F1B

Office of the President

TO MEMBERS OF THE FINANCE AND CAPITAL STRATEGIES COMMITTEE:

ACTION ITEM − CONSENT

For Meeting of July 17, 2019

APPROVAL OF PRELIMINARY PLANS FUNDING, FUTURE COLLEGE LIVING AND LEARNING NEIGHBORHOOD, SAN DIEGO CAMPUS

EXECUTIVE SUMMARY

The San Diego campus proposes the Future College Living and Learning Neighborhood (FCLLN) project to locate new undergraduate student housing together with a new college, thereby increasing beds while also decompressing the existing colleges, which are over capacity. The proposed location is an approximately 10.9-acre site that would provide approximately 2,000 new beds in multiple mid-rise and high-rise configurations for undergraduate housing. With a buildable site area of approximately 5.8 acres, the project design would target 345 beds per acre, and a floor area ratio (FAR) between 3.5 and 4.0. The remainder of the site would include public realm improvements such as a large recreation/wellness area along the northern border; realignment of a portion of Scholars Drive South (campus loop road); and an extension of Ridge Walk (a primary north-south pedestrian spine) to the southern campus boundary; and required building setbacks. The site is bound by North Torrey Pines Road to the west and south, Revelle College to the north, and the Theatre District to the southeast. Currently, the land provides surface parking (840 spaces) in two lots that are bisected by Scholars Drive.

In addition to housing, the program would include residential life and administrative space for a new college, general assignment classrooms, conference space, housing support space, and retail to include dining and a market for campus and off-campus community use. This project would include approximately 1,200 (360 net new) subterranean parking spaces to replace the highly utilized displaced spaces and to provide new spaces to meet future demands in this part of the campus. The proposed parking aligns with the 2018 Long Range Development Plan (LRDP) goal of providing parking facilities at the campus periphery, which allows for a more pedestrian- focused campus core.

Creation of affordable on-campus housing in a collaborative, interdisciplinary living and learning environment has been identified as a crucial step toward achieving goals set forth in UC San Diego’s Strategic Plan completed in 2014. UC San Diego is expected to become one of the largest residential campuses in North America by 2023. With student enrollment up 30 percent over the last five years and anticipated to reach 40,000+ students by 2028, the campus anticipates FINANCE AND CAPITAL STRATEGIES -2- F1B COMMITTEE July 17, 2019

that between 2016 and 2028, the student resident population will nearly double from 14,000 to 26,000 beds.

This project was presented to the Regents for discussion at their May 2019 meeting. The Regents are being asked to approve preliminary plans funding of $30 million to be funded with campus funds. The preliminary plans funding would support selection of a pre-qualified design-build team via the competitive process, scope refinement, preliminary design, and project cost estimating. Approval of full budget, associated external financing, and design following action pursuant to the California Environmental Quality Act would be requested in spring/summer 2020.

RECOMMENDATION

The President of the University recommends that the Finance and Capital Strategies Committee recommend to the Regents that the 2018-19 Budget for Capital Improvements and the Capital Improvement Program be amended to include the following project:

San Diego: Future College Living and Learning Neighborhood – preliminary plans – $30 million to be funded with campus funds.

BACKGROUND

College Infrastructure and Affordable Housing Demand

UC San Diego views the college system as an integral and key component to its success as a top- tier research university. The college system, an integral component of its undergraduate student experience, was inaugurated with the opening of Revelle College in 1964. In the following years, five more colleges – Muir, Marshall, Warren, Roosevelt, and Sixth – were established, each with its own residential facilities, distinctive educational philosophy, general education/graduation requirements, and student support services. The college concept provides smaller human-scaled neighborhoods with student housing in each, in the context of a large university campus that can be overwhelming for first- and second-year students.

In coordination with the existing six colleges, the campus has determined that the ideal size of each college is approximately 4,000 students. However, with rapid enrollment growth, all six colleges are over capacity (each with enrollment between 4,900 and 5,100), posing a significant challenge to the colleges’ ability to provide a high-quality academic and social support environment for students (including staff and resources), especially for incoming first-year students. Without additional colleges, each college’s enrollment would grow to over 5,300, which would negatively affect the campus’s ability to serve students because the campus would only be able to offer one year of housing. Indeed, at approximately 5,000 undergraduates per college, resources are severely strained and this affects the student experience. Enrollment pressures provide strong motivation for the addition of two more colleges.

