In attendance: Board Chairman John Ramil and members Carole Philipson and Kelly Underhill; Preston Mercer, Corporate Secretary and Cynthia Visot representing President Judy Genshaft and Lorie Miros.
Absent: John Frost.

Chairman Ramil opened the meeting by identifying himself and requesting others connected to the conference call to identify themselves.

Dr. Mercer indicated to the participants that the reason for calling the emergency meeting was to brief the Board members regarding the first request to the Florida Legislature for PECO funding for the new USF Lakeland campus site on the Williams Company donated land. The initial funding request of $3.7M will be used for mitigation, environmental issues, and road access on the property inn the 2004-05 session. The following year the request would be $3.2M for planning the first phase. The 3rd and 4th year requests will be for $21M or $22M respectively. Prior to construction of the first building $19M or $20M will be required for infrastructure. Once the second of these two large PECO requests is funded the first building can be constructed and occupied. Chairman Ramil indicated that what the Board would need to approve today is the first phase of funding but Dr. Mercer did indicate that the request the following years may need to be adjusted. After this series of funding requests have been realized, the PECO requests in following years will be for buildings since the infrastructure, for the most part, will be in place with approval of the 3rd year funding. Chairman Ramil confirmed with Dr. Mercer that the Board’s approval today would begin the process to initiate the development of the property.

Board Member Carole Philipson asked how many students could be served with the first building. Dr. Mercer indicated that the 100,000 sq. ft. building would serve about 2,500. Dr. Bernard Mackey was in attendance to offer detailed information about the request for funding and agreed that Dr Mercer’s estimate of 2,500 students was accurate but indicated that the number may be higher given some statistics that he then presented to the group. Currently USF Lakeland has 33,000 sq. ft and the new joint use facility will add another 33, 000 sq ft for a total of approximately 66,000 net sq. ft. That does not include any of the building or non-building infrastructure because PCC, as owner of the facility, takes care of that. The 100,000 sq ft on the new site might be in more than one building. By the end of this calendar year the master plan should be complete and this will clearly defined at that time. In the early stages of the land acquisition process, the thought was that in the first phase of the 130 acre tract the anticipated student head count would be estimated at 9,000 students with about 300,000 sq ft. The first set of buildings would capture about 3,000 head count, or a third of the initial phase of 9,000 students. Ultimately the campus should serve about 15,000 students but in the first phase, that first building would allow the campus to handle about 3,000 students.
Ms. Philipson asked if student head count estimates should be included in the initial request before the Board today. Dr. Mackey indicated that at this stage this information would not be asked for. Other documents and processes that would be developed during the normal course or events and the information would be documented in a different format. When the building program document was presented for the joint use facility many of those details were captured there. This initial request for PECO funding in the amount of $3.7M will be used to develop the first needs for the entire campus over a 3 to 5 year period. The master plan will be complete by the end of 2004, even before the next legislative session begins in which this PECO request will be considered. PECO requests are an annual process and by the next request timeframe, we will request the second year funding next year, and the information will be more refined and better data will be available when the request is updated for the next request and on an annual basis thereafter. The Board will be involved in this series of PECO requests for the new campus every year and will be involved in the information update as well. Chairman Ramil indicated that the information today is the best estimate at this time. Dr. Mercer told the Board that the campus is now in the process of making 10 year projections, one of several activities going on at present, which will help define the succeeding year requests. Dr. Mackey directed attention to the 2-page narrative which describes the year by year funding needs and the purpose of each of those years (document attached and incorporated in these minutes). In 2007-08 the $20.17M is for construction of the initial infrastructure spaces defined as non-building spaces. These funds to be utilized above and below ground will need to be in place before the first building can be constructed. This figure would include site work, utility connections, utility corridors, entrance roads from the door of the campus through the campus, and storm water retention. In 2008-09, or Year 4, would be the request for $21.2M which is directly associated with the first building or set of buildings. The summary sheet indicates that the cost per gross square foot of space, understand that those ratios, particularly the $141.42 per sq ft relates only to the $21.2M for the actual building spaces and not to the infrastructure which is non square footage space. In the far right column the total project ratio is indicated as project cost per gross foot of $343 and captures all of what would be spent in the $51.4M. Chairman Ramil wanted to make sure that this request met all the requirements for this type of PECO funding and meets the deadlines for submission. He was assured by Dr. Mackey that careful research had been done by USF Lakeland in concert with USF facilities personnel in the office of facilities planning and construction, and that office is where this request will be directed once the Board has given its approval to submit the request by 5 p.m. tonight. President Genshaft, Vice President Carlucci, and the UBOT will be involved in moving this request forward as well. Dr. Mercer told the Board that Senator J. D. Alexander has requested that this first PECO request be submitted so that it can be considered at the next legislative session. The Board was assured that Dr. Mackey’s tenure with the state and with the university gives him the knowledge and experience needed to submit this type of funding request and Dr. Mercer indicated that he has confidence is the appropriateness and adherence to the process.

Chairman Ramil told the group that he had had conversations with Dr. Mercer and with the attorney that is assisting USF Lakeland with the Williams Company land donation and mentioned that each site had premium cost ranges associated with the sites and the site that was chosen was one of the lowest in terms of cost for roads and environmental mitigation. What Williams Company has proposed that the $3.7M be paid to them and they would then complete the mitigation for that amount, even though the cost may be higher. Florida Gulf Coast University required about $10M for mitigation. That would take the University out of the risk taking process and transfer that risk to Williams Co. at a cost figure that is right in line with what we used in making the initial judgment to adopt the site. Mr. Ramil has been assured that when the documents are drawn up the cash will not flow from USF to Williams Co. until the appropriate time and it would cover the $3.7M in costs for USF Lakeland’s benefit. Dr. Mercer shared with the group that the interchange will be built by the Florida Department of Transportation and the cost will be borne by that department. Attorney Charles Gray worked with the University on this and Tim Johnson, the attorney assigned to the project, followed up with the Florida Department of Transportation. The Interchange will be built in the next three to four years and this would be about right based on the funding requests before the Board today. Dr. Mackey reminded the group that the $51.4M request only covers the first building and next year additional requests will be made to continue to roll out the campus on a regular basis, guided by the University and by our legislative representatives and senators in moving through this process. Originally PECO funding for the phase one of the campus might be in the neighborhood of $140M out of which this first $51.4M would come. Construction costs frequently increase over time so the $140M figure will probably increase over time.

Chairman Ramil then called for a motion to approve the initial PECO request of $3.7M to cover mitigation and some infrastructure on the new campus site at I-4 and the Polk Parkway. Carole Philipson so moved and Kelly Underhill seconded the motion. The vote was unanimous. Chairman Ramil asked Cindy Visot to relay the information to the President, who was unable to attend via conference call, from the meeting today and if she needs additional information to contact Mr. Ramil.

There being no further business before the Board, the meeting was adjourned.

Minutes taken and transcribed by Lorie Miros.