RM00A
Morgan State University
New Library (Baltimore City)
GO Bonds $48,968,000 Recommendation: Approve with additional funds
for project management
services.
Bill Text: Provide funds for additional design and for the construction of a new library.
Project Description: Construct a new 212,997 gross square foot (GSF) library on the site of the
Murphy Fine Arts Building. The university currently has a 25,000 net assignable square foot (NASF)
deficit in library space. Because it is not cost-effective or practical to renovate and expand Soper
Library, the fiscal 2004 budget includes $48.9 million in general obligation bond funds for planning
and construction of a new library building.
Comments: The university requested planning funds of $3 million for fiscal 2003, which was
deferred by the legislature. During the 2002 session, the General Assembly authorized funds totaling
$52 million for fiscal 2004 for the detailed design and construction of the project. The most recent
estimate by the Department of General Services indicates that the remaining amount needed for
design and construction is $48.9 million, a difference of $3 million. Part of the difference in the
revised costs is attributable to the cost estimate prepared by the A/E. It also reflects the reduction due
to the removal of chiller equipment from the library project. The chiller equipment is to be funded
separately as part of the campuswide utility upgrade project.
Because planning funds were deferred in fiscal 2003, the State agreed to reimburse Morgan State
University (MSU) for money it spent to keep the project on schedule during fiscal 2003. MSU
expects the fiscal 2002 planning money to be fully expended by March 2003. The university will
spend approximately $600,000 between March and June 1, 2003, the date fiscal 2004 funds will
become available. Funds to reimburse the university for those additional costs are included in the
fiscal 2004 funds. The university expects to complete planning by September 2003 and will
commence construction at that time.
For further information contact: Jessica E. Jordan Phone: (410) 946-5530
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RM00A – Morgan State University
Project Data
($ in Millions)
Prior 2004 2005 2006 2007 2008
Description
Authorization Request Estimate Estimate Estimate Estimate
Planning $1.962 $2.526 $0.000 $0.000 $0.000 $0.000
Construction 0.000 46.442 0.000 0.000 0.000 0.000
Equipment 0.000 0.000 5.200 0.000 0.000 0.000
Total $1.962 $48.968 $5.200 $0.000 $0.000 $0.000
Total Project Cost: $56,158,563 Cost Per Square Foot – Base: $151
With Escalation & Contingencies: $178
Gross Square Footage: 212,997 Net Usable Square Footage: 137,916
Approved Program Plan: Yes Estimated Completion Date: September 2005
Issues
1. Should Morgan State University Hire an Outside Construction Management
Firm?
The new library will be MSU’s largest project in over 10 years, both in cost and size. While MSU
has successfully overseen the construction of several renovation and new construction projects, the
magnitude of the library combined with the Banneker Hall renovation in future years will be one of
the heaviest construction loads of any of the higher education institutions in Maryland. The expertise
of a construction management firm would provide MSU with the management necessary to complete
projects successfully – both on time and within budget.
Institutions within the University System of Maryland (USM) regularly use construction
management firms to oversee large projects, and by doing so, have been able to achieve a high degree
of success with those projects. MSU's new library will be a landmark project for the university and
for Maryland's higher education institutions; since the project has already been deferred once by the
General Assembly, it would be to MSU's advantage to seek the expertise of an outside management
firm so that the library can be brought online in the easiest and quickest way possible.
In seven of the past 10 years MSU has received supplemental funding for either planning or
construction costs for various projects. These supplemental funds were unforeseen at the time the
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RM00A – Morgan State University
spending authority was appropriated but cannot be denied by the legislature once a project is
underway. The supplemental funds represent 7.3% of all of the funding MSU has received since
fiscal 1993 – over $10 million total. With a construction management firm, many of these additional
costs could be accounted for in the planning process or avoided altogether. The typical cost of a
construction management firm, as estimated by the Department of General Services and USM, is 1 to
1.5% for preconstruction services such as design and planning, and 2.5 to 3.5% for construction.
Using those estimates for the management of the library, construction management would cost
between $1.25 and $2.5 million. The original total cost estimate for the library was $59 million, but
the estimate has been revised downward to $56.2 million due to the new A/E cost estimate and the
removal of the chiller replacement from the project. Therefore, the costs of construction management
could be included in this project without increasing the original cost estimate.
In fiscal 2004, including ongoing projects such as utility upgrades and campuswide site
improvements, MSU will be overseeing construction totaling $56.4 million. Between fiscal 2005 and
2008 MSU will manage another $65 million in capital funds. For the new library, the proposed
Banneker Hall renovation, and future projects with a total cost exceeding $25 million, the
Department of Legislative Services recommends MSU take advantage of the professionalism
and expertise of a construction management firm to ensure the timeliness and cost effectiveness
of the projects.
Recommended Actions
Approve with additional funds for project management services estimated at $2.5 million.
Executive’s Operating Budget Impact Statement
($ in Millions)
FY 2004 FY 2005 FY 2006 FY 2007 FY 2008
Estimated Operating Cost $0.000 $0.532 $1.908 $2.367 $2.367
Estimated Staffing 0 0 23.75 23.75 23.75
The personnel increases are for a facilities manager and support workers, as well as positions for
housekeeping, maintenance, and security. The operating costs include utilities, supplies, and wages
and will be fully annualized in fiscal 2007.
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RM00A – Morgan State University
Appendix 1
Capital Project Cost Estimate Worksheet
Department: Morgan State University
Project Number: RM00A
Project Title: New Library
Analyst: Jessica E. Jordan
Structure
New Construction: 212,997 Sq. Ft. X $151.00 Sq. Ft. = 32,162,547
New Construction: 0 Sq. Ft. X $0.00 Sq. Ft. = 0
Renovation: 0 Sq. Ft. X $0.00 Sq. Ft. = 0
Renovation: 0 Sq. Ft. X $0.00 Sq. Ft. = 0
Built-in Equipment 0
Demolition 0
Information Technology 212,997 GSF X $7.00 GSF = 1,490,979
Telecommunications 0
Miscellaneous-Other Slab underdrain and porous drainage blanket 250,000
Miscellaneous-Other Built-in equipment 1,246,032
Miscellaneous-Other Analyst to fill in description 0
SUBTOTAL 35,149,558
Regional Factor: 100.0% 0
SUBTOTAL 35,149,558
Escalation to midpoint: 2.75 Yrs. X 4.4% = 12.00% 4,217,947
TOTAL COST OF STRUCTURE (Bid Cost) 39,367,505
Site Work and Utilities
Site Improvements: 1,757,478 + regional factor + mid-point escalation 1,968,375
Utilities: 1,757,478 + regional factor + mid-point escalation 1,968,375
PROJECT SUBTOTAL (Bid Cost) 43,304,256
Fees and Miscellaneous Costs
Green Building Premium 0.0% 0
Total Construction Contingency 5.0% 2,164,568
Inspection Cost: 2.2% 952,410
Miscellaneous: V-E, geotech, surveys, etc. 375,649
Miscellaneous: CPM/Schedule 34,000
Miscellaneous: IT equipment 2,825,000
Miscellaneous: Movable equipment 2,390,000
A/E Fee through construction phase @ 8.9% 4,112,680
TOTAL COST OF PROJECT 56,158,563
Base cost per new square foot $151
Adjusted cost per new square foot (incl. escalation, contingencies & Green Bldg.) $178
Base cost per renovated square foot $0
Adjusted cost per renovated square foot (incl. escalation, conting. & Green Bldg.) $0
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