FINANCE AND CAPITAL STRATEGIES -3- F1B COMMITTEE July 17, 2019

The 2018 Long Range Development Plan (LRDP), approved by the Regents in November 2018, anticipates the development of up to two more residential colleges (for a total of eight), to accommodate recent accelerated enrollment growth and future projected growth, with the intent of maintaining an enrollment of approximately 4,000 students per college. While academic planning for these future colleges is underway, planning for the facilities to accommodate these colleges is necessary at this time to ensure housing and academic support facilities are in place to meet college opening timelines.

As a result of rapid student enrollment growth and unprecedented housing demand, creative measures have been necessary to provide additional beds for students. For the 2018-19 academic year, the campus provided housing for 11,654 undergraduate students in facilities that were designed to house 9,366 (2,288 beds over design capacity, primarily added via converting double rooms to triples wherever possible). Even with housing students in excess of design capacity, the campus is unable to meet demand, nor can it achieve the 65 percent housing goal set forth in the 2018 LRDP. Table 1 not only demonstrates the number of students housed on campus (per college) relative to design capacity and the 2018 LRDP Housing Goal, but it also demonstrates that all six colleges are over-enrolled in terms of targeting enrollment of approximately 4,000 students per college.

Table 1: Undergraduate (UG) Students Housed per College, Fall 2018

UG UG Percent of Design Beds added Students Students UG Students Capacity in Excess of

Enrolled1 Housed Housed2 Design (Fall 2018) Capacity Revelle College 5,106 1,809 35% 1,402 407 Muir College 5,043 1,467 29% 1,227 240 Warren College 4,905 1,735 35% 1,300 435 Roosevelt College 5,074 1,531 30% 1,232 299 Marshall College 5,022 1,232 25% 1,056 176 5,135 1,550 30% 1,298 252 Transfer Housing 2,330 1,851 479 Total 30,285 11,654 39% 9,366 2,288 Notes: 1 Data in this column represents total number of students enrolled in each college as of the Fall 2018 Quarter, 3rd week. Note that all six colleges are currently over-enrolled; goal is to target an enrollment of approximately 4,000 students per college. 2 2018 Long Range Development Plan includes a goal to house 65% of eligible students in campus housing.

Need for Replacement Parking

Between 2001 and 2016, the total number of daily commuters entering campus (students, faculty, staff, and visitors) grew from just under 40,000 to almost 55,000 people. While UC San Diego has made tremendous progress toward reducing the number of single-occupancy vehicles entering campus (a 23 percent reduction since 2001), and despite anticipation of reduced demand FINANCE AND CAPITAL STRATEGIES -4- F1B COMMITTEE July 17, 2019

(ten percent) upon completion of the Light Rail Transit (LRT), relevant data indicates that approximately 43 percent of students, faculty, and staff will continue to drive to campus in single-occupancy vehicles.

Over the past decade, the ongoing physical development of the campus has had significant impact on the demand for and availability of parking, especially in the central areas. Most of the new facilities were constructed on surface parking lots that were not replaced, significantly reducing the parking inventory over time.

PROJECT DRIVERS

Three key drivers for this project are: 1. Demand for Affordable Student Housing 2. Maintain Success of Undergraduate College System 3. Need for Academic Space

Demand for Affordable Student Housing

Demand for on-campus affordable student housing is very high at UC San Diego. The shortage of reasonably priced rentals in the surrounding private market community strongly affects the demand for on-campus housing. UC San Diego is located in and adjacent to University Town Center (UTC), areas where housing costs are extremely high. The average rent in San Diego County hit a record $1,960 per month as of October 2018, which represents a six percent increase in one year. Rent has increased 20 percent since March 2015, when the average monthly rent was $1,563, and the apartment vacancy rate off campus continues to be slightly over four percent. 1

On-campus monthly rental rates have been at least 20 percent lower than market rate in the UTC area and the campus has committed to maintaining lower rates than the surrounding private market for all new proposed on-campus housing. Table 2 provides estimated rental rates for the 2023-24 academic year for Future College undergraduate student housing compared to the surrounding private market rental rates in UTC, and illustrates that the proposed project would be at least 20 percent below private market.

1 Average rent, increases and vacancy rate data for San Diego County as published in the San Diego Union Tribune on October 9, 2018. FINANCE AND CAPITAL STRATEGIES -5- F1B COMMITTEE July 17, 2019

Table 2: Rental Rate Comparison

Estimated Rate Per % Below Location Type Student Per Month in Off- 2023-24 Campus Double (2-bedroom) Future College $1,250 25% Apartment Off-Campus* 2-bedroom, 1-bath $1,560

*Off-campus rent and amenities based on 2018 San Diego Apartment Association market rate for 2- bedroom, 1-bath unit, escalated by 5 percent annually for rent and 2 percent for amenities.

