-
REPORT TO THE BOARD OF GOVERNORS
SUBJECT PHARMACEUTICAL SCIENCES CENTRE FOR DRUG RESEARCH &
DEVELOPMENT BUILDING
MEETING DATE DECEMBER 2, 2014
APPROVED FOR SUBMISSION
Forwarded to the Board of Governors on the Recommendation of the
President
Arvind Gupta, President and Vice-Chancellor
Presented By David H. Farrar, Provost & Vice-President
Academic Michael Coughtrie, Dean, Faculty of Pharmaceutical
Sciences Lisa Castle, Vice-President Human Resources
(Acting Vice-President Resources & Operations) John Hepburn,
Vice-President Research and International John Metras, Managing
Director, Infrastructure Development Al Poettcker, President &
CEO, UBC Properties Trust
Report Date November 12, 2014
DECISION REQUESTED For Information
EXECUTIVE SUMMARY
The Faculty of Pharmaceutical Sciences/Centre for Drug Research
& Development (CDRD) building, completed in September 2012, has
allowed the Faculty to expand its entry class by almost 50% while
doubling graduate training. These increases will significantly
address BC Ministry of Health projections of severe and worsening
provincial pharmacist shortages for the foreseeable future.
The partnership with the CDRD provides opportunities for
enhanced recruiting and retention of faculty, researchers and
students; greater success in translation of discoveries into
practice and products; and education and training to address the
critical need for highly qualified personnel in the drug
development business.
The distinctive 281,000 ft2 building, which was recognized with
a Governor General’s Award in Architecture and Lieutenant
Governor’s Medal Award in Architecture (merit), provides space for
both independent and collaborative study, research and social
interaction.
Funding for the building included a $86.4m contribution from the
Provincial government. Two separately funded components, the
Modified Barrier Facility and a Data Centre, are located in the
basement and provide critical support for UBC research activities.
The overall project was delivered to a LEED Gold standard under the
approved $155.23 million budget for a cost of $150.903 million.
Agenda Item #3.20
Template revised: July 1, 2014
-
Title/Subject of Report
Place and Promise COMMITMENT(s)
Research Excellence: The University creates and advances
knowledge and understanding, and improves the quality of life
through the discovery, dissemination, and application of research
within and across disciplines.
Place and Promise ACTION(s)
Foster UBC’s globally influential areas of research
excellence.
Develop new global centres of excellence at UBC with
international partners.
Enhance infrastructure to support leading edge research.
Description & Rationale
Winner of the Governor General’s Award in Architecture, the
Lieutenant Governor’s Medal Award in Architecture (merit), the new
281,000 SF Faculty of Pharmaceutical Sciences/Centre for Drug
Research and Development1 (CDRD) building has allowed the Faculty
to expand the entry class while doubling graduate training. These
increases will significantly address BC Ministry of Health
projections of severe and worsening provincial pharmacist shortages
for the foreseeable future. Two separately funded components, the
Modified Barrier Facility and a Data Centre, are located in the
basement and provide critical support for UBC research activities.
The building is located on Agronomy Road and Wesbrook Mall across
from the Life Sciences building. The design is unconventional and
its layout offers opportunities for both independent and
collaborative study, research and social interaction. This LEED
Gold building was delivered under the approved budget $155.23
million for a cost of $150.903 million.
The continuing need for pharmacists in British Columbia and
sustained growth in the fields of pharmaceutical sciences and drug
research has presented UBC with an important opportunity to
solidify its role as a leader in these fields and upgrade existing
obsolete facilities. The new building will allow the Faculty to
expand the current entry class of 152 places by 72 for a total of
224 entry positions (adding 72 first year seats increases the
overall student body by 288 additional students at steady state),
while doubling graduate training. A further round of expansion by
16 spaces could subsequently be undertaken.
The partnership with the CDRD provides opportunities for
significant operating cost savings, enhanced recruiting and
retention of faculty, researchers and students, greater success in
translation of discoveries into practice and products; and
education and training to address the critical need for highly
qualified personnel in the drug development business.
