The Oregon University System for more than six years has pursued what would be the state’s largest photovoltaic project. The path has been riddled with obstacles, but a committed group is now closing in on a deal that it hopes will finally lead to installation of ground-mounted solar arrays.

Three campuses in the Oregon University System were supposed to have arrays totaling five megawatts operating by the end of 2011, with more to come online this year. But after ground was broken with much fanfare last August, the 27 dedicated acres remain untouched.

On Dec. 30 – the day before the first phase of the massive solar project was expected to be ready – the project’s developer, Utah-based Renewable Energy Development Corp., filed for Chapter 7 bankruptcy.

The action represented the second failed attempt to configure “Solar by Degrees,” a program to add solar power to all seven OUS schools; previously abandoned the project. It would be the largest university system-based contract in the U.S. if it were to move forward, according to OUS.

“We entered the hurdle race,” said Bob Simonton, OUS’ assistant vice chancellor for capital programs. “But it’s taking a pole vault to get over them.”

But OUS is now finalizing a new deal with San Mateo, Calif.-based , according to Brandon Trelstad, sustainability coordinator for Oregon State University.

If SolarCity were to officially take on the challenge, one crucial aspect of the financing package would already be in place: Business Energy Tax Credits.

SunEdison was unable to secure money through the state BETC program; however, after the company walked away, Simonton decided to take matters into his own hands and file the application himself.

“One of the biggest lessons learned was not to leave it up to the developer to get the BETC,” he said. “I did that as a precaution and now I can pass them through.”

The BETC program is almost wholly unfunded for now, but if the ground-mounted solar project were built this year, it would benefit from slightly more than $13 million in tax credits, Simonton said.

Because the project would receive significant state assistance, pressure is on everyone involved to demonstrate the quality of the investment, according to Martin Shain, who has served as a project consultant for nearly five years. After several deals fell through, some people are questioning why OUS is still trying to push it forward, he said.

“We need to show them that their investments in these programs are prudent,” said Shain, co-founder of renewable energy consulting firm . “A lot of people are very anxious to earn the badge of credibility here.”

According to OUS, the three initial university participants would save a total of more than $6 million over the next 25 years. The electricity rates the university pays are expected to be the same as in the previous plan: 4.1 cents per kilowatt-hour for power produced at the Oregon Institute for Technology and 4.8 cents per kilowatt-hour at Eastern Oregon University and Oregon State University.

Construction is anticipated to begin in late summer, although campus administrations could wait until May 15 to approve the plan.

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The Oregon Sustainability Center project was halted earlier this year when a request for $38 million in bonding approval was deferred by the state Legislature – even though approval had been granted for a larger amount in the 2009 legislative session.

But the center is only one of more than a dozen Oregon University System capital construction projects facing delays. These efforts at public universities around the state are being held up because either bonding approval was deferred, granted only partially or not considered because the OUS withdrew its request.

Design and construction firms, as well as the OUS, had fully expected these large projects to go forward – up until the day they were stopped suddenly because of legislative action. Some of these firms’ officials say it’s a reminder that even unusual delays like these are to be expected in a difficult economic climate.

The planned Student Experience Center is expected to fill Oregon State University’s need for a new student union – the existing one was built in 1928, principal James Meyer said. The OSU student body in May 2010 voted to approve a $48-per-term student fee to pay for construction of the building. However, state-backed bonds were needed to cover up-front costs.

Opsis officials were meeting with students in Corvallis the same week that the Legislature decided to defer approval of $40 million in bonds that included financing for the project.

“It was abrupt,” Meyer said. “We were going full-on when it stopped. It was tough.”

Many other projects that were depending on students fees were halted at the same time. Meyer said that legislators didn’t delay each project specifically, but rather applied a rule to all of them.

“It ties back into the Oregon University System bonds and how the state is backing those bonds,” Meyer said. “I think they couldn’t come to an agreement – ran out of time – and the easiest thing was a no from the folks in Salem.”

Andersen Construction was awarded the contract to serve as the general contractor for the project just a couple of months before it was halted, project manager Dustin Siebers said. The construction contract was worth more than $30 million and was a big deal for Andersen, he said.

“It was a surprise to us (and) I think it was a big surprise to Oregon State,” Siebers said. “We had to replan what we were going to do. We needed to look for work in the interim.”

