UCONN 2000

• PLANNING, DESIGN AND MANAGEMENT
• CONSTRUCTION
• CONNECTICUT CONTRACTOR SUMMARY
• FINANCE
• PRIVATE FINANCIAL SUPPORT

UCONN 2000: THE UPDATE

This is the thirteenth in a series of semi-annual reports to the Governor and the General Assembly pursuant to the provisions of Sections 10a-109 through 10a-109y of the Connecticut General Statutes, originally An Act to Enhance the Infrastructure of the University of Connecticut, now known as UCONN 2000. These reports have been issued each October and April since passage of UCONN 2000 on June 7, 1995. The law also required a four-year progress report, which was filed on January 15, 1999. The structure of the previous reports is utilized in this report.

As UConn's enrollment continues to grow, so has the need to provide adequate housing. Residential facilities that have come on-line this fall have increased the range of student housing options. With the completion of the Hilltop Apartment Community and the Hilltop Suites, the University not only added more than 1,400 beds, but also added to the spectrum of housing students may choose from. The former offers apartment-style living for upperclassmen and graduate students and the latter provides suites to complement the standard dormitory room options also available to students.

Significant renovations of residential facilities also have been done. Northwest Campus, the freshman residence complex, was completely refurbished last summer. In this complex, about 950 freshmen are joined by upper-classmen who serve as role models and mentors and help the new students with academic issues. The mentors receive training on how to work with and assist the students. The complex also houses the Academic Center for Entering Students (ACES), which counsels students on academic and career choices, and the First Year Experience Program. On the other side of campus, the Mansfield Apartments were converted into undergraduate and graduate housing.

The upgrade of our residence halls continues to be a priority. Structural improvements were made and fire safety sprinkler systems installed in the McMahon residence halls during the summer, with new lighting, carpets and paint in the hallways and stairwells added at the same time. Sprinkler systems will be installed next summer in the Alumni complex and Buckley and Shippee residence halls. All residence halls are already equipped with smoke detectors and fire alarms as well as automatic door closers. The University is on track with its plan to install sprinklers in all dorms by Fall of 2003.

Top notch residence halls not only help recruit more students but also help the University retain students. The broader concept of what UConn is doing is to match housing to students' appropriate development levels by:

• clustering freshmen together in structured areas with more programs for new students;

• offering mid-level students options that enhance privacy; and,

• providing opportunities for upperclassmen and graduate students to further increase their independence and take on responsibility as they move toward life after UConn.

The addition this semester of the Hilltop apartments and new residence halls was timed to handle a burgeoning student body, rapid growth that began in 1997. Nearly 9,500 of the current total of more than 14,000 undergraduates live on campus Ñ making UConn a national leader in the percentage of undergraduate students living in University housing.

• PLANNING, DESIGN AND MANAGEMENT
  At the July 24, 2001 Board of Trustees meeting a discussion took place that outlined the funding needs for the remainder of the UCONN 2000 Program. This discussion was a follow-up to the Annual Budget Workshop that took place on June 26, 2001 and was based upon a preliminary plan that had been presented at the November 9, 2000 meeting of the Board of Trustees.
  
  The immediate funding needs are shown as revised on Attachment A. Brief descriptions of these needs are as follows:

• Pharmacy/Biology
  After completion of the Tech Quad Biology Building project, staff will be relocated from the Life Science Annex building except for two teaching lab facilities. The Annex building will then be demolished, as it is the site of the new Pharmacy/Biology Building. The original plan proposed that these teaching labs be temporarily placed in a modular facility until Torrey Life Science Building could be renovated. After a thorough analysis and realignment of the scheduling of teaching labs, the need for this additional temporary facility has been eliminated. The funding has been reallocated.
  
• Technology Phase II/Engineering Large Lecture Hall
  As part of the effort to address the campus-wide need for large lecture hall space, a 350 seat lecture hall is planned as part of the Information Technology Building to be located between the new School of Business building and Babbidge Library. Previously, $1,200,000 of funding had been identified for this project with the need for an additional $2,200,000 to be identified. The lecture hall funding has been included in the project budget for the Information Technology building.
  
• Gant Plaza
  As part of the Gant Plaza reconstruction, plans call for a facility for the Institute for Material Sciences. This facility would meet two needs: provide needed additional space for one of the University's most productive research centers and to reduce surface area that is the plaza. The additional costs are based on bids received. This additional amount was included in the revised FY 2000-01 Capital Budget. The project is being completed this summer.
  