Project Management: UBC Properties Trust
Consultant: Hughes Condon Marler and Saucier + Perrotte in joint
venture
Contractor: LEDCOR
COSTS Capital &
Lifecycle Operating
This LEED Gold targeted building was delivered under the
approved budget $155.23 million for a cost of $150.903 million.
1 CDRD is a unique BC initiative to provide the resources,
infrastructure and expertise to address a “commercialization gap.”
CDRD advances promising drug compounds discovered in academia to a
stage where proof-of-principle data is available to make a
compelling case for subsequent commercial and clinical
development.
Page 2
-
Title/Subject of Report
FINANCIAL Funding Sources,
Impact on Debt Ratios
Funding Sources ($000’s)Pharmaceutical Sciences/CDRD Board 3
Board 4 Province of BC 86,400 86,400 CFI 4,963 3309 Internal Loans
- UBC loan funded by CDRD lease revenues 14,150 14,150 Faculty
Fundraising (potential bridging loan) 27,737 25,064
Total PharmSci/CDRD Funding 133,250 128,923Modified Barrier
Facility Discretionary Endowment 11,220 11,220 Faculty of Medicine
2,089 2,089 Faculty of Science 493 493 Other User Faculties 598 598
CFI (Imaging Lab) 1,080 1,080
Total MBF Funding 15,480 15,480Data Centre Discretionary
Endowment 6,500 6,500
Total Funding 155,230 150,903
SCHEDULE Implementation
Timeline
The project finished on schedule as predicted at Board 2 and 3.
Occupancy was phased from September through November 2012.
Schedule Board 3 Board 4Board of Governors (Board 1) Jun-09
Jun-09Board of Governors (Board 2) Apr-10 Apr-10Commence Site
Preparation, Servicing and Excavation May-10 May-10Board of
Governors (Board 3 -Partial: Foundation & Structure Jun-10
Jun-10Board of Governors (Board 3 ) Jun-10 Jun-10Board of Governors
(Board 3 - Fast Track) Jun-10 Jun-10Substantial Completion Aug-12
Aug-12Occupancy Sep-12 Sep-12Board of Governors (Board 4) Sep-13
Sep-14
BENEFITS Learning, Research,
Financial, Sustainability &
Reputational
Reputational:
This new building has won the following awards: • 2013 Best Lab
Award, Wallpaper Magazine • 2011 Canadian Architect Award of
Excellence. • 2013 Lieutenant Governor of British Columbia Award in
Architecture – Merit Level • 2014 Governor General’s Medal in
Architecture
Economic Development: UBC programs and research activity act as
catalysts for increased economic output. Provision of a new
facility for the Faculty of Pharmaceutical Sciences and the Centre
for Drug Research and Development (FOPS/CDRD) can only ensure an
increase of the continued contribution of UBC to the provincial and
national economy. UBC’s economic impact on the surrounding
community is over $12.5 billion. The provincial operating grant for
the year ending March 2013 was $900 million offering the people of
BC a good return on their investment. Alignment with Provincial
commitments to support economic and social development, establish
better linkages with industry and business, and improve
commercialization of research through:
Page 3
-
Title/Subject of Report
• Ongoing professional relationships with UBC investigators •
Employment opportunities for skilled professionals • Net inflow of
extra-provincial investment dollars • Creation of wealth in local
community • Multiplier effect on local job creation
Partnership between Pharmaceutical Sciences and the Centre for
Drug Research and Development provides:
• Operating cost savings, • Enhanced recruiting and retention of
faculty, researchers and students • Greater success in translation
of discoveries into practice and products • Education and training
to address the critical need for highly qualified
personnel in the drug development business Technology:
The inclusion of the new data centre has allowed ITS to
consolidate the 78 identified IT sites spread across the campus.
The data centre contributes to increased IT sustainability and
efficiency as it provides opportunities for heat capture, increased
power efficiency through a single purpose-designed site and the
capacity to house high performance computing research equipment.