Off-campus leases require one-time, upfront fees for rental applications, rental deposits, and utility deposits, which would increase the total annual cost for the off-campus rate listed above. Students who live off-campus may also choose to own a vehicle and purchase a parking permit, which adds cost to their annual expenses and, for the University, places further demand on the campus’s limited parking supply.

Affordable on-campus housing aids in recruitment and retention of students. It also expands opportunities to fully integrate new students into the academic and social life of the campus. Increasing numbers of continuing students prefer to live on campus as well. Part of the attraction of University-owned housing is the proximity to on-campus amenities, including academic, research, clinical, and recreation facilities. By living on campus, students are able to get around campus without a car – by foot, bicycle, and campus shuttles – which results in decreased traffic congestion around campus and in the adjacent community, helping the campus meet its sustainability goals. Affordable off-campus housing options in the San Diego region are few, and those that are available are a significant distance from campus.

Maintain Success of Undergraduate College System

Colleges are distinct residential neighborhoods with their own residence facilities, staff, and traditions. Space within each college includes undergraduate residence halls and apartments, residential life space, as well as offices for the provost and deans, academic advising, and other academic support services.

With a central concern for students’ academic development, the provost of each college manages programs directly supporting students within the college, including academic advising and student academic support services. With the ongoing increase in undergraduate students, the campus has determined that the existing six colleges are over capacity, posing a significant challenge to the colleges’ ability to provide a high-quality academic and social support environment for students, especially for incoming first-year students. Operational experience related to the realities of accomplishing administrative functions, academic advising, student FINANCE AND CAPITAL STRATEGIES -6- F1B COMMITTEE July 17, 2019

affairs advising, student programming, housing, and dining within a college’s physical footprint all point to 4,000 as a goal for the number of students per college2.

The campus is committed to maintaining and strengthening the college system, and is continuing its plan to accommodate undergraduate student enrollment growth while keeping each college at a reasonable size to preserve all of the benefits the college system provides. As of fall term 2018, enrollment was between 4,900 and 5,100 students per college. The 2018 LRDP anticipated the development of up to two more residential colleges, with the intent of maintaining an enrollment of approximately 4,000 students per college. With continued enrollment growth expected, academic planning is underway to add a Seventh and an Eighth College to maintain the small college environment.

Upon completion (anticipated in fall 2020) the North Torrey Pines Living and Learning neighborhood will provide a permanent home for Sixth College. The campus is currently in the process of studying the conversion of existing transfer student housing (The Village, North Campus) to provide a home for , with the intention of opening that College in fall 2020. Transfer students would be offered housing in the existing Pepper Canyon East housing. With this planning underway, it is anticipated that the new space within the proposed FCLLN project would most likely become the permanent home for Eighth College.

Need for Additional Academic Space

Over the past decade, there has been an increase in undergraduate and graduate enrollment of approximately 38 percent at UC San Diego. Due to this sustained enrollment growth there is a shortage of academic and classroom space, which directly corresponds to the projected growth in weekly student contact hours used to calculate classroom utilization. The total overall campus classroom utilization rate is over 114 percent of standard3. As an example, the Theater at and the music rehearsal space at Mandeville Center were converted from their original intended use to provide additional classroom space. There are also temporary trailers at Marshall College that have provided classroom space. Construction of other new campus buildings, such as NTPLLN and Franklin Antonio Hall, will include lecture halls and classrooms to improve the availability of classroom space.

Even with the addition of newly constructed classrooms, given increased enrollment, the predicted utilization in 2023 will remain above 102 percent. The 2018 LRDP estimates the student population to reach 42,400 by 2035. In the short term, new general assignment classroom space at FCLLN would provide space needed to take existing classroom space out of use temporarily to complete deferred maintenance; return the theater and music rehearsal spaces described above to their original intended use; remove temporary trailers; and provide academic

2 Proposal for a Seventh Undergraduate College at UC San Diego: https://senate.ucsd.edu/current-affairs/issues- under-review/7th-college-full-proposal/ 3 A classroom with 100-percent utilization implies that each seat is occupied for 35 hours a week. Source of data: Office of Institutional Research. FINANCE AND CAPITAL STRATEGIES -7- F1B COMMITTEE July 17, 2019

bridging between the Marine Sciences campus and the general campus. In the longer term, new classroom space at FCLLN is necessary to serve projected enrollment growth through 2035-36.