• Wilbur Cross Building Renovations
  The Wilbur Cross renovation, which also required relocation of the Booth Research Center, was bid twice. After the first bid, redesign activities were undertaken to reduce project scope. Then the project was re-bid, and responses demonstrated that, even with reduced scope, $3 million was necessary for project completion in order to meet its purpose to provide one location to meet all of the business service needs of under-graduate students. The additional amount was included in the revised FY 2000-01 Capital Budget, and Phase I of the project has been completed.
  
• Animal Facilities
  In order for UConn to continue and to expand animal research activities, animal care facilities must be upgraded. The U.S. Department of Agriculture's inspection of these facilities underscored this need. There are 23 animal care facilities at various locations on campus. Consultants have been retained to assist and evaluate facilities to enable UConn to improve the quality of care, reduce the number of facilities and identify the project scope for necessary physical upgrades. The preliminary cost estimate was $10 million to start work on identified deficiencies. Upon completion of the consultant's master plan the cost estimate was increased to $20 million. A summary of the recommendations is shown on Attachment B. Appropriate space will be provided through renovation of targeted facilities and expansion of the Pharmacy/Biology building project. Funding is allocated in that project budget and Deferred Maintenance/Renovation Lumpsum projects.
  
• Book Storage Facility
  Babbidge Library will exhaust available space for the storage of library materials in the next several years. When this occurs, current plans contemplate moving materials to an off-site storage facility. It now appears the need for the facility will not occur during the duration of UCONN 2000 and can be deferred to a future date.
  
• Lakeside Renovation
  The current facility housing University Communications and Governmental Relations has numerous leaks throughout the roof and faade. It is in such bad condition that significant repair or renovation is not a wise or cost-effective option. The new Hotel, Hilltop Apartments, and Hilltop Dorms will preclude the need for Lakeside to be used for housing overnight University guests and provide appropriate space for University Communications and Governmental Relations. Because of the costs identified with the renovation of the building for these departments and competing needs, lower cost alternatives are being explored. Within Deferred Maintenance/Renov ation Lumpsum, $1,000,000 has been budgeted for a project to meet these departments' needs.
  
• New School of Business
  $4.5 million of this $26.6 million project was to be obtained through private fundraising. The project is being completed this summer, and there is a cash flow shortfall ($3 million) in private funds; accordingly, additional funds are needed from UCONN 2000. This amount was included in the revised FY 2000-01 Capital Budget, and will be repaid as private funds are deposited.
  
• Gentry Renovation
  This project provides for complete renovation of the existing building and a possible addition for the School of Education, which is undertaking a fund raising campaign to supplement UCONN 2000 funding. Their goal is to raise $8 million by June 2002 that, along with the UCONN 2000 funding, would create an $18 million project budget. If funds are not raised by the target date, the project will be done on a $10 million budget.
  
• Agricultural Biotechnology Facility Completion
  $3 million in UCONN 2000 funds, augmented by a Department of Energy Grant of $7,770,682, will provide for the completion of the Agriculture Biotechnology project. The University already has occupied the first building. This project includes the construction of the second building (approximately 16,000 sq. ft.) and a new greenhouse facility (approx. 14,000 sq. ft.) as envisioned in the original project and the Master Plan. The facility will provide research and incubation space. Also included is space that could potentially be used for the Center for Regenerative Biology. Funding was included in the FY 2001-02 Capital Budget approved by the Board of Trustees at its April 2001 meeting.

To offset the above-mentioned increases in project needs, the administration proposed a reduction of funds for other projects as shown on Attachment A. For three of the projects (Beach Hall Renovation, Manchester/DRM Renovations, and Monteith/Arjona Renovations) work will be deferred to a future date. Also, the bond allocation for the renovation of the former School of Business facility to a Center for Undergraduate Education has been reduced from $15 million to $8 million. When funds become available from private fundraising activities for the new School of Business, these funds will be added to the Center for Undergraduate Education project. In determining need and sequencing, high priority was given to health and safety issues as well as the University's ability to complete projects appropriately within available funding.

Attachment C identifies project balances for the last three years of UCONN 2000. The funding totals as identified in the law are $100 million for FY 2002-03; $100 million for FY 2003-04; and $50 million for FY 2004-05. Attachment D identifies changes made to the Phase II UCONN 2000 project list since its approval at the May 26, 1999 Board of Trustees meeting. Attachment E lists projects managed by the University since UCONN 2000's inception in 1995.

Current plans call for the administration to present to the Board of Trustees in Fall 2001 a Third Supplemental Indenture authorizing issuance of University of Connecticut Special Obligation Revenue Bonds to support the following projects:

• Greek Housing
  This project will provide a centralized complex to house University's fraternities and sororities. The site for the project is north of the Towers Dorms where some chapters have existing houses and would provide housing for approximately 300 students. The Environmental Impact Evaluation for the project is underway, and a consultant has been hired to develop the program, which will be used as a basis to receive bids from Design/Build Teams. The project's estimated cost is $12 million.
  
