08-30-95 Trustees: Building Projects, Other Business OHIO STATE SEEKS BUILDING FUNDS, ACTS ON OTHER PROJECTS COLUMBUS -- The Ohio State University Board of Trustees Wednesday (8/30) voted to request state funds for eight building projects. The board also voted to seek bids to construct a baseball stadium and renovate hospital radiology and agricultural greenhouse facilities, and accepted contracts for construction of a park. Eight projects targeted for state funding Trustees approved eight projects totaling $99.2 million for inclusion in the university's capital request for the 1997-98 biennium. The request is due to the Ohio Board of Regents by Sept. 15. Ohio State is seeking state funds for the following projects, listed in order of priority: 1. College of Business, phase two, $24 million. 2. Food Science & Technology Building, $9.9 million. 3. Life Sciences Building, $21.7 million. 4. Physical Sciences Building, phase one, $4 million. 5. Planning funds for renovating Hagerty Hall, $1 million. 6. Replacement of Sisson Hall, $16.2 million. 7. Knowlton School of Architecture, $9 million. 8. Heart and Lung Institute, $13.4 million. "These recommendations reflect a significant effort to improve the quality of our physical environment within available resources," said Richard Sisson, senior vice president for academic affairs and provost. We feel our recommendations are consistent with the University's academic priorities in support of teaching, research and public service. They are also consistent with our financial goals of maximizing the effective use of existing space." Sisson said the recommendations represent the culmination of a year-long effort that involved extensive consultations with the fiscal committees of the Board of Trustees and University Senate, and deans and vice presidents. "For the first time in recent history, preliminary recommendations were shared with the board and the campus community in May, well before a final decision was reached." Change in funding could affect building projects Changes in the state's method of funding public higher education construction projects could affect the timing of some current building programs at Ohio State. University officials are working with the state to successfully complete them. Of eight projects sought in the next biennial budget, five received initial funding for planning or construction in the state's current biennial capital funds budget. According to William J. Shkurti, vice president for finance, some of those projects could be affected by what he calls "the most sweeping changes in capital funding since voters approved state-funded higher education bonds in 1968." Shkurti said that under the old system, all state- financed capital projects at universities were funded from a central pool of money. Once the projects were approved through the state's biennial capital appropriations process, retirement of the construction debt was financed by the state's General Revenue Fund. Operating costs for the buildings were then automatically added in the instructional subsidy each university receives from the state. "The Regents feel the funding system has led to over- building on many campuses because these projects were treated as free goods by the institution and by elected officials," Shkurti said. As a result, the Regents and the state universities agreed to modify the subsidy formula so that operating costs for additional space were no longer automatic. Now the Regents plan to charge the cost of debt service for each building directly to a capital allocation for the respective campus. If a campus spends more than its allocation, the university would have to provide the additional funds. If a campus spends less, the remainder could be used for related equipment or renovations. Individual projects will still require state approval. "Ohio State supports taking on more direct responsibility and control over the university's capital decisions." Shkurti said. However, he added, the Regents' proposal does not provide a procedure to continue state- funded projects already begun under the old system. At Ohio State, those projects include business, food science, life sciences and architecture buildings and the Heart and Lung Institute. "We will meet all our commitments to our donors and will work with the Regents to facilitate this," Shkurti said. "A transitional mechanism is needed for these projects because the ground rules have changed." The funding formula proposed by the Regents would provide Ohio State's main campus with 22.4 percent of the state-wide total for higher education projects in the state, Shkurti said. "If this 22.4 percent is applied to the $400 million distributed two years ago, Ohio State would receive $89 million. This would be enough to fund all our requests except the Heart and Lung Institute." However, Shkurti said that the Regents have indicated an intent to request a minimum of $300 million for all projects. If the Regents distribute only $300 million, Ohio State's share would fall to $66 million. That would not be sufficient even to complete the five projects already approved by the state. Ohio State officials also maintain that universities should not be charged for so-called "community projects" such as city art museums and regional sports facilities. In the past, the Ohio General Assembly