2-5-99

TRUSTEES HEAR REPORT ON CAPITAL IMPROVEMENT PROJECTS

   COLUMBUS -- The Ohio State University Board of Trustees on Friday (2/5) heard an update on capital improvements that were in the works last year. Trustees also approved construction, heard budget reports, purchased property and conducted other business.

Trustees updated on campus construction projects

   University Architect Jill Morelli shared with trustees an update on capital projects that were under construction or completed in 1998. Morelli discussed how the Campus Master Plan and the Design Review Board are integrated into the planning and design of projects. She also highlighted emerging projects and those that are in the design phase.

   "Two major projects -- the first phase of the Fisher College of Business and the Jerome Schottenstein Center -- were opened to accolades from many sectors of our community," she said. "While it is tempting to focus on these large projects -- along with the $156.7 million Ohio Stadium project and the $132.3 million Larkins Hall Recreation Center work -- that would be a disservice to the university community. All projects, large and small, are integral to the delivery of high-quality instruction to students."

   For the year, 38 projects totaling $195.4 million were completed. Another 47 projects totaling $356 million were under construction. These projects include phase two of the Fisher College, the Heart and Lung Institute and the Longaberger Alumni House. Also during the year, work began on the renovation and restoration of Ohio Stadium.

   Morelli also mentioned the 110 capital projects that each have price tags of less than $1 million. With a total cost of $36.4 million, the projects represent 63 percent of all campus construction, but account for only 3.6 percent of the dollars.

   There were 74 projects in design last year, and nine others that were dropped or combined with other projects. Projects in design, which totaled $225.2 million, included the Food Science and Technology Building, Knowlton School of Architecture, Life Sciences Research Building and the Physical Sciences Research Building. Projects in design that will extend the university's reach include Community Ambulatory Care Centers in Columbus, Gahanna and Pickerington.

   Morelli deemed 52 projects as emerging. With a total cost of $94.2 million, the projects already have funding sources identified. Many of them will make improvements to campus buildings and grounds and the student experience, such as a renovation of the Ohio Union. Four other projects, with a total cost of $254.5 million, have $6.4 million of planning money in place. They are the renovation and addition of Larkins Hall, replacement of Robinson Lab and renovations of the Botany and Zoology building and Page Hall.

   Another 13 projects totaling $406.4 million are on the wish list -- under review, but not yet approved for funding. These projects include an Education and Biomedical Research Facility, renovation of Main Library, an Arts Complex, Heart Hospital, Psychology Building, professional student housing and two new parking garages. Several of these emerging projects may be evaluated as part of the capital planning process in the 2001- 2002 biennium, Morelli said.

Trustees seek construction bids; approve planning

   Trustees authorized the university to seek construction bids for several major campus projects, including building a new facility for the Department of Physics, renovating Hagerty Hall for the College of Humanities, and replacing Sisson Hall for the College of Veterinary Medicine.

   Plans are to demolish the Welding Engineering Building and construct a new facility on that site for the Department of Physics. The state is funding the $50 million project.

   A $20.5 million renovation of Hagerty Hall will provide space for a new International Language Center in the College of Humanities. Private gifts to the college are contributing to the funding from the state for construction.

   At Sisson Hall, $21.4 million from the state and gifts to the College of Veterinary Medicine will pay for demolition and replacement of two 1950s portions of the building. A 1987 addition will be incorporated into the design.

   Bids will be sought for a new state-funded $5.8 million feed mill at the Ohio Agricultural Research and Development Center in Wooster.

   Construction bids also will be sought for the second phase of the library book depository at 2700 Kenny Road, which opened in 1995. A new module will be added to the facility to provide additional storage space for library books and materials that are infrequently used. The $2 million addition is being funded by the Ohio Board of Regents.

   Trustees authorized the university to hire architects and engineers for the replacement of Robinson Laboratory and renovations of the Botany and Zoology Building and Page Hall. At Robinson Hall, plans are to demolish the building and replace it with new space for the Department of Mechanical Engineering. Planning funds of $1 million were authorized by the state, but construction money, the amount of which has not yet been determined, will be requested from the state in a future capital appropriation.