• Improvements to Residence and Dining Halls
  The majority of the funding within UCONN 2000 identified for Residential Life improvements are for code and life safety improvements as presented to the Board of Trustees on November 9, 2000, January 2, 2001 and February 22, 2001. Because of these costs, there is not enough funding available to complete other necessary improvements to the existing facilities. These improvements include such items as:
  
  • Modernization of community bathrooms
  • Window replacements
  • Upgrade of electrical systems
  • Upgrade of finishes
  • Modernization of elevators
  • Roof replacements

Additionally, at the Towers Dorms, a new central dining facility is planned to replace the five existing small dining facilities. This new facility, which will enable both efficiencies and service advancements, also will serve the new Greek Community. The estimated project budget is $24 million.

• Student Union Addition
  At the April 12, 2001 Board of Trustees meeting a discussion was held about the Student Union Addition project budget and that, based on its design, the project was over budget. Since that time value engineering has taken place, but the project will still require more funding because any additional reductions in the project scope will materially alter the project to the point of affecting the programs. It is estimated that $5 million more is needed above the $35 million funding provided by UCONN 2000.
  
• One other capital project is in the preliminary stages of planning: a new Athletic Indoor Practice Facility. A consultant has been hired to start programming activities. Funding for the project would come from private fund raising. The project budget is estimated to be $35 million.
  
• As a follow-up to the discussion of the remainder of the UCONN 2000 Program, the Board of Trustees at its September 26, 2001 meeting approved and revised the FY 2000-01 capital budget, as follows:
  
  

• The University began an Environmental Impact Evaluation (EIE) for the construction of Graduate Student Apartments to meet a need for 500 to 1,000 beds of apartment style housing. Two potential sites are being evaluated: one, west of the University's Northwood Apartments and the other, east of the Storrs commercial block. Baystate Environmental Consultants was hired to conduct the EIE that is anticipated to be finished by April 2002.
  
• The Environment Impact Evaluation has been approved for the North Campus Master Plan. The primary land uses for the North Campus will be University-related research, technology/research, student residential housing, remote parking, and special academic and support services. The North Campus parcel occupies the same approximate boundaries as the formerly proposed Technology Park.
  
• Contract documents are being prepared for renovations at the School of Law that will provide for the phased renovations of facilities including the old Library Building. The architect for this project is Allan Dehar Associates of New Haven.
  
• Design Development is underway for renovations to the former School of Business building. The purpose of this project is to turn the old facility into a new Center for Undergraduate Education that will provide academic support for students as well as instructional support for faculty members and graduate students. Functions included in the facility will be the First Year Experience program (special seminars and activities for incoming freshmen), Career Services, Institute for Teaching & Learning, Study Abroad, Urban Semester, Center for Community Outreach, Instructional Research Center, Honors Program, and the Learning Research Center. Due to competing needs, the budget for the project has been reduced to $11,000,000. The architect for the project is Svigals Associates of New Haven.
  
• Construction documents are being finalized for the Student Union project, which will include major renovations and additions to the current facility. The primary goal of the project is to expand the range and quality of activities available to students in the campus core. Included in the project will be a food court, 500-seat theatre, student activity meeting space, ballroom, and central post office for all student mail. This facility also will provide new space for each of the campus' cultural centers. Implementation of the project will be phased over several years. The architects for the project are Cannon Associates of Boston. Konover Construction of West Hartford is the construction manager for the project.
  
• As part of the overall building and renovation program, the University continues the process of standardizing building systems and system components (e.g., electrical circuitry, panel boxes, etc.). This process will reduce the number of replacement parts the University needs to inventory, speed repairs, improve the level of maintenance, and lower overall costs.
  
• Design development drawings are under review for the new School of Pharmacy/Biology building. The project involves construction of a 120,000 square foot building for teaching and research for Pharmacy and the creation of a 55,000 square foot building of research space for Biology. The architect for the project is Davis, Brody Bond of New York City. Gilbane, of Glastonbury, is the construction manager for the project.
  
• Preparation of design documents for renovations to the Neag School of Education's Gentry building are underway. The project scope includes complete renovation of the building's interior along with exterior improvements of the faade and roof and an addition to the building. The architect for the project is Svigals Associates of New Haven.
  
• Design activities are underway for an addition to the Benton Museum. This $1.5 million project is funded through a combination of UCONN 2000 funds ($700,000) and private gifts.
  
