Table of Contents
I. UCONN 2000: THE UPDATE
II. ACTIVITIES COMPLETED OR UNDERWAY:

• PLANNING, DESIGN AND MANAGEMENT
• CONSTRUCTION
• CONNECTICUT CONTRACTOR SUMMARY
• FINANCE
• PRIVATE FINANCIAL SUPPORT
• PREVAILING WAGE COMPLIANCE REPORT

III. CURRENT PROJECT STATUS – PHASE I (as of October 2004)
IV. CURRENT PROJECT STATUS – PHASE II (as of October 2004)
V. CURRENT PROJECT STATUS – PHASE III (as of October 2004)
VI. CURRENT PROJECTS FUND SOURCES: PHASE I (as of October 2004)
VI. CURRENT PROJECTS FUND SOURCES: PHASE II (as of October 2004)
VII. CURRENT PROJECTS FUND SOURCES: PHASE III (as of October 2004)
CHARTS:

Total and Endowment Gifts for the University of Connecticut

Asset Growth: The University of Connecticut Foundation, Inc.

• Attachments & Exhibits:
• Attachment A – Alphabetical Listing of Contractors and Subcontractors
• Attachment B – Contractor Compliance
• Attachment C – Support Initiatives
• Exhibit A – UConn 2000 Year 10 Proposed FY 2004-05 Authorized Projects
• Exhibit B – UConn 2000 Phase III Project List/State Debt Service Commitment
• Exhibit C – Policies: Selection and Acquisition of Professional Services
• Exhibit D – Policies: Pre-Qualification and Selection of Contractors
• Debarment List

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UCONN 2000: THE UPDATE

This is the nineteenth in a series of semi-annual reports to the Governor and the General Assembly pursuant to the provisions of Sections 10a-109 through 10a-109y of the Connecticut General Statutes, originally An Act to Enhance the Infrastructure of the University of Connecticut, now known as UCONN 2000. These reports have been issued each October and April since passage of UCONN 2000 on June 7, 1995. The law also required a four-year progress report, which was filed on January 15, 1999.

UCONN 2000: ACTIVITIES COMPLETED OR UNDERWAY

• PLANNING, DESIGN AND MANAGEMENT
  • The University has almost completed the update of its 1998 Master Plan. In view of the extensive physical changes on all the campuses resulting from the UCONN 2000 investment and the 21st Century UConn initiative, it was necessary to update the plan so that the University can manage its capital resources most effectively. The plan, when finalized, will adjust the planning baseline to reflect the current physical plant, assess current and projected space needs relative to available facilities, assess the overall parking and transportation system including its financial and operational aspects, and refine the campus’ physical composition to advance improvements already in place. The planning effort includes activities on the West Hartford, Torrington and Avery Point campuses. Additionally, a plan is being developed for recreational and athletic facilities. The consultant for the Master Plan revision is JJR of Ann Arbor, Michigan. It is anticipated the plan will be complete in the spring of 2005.
  • The Law School Library has experienced an on-going series of leaks since opening in 1996. The project’s construction, which predates UCONN 2000, was managed by the Department of Public Works. Corrections undertaken did not resolve the situation, so the University hired its own consultants (Hoffman Architects of New Haven, and Simpson Gumpertz and Heger, Incorporated of Boston) to investigate, identify problems and propose solutions. The University is working with the Office of the Attorney General and the Department of Public Works to address the issue. Funding for repairs is in the State’s FY 2005 Capital Budget with an expectation of recovery of funds as appropriate. The University has requested that the Bond Commission approve the funding for design on corrections to the defects.
  • The University continues standardizing building systems and system components within its 222 overall building and renovation program, (e.g., electrical circuitry, panel boxes, etc.). This process will reduce the number of replacement parts UConn needs to inventory, speed repairs, and improve the level of maintenance and lower overall costs.
  • The Board of Trustees, at its March 23, 2004 meeting, approved the FY 2004-05 Capital Budget totaling $100,000,000 for system-wide capital improvements, equipment, telecommunications and library acquisitions as shown in Exhibit A. This amount reflects $50 million for the final year of Phase 2 of UCONN 2000 and $50 million for the first year of Phase 3, also known as 21st Century UConn. Together these amounts total the FY 2005 authorization “cap” of $100,000,000. The following is a brief description of the projects included in the FY 2004-05 Capital Budget.
  • The architects have been selected for the Arjona and Monteith (new classroom buildings) Project. This project will include the construction of new facilities to replace the Arjona and Monteith buildings, the two most heavily used classroom buildings on campus. Included in the facility will be classrooms and offices for various departments within the College of Liberal Arts and Sciences. The architects for the project are Leers Weinzapfel Associates of Boston.
  • Programming activities are underway on the Natural History Museum project. The State Museum of Natural History plans to establish a new Connecticut Archaeology Center to provide support for UConn graduate and undergraduate students and operate archaeology field schools. It also will provide elementary and secondary school teachers with training, curriculum guides and teaching resources; technical training and assistance to Connecticut municipalities; an active Web presence; and access for professional archaeologists, students and the public to maps, collections and an archaeology library. The Center will expand the museum’s ability to promote an appreciation of cultural and natural history, with a focus on New England. It will also provide access to the State’s largest collection of Connecticut artifacts and increase support of the Office of State Archaeology that is mandated by the State to protect some 1,000 archaeological sites on State land and over 3,000 sites on private land. (The State Archaeologist provides technical assistance to municipalities, cares for anthropological collections, and oversees sites of Native American burials and the return of sacred materials.) This share of the project, estimated at $700,000, will create space for work and display for these activities. Part of the funding, $200,000, will be from private donors. The architects for the project are Arbonies King Vlock, P.C. of Stony Creek, CT.
  • Design activities are underway on the North Hillside Road completion project. This project will extend Hillside Road by 5,300 lineal feet to Route 44 and will include related utilities such as gas, electrical, water, sewer and telecommunications. The new extension will allow enhanced access to campus and sorely needed relief from traffic congestion on Route 195. Also, the road and accompanying utilities will permit future development of this key parcel. The University’s Master Plan envisions the North Campus as a critical area for expansion of the main campus, permitting new science buildings, residential capacity, public/private partnerships (including incubator space) and other initiatives. The Town of Mansfield is supportive of the road project. The engineers for the project are Fuss & O’Neill Inc. of Manchester, CT.
  • Architects have been selected for the Torrey Renovation and Biology Expansion project that includes research labs, classrooms, and office space for Ecology and Evolutionary Biology programs and Physiology and Neurobiology Departments. The new building will be constructed on the current site of the Torrey Life Sciences Building. The program for the building has been developed and the schematic design is just beginning. Architects for this project are The Hillier Group of New York City.
  • Construction documents are being prepared on the Intramural, Recreational & Intercollegiate Facilities Project. This facility will house the football program including offices, training rooms, locker rooms and an indoor practice field. When not used by athletic teams the indoor field will be used by the recreational programs. Funding for this project includes $31,000,000 from Phase 3 of UCONN 2000 and $11,500,000 from private fundraising. The Board of Trustees, at its August 3, 2004 meeting, approved the EIE for the project. Architects for the project are Jeter Cook Jepson of Hartford and HOK of St. Louis, MO. Dimeo Construction of New Haven has been selected as the construction manager. Construction will begin in October 2004, with completion scheduled for July 2006.
  • Programming activities have been completed and schematic design activities are underway on the Lakeside Renovation Project. When complete the building will be occupied by University Communications, Governmental Relations and University Events. The architect for the project is Allan Dehar Associates of New Haven.
  • Programming activities are underway for the Union Quadrangle. This important outdoor space includes the area between the Student Union, Center for Undergraduate Education, Gentry and Benton Museum. The landscape architect for the project is Carol R. Johnson Associates of Boston.
  • Architects have been selected for the new research building at the Health Center campus.  The project will include new research laboratories, offices and support space and will be constructed in the “research zone” of the campus as defined by the 2002 Campus Master Plan.   The programming of the building is being developed at this time. The firm of CUH2A, Architecture, Engineering and Planning of Princeton New Jersey is the architect for the project.
  • The planning study for the Health Center’s Center for Laboratory Animal Care (CLAC) (in anticipation of the planned FY ’09 renovations) is complete. The planning document evaluates the existing vivarium facilities including conditions and capacities, projects volumes based on expected research growth, and recommends short and long term actions to provide adequate vivarium facilities and the creation of a bio-safety level 3 containment facility to support current and expanded research programs. The planning study was prepared by FLAD & Associates of Stamford, Connecticut.
  • A Planning Study for the renovations of the Health Center’s main building will begin in February ’05. The planning study will be prepared in anticipation of design funds for the project allocated in FY ’07.
  • Design for a portion of the Academic Building renovations project at the Health Center will begin in January 2005. The design will encompass renovations to the two main teaching auditoria, and will include upgrades to the technology, seating and all finishes.
  • The design of the Dental School’s pre-clinical lab renovations will begin in November of this year and will include essential upgrades to the labs to support the programs of the School of Dental Medicine.
  • Various Health Center deferred maintenance projects are scheduled for this year. The most critical among them is the cooling tower refurbishment project and electric re-heat coil replacement project. Design is underway for these projects and bidding for construction is anticipated for early 2005.

