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'" HIGHER EDUCATION BOND OVERSIGHT COMMITTEE j . , I i-- ~ \ SEMI -A~r~-~r~-u AL REPO R T : JUNE 2004 . 5

HIGHER EDUCATION BOND OVERSIGHT COMMITTEE · 2004-07-15 · C.k".,;i~~.: Table of Contents Letter of Transmittal i Committee Membership ii Executive Summary 1 Higher Education Bond

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'"

HIGHER EDUCATION BONDOVERSIGHT COMMITTEE

j.,

Ii--

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\ SEMI -A~r~-~r~-u AL REPO R T :

JUNE 2004.

5

C, .,. ~ .k".

;i~~.:

Table of Contents

Letter of Transmittal i

Committee Membership ii

Executive Summary 1

Higher Education Bond Oversight Committee Report 2HEBOC Organization and Structure 2State Treasurer's Office 3Office of State Construction 3North Carolina Community College System 4The University of North Carolina 5 ~Exceptions Report 7 .

AttachmentsCompleted Community College Projects ACompleted University Projects BBond Usage Information CNC Community College System Required Match DNC Community College System Cash Flow Projections ENC Community College President's Association

Ad Hoc Committee on HUB Participation FNC Community College System Watch List GUNC Bond Program Cash Flow and Bond Sale H

I,

ffiGHER EDUCATION BOND OVERSIGHT COMMITTEE

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July 6, 2004

TO THE MEMBERS OF THE JOINT LEGISLA TNE COMMISSION ONGOVERNMENTAL OPERATIONS:

Attached for your consideration is the June 2004 Semi-Annual report to the JointLegislative Commission on Governmental Operations. The Higher Education BondOversight Committee prepared this report, pursuant to G. S. 116D-5.

Respectfully Submitted,

t~~4-1 D~~ 17{:7(...fI1~-O;~~~::'=:::: >Charles T. Davidson Paul FultonCo-Chair Co-Chair

Committee Membershi~

Co-Chairs

Mr. Charles T. Davidson Mr. Paul FultonP.O. Box 471501 Bassett FurnitureCharlotte, NC 28247 3801 Knollwood Street(704) 759-9360 Winston-Salem, NC 27103(704) 759-9361 (fax) (336) 725-7994davidsoncharles@'bellsouth.net (336) 725-7993 (fax)

p ful ton@, b ass ettfumiture. com

Members

Mr. Marshall B. Bass Mr. Edward (David) Redwine3726 Spaulding Dr. PO Box 283Winston-Salem, NC 27105 Shallotte, NC 28459910-754-4326(336) 659-7898 910-754-9185 (fax)[email protected] [email protected]

Ms. Peaches Gunter Blank Mr. William G. Smith605 Westview Avenue 4005 Westfield DriveNashville, TN 37205 Durham, NC 27705(615) 292-1787 (919) [email protected] wsrnith(ii>MCSBK.com

Mr. Kelly Barnhill, Sr. Mr. William A. LongCEO Hendrix-Barnhill Company, Inc. Yadkin Valley BankPO Box 1904 (1819 Progress Road) Post Office Box 888Greenville, NC 27835 (27834) Elkin, North Carolina 28621(252) 752-4122 (336) 526-6315 (work)kbsr@'hendrix-barnhill.com (704) 872-1645 (home)

(704) 881-5295 (cell)

Mr. Malcolm (Mac) E. Everett, m1501 Maryland AvenueCharlotte, NC 28209704-370-0753mac .ev eret t@'firstunion.com

.Lemslative StaffComlDlttee Clerk Kristine LeggettMs. Ann Faust (919) 733-4910

" (919) 733-5807 (919) 715-3589 (Fax)[email protected] [email protected]

ii

_ffiGHER EDUCAnON BOND OVERSIGHr COMMm:EE .

Executive Summary

The Higher Education Bond Oversight Committee is pleased to report that the Bond Program isprogressing at a rapid pace, with 51 University facilities and 63 community college projectsalready completed. Overall, 66%-of the 389 community college projects and 92% of theuniversity system's 319 projects are in an active stage (design, construction, or complete). For acomplete listing of completed Community College and University projects, please seeattachments A and B.

