A G E N D A - University of South Florida

Board of Trustees Finance Committee

Thursday, January 19, 2017 1:30 - 2:45pm

Tampa Campus - Marshall Student Center Room# 3707

Trustees: Brian Lamb, Chair, Mike Carrere, Scott Hopes, Stan Levy, John Ramil Faculty Liaisons: Dipayan Biswas, Carl Pacini, Ninon Sutton

Foundation Board Liaison: Alan Bomstein Vice Presidents: John Long and Nick Trivunovich

Staff Liaison: Gina Lombardi

A G E N D A

I. Call to Order and Comments Chair Brian Lamb

II. Public Comments Subject to USF Procedure Chair Lamb

III. New Business – Action Items

a. Approval of November 17, 2016 Meeting Notes Chair Lamb

IV. New Business – Information Items

a. Supplier Diversity Update University Controller Jennifer Condon

b. Tampa Housing Update Asst. Vice President Ana Hernandez

c. Construction Update Vice President Calvin Williams

d. USF 2016 Audited Financial Statements University Controller Jennifer Condon

V. Adjournment Chair Lamb

Next Scheduled Meeting: February 16, 2017

Board of Trustees Finance Committee - Meeting Agenda

1

http://www.usf.edu/system/documents/board/general/public_comment_procedure.pdf

DRAFT

USF Board of Trustees Finance Committee

NOTES Thursday, November 17, 2016

Tampa Campus - Marshall Student Center Room# 3707

I. Call to Order and Comments

The meeting of the Finance Committee was called to order by Trustee John Ramil at 1:17 pm. President Judy Genshaft called roll with the following committee members present: Brian Lamb (phone) Mike Carrere (phone) Scott Hopes Stan Levy John Ramil A quorum was established. The following liaisons were present: Dipayan Biswas, Alan Bomstein and Ninon Sutton. Trustee James Garey was also present.

II. Public Comments Subject to USF Procedure

No requests for public comments were received. III. New Business – Action Items

a. Approval of October 27, 2016 Meeting Notes

Upon request and receiving no changes to the draft meeting notes, Chair Lamb requested a motion for approval, it was seconded and the October 27th meeting notes were unanimously approved as submitted by all committee members present.

IV. New Business – Information Items

a. Annual Foundation Investment Report

Chip Newton, Chair of the USF Foundation Investment Committee, and Mark Brubaker, Managing Director, Wilshire Associates, presented the Annual Foundation Investment Report. The USF Foundation recently closed fiscal year 2016 with about $505M in total assets under management, of which $395M are restricted endowment assets. The Foundation’s investment objective is to preserve the intergenerational equity of endowed gifts while providing a consistent source of funding to University programs, faculty, and students.

Board of Trustees Finance Committee - New Business - Action Items

2

DRAFT

The Endowment Pool posted a return of -1.3% for the fiscal year, which was under its policy benchmark of +0.1%. Weak performance from domestic and international equities was partially offset by positive returns from fixed income and alternatives. The fiscal year return is expected to rank near the median among peers, but the USF endowment performance remains near the top in long-term returns. Contributors include the endowment abstaining from investing in hedge funds (a detractor for many peers) and the private equity program produced strong returns in FY 2016 (fixed income provided downside protection in a down year for equities). Detractors include two US large cap managers underperformed by a significant margin and international equity was -9.7% (the worst performing asset class in the portfolio; and significant losses from the Brexit vote just before fiscal year end). Results for first quarter of fiscal year 2017 show the endowment up 4.9% as global equity markets stabilized and active managers in US and international equity have rebounded. NACUBO is the primary benchmarking tool. Investment returns place USF Foundation at the top quartile in all time periods. Our returns have been good relative to peers. USF Ranked #18 out of 258 in the $100-500M peer group in 10-year return and we are expecting FY 2016 return of -1.3% to rank near the median, based on preliminary results. USF has the third largest endowment among institutions established in the 1950’s and 1960’s. Over the last 10 years, approximately $90M in outright cash gifts were added to the endowment. Approximately $25M is due from state match and $17M due from donor pledges. Endowment spending policy is set by the investment committee and approved by the board. Distributions to the University reached nearly $16.6M in FY 2016; over $152M in last 10 years. FY 2017 spending rates set for a 4% dividend and 2% administrative fee, unchanged since FY 2010. Expecting a modest increase in distributions for FY 2017, as a function of an increased 5-year average. There are many challenges in a low return environment. Asset allocation is set for long-term growth through multiple market cycles. Expected returns from most asset classes have been reduced over last several years. Wilshire does not advise making asset allocation changes based on short-term market conditions. Lower inflation expectation mitigates lower expected returns, therefore protecting intergenerational equity. Investment committee initiatives for 2017 include considering alternative asset classes that provide income, but with low correlation to equities; and asset allocation will be reviewed in February when risk/return assumptions are updated to reflect current market conditions and revised alpha expectations. Chair Lamb noted that past performance of international equity does not support the projections on slide 5 (10-year expected return of 6.5%) and asked if the target allocation of 25% is the highest and best use of funds. Mr. Brubaker stated that going forward, non-US stocks should closely mirror US stocks. The 1990s and the previous decade (ending 2009) is the only time US stocks have outperformed international stocks. The market is becoming more global and we need to be part of it. Mr. Bomstein provided additional information on international activity. The Brexit vote dragged down returns during the period ending 06/30/16, but they have rebounded for the period ended 09/30/16. He further added that we trust our long-term trend expectations and try not to be too reactionary to political changes. We assume an infinite horizon.