CONSTRUCTION

• The University has received necessary permits, and construction activities have begun on the gas turbine of the Cogeneration/Central Chilled Water Facility that will produce electricity for the Storrs campus. Secondary waste heat will provide heating, hot water and/or cooling for the Storrs campus as well. The bid process was undertaken as a prerequisite to determine the feasibility and advisability of moving to cogeneration. Independent analysis projected potential significant energy cost-savings, and data from the bid process informed a cost/benefit analysis that led the Board of Trustees to endorse proceeding with the project. A contract was awarded to Select Energy. The project is financed through Caterpillar Financial Services Corporation using a capital lease structure with an interest rate of 4.3%. Savings generated by the facility will pay the debt and debt service. The project is anticipated to be completed in August 2005. Construction manager for the project is O & G Industries of Torrington, CT.
• Construction is underway on the new School of Pharmacy/Biology Building that includes 120,000 square feet of space for teaching and research for the Pharmacy program and 80,000 square feet of research space for Biology. Also included is a consolidated 26,000 square foot animal care facility to support research programs in this area of campus. The architect for this construction project is Davis, Brody, Bond of New York City. Gilbane of Glastonbury is the construction manager for the project to be completed in July 2005.
• Construction on an addition to the Neag School of Education’s Gentry Building has been completed. The project scope includes a partial renovation of the building’s interior, exterior improvements of the façade and roof, and a 20,000 square foot addition to the building. The architect for the project was Svigals Associates of New Haven. Gilbane of Glastonbury was the construction manager on the project.
• Renovations and deferred maintenance projects in facilities on the Avery Point Campus have been completed or are in the construction or design phase.
• Construction has begun on the second phase of the Student Union Project. This phase of the work includes the demolition of the south end of the building and the construction of a new addition, which includes space for a food court, retail space, cultural center facilities and a ballroom with occupancy capacity of 300. This phase of the project is scheduled for completion early in 2006. The first phase of the project, which includes a 500-seat theater, student activity offices and meeting spaces, a central post office for all student mail, cultural centers and offices for student organizations, has been completed. It also included space for the student-run radio and TV stations. The architect for the project is Cannon Associates of Boston. The construction manager for the project is Konover Construction of West Hartford.
• Construction was completed in August 2004 on the installation of sprinklers in the West Campus Dorms. With the completion of this project, all on-campus residential life facilities are fully protected by sprinklers.
• The Nafe Katter Thrust Theatre Project was completed in September 2004. This 229-seat facility was funded in part by a private donation.
• The Lyman Maynard Stowe Library renovations at the Health Center funded by previously authorized bond funds are scheduled for completion in November of this year. The funds allocated under UCONN 2000 were committed for hazardous material removal done as part of the project.
• As a result of a routine maintenance check at the Hilltop Apartments in August, an elevated level of carbon monoxide was identified in two of the 354 units in the apartment complex. The problem was caused by the air conditioning system drawing exhaust fumes from the hot water heater when both were operating simultaneously. The University took the necessary steps to protect the health and safety of the student residents while the problem was being resolved, which occurred by the end of September. As a result of making these repairs, code violations were identified in the Hilltop Apartments, also in the Husky Village residential complex and Charter Oak apartments and suites. The UConn fire Marshal’s office, with the concurrence of the Storrs Fire Marshal’s office, have determined that these buildings are safe for occupancy. Work to identify and correct all code violations is underway. The University is taking necessary action to pursue recovery as appropriate from contractors and design professionals with respect to both the air handling and code violations problems.

