board of governors...the preliminary shortfall is $5.8m (2013/2014 base budget deficit $1.8m),...

Board of Governors

Agenda, Minutes and Supporting Documents

February 25, 2014 at 4 pm

Room 203 Toldo Health Education Centre

Please review all documents prior to the Board of Governors meeting.

Hardcopies will also be distributed by mail.

All documents for this meeting are contained in the one PDF file for easy reading/printing.

If you are unable to attend, please notify Carol Perkes at [email protected]

of 18

NOTICE OF MEETING

There will be a meeting of the Board of Governors

Tuesday, February 25, 2014 4:00 pm

in Room 203, Toldo Health Education Centre

AGENDA ITEM DESCRIPTION DOCUMENT # ACTION

1 Approval of the Agenda 2 Minutes of the meeting of November 26, 2013 BG131126M Approval

3 Business arising from the minutes

4 Outstanding Business/New Business

4.1 Reports: 4.1.1 Remarks from the Chair Jones-Information 4.1.2 President’s Report

4.1.2.1 Presentation by Dean, Faculty Roland-Information of Education 4.1.2.2 Annual Update for the Board Wildeman-Information of Governors

4.2 Audit Committee

4.3 Executive Committee

4.4 Governance Committee

4.4.1 Board Bylaw 1: Attendance and Quorum BG140225-4.4.1 Olivero-Approval 4.4.2 Board Bylaw 1 and Confidentiality BG140225-4.4.2 Olivero-Approval Policy Revisions

4.5 Investment Committee

4.6 Pension Committee 4.7 Resource Allocation Committee

4.7.1 2013-2014 Operating Budget 9-Month BG140225-4.7.1 Allen-Information Review

4.7.2 Biology Building Renovation Phase 2 BG140225-4.7.2 Allen-Approval 4.7.3 Welcome Centre BG140225-4.7.3 Allen-Approval

5 In Camera 6 Adjournment

BG140225A

of 18

[Bylaw 1, Section 2.6 – Consent Agenda: Items that normally do not require debate or discussion either because they are routine, standard, or noncontroversial, shall be “starred” (identified by an asterisk (*)) on the agenda. “Starred” items will not be discussed during a meeting unless a member specifically requests that a “starred” agenda item be ‘unstarred’, and therefore open for discussion/debate. A request to “unstar” an agenda item can be made at any time before (by forwarding the request to the Secretary) or during the meeting. By the end of the meeting, agenda items which remain “starred” (*) will be deemed approved or received by the Board, as the case may be. No individual motion shall be required for the adoption of “starred” agenda items.]

of 18

of 4

Board of Governors Minutes of Meeting

Date: Tuesday, November 26, 2013 Time: 4:00 pm – 6:55 Room: 203 Toldo Members: Ms. Penny Allen, Mr. Iftekhar Basith, Mr. Vince Bassman, Mr. Tom Clark, Mr. Rob Crawford, Dr. Stanley Cunningham, Dr. Beth Daly, Dr. Gordon Drake, Mr. Peter Farmer, Ms. Marilyn Farough, Mr. Norbert Hartmann, Mr. Dean Jacobs, Ms. Jennifer Jones (Chair), Mr. Werner Keller, Dr. Marlys Koschinsky, Ms. Sheila MacKinnon, Mr. Tony Mancina, Rev. Paul McGill, Ms. Rachel Olivero, Mr. Fred Quenneville, , Dr. Antonio Rossini, Ms. Pat Soulliere, Dr. Fouad Tayfour, Dr. Alan Wildeman, Mr. William Willis, Mr. Bill Wright. Regrets: Mr. Greg Aarssen, Dr. Ed King, Dr. Dietmar Lage, Mr. Dave Montgomery, Mr. Vic Neufeld, Mr. Osman Raza. Administration and Guest Speakers: Ms. Sandra Aversa, Ms. Jane Boyd, Mr. Dave Butcher, Mr. Mark Charlton, Dr. Leo Groake, Mrs. Anna Kirby, Ms. Rita LaCivita, Ms. Susan Mark, Mr. John Osborne, Ms. Arla Peters, Ms. Holly Ward, Ms. Rose Zanutto, Ms. Renée Wintermute (University Secretary), Ms. Carol Perkes (Board Governance Officer).