3

DRAFT

USF Foundation continuously looks at asset allocation.

b. USF St. Petersburg Housing Update

USF St. Petersburg has been developing an Invitation to Negotiate (ITN) to solicit responses from interested parties to enter into a public-private partnership (P3) agreement with the University to develop a new 550 bed residence hall with a new dining facility and a conference center. The University is seeking a private entity to design-build-finance the new facilities consistent with the University’s objectives. The project has a target date of completion of August 2019. Mr. Trubacz reviewed the ITN schedule and the ITN committee. In addition to our ITN process, the BOG wanted to review the ITN as well, which caused a slight delay, but still on schedule. Phase I responses are due today, and 3-5 finalists will be selected and posted on December 6. Phase II of the ITN process has begun; still looking at August 2019 as the opening date. Mr. Trubacz also noted that the USFSP ITN committee closely mirrors the Tampa committee. Chair Lamb noted that the Finance Committee is involved in this process now because it is part of the System’s P3 strategy. He also wants to see the Strategic Initiatives Committee be involved in this process. Mr. Trubacz would be happy to present to and update the Strategic Initiatives Committee and have the trustees sit in on interviews. Chair Lamb recommended Mr. Trubacz get with Trustee Mullis to see how the Strategic Initiatives Committee can best get involved in this process. He would like for our BOG stakeholders to be involved as well. Trustee Ramil asked Mr. Long and Mr. Trivunovich to guide USFSP thru the process and with other stakeholders.

c. Construction Update

Trustee Lamb introduced the item by stating that we have a large amount of construction going on, probably the most in the last 20-30 years. This may become a standing item as it will allow the Trustees to see progress of approved projects. Mr. Williams provided an overview of the USF System physical plant construction, maintenance, and repair programs. Mr. Williams reviewed the data analysis provided by Sightlines (a company specializing in education facility solutions, recommended by the BOG to all SUS institutions) on deferred maintenance. Based on our facilities replacement value of $2.1B, our annual investment target should be $65.9M (for core and shell), and the minimum annual investment required is $33.3M. Mr. Williams presented a graph which shows that our total capital investment falls well short of our funding target thereby increasing our deferred maintenance backlog. Trustee Levy stated that we are clearly not investing enough in deferred maintenance and asked if there are any other areas that are going to have issues similar to housing where we have to implement large fee/rent increases. Mr. Long responded that we are looking at parking now. Mr. Long explained that the Sightline data is the BOG/SUS attempt to get consistent data that can be presented to the legislature identifying a need for additional maintenance funds.


4

DRAFT

For next time, Chair Lamb would like to have an update on individual projects to include commitments and approvals, and tracking to time and commitments. He would like this for existing projects that have been approved and for upcoming approved projects. Mr. Long showed a few photos of the current progress of the construction of the Tampa housing village.

V. Adjournment

Having no further business, Chair Lamb adjourned the Finance Committee meeting at 2:28 pm.


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Agenda Item: IV.a


January 19, 2017 Issue: Supplier Diversity Update ________________________________________________________________ Proposed action: Informational ________________________________________________________________ Executive Summary: Jennifer Condon, Controller will provide an update on the USF System Supplier Diversity Program. The presentation will focus on the initiatives started over the past twelve months, which will lead to a more robust program in the near future. Financial Impact: N/A ________________________________________________________________ Strategic Goal(s) Item Supports: Goal 4: Sound Financial Management Workgroup Review Date: Finance Committee, 1/19/17 Supporting Documentation Online (please circle): Yes USF Supplier Diversity Program Improvements USF System or Institution specific: USF System Prepared by: Jennifer Condon, University Controller (813) 974-7696

Board of Trustees Finance Committee - New Business - Information Items

6

USF Supplier Diversity Program Improvements

Board of Trustees Finance Committee MeetingJanuary 19, 2017


7

WHAT HAVE WE DONE IN THE LAST 12 MONTHS?• Hosted “USF Connects” event to enable contact between USF departments and local MWBE

suppliers (April, 2016)• Added language to construction contracts to require outreach and encourage use of MWBE

vendors as sub-contractors• Appointed Supplier Diversity Committee with representation across USF System