UCONN 2000: SET-ASIDE CONTRACTOR SUMMARY

• Public Act 99-241 called for, among other things, information regarding use of Connecticut- owned businesses on UCONN 2000 program projects, including those owned by women and minorities (“set-aside” contractors). Since Fiscal Year 1996, construction and related contracts for the UCONN 2000 program totaled $1.037 billion. Twenty-four (24%) percent of this total, or $244.4 million, has gone to “set-aside” general contractors, contracted architects and engineers, and subcontractors. In this period, Connecticut businesses have accounted for $906.1 million, or 88%, of the total contracted dollars. Small business participation has amounted to $143.2 million and minority and women-owned participation has accounted for $101.3 million.

UCONN 2000: FINANCE

• Debt Service Commitment Bond Issues Completed
  Section 10a-109 of the Connecticut General Statutes empowers the University to issue General Obligation Bonds secured by the State’s Debt Service Commitment (sometimes referred to as “Debt Service Commitment Bonds” or “DSC Bonds”). These Bonds are issued pursuant to the General Obligation Master Indenture of Trust, dated as of November 1, 1995, between the University of Connecticut, as Issuer, and Fleet National Bank of Connecticut as Trustee (now U.S. Bank N.A.). The University’s Board of Trustees on November 10, 1995 and the State Bond Commission approved the Master Indenture of Trust on December 21, 1995. UConn’s Board of Trustees and the Governor approve the subsequent Supplemental Indentures for each bond issue. The University and Office of the State Treasurer, working in conjunction, manage the Debt Service Commitment Bond sale process. University General Obligation Debt Service Commitment Bonds issues to date are summarized below:A.) G.O. Bonds: Project Fund

B.) Refunding G.O. Bonds

 

The nine series of UCONN General Obligation DSC bonds issued to fund projects total $912,482,146.50 in face value and provided $912,000,000 for UCONN 2000 project spending. (Excluding the $216,950,000.00 UCONN General Obligation DSC Refunding Bonds Series 2004A issued to refund $223,160,000 of prior bonds.) The remaining balance, together with accrued interest and net original issue premium, funded the costs of issuance.

 

On January 22, 2003 the University issued $97,845,000 face amount of the University of Connecticut Debt Service Commitment Bonds 2004 Series A, at a very favorable true interest cost of 3.76%, the lowest in the history of the program, with a 10.5 Years Average Life and with very favorable call redemption terms of 2014 @ Par. Selected maturities on and after January 15, 2013 carried MBIA bond insurance.

UConn 2000 General Obligation Debt Service Commitment Projects

To date, sixty-six projects totaling $1,012,000,000 have been authorized to receive General Obligation Debt Service Commitment bond proceed funding, as follows:

UCONN2000 GENERAL OBLIGATION BONDS SECURED
BY THE DEBT SERVICE COMMITMENT OF THE STATE

 

* Board of Trustees Added Project 2/22/2001

 

On July 1, 2004, $100,000,000 of authorizations representing the last $50,000,000 of Phase II and the initial $50,000,000 of Phase III will be effective. The former will complete the $962,000,000 of Phase I and Phase II authorizations under the original UCONN 2000 Act.

 

• University Refunding Provides Debt Service Savings to State
  UCONN achieved $15.2 million in debt service savings for Connecticut taxpayers, on January 29, 2004 when the University closed on $216,950,000.00 of UCONN GENERAL OBLIGATION DSC REFUNDING BONDS SERIES 2004-A. Institutions garnered most of the bonds. Proceeds pre-refunded $223,160,000 of the portions of the 1996, 1997, 1998, 2000, 2001, and 2002 UCONN 2000 General Obligation Debt Service Commitment Bonds. Debt Service savings amounted to $15,215,582.84 million on a gross cash debt service savings basis, or $10,117,718.77 on a net present value basis (4.53% savings of refunded bonds), spread across fiscal years 2004 to 2020. These are real dollar savings for Connecticut taxpayers.
• University’s Financial Statements
  The University’s financial statements reflect the UCONN 2000 programs. The General Obligation and Special Obligation bonds and other debt are shown as liabilities on the University’s financial statements. The financed UCONN 2000 projects and any unspent debt proceeds are shown as assets. The State’s Debt Service Commitment to pay for the University’s General Obligation Bonds is also shown as an asset on the University’s financial statements.
• Trustee Bank
  The proceeds of the sale by the University of any bonds are part of the Trust Estate established under the General Obligation Master Indenture of Trust with the Trustee Bank as security for bondholders. Consequently the Trustee Bank holds all of the bond proceeds, with this exception: the State Treasurer’s Office may hold and invest the University’s General Obligation Bonds Debt Service Commitment funded Costs of Issuance account. The Special Obligation Master Indenture has similar Trust Estate provisions and the Trustee Bank holds all the Special Obligation bond proceeds received at issuance including the costs of issuance account.Prior to June 1998, all University General Obligation Debt Service Commitment Bond proceeds were deposited with the Office of the State Treasurer and treated like State bond proceeds, including payments made to vendors through the Office of the State Comptroller. Subsequently, the Office of the Attorney General opined that the University, and not the State, issues UCONN 2000 bonds. Accordingly, upon advice of bond counsel and in conformity with the Master Indenture of Trust, Debt Service Commitment Bond construction fund proceeds were deposited to the Trustee Bank and disbursed as directed by the University pursuant to the Indenture. Per the State’s preference, the University General Obligation Debt Service Commitment Bond proceeds for costs of issuance are still treated like State bond proceeds and deposited with the Office of the State Treasurer, and disbursed through the Office of the State Comptroller.The Indentures of Trust provide that the University is authorized and directed to order each disbursement from the Construction Account held by the Trustee upon a certification filed with the Trustee bank, and in the case of the Debt Service Commitment bonds, also the State Treasurer. The Indentures provide that such certification shall be signed by an Authorized Officer of the University and include certain disbursement information. Once the Authorized Officer certification filings are made, the University can directly disburse payments.
• University Special Obligation Revenue Bonds Secured by Pledged Revenues
  UCONN 2000 also authorizes the University to issue Special Obligation Revenue bonds. Unlike the University’s General Obligation Debt Service Commitment Bonds that are paid from the State’s General Fund, debt on the Special Obligation Bonds is paid from certain Pledged Revenues of the University as defined in the particular bond series indenture.A Special Capital Reserve Fund may be established for University Special Obligation bond issues only if the Board of Trustees determines that the Special Obligation bond issue is self-sufficient as defined in the Act. The self-sufficiency finding by the University must be submitted to and confirmed as not unreasonable or arbitrary by the State Treasurer prior to issuance of the bonds. Once approved, the Special Capital Reserve Fund is funded at issuance by the University to meet the minimum capital reserve requirement. However, subject to notification by the University on or before December 1, annually, if this amount falls below the required minimum capital reserve, there is deemed to be appropriated from the state General Fund sums necessary to restore each such Special Capital Reserve Fund to the required minimum capital reserve.
• Special Obligation Student Fee Revenue Bond Issues
  Student Fee Revenue Bonds have been issued pursuant to the Special Obligation Indenture of Trust, dated as of January 1, 1997, between the University as Issuer and U.S. Bank N.A. as successor to State Street Bank & Trust as Trustee (“the Special Obligation Master Indenture”). The Board of Trustees approved the Master Indenture on November 8, 1996.UConn’s Board of Trustees and the Governor approve the subsequent Supplemental Indentures for each Special Obligation bond issue. The University and Office of the State Treasurer, working in conjunction, manage the Special Obligation Bond sale process. University Special Obligation Student Fee Revenue Bonds issues to date are summarized below:

