fiscal year 2018 capital outlay project request · fiscal year 2018 capital outlay project request...

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FISCAL YEAR 2018 CAPITAL OUTLAY PROJECT REQUEST

Institution Name: Delta College

Project Title: Saginaw Center

Project Focus: Academic Research Administrative/Support

Type of Project: Renovation Addition New Construction

Program Focus of Occupants: General Studies and Career Programs (see Attachment #3 Program

Statement)

Approximate Square Footage: 35,000

Total Estimated Cost: $12,739,000 (see Attachment #1 Project Budget)

Estimated Start/Completion Dates: July 2016 - August 2019 (see Attachment #2 Project Schedule)

Is the Five-Year Plan posted on the institution’s public internet site? Yes No Is the requested project the top priority in the Five-Year Capital Outlay Plan? Yes No Is the requested project focused on a single, stand-alone facility? Yes No Describe the project purpose.

Delta College’s Saginaw Center is designed to provide educational access to the residents of the City of Saginaw and southeastern Saginaw County. By delivering close-to-home classes, we will be addressing the needs of many students who are making their first strides into the post-secondary educational realm. The project would help improve utilization of existing space and infrastructure; provide an environment for a larger variety of courses; and offer the opportunity to complete an associate degree or certificate. Within this safe environment, many first generation students find success, which can lead to a continuing cycle of education. Delta enrolls 41.3 percent of its students from Saginaw County, which is the largest portion of our service area, with a total of 193,301 residents living in that county. Research shows a high percentage of the population currently do not have a higher educational degree, but could be served by Delta College. There is a significant number of low-income, low-skilled individuals, and the district’s level of situational poverty increased with the severe contraction of the automotive industry. Figures for the City of Saginaw, in particular (with 49,347 residents), show a $29,049 median household income, versus $53,482 nationally. And, while the poverty rate in the United States is 13.5 percent, in Saginaw County it increases to 17.4 percent, and within the City of Saginaw it increases to 35.5 percent. While the unemployment rate is at 4.5 percent in Michigan, it is 9.5 percent for the City of Saginaw, which continues to be historically well above the county or state averages, having been at 21.9 percent just two years ago. Economists regularly suggest the possibility that many individuals have given up looking for work and are no longer reflected in the current unemployment statistics. High school completion is a measure of readiness for citizens to be able to seek employment, and the Saginaw area is well below average in this regard. Students in Saginaw County complete high school at a rate of 87.9 percent, while in the city of Saginaw, the rate drops to 78.7 percent.

ATTACHMENT B

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Delta values student success, community, and diversity, and we believe Off-Campus Centers are a vital link between the College and the community. Delta College partners with the communities to identify educational needs and resources to enhance the quality of life for all residents. The College currently operates Centers in each of our three major communities, Bay City, Midland and Saginaw. We own a 39,200 square foot facility in the City of Bay City; own a 29,300 square foot facility in the City of Midland; and lease a 21,500 square foot facility in Buena Vista Township, just outside the City of Saginaw.

Describe the scope of the project.

Delta currently leases a 1950s era elementary school in the Buena Vista area, however this proposed project will provide a new 35,000 square foot building. The proposed new facility will be designed to be flexible to teach general education, skilled trades, healthcare, and classes offering an entry point to career options. It will include high level technology, special use training rooms, eight to ten classrooms, and basic science and computer labs designed to strengthen Delta’s ability to deliver the highest caliber of college education and work force training. It will also provide multi-purpose rooms/labs, student services and administrative support spaces. Delta will partner with business leaders and developers who are investing their time and money in the same geographic area. Key employers, who have indicated their support, include: St. Mary’s of Michigan; Covenant HealthCare; Great Lakes Bay Michigan Works!; Garber Management; Michigan CardioVascular Institute (MCVI); Nexteer; AT&T; WNEM TV-5; the Dow Event Center; and Spicer Engineering. To ensure accessibility, measuring the distance to the STARS public transportation hub in downtown Saginaw became a key factor in selecting a new site. We have had conversations with the transit system, who have assured us of the opportunities to build a strong schedule, focused on student needs, between Downtown Saginaw and main campus. This would allow access to the advanced laboratory spaces available at the main campus location. The Delta College Saginaw Center project was authorized for planning in Public Act 268 of 2016. The next step in the process, is to submit professionally developed preliminary design plans to the State Budget Office to secure final approval for the State’s 50% matching funds. The Saginaw Center, as required by the State of Michigan, will remain our Priority #1 project until we receive final construction authorization.