UC San Diego is currently evaluating the need for a large lecture hall of 500 seats at this area of the west campus to provide space for academic courses, student orientation sessions, weekend events such as Triton Day, and large events occurring in the evening. This space would support the Future College events, and could be used by the adjacent Revelle College, Scripps Institution of Oceanography, and the Theatre District.

The FCLLN project would include between four and six flexible 50-seat classrooms for instruction in smaller groups. The addition of classroom space to the southwestern edge of the main campus would provide an educational, geographic, and symbolic connection to programs located down the hill at the Scripps Institution of Oceanography (Scripps). The location of Scripps is challenging to access for most undergraduate students due to limited travel time between classes, distance, and significant topography change, and a limited number of shuttle seats available to transport students between the main campus and Scripps. This geographically strategic location for classroom space would provide improved access to Scripps faculty and lecturers and to undergraduate students who are interested in taking marine science courses. Providing an improved connection between the main campus and Scripps creates new educational opportunities for students. In addition to new classrooms, the FCLLN would provide approximately eight hoteling4 offices for faculty, lecturers, and teaching assistants to conduct office hours.

PROJECT DESCRIPTION

The proposed FCLLN location is a 10.9-acre site, with 5.8 acres of buildable area, bound by North Torrey Pines Road to the west and south, Revelle College to the north, and the Theatre District to the southeast. Currently on the site there are 840 parking spaces spread over two surface lots bisected by Scholars Drive South. The proposed project would include extensive public realm improvements including a partial realignment of Scholars Drive South (campus loop road), a large recreation area along the northern edge (at the southern border of Revelle College), and an extension of Ridge Walk through the project and down to the southern campus boundary. This portion of the La Jolla campus is adjacent to an established residential community and the campus will need to take a thoughtful approach to density and design along this southwestern boundary, as well as to communicate about project impacts with its adjacent neighbors.

Undergraduate College Housing

The proposed approximately 2,000 new undergraduate beds would be a mix of unit types. In order to balance the housing offered in each college, these 2,000 beds would be allocated for

4 Hoteling is a method of office management in which workers dynamically schedule their use of workspaces such as desks, cubicles, and offices. It is an alternative approach to the more traditional method of permanently assigned seating. Hoteling is reservation-based unassigned seating; employees reserve a workspace before they come to work in an office. FINANCE AND CAPITAL STRATEGIES -8- F1B COMMITTEE July 17, 2019

both the Future College (1,700 beds) as well as housing for Revelle College (300 beds). This would allow Revelle College to decompress its existing housing bed densities, which are currently above design capacity. To support and encourage the undergraduate living and learning environment, the project would also include resident support space, retail dining, and small informal work spaces that could be reserved for study groups. Meal plan dining for the Future College would be served by the existing 64 Degrees (approved in 2013 as Revelle Plaza Café) located just north of the site in Revelle College. 64 Degrees has capacity to serve the population of an additional college.

One of the project goals is to create a porous ground level hub where students, faculty, and staff would cross paths and interact. Residential and quieter contemplative spaces would be above the ground floor. Locating academic, housing, and student activity space together would allow buildings to share infrastructure while also activating the campus and creating a better environment for students, faculty, and staff. This project would help UC San Diego be a more student-centered university.

Academic Space

The proposed project would provide an innovative community space that would address the campus-wide need for additional lecture halls and classrooms. The project would also include a Provost Office, consisting of offices for the Dean, and professional staff, UC San Diego Counseling and Psychological Services5, as well as a commuter lounge, training/tutorial room, and a large lecture hall. Writing Program space is also proposed for the project, including office space, a conference room and a 40-seat classroom. Although the specific program and academic focus for the Future College is still in the planning stages, each college generally consists of similar general academic spaces.

Parking

The current per capita ratio of parking to campus population is 0.32, resulting in a campus-wide peak parking occupancy of 90 percent, representing the minimum number of spaces needed to operate at optimal efficiency6. The proposed Future College site currently provides 840 parking spaces spread over two surface lots (P102 and P103). The spaces in these lots are between 96 and 98 percent occupied during peak academic hours. During “off-peak” hours (nights and weekends), parking at these two lots has a similar occupancy rate because these lots provide parking for patrons of the (LJPH) and patrons of other events in the Theatre District. Per a standing agreement between the University and the LJPH, the campus is required to provide parking for LJPH patrons. Construction of the proposed project would eliminate these parking spaces.