Sustainability:
LEED Gold certification Is targeted (version 1.0)
Project showcases environmental, economic and social
sustainability through design features that minimize footprint and
resource consumption and provide a healthy and integrated learning
environment.
• High performance glazing • Central high efficiency heat
recovery chillers plant • High efficiency HVAC system (Displacement
Ventilation, radiant slab heating,
occupancy and CO2 sensors, lab makeup and transfer air) •
Occupancy and daylighting sensors • Central variable flow
manifolded laboratory exhaust system (unoccupied mode
turndown) • Heat recovery from lab fumehoods, data centres and
general exhaust • Solar Chimney and automatic operable windows
(common atrium) • Employing low flow plumbing fixtures • Heat
capture via double skin system on south elevation • Operable
windows • Abundant natural light reducing use of electrical
lighting;
Compliance with Wood First Act:
• Wood is used in a highly visible capacity in the UBC Faculty
of Pharmaceutical Sciences. Throughout the interior public spaces
of the building, wood is showcased as a wall and ceiling cladding,
as exposed wall guard protection and on guardrails, as trim.
Page 4
-
Title/Subject of Report
• The extent of wood used on the ceilings was beyond the 10%
allowable by the BC Building Code. An Alternate Solution, in
combination with independent third-party testing, was necessary to
permit the full proposed extent.
• All millwork outside of laboratories extensively uses wood as
its basis. In the framed partitions, all blocking associated with
millwork is wood.
• Hardscape elements in the landscape architectural design such
as seating and table surfaces feature wood.
• The presence of wood as a secondary construction material is
emphasized by the use of rough sawn formwork as a visible
expression on the cast-in-place concrete.
CONSULTATION Relevant Units,
Internal & External Constituencies
A meeting with all stakeholders was held 29 August 2014 to
review process and lessons learned:
General consensus: Building occupants and campus stakeholders
find this to be enjoyable, livable and sustainable space for
research, learning and exchange of ideas. Its architectural
expression gives the building a striking presence and it is
considered to be a signature building at UBC.
Planning process and design should be flexible to accommodate
evolving pedagogy and future capacity. This project was at least 11
years from planning to delivery. During that period the programme
changed significantly through the addition of a modified barrier
facility, a data center and a CFI related lab adding mechanical and
electrical requirements. Many faculty & staff joined the
Faculty after design or during construction and teaching needs
changed during construction.
Important to the success of the project to have the right
involvement of campus stakeholders at the right time. Like other
projects, consensus was that Building Operations and IT and AV
should be involved early or throughout planning and
construction.
Due to government requirements, this project went through a
Public Private Partnership feasibility assessment. Taken through
indicative design, the project capital cost for the base
Pharmaceutical Sciences/CDRD facility was estimated at $200M,
excluding Modified Barrier Facility and Data Centre. Costs of $1.5M
were incurred for P3 assessment and the indicative design process.
A value for money case was not made. UBCPT estimated (and
ultimately delivered on) a base capital cost of $133M including
risk management fees. The project had a hard deadline of August
2012 to accommodate a significant planned expansion in enrolment.
As there was insufficient time for regular process of design bid
build, a fast track process was employed. Fast tracking compresses
the project schedule by running the design and construction phases
simultaneously. This is not sequential and therefore riskier. With
careful governance and support from all stakeholders, this project
met the deadlines and came in under budget.
Deficiencies being resolved – problem elevators, thermal
comfort, interior door design.
Sustainability: As the building is 85% occupied and the data
centre is only 30% occupied, analysis is required as to why energy
use in building is greater than modelled.
Utilization: Enrolment Services noted that the building is
locked at 6pm daily and 6pm on Friday for the weekend. Any use
after that requires hiring of security personnel to monitor use.
This is prohibitive for classroom use and it is felt that because
of this the building is under-utilized. To be resolved through
operations and policy.