  Date of Issue	Par Amount	TIC (1)	Special Obligation Student Fee Revenue Bond Issue
  February 4, 1998	$ 33,560,000.00	5.08%		1998 Series A
  June 1, 2000	$ 89,570,000.00	6.02%		2000 Series A (2)
  February 14, 2002	$ 75.430,000.00	4.94%		New Money 2002 Series A
  February 27, 2002	$ 96,130,000.00	4.89%		Refunding 2002 Series A
  (1) TIC is the true interest cost reflecting the interest rate for the time value of money across an entire bond issue. The University Special Obligation Bonds are generally issued for an approximate 30-year final maturity, compared to a 20-year final maturity for the General Obligation DSC Bonds, hence the TIC may appear relatively higher for Special Obligation Bonds. (2) The Series 2000-A bonds were refunded on Feb. 27, 2002.

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  On February 4, 1998, the University issued $33,560,000 of University of Connecticut Student Fee Revenue Bonds 1998 Series A (“SFR 1998-A Bonds”) with a final maturity of November 15, 2027. The Special Obligation First Supplemental Indenture was also dated January 1, 1997 and authorized the issuance of bonds up to a principal amount not to exceed $30,000,000 for construction of the South Campus Residence and Dining Hall, plus amounts necessary to fund a Special Capital Reserve Fund (“SCRF”) and provide for costs of issuance. The University managed the issuance and sale of these bonds and realized a favorable true interest cost over the term. Debt service for these bonds is paid from the student Infrastructure Maintenance Fee instituted in 1997 and other pledged revenues as further defined in the Indenture of Trust. Such pledged revenues also help support future operation and maintenance costs for facilities built or expanded through UCONN 2000.

  On June 1, 2000, the University issued $89,570,000 of the University of Connecticut Student Fee Revenue Bonds 2000 Series A (“SFR 2000-A”) pursuant to the Special Obligation Master Indenture, and the Special Obligation Student Fee Revenue Bonds Second Supplemental Indenture dated as of May 1, 2000. Bond proceeds funded $87,000,000 of construction for the Hilltop Dormitory, Hilltop Student Rental Apartments, and Parking Garage South and also provided for capitalized interest and costs of issuance. The $89,570,000 SFR 2000 Bonds were defeased in substance on February 27, 2002, as further described below, and are no longer reflected as outstanding debt on the University’s financial statements.

  On February 14, 2002, the University issued $75,430,000 of the University of Connecticut Student Fee Revenue Bonds 2002 Series A pursuant to the Special Obligation Master Indenture and the Special Obligation Student Fee Revenue Bonds Fourth Supplemental Indenture, dated as of November 16, 2001. Bond proceeds funded $72,180,000 of construction for the Alumni Quadrant Renovations, Shippee/Buckley Renovations, East Campus North Renovations, Towers Renovations (including Greek Housing), and North Campus Renovations (including North Campus Student Suites and Apartments).

  On February 27, 2002, the University issued $96,130,000 of the University of Connecticut Student Fee Revenue Bonds 2002 Refunding Series A pursuant to the Special Obligation Master Indenture and the Special Obligation Student Fee Revenue Bonds Third Supplemental Indenture, dated as of February 1, 2002. Bond proceeds were used to take advantage of favorable market conditions to advance refund and defease in substance all of the $89,570,000 of Student Fee Revenue Bonds 2000 Series A bonds outstanding. Proceeds were deposited with the Trustee bank in an irrevocable escrow fund sufficient to satisfy future debt service and call premiums on the prior issue.

• UCONN2000 Special Obligation Student Fee Revenue Projects
  To date, nine projects have been authorized to receive the University’s Special Obligation Student Fee Revenue bond proceeds funding. Some of these projects were also supported by General Obligation or other funding, as follows:UCONN2000 SPECIAL OBLIGATION STUDENT FEE
  REVENUE BOND PROCEEDS FUNDED PROJECTS

  Projects Special Obligation Authorized and Issued
  Alumni Quadrant Renovations	$ 7,000,000
  East Campus North Renovations	1,000,000
  Hilltop Dormitory New	21,000,000
  Hilltop Student Rental Apartments	42,000,000
  North Campus Renovation (including North Campus Student Suites and Apartments)	45,000,000
  Parking Garage-South	24,000,000
  Shippee/Buckley Renovations	5,000,000
  South Campus Complex	30,000,000
  Towers Renovations (including Greek Housing)	14,180,000
  Totals	$189,180,000

• Other UCONN 2000 Debt – Tax-Exempt Lease
  On December 18, 2003 the University entered into a $75,000,000 Governmental Tax-Exempt Lease Purchase Agreement to finance the design and construction of a combined heat and power plant, as part of the UCONN 2000 Heating Plant Upgrade project, which is expected to generate substantially all of the needs for electrical power, heating and cooling on the main campus at Storrs. Savings generated by the facility will pay debt pursuant to the lease. Although not issued pursuant to the governing bond documents such as the Master Indentures of Trust is nevertheless considered to be debt of the University and weigh in credit rating decisions.
  