Oregon University System spokeswoman Di Saunders said that the OUS will meet with university officials and legislators and then prioritize projects that had bond approvals deferred.

The OUS is set to submit a short list of high-priority projects to the Legislature’s Capital Construction Committee by Monday. The list will go before the committee at its meeting in November.

“The fiscal realities have affected the Legislature’s ability to approve all of the projects we had applied for in the last session,” Saunders said. “We need to review projects in light of that.”

The team planning the OSU student center was hit particularly hard by the delay because the project was so far along. A project to build a student recreation center at the University of Oregon was impacted less: associate Dave Guadagni said his firm is still working on the project’s expected time line.

“We’re doing fine,” Guadagni said. “We had always anticipated that design wouldn’t start until the user groups were on campus.”

Siebers and Meyer said that after engaging in some conversations with the OUS, they are optimistic – though without absolute certainty – that the Student Experience Center project will move forward next year.

“This is very uncommon, but we are now living in uncommon times,” Meyer said.

“When you’re working with state funding sources, nothing is ever certain,” Siebers said.

Meyer, whose firm seeks work in higher education, still has hope for the sector.

“I’m still positive that if we throw education down the drain, all bets are off,” Meyer said. “Civic projects have to be maintained.”

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Solar projects are booming in the education sector.

Solar capacity in higher education grew 450 percent over the past three years, according to a new database of on-campus solar installations compiled by .

AASHE reports that the market in 2010 for on-campus solar installations was over $300 million in the U.S. The Oregon University System this summer , which is billed as the largest solar contract in the nation for a public university system on multiple campuses.

Solar installations are also popping up on more elementary and high school campuses. The Bonneville Environmental Foundation’s program has supported solar projects on 150 schools nationwide, including a recent installment in southern Oregon.

Rogue Valley-based installed a 5.17 kilowatt system at Helman Elementary School in Ashland, which is enough to power more than 250 computers.

The Solar 4R Schools program has provided similar solar packages for more than 30 other Oregon schools.

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will break ground Thursday on a 500,000-square-foot project that is moving from design to construction.

The Collaborative Life Sciences Building will be owned and occupied by Oregon Health & Science University, Portland State University and the Oregon University System. The $295 million, two-part project is funded by the institutions, by bonds, philanthropic donations and a contribution from TriMet, which will operate a transit station adjacent to the building.

The building’s program will include labs and classrooms, research centers, the OHSU School of Dentistry and doctor’s offices, and it is being designed by a team of and California-based . The design firms, as well as consultants and members of the construction team, are co-locating at SERA’s offices to work on the design of the building, which is in the schematic drawing phase. An initial design for the building is currently passing through Portland’s design review process.

The building will be the first built on OHSU’s new Schnitzer campus near South Waterfront.

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When SERA Architects bid to design the Collaborative Life Sciences Building for the Oregon University System, the firm knew the project timeline was short. Design started in May, and the building needs to be ready for Portland State University staff by July 2013.

Donald Eggleston, SERA president and principal, believed there was only one way to get the work done on time.

“Because the Collaborative Life Sciences Building had a very short schedule, we put forth that the only way to do it was to be colocated,” Eggleston said.

In the colocation approach, other firms’ project representatives join SERA in its offices three days each week. Parties include: Day CPM, the owner’s representative; CO Architects, a partner project architecture firm; J.E. Dunn, contractor; and engineering firms KPFF and Interface Engineering. Some first-tier subcontractors also are participating.

“If you followed a normal Oregon University System process, you’d have two years to do design and bid the project,” Eggleston said. In this case, the team has two years to design and construct the entire building. Construction is slated to begin in October.

Colocation is rising in popularity, said Scott Kelsey, principal-in-charge for CO Architects. His firm, based in Los Angeles, works on higher education projects around the country, and often relocates teams.

The process can benefit such teams significantly, Kelsey said. For example, instead of receiving cost estimates from a contractor or an independent cost consultant at the end of each design phase, architects meet with contractors and consultants every one to two weeks to give “real-time feedback.”

Colocation offers a valuable opportunity to constantly discuss a project’s feasibility, constructability and cost, SERA project leader Alene Davis added.

It also can reduce lag time in communication.

“If I have a question for someone, I will literally get up and ask them a question,” Eggleston said. “I don’t have to send an email or send a phone call and wonder when I’m going to hear back.”