Declaration of conflict of interest Mr. Tom Clark declared a conflict of interest pertaining to 4.2.1. 1 Approval of the Agenda MOTION: That the Agenda be approved.

Keller/MacKinnon CARRIED

2 Minutes of the meeting of MOTION: That the Minutes of the meeting of October 29, 2013 be approved.

Keller/Farmer CARRIED

3 Business arising from the minutes Nothing to report. 4 Outstanding Business/New Business

4.1 Reports 4.1.1 Remarks from the Chair NOTED:

§ The Annual Board Dinner will take place immediately following the Board meeting. § Two weeks ago, the Chair attended a CCOU meeting where sector issues were

discussed. Last week, the Chair and the President attended “University Day” at Queen’s Park, which was an informative experience.

§ This is Stan Cunningham’s last official meeting as a Board member and he was thanked for his dedicated service to the Board.

4.1.2 President’s Report NOTED:

§ The President reported on his attendance at University Day at Queen’s Park where he had the opportunity to meet with political staff and administrators. Discussions on challenges and fiscal realities that are currently faced by universities and the province

BG131126M

of 18

of 4

took place. It was an opportunity to showcase the university sector at Queen’s Park. College presidents also attended on the same day.

§ Approximately one year ago, all universities submitted strategic mandate agreements (SMA), which included the identification of “strengths” and “uniqueness” on a set of criteria established by MTCU. Some of the areas that were highlighted by the University of Windsor included: commitment to downtown, international border crossing, sustainable manufacturing, and Great Lakes Institute for Environmental Research. The final SMA will be signed in March. It is not clear how this will factor into the proposal for the differentiation framework discussion or how it will impact budget decisions. This will be further discussed at the Board retreat.

§ Colleges are also taking part in the SMA process.

4.1.2.1 Presentation by Dean, Odette School of Business (see document BG131126-4.1.2.1 for additional information)

NOTED: § Dean Conway provided an overview of the “Odette Experience” highlighting:

alumni development; the OSB program portfolio; and interactions/collaborations with business professionals within and outside the classroom.

§ OSB has two research chairs and a research-based professorship. Productivity and quality of research has increased tremendously over the past several years.

4.1.2.2 Annual Report 2013 (see www.uwindsor.ca/annualreport/2013 for additional information) NOTED:

§ Dr. Wildeman provided the context and background of the Annual Report 2013, which can be found at the online address shown above.

§ Board members were encouraged to view the website. The site contains a great deal of statistical information including key performance indicators.

§ Ms. Holly Ward and Public Affairs and Communications staff were thanked for their work on this project.

§ A request to make information on faculty retention available on the website was made.

4.2 Audit Committee

Mr. Tom Clark declared a conflict of interest and did not participate or vote on this item. MOTION 1: That the Board approve the Audited Financial Statements of the University of

Windsor retirement Plan for Faculty and Certain Employees for the year ended June 30, 2013; and

MOTION 2: That the Board approve the Audited Financial Statements of the University of

Windsor Employees Retirement Plan for the year ended June 30, 2013.

Farmer/Bassman

NOTED: § A brief synopsis of the statements was provided for the Board. It was noted that University

received a clean audit report. § While 2013 was a good year for investment performance, it does not detract from the fact that

the University still faces long-term pension issues, such as the impact of revised life tables, interest rates, defined benefit plans, and the uncertainty of the upcoming pension valuation.

CARRIED

of 18

of 4

4.3 Executive Committee NOTED:

§ Due to the small number of individuals requiring orientation each year, Board members agreed with the Executive Committee’s recommendation that new Board members be given one-on-one orientations, in lieu of an annual orientation in the Fall.