Please provide detailed, yet appropriately concise responses to the following questions that will enhance our understanding of the requested project:

1. How does the project enhance Michigan’s job creation, talent enhancement and

economic growth initiatives on a local, regional and/or statewide basis? The economy of the Great Lakes Bay Region is dependent upon having educational resources available to students, employees and organizations. Through an improved Saginaw Center facility, Delta College can provide educational assistance to students experiencing both generational and situational poverty. State and regional figures show the City of Saginaw as a large employment center, which is projected to grow over the next two decades. At one time Delta College’s Saginaw centers enrollments, which were disbursed throughout a number of facilities, stood at over 1,300 students . Times are different and the area’s population has declined, but we are projecting future enrollment of 1,125 students with a new facility in Downtown Saginaw. While it is a challenge to serve those who may not have seen themselves as “college material,” Delta aims to make a difference. Supplying higher education to local residents through certificate and degree

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programs provides an investment in individuals, ensuring they’ll have career opportunities affecting future generations. Saginaw County added 1,800 manufacturing jobs over the past four years – the most of any of the three Great Lakes Bay Region counties. Delta College has strong skilled trades and manufacturing training programs in place to get students and residents into the workforce. The new Saginaw Center will create an opportunity to engage local citizens, creating a pathway for residents to enter the career pipeline. The College also has strong partnerships with existing businesses, along with the Great Lakes Bay Michigan Works! Organization. Saginaw Future, Inc., the county-wide economic development organization, is nationally recognized for efforts to provide proactive and focused economic development assistance in Saginaw County. It meets with hundreds of manufacturers and other area businesses each year, as it strives for diversified growth, which leads to an increased tax base and job creation/retention. Many times, they find a large disconnect between the educational levels of residents in our region, and the post-secondary skills required by employers. Saginaw Future has told Delta that the number one issue raised by business leaders is the need for a skilled and available workforce. Delta College is the producer of this precious talent and the Saginaw Center will play a key role in meeting the educational needs of the overall region that strengthen our business community. Delta College and the community also believe construction in the city’s urban core will positively impact economic development. Jobs that previously required a high school diploma now require post-secondary training due to automation, sophisticated equipment, required quality processes, critical thinking and problem solving skills. Employers are searching for individuals with the talent necessary to operate their new production equipment and technology, which require such large financial investments. And, Delta College excels at meeting the essential educational and training needs of the Great Lakes Bay Region. Delta College focuses on helping local businesses grow by providing trained or retrained workers and potential employees. It works in tandem with business and industry to meet the needs of the marketplace, which in turn positively affects economic development within our region. By responding to employers in a “just in time” training method, Delta College helps redesign the way employers obtain the skills they require. Governor Snyder believes that Michigan can positively impact the future by supporting economic development in distressed cities, and Saginaw finds itself on that unfortunate list. The City finds that it has a larger than normal population facing chronic unemployment. However, together, we can invest in bringing educational opportunities closer to the residents, thereby assisting citizens to access education, training and employment opportunities.

2. How does the project enhance the core academic and/or research mission of the

institution? This project will have a positive economic impact on Saginaw and will help Delta College meet its mission of preparing students for an ever changing job and educational future. Community colleges – and Delta College in particular – are flexible and responsive to our community’s needs, while educating students in the local area. Our proximity to both the students and the business community allow us to develop good job placement relationships, which will help Saginaw attract new companies and new residents to the City. A majority of Delta College enrolled students live in Saginaw County and enrollment at the Downtown Saginaw Center is expected to grow to 1,125. Through meetings with area business leaders, the College has identified several focus areas including: general education classes, entry level skilled trades courses, healthcare, and classes offering an entry point to jobs and careers for area employers. Delta College serves as an educational magnet to support student aspirations. Success affects not only the students, but their entire families. The City of Saginaw is the largest population center of the Great Lakes Bay

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Region and has already begun revitalization efforts within the core of the city. Cities are strengthening their core and community colleges are participating in the revival across the country. A central Downtown location can attract students from the City and would also attract from all 19 Saginaw County school districts. The Saginaw Center could also serve as a strong, county-wide resource center when pursuing dual enrollment options for area high school students. Delta College plans to offer general education classes as well as focus on certificates which serve local business needs. There will also be an option of completing an associate’s degree while attending classes within the Saginaw Center. Delta College focuses in particular on skilled trades and other career training options to get students and residents into the workforce. A new Saginaw Center will create a launching point for residents to enter the educational pipeline, thereby preparing them to gain the skills needed to enter the workforce. There is a strong medical community in Saginaw and Delta College provides training for a high number of medical professional positions, such as: nurses, physical therapy assistants, radiography, diagnostic sonographers, surgical technology assistants, and respiratory care specialists. A downtown Saginaw center would allow local residents to complete the basic classes needed to enter these high paying fields, building a pipeline of class sequences that feed into further education and use of Delta’s recently renovated state of the art Health Professions Building on its main campus. Delta College can positively impact the future by supporting economic development in Saginaw, which has a larger than normal population facing chronic unemployment. We can bring educational opportunities closer to the residents, thereby assisting citizens to access education, training and employment opportunities. As the United States moves from an industrial age to an information age economy, the effect on student enrollment patterns is significant. Today, the College has an annual enrollment of over 13,500 students in academic programs, as well as community education and corporate services offerings. Most students are part-time rather than full-time, the majority are working, and many are in their 30's and 40's, balancing family responsibilities and work schedules with their educational pursuits. Students are in and out of the College, completing initial occupational training for entry into the workforce, frequently returning to the College as job requirements change and new skills are needed to be successful. Employers now count on Delta College to provide their employees with new skills as technology changes. This has put demands on the College to offer quality educational services at non-traditional times and locations, and to deliver services in an efficient, cost effective manner. In recognition of this change in society from an industrial-age to an information-age economy, and the demands this places on individuals to learn and then re-learn throughout their careers, the Delta College Board of Trustees approved a vision statement to guide the College into the future: Vision – At Delta College, our vision is to be our "Community's first choice to learn, work, and grow." Delta College is a learning centered institution that focuses on the diverse post-secondary learning needs of the community. The College provides quality learning opportunities and recognizes learning can take place 24 hours a day, every day, in and out of the classroom, and on and off campus. Learning is our primary measure of success. Delta College’s facilities and infrastructure are a key to achieving the vision and providing students with the competitive edge they will need to be successful in the future. Off-Campus Centers are a vital link between Delta College and the community. Centers serve as “partners” with the local community. This is especially true in Saginaw. In Fall 2015, 35.9 percent of our Saginaw Center students were first time Delta College students. For many Saginaw residents, the Delta College Saginaw Center means access to higher education. Enhancing our Saginaw Center will enhance the access to higher education and the learning opportunities for this community.