The downside, he added, is an increased number of meetings. The Collaborative Life Sciences Building project has spread throughout SERA’s office and takes up much of the conference space.

Project members say the benefits of colocation would be less for a project with a more traditional, linear timeline.

“If your project has a long, long schedule, there’s really no advantage,” Eggleston said. “Complexity is also an issue – on a simple apartment house with only a couple of consultants, there’s no advantage.”

For the Collaborative Life Sciences Building, however, SERA and CO architects are working with 12 consulting firms.

Many of the firms involved, and many members of those teams, want to participate. Unfortunately, not all of them can fit.

“The one thing that’s surprised me is how many people want to be in the colocate space,” Davis said. “We don’t have enough physical space.”

SERA’s first experience with colocation was in 2010, when it designed a major renovation of the Edith Green-Wendell Wyatt federal building. The process was introduced by the project owner, the General Services Administration.

Colocation shaved off between 15 and 27 months for the design phase, GSA supervisory project executive Pat Brunner said. That was essential, because that building renovation was paid for with federal stimulus money, which had an expiration date.

Technical issues for colocation projects such as the Edith Green-Wendell Wyatt and Collaborative Life Sciences buildings can create major headaches because representatives of multiple firms need to have computers that network with one another and can still communicate with home offices.

For the federal project, Brunner said the GSA spent more than $370,000 on technology so that the entire colocation team could work on the same Building Information Modeling system. He added that the move actually saved money for the fast-tracked project.

Another major challenge of the colocation approach focuses on culture. During the federal project, the GSA surveyed project team members to see how they were reacting to the unusual environment. While most people recognized benefits to colocation, some consistently gave negative feedback.

“Younger people are comfortable with collaboration and group work,” Brunner said. “The younger staff weren’t as wedded to a physical location and were much more adaptable.”

The GSA hasn’t used colocation frequently, but Brunner said he expects it to be used more in the future.

Colocation is, in a way, the next step of integrated project delivery.

“I think with the way the industry as a whole is moving towards fast-tracked schedules and more design-build or CM-GC-type processes, the colocate model is of tremendous benefit,” Davis said.

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The Oregon University System today broke ground on a huge solar project, slated to be the state’s largest.

The first phase of the project will include ground-mounted solar arrays at the Oregon Institute of Technology in Klamath Falls, Eastern Oregon University and Oregon State University. All told, the panels will cover 27 acres and generate nearly 5 megawatts of power.

The project, called “Solar by Degrees,” begins at OIT, which established the first renewable energy engineering degree in the country in 2005. The solar energy, combined with that from a new geothermal power plant that comes online in 2012, will be able to cover all of OIT’s electricity and heating needs.

The second phase of the project will spread solar to the other four campuses in the OUS system – Portland State University, Southern Oregon University, University of Oregon and Western Oregon University. Expected in 2012, the second round of installations will probably be rooftop arrays.

Part of the project’s focus is to make use of local solar companies: Portland-based Oregon Electric is the lead contractor for the project; the solar inverters are from PV Powered of Bend; and the solar panels are from SolarWorld‘s U.S. headquarters in Hillsboro.

SolarWorld, an international solar company based in Germany, also announced today that its panels will power a 2-megawatt project on property owned and operated by the Housing Authority of the County of Santa Barbara, which may be the largest affordable housing solar project in the U.S.

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While I’m sure architects, engineers and contractors around the region were disappointed to see the Portland Public Schools‘ bond – and the $548 million in construction spending it would have authorized – fail back in May, not all hope is lost for those who work on institutional building projects.

During an Oregon Board of Higher Education’s summer board meeting this afternoon, staffers presented an Oregon University System capital budget summary including projects that received funding during this year’s legislative session. Some of these projects on campuses across the state are sure to keep contractors busy – even as they anxiously await an announcement on whether PPS will put another construction bond on the November ballot.

The Oregon University System’s capital budget for 2011-2013 is $259.8 million, which can be spent on new construction, capital repairs, deferred maintenance and seismic upgrades. OUS officials expect the money to provide 2,400 jobs to workers across the state.