Of the 51 completed university facilities valued at $243 million, a savings of $12.9 million wasachieved. 40% of the 51 projects were completed on or ahead of the baseline schedule, withmost schedule changes reflecting completion of the projects as per revised coordinated schedulesby the individual campuses. While there may be several projects considered either ahead orbehind, in aggregate the University Bond Program is considered to be basically on schedule andrwlning slightly under budget at this time. Although university projects under construction haveprogressed in a manner that has utilized available funds at a rate anticipated in the legislation,spending must noW increase by about 30% over the next nine months to meet projected targets.In addition, rising steel prices are expected to put pressure on future project cost projections.

The State's 58 community colleges and the NC Center for Applied Textile Technology received$600 million from the bond package. Given that the community colleges had no specificspending plan itemized in the bond referendum, the Committee is satisfied with the $157.6million in expenditures they have achieved to date (26% of the total program).

The Bond Oversight Committee closely monitors the cash flow for the University andCommunity College Systems. The State Treasurers Office has indicated their willingness towork with the University on cash flow needs as necessary. This could include additional bondsales, as long as the total amount in bonds sold does not exceed statutory limits.

As of July 1, 2004, the University's contractual commitments totaled approximately $1.352billion (54.1 %). The State Board of Community Colleges has approved $450 million (75%) innew construction and repair and renovation projects as of May 17, 2004. The CommunityColleges have also done an outstanding job in meeting their match obligations with only $21.4million (22.6%) remaining to be matched.

The Universities and Community Colleges continue to see an increase in HistoricallyUnderutilized Business (HUB) participation. The total HUB participation rate is 14.1 % for theUniversity System and 12.45% for the Community College System.

To date, both the Universities and the Community Colleges have done an outstanding jobmanaging their respective cash flow and construction schedules. However, over the next ninemonths, spending in the University system must increase in order to meet projected targets. TheCommittee will continue to monitor cash flow and construction schedules throughout the year toensure that the bond projects continue to progress in a manner consistent with the intent ofHigher Education Facilities Financing Act.

1

-ill GHER ED U CA 11 ON BOND OVEllSIGHT COMMrrrEE .

Higher Education Bond Oversight Committee Report ~-::.:~'

Organizational Structure/InfonnationThere is currently one vacant seat on the Higher Education Bond Oversight Committee.Committee assignments are listed below. Active campuses are campuses which receive personal ,evaluations from the committee members in 2004 and are listed in bold.

.Higher Education Bond Oversight Committee Assignments

Co-ChairsCharles Davidson General Administration of University of North Carolina

State Construction OfficePaul Fulton The State Treasurer

Community College System Office

Board Members

Malcolm Everett Community College System OfficeWilliam Long Community Colleges

Appalachian State UniversityMarshall Bass University of North Carolina at Greensboro

North Carolina Agriculture and Technical State University

North Carolina State UniversityE. David Redwine North Carolina Central University

Fayetteville State University

East Carolina UniversityKelly Barnhill, Sr. University of North Carolina Center for Public Television

University of North Carolina at Wilmington

University of North Carolina at Asheville / ArboretumVacant Seat Western Carolina University

Winston-Salem State University

University of North Carolina at Chapel HillPeaches Gunter Blank North Carolina School of the Arts "

University of North Carolina at Charlotte

School of Science and MathWilliam Smith University of North Carolina at Pembroke

Elizabeth City State University .

The committee now has a web site. The site address is .http://www.ncleg.net/HEBOC2/higheredbond.htrnl. The site provides general infonnation on thecommittee, its charge, duties, various reports, and upcoming meetings.

2

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. ..SWt .. ffiGHER EDUCAnON BOND OVERSIGffi' COMMrn'EE 6

Office of the State Treasurer .~-~

Previous Bond Sales

CommunityDate Colle es Universities Interest Rate

March 7,2001 $48,400,000 $201,600,000 4.747% fixed

March 12,2002 $58 100000 $241 900000 1.65% variable (March)May 1, 20021 " "4.0583% fixed (May)

March 20032 $81 000000 $483900000 4.34% (February), , "4.30% (March)

March 2004 $133,200,000 $483,900,000 3.93% fixed

Future Bond Sales

Year Communi es Universities

2005 $135,500,000 $564,500,000

2006 $125,800,000 $524,200,000

As of June 1, 2004, the Community Colleges have expended $157,600,000 out of the total$320,700,000 issued in the four previous bond sales. The Universities expended $940,854,987of the $1,411,300,000 issued in the three previous bond sales.

The unexpended balance remaining as of June 1, 2004 was $470,445,013 in University Bondsand $163,100,000 million in Community College Bonds3. (Attachment C)

Adjustments to the schedule of bond sales allowed the Community College and Universities tobetter align their cash flow models with bond funds available. This practice has also helpedreduce debt service costs for the State and should continue to be used in the future.