Page 5
-
Title/Subject of Report
UBCPT COMMENTS Complete for all
reports that include a property component
Date of Review: Signed Off by:
Previous Report Date September 27, 2011
Decision Fast Track Update Report
Action / Follow Up The Board 3 “Fast Track” approval for the
Pharmaceutical Sciences / CDRD project, received in June 2010,
requires that information update reports on the progress of the
fast track process be brought to the Board until 80% of
construction tenders are complete. That milestone was achieved in
July 2011 and now 97% of tenders are complete. This will therefore
be the last Fast Track Update Report, covering the period up to
August 31, 2011.
The current $94.6 million forecast for construction completion
cost, which factors in previous value engineering savings and
allows for future unforeseen scope adjustments and costs, can be
managed within the original $93.0 million construction budget with
the use of $1.6 million of project contingency. A total of $3.45
million of contingency is still in place for use, if required,
during the balance of construction.
Previous Report Date June 8, 2011
Decision Fast Track Update Report
Action / Follow Up While total construction tenders to date (now
54% complete) have been under budget there have been a number of
post tender scope adjustments not previously budgeted. The added
cost for these adjustments, along with recent tender results and
the scope left to tender which is highly dependent on architectural
details, have led the construction manager to forecast a budget
overage of up to $4.0M. The project team has developed a list of
value engineering items with a total possible savings of $5.4M. It
is expected that the required $4.0M in savings can be realized from
this list. The full project contingency ($5.49M) is still in place
for use as required during the balance of construction.
Site Work
The level 5 slab is complete. The level 6 slab is 50% complete
and the roof slab is 15% complete. Overall the construction is 18%
complete. Curtain wall installation commences on the east elevation
on May 12, 2011.
Tenders
Twenty-seven construction tender packages have been completed to
date. Two packages were tendered in April. The total value of
awarded work is $46.3 million or 54% of overall construction
budget.
Page 6
-
Title/Subject of Report
Previous Report Date April 5, 2011
Decision Fast Track Update Report
Action / Follow Up The fast track process is proceeding well.
Total construction tenders to date are under budget, and while
tendering is behind original schedule, this is not expected to
impact the final budget amount or the final completion date of the
project. Site Work The ground floor and level 2 slabs are complete.
The level 3 slab is 50% complete, the level 4 slab is 25% complete
and the level 5 slab is 10% complete. Overall the construction is
12% complete. Tenders Eighteen construction tender packages have
been completed to date. The total value of awarded work is $29.8
million or 35% of overall construction budget. Total construction
tenders to date are under budget. The Atrium Skylight tender is the
only tender to so far have come in over budget. All other tenders
have come in at or under budget.
Previous Report Date February 7, 2011
Decision Fast Track Update Report
Action / Follow Up Site Work Excavation, footings and
underground plumbing work are complete. Columns and walls in the
basement are 90% complete. The slab on grade is 80% complete.
Ground floor slab is 40% complete and level 2 formwork is underway.
Overall the construction is 6.5% complete. Tenders Nine
construction tender packages have been completed to date. A summary
of the tender results is shown in the table below. The total value
of awarded work is $22.1 million or 24% of overall construction
budget. All tenders have so far come in at or under budget.
Previous Report Date November 23, 2010
Decision Fast Track Update Report
Action / Follow Up The fast track is proceeding well. All
construction tenders to date have come in at or under budget and
while tendering is behind original schedule this is not expected to
impact the final budget amount or the final completion date of the
project. Site Work Excavation is 99% complete. Footings are 85%
complete and columns and walls in the basement are 45% complete.
Underground plumbing work is 25% complete. The slab on grade is 25%
complete. Ground floor formwork will commence the week of November
1st.
Page 7
-
Title/Subject of Report
Tenders Eight construction tender packages have been completed
to date. The total value of awarded work is $20.82 million or 22.4%
of overall construction budget. All tenders have so far come in at
or under budget. The next major component to be tendered is
Structural Steel which has a value of $2.2 million. This will be
followed by Mechanical and Electrical packages with a total value
of $38.0 million.
