Item IV- USDOE/HBCU Capital Financing Program PRESENTED BY Vice President/CFO Angela M. Poole, CPA Florida Agricultural and Mechanical University September 14, 2016
Summary The University is seeking financing from the U.S. Department of Education (DOE) HBCU Capital Financing Program in an amount of $132,388,460.60 to: (1) refund existing housing revenue bonds in the amount of $71,303,460.60 and (2) issue new debt in an amount of $61,085,000 to construct up to 600 beds to replace Palmetto North The DOE provides HBCUs with low-cost, federally-guaranteed capital to finance improvements to their infrastructure. Specifically, the program provides HBCUs with access to capital financing or refinancing for the repair, renovation, and construction of classrooms, libraries, laboratories, dormitories, instructional equipment, and research instrumentation. 2
Stakeholder Engagement Process Eight Month Process: Campus tour and scope meeting with U.S. DOE and Rice Capital Campus meeting with Chancellor Criser, and the Vice Chancellor for Finance and Facilities to discuss program details Introductory meetings with Ben Watkins, Director of Bond Finance (DBF) On-going communications with Financial Advisor, DBF, BOG, U.S. DOE to provide updates on financial projections Face to face meetings with internal leadership team to discuss feasibility, conceptual plans, etc. 3
FAMU HBCU Bonds Series 2016 Global Refunding and New Money Project Financial Summary Project Summary Dated 09/01/2016 Delivered 09/01/2016 Ref 2010A Ref 2010B Ref 2012A 2010A New Ref 2010B Money Issue Ref Summary 2012A Sources Of Funds Par Amount of Bonds $12,020,000.00 $9,405,000.00 $45,210,000.00 $12,020,000.00 $9,405,000.00 $61,085,000.00 $45,210,000.00 $127,720,000.00 Transfers from Prior Issue DSR Funds 1,213,597.60-3,454,863.00 1,213,597.60 - - 3,454,863.00 4,668,460.60 Total Sources $13,233,597.60 $9,405,000.00 $48,664,863.00 $13,233,597.60 $9,405,000.00 $61,085,000.00 $48,664,863.00 $132,388,460.60 Uses Of Funds Total Underwriter's Discount (1.000%) 120,200.00 94,050.00 452,100.00 120,200.00 94,050.00 610,850.00 452,100.00 1,277,200.00 Costs of Issuance 27,918.85 21,845.00 105,009.29 27,918.85 21,845.00 141,208.13 105,009.29 295,981.27 Deposit to Debt Service Reserve Fund (DSRF) 632,630.63 494,985.15 2,379,402.30 632,630.63 3,214,995.18 494,985.15 2,379,402.30 6,722,013.26 Deposit to Capitalized Interest (CIF) Fund - - - 2,631,745.42-2,631,745.42 - Deposit to Project Construction Fund - - - 54,485,600.00-54,485,600.00 - Deposit to Net Cash Escrow Fund 12,449,539.36 8,795,928.42 45,727,778.56 12,449,539.36 8,795,928.42-45,727,778.56 66,973,246.34 Rounding Amount 3,308.76 (1,808.57) 3,308.76 572.85 (1,808.57) 601.27 572.85 2,674.31 Total Uses $13,233,597.60 $9,405,000.00 $48,664,863.00 $13,233,597.60 $9,405,000.00 $61,085,000.00 $48,664,863.00 $132,388,460.60 4
oney Project Financial Summary 016 PV Analysis Summary (Net to Net) Ref 2010A Ref 2010B Ref 2012A New Money Issue Summary Net PV Cashflow Savings 2,505,586.54 760,800.78 2,505,586.54 1,610,317.10 760,800.78-1,610,317.10 - Contingency or Rounding Amount $12,020,000.00 3,308.76 $9,405,000.00 (1,808.57) $45,210,000.00 3,308.76 572.85 (1,808.57) $61,085,000.00 - $127,720,000.00 572.85-1,213,597.60-3,454,863.00-4,668,460.60 Net Present Value Benefit $2,508,895.30 $758,992.21 $2,508,895.30 $1,610,889.95 $758,992.21 $1,610,889.95 - $13,233,597.60 $9,405,000.00 $48,664,863.00 $61,085,000.00 $132,388,460.60 Net PV Benefit / - Refunded Principal 20.807% 8.899% 20.807% 4.193% 8.899% - 4.193% - Net PV Benefit / - Refunding Principal 20.873% 8.070% 20.873% 3.563% 8.070% - 3.563% - 120,200.00 94,050.00 452,100.00 610,850.00 1,277,200.00 27,918.85 21,845.00 105,009.29 141,208.13 295,981.27 F) 632,630.63 494,985.15 2,379,402.30 3,214,995.18 6,722,013.26 - - - 2,631,745.42 2,631,745.42 - - - 54,485,600.00 54,485,600.00 12,449,539.36 8,795,928.42 45,727,778.56-66,973,246.34 3,308.76 (1,808.57) 572.85 601.27 2,674.31 $13,233,597.60 $9,405,000.00 $48,664,863.00 $61,085,000.00 $132,388,460.60 5
Thank you Questions? 6