Dr. Kofi Glover (Co-Chair/Academic Affairs) Jennifer Condon (Co-Chair / USF System Controller’s Office)Dr. Jose Hernandez (USF System DIEO) George Cotter (USF System Purchasing)Dr. Kevin Sneed (College of Pharmacy) Raymond Mensah (Tampa Parking Services)Dr. Johannes (Han) Reichgelt (USF St. Pete) Charlotte Redden-Wiggins (USF System Research)Dr. Cecil Howard (USF St. Pete) Eileen Rodriguez (Small Business Development Center)

• Established new Assistant Vice President Position to spearhead USF Supplier Diversityo Retained search firm (Gans, Gans & Associates) to assist with candidate identificationo Candidate pool narrowed to 6; to be further reduced down to 2/3 by Supplier Diversity Committeeo Targeting February for on-campus interviews with USF leadership

• Instituted MWBE spend reporting program with USF procurement card holders o First reports due this month

• Loaded spending data into new analytics tool to enable better data reporting / mining o Director of Purchasing working with representative of Tampa Organization of Black Affairs to

identify local connection opportunities from initial data review



8

CONCLUSION

• Through:o INREACH o OUTREACHo Data development

• Providing:o Reporting and accountabilityo Trend and opportunity analysis

• Yielding:o Increased competition for USF buyerso Improved MWBE metrics for USF

USF is “firing on all cylinders”; soon we will have the most robust supplier diversity program in the State University System.



9

Agenda Item: IV. b


January 19, 2017 Issue: Tampa Housing Update ________________________________________________________________ Proposed action: Informational ________________________________________________________________ Executive Summary: In May 2016, USF Board of Trustees approved USF Tampa Student Housing Rental Request for three years (FYE 2016-2018). The purpose of the approved three year rate structure was primarily to address:

Deferred maintenance Debt service coverage ratio

As required by the approved resolution, staff will return annually to report on the performance of the housing system. Financial Impact: ________________________________________________________________ Strategic Goal(s) Item Supports: Goal 1: Student Success

Goal 4: Sound Financial Management Supporting Documentation Online (please circle): Yes No USF Tampa Student Housing Update Presentation USF System or Institution specific: USF System Prepared by: Ana Hernandez, Asst. Vice President


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USF Tampa Student Housing USF Board of Trustees Update

January 19, 2017


11

Overview

• In May 2016, USF Board of Trustees approved USF Tampa Student Housing Rental Request for three years (FYE 2017 – FYE 2019).

• The purpose of the approved three year rate structure was primarily to address: Deferred maintenance Debt service coverage ratio

• As required by the approved resolution, staff will return annually to report on the performance of the housing system.

1


12

UpdateUSF Tampa Housing & Residential Education opened

in Fall 2016 with 106% occupancy and demand continuesReinvestment in housing facilities continues

FYE17 - $14,260,222 projects completed, planned, and underwayFYE18 - $9,245,659 projects planned and projectedFYE19 - $9,068,189 projected budget

Will meet targeted debt service coverage ratio of 1.30 in Year 1 of three year approved plan

2


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Facility ReinvestmentSample Projects FYE 2017

SAMPLE PROJECTS – NON-CAPITAL BUDGET

Elevator repairs/upgrades (multiple buildings)

$380,780

Exterior building repair (walkways, railings) $180,000

Exterior cleaning/repairs/caulking/sealing/painting (multiple buildings)

$887,945

Exterior stucco and minor roof repairs (multiple buildings)

$1,860,950

Flooring upgrade $140,000

Interior upgrades to resident apartments(kitchen/bathrooms)

$500,000

Interior upgrades to community space $200,000

Landscaping/storm water drainage $180,000

Renovation of stairs for code compliance $120,000($80,000 in FYE 2017)

Roof repairs $140,000

Site lighting (replace and add) $213,600

Wayfinding $65,000

SAMPLE PROJECTS - CAPITAL BUDGET

Elevator replacement $185,000

Environmental controls (multiple buildings)

$413,810

Major infill/curtain wall renovation and related equipment replacement

$1,971,500 ($800,000 in FYE 2017)

Major renovation of parcel facility

$110,000

Replacement of stucco, cap flashings, and roof repairs (multiple buildings)

$3,700,000

Security cameras $1,500,000

3


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Facility ReinvestmentSample Projects FYE 2018 and FYE 2019