Here are some projects outlined in the capital budget:

• Eastern Oregon University: $13.18 million for deferred maintenance to Quinn Hall.
• Oregon Institute of Technology: $30 million for the Wilsonville campus consolidation project and $3.5 million for the Geothermal Demonstration Project in Klamath Falls.
• Oregon State University: $56 million for a new Business Education Building, $12 million for the bookstore relocation project, $4 million for the cross country track, $6 million to deferred maintenance at the Education Hall, $2 million for new equipment at the Animal Sciences Teaching Pavilion and $8 million for miscellaneous housing infrastructure upgrades.
• Oregon State University-Cascade Campus (Bend): $5 million to purchase and remodel the Mill Point Building in order to house various graduate programs.
• Portland State University: $7 million for the Blumel Residence Hall water replacement project and an undisclosed amount for a placeholder to help purchase City Tower from the city of Portland.
• Southern Oregon University: $21 million for deferred maintenance and seismic upgrades.
• University of Oregon: $5.3 million for work on Allen Hall and $10 million for work on the ISC/Lewis Science Building. Additionally, $2.5 million will be spent on steam line replacement around campus, and $3.95 million will be spent on improvements to various residence halls.
• Western Oregon University: $9.7 million on the renovation of the Natural Science Building and $1.2 million on seismic upgrades to Todd Hall.
• OUS system-wide: $35 million on capital renewal, code compliance and safety, as well as $20 million on miscellaneous student building fee projects and $4.5 million set aside for project reserves.

-Nick Bjork

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Earlier this week, I reported on one Republican legislator’s questioning of the Oregon Sustainability Center (“Oregon Sustainability Center, other capital projects put on ice,” subscription required). While House Co-speaker Bruce Hanna’s scrutiny probably won’t kill the project, it does appear that he’ll manage to put off approving bonds for the project until February.

Today, we got a hold of the details of the budget note Hanna will be adding to one of the university system’s budget bills, which will require that the sustainability center team bring a whole bunch of information and analysis back with its funding request in February. – a detailed list of the information Hanna is requesting starts on page 3, and includes a quality management plan, investment leverage plan, rental rate analysis, and nine other bullets.

That list is going to annoy the team behind the Oregon Sustainability Center. This project is a “delicate partnership,” according to outgoing Portland State University VP for finance and administration Lindsay Desrochers. The delay at the legislature was a surprise to Desrochers and others working on OSC – mostly because the project, and its bonding authority, had already been approved by the Oregon Legislature. The 50/50 split in the Oregon House put Hanna in a position to delay the project’s approval, and he has taken full advantage.

Hanna has also requested that the team show that two thirds of the building will be rented by parties other than the university system and state of Oregon. OUS had been slated to rent about 43 percent of the building–and if you add PSU to that number, it gets even bigger. Hanna said more private share would be a good sign for the viability of the project, though it’s always been slated to have mostly public, and non-profit, tenants. The only private tenant right now is Umpqua bank, though more are supposedly “in the works,” just unannounced. If the project is going to happen, the OSC team will have to hope that the legislative delay won’t scare off those potential private tenants.

There is more clarity today about which other university system projects are likely to have their bond approval discussions delayed until February.

Here is what we have heard so far, courtesy university system spokeswoman Di Saunders:

At Oregon State University
Sports performance center: $12 million
New residence hall: $30 million
Arnold Dining Hall renovation: $5 million
New university classroom facility: $65 million
New Student Experience Center: $40 million

At University of Oregon
Earl building upgrade: $2.9 million
Riverfront research park: $14.4 million
Food service upgrades: $1 million

– Angela Webber

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Because of concerns about increasing Oregon’s debt, Republicans in the state House of Representatives say they will delay bond approval for a number of Oregon University System capital projects.

Among the projects facing delays are the Oregon Sustainability Center and new classroom and student center buildings at Oregon State University.

Legislative leaders in Salem are scrutinizing a request by the OUS for approval of about $600 million in bonds to pay for capital projects and repair work.

Bonding approval had been granted in a previous session for some of the projects that would be delayed, like the Oregon Sustainability Center. However, unused bonds must be re-approved every biennium, and this time the Legislature said it had more questions about the projects.

“This is the first time we’ve ever experienced this,” Jay Kenton, vice chancellor for finance and administration at the Oregon University System, said in reference to the Legislature reversing course on bonds it previously approved. He said that up to half of the $600 million in requested bonds, including carry-forward bonds and new requests, may be delayed until February.

Co-Speaker of the House Bruce Hanna, R-Roseburg, led the effort in the joint Capital Construction Subcommittee to scrutinize the projects. He said the Oregon Sustainability Center project lacked clarity.

