. Project Schedule: Planning Design-Start Construction Start Construction Completion, Phase 1 Construction Completion, Phase 2 Construction Completion, Phase 3/Total Project Project Budget: Total Project Cost Total Project Construction Cost Total Phase 1 Cost Total Phase 2 Cost Total Phase 3 Cost Total Phase 3 Construction Cost Total Project Cost per GSF Total Construction Cost per GSF

January December January August August August

$ 268,700,000 $ 210,400,000 $ 65,700,000 $ 107,000,000 $ 96,000,000 $ 78,400,000 $ 316 $ 248

Change in Annual Operations and Maintenance Cost: Utilities $ 680,000 Personnel 364,000 All Other Operating 556,000 Subtotal $ 1,600,000 Funding Sources: Capital A. Gifts $ 20,300,000 B. System Revenue Bonds $ 75,700,000 Debt Service Funding Sources: Auxiliary Revenue Operation/Maintenance Funding Sources: Auxiliary

$

1,600,000

2012 2015 2015 2015 2016 2017

Business and Finance Committee Meeting June 8, 2016 Item #3A Page 46 of 47

EXECUTIVE SUMMARY

Capital Project Budget Summary Project: Sun Devil Stadium Renovation Phase 3

University: ASU at the Tempe campus

Phase 2 Project Approval

Phase 1 Project Approval Capital Costs 1. Land Acquisition 2. Construction Cost A. New Construction B. Renovation C. Special Fixed Equipment D. Site Development (excl. 2.E.) E. Parking and Landscaping F. Utilities Extensions G. Other* (Demolition) Subtotal Construction Cost 3. Fees A. Construction Mgr B. Architect/Engineer C. Other Subtotal Consultant Fees 4. FF&E Movable 5. Contingency, Design Phase 6. Contingency, Constr. Phase 7. Parking Reserve 8. Telecommunications Equipment Subtotal Items 4-8 9. Additional University Costs A. Surveys, Tests, Haz. Mat. Abatement B. Move-in Costs C. Printing Advertisement D. Keying, signage, facilities support E. Project Management Cost (2.9066%) F. State Risk Mgt. Ins. (.0034 **) Subtotal Addl. Univ. Costs Total Capital Cost

$

28,500,000

$

$

$

$

$

91,258,000

7,200,000 1,000,000 36,700,000

2,000,000 16,900,000 1,500,000 20,400,000

Phase 3 Project Approval

$

75,000,000

$

4,042,000 95,300,000

$

3,400,000 78,400,000

$

450,000 450,000

$

535,000 535,000

$

1,500,000

$

5,300,000

3,000,000 3,000,000

1,500,000

2,000,000

$

6,000,000

$

4,700,000 7,700,000

$

500,000

$

300,000

$300,000

$ $

1,500 15,000 1,854,370 229,130 2,600,000 65,700,000

104,200 2,789,276 356,524 $ 3,550,000 $ 107,000,000

44,446 2,703,994 266,560 $3,315,000 $96,000,000

* Universities shall identify items included in this category ** State Risk Management Insurance factor is calculated on construction costs and consultant fees.

$

6,450,000 13,750,000

EXECUT TIVE SUMM MARY

Bussiness and Finance Co ommittee M Meeting June 8 8, 2016 Item #3A Page 4 47 of 47