Alexander Hall
At the November Trustees meeting, the Board approved a final scope of work for the Alexander Hall project and authorized the administration to select a contractor to perform the work. The final scope of work includes the structural steel moment framing and related interior wall realignment needed to stabilize the overall structure. The approved scope also includes the following items:
- HVAC installation
- Elevator installation
- Electrical upgrade, and data and telecommunications upgrade
- Replacement of office and common area furniture and signage
- Restoration of interior woodwork and historic finishes in the first floor hallway and north stairwell
Following a Request for Proposal process, Absher Construction has been engaged as the contractor for the project. This project will cost $6.6 million when it is complete.
Since the November approval, the Facilities Management staff has been working with Absher to begin the mobilization of the necessary resources to complete the job. Between now and February, the following tasks are scheduled to be accomplished:
- Demolition and abatement of existing structure to continue on floors two through four.
- Prepare for steel fabrication and erection. This involves laser-scanning the existing structure, inputting the results into the building information model, and coordinating the results with the structural steel provider.
- Construct footings in basement and crawlspace.
- Form, reinforce, and pour new foundations walls in the basement.
Estimated Timeline for the Remainder of the Project
- Install structural steel in March/April.
- Mechanical, electrical, and plumbing rough-in during April.
- Finishes and paint in May/June.
- Install and finish doors, trim, and casework in July.
- Commission the building in August.
- Furnishings installation in late August/first week of September.
- Move back into the building in early September.
This schedule is dependent on no additional surprises emerging during the course of the project. With a building this old, you never know what you might find as you peek behind the walls. I will provide additional updates on the project and calendar if there are any significant adjustments needed.
On a related note, the Seattle City Council is expected to vote on assigning an historic designation to the exterior of Alexander Hall later in January or in February.
New Residence Hall
Construction continues on the new residence hall with the fourth and final floor of living space beginning to go up over the next two weeks, and roofing to be added in February. At this point, the overall project remains on budget and on schedule for a September 2014 opening.
Bond Closing
The University closed its $85.515 million tax-exempt bond transaction on December 19, 2013. The proceeds of this transaction refinanced SPU’s existing bonds that were outstanding at that time (previously issued to fund construction projects on campus such as Eaton Hall, the Library, and Emerson Hall) and provided funding for the redemption of the Wesley Apartment-related bonds and the construction of the new residence hall. A transaction such as this involves the coordination of a working group of over 20 people, including many external to SPU (e.g., bankers, financial advisors, attorneys), as well as approvals from both the University’s Board of Trustees and the Board of the Washington Higher Education Facilities Authority. SPU was well served by all of the external participants in this transaction. The issuance should be deemed a success both in its execution and financial results.
The primary benefit derived from this transaction is that the University was able to secure very attractive and stable interest rates for the next seven to 10 years. It is anticipated that the total all-in interest costs associated with the bonds during the next seven years will be 3.82 percent. The structure of the bonds and the interest rate secured provides stability and predictability for the debt-service portion of the operating budget throughout the immediate planning horizon.
2013–14 Final Budget
The Trustees approved the 2013–14 Final Budget at their November meeting. The approved budget reflected an increase of $1,976,000 over the 2013–14 Guideline Budget approved last spring. The primary driver for the increase was better than projected enrollment results in both the undergraduate and graduate programs to start the year. In addition to adjusting the tuition revenue expectation for the year, the Final Budget included adjustments to bolster financial aid allocations in anticipation of continued growing need, create staff positions in the provost’s area and in facility management to support initiatives/restructures and project planning; reduce the impact of annual deficits in the operating budget related to adjunct faculty expenditures and University Fund giving levels; and create an Innovation Fund along with other smaller miscellaneous adjustments.
2014–15 Guideline Budget
The 2014–15 Guideline Budget process kicks off in earnest during the month of January and culminates with a recommendation for approval to the Board of Trustees at their February meeting. This is the budget-planning phase in which major factors such as tuition rates, financial aid, enrollment, compensation pools, and operating expense adjustments are evaluated and determined for the upcoming year. The Senior Leadership Team serves as the primary planning committee, but the process includes multiple consultations and discussions with the Faculty Stewardship and Budget and Student Budget Committees along with direct conversations with operating area leadership regarding anticipated financial and volumetric changes in operations.
Craig Kispert
SPU CFO
Vice President for Business and Finance
President’s Update | Provost’s Update | CFO’s Update