• Credit Ratings
  Since the inception of UCONN 2000, the University’s bond issues have experienced a favorable credit rating history, including several credit rating upgrades. For example, as of September 13, 2004 Moody’s assigned an “Aa3” rating to both the University’s General Obligation Bonds secured by the State’s Debt Service Commitment and the University’s Special Obligation Student Fee Revenue Bonds. It is a strong vote of confidence in the University that both these ratings are ranked the same as the State’s General Obligation Bond “Aa3” credit rating.The capital markets have recognized the tangible benefits to the State’s economy of meeting the infrastructure and educational goals of the program, as well as the University’s success in implementing them. A high quality credit rating not only provides the State and the University with less expensive access to the capital markets but also supports the State’s quality reputation among investors. A University milestone occurred in 2002 with the achievement of the high-grade “double A” credit-rating category from Moody’s Investors Service for both its General Obligation and Special Obligation bonds.As of October 1, 2004, the UCONN 2000 General Obligation Debt Service Commitment bonds were rated “AA” by Standard & Poor’s; “Aa3” by Moody’s Investors Service; and “AA-” by Fitch Investors Service. Also the University’s Special Obligation Bonds not secured by SCRF were rated “AA-” by Standard & Poor’s and “Aa3” Moody’s Investors Service. Fitch Investors Service does not rate the Special Obligation bonds not secured by SCRF. The Special Obligation Bonds Series 1998-A carry a Special Capital Reserve Fund and are rated “AA” by Standard & Poor’s “Aa3” by Moody’s, and “AA-“by Fitch. In addition to the underlying credit ratings, “AAA” rated municipal bond insurance secures certain maturities of several of the above bond issues.February 1996: the first issue of the University’s General Obligation Bonds secured by the State’s Debt Service Commitment carried underlying ratings of “A1” by Moody’s Investors Service, “AA-” by Standard & Poor’s and “AA-” by Fitch.February 1998: the first issue of UCONN 2000 Special Obligation bonds depended upon the State’s SCRF credit rating. An underlying “stand alone” credit rating was not available for this nascent program. At the time of issuance, the State SCRF enhancement allowed the bonds to obtain an “AA-” rating from Standard & Poor’s, “AA-” from Fitch Investors Service, and “A-1” from Moody’s Investors Service. The bonds were subsequently covered by municipal bond insurance and upgraded to an “AAA” at Fitch and Standard & Poor’s and “Aaa” at Moody’s Investors Service.October 1998: Standard & Poor’s upgraded the UCONN 2000 General Obligation DSC Bonds and the UCONN SFR 1998-A (SCRF) bonds to “AA” from “AA-”.March 2000: Moody’s upgraded UCONN 2000 General Obligation DSC Bonds to “Aa3” from “A1”.June 2000: the University achieved a milestone with its first underlying Special Obligation Bond “stand alone” credit rating of “AA-” (S&P), and an “A1” (Moody’s).February 2001: Moody’s upgraded UCONN 2000 General Obligation DSC Bonds to “Aa2” from “Aa3”. In April 2001, the General Obligation DSC 2001 Series A bonds were sold without any bond insurance security enhancement on any maturity, another successful first-time accomplishment for the UCONN 2000 bond program. Moody’s upgraded UConn’s SFR 1998-A Bonds, which are secured by the State SCRF, at this time to “Aa3” from “A1”.January 2002: UConn’s 2000 Special Obligation Bonds (Non-SCRF) were upgraded to “Aa3” from “A1” by Moody’s. This graduated UConn’s Special Obligation bonds to Moody’s “high-grade” bond category and impacted the underlying credit on all outstanding Special Obligation Student Fee Revenue Bonds. (The $33.6 million Special Obligation Student Fee Revenue Bonds Series 1998-A bonds which are secured by the State’s SCRF already carried the “Aa3” rating.) This high rating was assigned a stable outlook and represented a positive judgment by the capital markets regarding UConn’s financial strength, real and potential growth as an institution, and management.August 2002: Reflecting the outlook changes for the State’s General Obligation Bonds, Moody’s and Standard and Poor’s both moved their outlook from “stable” to “negative” for UConn’s General Obligation DSC Bonds while retaining their respective credit rating levels at “Aa2” and “AA”. Fitch took no action. In a sign of confidence in the University’s management and growth potential, Moody’s and Standard & Poor’s kept UConn’s Special Obligation Bond ratings levels and stable outlook unchanged.

  March 2003: During tougher economic times the rating agencies confirmed the University’s General Obligation DSC bond ratings as follows: Fitch “AA-”; S&P “AA”; and Moody’s “Aa2”. Moody’s also confirmed UConn’s Special Obligation and Foundation bond ratings at “Aa3”. Holding the credit ratings was a good sign, in light of Moody’s February 2003 move of the State General Obligation bonds, and consequently the University’s DSC and SCRF security bonds, to Watch list for possible downgrade.

  July 2003: On July 2, 2003, citing State budget problems, Moody’s downgraded the University’s General Obligation DSC bond ratings to “Aa3” from “Aa2” consistent with its action on the State General Obligation bond rating. The good news was that Moody’s also confirmed UConn’s Special Obligation (“non-SCRF) bond ratings at “Aa3”. Moody’s also briefly downgraded the University’s 1998 Special Obligation Bonds secured by the State’s SCRF to “A-1” following a general downgrade of any bonds backed by the State’s SCRF, but then upgraded the University’s 1998 Special Obligation Bonds back to “Aa-3” on July 14, 2003.