Previous Report Date September 16, 2010
Decision Fast Track Update Report
Action / Follow Up The Board 3 “Fast Track” approval for the
Pharmaceutical Sciences / CDRD project, received in June 2010,
requires that information update reports on the progress of the
fast track process be brought to the September 2010 and November
2010 Board meetings. This Fast Track Update Report covered the
period to August 20, 2010. Monthly progress reports are also being
provided to the Board Chair and Chairs of the Finance and Property
& Planning Committees. Reporting will continue until 85% of
construction tenders are complete.
Fast tracking compresses project schedule by running design and
construction phases simultaneously. A fast-track process is
required in this case to meet the August 2012 completion deadline
necessary to allow the Faculty of Pharmaceutical Sciences to
accommodate a significant planned expansion in enrolment.
The fast track process for the project is proceeding as planned.
All construction tenders completed to date have been within budget.
Schedule has been caught up after an initial delay with the start
of excavation as we awaited final approval of Bill 20 from the
Provincial government.
Site Work Before excavation could commence, a land use
designation change included in Bill 20 required Provincial
approval. Excavation commenced June 25, 2010 and to make up for
lost time, the contractor worked 10 hour days and on Saturdays. The
premium to expedite the work was $26,000. The result is that the
excavation is back on schedule and the east end of the excavation
is now ready for footing work.
Tenders Four construction tender packages were completed and
awarded to date. The total value of awarded work is $18.92 million
or 20% of overall construction budget. All tenders have so far come
in at or under budget.
Previous Report Date June 9, 2010
Decision It is recommended that Board 3 approval be granted for
this project with authorization to “fast-track” the project and
enter into trade contracts as required to maintain the project
schedule.
Approval: Capital Budget $155,230,000 Operating Budget $
2,063,000 Schedule Award of formwork, rebar, below grade M&E
Funding Release $150,330,000
Page 8
-
Title/Subject of Report
Information: Expenses to Date: $ 2,709,000 Funding Releases to
Date: $ 4,900,000
Approval: An internal loan of up to $62.787 million to be repaid
over a period of up to 30 years at a projected rate of 5.75% and
debt service will be funded from a variety of sources identified in
the Financing Summary section.
Action / Follow Up Board 3 approval is requested on a fast track
basis. Approval requested to enter into trade contracts as required
to maintain the project schedule.
• Tenders will be reviewed and compared with a line item base
budget by the Managing Director, Infrastructure Development prior
to award.
• If tenders exceed budget, the Managing Director,
Infrastructure Development may require additional value engineering
or other such remedies to mitigate risk to UBC.
• A monthly project report is to be sent to the Chairs of
Finance and Property and Planning and Executives by the Managing
Director, Infrastructure Development, summarizing the project
progress until 80% of construction costs have been tendered. This
is anticipated for November 2010.
• Information update reports will be brought to the September
and November Board meetings (representing 65% and 80% of
construction costs tendered).
• Funding releases to be controlled by Managing Director,
Infrastructure Development.
Previous Report Date April 8, 2010
Decision Board 2 Approval and Approval for Site Works and
Excavation
Approval: Revised Capital Budget Pharmaceutical Sciences/ CDRD
$133,250,000 Modified Barrier Facility $ 15,450,000 Data Centre $
6,500,000 Total Capital Budget $155,230,000 Revised Operating
Budget $ 2,063,000 Revised Schedule Authorization to Issue
Development Permit Proceed to Working Drawings & Tender Funding
Release $ 2,000,000
Information: Expenses to Date: $ 2,164,587 Funding Releases to
Date: $ 2,900,000
Action / Follow Up Board 2 approval to proceed with working
drawings and tender and to commence site preparation and servicing
work as well as bulk excavation for the foundation. A fast track
procurement process is required to meet the August 2012 completion
deadline. Program area 13,132 NASM, down from 15,385 NASM at
previous board.