Item V- Regulation 4.109 and Establishment of Educational Site at Brooksville PRESENTED BY Vice President Patricia Green-Powell, Ph.D. Florida Agricultural and Mechanical University September 14, 2016
Brooksville Agricultural and Environmental Research Station (BAERS) Introduction In September 2015, FAMU acquired 3,800 acres of land in Brooksville, Florida from the USDA-Agricultural Research Service. The acquisition represents the largest transfer of public land to a historically black landgrant college or university. The long-term goal is to create a Research Station at Brooksville to promote agricultural and natural resource research. Toward this objective, approval of University Regulation 4.109 that would authorize the President to establish an Educational Site at Brooksville is being requested. This regulation is being established pursuant to Section 8.009 of the BOG Regulations. 9
Commitment Brooksville Agricultural and Environmental Research Station (BAERS) The deed restriction requires FAMU to use facility for agricultural and natural resource research for the next 25 years to support and enhance the University s mission, while creating a learning community with a global diffusion of innovation. The development of the Research Station will play a key role in the execution of the University s proposed FAMU Forever Forward Strategic Plan with emphasis on destinations 1,2, and 4: Exceptional student experience High-impact research Alumni, community and business engagement Our work will also contribute to enhancing the State University System s Metric 10A, which is focused on research expenditures funded from federal, private industry and other sources. 10
Brooksville Agricultural and Environmental Research Station (BAERS) Advisory Planning Committee Engaging the local community and other stakeholders is a key part of the University s effort to develop this facility. An Advisory Planning Committee made up of a diverse group of stakeholders has been established. Monica Rainge, Esq., State Coordinator, Federation of Southern Cooperatives Land Assistance Fund (Committee Chair) Ray Mobley, Ph.D., Retired FAMU (CAFS) Associate Professor Ulysses Glee, Ph.D., Managing Member of the Fenton Group Timothy Beard, Ph.D., President of Pasco-Hernando State College Leonard Sossamon, Hernando County Administrator T. Jennene Norman-Vacha, Brooksville City Manager V. Eugene Rooks, Former Coordinator of Research at the University of Florida Institute of Food and Agricultural Science Stephen Leong, Ph.D., Associate Dean of Research, FAMU (CAFS) Robert Taylor, Ph.D., Dean and Director of Land-Grant Programs, FAMU (CAFS)- Ex-Officio 11
Brooksville Agricultural and Environmental Research Station (BAERS) Key Updates Secured an account with the FAMU Foundation, Inc. to receive contributions Developed a student engagement model Developed a faculty engagement model Developing a BAERS strategic plan that aligns with the FAMU Forever Forward Strategic Plan, to be completed by 12/2016 Hosting a Brooksville Community Forum (10/10/2016) Hosting a Brainstorming Session with 1890 Presidents (11/1/2016) 12
Brooksville Agricultural and Environmental Research Station (BAERS) Short-Term Projected Activities 2016-2017 Activities Develop a Master Land Utilization Plan Complete Employment of Management Team Install Communications, Utilities and Technology Network Launch Beginning Farmers and Ranchers Program Identify and apply for External Funds 13
Brooksville Agricultural and Environmental Research Station (BAERS) Short-Term Projected Activities and Timeline (Continued) Activities Timeline Employ Research Faculty 2017-18 Launch Extension Programs 2017-18 2019-20 - 4-H Youth Development (K-12) - Family and Consumer Science - Community Resource Development Promote and Facilitate Faculty and Graduate Student Research 2017-18 2018-19 Continue to Secure Appropriate Budget 2017-18 2020-21 14
Brooksville Agricultural and Environmental Research Station (BAERS) Thank you for your support and interest! 15
Item VI Campus Master Plan Update PRESENTED BY Associate Vice President Sameer Kapileshwari Florida Agricultural and Mechanical University September 14, 2016