  January 2004: Importantly, we were successful in confirming the credit ratings for the UCONN General Obligation Debt Service Commitment bonds at a time of State budget deficits and negative press reports. The unenhanced ratings for the UCONN 2000 GO DSC 2004 new
  money and refunding bond issues were as follows: Moody’s Investors Service “Aa3”, Standard & Poor’s “AA” and Fitch IBCA “AA-”. Several maturities also carried “AAA” rated MBIA bond insurance.

• Debt Service
  The State General Fund pays the debt service on the University’s General Obligation Debt Service Commitment Bonds. The University pays the debt service on the Special Obligation Student Fee Revenue Bonds from its own resources. For all the UCONN 2000 General Obligation Debt Service Commitment securities issued since the program’s inception in 1996 to September 30, 2004 (including the DSC2004 Refunding Bonds but net of refunded debt) debt service totals $1,347.6 million, representing $906.3 million of principal and $441.4 million of interest (including capital appreciation bonds).As of September 30, 2004 there will be total debt service remaining of $1,005.8 representing $717.9 million of principal and $287.9 million of interest (including capital appreciation bonds).For the Fiscal Year Ending June 30, 2004 the Debt Service Commitment paid for the University’s General Obligation Bonds amounted to $67.5 million (representing $42.9 million of principal and $24.6 million of interest).UCONN 2000 Special Obligation Student Fee Revenue securities debt service amounts to $392.6 million, representing $205.1 million of principal and $187.5 million of interest over the course of the maturity spectrum, net of pre-refunded and defeased bonds. As of September 30, 2004 there will be $193.8 million of principal and $151.8 million of interest remaining (including capital appreciation bonds). All other things equal, the Special Obligation bonds incur proportionally more interest expense because they are generally issued for terms of up to thirty years compared to twenty years for the Debt Service Commitment bonds.For the Fiscal Year Ending June 30, 2004 the University paid from its own resources Special Obligation Bond debt service of $13.2 million (representing $3.8 million of principal and $9.4 million of interest).
• UCONN 2000 Bond Proceed Investments
  The investment of tax-exempt bond proceeds is heavily regulated by the Internal Revenue Service, the relevant Indentures of Trust with bondholders, Connecticut law, and other regulatory mechanisms. In addition to meeting those requirements, the University’s general investment policy is to balance an appropriate risk-return level, heavily weighted towards safety of assets, with estimated cash flow needs and liquidity requirements. The University is also mindful that the rating agencies, bond buyers, and bond insurers often weigh the quality of an issuer’s investment portfolio.Bond Proceeds form part of the Trust Estate established with the Trustee Bank as security for bondholders. To date, the University has directed the Trustee Bank to invest any Debt Service Commitment construction fund proceeds in the State Treasurer’s Short Term Investment Fund (“STIF”) which is “AAA” rated and offers daily liquidity and historically attractive risk-adjusted yields. The State Treasurer’s Office wishes to hold and invest the University’s General Obligation Bonds Debt Service Commitment funded Costs of Issuance account, a much smaller account.Similarly, the University has directed the Trustee Bank to invest all the Special Obligation new money bond proceeds in dedicated STIF accounts, with the exception of the 1998 Special Obligation Special Capital Reserve Fund which is invested in longer term “AAA” rated federal agencies’ fixed income Investment Obligations as defined in the Special Obligation Indenture of Trust.The Special Obligation Student Fee Revenue Refunding Series 2002-A proceeds, other than the costs of issuance and debt service accounts that are invested in STIF, are held by the Trustee Bank in an irrevocable escrow fund, which is invested in U.S. Treasury State and Local Government Securities (“SLGS”) and cash pursuant to the Escrow Agreement.
• UCONN 2000 Bond Proceed Investment Earnings
  The Debt Service Commitment bond proceeds investment earnings are retained by the State Treasurer’s Office and do not flow to the University or to the Trustee Bank.Fiscal Year End June 30, 2004 UCONN 2000 Special Obligation Student Fee Revenue Bonds investment earnings amounted to approximately $168.8 thousand (cash basis). The Student Fee Revenue Bonds investment earnings are part of the Pledged Revenues and are directly retained by the Trustee Bank to pay debt service on the bonds, and may also be used to flow to other Trustee bond accounts, if necessary, pursuant to the Indenture of Trust.The investment earnings on the Special Obligation Student Fee Revenue Series 2002-A Refunding Escrow Account flow to the irrevocable escrow and are used by the Trustee Bank to meet debt service payments on the defeased bonds.Similarly, investment earnings on the General Obligation Debt Service Commitment Series 2004-A Refunding Escrow Account flow to an irrevocable escrow and are used by the Trustee Bank to meet debt service payments on the defeased bonds.
• Future UCONN 2000 Debt Issuance
  The University anticipates offering a Debt Service Commitment Bond issue during fiscal year 2005 to fund an expected $100 million of UCONN 2000 Projects. The passage of 21st Century UConn allows for $1.3 billion of additional securities backed by the State’s Debt Service Commitment, phasing in during Fiscal Year 2005. Additionally, the University could issue Special Obligation Revenue bonds for certain projects that have a financial self-sufficiency capacity, and/or if aggregate pledged revenues are sufficient to meet requirements of the Special Obligation Indenture. Market conditions and other factors might also lead to issuance of either General Obligation or Special Obligation refunding bonds in the future. Finally, the University may enter into other types of tax-exempt debt.

PRIVATE FINANCIAL SUPPORT
Campaign UConn, the largest private fund-raising effort ever conducted by a public university in New England, ended on June 30, 2004 exceeding its $300 million goal by a record-shattering $171.1 million.

The $471.1 million total includes the in-kind gift of engineering software from UGS PLM Solutions, a subsidiary of EDS, with a commercial value of $146.1 million – the largest gift ever received by the University.

The gifts and pledges collected during the six-year Campaign will support students, faculty, and academic programs. Of the 115,000 individuals, corporations, charitable foundations, and other organizations that made nearly 323,000 gifts and pledges during the Campaign, more than 61,000 were first time donors.

Fiscal year 2004, which ended on June 30, was the most successful single year of fund-raising in the University’s history. In addition to the $146.1 million in-kind gift, the University raised $75 million, besting the previous high of $57 million raised in 2001. The Annual Fund also surpassed its goal of $2.5 million and investment returns earned 16.5 percent.