included projects such as the Toledo Convention Center and the Rock and Roll Hall of Fame in capital improvement funds assigned to nearby universities. Shkurti said that if Ohio State pays the bill for its projects, the Regents and state political leaders should not be able to alter the university's capital priorities. The state also should allow universities, rather than the state, to administer the projects. Otherwise, universities will have to pay for project delays caused by the state. Currently, universities can only administer projects below a certain dollar amount. Ohio State already has established mechanisms to help ensure wise use of space in its internal budget and planning systems, Shkurti said. These include placing a greater emphasis on rehabilitation and replacement instead of new construction and sharing costs with units that request projects that increase operating costs. Ohio State to renovate, replace space Shkurti also reported that, despite its size, Ohio State has less building space per student than some other public Big Ten universities. He noted that assignable square feet per student is 14 percent below the median for such institutions, and physical plant costs are 34 percent below the median. However, Ohio State needs to improve its use of departmental classrooms and the condition of classrooms and laboratories -- many of which have been victims of years of delayed maintenance. In addition, Shkurti said faculty and staff must learn to view space as a limited, or scarce, resource rather than as an entitlement. To that end, building space will be an element of future incentive-based budgeting plans for colleges and offices. Ohio State is budgeting more money for repair and renovation of existing space, and intends to place lesser emphasis on new construction in the years ahead. To help offset operating costs, when new buildings are completed, all or parts of some of the old buildings being vacated are to be demolished. Other goals are to place limits on the amount of additional space available and to reduce long lead times in planning new facilities. Shkurti said the net operating cost impact of the capital recommendations will be close to zero in the next two to four years. Baseball stadium, radiology and greenhouse projects Trustees authorized campus officials to request construction bids for a new 3,000-seat baseball facility, to be called the William C. Davis Baseball Stadium in memory of the son of Dorothy M. Davis of WESTERVILLE and the late William H. Davis. The $3.48-million project will be paid for in part by a gift of $1.5 million by Dorothy Davis and the William H. Davis, Dorothy M. Davis and William C. Davis Foundation. The balance of funds will come from other gifts, unused bond proceeds, and the Department of Athletics. The Davises have been major benefactors of Ohio State, having contributed funds for the creation of the Dorothy M. Davis Chair in Cancer Research, the William H. Davis Endowment for Basic Medical Research, and the William H. Davis chair in the American Free Enterprise System. William H. Davis earned a Bachelor of Science degree in business administration in 1926. The new facility will include dugouts, locker rooms, a press box, concession and vending areas, security, and first aid areas. It will be constructed southeast of Trautman Field, the baseball team's current home, with access from Fyffe and Olentangy River roads. Trustees also authorized officials to seek construction bids for improvements to the Howlett Hall Greenhouse and for the second-phase renovation of the University Hospitals' Radiology Department. The Radiology project will involve renovating about 12,000 square feet of space on the second floor of Rhodes and Doan Halls, continuing the renovation of diagnostic support service areas and improving patient services in the CT scan and ultrasound areas. The total estimated project cost for the second phase is $1.7 million with construction estimated to cost $1.3 million. University Hospitals will provide the funds. The Howlett Hall project, estimated to cost $1.1 million, includes renovating the existing facilities with provisions for a new pesticide storage area, floors, and improvements of cooling, electrical, water and computer systems. The state is funding the project. Contracts approved for Bloch Cancer Survivors Plaza In addition, trustees approved contracts for constructing the Richard and Annette Bloch Cancer Survivors Plaza at the northeast corner of Lane Avenue and Olentangy River Road. The Blochs contributed $1 million toward the plaza, which will include sculpture, walls, seating areas, new walkways, an open one-story structure with a fountain and an interactive computer containing names of cancer survivors. The park will be accessible from a walkway to the Fawcett Center and have six parking spaces. The university is picking up the remaining part of the $1,317,805 price tag. Work is to be finished in December. Contractors are Gutknecht Construction of Columbus, general, $782,400; and Romanoff Electric, Columbus, electric, $123,890. The project includes a contingency allowance of 5 percent of construction cost. University emphasizing focus on students Sisson and Associate Provost Robert Arnold reported on the status of the recommendations made by the Committee on the Undergraduate Experience (CUE). The CUE recommendations will complement and mesh with a comprehensive academic plan that will continue through the year 2002. Highlights mentioned were: In the area of safety and transportation: -- Campus Partners will work to reduce the number of bars on south campus. -- Ninety-two new emergency phones will be installed on campus. -- A wellness program director will be hired to assume leadership for alcohol/substance abuse education. -- Two hundred new bike racks will be installed, with Larkins Hall, and Lincoln and Morrill Towers to receive extra racks first. In the area of academics: -- Student orientation, welcome week and the University College survey course will be restructured to include a more academic slant. -- Clustering of students with similar academic interests will be tried. Initially, there will be nine clusters, each containing 25 to 30 students enrolled in engineering, agriculture, humanities, or University College. -- New computing services in University College will facilitate advising. -- An award will be created to reward departments for overall excellence in teaching. In the areas of reducing bureaucratic runaround: -- A student advocacy center has been opened. -- A 64-page departmental listing will be included in the student directory. Report: Employees like jobs, less happy with bureaucracy Trustees heard a preliminary report in the Educational Affairs Committee on the university's Faculty and Staff Attitude Survey. The report indicated that faculty and staff generally are satisfied with their jobs and with the university's working environment. Sponsored by the offices of Academic Affairs and Human Resources, the survey polled more than 800 faculty and 700 staff. Overall, faculty and staff "like what they do, where they do it, and the people they do it with," the report said. Faculty and staff like least the administrative bureaucracy and certain aspects of pay. The survey results are scheduled for future analysis and consideration by vice presidents, deans and chairs. The sponsoring offices also will conduct future forums with faculty and staff groups for further consideration. Other business In other matters, trustees: -- Heard from senior vice provost Edward Ray, who announced that Ohio State should realize an annual rate savings of $8.3 million and cash savings of $20 million from the early retirement incentive program for faculty. Ray attributed that to delayed and staggered replacement of senior faculty positions with mostly assistant professors at lower entry-level salaries and the elimination of 58 faculty positions. All of the savings will be retained within the colleges that generate them to be used to redesign and renew academic programs. -- Authorized the Department of Mathematics to fill up to 12 visiting assistant professor positions under the title of Hans J. Zassenhaus Assistant Professor. Trustees said the positions, named after a professor emeritus in the department who died in 1991, are analogous to postdoctoral fellowships in the laboratory sciences. Trustees had eliminated term faculty during recent changes to the Rules of the University Faculty. The math department has maintained 12 rotating term instructors and term assistant professors for the past 10 years. -- Discussed with Paul Krebs, associate athletic director, student use of the arena to be built north of Lane Avenue. -- Authorized using endowment funds to take advantage of an opportunity to pre-pay the $5.3 million promissory note executed for the purchase of the Raymond Firestone estate. According to University Treasurer James L. Nichols, taking the prepayment option will save Ohio State approximately $243,000 per year in interest. When the Firestone property is sold, the university's endowment will be reimbursed. The university bought the Firestone property in January in accordance with a charitable gift agreement made with Firestone in 1987. Under that agreement, the university bought the land at a cost below its market value. The difference between Ohio State's costs and the income it will receive for sale of the property is a gift to the university from Raymond Firestone. -- Appointed four university officials to the Medical Research and Development Committee. The four are Milton A. Wolf, chairman of the Board of Trustees; E. Gordon Gee, president; Bernadine P. Healy, dean of the College of Medicine; and William J. Shkurti, vice president for finance. The committee will serve as an oversight body to the Medical Research and Development Foundation, a non- profit corporation created as a conduit for moving academic enrichment funds from medical practice groups to the university. -- Approved 103 waivers of competitive bidding requirements totaling $26.3 million. Ninety-four waivers, totaling $25.5 million were for purchases from sole-source suppliers, and $18.6 million of that involved two purchases of merchandise for resale. The remaining nine waivers were for sufficient economic reason. -- Heard a report from David Williams, vice president for student affairs, on actions being taken to improve and extend services to all students on campus. # Contact: William J. Shkurti, (614) 292-9232. Written by Tom Spring. [Submitted by: Von Reid-Vargas (ereid@magnus.acs.ohio-state.edu) Thu, 31 Aug 1995 15:29:43 -0400] All documents are the responsibility of their originator.