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3. How does the project support investment in or adaptive re-purposing of existing facilities and infrastructure? Over the last 40 years, the population of Saginaw has declined by almost 46 percent. This population loss has contributed to neighborhood disinvestment and wide-scale property vacancy, with approximately 25 percent of the city’s land area now vacant. Like many communities throughout the United States, Saginaw has faced the challenge of returning vacant properties to productive use. City leaders are optimistic that a new economic future for the city is not only possible, but probable. The economy in the Great Lakes Bay Region – including Saginaw - is adding new jobs in skilled trades and healthcare fields. The Washington Avenue corridor (an area between Saginaw City Hall and downtown Saginaw) has been transformed into a health services corridor as new businesses such as the Michigan Cardiovascular Institute have located there. Anchor institutions in the city, particularly Covenant Hospital, are investing in community and social services in city neighborhoods, and businesses and developers are slowly reinvesting in the downtown. City leaders are aggressively trying to attract new businesses in these emerging industries. As an older, manufacturing city, Saginaw now deals with an extensive, underutilized infrastructure. In partnership with the Saginaw County Land Bank, the city has begun reusing vacant parcels, which is intended to stabilize neighborhoods. Delta College has worked closely with the City of Saginaw, Saginaw Future Inc. and the Saginaw Land Bank to conduct an assessment of multiple parcels of available land within the tight confines of the downtown Saginaw area. Working with external planners from SmithGroupJJR, Delta College analyzed the parcels, with an assessment that included: parking, public safety, ownership, readiness (acquisition/demolition), zoning, historic use/encumbrances, acreage, and utilities and infrastructure (water, sanitary, storm, gas, power and telecomm). Delta’s goal has been to utilize current infrastructure assets, thereby minimizing or eliminating our need to invest dollars for those purposes. This assessment has led to the identification of 2-3 key sites, and contract language is now being negotiated. The City has assured Delta College that the infrastructure needed for a new Saginaw Center – sewer, electrical, water, streets, etc. – are all in place. They have also committed to helping to relocate any current systems to accommodate a newly constructed facility.

4. Does the project address or mitigate any current health/safety deficiencies relative to existing facilities? If yes, please explain. The only life/safety deficiency associated with our current leased facilities, a 1950's elementary school, is the lack of a fire supression system and an outdated fire alarm system. Our new facility would include a fire supression system and an up-to-date fire alarm / speaker message system. However, when assessing the feasibility of a new building within the downtown Saginaw area, all sites were reviewed with student safety in mind. Walkability between the building and STARS public transportation, as well as the lighting and safety of all areas surrounding the building for parking – both on-site and off-site options – have been viewed and rated with the overall health and safety of employees and students top-of-mind. Additionally, the acquisition of a new location has at times presented itself with a possible building or structure, which could potentially be renovated. When viewing those options through the health and safety lens, we have found no facility which could be renovated and retrofitted to appropriately ensure the welfare of those who would be visiting the facility. Or, if it was possible, the estimated cost to do so would far outweigh the educational value we would gain.

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5. How does the institution measure utilization of its existing facilities, and how does it compare relative to established benchmarks for educational facilities? How does the project help to improve the utilization of existing space and infrastructure, or conversely how does current utilization support the need for additional space and infrastructure?