§ A Fall social event will be held each September to welcome Board members back after the summer break.

4.4 Governance Committee Nothing to report at this time. 4.5 Investment Committee Nothing to report at this time. 4.6 Pension Committee Nothing to report at this time. 4.7 Resource Allocation Committee

4.7.1 Operating Budget Mid-year Review (see BG131126-4.7.1 for additional information) NOTED:

§ The mid-year adjustment showed a positive change of $960,000 bringing the projected 2013/2014 Projected deficit position down to ($829,000) from ($1,789,000).

4.7.2 2014/2015 Operating Budget (see BG131126-4.7.2a for additional information) NOTED:

§ A strategy to present a balanced budget at the May 2014 Board of Governors meeting is being developed.

§ Key assumptions and considerations include enrolment projections, tuition fee framework for both domestic and international students were provided; decrease in government grants in the amount of $2m; faculty collective agreement contract expires in June 30, 2014; statutory benefits cost increases.

§ Pension cost assumptions: contributions are based on July 1, 2011 valuation, there will be an increase in the base budget of $550,000 reflecting salary increases. The University will continue to monitor the Pension Plans for financial status planning purposes. The next valuation is due July 2014. An increase in the deficit is anticipated.

§ Total budget for the Strategic Priority Fund is $1m. § An increase in other costs such as maintenance contracts, licensing, scholarships,

academic delivery costs was reported. § No other significant investments are budgeted; no new buildings are coming on-line

during 2014/2015. § The preliminary shortfall is $5.8m (2013/2014 base budget deficit $1.8m), 2014/2015

Operating Budget shortfall $3.45m, increase in Pension Contribution $550,000. Therefore, there will be a 6th year of realignment in the range of 3.1% - 3.6%.

§ A communication on realignment targets will be sent by the President via Update #20.

4.7.3 Campus Master Plan – Phase I (see BG131126-4.7.3.a and BG131126-4.7.3b for additional information)

MOTION: That the Board approve the multi-year strategy for the implementation of the Campus Master Plan Phase I, as presented.

Allen/Hartmann NOTED:

§ The Capital Transformation Plan was approved in April 2012, and the Campus Master Plan (CMP) was approved June 2013.

of 18

of 4

§ The implementation strategy is a phased approach with priority #1 being the closure of Sunset and Fanchette along with the beautification of the surrounding areas.

§ An outline of key events and the multi-year strategy was given. § Potential funding sources include: capital grants, fundraising efforts, existing base

capital budgets and other revenues as available. § CMP Phase I strategy will serve as a guideline for projects to be undertaken annually. § Individual projects in excess of $750,000 will be brought forward for approval to RAC

and Board. § The availability of funding may alter proposed timelines. § Next steps were outlined. § Mr. Paul Sapounzi provided a well-received slide show on the 7 Zones of the CMP. § Board members were impressed and highly supportive of the designs. Members

agreed that implementation of these projects should be given high priority.

5 In Camera The following In Camera motions were read into the public minutes.

MOTION: That Senate’s appointment of Dr. Maureen Gowing to the Board of Governors be ratified.

Olivero/Quenneville CARRIED

MOTION: That the Faculty Association’s appointment of Dr. Erdal Gunay to the Investment

Committee be ratified. Olivero/Bassman

CARRIED

6 Adjournment MOTION: That the meeting be adjourned.

Keller/Daly CARRIED

of 18

BG140225-4.4.1

University of Windsor Board of Governors

4.4.1: Board Bylaw 1: Attendance and Quorum Item for: Approval Forwarded by: Governance Committee

Board Bylaw 1: Board Attendance and Quorum

MOTION: That the following changes be incorporated into SECTION II: Board Composition and Rules of Procedures:

1.4 Board Members Office Deemed Vacant

[…] f. such Board member has missed three regularly scheduled consecutive meetings of the Board, with the exception of meetings missed due to serious health circumstances, or other circumstances acceptable to the Board as assessed and approved by the Governance Committee on behalf of the Board.