SAMPLE PROJECTS – NON-CAPITAL BUDGET

Appliances $200,000

Bathroom upgrades $650,000

Exterior painting and sealing $450,000

Fixture/valve/fitting upgrades $450,000

Flooring $200,000

Furniture $240,000

HVAC system – replacement $750,000

Interior Door replacement $220,000

Inventory/storage facility $200,000

Interior painting $170,000

Interior renovations $2,360,000

Landscaping improvements/sight lighting $1,500,000

Lighting/electrical $370,000

Plumbing $250,000

SAMPLE PROJECTS - CAPITAL BUDGET

Centralized golf cart storage/charging

$450,000

Elevator replacement $1,750,000

Environmental controls (multiple buildings)

$1,100,000

HVAC System replacement $750,000

Infill/curtain wall renovation and related equipment replacement

$3,000,000

Interior renovations $2,000,000

Plumbing upgrades $1,000,000

Roof – Major repair/replace $550,000

Window replacement $800,000

4


15

Financial Projections Based upon Approved Rates

* Additional investment in FYE2017 prompted by stability of income and strategic investment in facilities to position USF existing beds to be competitive with new Village.

5

Housing Projects FYE 2015 FYE 2016 FYE 2017 FYE 2018 FYE 2019Facilities Projects – Non-capital 2,801,122 3,272,100 6,200,108 4,245,659 4,068,189Facilities Projects - Capital 3,854,525 2,637,104 8,060,114 5,000,000 5,000,000Total Reinvestment 6,655,647 5,909,204 14,260,222 9,245,659 9,068,189

Initial Updated Initial Updated Initial Updated Initial UpdatedTotal Operating Revenues (USF) 36,504,720 36,118,638 35,686,327 37,771,739 35,306,599 37,203,964 34,955,671 36,673,883Total Operating Expenses 20,930,781 19,909,075 21,235,507 23,563,622 20,329,217 22,514,953 19,449,706 21,490,455Net Income 15,573,939 16,209,563 14,450,820 14,208,117 14,977,382 14,689,011 15,505,965 15,183,428Debt Service Payment 11,124,242 11,124,242 11,116,015 10,929,321 11,094,357 10,880,749 11,075,689 10,845,306Debt Service Coverage Ratio 1.40 1.45 1.30 1.30 1.35 1.35 1.40 1.40Occupancy Projection 106% 106% 95% 106% 95% 95% 95% 95%

FYE 2016 FYE 2017 FYE 2018 FYE 2019BUDGET


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Debt Service Coverage with Approved Rates

Debt Service Coverage Ratios FYE 2016 FYE 2017 FYE 2018 FYE 2019Tampa Housing Debt Service Coverage Ratio 1.46 1.30 1.35 1.40St. Petersburg Debt Service Coverage Ratio 1.74 1.46 1.35 1.39USF Housing System Debt Service Coverage Ratio 1.51 1.33 1.35 1.40

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17

Recommendation

Validate two year rate schedule consistent with original approval:FYE 2018: 9.0% average (1.35 ratio)FYE 2019: 8.0% average (1.40 ratio)

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Agenda Item: FL 102

USF Board of Trustees May 3, 2016

Issue: USF Tampa Student Housing ________________________________________________________________ Proposed action: Approval of USF Tampa Student Housing Rental Request ________________________________________________________________ Executive Summary: USF Tampa Housing & Residential Education completed an assessment of its rental rates. USF Tampa Housing rents have only increased once in four years for a compound average growth rate of 1.35%. Tampa rental rates have not kept pace with expenses, particularly the need to invest in facility maintenance. The USF Housing System maintains a sound fiscal program and carries a strong “A-1 – Stable Outlook” credit rating from Moody’s and a similar “A+ – Stable Outlook” rating from Standard & Poor’s. The University and Tampa H&RE are interested in maintaining strong credit ratings to preserve access to the capital markets on favorable terms. USF Tampa Housing & Residential Education is recommending a three-year rate schedule. Without the proposed rate increases, it could be viewed negatively by the rating agencies. Additionally, we would breach our Board of Trustees and the Board of Governors guidelines. Financial Impact: Maintain sound USF Housing System fiscal program and existing strong credit ratings. ________________________________________________________________ Strategic Goal(s) Item Supports: Goal 1: Student Success

Goal 4: Sound Financial Management Workgroup Review Date: Finance and Audit, April 21, 2016 Supporting Documentation Online (please circle): Yes No PRESENTATION APPENDICES USF System or Institution specific: USF System Prepared by: Tom Miller, VP Student Affairs, 813-974-9084


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http://system.usf.edu/board-of-trustees/meetings/pdfs/upcoming-meetings/2016/05.03.16/USF%20Tampa%20Housing%20Rental%20Request%20Presentation.pdf

http://system.usf.edu/board-of-trustees/meetings/pdfs/upcoming-meetings/2016/05.03.16/USF%20Tampa%20Housing%20Rental%20Request%20Presentation.pdf

http://system.usf.edu/board-of-trustees/meetings/pdfs/upcoming-meetings/2016/05.03.16/USF%20Tampa%20Housing%20Rental%20Request%20Appendices.pdf