Master Plan Update The development of the FAMU Master Plan Update is a requirement pursuant to Subsection 1013.30 (9) F.S. The Final Master Plan and Supporting Inventory and Analysis documents are used to determine necessary facility requirements, building placement and proposed campus expansion to support the proposed student enrollment. The 2010-2020 FAMU Master Plan has been completed. As part of that update, all 18 master plan elements were included, and data were collected where available. Currently, the master plan is going through the five-year intermediate update. We request approval to initiate the first of two public hearings and required notice announcing the 90-day review period by the Host Community (city of Tallahassee) and other State agencies as required by F.S. and Board of Trustees Policy Number 2005-07 17
Master Plan Update To date, we have completed the following phases: Phase I Evaluation Phase II Inventory and Analysis President s Vision and Senior Leadership input Campus development agreement (two year extension) Underground utility analysis Phase III Conceptual Design Phase IV Preliminary Master Plan (in conjunction with Steering Committee) Phase V Draft Final Master Plan We have completed over 20 visioning sessions with stakeholders and stakeholder groups including academic, research, auxiliary, sustainability, student affairs, and also student government and alumni. Simultaneously, we are developing the programming worksheet and validating it against our proposed Capital Improvement Plan (CIP). 18
Master Plan Update The following is the tentative schedule with the goal of completing the final master plan by end of the year: September 2016 Final Master Plan Presentation to Board of Trustees (action item - approval to initiate agency review, public hearings, and CDA) Informal Public Information Session Open House (per Florida Statutes) First Public Hearing (per Florida Statutes; advertisement in local newspaper) Submit Draft Master Plan to Host Community + State agencies (per Florida Statutes; 90 days for review, advertisement in local newspaper) December 2016* Second Public Hearing / BOT Meeting to Adopt Campus Master Plan (per Florida Statutes) * Contingent upon Host Community + State Agency review concluding earlier 19 than the 90 day review period authorized per Florida Statute
Master Plan Update Adopted Campus Master Plan 2010-2020 20
Master Plan Update Campus Master Plan Update 2015-2025 Future Land Use Map 21
Master Plan Update Campus Master Plan Update 2015-2025 22
Thank you Questions? 23
Item VII- Major Project Update PRESENTED BY Chief of Staff Jimmy Miller Associate Vice President Sameer Kapileshwari Florida Agricultural and Mechanical University September 14, 2016
Center for Access and Student Success (CASS) The proposed project will consist of the construction of a 72,000 grosssquare-foot facility that will house the new Center for Access and Student Success or CASS. This multipurpose building will house, among other things, Recruitment, Admissions, Financial Aid, Registrar, Student Accounts, Center for Disability Access and Resources, Undergraduate Student Success Center, computer labs, study space, and student meeting space. 25
Center for Access and Student Success (CASS) Cost: $36,292,879 2014-15 -PECO $6,155,000 2015-16 -PECO $6,500,000 Balance Needed: $23,537,879 (Included in the Capital Improvement Program CIP request 2017-18) Current Status: $2M allocated for Professional Fees $10.6M allocated for Preconstructions, Demolition, Site work Schedule: Demolition October 2016 Site work November 2016 Structural Work January 2017 26
Pharmacy Phase II Project Status: Substantial Completion Date July 22, 2016 Substantial Completion punch list items are being addressed Owner Purchased Equipment is being ordered 27
Acquisition of Foundation Building In June 2016, the Board approved for staff to move forward with due diligence for building transfer option. If determined through the search and other means that we should not move forward, then the process would cease. Upon due diligence and after review of the Building Condition Assessment report provided by ISES Corporation, staff has concluded that it is not cost effective to move forward with the acquisition at this time. 28