State Construction

Document Review/ ApQroval StatusSince the beginning of the bond program in 2000, the State Construction Office has conductedapproximately 316 reviews for bond projects. As of May 1,2004, there were 15 Bond projectsin the State Construction Office for review.

The Committee finds that review of projects by State Constroction has not resulted in any

significant project delays.

1 This bond sale occurred in two parts.2 This bond sale occurred in two parts.3 This amount includes approximately $27,938,182 million from the March 2001 bond sale.

3

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illGHER EDUCAnON BOND OVERSIGHT COMMrrrEE .

Community Colleges -

The Community College bond program is continuing to progress in an efficient and effectivemanner. There are 389 community college bond projects, 63 of which are complete.

.Matching FundsThe Community Colleges have done an outstanding job in meeting match obligations. There areonly 12 Community College sites that have yet to fully match Bond funds. Out of the "$94,155,998 originally needed to fulfill the Community College match requirement, only$21,366,262 (22.6%) remains to be matched as of May 2004. Approximately 63% of the fundsyet to be matched are at larger institutions located in counties with a history of providing fundsfor their Community Colleges. (Attachment D)

Are the bond issuances adequately timed to reflect cash-flow requirements of the projects?Last year, the actual expenditures lagged behind the projected expenditures in the CommunityCollege cash flow model by approximately $26 million. Adjustments to the cash flow model anddelaying bond sales in FY03-04 allowed the System to significantly improve its expenditure rate.As of April 30, 2004, the System Office is reporting a cash flow model deviation of only$631,927. (Attachment E)

The Higher Education Bond Oversight Committee commends the Community College System forits work in updating and maintaining the cash flow model, and will continue to work with theSystem Office to monitor cash flow requirements in the future.

Are the expenditures of the proceeds from the bonds issued under the act in compliancewith the provisions of the act? There are 389 Community College Bond projects planned.There are currently 260 projects in some active stage, of which 63 are completed (including landpurchases). As of May 21,2004, $449,679,317 or 75% of the community college bond moneyhas been committed (i.e. identified and approved for use in a specific project).

Historicallv Underutilized Business (HUB)The HUB participation for the Community College Bond Program is 12.45% (approximately$22,147,139 spent on HUB vendors). That includes 2.70% Black, 0.86% Hispanic, 0.28%Asian, 1.00% Native American, 0.26% socially and economically disadvantaged, and 7.34%Women.

The Community College President's Association continues its efforts to increase HUBparticipation. As a result of the recently created ad hoc HUB committee, the President'sAssociation has initiated a "Plan of Work". (Attachment F) There is hope that these efforts willfurther improve HUB participation.

Are the awarded contracts consistent with the budget and scope of the approved projects? .Community College Trustees have the authority to change the budget and scope of projects.Consequently, budgets and scopes change frequently. Even after the State Board of CommunityColleges has authorized a project, a local board may change the scope and magnitude o~ a .project. Changes in budget or scope must be re-approved by the State Board of CommunItyColleges.

4

illGHER EDUCAnON BOND OVERSIGHT COMMrrn:E (8

Could changes in construction methods enhance cost savings and promotion of on-timecompletion of projects? There still is no clear feedback regarding the use of CM at Risk(currently being used on two projects) in the community colleges. Early feedback suggests thatthe community colleges are pleased with the use of Single Prime because of the convenience ofdealing with one contractor. However, there have been some unexpected issues arising from theuse of a Construction Manager. Central Piedmont Community College has employed a CM-which resulted in several sets of multi-page contracts. The amount of additional paper work wasmuch more than expected. A CM at Risk contractor is at risk for the performance and prices ofits subcontractors and vendors, unlike a CM functioning as an agent for the owner.

The committee will monitor and collect data regarding the use of Single Prime, ConstructionManager, and Construction Manager at Risk projects and report on information received.

The Watch ListThere are currently twelve Community College Projects on the Watch List (currently defined asprojects $10 million or more in cost). (Attachment G)

University of North Carolina

The University Bond program is continuing to progress in an efficient manner. 92.8% of theBond program is in an active stage (design, construction, or complete). Out of the 319 total bondprojects, 91 are in design, 162 are under construction, and 51 are complete. ASU, NCSA,UNCA, UNCC, UNCW and WSSU, as well as the three Affiliates have 100% of their programunderway.