2.9 Quorum Sixteen (16) members of the Board shall constitute a quorum at any meeting, of which a minimum of fourteen (14) twelve (12) board members must be attending in person. The quorum must remain throughout the entire meeting. The exception is where, due to Conflict of Interest rules, the number of members disqualified from voting in a meeting is such that at the meeting there are not sufficient members to constitute a quorum, then the remaining members shall be deemed to constitute a quorum, provided the number is not less than one third of the voting membership.

Rationale: § Members should be excused from the practice of being deemed to have vacated their seat on the Board

after missing three meetings in a row due to the hardship involved in attending special meetings on short notice.

§ The Committee discussed the merits of allowing participation via teleconference or videoconference at the Board meetings. It was noted that “in person” participation at meetings should be encouraged and the Committee, therefore, felt that a minimum number should continue to be stipulated. In recognition that sometimes “in person” participation is not always possible, the minimum number of “in person” members was reduced from fourteen (14) to twelve (12).

of 18

BG140225-4.4.2


4.4.2: Board Bylaw 1 and Confidentiality Policy Revisions Item for: Approval Forwarded by: Governance Committee

MOTION: That Bylaw 1 and the Confidentiality Policy be amended as follows:

Confidentiality Policy Revisions 4. Confidential Matters The modification of paragraph 4 (d) (d) Notwithstanding anything else herein, the Board recognizes the unique position of the faculty bargaining unit representatives on the Investment Committee and the Pension Committee. The Board therefore authorizes these representatives on the Investment Committee and the Pension Committee. The Board therefore authorizes these representatives to disclose to the Faculty their Bargaining Unit Executive any matter pertaining to and/or affecting the Faculty Bargaining Unit’s interests to the extent necessary to (i) inform the members of the Executive and (ii) permit the members of the Executive to direct the said representative(s) to convey and advocate the interests of the Faculty their Bargaining Unit to the Investment Committee and/or the Pension Committee, as applicable. In this regard, the representatives agree that such disclosure shall not include the attribution of any statements to individual Board or Committee Members.

ACKNOWLEDGEMENT AND UNDERTAKING REGARDING CONFIDENTIALITY for Board Members and Committee Members:

II. UNDERTAKING FOR FACULTY BARGAINING UNIT REPRESENTATIVES ON BOARD INVESTMENT COMMITTEE AND/OR PENSION COMMITTEE

I acknowledge that, as the Faculty Bargaining Unit representative on either the Investment

Committee and/or the Pension Committee, I have read the relevant Board policy documents pertaining to confidentiality.

I acknowledge that I must adhere to the highest level of conduct in carrying out my duties and

responsibilities, including acting honestly, in good faith. I acknowledge that, in carrying out my duties and responsibilities, my obligation is to act in accordance with the Acknowledgement and Undertaking and with relevant University bylaws and policies, as applicable, while offering my perspective as representative of the Faculty my Bargaining Unit.

I undertake to keep in strictest confidence all confidential or proprietary information communicated

or disclosed to me in my capacity as a Board Investment Committee and/or Pension Committee Member in accordance with relevant University bylaws and policies, as applicable, and, in particular, I acknowledge the Board recognizes my unique position as the Faculty a Bargaining Unit representative on the Investment Committee and/or the Pension Committee, as applicable. I confirm the Board authorizes me to disclose to the Faculty my Bargaining Unit Executive any information I am privy to on either or both of these Committees pertaining to and/or affecting my Bargaining Unit’s interests to the extent necessary to: (i) inform the members of the Executive; and (ii) permit the members of the Executive to direct me to convey and advocate the interests of the Faculty my Bargaining Unit to the Investment Committee and/or the Pension Committee, as

of 18

applicable. In this regard, I agree that such disclosure shall not include the attribution of any statements to individual Board or Committee members.

Dated this ________ day of ____________________, 20___.

