Population Health Facility (PHF): Stage 2 Approval Project Budget and Funding Plan

Transcription

1 STANDING COMMITTEES F 6 Finance and Asset Management Committee Population Health Facility (PHF): Stage 2 Approval Project Budget and Funding Plan RECOMMENDED ACTION It is the recommendation of the administration and the Finance and Asset Management Committee that the Board of Regents approve the full project budget and funding plan for the Population Health Facility. BACKGROUND In November 2016, the Board approved Stage 1 of a Population Health Facility intended to serve as a powerful catalyst for the University s new Population Health Initiative and be a new nexus for Population Health research, teaching, and innovation in our region and globally. In May 2016, the Board selected the site along 15 th Avenue as the site for this new building, and the design has progressed successfully with the guidance of the University Architectural Commission. As we prepare to begin clearing the site and excavating for construction, we are now seeking Stage 2 approval, which will authorize the full project budget and funding. Attached is additional information about the project. NAMING PLAN The Population Health Facility was made possible by a significant contribution from the Gates Foundation. Per the gift agreement, the Gates Foundation will work with the University to establish a name for the building. The name is subject to Board of Regents naming policy and will require future approval by the Board. The following is an excerpt from Board of Regents Governance, Regent Policy No. 6, Facilities and Spaces Naming Policy: Buildings or outdoor areas or spaces may be named for a person, or family, associated with the University community who has rendered distinguished service to the University or who has made a significant contribution to society, or for a donor to the University whose gifts represent a "substantial contribution" toward the project cost, provided that the individual or family or donor has a prominent relationship with the University and/or the region, with a positive image and demonstrated integrity. In the event of changed circumstances, the University reserves the right, on reasonable grounds, to revise the form of or withdraw recognition. F 6/201-18

2 STANDING COMMITTEES Finance and Asset Management Committee Population Health Facility (PHF): Stage 2 Approval Project Budget and Funding Plan (continued p. 2) Final decision to name buildings and outdoor areas and spaces rests with the Board of Regents, upon recommendation of the President. Attachments 1. Population Health Facility Project Summary 2. Population Health Facility Project Background 3. Population Health Facility Site Plan and Rendering F 6/201-18

3 Population Health Facility Stage 1 Actions: November 2016 Stage 1 Action: May 2017 Regent Actions Approved pre-construction budget Delegated authority to award design build contract Approve site Stage 2 Actions: January 2018 Approve full project budget & funding plan Proposed Budget Objectives 1. Foster collaboration and connectivity among those working within the facility, other programs and researchers at the UW, local and global partners, and students; 2. Promote healthy living within and around the new facility; 3. Design space that is flexible and adaptable to meet the evolving needs of the Institute of Health Metrics Evaluation (IHME), the Department of Global Health (DGH), and selected portions of the School of Public Health (SPH); 4. Employ best practices in sustainable building to reduce energy and water use, lower life cycle costs, and improve occupant satisfaction and health; Description The new facility will create space for ongoing collaborative interactions among IHME, DGH, selected portions of SPH, students and faculty from six schools in Health Sciences; and the rest of the University. The goal is to create interdisciplinary innovation in Population Health and the investigation of the biomedical, social behavioral, cultural, environmental, and physical factors affecting the health of populations across the globe. The program will include offices, collaborative group work rooms, active learning environments, and technology rich spaces to accommodate data visualization and on-line interactive global teaching and training. Financials Proposed Funding Consultant Services $ 17,268,393 8% ILP Debt Funds $ 0% Construction Cost $ 188,776,253 82% Donor Funds* $ 210,000,000 91% Equipment and Furnitu $ 11,911,719 5% UW Central Funds $ 5,000,000 2% Other Costs $ 5,260,995 2% State Funds 15,000,000 7% Project Management $ 6,782,640 3% Departmental Funds $ 0% Escalation $ Other $ 0% Total Project Cost $ 230,000, % Total Funds $ 230,000, % *Disbursed annually per agreed upon schedule Benchmarks University of Washington Mackenzie Hall Feasibility Study: $475/SF Construction & $689/SF Project Stanford Benchmark Average: $583/SF Construction & $788/SF Project Commercial Office Benchmark: $ /SF Construction & $500-$643/SF Project - Project data from 6 regional construction firms for class A office space in South Lake Union, Seattle Metrics & Indicators Current Targets Current Targets Net Assignable SF 137, ,000 Construction Cost/GSF $651 $629 Gross SF 290, ,000 Project Cost / GSF $793 $767 Efficency (NASF/GSF) 47% 60% Operating Costs/GSF $12.22 $12.22 Schedule Qtr 1 Qtr 2 Qtr 3 Qtr 4 4/2016 Planning Team Development 1/2017 2/2017 3/2017 4/2017 Design 5/2018 8/2018 Construction 5/2020 Move In 5/2020 7/2020 F-6.1/ ATTACHMENT 1

4 Population Health Facility Project Background The new facility will serve as a powerful catalyst for the University s Population Health Initiative; and be a nexus for Population Health research, teaching, and innovation in our region and globally. It will house the Institute for Health Metrics and Evaluation (IHME), the Department of Global Health (DGH), and portions of the School of Public Health (SPH). By bringing these units together, the University will create stronger links across undergraduate and graduate programs in schools, colleges, and academic units that are central to realizing the vision of the Initiative. One of the UW s great strengths is the breadth of educational opportunities and research across campus. The Population Health Initiative, buttressed by this new facility, will benefit from and, in turn, deepen this exceptional breadth of interdisciplinary, collaborative education and research. Key to our vision is engaging students and faculty in fields related to reducing health disparities and addressing health impacts. Budget Control The Population Health Facility project-delivery team is dedicated to the practice of Target Value Design (TVD). During the Project Definition phase, the team physically toured local projects (both public and private) and virtually toured other similar building-types. Based on this, the team developed benchmark information that corresponds to the project objectives, and used that information to create detailed target values for each of the building systems and components. The team is now responsible for designing within these target values. Fundamentally, cost becomes an input into the design process rather than an outcome of it. TVD necessitates maintaining real-time cost estimates as design and construction proceed so scope decisions can be made quickly. Throughout the design and construction phase, the team is striving to reduce costs by developing innovative solutions. With these savings, additional scope will be added to the project. Project Schedule A desire to expedite the Population Health Initiative, coupled with growing needs for program space and high market-escalation, motivated the team to set an aggressive schedule for the project, even as compared to private developer models. The team has successfully mitigated several potential schedule impacts and is on schedule to submit for the building permit. Unfortunately, the City of Seattle s turnaround times for permit review appear to be worsening, so we are monitoring this carefully and working to mitigate schedule impacts to UW operational expenses, the project budget, construction quality, and safety. Business Equity A detailed business equity procurement plan is being developed. The primary trade and consultant partners are already contractually committed to achieving the 10% business equity participation goal and the team is analyzing opportunities for inclusion with the rest of the project scope. We will manage the business equity performance as we do other critical project metrics like risk, budget, and schedule. Naming Plan The Population Health Facility was made possible by a significant contribution from the Gates Foundation. Per the gift agreement, the Gates Foundation will work with the University to establish a name for the building. The name is subject to Board of Regents naming policy and will require future approval by the Board. F-6.2/ ATTACHMENT 2

5 Population Health Facility 15th Ave. NE Site Plan 15th Ave. NE and NE Grant Lane F-6.3/ ATTACHMENT 3