Public-Private-Partnership (P3) P3 Goals and Objectives Attract and retain the best students and faculty Improve the campus infrastructure with a combination of financing options Identify qualified Private Party or Private Parties to design, develop, construct, and finance the project 29
Public-Private-Partnership (P3) Project Scope Phase 1: Student Housing: Redevelopment of Cropper Hall, Wheatley Hall, and Jackson-Davis, Truth Hall Building Completion before July 15, 2018 Phase 2: Development of a Mixed-Use Town Center: North side of campus near Old Developmental Research School (DRS) Completion before July 15, 2019 30
Public-Private-Partnership (P3) Old Developmental Research School (DRS) Project Sites Pentaplex Complex (Wheatley, Cropper, and Truth Halls) (P3)Project Sites 31 31
Public-Private-Partnership (P3) Systematic Approach to Selection of Private Partner Request for Qualifications to qualify partner Two stage ITN process Evaluation Committee to evaluate responses from Qualified Respondents to develop a short list of three or four Qualified Respondents Negotiation Committee to negotiate terms and conditions of P3 agreement with one or more Qualified Respondents Each project phase will be evaluated and negotiated separately Best and Final Offer (BAFO) from shortlisted Qualified Respondents Select BAFO and submit BAFO to the Board of Trustees for approval Submit BAFO to the Board of Governors for approval 32
Public-Private-Partnership (P3) 1. Conducted strategic, transparent, and inclusive process Over one year of due diligence 5 BOT Meetings (July 2015 September 2016) Early engagement with Board of Governors staff Engagement with internal stakeholders (Leadership, Finance, and Administration, Housing, Auxiliaries, Athletics, Academic Affairs) 2. Systematic approach to selection of Partner 2-stage procurement process Qualifications stage ITN stage 3. Secured industry leading consultants Jones Lang LaSalle 33
Public-Private-Partnership (P3) Overview of Procurement Process STAGE I SCHEDULE Release of ITN July 18, 2016 Stage I Site Visit July 29, 2016 Deadline to Receive Respondent Questions/Inquiry August 5, 2016 Addendum Posted with Answers August 12, 2016 Stage I ITN Responses Due September 7, 2016 Short Listing and Posting of Qualified Respondents September 14, 2016 STAGE II SCHEDULE Stage II Documents to be Issued September 19, 2016 Qualified Respondents Meeting on Site September 26, 2016 Stage II Responses Due October 19, 2016 Presentations and Discussions October 24, 2016 Negotiations with Qualified Proposers October 31, 2016 Best and Final Offer (BAFO) Responses Due November 4, 2016 34 BAFO Evaluations and Ranking November 14, 2016
Public-Private-Partnership (P3) Overview of Evaluation Process Evaluation Committee Genyne Boston, Ph.D., Academic Affairs Thomas Alexander, Student Affairs Craig Talton, Facilities Planning and Construction Kendall Jones, Plant Operations and Maintenance Rebecca Brown, Auxiliary Services Timothy Moore, Ph.D., Research (Jones Lang LaSalle will continue to be retained for consultation and advice) Negotiation Committee Jimmy Miller, Chief of Staff Angela M. Poole, CPA, Vice President/CFO Timothy Moore, Ph.D., Vice President 35
Public-Private-Partnership (P3) Overview of Evaluation Criteria STAGE I Evaluation Criteria Design Narrative and Project Planning 10 Respondent Experience and Qualifications 35 Team 25 Financial Terms 30 Stage I Response Point Total 100 STAGE II Evaluation Criteria Design and Construction 30 Respondent Experience and Qualifications 10 Team 25 Financial Terms 35 Stage II Best and Final Offer Point Total 100 36
Public-Private-Partnership (P3) Not in Project Scope The Center for Access and Student Success building, located at McGuinn and Diamond Halls, is being funded with PECO funds Athletics Facility this project will be addressed in a later phase 37
Thank you Questions? 38
Item VIII- Realignment of Facilities and Staffing Roles PRESENTED BY Chief of Staff Jimmy Miller Vice President/CFO Angela M. Poole, CPA Associate Vice President Sameer Kapileshwari Florida Agricultural and Mechanical University September 14, 2016