USF Tampa Student Housing Rental Request

2016-2018

May 3, 2016


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Overview

• Without a substantive increase in rental rates for FY16/17, the USF Housing System will breach:– USF BOT Debt Management Policy (1.3)– Board of Governors (1.2)

• Moody’s preferred rating coverage (1.4)• USF Housing rents have only increased once in 4 years

(1.35% compound average growth rate on primary inventory)

• Expenses continue to rise with no offset of new revenue.• Cash flow buildings (Andros) are coming off line

regardless of construction/financing method1


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Debt Service Coverage

USF has consistently met its debt service coverage ratio by reducing expenses and deferring facilities investments.

DSO / Moody’s: 1.4BOT Guidelines: 1.3

BOG Requirement: 1.2

Potential Budget Shortfall without a rate increase:

Assumes $3 million annual deferred maintenance schedule and 1.4 schedule.

FYE 2016 FYE 2017 FYE 2018 FYE 2019Total Operating Revenues 36,844,258 33,067,614 33,542,900 32,970,308Total Operating Expenses 21,270,319 20,290,890 24,200,864 25,179,132

Net Income 15,573,939 12,776,724 9,342,036 7,791,176DSO Base Lease 11,124,242 11,116,015 11,094,357 11,075,689

Debt Service Coverage Ratio 1.4 1.15 0.84 0.7Shortfall NA -2,785,697 -6,190,063 -7,714,788

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SUS Student Housing annual rent increase history

USF has only raised housing rates once in the last four years.

State University Student Housing Rental Rate History of Increases

2012 2013 2014 2015

FAMU 4.00% 4.00% 4.00% 4.00%

FAU NA 2.43% 1.00% 3.39%

FGCU 3.50% 0.00% 0.00% 0.00%

FIU 0.00% 0.00% 2.71% 0.00%

FSU 5.00% 5.00% 3.00% 3.00%

NCF 3.00% 0.00% 0.00% 4.00%

UCF 1.97% 0.00% 0.00% 0.00%

UF 4.50% 4.50% 3.00% 3.50%

UNF 3.10% 4.96% 3.29% 4.32%

UWF 5.98% 5.98% 2.87% 0.00%

SUS Average (w/o USF) 3.45% 2.69% 1.99% 2.22%

USF 0.00% 3.10% 0.00% 0.00%3


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Compound Annual Growth Rate (CAGR)Apartment Style Comparisons 2012-2015

LOCAL MARKET CAGRAvalon Heights 5.31%

The Venue at North Campus 4.69%

42 North 3.74%

College Court 3.61%

Malibu USF 3.28%

The Province 3.23%

Campus Club 1.93%

Monticello 1.77%

4050 Lofts 1.61%

The Social (Collegiate Hall) 1.43%

Campus Lodge 0.72%

Average 3.73%

STATE UNIVERSITY SYSTEM CAGRUniversity of West Florida 7.37%

University of Central Florida 6.48%

University of Florida 5.63%

New College of Florida 4.00%

Florida State University 3.20%

Florida Atlantic University 3.01%

University of North Florida 2.77%

Florida A&M 1.84%

Florida International University 1.83%

University of South Florida St. Petersburg 1.33%

Florida Gulf Coast University 0.00%

University of South Florida -0.66%

Average 3.39%4


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Value of Living On-campusResearch indicates living on-campus improves student retention and graduation rates

• Safety• Convenience (close to classes and resources)• Variety of housing options• Living Learning communities and access to faculty

outside the classroom• Academic success (graduation and retention)• Connection to campus life• Flexibility (change rooms or roommates, length of

contract, cancellation options)

First Year Live on Requirement Removed5


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SUS Comparison by Type (2015-2016)

SUS Suite Double Rate

UF $3060-$3729

FAU $3050-$3650

UWF $3000

FSU $2995-$3665

UNF $2830-$3150

NCF $2708

FIU $2700

UCF $2470-$2835

USF $2200 - $2826

SUSTraditional

Double Rate

FAMU $3275

UF $2648-$2815

NCF $2586

FSU $2550

USF $2386

UNF $2250

45% of USF inventory 12% of USF Inventory

SUSApartment Single 4BR

Rate

FAU $4200-$5180

FIU $3900-$4050

FSU $3620

NCF $3525

USF $3380-$3448

UF $3174-$3429

UWF $3065-$3300

FPU $3040

UCF $2985-$4440

FGCU $2715-$2948

30% of USF Inventory

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Cost Pressures

• Matching state/university salary & benefit increases

Minimum wage, Admin. and Staff wage, Health premiums and other benefits

Over past five years, the number of full-time staff in Housing & Residential Education has been reduced by 5%, yet compensation and benefit obligations have increased 23% (64% compensation: $906,407 and 36% benefits: $509,854).