Delta College measures utilization of existing facilities by continuously adding, changing and removing course offerings based upon student demand and available physical space. The college targets a minimum 60% fill ratio on all sections. Each semester close attention is paid to using the existing facilities as efficiently as possible by following a College-wide block schedule that allows classrooms to be utilized to the highest efficiency as possible. In Fall 2009, 181 courses (8.9%) were scheduled out-of-block. In Fall 2015, only 84 courses (7%) were scheduled out-of-block. The College will continue to use the measure of out-of block courses as one way to monitor and improve facility utilization . The goal is to only schedule courses out-of-block when it is essential to do so, for example in healthcare and science courses that meet for a greater number of hours. Through the full assessment performed by SmithGroupJJR, Delta College has determined it’s need for space within a future Saginaw Center facility. The expertise they offered in measuring current space utilization has allowed us to plan for the near term needs of the educational spaces, including classroom, laboratory, office and study space. But, they have brought to us the changing trends in technology and educational space design from a national perspective, allowing us to plan spaces that are not only of high quality, but will also allow for flexible repurposing over time, as needed. This has been especially helpful in how we think about the need for “computer labs” and “library/information technology” spaces. This project will improve utilization of space and infrastructure by providing an environment that allows a larger variety of courses and the opportunity for complete Associate Degrees and Certificates to be offered in the Delta College outlying community. It will also accommodate the need for staff spaces, allowing maximum interaction with students, but also retaining flexibility in the design of those office areas. Finally, the study and review done by SmithGroupJJR, has brought Delta College to the belief that there will be many partnerships to be gained through our move to the downtown Saginaw area. This will be accomplished through the use of lecture and stage space at the Temple Theater, Dow Event Center or Saginaw Arts & Sciences Academy. We are also in discussions with the Saginaw Arts Museum to share artist space, and with SVRC, which has purchased the old Saginaw News building to repurpose as an indoor Farmer’s Market. And, both Covenant HealthCare and St. Mary’s Medical Center, along with the CMU Medical School, offer opportunities to share learning spaces. Understanding of these potential future partnerships has affected how we will design our proposed new facility, allowing us to minimize a duplication of those types of shared spaces, which we can use collaboratively with others in the downtown area.

6. How does the institution intend to integrate sustainable design principles to enhance

the efficiency and operations of the facility? Delta College is committed to promoting learning, actions, and practices that incorporate social, environmental, and economic sustainability in our communities. As an educational institution, we have the opportunity to share in our knowledge that the choices we make have impact on the environment, our own health and quality of life. Delta College has established itself as a leader in environmental responsibility by engaging in and demonstrating sustainability practices that enhance the life-cycle of its infrastructure, materials, and equipment. The College is committed to designing and constructing all new buildings, including major renovation projects, to meet or exceed LEED Silver standards whenever possible with consideration to program needs and budget parameters. Sustainable principles include those elements of planning, design, and construction that promote the efficient use of energy and material resources, water conservation, and the protection of land and water environments.

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Projects utilizing this approach will use the LEED process and rating system to the greatest degree possible within principles of efficient use of financial resources. Additionally, we will establish methods to achieve measurable life-cycle cost savings. The Saginaw Center building project will allow us to actively seek innovative technology to achieve these objectives. The proposed “Saginaw Center” will be designed to the highest level of sustainable standards, with an eye toward LEED Platinum level certification. Over the past decade, energy improvements made at Delta have led to a reduction of nearly one-third in our annual electricity and gas usage. Clearly Delta College knows how to integrate sustainability to enhance the efficiency and operations of our facilities. Recently, Delta College finished a complete renovation of its Health Professions Building, with financial support from the state of Michigan. After completion, the project was designated as a LEED Gold standard building. This required a revamp of the entire interior, prompting the demolition of nearly all of the building’s interior walls, minus the circulation corridors. The project recycled virtually all of the demolished interior masonry and drywall and metal stud walls. The demolished masonry was even reused as a base for road construction. Through an aggressive construction waste management program that recycled 95 percent of the debris leaving the site, the College diverted cardboard, wood, concrete, masonry, metals, carpet and ceiling tile from a landfill. We removed and palletized the old carpeting. It was sent to a factory, the carpet was sheared from the backing and the fibers were melted down and recycled back into new carpet product. The ceiling tile was returned and taken back to one of the ceiling manufacturers. Even the copper wiring of the former electrical system was recycled. Delta was able to achieve maximum points in recycled content and in regional materials on its LEED application.

7. Are match resources currently available for the project? If yes, what is the source of

the match resources? If no, identify the intended source and the estimated timeline for securing said resources? Delta College’s Saginaw Center project is estimated to cost $12,739,000 and has been an important component of Delta’s long range capital plan for many years. Based upon that figure, the required college match and the state cost participation would each be approximately $6,369,500, which falls under the $10 million category. College match resources are fully available and designated within current Plant Fund reserves. The college is fully prepared to provide the matching funds for this project immediately. This pool of available dollars is the result of judiciously transferring $1,000,000 annually from our General Fund operating budget, to use for state of Michigan capital matches on projects. The general philosophy of the College has been to issue debt only when a very compelling case to do so can be made. Delta carries no current outstanding debt, which provides flexibility in the event that funds are needed to provide the cash flow requirements of the Saginaw Center project. Delta College’s current taxable valuation is $11,410,601,764. The Community College Act establishes debt capacity as 1½% of the first $250,000,000 of taxable valuation plus 1% of the excess over $250,000,000 of taxable valuation. This means the College has the legal capacity to carry debt of up to $115,356,018, which is fully available if needed.

8. If authorized for construction, the state typically provides a maximum of 75% of the

total cost for university projects and 50% of the total cost for community college projects. Does the institution intend to commit additional resources that would reduce the state share from the amounts indicated? If so, by what amount? Delta College’s Trustees have operated under the philosophy that we shouldn’t build or obligate the taxpayers to a debt, which is why we hold no bonding and are debt free. Additionally, we have a strong operating fund

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balance and are currently able to provide the 50 percent match funding required through the legislative process. By strategically planning and reviewing our annual maintenance project requirements, we may be able to exceed the 50 percent figure, if that would be advantageous to the state of Michigan. Although it would affect other needed maintenance projects on campus over the longterm, we strongly believe in this project and would rebalance our internal funding equation in order to work with Michigan’s legislators.

