TITLE. Subtitle. Finding Funding Synergies for Facilites Capital Projects
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1 TITLE Subtitle Finding Funding Synergies for Facilites Capital Projects
2 Assistant Vice-President Facilities Management Dalhousie University Presenters Nuha Himmo Acting Associate Director/Senior Project Manager Facilities Management and Ancillary Services Keith Hollands Associate Director, Design & Technical Services, Planning and Project Delivery, Facilities & Operations Jeff Lamb Assistant Vice-President Facilities Management 2
3 Overview University of Alberta Law Centre Redevelopment University of Alberta Agra Foods Discovery Place Dalhousie University Life Science Complex McGill University - CERC Green Chemistry 3
4 Introduction Partnering with Philanthropic Funds Law Centre Redevelopment Partnering with Research Support Funds 4
5 Partnering with Philanthropic Funds Law Centre Redevelopment Project Introduction Building circa early 70 s Original design 2 level library space Renewal scope to renovate main floor into new classroom space 5
6 Partnering with Philanthropic Funds Law Centre Redevelopment Project Analysis Less than 10% Facilities Deferred Maintenance funds 10% from Faculty Operating funds 80% Philanthropic Donations 6
7 Partnering with Philanthropic Funds Law Centre Redevelopment Project Analysis Resulted in Modernization of significant portion of main floor Project cost include deferred maintenance in the area (Arch., Mech., Elec.) 7
8 Partnering with Philanthropic Funds Law Centre Redevelopment Project Challenges Early work with Faculty & Advancement to help cast vision for redeveloped space Help sell the project to donors When Donors are involved standards may be relaxed 8
9 Partnering with Research Support Funding Introduction The Research Support Fund assists Canadian Postsecondary institutions with the costs associated with managing their research enterprise, helping them maintain a world class environment. 9
10 Partnering with Research Support Funding Introduction Eligible Expenses Renovations and Maintenance of research facilities Upgrades and maintenance of research equipment and other devices Operating costs Technical support for laboratories, offices and facilities 10
11 Partnering with Research Support Funding Ineligible Expenses Introduction Purchase or Construction of Building Purchase of Laboratory Equipment Purchase or Lease of Land Purchase of Furniture 11
12 Partnering with Research Support Funding AFDP Building Upgrade Project Introduction Building opened 2004 upgrade 2009 Original construction had limitations adding maintenance challenges Scope of project added new Air Handlers and exhaust, removing from taxed main systems 12
13 Partnering with Research Support Funding AFDP Building Upgrade Project Analysis 40% Facilities Funds 60% Research Support Funds Results: increased reliability of base systems by operating at lower rate 13
14 Partnering with Research Support Funding AFDP Building Upgrade Challenges Need to Lobby Central University to get portion of RSF funds Minor Reporting Requirements Controlling the knowledge of Funding, everyone wants their hands in the pot 14
15 University of Alberta Conclusions Collaboration with Faculty for setting vision for renewals of space allows Fund raising partnering adding to the creation of renewed spaces, reducing differed maintenance. Value of understanding what funding sources come to the University and what eligible expenses are permitted by funding agency 15
16 Life Sciences Centre (LSC) Renewal Initiative 16
17 LSC Renewal Initiative In 2008, LSC was a 37 year sold, 450k sq. ft., multi-towered, concrete labyrinth that housed Biology, Oceanography, Psychology and Earth Sciences research and teaching facilities. DM backlog: $43.4M 17
18 LSC Renewal Initiative Since that time over $90M have been invested in the building including the addition of 76,000 sq. ft. of new gross building area. 18
19 LSC Renewal Initiative How did we leverage a multitude of funding sources to accomplish this? 19
20 Phase 1 Energy Service Contract (ESCO) JCI Offer to conduct Ideation. Shopping List of Facility Improvement Measures developed in concert with Facilities Management (FM) and occupants. Objective to deal with Deferred Maintenance (DM) and energy waste by using an extended payback of energy savings. 20
21 Phase 2 Knowledge Infrastructure Program (KIP) With the KIP announcement, Province determined Dal s share of the pie. Energy Savings provided some of the matching funds, so Provincial contribution minimized. ESCO shopping list was cut off at the available KIP funding line. Rapid implementation of KIP spending by using Design- Build approach to ESCO RFP. KIP work underway September, 2009 and completed May,
22 Phase 3 Canada Excellence in Research Chair (CERC) Addition/Renovation CERC competition in Attract Nobel quality researchers to Canadian Institutions and house them by Plan to add space for specialized ocean container handling bay and renovate existing space for oceans research to accommodate 78 people. Space audit had been conducted to identify underutilized space for renovation in 2009 as part of KIP. 22