Signature: _________________________________________

Please print name: ___________________________________ Rationale:

§ This extends to staff bargaining unit representatives the same provision as that extended to faculty bargaining unit members.

of 18

BG140225-4.7.1


4.7.1: 2013-2014 Operating Budget 9-Month Review Item for: Information Forwarded by: Resource Allocation Committee Rationale: § The process for ongoing monitoring of the Board-approved 2013-2014 operating budget includes a review of

the University’s spending at the 9-month point. § As the 9-month review does not include a proposal to revise the 2013/2014 operating budget but rather

provides a projection to year end, the review is provided for information only.

of 18

University of Windsor

Expense by Type Projection

2013/14 Operating Budget - 9-Month Adjustment

2013/14

APPROVED BASE

BUDGET

(Reclassed)

Mid-Year

Adjustment 9-Month

Total

Adjustments

2013/14

2013/14

Projection

REVENUESStudent Academic Fees 126,701,495$ 1,900,000$ 1,780,000$ 3,680,000$ 130,381,495$

Government Grants:

Operating-Provincial 100,611,000 (730,000) 179,000 (551,000) 100,060,000

Federal 3,237,699 3,237,699

Investment Income 2,500,000 (730,000) (730,000) 1,770,000

Other Income 2,267,000 2,267,000

TOTAL REVENUE 235,317,194$ 440,000$ 1,959,000$ 2,399,000$ 237,716,194$

EXPENDITURESAcademic Salaries 69,937,822$ 69,937,822$

GA/TA's 9,255,670 9,255,670

Other Academic Salaries 14,487,246 14,487,246

Support Staff Salaries 49,980,426 49,980,426

Other Salaries 3,919,036 3,919,036

Benefits 36,813,024 36,813,024

Total Salaries, Wages and Benefits 184,393,224$ -$ -$ -$ 184,393,224$

Library Acquisitions 3,867,837$ 3,867,837$

Utilities 10,040,010 (800,000)$ (800,000)$ 9,240,010

Scholarships 11,775,998 (620,000) (620,000) 11,155,998

Municipal Taxes 1,063,100 1,063,100

Principal and Interest Costs 6,008,148 6,008,148

Central Overheads (7,162,519) (900,000) (550,000) (1,450,000) (8,612,519)

Equipment & Supplies & Memberships 15,572,953 15,572,953

Research Expenditures 2,326,103 2,326,103

Strategic Priority Fund 2,706,930 - - - 2,706,930

Other 6,514,410 1,800,000 1,680,000 3,480,000 9,994,410

TOTAL EXPENDITURES 237,106,194$ (520,000)$ 1,130,000$ 610,000$ 237,716,194$

FINAL 2013/14 PROJECTED POSITION (1,789,000)$ 960,000$ 829,000$ 1,789,000$ -$

of 18

of 3

BG140225-4.7.2


4.7.2: Biology Building Renovation Phase 2 Item for: Approval MOTION: That the Board of Governors approve that the University proceed to finalize the plans for

the renovation of the Biology Building. Administration to proceed to tender and award the Phase II construction contract estimated at $1.5 M to the most qualified bidder, provided the tender is within budget.