9. Will the completed project increase operating costs to the institution? If yes, please

provide an estimated cost (annually, and over a five-year period) and indicate whether the institution has identified available funds to support the additional cost. We estimate that the first year operating cost for the new 35,000 square foot Saginaw Center will be approximately $36,000 greater then the cost to operate our existing 21,500 square foot leased facility. The following projected annual operating costs are based on current actual costs experienced by Delta College for its other facilities. Cost per Square Foot Total Utilities: $1.651 $ 57,799 Insurance: $0.459 $ 16,065 Janitorial/Maintenance: $1.848 $ 64,676 Security: $0.681 $ 23,848 Total Projected Annual Cost $162,388 Total Projected cost over a five-year period assuming 3% inflation $862,140 The cost to operate the new Saginaw Center will be included in our annual General Fund operating budget, which will require adjustments to other areas of the college to cover the additional cost.

10. What impact, if any, will the project have on tuition costs?

Delta College strives to provide high quality instruction and education services at a reasonable cost and our tuition remains the lowest of any higher education institution in the Great Lakes Bay Region. Since the College does not have any debt, there are no bond payments, which would require annual funding from our operating budget to maintain fiscal obligations. At Delta College, budget decisions are made using a holistic approach, without using tuition increases to fund individual projects, as evidenced by Delta’s tuition rate being currently below the state average for community colleges. We are confident we could sustain this new facility without new fiscal burdens being added, and without a negative impact on student tuition. Delta College has built the cost of occupancy for its current leased facility within its annual operating budget.

11. If this project is not authorized, what are the impacts to the institution and its

students? We feel our “Saginaw Center Project” meets the state’s capital outlay evaluation criteria, and strongly believe this request will economically impact Saginaw. It will help Delta College meet its mission of preparing students for an ever changing job and educational future and is an essential part of our region’s recovery and rebuilding efforts. Over the past decade, Saginaw has had high rates of poverty, unemployment and crime. Working with Governor Snyder, Saginaw has made tremendous progress in reducing crime and creating economic

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development opportunities for our residents. We believe that the Delta College Saginaw Center will help reduce all three of these barriers and provide a path to meaningful employment and a better way of life. The Delta College Saginaw Center will be part of the Downtown Saginaw area revitalization that is taking place. Collaborative efforts have brought and retained hundreds of jobs in Downtown Saginaw including 250 new jobs at AT&T, a $5 million investment in the Bancroft and Eddy market rate apartment complexes, new restaurants, retail and coffee shops, the newly constructed FirstMerit Bank Event Park and the location of the CMU College of Medicine. With the enrollment expected to reach 1,125, the Delta Saginaw Center will have an enormous economic impact and add to the vibrancy of Downtown Saginaw. Through our assessment with SmithGroupJJR, we have identified over 27,000 residents, within a 2 mile radius of the center of downtown Saginaw, which are high school graduates with no college education. This is a huge number of potential students for Delta College, and a huge number of residents who could see improvement in their employment options by pursuing an education with Delta. However, this portion of our region has individuals who may not see themselves as college ready, which makes it so important for us to bring their first college experience closer to where they live. The economy of the Great Lakes Bay Region is dependent upon having educational resources available to students, employees and organizations. Without a Saginaw Center facility, Delta College will not be able to provide educational assistance to students experiencing both generational and situational poverty. Delta College’s service area within Saginaw has a significant number of low-income low-skilled individuals, with plenty of evidence of the need for further educational attainment. The median household income in Saginaw County is $42,331, while the national average is $53,046; however, the city of Saginaw has a median household income of $27,701. According to the Michigan Department of Technology, Management and Budget, the unemployment rate in Saginaw County is 6.2 percent, while the national average is 5.2 percent; however, the city of Saginaw is at 8.7 percent. High school completion is a measure of readiness for citizens to be able to seek employment, and the Saginaw area is well below average in this regard. Students in Saginaw County complete high school at a rate of 87.0 percent, while in the city of Saginaw, the rate drops to 77.8 percent. And, while the poverty rate in the United States is 15.4 percent, in Saginaw County it increases to 19.2 percent, or 37.4 percent within the City of Saginaw. There are additional burdens within this particular portion of Delta College’s service area. The Saginaw Intermediate School District (ISD) voted to dissolve and reorganize the Buena Vista district, which sits on Saginaw's eastern edge, under the order of State Superintendent Mike Flanagan and State Treasurer Andy Dillon, back in July 2013.The Saginaw Public School District absorbed the largest portion of the former Buena Vista district and 261 of its students, as well as Buena Vista's five school buildings and central office building. The Buena Vista Schools had been Delta College’s landlord in its current leased elementary school. Now owned by the Saginaw Public Schools, the facilities have been a point of great debate and discussion regarding its sale or demolition. Both the change in ownership, along with potential sale, have added a great deal of uncertainty to our tenancy. It has also negatively impacted our enrollments at that site, with many students citing closure rumors when asked why they didn’t choose to enroll at the Ricker Center location. Delta College has decades of experience in addressing challenges and we fill the educational gap identified by both the community residents and area employers. However, without proper facilities and the technological capacity to meet the emerging educational demands of residents in a cost-effective manner, Delta College will not be able to excel in meeting its educational mission. The Saginaw Center project will provide vastly improved capabilities to meet increasing demands for post-secondary educational training. It will remove the constant rumor of closure at our current leased location. And, through the increase in educational attainment levels, the Saginaw Center would improve the socio-economic conditions in the Saginaw County portion of Delta’s service area.