23 Phase 4 Ocean Sciences Building Short time frame for accommodating the CERC and lack of adjacencies of underutilized space within LSC to be renovated Decision made to build all new space for CERC Decision to maximize building volume within municipal zoning regs, so two floors of shelled space added Sources of funds included CERC grant, Strategic Initiatives Fund, Energy Savings, Multi-year Facilities Renewal Budget contribution 23
24 Phase 5 Trojan Tanks Commercial opportunity identified to add research tanks to Aquatron at an estimated cost of $2.3M To be funded by commercial partner and NSBI 24
25 Phase 6 Wallace McCain Learning Commons $6M donation to fill in the donut hole. 25
26 The Complete Project Funding Sources: ESCO KIP CERC Dal Funding CFI Commercial Donor 26
27 The Interim Results $37.4M Expenditure on an original $20M budget. 76,000 sq. ft. of new construction with 18,000 sq. ft. of unfinished space for future development. Unused Trojan tanks. Relocated and delayed Learning Commons. New governance structure for capital projects. 27
28 Phase 7 Annual Renewal Due to the size of the building, a commitment was made $1M per year to continue to reclaim underused space and address DM $7.0M of projects: 5 th and 6 th floor Renovation ($1.8M), Loading Dock Renovation ($800k), Psychology Renewal Project ($1.5M), and Classroom Renewal ($2.5M). 28
29 Phase 8 Canda First Research Excellence Fund The total of the CFREF application is estimated to be $10.6M. 10,500 sq. ft. to be developed at $5.2M estimated cost. 29
30 Final Outcome LSC Full Energy Retrofit on 1960s energy waster saved over $1.0M in utility costs and reduced Dalhousie s ecological footprint by over 6,000 tonnes of CO 2 emissions annually LSC Significant upgrades to Ocean Research infrastructure, a high institutional research priority, as well as other teaching and research space within the building SOSB New Ocean Research infrastructure added including shell space for future ventures 30
31 Conclusions Collaboration with Faculty for setting vision for renewals of space allows fund raising partnering adding to the creation of renewed spaces, reducing deferred maintenance. Value of understanding what funding sources come to the University and what expenses are permitted Be flexible and open to opportunities: It is possible to leverage one source of funding to attract another in unexpected ways. Commercial requirements may conflict with institutional capabilities. Beware arbitrary deadlines Shell space fit-up costs may seem too rich to future researchers. 31
32 Project Scope 32
33 Green Chemistry CERC 33
34 Project Context McGill is acknowledged to be a leader in Green Chemistry Attracted and recruited world-renowned green chemist as the CERC chair and team of researchers and support staff Re-design chemicals and materials and develop new green manufacturing technologies Create state of the art laboratories and chemical instrumentation 34
35 Project Scope Renovate 1200 square meters of lab and support space within two connecting buildings dating back to 1927 (Pulp and Paper) and 1966 (Otto Maass) 35
36 Project Scope Extension for new mechanical penthouse 36
37 Project Scope Rebuild the exterior walls of the Mill wing to create a building envelope suitable for state of the art lab environment 37
38 Project Funding Funding for research (Opportunity) CERC Total $10,000,000 $10,000,000 Funding Source For Renovations PSRv2 % DM % Total $9,200,000 40% 13,620,000 60% $22,820,000 Funding Source For Equipement Quebec % CFI % Total $800,000 50% 800,000 50% $1,600,000 38
39 Synergies The project offers an opportunity for the University to bring the entire building up to modern standards. Replace obsolete ventilation and air distribution systems. Increase ventilation capacity will be required to support both the new CERC laboratories and the rest of the building. Perform electrical power upgrades and fire protection upgrades to meet modern codes and standards. 39
40 Conclusion The project was initiated at facilities in march 2013 Initial scope; renovate laboratory space for Green CERC; Scope increased as project advanced; Challenges of working in existing aging facility with obsolete systems Challenge of working in occupied buildings Work in close collaboration with the clients and other stakeholders Construction is around 65% complete Leverage opportunities to create a more sustainable environment and energy savings (LEED - CI Silver candidate) 40
41 Lessons Learned Know what funding comes to your University - Dig and dig some more to know what you can tap into. Ensure the Facilities representative that is regularly in discussion with the faculties is looking and suggesting partnerships. Ensure that a formal risk management approach is being utilized throughout the process. Alignment of funding deadlines for different funding sources Understand funding breakdown categories 41
42 Questions? 42
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