Every school college and campus is benefiting from Campaign UConn. Of the donations received, $37.5 million has been designated primarily for scholarships, $45.3 for faculty support, and $388.3 for program enhancements and some building projects not covered by UCONN 2000/21st Century UConn.

The impact of the Campaign can be measured by the 415 new endowments established. Of these, 253 are for student scholarships, fellowships and awards; 37 for faculty, which includes 17 endowed chairs and 8 professorships; and 125 for program support. The total number of endowments now stands at 1,016. There are 629 for student support, 95 for faculty support and 292 for program support.

In addition, the Campaign more than doubled the University’s endowment from $123 million in 1998 to $250 million.

The largest gift to the Campaign by an individual was from Ray Neag ’56 ’01H, who pledged a total of $23 million – $21 million in support of the Neag School of Education and $2 million to endow the Ray Neag Distinguished Chair in Vascular Biology at the Health Center.

STATE ENDOWMENT MATCHING FUNDS
The University anticipates receiving $18.63 million in endowment matching funds from the state of Connecticut in the fall of 2004. The funds, which had been delayed due to State budget difficulties, cover gifts given in the calendar years 2000 through 2003.

Significant Commitments
Ray and Carole Neag have made a post-campaign commitment of $10 million to name and support the Carole and Ray Neag Comprehensive Cancer Center at the UConn Health Center. Half of the gift will go to endowment.

I’mPACT World, Ltd. made a $4.2 million gift to the University establishing the Yuji Hayashi Distinguished Chair in Plasma Chemistry and the Yuji Hayashi Fellows, within the Chemistry Department. This generous gift established the second distinguished chair and first endowed fellowships in the Department.

The School of Pharmacy received a $2 million gift from Pfizer Global Research and Development, a division of Pfizer Inc., to endow the school’s first distinguished chair, the Pfizer Distinguished Endowed Chair in Pharmaceutical Technology. It is the largest single gift ever received by the School.

Dr. John W. Rowe, chairman and CEO of Aetna Inc., and his wife, Valerie, have made a $1.5 million gift to endow the John and Valerie Rowe Health Professions Scholars Program. Under this program, Storrs-based undergraduate programs and the UConn Health Center in Farmington will collaborate to enhance the educational experience of underrepresented students interested in pursuing careers in medicine and dental medicine. Dr. Rowe is Chairman of the University of Connecticut Board of Trustees.

An anonymous donor gave $1 million to fund the Linda and David Roth Chair in Cardiovascular Research at the UConn Health Center.

The Estate of Marianne Hartly left $2 million to establish the Dr. Manfred J. Sakel Endowed Fund at the UConn Health Center.

The Estate of Geraldine Waring left $888,000 to enhance the Dr. Charles E. Waring Chemistry Scholarship Fund and $111,000 for the Dr. Charles E. Waring Football Scholarship Fund.

Peter M. Shanley ’57 made a commitment of $250,000 to establish the Peter Shanley Endowment to provide program support for the School of Business.

The Estate of Nancy S. Cassone left $200,000 to support The Domenico & Julia (Centonze) Cassone Scholarship Fund to assist women of Italian-American heritage who wish to attend UConn-Stamford.

An anonymous donor made a gift of $181,850 in support of the Smyrski Farm Scholarship for students enrolled in the College of Agriculture and Natural Resources.

Dominick A. Pagano ’68 donated $100,000 to establish the Dominick A. Pagano Endowed Scholarship in Computer Science and Engineering Fund.

Bernard Sippin ’52 donated $100,000 to establish the Bernard Sippin ’52 Scholarship Fund for students enrolled in the Finance Program of the School of Business.

Breckenridge Pharmaceutical, Inc. committed $100,000 to support the School of Pharmacy Endowment for the 21st Century. The endowment provides support for faculty, scholarships and programmatic enhancements.

Bernard M. Cronin ’60 committed $50,000 to establish the Bernard M. Cronin ’60 Sales Excellence Scholarship Fund for undergraduates enrolled in the School of Business Sales Certificate Program.

Gerald N. Koblin ’60 committed $50,000 to support the School of Pharmacy Endowment for the 21st Century.

Robert W. Strickland ’50 committed $50,000 to be split evenly between the Robert W. Strickland Endowed Scholarship Fund for Engineering students and the Endowment Fund for the Alumni Association to support programs sponsored by the Alumni Association.

PricewaterhouseCoopers, LLP committed $50,000 to the Richard F. Kochanek Faculty Excellence Fund for the Accounting Department of the School of Business.

Eileen W. Palermo established a Charitable Remainder Unitrust for $50,000, which will eventually benefit an endowment for the advancement of language study within the College of Liberal Arts and Sciences.

PREVAILING WAGE COMPLIANCE REPORT

The attachments referred to below cover the period of April 1, 2004 through September 30, 2004 and are issued pursuant to the requirements of subsection (f) of section (7) of Public Act 02-3, an Act Concerning 21st Century UCONN, by providing the following information:

1. The names and addresses of contractors and subcontractors performing repair, addition, alteration and new construction on the university’s campuses in the previous six months.Attachment A (Download or open as an Excel spreadsheet) provides the list in alphabetical order. This is the third report, which is being filed in conjunction with the October 2004 Report Number nineteen to provide a consolidated report for UCONN 2000 activities. There is no sub grouping of contractors or subcontractors, as the nature of their business makes each interchangeable with the other as business opportunities become available.
2. The extent to which the listed contractors and subcontractors have been in compliance with the provisions of part III of Chapter 557 and provisions of Chapter 558 [of the Connecticut General Statutes having to do with the payment of prevailing wage rates].This information is in Attachment B (Download or open as an Excel spreadsheet) which is based on information from the State of Connecticut Department of Labor, Wage and Workplace Standards Division, Contract Compliance Unit and represents a combined sharing of information by the University of Connecticut and the Department of Labor.
3. Any actions taken by the University to cooperate with the Labor Department in the enforcement of said provisions [in item (2)].Attachment C lists support initiatives by the University.Attachment D is the Debarment list issued by the Department of Labor

 