GOALS AND OBJECTIVES FOR THE PROJECT The goals and objectives of the project will be developed as a first step in a process defining the scope of the Biology Building Renovations. The outcome of this project will need to align with the strategic plan of the University and address the strategic priorities of the University. This project will provide updated, comfortable spaces for the undergraduate experience, research and graduate programs and improve the working conditions of faculty and staff. Aesthetics and first impressions of new faculty, staff, students, and parents of prospective students are key to this success. The Department of Biology is a thriving department; enrolment has grown significantly over the past years and the growth is expected to continue. In addition, all Faculty are currently engaged in active research projects and the training of graduate and undergraduate students. The labs, offices and student spaces will be brighter and comfortable with the planned renovations. HISTORY OF PROJECT The original Biology Building (Phase I) was built in 1965 and a building addition (Phase II) was added in 1977. Both phases contain sprayed fireproofing material, but only Phase I contains asbestos. Throughout the years many projects were completed in the building. Some of the most current projects include: • 2003 - Lab Fume hood Exhaust Fans Upgrades • 2004 - Lab Upgrades • 2006 - Classroom Upgrades • 2008 - Labs 101, 105, 201 & 205 Renovations • 2011 - Animal Quarters Renovations In all of the above projects, the Asbestos Containing Materials (ACM) have been removed and new lighting, ceilings, HVAC upgrades, controls and painting have been retrofitted in the space. Currently, the maintenance staff have limited access and do not have the resources nor the experience in asbestos abatement to perform some of the required maintenance due to the restrictive regulatory requirements for access to spaces containing ACM resulting in lengthy and expensive maintenance procedures. In addition, the building experiences heating and cooling issues that are difficult to service due to the presence of ACM. Such issues increase the likelihood of disruption of research in the building. The proposed project will alleviate most of the maintenance issues relating to the presence of ACM and improve the environmental conditions within the building. The project addresses the need for continued deferred maintenance as identified in the Campus Transformation Plan approved by the Board.

of 18

of 3

DESCRIPTION OF PROJECT – Phase 2 In January 2013, a Request for Proposal was issued for an Architectural firm who would work with the University in the design and construction on this renovation project for all phases. After receipt of the submissions, a thorough technical and financial evaluation was completed resulting in the selection of WalterFedy (the Consultants), a full-service integrated design firm. A Steering Committee has been assembled under the direction of the Dean of Science, key stakeholders from the Biology Department, and Facility Services. The Consultants have met with the Biology faculty and staff including the Steering Committee and have developed a multi-year phasing plan including an overall preliminary budget of $4.0m. The final overall project cost may vary depending on scope of work, conditions of the building, and market conditions. The most efficient implementation plan is to phase the construction in order to accommodate the users. As a number of tenders will be released over the next 3 to 5 years, we will be bringing forward each Phase to the Resource Allocation Committee and Board of Governors for approval. Phase I was approved by the Board of Governors in May 2013 with a total cost of $ 1.4m. Construction began in June 2013. The Building tenants, the Biology Department, were very cooperative and accommodating in assisting us to maintain the schedule and budget. The contractor, Loaring Construction, was organized and co-operative, working well with the team to achieve the project objectives. The Phase I work completed the asbestos fire-proofing removal and re-spray, HVAC upgrades (distribution and controls), fume hood upgrades, lighting and ceilings in the basement floor, sub-basement level and Mechanical Penthouse M400 (4th floor) including the Mechanical Duct Shaft. Separate prices were requested for the 1st floor north / south corridor, 2nd floor north / south corridor and 3rd floor north / south corridor work but this work was not completed due to budget restraints and priorities. Phase I was completed in February 2014. As originally presented, the overall project will be implemented through five (5) phases (Phase I completed) to be completed over the next four years. The phases are planned as follows: Phase I: Completed Phase 2: First Floor: Completion of all floor areas including Labs, offices Second Floor: Corridor Piping Insulation: Basement Third Floor: Corridor (Separate Price) Phase 3: Second Floor: Completion of all remaining floor areas including Labs, Office space and other work areas required. Phase 4: Third Floor: Completion of all remaining floor areas including Labs, Office space and other work

areas required. Phase 5: Fourth Floor: Completion of Corridor, Lab 401, J-400 and Lab 403. In all phases, several labs and offices may be temporarily relocated to Essex Hall areas within the Biology Building to make the space available for the renovations. In Phase 2, due to the nature of the work, selected labs and offices will be temporarily relocated to Essex Hall based on user needs. The scope of work for all phases will consist of the removal of existing ceilings, lighting and HVAC air distribution equipment to access the ACM in the ceiling space for removal. The sprayed fireproofing material will be replaced along with new air distribution equipment, HVAC controls, lighting, ceilings and painting. In addition, the project scope of work will include the cleaning, repair, upgrade and / or replacement of approximately 31 fume hoods (6 were completed in Phase 1) based on a campus wide Fume hood Study completed in March 2012. Fume hood upgrades and / or replacement will be completed in each phase of the work. Four (4) fume hoods will be replaced in Phase 2. Consideration will be given to new flooring, paint, and some aesthetic improvements based on the availability of other funding sources.

