Trustees OK construction projects, appropriation request, retirement contribution plan change

July 9, 2010

WEST LAFAYETTE, Ind. - The Purdue University Board of Trustees on Friday (July 9) awarded contracts to build a new residence hall and renovate laboratories and approved construction of a new machine shop and renovations to a library and Elliott Hall of Music.

Trustees also approved a legislative operating budget request for the Animal Disease Diagnostic Laboratory and a new policy on employee defined contribution retirement funds.

Hagerman Inc. of Fort Wayne, Ind., submitted the low bid for the $20.6 million addition of a third and final tower to the First Street Towers residence hall complex. The tower will include 174 private resident rooms for upperclassmen with private bathrooms. Each cluster of 22 resident rooms includes a shared living room, kitchenette and laundry.

"First Street Towers is the culmination of University Residences' master plan that relied heavily on student input," said Barbara Frazee, interim associate vice president for housing and food services. "The towers' privacy, amenities and sense of community help retain students in what is the largest campus housing program in the nation where all students have the choice to live off campus."

Construction will begin this summer, with the building scheduled to open in fall 2012. Revenue bond proceeds will be used to pay for construction, and no university or state funds will be used for the project.

J.R. Kelly Co. Inc. of Lafayette, Ind., submitted the low bid for the $5.5 million Phase VI-B laboratory renovations to Lilly Hall's west wing. This phase will upgrade air supply and exhaust systems on the ground floor, replace all windows in the wing and renovate the passenger elevator.

Work will begin this September and be concluded by July 2011. Repair and rehabilitation bond proceeds will pay for construction.

The trustees' physical facilities committee on Thursday (July 8) approved plans to install a fire suppression sprinkler system in the Elliott Hall of Music. The $3.5 million project will be paid for from the university's repair and rehabilitation funds.

The committee also approved plans to construct a new building to house the Central Machine Shop and high-bay storage space for Agricultural and Biological Engineering. The committee approved awarding the design contract to Woolen, Molzan and Partners Inc. of Indianapolis. The current building was slated for demolition to accommodate road widening on the south side of campus. The machine shop tradesmen custom craft equipment that meets the specific needs of research projects across campus.

The $2.8 million project will be paid for by departmental funds, gift funds and Indiana Department of Transportation right-of-way acquisition funds.

The committee also approved plans to renovate the second floor of the Krannert Building to create a state-of-the-art business library designed to enhance collaboration, create study space and facilitate literacy instruction. The committee approved awarding the design contract to RQAW Corp. of Indianapolis. The project will be funded entirely by gifts.

Trustees approved a state legislative operating budget request for the Animal Disease Diagnostic Laboratory that calls for no increases in the facility's $3.45 million recurring annual budget over the 2011-2013 biennium. The ADDL at Purdue, which was established in 1945, operates under the aegis of the State Board of Animal Health. The lab's mission is to aid in the prevention, control and eradication of animal diseases; provide diagnostic services; and work with local, state, federal and international partners to improve animal health.

Board members also approved a policy setting guidelines and objectives for a new Retirement Plan Committee. The committee will select and monitor investment options offered through Purdue's defined contribution retirement plan and its voluntary retirement savings program. The new policy supports retirement plan enhancements that were developed after an 18-month review by a university-wide task force. Plan enhancements include lower administrative fees and a more transparent fee structure for employee retirement investments, the addition of a Roth retirement option, and a tiered investment structure to address a range of investment styles. Changes include switching recordkeeper responsibilities for the defined contribution plan from TIAA-CREF to Fidelity. The changes will occur on Jan. 1 and affect university-funded retirement contributions and the money individuals choose to invest themselves before taxes.

Writer: Jim Schenke, 765-494-6262, jschenke@purdue.edu

Sources:   Robert McMains, vice president for physical facilities, 765-494-8000, remcmains@purdue.edu

                    Barbara Frazee, 765-494-1000, bjfrazee@purdue.edu

                    James Almond, senior vice president for business services and assistant treasurer, 765-494-9706, jsalmond@purdue.edu