III. CURRENT PROJECT STATUS – PHASE I (as of October 2004)

IV. CURRENT PROJECT STATUS – PHASE II (as of October 2004)

 
V. CURRENT PROJECT STATUS – PHASE III (as of October 2004)

VI. CURRENT PROJECTS FUND SOURCES: PHASE I (as of October 2004)

VI. CURRENT PROJECTS FUND SOURCES: PHASE II (as of October 2004)

VII. CURRENT PROJECTS FUND SOURCES: PHASE III (as of October 2004)

CHARTS:

  

 

ATTACHMENT A

ATTACHMENT B

ATTACHMENT C

ACTIONS AND INITIATIVES BY THE UNIVERSITY TO COOPERATE WITH THE DEPARTMENT OF LABOR IN THE ENFORCEMENT OF THE STATE’S PREVAILING WAGE LAWS

Under State statute, the Department of Labor is the only state agency authorized to enforce the State’s prevailing wage laws. The University of Connecticut has put into place measures that help the Department of Labor with their enforcement of the law. Furthermore, the University is required under Public Act 02-03 of the May 9, 2002 Special Session to specifically consider labor law compliance by contractors and their subcontractors as part of the Pre-Qualification process and prior to the award of any contract.

The University requests, as part of the Pre-Qualification process, the disclosure of information regarding each applicant’s record of compliance with the State’s prevailing wage and payment laws. The list of applicants is compared to the Debarment List, (Attachment D), issued by the State of Connecticut Department of Labor, which also contains a list of persons or firms who have been debarred under the Federal Davis Bacon Act. The Debarment List is also circulated to all project managers and construction administrators for their reference.

The list of Applicants, as a cross check, is submitted to the Department of Labor. The information supplied by the applicant is compared to the information supplied by the Department of Labor. Any discrepancies are verified with the Department of Labor and, if warranted, a letter is sent to the contractor to explain the specific circumstances of any violation and what measures they have instituted to prevent a future reoccurrence.

All contracts between the University and its contractors includes provisions that require the contractor and its subcontractors to abide by all relevant employment laws, including the prevailing wage statutes. On some projects, the University has required contractually, that the General Contractor or Construction Manager dedicate staff to monitor its subcontractors compliance with prevailing wage statutes.

Throughout the duration of the construction project, as part of all regularly scheduled job meetings, the contractor (and through the contractor, the subcontractors) is reminded by the project managers and construction administrators of project safety, schedule, CHRO requirements, wage rates, and other topics.

As noted previously, University staff members from Capital Project & Contract Administration, the Purchasing Department, Architectural and Engineering Services, and Bechtel/Fusco (the University’s Construction Administrator), have met with the Department of Labor’s Administrative and Field Representatives from the Wage and Workplace Standards Division, for the purpose of coordinating the procedures for tracking Certified Payrolls.

EXHIBIT A

EXHIBIT B

EXHIBIT C

POLICIES: SELECTION AND ACQUISITION OR PROFESSIONAL SERVICES

Section 10a-109d (5) of the State Statues authorizes the University to contract with professionals to plan, design and supervise UCONN 2000 projects and other capital projects.

1. The Vice President for Operations has the responsibility for the administration of these policies. Authority for their implementation may be delegated to appropriate operating departments.

2. A selection board shall be appointed to select professional services for each project.

3. The selection board shall develop the rating criteria.

4. The contract shall be negotiated by the Vice President for Operations or by the Executive Director of Architectural and Engineering Services for Storrs, Law School and Regional Campuses or by the Director, Campus Planning, Design and Construction as designee for the Health Center.

5. The contract shall be approved by the Vice President for Operations and the Office of the Attorney General.

6. Changes in scope that affect the cost of the project must be approved by the Vice President for Operations.

EXHIBIT D

POLICIES: PRE-QUALIFICATION AND SELECTION OF CONTRACTORS

Section 10a-109n (c) (2) of the State Statutes authorizes the University to contract with construction firms for the building of UCONN 2000 projects and other capital projects.

1. The Vice President for Operations has the responsibility for the administration of these policies. Implementing authority may be delegated to appropriate operating departments.
2. Pre-qualification shall be required of all bidders for projects over $100,000.
3. Objective written criteria for pre-qualification of firms shall be developed.
4. A list of pre-qualified contractors shall be developed on a project basis. Firms will be evaluated on written criteria, including but not limited to: (1) the firm’s previous experience with similar projects, (2) the firm’s financial ability to complete the project, (3) the firm’s ability to post surety bonds, (4) evaluation of the firm’s integrity, (5) a determination that the firm has no conflict of interest in connection with the project, (6) technical ability, (7) managerial ability and (8) whether a contractor or one of their subcontractors on one of their previous projects has been in compliance with the provisions of Part III of Chapter 557 and Chapter 558 during the previous five calendar years.
5. Pre-qualified firms shall be invited to bid upon a specific contract. Contracts shall be awarded to the lowest responsible bidder who conforms to the University’s standards for the project.
6. If it is in the best interest of the University and the State of Connecticut, all bids may be rejected and the contracting process reopened.
7. The University may negotiate with any pre-qualified contractor that is currently under contract for incorporation work under exigent circumstance. This new work need not be related to the original contract. The new work shall be of a similar nature as the basic contract.
8. Exigent circumstances include work necessary to:
   1. Prevent loss of grant income or other revenue
   2. Produce additional revenue or grant income
   3. Ensure renovations are complete for new faculty and staff members
   4. Provide for safety and health of the University Community
   5. Comply with any Federal or State laws or regulations
   6. Ensure timely and orderly completion of UCONN 2000 or 21^st Century UConn Projects.
9. The Vice President for Operations shall approve use of the exigency provision for an individual job based upon a written recommendation from the Executive Director of Architectural and Engineering Services for Storrs, Law School and Regional Campuses, or by the Director, Campus Planning, Design and Construction as designee for the Health Center.
10. The negotiations may be conducted with any contractor or contractors currently performing one of the following types of contracts; lump sum, design build or construction manager at risk.
11. The Executive Director of Architectural and Engineering Services for Storrs, Law School and Regional Campuses or by the Director, Campus Planning, Design and Construction as designee for the Health Center will prepare a price negotiations memorandum detailing the basis for the award.
12. The Vice President for Operations shall also stipulate whether the added work shall be incorporated into the contract by change order or be consummated as a new contract.

DEBARMENT LIST

 

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