• Increased deferred maintenance investment

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Impact of Andros Demolition

• $2 million Net Decrease in cash flow by FYE 2019• No reduction in annual debt service

– Remaining inventory covering larger proportion of debt

• Deferred Maintenance backlog is reduced by $52 million

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RecommendationApprove three year rate schedule

Fall 2016: 9.3% average (1.30 ratio)Fall 2017: 9.0% average (1.35 ratio)Fall 2018: 8.0% average (1.40 ratio)

USF rates remain competitive with SUSSUS Suite Double

Rate

UF $3060-$3729

FAU $3050-$3650

UWF $3000

FSU $2995-$3665

UNF $2830-$3150

NCF $2708

FIU $2700

UCF $2470-$2835

USF $2288 - $3313

SUSApartment

Single 4BR Rate

FAU $4200-$5180

FIU $3900-$4050

USF $3758

FSU $3620

NCF $3525

UF $3174-$3429

UWF $3065-$3300

FPU $3040

UCF $2985-$4440

FGCU $2715-$2948

SUSTraditional Double

Rate

FAMU $3275

UF $2648-$2815

NCF $2586

FSU $2550

USF $2481

UNF $2250

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USF Tampa Student Housing Rental Request (Appendices)

2016-2018

May 3, 2016


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Appendix A:Rental Rate ProposalUSF Tampa Housing Fall 2015 Fall 2016 Fall 2017 Fall 2018

Cumulative Annual

Growth Rate

Room Type Bed Count

Semester Rate

Bed Count

% Increase

$ Increase

Semester Rate

Bed Count

% Increase

$ Increase

Semester Rate

Bed Count

% Increase

$ Increase

Semester Rate CAGR

Andros Suite Double 1328 $2,200 952 4.00% $88 $2,288 x x x x x x x x

Traditional Double 620 $2,386 620 3.94% $94 $2,480 620 9.03% $224 $2,704 620 7.99% $216 $2,920 7.0%

Suite Triple 366 $2,386 366 3.94% $94 $2,480 x x x x x x x x

Suite Corner Triple 27 $2,566 27 3.98% $102 $2,668 x x x x x x x x

Suite Double 1218 $2,826 1218 17.20% $486 $3,312 1480 9.06% $300 $3,612 1480 7.97% $288 $3,900 11.3%

Apartment Double 174 $2,826 174 4.03% $114 $2,940 174 8.98% $264 $3,204 174 7.99% $256 $3,460 7.0%

Suite Corner Double 62 $3,040 62 8.95% $272 $3,312 62 9.06% $300 3612 62 7.97% $288 $3,900 8.7%

Traditional Single 10 $3,300 10 4.00% $132 $3,432 10 8.97% $308 $3,740 10 8.02% $300 $4,040 7.0%

Apartment Single 4br 1126 $3,380 1126 11.24% $380 $3,760 1126 8.94% $336 $4,096 1126 8.01% $328 $4,424 9.4%

Andros Suite Single 8 $3,396 6 4.00% $136 $3,532 360 8.95% $316 $3,848 x x x x

Premium Apartment Single 4BR 356 $3,448 356 9.05% $312 $3,760 356 8.94% $336 $4,096 356 8.01% $328 $4,424 8.7%

Apartment Single 2BR 48 $3,620 48 4.97% $180 $3,800 48 9.05% $344 $4,144 48 8.98% $372 $4,516 7.7%

Grand Total USF Beds 5343 4965 4236 3876


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Appendix B: USF:P3 Room Type and Rental Rate Comparison

USF Tampa Housing Fall 2017 Fall 2017 USF Residential Village (P3)

Room Type Bed Count

Semester Rate

Bed Count

Semester Rate Room Type

Traditional Double 620 $2,704

Suite Double 1480 $3,612

Apartment Double 174 $3,204

Suite Double 62 $3,612 688 $3,630 P3 Double (Community Bath)

Traditional Single 10 $3,740

Andros Suite Single 360 $3,848

Apartment Single 4br 1482 $4,096 614 $4,130 P3 Semi-Suite Double (Private Bath)

Apartment Single 2BR 48 $4,144

34 $4,395 P3 Single (Community Bath)

0 $4,595 P3 Deluxe Single (Community Bath)

0 $5,185 P3 Semi-Suite Single (Private Bath)

Total USF Beds 4236 1336 Total P3 Beds


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Appendix C:2015-16 Cost of Attendance Comparisons(Both current and inclusive of proposed 2016-2017 housing rates)


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Appendix D:Alternate Rate Scenarios