Page 9
-
Title/Subject of Report
Previous Report Date June 3, 2009
Decision Revised Board 1 Approval
Approval: Project in Principle Location Consultant Selection
Preliminary Program Preliminary Capital Budget $153,400,000
Preliminary Operating Budget $ 1,791,299 Preliminary Schedule
Proceed to Schematic Design Funding Release $ 1,145,000
Information: Expenses to Date $ 2,000,000 Funding Releases to
Date $ 1,755,000
*Preliminary Capital Budget Includes $20,000,000 for Mouse
Screening and Innovation Centre to be located in basement level of
the new building.
Action / Follow Up Requested that Board accept amended
Consultant Selection Policy 126 to delegate approval of
architectural shortlist to UBC Executive. As part of a P3
assessment process, an indicative design was completed. UBCPT to
publish this document to make best use of fees expended and reduce
schedule for future design work. Once provincial approval is
received to post Expressions of Interest, UBCPT will proceed with
proposal call for Architectural Consultants and full design and
engineering team.
Previous Report Date November 27, 2008
Decision Approve: Funding release (Conditional) $92,895,000
Ask to Ministry of Advanced Education and Labor Market
Development $96,500,000
A variance to Policy 126 to permit an architect to be selected
by the winning consortium in accordance with P3 process.
Internal loan of up to $56.05 million to be repaid over 30
years
Additional loan of up to $25 million to fund building costs in
advance of fundraising. The term of this to be no more than 10
years and the loan principal to be reduced as fundraising pledges
are fulfilled. Pham Sci responsible for interest costs.
Establishment of a Steering Committee consisting of:
o UBC VPFRO; o UBC Vancouver Provost & Vice President
Academic; and o The President of Partnerships BC
Authorization of Steering Committee to take all such action and
approve all such agreements and documents as the Steering Committee
considers necessary or desirable to proceed with and fully
implement the Project substantially as described in the Request for
Decision, including agreements providing for expenditures by the
University.
Page 10
-
Title/Subject of Report
Authorization of any officer or officers of the university
designated by the Steering Committee to execute and deliver, for
and on behalf of the University, any agreement or other document
approved by the Steering Committee.
Action / Follow Up Changes since previous board submission:
Faculty reduced space requirements by 3000 GSM
Net present value cost at Jan 2009 is $187.4 million including
life cycle maintenance costs and equipment.
Previous Report Date September 25, 2008
Decision Board 1 Approval of the project in principle: Funding
Release of $1.47M
Action / Follow Up Partnerships BC has recommended the project
be implemented as a Private Public Partnership (“P3”). To keep on
schedule and enable initial July 2011 occupancy, Request for
Qualifications and Request for Proposal must be created. Provincial
funding cannot be sought until the outcome of the P3 review by
Partnerships BC.
Changes since previous board submission:
2000 GSM graduate student space added ($15M added cost)
Mouse Screening & Innovation Centre (MoSAIC) to address
Canada Council on Animal Care requirements. ($20M added cost)
Previous Report Date November 28, 2007
Decision Approval:
Funding Release of $150,000 required to undertake an initial
assessment of P3 feasibility. Project has been informally discussed
with Partnerships BC and is likely to be implemented as a P3.
Action / Follow Up The BC Capital Standard introduced in June
2006 formalized into provincial policy as part of the Ministry of
Finance’s Capital Asset Management Framework. The policy requires
that projects with public funding over $20M must be evaluated with
a P3 as the base case unless a compelling value for money
alternative implementation is approved by Partnerships BC and
Treasury Board.
Previous Report Date December 8, 2005
Decision Faculty of Pharmaceutical Sciences New Building.
Board 1 Approval: It is recommended that the Board approve the
project in principle and its location.
Funding release $135,000
Action / Follow Up Site approved: corner of Wesbrook and
Agronomy, adjacent to Thunderbird Bird Parkade and across from Life
Sciences Centre. Project cost estimated at $90.1M. Project to move
into schematic design.
Attachment: 1) Photos of Pharmaceutical Sciences/CDRD
Building
Page 11
-
Title/Subject of Report
Attachment 1 – Photos of Pharmaceutical Sciences/CDRD
Building
Page 12