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12. What alternatives to this project were considered? Why is the requested project preferable to those alternatives? The only alternative to constructing a new Saginaw Center would be to continue to lease other facilities in the service area to offer instruction. For the past 40 years, Delta has been challenged to find an appropriate building and design within the Saginaw community. The search has only led to depressed structures with physical, technical, and aesthetic deficiencies. Thus, in order to provide the Saginaw community and Delta students with quality education, services and a learning environment conducive to educational excellence, Delta College offers a proposal for the construction of a new off-campus center in Saginaw. In addition, the cost to re-purpose, re-design and renovate buildings that are 50-75 years old can exceed the cost to build new, especially when future operating costs are factored in to the equation. Since 1973 Delta has been offering college courses in old elementary and high school buildings in Saginaw. This project is proposed to replace the current 21,500 square feet leased 1950s elementary building in Buena Vista. We are committed to creating a Saginaw Center that provides college level educational opportunities and matches the standards and quality that exist at Delta College’s primary campus. During the past year, Delta College worked with the external planning firm of SmithGroupJJR (with support from Saginaw Future Inc., the Saginaw County Chamber of Commerce and the City of Saginaw) to evaluate the efficacy of reprogramming, expanding, contracting, and/or relocating the Saginaw Center. The evaluation addressed enrollment changes, readiness, program delivery, middle college academy concept, and market-driven asset realignment. Analyzing our community, its citizens and the needs of business and industry reinforced our belief that a new Saginaw Center is an appropriate capital investment at this time. Delta College has reviewed options to address the leased, very old, unusable site we currently occupy. Through that process, we reviewed the viability of repurposing currently available, old buildings. However, our detailed assessment has led us to the decision that a new Downtown Saginaw location would provide the highest accessibility and would offer potential partnerships with other institutions (CMU Medical School) as well as businesses (Nexteer, regional medical facilities, Morley Companies, Merrill Technology, Hemlock Semiconductor). These and other companies that are growing have indicated they would likely look to Delta College graduates as a feeder for new employees. College facilities and infrastructure are key to providing students with the competitive edge they need to be successful now and in the future. We believe it is critical that we offer college students, many of them adults who are investing their own time and money, the opportunity to achieve state of the art training and credentials (certificates and degrees) in a facility designed for this purpose, not a facility designed to teach elementary and high school children. Without proper facilities and the technological capacity to meet the emerging educational demands of residents and employers, in a cost-effective manner, Delta College will not be able to excel in meeting our educational mission. The proposed Saginaw Center project will provide vastly improved capabilities to meet increasing demands for post-secondary educational training and student success. We realize that Capital Outlay dollars are competitive and the process you have wisely put in place will ensure that the very best, most productive colleges will receive high rankings. We believe that Delta College should be one of the projects that receive funding. It is a life-blood to so many of our students in Michigan; has kept a low tuition rate and offers outstanding programs and services.

Delta College Original Date: 09-Oct-96

Saginaw Center Revised Date: 20-Sep-15

Project Definition: Summary Printout Date: 26-Oct-15

Total Total Cost

Priority # 1, Project Summary Construction Project per

GSF Cost GSF

Saginaw Center 34,924 12,739,000$ 364.76$

Area / Program Summary GSF/ Construction Cost/

Area / Program Titles Area Cost/ Area GSF

Saginaw Center 34,924 8,778,000$ 251.34$

Classrooms 10,909 2,455,000$ 225.04$

Science Labs 5,758 2,101,000$ 364.91$

Computer Labs 3,333 912,000$ 273.60$

Mullti Purpose Rooms 8,182 1,741,000$ 212.79$

Support Areas 6,742 1,569,000$ 232.71$

CONSTRUCTION COST 34,924 8,778,000$ 251.34$

TELECOMMUNICATIONS 34,924 140,000$ 4.01$

SITE IMPROVEMENTS & SERVICES 34,924 1,317,000$ 37.71$

FURNISHINGS & MOVEABLE EQUIPMENT 34,924 1,229,000$ 35.19$

PROFESSIONAL FEES, PERMITS, OWNERS COSTS, ETC. 34,924 1,275,000$ 36.51$

TOTAL PROJECT COSTS 34,924 12,739,000$ 364.76$

Saginaw Center Cost Projections Facilities

Delta College Original Date: 09-Oct-96

Saginaw Center Revised Date: 20-Sep-15

Project Definition: Cost ModelPrintout Date: 26-Oct-15

New Group Space Description Existing New Total Total Total Unit Cost Design Escalation Bond Contingency