Are the bond issuances adequately timed to reflect cash-flow requirements of the projects?The University of North Carolina-General Administration (UNC-GA) continues to closelymonitor the actual versus projected expenditures for bond projects. UNC-GA has reported thatthe March 2004 bond sale was timely and made funds available just in time to pay Marchinvoices. While UNC-GA constantly reviews and revises the cash flow model, they havereported that it is more difficult to accurately forecast cash requirements for construction than itis for design, making it imperative that funding is continued on a regular basis. (Attachment H)

The State Treasurers Office has indicated their willingness to work with the University on cashflow needs as necessary. This could include additional bond sales, as long as the total amount inbonds sold does not exceed statutory limits. Based on the information received to date, the bondissuances are adequately timed to reflect cash flow needs.

Are the expenditures of the proceeds from the bonds issued under the act in compliancewith the provisions of the act? As of June 1, 2004, the Universities expended $940.854,987 ofthe $1 411 300000 issued from the three Previous bond sales. The Universities' cumulative, , ,contractual commitments total approximately $1.352 billion (54.1 %) out of the $2.5 billionavailable in Bond funds.

Historically Underutilized BusinessHUB participation (construction and design contracts) is 14,1%, approximately $232.3 million indollar value. This number represents participation by 4.4% Black, 6.6% Women, and 3.5%

5

HIGHER EDUCA'I10N BOND OVERSIGHT COMMrrn!E .Other. The University of North Carolina is working diligently to improve HUB 'VIparticipation. Several "good faith efforts" are underway at all levels, from the Office of thePresident to each individual campus.

Based on the current Bond fund expenditures it does appear that the expenditures are within theprovisions of Senate Bill 912. .

Are the awarded contracts consistent with the budget and scope of the approved projects? .To date, ten scope changes have been approved by the legislature:

1. UNCCH -Renovation of 440 West Franklin St. changed to Infonnation TechnologyOffice Facility

2. NCSU -Alterations to Meat Processing Center changed to Animal and Food SciencesFacilities

3. NCSA -Residential Facility changed to High School Student Residential Facility4. UNC-A -Cannichael Hall Classroom Building Renovations changed to Carmichael Hall

Classroom Building Demolition and New Construction5. UNCP -Replacement of Jacobs and Wellons Halls reduced and new General Purpose

Classroom Building added6. WSSU -Anderson Center Comprehensive Renovation reduced and Coltrane Hall

Renovation to House Gerontology and New Facility for Early Childhood Program added7. WSSU -Health Center Building and Old Nursing Building Comprehensive Renovation

for Student Health changed to New Student Health Center8. ECSU -Doles Residence Hall Comprehensive Renovation changed to Campus

Infrastructure Improvements9. NCCU -Pearson Cafeteria Comprehensive Renovation changed to Pearson Cafeteria

Expansion; Old Senior Donn Conversion to Academic Use deleted and Farrison Newtonreduced

10. NCCU -Mold Remediation added. Funds were shifted from Hoey Building ($2.7million), Code Compliance ($3.3 million), Electrical Infrastructure ($3 million) and LandAcquisition ($1.4 million) totaling $10.4 million.

Based on the information that the committee has received, we do believe that awarded contractsare consistent with the budget and scope of approved projects.

Could changes in construction methods enhance cost savings and promotion of on-timecompletion of projects? There are currently 29 bond projects in the University System using theConstruction Manager at Risk method. Full Guaranteed Maximum Price contracts have beenawarded for 13 of these projects. Construction Manager-at-risk continues to be an effectiveconstruction delivery method for larger projects or for managing an aggregation of relatedsmaller proj ect. Construction Manager at Risk has shown a higher level of minority participationto date than other delivery methods, with 6.3% African American and 18.8% overall HUB

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particIpatIon.

.The committee will continue to monitor and collect data regarding the use of Single Prime,Construction Manager, and Construction Manager at Risk projects and report on informationreceived.