of 18

of 3

BUDGET OF THE PROJECT – Phase 2

GENERAL CONTRACTOR (Based on WalterFedy Estimate)

General Construction Cost:

$1,085,000 CONSULTANTS’ COST

WalterFedy Architects:

$128,735 Pinchin - Asbestos Abatement

$41,230

Disbursements

$5,000

$1,259,965

Project Contingency:

$190,572 PROJECT COST BEFORE HST

$1,450,537

HST (net of rebate)

$49,463 TOTAL PHASE 2 COST

$1,500,000

Pending Board approval of the Phase 2 project, the next step will be to proceed with working drawings and tender documents for Phase 2 only at this time. FUNDING OF PROJECT – Phase 2

All phases of the project will be funded from the Board-approved Deferred Maintenance Strategy (Phase II). Phase 2 of the Biology project will be fully funded as follows:

Deferred Maintenance Strategy- Phase II

$1,500,000

The Biology renovation project was identified as a Priority # 1 project in the recently approved Deferred Maintenance Strategy II.

of 18

of 3

BG140225-4.7.3 University of Windsor Board of Governors

4.7.3: Welcome Centre Item for: Approval Forwarded by: Resource Allocation Committee MOTION: That the Board of Governors approve that the University proceed to execute the Design-

Build Contract with the Amico design/build team for the building of the Welcome Centre with a total project budget of $8,462,000.

HISTORY OF PROJECT For many years, the University of Windsor (University) has been discussing the need for an “address” for the University. Upon reaching the campus, there is no iconic or distinguishing location to inform visitors that they are entering the University. Whether one enters from the east or west, the main thoroughfare that currently serves as the identifier for campus is Sunset Avenue. The Welcome Centre is aptly named to function as the front door to the University campus; it is the gateway through which you first become a student and where you return as an alumni member. This is where life as a Lancer begins and where it is celebrated. It is the new address for the University. The Board of Governors approved the issuance of a Request for Proposal (RFP) for the Welcome Centre on February 28, 2012. A Welcome Centre Steering Committee was formed to provide oversight to the project through the design/build procurement process. Mayhew was retained in October 2012 to complete a functional space study based on user requirements. The interior space program for the building embodies the philosophy of cross-functional teams working in a collaborative setting. The information complied by Mayhew formed part of the RFP. MHPM Project Leaders (our project managers for the Downtown campus) were appointed as Project Manager in January 2013 to assist the University in bringing this project to completion. DESCRIPTION OF PROJECT As discussed in the above section, the Welcome Centre’s unique attribute was to be the address for the University, hence requiring unique approaches to the architecture of the building. The Design-Build methodology would provide the most applicable process for the University with a sense of competition based on the architectural response itself. This process would allow a preferred architect/contractor team to bring forward a design that would meet the project goals, maximize the value of the project’s budget and support the timely completion of the project. Located within the Welcome Centre will be Student Admissions and Recruitment, Alumni Affairs, the University Campaign office, Public Affairs and Communications office, and a Bookstore kiosk selling branded merchandise. The building will be multi-level with approximately 18,000 square feet (gross floor area) located near the corner of Wyandotte Street and Sunset Avenue. New green spaces will be developed surrounding this area as part of the approved Campus Master Plan. PROCESS – RFP FOR DESIGN/BUILD TEAMS The first step in the design/build procurement process was the issuance of a Request for Supplier Qualification (RFSQ) which occurred in January 2013. The purpose of the RFSQ was to identify the design/contractor teams that would be qualified to take on such a project. After a detailed evaluation process of the criteria outlined in the RFSQ, a short-list of three (3) proponents was established. These firms were selected through a competitive pre-qualification process where firms were

of 18

of 3

selected on past experience with similar projects as well as their design team’s experience in the industry. The final short list of proponents was:

1. Oscar Construction Company Limited and Diamond Schmitt Architects/Di Maio Design Associate 2. Amico Design Build and Hariri Pontarini Architects/Architecttura Inc. Architects 3. Harbridge + Cross Limited and Kearns Mancini Architects Inc.