5 While the CAPS main offices will relocate from Galbraith Hall to the Triton Pavilion for Student Resources and Community Engagement upon completion, the CAPS program also maintains a presence in each of the Colleges so that counseling services are more easily accessible for students. 6 Data Source: 2018 Long Range Development Plan. FINANCE AND CAPITAL STRATEGIES -9- F1B COMMITTEE July 17, 2019

Even with LRT service coming to campus in 2021, the nearest LRT station to this proposed site is three-quarters of a mile away, over a 100-foot elevation change. The campus anticipates that a large number of students, faculty, staff, visitors and theater/arts patrons will continue to drive to campus. For these reasons, this project would include approximately 1,200 (360 net new) subterranean parking spaces. The parking proposed as part of this project is not for student residents (freshman are not permitted to have a car if they live on campus). Rather, this parking is intended to serve faculty, staff, students who do not live on campus, and visitors. Parking at this location also aligns with the 2018 LRDP goal of providing parking facilities at the campus periphery that allows for a more pedestrian-focused campus core.

Project Delivery Model

The campus has selected a progressive design-build delivery method. Under this scenario, three pre-qualified design-build teams would be short-listed and invited to participate in a design and collaboration exercise. The competitive nature of this approach has shown that the teams strive not only to meet the program requirements, but are incentivized through a point system evaluation to convey their team building, creativity, communication, and technical skills.

Project Schedule

Approval of budget, external financing, and design following action pursuant to the California Environmental Quality Act would be requested in spring/summer 2020. Due to parking supply impacts, construction of this project cannot begin until completion of the North Torrey Pines Living and Learning Neighborhood (anticipated by fall 2020), which will provide 1,200 (278 net new) parking spaces to help mitigate the loss of spaces that will be taken out of service when construction begins at the Future College site. The goal is to complete the project by fall 2023.

Alternatives Considered

The proposed project has been identified as the best solution to maintain the quality of the student experience in the college system while continuing to increase enrollment through 2023 and beyond. The proposed project is consistent with growth parameters set forth in the 2018 Long Range Development Plan.

KEY TO ACRONYMS

CEQA California Environmental Quality Act FAR Floor Area Ratio FCLLN Future College Living and Learning Neighborhood HDH UC San Diego Housing, Dining, and Hospitality LJPH La Jolla Playhouse LRDP Long Range Development Plan LRT Light Rail Transit NTPLLN North Torrey Pines Living and Learning Neighborhood UG Undergraduate FINANCE AND CAPITAL STRATEGIES -10- F1B COMMITTEE July 17, 2019

UTC University Town Center

ATTACHMENTS:

Attachment 1: Preliminary Plans Budget Attachment 2: Project Location Map Attachment 3: Project Site Map

ATTACHMENT 1

PRELIMINARY PLANS BUDGET

FUTURE COLLEGE LIVING AND LEARNING NEIGHBORHOOD

Category Amount Percentage Design Build Fees 1 $23,855,000 80% Campus Administration 2 1,522,000 5% Surveys, Tests and Plans 3 430,000 1% Special Items 4 4,193,000 14% Total Preliminary Plans Budget $30,000,000 100%

The preliminary plans budget activities involve the following:

• Select and retain the services of a design-build team to provide programming, massing and site studies, and schematic design and design development documents. • The selected team will provide pre-construction services including estimating, constructability services, scheduling, and risk analysis. The contractor will also include the procurement of design-assist and design build subcontractors to work and collaborate with the architect and engineers throughout the design phases. • Provide the required administration and documentation necessary to obtain campus and Regental approvals, including approval of budget and financing, and approval of design following action pursuant to California Environment Quality Act.

Notes: 1. Includes design-build fees, bonds and insurance through the design development phase. Architecture and engineering team to provide full programming/scope development for the project, site planning, schematic design, and design development documents. Construction team to provide pre-construction services including estimating, constructability reviews, scheduling, site logistics and coordination with adjacent major construction efforts by other teams. In addition, the contractor will also provide the procurement of design-assist and design build subcontractors to work and collaborate with the architect, engineers and University throughout the design build process. 2. Includes campus project management, campus planning, engineering, design review, code and fire life safety design reviews, contract administration, and general administration of the project. 3. Includes site surveying, geotechnical and soils testing, utility trenching as needed to complete due diligence, and any other necessary design phase testing. 4. Includes external consultants to support programming and early design; development of housing design standards and performance-based specifications; design-build team selection process and stipends; technical studies to support preparation of the environmental document pursuant to the California Environmental Quality Act and peer reviews.

ATTACHMENT 2

ATTACHMENT 3