6

illGHER EDUCA'l10N BOND OVERSIGHT COMMm:EE '8

Exceptions Report ~The Higher Education Bond Oversight Committee has made it a point to provide "exceptionsreports" in order to provide a quick view of issues that could have a negative impact on theability to complete the bond program on time and on budget. The recent, unexpected increase inconstruction costs have resulted in delays in negotiating Guaranteed Maximum Prices withConstruction Manager-at-Risk, projects bidding over budget, general contractors not holdingtheir bid prices and the time delays inherent in re-bidding projects.For a complete listing of exceptions, please refer to:

http://www.northcarolina.edu/vendors/bnis.cfm

7

HIGHER EDUCATION BOND0 VERSI G HT C 01\1~lITTEE

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The UNC Bond Program AttachmentBThe Bond Oversight Committee

June 21,2004

Completed Projects Based on 319 Projects

Institution Code/ltem Project Budqet Variance Schedule1 ASU 40080-302 Science Building $849,435 45 days behind baseline

2 ASU 40080-304 living and leaming Center $332,100 7 1/2 months behind baseline

3 ASU 40080-309 B.B. Dougherty Hall -$332,100 2 1/2 months behind baseline

4 ASU 40080-311 land Acquisition $0 5 months behind baseline

5 ECSU 40083-314 Physical Education Facilities -$195,000 7 months behind baseline

6 ECSU 40083-304 Williams Hall Renovation $268,128 On scheduie

7 ECU 40086-301 Science laboratory and Technology Building -$4,410,116 31/2 months behind baseline

8 ECU 40086-311 Campus Computing Center $0 45 days ahead of baseline

9 ECU 40086-312 land Acquisition $5,687. 29 months ahead of baseline

10 ECU 40086-313 Technology Infrastructure $4.218 14 months behind baseline

11 FSU 40084-312 Student Residence Halls -Fire Safety Improvements $0 5 weeks behind baseline

12 NC A&T 40087-316 Replacement of Steam lines and Access Holes -$74,681 3 months ahead of baseline

13 NC A&T 40087-323 Campus Security Improvements $0 16 months ahead of baseline

14 NCCU 40085-309 Mclean Residence Hall $0 5 months behind baseline

15 NCCU 40085-320 Pubiic Safety Building $0 On schedule

16 NCCU 40085-321 Technology Infrastructure $100 2 years ahead of baseline

17 NCCU 40085-322 B.N. Duke Addition $0 On schedule

18 NCCU 40085-817 Hoey Administration CANCEllED

19 NCCU 40085-318 Code Compliance Corrections CANCEllED

20 NCSA 40088-302 Stevens Center Renovation -$225,000 3 weeks ahead of baseline

21 NCSA 40088-303 Film Archives Building $0 15 days behind baseline22 NCSU 40074-313 Clark Hall $237,810 2 months ahead of baseline

23 NCSU 40074-323 Horticulture Classroom $23,810 4 months behind baseline

24 NCSU 40074-338 Research and Teaching Feed Mill $0 7 months behind baseline25 NCSU 40074-340 lake Wheeler Rd Field lab -Beef Educational Unit $34,823 14 months ahead of baseline ~

I26 UNCA 40077-305 Campus Primary Electrical Distribution $51,190 2 months behind baseline

27 UNCA 40077-307 Technology Infrastructure $0 7 days ahead of baseline

28 UNCC 40076-312 Chiller Replacement $0 2 months behind baseline

29 UNCC 40076-313 Technology Infrastructure $1,000,000 10 months behind baseline

30 UNCCH 40072-311 Medical Biomolecular Research $0 1 month behind baseline

31 UNCCH 40072-313 Carolina living and learning Center $0 On schedule

32 UNCCH 40073-303 Murphey Hall Classroom Building -$203,000 1 week ahead of baseline33 UNCCH 40073-307 Peabody Hall Classroom Building $1,821,265 18 months ahead of baseline

34 UNCCH 40073-310 Institute of Marine Science Renovation $0 13 months ahead of baseline

35 UNCCH 40073-322 School of Medicine Bioinformatics $0 1 month ahead of baseline

36 UNCCH 40073-337 R. B. House library $0 4 months behind baseline

37 UNCG 40075-301 Science Instructional Building $2,674,537 7 weeks behind baseline

38 UNCG 40075-317 Science Instructional Building $0 6 weeks behind baseline39 UNCG 40075-315 Technology Infrastructure $205,065 5 months ahead of baseline

Residence Hall -Replacement of Jacobs & Wellons Halls40 UNCP 40081-307 CANCEllED41 UNCW 40078-313 Academic Support Facilities $3,216,605 41/2 months behind baseline

