UW System wants construction authority

Students in some chemistry labs at University of Wisconsin-Milwaukee can't do experiments with chemicals that give off toxic fumes because the exhaust hoods they work under are only marginally effective, posing safety risks.

Anyone walking through the Chemistry Building may experience another maintenance issue: The supply of air doesn't match the level of exhaust, so the building is regularly under negative pressure, making it difficult to open exit doors.

If the University of Wisconsin System fixed every maintenance issue in every building on campuses across the state, it would cost an estimated $2 billion, according to a new report.

That's twice as much borrowing as what the state says it needs to repair roads.

Like the typical homeowner, the UW System has a number of repairs on its "to do" list — some small, some large. Most do not need to be done right away. But the backlog of projects is growing, including projects to fix safety issues. UW System officials say they don't want to fall behind on projects they've been planning for years, due to lack of state funding.

UW-Milwaukee is seeking $7 million of the UW System's total $713.3 million capital projects request in the next two-year state budget to repair and renovate the Chemistry Building, which was erected in 1972 and still has the original building systems.

Several UW System campuses have residence hall renovations on the table.

In addition to the $713.3 million capital projects request, the UW System is asking the state to give the Board of Regents authority to manage projects that are funded by program revenues. Projects involving residence halls, recreational facilities and student unions that generate their own money and do not involve state funding.

It's a flexibility that has been debated since the mid-1990s, when regent Margaret Farrow was a Republican state senator.

"They delay things unnecessarily," Farrow said of the state Department of Administration, which manages all capital projects for state agencies including UW System campuses.

"It's a matter of priorities. They have other fires to put out," she said. "We are not being as efficient, much less as accountable, as we can be."

Farrow believes costs can be cut and many capital projects can be managed on a more timely basis by the UW System.

She and other UW System officials say the changes would help the UW save students and taxpayers money.

Consider two recent residence hall projects:

One was built by the state at UW-La Crosse and one was built privately at UW-Platteville. The UW-Platteville residence hall was completed 18 months faster than the UW-La Crosse residence hall and for $3.6 million less, a savings of $600 per year per student, according to David Miller, the UW System's senior vice president for administration and fiscal affairs.

Like public universities in other states, about 65% of buildings on UW campuses were constructed in the 1960s and 1970s with an intended lifespan of 30 to 40 years. University officials say renovations are needed to replace worn-out building systems, and spaces within buildings must be reconfigured to meet changing academic program needs.

The UW System's capital budget request of $713.3 million for the next two-year state budget would cover 26 major projects; other maintenance, repair, and renovation projects; funding for reconfiguring instructional spaces to meet current needs; and planning funds for three projects.

The proposal for UW System to manage its own program revenue supported projects such as residence halls also will be considered during the state's budget deliberations next year.

Under the proposal, the Legislature would authorize a bond ceiling, and the State Building Commission would release the bonds in amounts requested by the university.  State Department of Administration bonding staff would handle the sale of revenue bonds, while the university would manage the projects.

That process already is used by the state Department of Transportation to secure bonding for roads.

For every building or renovation project on a UW System campus — as well as projects for other state agencies — the state takes 4% off the top to cover the costs of managing it. The Division of Facilities Development within the state DOA provides architectural, engineering, project management and other services.

That process is inefficient and increases building costs and time-to-completion, UW officials have argued for years. They say the UW can do it better.

DOA communications director Steve Michels disagrees.

"Our services and technical expertise go well beyond project management, and it is difficult to imagine any agency or entity in state government could deliver a similar range of constructions services without hiring additional staff," Michels said. "The nature of DOA-DFD’s shared services also allows us to find savings across projects that all of state government, including the UW System, benefit from. "

The 4% that goes to the state to manage projects does add up.

For the upcoming $46.99 million Witte residence hall renovation at UW-Madison, the state's share to manage the project is $1.79 million. Another $2.79 million will be paid to private contractors for architectural and engineering design.

The state will collect $1.17 million when UW-Eau Claire renovates both wings of Towers Hall — a residence hall project expected to cost $32.97 million.

Concerns have been raised in the past that the fees paid to the state exceed the value of the services provided.

"While we are always looking for ways to improve the process, the current system offers a check and balance to effectively deliver complex construction projects," Michels said.

Buildings on UW System campuses represent approximately 65% of all state facilities, and university projects typically account for about 70% of the state’s capital budget.

There are four phases of a building project: planning; design; construction; and operation. Under current law, the Board of Regents is responsible only for the final phase, and the decision-making authority for the rest falls under DOA. UW institutions work with DOA in the planning, design and construction phases.

Universities in most other states are either completely or partially responsible for the planning, design, and construction phases of capital projects, according to UW System officials.

"I don't think the DOA is proving its value to the UW System," Farrow said. "I can't justify something remaining there just to keep jobs and certain budget lines if there's a better way to do it."

A new residence hall at UW-Whitewater that stalled for years in Madison is a classic example of a project that was not managed by the DOA in a timely manner, Farrow said. "There were permits sitting on a desk to build the Whitewater dorm, and they needed it open this year."

That project was back on track for groundbreaking after regents complained about it during an August meeting, though the timing of the governor’s final signature to move it forward was pure coincidence, according to Michels.

Michels said Secretary Scott Neitzel met personally with UW-Whitewater's chancellor "and the project has consistently moved forward."

At the very least, officials say, the UW System needs a steady funding stream to keep pace with building maintenance work.

"The majority of our buildings are in pretty good physical condition," Alex Roe, the UW System's associate vice president for capital planning and budget, said at a recent Board of Regents meeting.

"We want to ask for and undertake a reasonable amount of work each year," she said. "Our feeling is if we can stay on a steady path with committed funding, we can plan for and renovate. Our first choice is how can we make what we have work better."