Item VIII- Realignment of Facilities and Staffing Roles The need for realigning of the Division of Facilities Planning,, Construction and Safety due to the complexity and size of the development projects now being undertaken with private funding sources such as the Public-Private-Partnership Program in addition to those funded by the traditional private and public sources Realignment would create a newly named Division of Capital Planning & Facilities Management that will include two new areas: 1) Real Estate Finance and Development; and 2) Design and Construction Skill sets needed for the new areas include financial feasibility analyses, cash flow analyses, and net present value analyses, along with capital planning, architectural, and project management capabilities Realignment will occur with no additional cost to the University This temporary change will allow the VP of Finance and Administration to focus his/her efforts on restructuring the financial oversight and management of the University and developing a comprehensive enterprise information technology plan 40
Facilities and Staffing Roles Current Structure Associate Vice President Facilities Planning Construction and Safety Sameer Kapileshwari Executive Director Facilities Planning and Construction Director Plant Operations and Maintenance Director Environmental Health and Safety Director Multi Purpose Facilities Events Projects and Planning Grounds Maintenance Code Compliance, Building Code Fire Code, Accident Prevention Events & Moves Business Affairs Building Maintenance, Key Bank and Service Response Research Support, Chemical/Laboratory Radiation/Laser, Mold, Asbestos & Lead Paint Lee Hall Auditorium IT Building Services Environmental Compliance, Storm Water Fuel Storage Tank, Hazardous Waste Lawson Center Human Resources Utility Maintenance Recycling & Universal Waste 41
Restructuring of Facilities Planning and Construction to Capital Planning & Facilities Management Vice President Capital Planning & Facilities Mgt Assistant VP Planning, Design & Construction Director Design & Construction (University Architect) Director Facilities Planning Director Real Estate Finance & Development Associate VP Facilities Management Director Plant Operations Director Environmental, Health and Safety Director Multi-Purpose Facilities Event 42
Delineation of Functions Between Finance and Administration and Capital Planning and Facility Management These two divisions work closely together, as all major and minor projects have a direct impact on the financial position of the University. Below are some examples of the interconnectivity between the two divisions. Finance and Administration Ensuring compliance with State Debt Management Guidelines Capital Planning and Facility Management Providing project-related information such as construction cost, plans and specifications, and construction draw schedules Providing oversight and financial management Ensuring compliance with BOG P3 Guidelines, selecting financial advisors and bond counsel (in conjunction with Legal), ensuring compliance with University, BOG and State Debt Management Guidelines and the State and, the University Procurement requirements; assisting with the negotiations of the terms of the P3 agreement Ensuring that all enterprise systems are consistent and integrated with University operating requirements Overseeing procurement and ensuring compliance with applicable State and University procurement requirements Providing oversight and financial management Establishing budget accounts and purchase orders, approving and processing invoices, and transmitting payment to vendors Determining capital needs for the University and preparing CIP and CITF Developing Public-Private-Partnership proposals and preparing ITN and selection Private Partners Managing inventory and invoicing data bases such as AIM Procuring vendors to provide services to the Division and the University Preparing annual request for POM Serving and construction and project manager for major and minor projects 43
Thank you Questions? 44