42 UNCW 40078-315 land Acquisition $0 5 months behind baseline

43 WCU 40079-303 McKee Classroom Renovation $0 2 months behind baseline

44 WCU 40079-304 Bird Building $0 3 months behind baseline

45 WSSU 40082-306 Replace Underground Steam and Hot Water Piping $80,213 5 weeks behind baseline

46 WSSU 40082-307 Chilled Water loop System $0 5 weeks behind baseline

47 WSSU 40082-310 F.l. Atkins Additions and Renovations $0 3 months behind baseline

48 WSSU 40082-301 Computer Science Facility $1,039,318 6 months behind baseline

49 WSSU 40082-311 Computer Science Facility -Planning $0 6 months behind baseline

50 UNC- TV 40089-302 Mobile Satellite Uplink -$600 On schedule51 UNCSSM 40069-302 Royall Center Renovation $0 2 months behind baseline

$6,403,807

Current as of 5/3/2004

Updated 6/11/2004 1 of 1

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Attachment D

North Carolina Community College SystemNew Non-State Match Required

For The 2000 State Bond Construction Funds

as of 5/21/04

TOTAL CONSTRUCTION2000 FUNDS CONSTRUCTION MATCH

COLLEGE OR COUNTY STATE BOND MATCHED FUNDS REQUIRED FORAND AVAILABLE NOT YET CONSTRUCTION

FUNDS* FOR USE MATCHED FUNDS

Transylvania Cty. (Blue Ridge CC) 1,801,615 941,628 859,987 859,987

Chatham Cty. (Central Carolina CC) 627,805 130,722 ,497,083 496,487

Cleveland CC 3,887,036 3,305.125 581.911 417,936

Dare Cty. (College of Albemarle) 742,724 452.070 290,654 290,654

Durham TCC 13,275.320 11.932.250 1,343.070 1.343.070

Fayetteville TCC 34,977,201 24,296,080 10,681,121 8,532,984

Lenoir CC 8.251,563 7,737.632 513,931 366,088

Pamlico CC 2.187,555 1.562.209 625,346 420,208

Piedmont CC 2.343,199 1,835.951 507,248 464.678

! Pitt CC 16,393,265 11.830,309 4,562.956 3,524,524!

Rowan-Cabarrus CC 5,207,129 3,088,735 2,118,394 1,726,939 t'

fSouthwestern CC 6,232,770 3.310.064 2,922,706 2,922,706

TOTAL 12 95.927,182 70,422,774 25,504,408 21,366,262

*This total does not include the "Repair and Renovation" funds which are not required to be matched.

Notes:

1. As of November 2000, the "MATCH REQUIRED FOR CONSTRUCTION FUNDS" was $94,155,998.

2. As of May 17,2002, the "MATCH REQUIRED FOR CONSTRUCTION FUNDS" was $65,588,245.

3. As of May 30, 2003, the "MATCH REQUIRED FOR CONSTRUCTION FUNDS" was $40,219,306.4. As of August 15, 2003, the "MATCH REQUIRED FOR CONSTRUCTION FUNDS" was $30,883,363

BCF/Non-St Match Req 5/21/04

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Attachment F

Nor1h Carolina Association of Community College Presidents

Ad Hoc Committee on HUB Par1icipation

Plan of Work

.All community colleges review current HUB Plans in light of Senate Bill 914requirements, with specific focus on good faith efforts required of the college,contractors, and d.esigners. .

.Community colleges should visit the HUB website www.doa.state.nc.us/hub/ andclick on HUBSCO to become familiar with data they should be collecting related toSenate Bill 914 and begin preparing for HUBSCO online reporting.

.Community colleges need to designate two people (capital project coordinator(CPC) and his/her staff member that will enter the data) to be trained on HUBSCOreporting software at community college locations to be announced at a later datein collaboration with the HUB office training schedule.

.Survey all community colleges to determine names/address/phone numbers ofsuccessful associations with HUB vendors in all categories of construction servicesfor possible use by all other community colleges. Community Colleges should use I .

HUB website including Vendor Link NC and outreach lists to enlarge pools of icandidates for bids. -,

.Community colleges should become familiar with MWBE Coordinators (listattached) and inform them of construction activities thus increasing the potentialnumber of bids from HUB contractors.

.Community colleges should investigate creating a local HUB advisory committee,with representatives from HUB organizations and HUB contractors from allgovernmental agency projects, to increase knowledge, collaboration andparticipation of HUB vendors.

.Recommend that HUB updates be given quarterly at NCACCP meetings, and thatthe summer meeting at Blue Ridge Community College have a special focuspresentation on HUB vendor utilization, good faith efforts with related point values,as well as "best practices".

.Community colleges might consider developing a site on their web page devoted toconstruction information and designer/contractor opportunities.

HUe/Pres Com/Plan ofWo(KJ

4/22/03

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