The University released the initial RFP for Design-Build Services on June 6, 2013 to these three pre-qualified design/build teams. Unfortunately the RFP process closed with only one proposal being received by the University. In review of this proposal it was confirmed that the submission was not compliant with the University’s requirements as outlined in the RFP. The proponent was notified that the procurement process had concluded with no compliant submission. This outcome provided an opportunity to re-evaluate the project parameters, not only with the key stakeholders but with the pre-qualified design-build firms, in various value-engineering exercises. MHPM Project Leaders (MHPM) led the University through an extensive value-engineering process which included:

1. Confidential Proponent Interviews 2. Internal Technical Workshops 3. Internal Functional Workshops 4. RFP and Scope Review 5. Budget Review

Through these series of discussions it became clear that the requirements outlined in the RFP exceeded the project’s budget. This was confirmed in the confidential proponent interviews as each proponent indicated that they were not able to achieve the requirements set out in the RFP within the budget objective. Two out of the three proponents withdrew from the first RFP process due to budget constraints and the other submitted a proposal which did not meet a significant requirement of the project. Each team provided ideas and opportunities for savings as part of their confidential interview. The value engineering process concluded on October 18th where MHPM presented the results to the Welcome Centre Steering Committee. The committee approved the savings identified by MHPM. On November 18, 2013 a new RFP was released to the same three short-listed proponents and a new procurement process began. On January 10, 2014 the RFP successfully closed with all three proponents submitting proposal packages. The evaluation team members began their individual evaluations shortly after and a consensus evaluation began. During the consensus evaluation process it became clear that all three submission were comprehensive and each approach to the design was unique. Each proponent team had the opportunity to present their design to the consensus team in a “Day in the Life” presentation. These confidential presentations provided an opportunity for the consensus team to seek clarification and obtain a common understanding to each proponent’s design and submission. Based on a fair and comprehensive evaluation process, a preferred proponent team was identified. The design/build team of Amico Design Build and Hariri Pontarini Architects/Architecttura Inc. Architects are the preferred proponents for the new University Welcome Centre. Conceptual drawings of the new Welcome Centre will be presented at the meeting for the Committee. PRELIMINARY SCHEDULE

Approval by Resource Allocation Committee February 12, 2014 Approval by Board of Governors February 25, 2014 Execution of Design Build Contract February 26, 2014 Completion of Construction/Substantial Completion June 2015 Tentative Date for Occupancy July 2015

of 18

of 3

PROJECT BUDGET The total cost of the project is $8,462,000 as detailed below:

COST OF CONSTRUCTION Construction Contract* $6,795,000 HST (net) $231,709

Total Construction Cost $7,026,709 Development & Other Costs

Site Investigations $50,300 Consultant Fees (Project Management, Compliance) $464,000 Other Costs (Equipment, Occupancy & Miscellaneous) $265,304 Project Contingencies (includes Design allowance) $608,358 HST (net) $47,329

Total Development & Other Costs $1,435,291

Total Project Budget $8,462,000

* Includes allowances for testing and inspection, commissioning, furniture/equipment, landscape and audio/video

FUNDING OF PROJECT As noted during the approval of the Capital Transformation Plan, the project will be funded from an existing base budget that supported external leases (Assumption & Canterbury). An internal loan will be established for a period of 25 years at an interest rate of 3.25%. The total debt cost, which includes principal and interest payments, approximates $500,000 per year.

of 18