Level 1.2 DSCR FYE2017 FYE2018 FYE2019

Rental Rate 5.35% 6.88% 5.83%

DSCR 1.20% 1.20% 1.20%

Deferred Maintenance $3.9M $2.6M $2.5M

Initial 1.2 DSCR Increasing FYE2017 FYE2018 FYE2019

Rental Rate 5.35% 11.02% 10.01%

DSCR 1.20 1.30 1.40


Spring 17 Rate increase FYE2017(Spring) FYE2018 FYE2019

Rental Rate 17.51% 1.38% 8.0%

DSCR 1.30 1.35 1.40


Proposed Rates FYE2017 FYE2018 FYE2019

Rental Rate 9.30% 9.00% 8.00%

DSCR 1.30 1.35 1.40



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Approved Minutes USF Board of Trustees Special Meeting

USF Gibbons Alumni Center – Traditions Hall Tuesday, May 3, 2016 - 3:00 p.m.

Chair Harold Mullis convened the special meeting of the USF Board of Trustees at 3:00 p.m. The Chair welcomed everyone to the meeting. Members of the Residence Hall Association were in attendance. The Chairman thanked Governor Scott for the Board appointments and introduced two new members of the USF Board of Trustees: James Stikeleather and Mike Carrere. President Judy Genshaft called the roll with the following Trustees present: Mike Carrere Jozef Gherman Stephanie Goforth Scott Hopes Brian Lamb Stan Levy Hal Mullis John Ramil Byron Shinn – Not in attendance James Stikeleather – Not in attendance Greg Teague Nancy Watkins Jordan Zimmerman New Business FL 101 – Ratify the Tentative Agreement between USF/BOT and GAU covering Graduate Assistance represented by the GAU. Vice Provost Kofi Glover presented the item. The agreement represents three re-opened Articles in the current Collective Bargaining. The approximate total cost of the agreement is about $627,939. $223,837 increase in insurance premiums and $404,102 increase in minimum stipends. Chair Mullis asked for a motion, it was seconded and FL 101 was approved. FL 102 – Approval of USF Tampa Student Housing Rental Request.


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Chief Operating Officer John Long, Vice President Nick Trivunovich and Assistant Vice President Ana Hernandez presented the USF Tampa Student Housing Rental Request. USF Tampa Housing & Residential Education completed an assessment of its rental rates. USF Tampa Housing rents have only increased once in four years for a compound average growth rate of 1.35%. Tampa rental rates have not kept pace with expenses, particularly the need to invest in facility maintenance. The USF Housing System maintains a sound fiscal program and carries a strong “A-1 – Stable Outlook” credit rating from Moody’s and a similar “A+ – Stable Outlook” rating from Standard & Poor’s. The University and Tampa H&RE are interested in maintaining strong credit ratings to preserve access to the capital markets on favorable terms. USF Tampa Housing & Residential Education is recommending a three-year rate schedule. Without the proposed rate increases, it could be viewed negatively by the rating agencies. Additionally, we would breach our Board of Trustees and the Board of Governors guidelines. COO Long added that he and his team recently completed a trip to the rating agency and had a successful meeting. After a discussion among the Trustees, Chair Mullis asked for a motion. Vice Chair Lamb made the following motion:

1. That the Board approve the housing rate increase plan as presented, including the three year rate increase, that maintains a 1.4 debt coverage ratio (Click Here for Materials).

2. Staff will annually return to the Finance and Audit Workgroup and report on the performance of the housing system;

3. If the F&A workgroup disagrees with the report, then the F&A Workgroup retains the authority to vote up or down on the annual rate increase.

The motion was seconded and passed by majority. Trustee Hopes voted against the motion. Chair Mullis thanked everyone for their participation. Having no further business to discuss the Chair ended the special meeting of the Board of Trustees. __________________________ _____________________________ Harold W. Mullis, Chair Judy Genshaft, Corporate Secretary


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http://system.usf.edu/board-of-trustees/meetings/pdfs/upcoming-meetings/2016/05.03.16/FL%20102.pdf

Agenda Item: IV. c


January 19, 2017 Issue: USF Construction Projects Update ________________________________________________________________ Proposed action: Informational ________________________________________________________________ Executive Summary: Provide the USF BOT insight into the USF System Physical Plant Construction, Maintenance, and Repair Programs - Scope and Investment Financial Impact: Informational ________________________________________________________________ Strategic Goal(s) Item Supports: Goals One, Two, Three, & Four Committee Review Date: January 19, 2017 Supporting Documentation Online (please circle): Yes No USF System Construction Projects Update USF System or Institution specific: USF System Prepared by: Calvin Williams, Vice President for Administrative Services, USF System


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USF SystemConstruction Projects UpdateJanuary, 2017

Rev. Jan. 18, 2017


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1. USFSP College of Business