Space Type Net SF / Net SF / Net Net SF/ Gross New Renovation Special Conditions Subtotal Contingency Cost Bid Constr. Space Area Program

No. Space No. Space Space Area Group Area Const Heavy Medium Light 1 2 3 4 5 New 10% No of Years 10 New 7% Sub-Totals Sub-Totals Total

Bldg TYPE 100% 80% 50% 15% Renovation 15% Rate 4.10% 0.75% 4.00% Reno 10%

Saginaw Center 34,924 8,777,701

23,050

Saginaw Center 0.66 34,924 8,777,701

Total Building Area, Net SF Space 23,050 8,777,701

Classrooms 7,200 2,454,605

Classroom, General Purpose, Smart 0 900 900 n 185 148 92.5 27.8 $166,500 16650.00 10% $90,521 49.42% $2,053 $11,029 $20,073 7% $306,826








0 0 0 n 185 148 92.5 27.8 $0 0.00 10% $0 49.42% $0 $0 $0 7% $0

0 0 0 n 185 148 92.5 27.8 $0 0.00 10% $0 49.42% $0 $0 $0 7% $0

Science Labs 3,800 2,100,788

Classroom, Science Lab 0 1500 1,500 n 300 240 150 45 $450,000 45000.00 10% $244,653 49.42% $5,547 $29,808 $54,251 7% $829,259

Classroom, Science Lab 0 1500 1,500 n 300 240 150 45 $450,000 45000.00 10% $244,653 49.42% $5,547 $29,808 $54,251 7% $829,259

Science Storage 0 800 800 n 300 240 150 45 $240,000 24000.00 10% $130,481 49.42% $2,959 $15,898 $28,934 7% $442,271

0 0 0 n 300 240 150 45 $0 0.00 10% $0 49.42% $0 $0 $0 7% $0

Computer Labs 2,200 912,184

Classroom, Computer Lab 0 1100 1,100 n 225 180 112.5 33.8 $247,500 24750.00 10% $134,559 49.42% $3,051 $16,394 $29,838 7% $456,092

Classroom, Computer Lab 0 1100 1,100 n 225 180 112.5 33.8 $247,500 24750.00 10% $134,559 49.42% $3,051 $16,394 $29,838 7% $456,092

0 0 0 n 225 180 112.5 33.8 $0 0.00 10% $0 49.42% $0 $0 $0 7% $0

0 0 0 n 225 180 112.5 33.8 $0 0.00 10% $0 49.42% $0 $0 $0 7% $0

Mullti Purpose Rooms 5,400 1,741,443

Multi Purpose Room A 0 1800 1,800 n 175 140 87.5 26.3 $315,000 31500.00 10% $171,257 49.42% $3,883 $20,866 $37,975 7% $580,481

Multi Purpose Room B 0 900 900 n 175 140 87.5 26.3 $157,500 15750.00 10% $85,628 49.42% $1,942 $10,433 $18,988 7% $290,240

Multi Purpose Room C 0 1800 1,800 n 175 140 87.5 26.3 $315,000 31500.00 10% $171,257 49.42% $3,883 $20,866 $37,975 7% $580,481

Conference Room A, Similar to H101 0 450 450 n 175 140 87.5 26.3 $78,750 7875.00 10% $42,814 49.42% $971 $5,216 $9,494 7% $145,120

Conference Room B, Similar to H101 0 450 450 n 175 140 87.5 26.3 $78,750 7875.00 10% $42,814 49.42% $971 $5,216 $9,494 7% $145,120

0 0 0 n 175 140 87.5 26.3 $0 0.00 10% $0 49.42% $0 $0 $0 7% $0

0 0 0 n 175 140 87.5 26.3 $0 0.00 10% $0 49.42% $0 $0 $0 7% $0

0 0 0 n 175 140 87.5 26.3 $0 0.00 10% $0 49.42% $0 $0 $0 7% $0

0 0 0 n 175 140 87.5 26.3 $0 0.00 10% $0 49.42% $0 $0 $0 7% $0

0 0 0 n 175 140 87.5 26.3 $0 0.00 10% $0 49.42% $0 $0 $0 7% $0

Support Areas 4,450 1,568,681

Office Area, Reception Area, Lobby 0 1300 1,300 n 175 140 87.5 26.3 $227,500 22750.00 10% $123,685 49.42% $2,805 $15,070 $27,427 7% $419,236

Copy / Workroom, similar to Planetarium 0 250 250 n 175 140 87.5 26.3 $43,750 4375.00 10% $23,786 49.42% $539 $2,898 $5,274 7% $80,622

IDF / Telecom Room, twice as large as Planetarium 0 300 300 n 200 160 100 30 $60,000 6000.00 10% $32,620 49.42% $740 $3,974 $7,233 7% $110,568

Kitchen and Support Spaces for Multi Purpose Rooms 0 1800 1,800 n 200 160 100 30 $360,000 36000.00 10% $195,722 49.42% $4,438 $23,846 $43,400 7% $663,407

Coffee / Convienence Store 0 800 800 n 200 160 100 30 $160,000 16000.00 10% $86,988 49.42% $1,972 $10,598 $19,289 7% $294,847

0 0 0 n 175 140 87.5 26.3 $0 0.00 10% $0 49.42% $0 $0 $0 7% $0

Saginaw Center Cost Projections Page 2 Facilities

DELTA COLLEGE – Saginaw

Saginaw, Michigan

Facilities Management

October 4, 2016 Project Schedule

Design and Construction Schedule

Subject: File No. 332/16278PEM Delta College Saginaw Center Saginaw, Michigan

Planning Funding and Authorization Phase

Planning authorizations are usually recommended by the DTMB Budget Office and included in a Legislature (JCOS) approved planning authorization bill.