   In the Botany and Zoology Building, $1.7 million from the state will be spent to plan for a renovation of space for the College of Biological Sciences and other academic areas. Some $700,000 was authorized by the state to plan for the renovation of Page Hall for academic use, following the relocation of the Fisher College of Business to its new campus. Funding for both projects will be sought from the state in a future biennium.

   Trustees authorized design work and bidding for several construction projects on the regional campuses.

   At the Agricultural Technical Institute in Wooster, $1 million from the state and ATI will be used to build a 52-stall barn and breeding area for horses. Another $2.3 million from the state and ATI will be used for an academic building for horticulture students.

   At Lima, $1.1 million from the state will pay for renovation of classroom space on the third floor of Galvin Hall, and in Mansfield, $1.2 million will pay for the renovation of Founders Auditorium in Ovalwood Hall.

   Design work and bidding also will begin for three projects affiliated with the university: animal facilities for the International Association for the Preservation of Wild Animals at The Wilds in Zanesville, the Science and Technology Campus, and the Jack Nicklaus Museum.

Trustees hear budget reports

   Trustees received an update from William J. Shkurti, senior vice president for finance, business and administration, about how original budget projections for fiscal year 1998 compared with audited financial statements for the year.

   Shkurti explained the variances to trustees, telling them that most were because of the way some items were classified in the budget but were accounted for differently when expended.

   For the year, general fund revenues were 4.5 percent higher than budgeted, and expenditures were 0.2 percent less than estimated. Earnings revenues and expenditures both were 12 percent higher than budgeted. Most of the differences reflected classification issues, Shkurti emphasized.

   As a result of the report, the Office of Finance will determine necessary classification changes in future budget documents.

   Trustees also approved a routine quarterly budget report. Shkurti said stronger-than-projected enrollments for summer and autumn quarters produced nearly $3 million in additional net income. Shkurti recommended, and trustees agreed, to raise the revenue estimate for the fiscal year, but not to allocate the funds until the fiscal year 2000 budget process. Minor budget adjustments also were made to account for expenses of the Buckeye Scholarship Program.

   Shkurti also told trustees that both University Hospitals and the James Cancer Hospital have had positive operating results for the first six months of this fiscal year. He said the university would continue to closely monitor Medical Center finances.

Trustees purchase property

   Trustees authorized the university to spend $92,500 for 2.19 acres on the south side of Kinnear Road bordering university property at 1275 Kinnear Road. The property, appraised at $100,000, will be used to support the Science and Technology Campus. It will provide for additional parking and a new driveway. Funds for the purchase will come from the university properties research park account.

   Seller CSX Transportation Inc., which has discontinued its rail service in the area, also will give up its easement rights over another 1.93 acres in the Kenny-Kinnear roads neighborhood.

   Trustees also purchased buildings at 219-221 and 249 W. 10th Ave., both near Neil Avenue. The 219-221 W. 10th Ave. property, currently being used as multi-tenant housing, is being purchased for $175,000 from Bennett Cooper of Worthington. The property at 249 W. 10th Ave., also multi-tenant housing, is being purchased for $98,000 from Jeffrey Sturgeon of Columbus.

   The properties are within the south campus acquisition area of the university's master plan.

Miscellaneous business

   In other business, trustees:

   -- Authorized the university to proceed with capital improvement projects during 1999. The routine authorization is for projects that each cost less than $1 million.

   -- Approved 355 contracts totaling $21.5 million for research projects funded in November and December.

   -- Granted competitive bid waivers for 24 purchases totaling $2.84 million by the Office of Business and Administration and waivers for 34 purchases totaling $7.7 million by University Hospitals.

Contacts:
Jill Morelli, university architect, 614-292-4458
William J. Shkurti, senior vice president for finance, business, and administration, (614) 292-9232

Written by David Bhaerman, University Communications, (614) 292-8422