2. USF Health Morsani College of Medicine & Heart Institute

3. USF Health Student Wellness MDA Renovation (Ph. 3)

4. USF Tampa Library Remodel & Learning Enhancements (Ph. 1 & 2)

5. USF Residence Life Village (P3)

6. USF Grocery (P3)

Board-Approved Projects $500K+


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USFSP College of Business

Scope:• Construction of a four story 68,800 SF facility• Classrooms, teaching labs, study areas, offices,

auditorium/exhibition space• Technology enhanced classrooms and lecture auditoria

will facilitate the instructional needs for the entire College of Business curriculum in one building

• Flexible space configurations• LEED Gold certification

Status:• Reached substantial completion 12/6/2016• Opened for classes on 1/9/2017 • Grand opening of facility occurred 1/17/2017

Budget:• AE $ 2,289,628• CM $ 25,682,581• Added Scope (Parking) $ 400,000• IT/AV $ 959,491• Furnishings $ 988,300• Total $ 30,320,000

Schedule:• Project Kickoff, programming 2010• Engage CM/Consultant 2012• Design and Construction Docs 2012• Bidding, GMP finalized 2014• Construction Dec 2016

Board-Approved Project

1Board of Trustees Finance Committee - New Business - Information Items

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$78,800,000

$33,300,000

$18,000,000

$22,500,000

Budget: $152,600,000

SUS Appropriated SUS Requested

Morsani Gift Additional Private

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USF Health: Morsani College of Medicine and Heart InstituteScope:Total Usable Space: 277,544 SF

MCOM InstructionalHeart Institute LabsAud/Dining/SupportFaculty OfficesClinical Trials/Care Unite

Total Gross Area: 319,176 SF

Program Development (PD)Design Renderings (FEB 2017)

GMP (JUN 2017)ConstructionContractor (D/B Team):

Skanska/HOK

Legend: End Event

Funding Source:

Schedule:

Status: PD Complete

Design On Schedule



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$54,505

$1,744,542

$615,944

Budget: $2,414,991

DesignConstructionFF & E

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USF Health: Student Wellness MDA (Ph.3)Scope:

Phase 1 (2014) – Demo of Former ClinicsPhase 2 (2016) – Construction of Dining, Study Space, & Multipurpose Room

Phase 3 – Construction of Fitness Center

Contractor:Williamson Dacar / Ajax

Funding Source:CITF

Schedule:

Status:Phase 3 Under Construction



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$600,000

$3,732,490

Budget: $4,332,490

Phase 1

Phase 2

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USF Library Remodel & Learning EnhancementsScope:

Phase 1 – Basement Compact Shelving

Phase 2 – Library Remodel(APR 2017)5th Floor - Student Study Space5th Floor - HVAC Replacement

(MAY 2017)4th Floor - Relaxation RoomMulti-Floor – Restroom Remodel

Contractor (D/B Team):FriedrichWatkins/GreshamSmith Partners

Legend: Begin Event

Schedule:

Status:Phase 1 Complete, Phase 2 on schedule


Funding Source:CITF/User


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$95,837,360

$36,988,636

Budget: $132,825,996

Phase 1

Phase 2

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USF Residential Life Village (P3)Scope:

Phase 1 – 885 Beds2 Buildings & Dining (JUL 2017)

Wellness (SEP 2017)

Phase 2 – 1,111 Beds

1 Building (APR 2017)

2 Buildings (MAY 2017)

Demo Legacy Bldgs (MAY 2018)

Developer:Capstone - HSRE, LLC

Legend: Begin Event End Event

Schedule:

Status:Phase 1 Construction: On SchedulePhase 2 Design: On Schedule


Funding Source:Developer


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$60,000

$9,940,000

Budget: $10,000,000

Permitting

Construction

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USF Grocery (P3)

Scope:Grocery Store: 28,000 SF

3.74 acre Ground Sublease149 Parking Spaces

Site/Building Permit (APR 2017)

Owner / Developer:Publix / Sembler

Schedule:

Status: Design / Permitting on Schedule


Funding Source:Owner

Legend: End Event


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Agenda Item: IV. d


January 19, 2017 Issue: USF 2016 Audited Financial Statements ________________________________________________________________ Proposed action: Informational ________________________________________________________________ Executive Summary: The USF 2016 Financial Statements and associate audit report were released by the State of Florida Auditor General on December 20, 2016. Jennifer Condon, Controller will review the immaterial audit adjustments that resulted from the audit. Financial Impact: Immaterial ________________________________________________________________ Strategic Goal(s) Item Supports: Goal 4: Sound Financial Management Workgroup Review Date: Finance Committee, 1/19/17 Supporting Documentation Online (please circle): Yes USF 2016 Audited Financial Statements USF System or Institution specific: USF System Prepared by: Jennifer Condon, University Controller (813) 974-7696


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