Legislative planning authorization does not guarantee final State support for the construction of the project.

Cost incurred prior to planning authorization cannot be credited to the project appropriation or total cost.

Planning authorization approved in Public Act 268 of 2016

Public Act 268 of 2016 approved on June 29, 2016

Hire Professional Services Contractor (Architect and Engineers)

Hire Professional Services Contractor (Architects and Engineers) to work with Project Team to prepare final project program, schematic design, preliminary design, construction documents and construction administration

July 1, 2016 to November 8, 2016

Hire Construction Manager / Constructor (CM/c)

Hire Construction Manager / Constructor (CM/c) to work with Project Team, providing cost estimates, constructability reviews, bidding and management during construction

October 1, 2016 to January 10, 2017

Program Statement and Schematic Design Phase:

Professional Services Contractor (Architects and Engineers) to work with Project Team to prepare final project program and schematic design

November 9, 2016 to January 31, 2017

Submit final Program Statement and Schematic Design to SOM-DTMB-FA

If submittal is acceptable, the DTMB-FA recommends the Program/Schematic Design Submittal to the Budget Office for submission to JCOS for approval.

If approved through JCOS, the Total Project Cost is included in an appropriations act to provide for final design planning and construction.

After passage of the appropriations act, the DTMB-FA authorizes the College and Professional Service Contractor to proceed to the Preliminary Design Phase.

February 1, 2017 to May 31, 2017

Preliminary Design / Design Development Phase

Professional Services Contractor (Architects and Engineers) work with Project Team to further define the project, continuing the direction established during the Schematic Design.

The Preliminary Design provides more detail and definition of the project.

February 1, 2017 to May 15, 2017

Submit Preliminary Design to SOM-DTMB-FA for review

When review is completed and if approved, the DTMB-FA authorizes the College and Professional Service Contractor to proceed to Final Design / Construction Documents.

May 16, 2017 to June 30, 2017

Final Design / Construction Documents Phase

Professional Services Contractor (Architects and Engineers) work with Project Team to further define the project, continuing the direction established during the Preliminary Design.

The Final Design and Construction Documents document the project to the level of detail required for effective bidding and construction and form the basis of the construction contract.

May 16, 2017 to October 15, 2017

DELTA COLLEGE – Saginaw

Saginaw, Michigan

Facilities Management

October 4, 2016 Project Schedule

Submit Final Design / Construction Documents to SOM-DELEG Bureau of Fire

Safety and Frankenlust Township for fire safety and building code plan review

If SOM-DELEG Bureau of Fire Safety identifies any issue, they will usually issue a “Notice to Proceed” and require the documents be revised and resubmitted for record. Inspections are required during construction and prior to occupancy.

City of Saginaw may also provide building code review comments that will need to be incorporated in the documents before the Building Permit will be issued.

October 16, 2017 to November 30, 2017

Submit Final Design / Construction Documents to SOM-DTMB-FA for review

When review is completed and if approved, the DTMB-FA authorizes the College and Professional Service Contractor to proceed to bidding the project.

October 16, 2017 to November 31, 2017

Bidding, Award and Contract Phase

Proceed with bidding the project. Construction Manager / Constructor (CM/c) secures multiple bids for various trade packages.

Submit the tabulated results of all bidding, including all bidders to SOM-DTMB-FA for review.

If bidding results are acceptable, the SOM-DTMB-FA authorizes the College to award the construction contract.

November 15, 2017 to January 31, 2018

Construction Phase

During construction, beginning with the first construction contract, the College is required to submit monthly reports detailing construction progress, encumbrances, change orders, schedule and expenditures to the SOM-DTMB-FA.

The College will be responsible for paying all expenses with SOM reimbursement starting after we exceed fifty percent of the project cost.

SOM reimbursement will not be available until SBA funding has been approved.

January 15, 2018 Award Construction Contracts March 1, 2018 Start on site construction (depending on weather)

Lease and Bonding Phase

Funding for Construction-in-Progress: The SOM-DTMB-FA will notify the State Building Authority (SBA) of the start of construction. After notification, SBA prepares the Project Lease which will require extensive documentation and approvals. Once completed the SBA will issue short term bonds to provide construction cash flow with final bonds being issued after the project is completed,

March 1, 2018 to October 2019

Move-in / Occupancy

Prior to occupancy, secure final fire safety and building code inspections and approvals

Certificate of Tenantability issued by the Architect

April 1, 2019 to May 1, 2019 May 6, 2019 Spring/Summer Semester classes begin (August 24, 2019 start of Fall Semester classes)