One of Hanna’s concerns was the high cost per square foot and high rents expected. The OUS is expected to rent more than 40 percent of the building.

“That should give all Oregonians a moment of pause: Do we really want to be building buildings that cost that much, with that high rental rate, and then have the university center rent it?”

In a note to be appended to the Oregon University System’s budget bill, Hanna will ask the OSC project team to plan for a larger percentage of the building to be rented by private tenants.

“If the private sector finds the building to be highly desirable, that’s better news for this building’s future,” Hanna said.

The Oregon University System is asking for approval of about $38 million in bonds for the Oregon Sustainability Center. The bonds would pay for more than half of the $59.3 million project cost; repayment would come from building operations, including rents.

Lindsay Desrochers, vice president for finance and administration for PSU, is concerned that a delay could halt the project’s momentum and worry private and public-sector partners.

“Everyone has been moving forward under the assumption that bonds would be sold,” Desrochers said. “Delaying the project and asking us to do a whole new series of analyses most definitely could result in a delay, and if we don’t move forward now we could really jeopardize the partnership and the project.”

But Kenton said he still has hope.

“I think the project can come together and we can answer their questions and go forward,” he said. “I’m not aware of any private-sector partners who are pulling out.”

OSU‘s Student Experience Center is facing delayed funding approval. Bonds for that project were slated to be repaid by student fees, which were approved by a vote of the student body last year.

A new $65 million classroom building at OSU also is on the delay list. That project would help the growing university avoid capping enrollment, Kenton said. The bonds would have been repaid through nonresidents’ tuition fees.

At this point, some uncertainty exists about which parts of the OUS budget and bonding requests will be approved. The university system’s budget and capital bonds bills are expected to be some of the last to pass this session. If legislators, as expected, add a note to delay bonding approval for projects until February, work would be delayed.

“Many of these projects we’ve spent money on and have plans and third-party participation,” Kenton said. “To delay a funding decision at this point obviously makes people nervous and puts projects ‘on ice’ a little bit.”

In a worst-case scenario, he added, some planning or design work could go to waste if one of the projects were nixed. But he hopes that won’t happen.

“The (legislators) are doing what they’re elected to do: scrutinizing and asking questions. We plan to answer them,” he said.

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Instead of playing soccer or joining the glee club, some Oregon high school students may opt to study HVAC systems and robotics after school instead.

The Oregon University System and the Engineering and Technology Industry Council last week announced that $203,774 in grants will be given to Oregon middle and high schools. The money is meant to start extracurricular engineering programs and to train teachers in an ETIC pre-engineering curriculum. The goal is to start enough students on the path to an engineering degree to meet the state’s need for a skilled engineering workforce.

A request for applications to the program went out last year, according to Bruce Schafer, director of OUS industry affairs. Over the past few months, review committees went through the applications and choose the schools based on the qualifications of the teachers, the number of students served, the economic need of population served, and the diversity of school, among other criteria.

The money from OUS and ETIC will go to two programs, Engineering Coaching and Mentoring Program (eCHAMP) and Project Lead the Way, which prepare middle and high school students for careers in engineering.

Grants offered through eCHAMP will give stipends to teachers in return for serving as coaches of engineering teams. The teams will compete in regional and statewide competitions on robotics and other engineering challenges.

Schools receiving eCHAMP grants include Century High School of Hillsboro, Cottage Grove High School, Dallas High School, Jesuit High School of Beaverton, Liberty High School of Hillsboro, Newberg High School, Philomath High School, St. Helens High School and The Dalles-Wahtonka High School.

The remainder of the ETIC grant funding will go toward starting Project Lead the Way engineering programming at eleven Oregon schools. The money will be used to support teacher training on the connections between engineering and traditional math and science classes through the Oregon Institute of Technology, as well as to purchase classroom equipment and software.

Four high schools, including Crow High School, Nestucca Valley Senior High, Vernonia High School and Winema High School, each received $7,200 in grants to implement Introduction to Engineering design coursework for PLTW.

Seven Oregon middle schools, including Brown Middle School of Hillsboro, Cedar Ridge Middle School of Sandy, LaCreole Middle School of Dallas, North Powder Charter School, Obsidian Middle School of Redmond, Patton Middle School of McMinnville and The Dalles Middle School, each received $17,200 to integrate Gateway to Technology PLTW curricula.

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