• Contract documents are being prepared for the Waterbury Downtown campus project funded by State General Obligation bonds. The project will involve relocation of the Waterbury Regional campus from its present Hillside location to East Main Street. The existing academic programs, along with additional Bachelor of Business and MBA programs will be offered in the new facilities. The architect for the project is Jeter Cook & Jepson of Hartford. Although not part of UCONN 2000 funding, new legislation provides that the project will be managed by the University with the authority set forth in UCONN 2000. O & G Industries of Torrington is the construction manager for the project. It is anticipated construction will begin in December 2001.
  

• CONSTRUCTION
  • Construction has begun on the completion of the Agricultural Biotechnology Facility. A $7,770,682 Department of Energy Grant along with $3,000,000 from UCONN 2000 will fund this second phase of the project. The University has already occupied the completed first building. The project includes construction of a second building (approx. 16,000 sq. ft.) and a new greenhouse facility (approx. 14,000 sq. ft.) as provided in the original project and the Master Plan. The facility will provide for research and incubator space. Architects for the project are Svigals Associates of New Haven and the construction manager is Turner Construction of Milford. Construction will be completed in May 2002.
  • Construction began in August 2001 on the Technology Quad Phase II project, which involves construction of a new building for the School of Engineering's Information Technology program. This facility (projected at approximately 94,000 gross square feet) will include offices, classrooms, research labs, and a 350-seat lecture hall. The architect for the project is Burt Hill Kosar Rittlemann of Washington, DC. Construction manager for the project is O & G Industries of Torrington.
  • Construction was completed for the Waring Building renovation, which created additional classrooms and offices for the College of Liberal Arts and Sciences and its Geography, English and Statistics Departments. The building was occupied in July 2001. The contractor for the project was Hayes Construction of Seymour.
  • Installation of new exterior signage is underway at the main campus, Health Center, law school and regional campuses. The purpose is to incorporate signage that will provide a unified look and better directional information to visitors at all of the University's campuses.
  • Dedication of the new Marine Sciences Building at Avery Point took place on September 19, 2001. This project included a new 116,000 square foot research building, a 30,000 square foot Project Oceanology building, and a new central chilled water plant. The Project Oceanology building was occupied in June 2000. The contractor on the project was C.R. Klewin of Norwich.
  • Phase I of the Wilbur Cross renovation was completed in July 2001. This project locates all business functions relating to student services in one central, customer-friendly location. These functions include financial aid, bursar, registrar, dining services, residential life, and services to students with disabilities. The contractor for the project is Aspinet Construction of Avon. The remainder of the project will be completed in March 2002.
  • Construction was completed on the Gant Plaza Deck repair project in August 2001. The project included construction of a 14,000 square foot building on the deck for the Institute of Material Science and installation of a new deck waterproofing system. The construction manager for the project was Whiting-Turner of New Haven.
  • Construction is being completed on a hotel located on the Storrs campus, developed under a land-lease agreement with the University. The hotel portion of the project was opened October 15, 2001. The hotel is being built next to the Lewis B. Rome Commons building at South Campus to take advantage of its conferencing and catering capacity in conjunction with the hotel. The partnership for the project is Robert Freidman (hotel developer and owner of the Norwich Navigators) along with the Maristar Group, which manages hotels worldwide, including many university hotel facilities such as the Princeton Forestal. The restaurant/lounge will be completed at the end of October. The contractor for the project is G. Schnip Construction of Norwich.
  • Construction was completed for the second parking garage, located next to the Gampel Pavilion, in September 2001. The cost of the project is borne by a special obligation bond issued under UCONN 2000 authority. Revenue to support the debt service will come from parking and transportation fees. The facility contains 1,547 parking spaces and 53,000 gross square feet of retail space for the UCONN Co-op. The Co-op space will be completed in March 2002. The contractor for the project is Manafort Brothers of New Britain.
  • Construction of additional dormitories at the Hilltop complex was completed in August 2001. The project created 450 beds for students in suite style rooms. Financing was secured by special revenue bonds to be repaid through room-and-board fees. As enrollments increase, these added beds are absolutely critical. The project was completed in ten months, ahead of schedule. Konover Construction of West Hartford was the contractor for the project.
  • Construction was completed for the Hilltop Student Apartments in August 2001. This project accommodates 968 students. Part of the Hilltop residential neighborhood, the project is on Alumni Drive, immediately south of the Hilltop Dorms. The apartments are rented to University students only, with residents subject to the University's Code of Conduct.
  • Construction is being completed on a Community Center facility at the School of Social Work in West Hartford. This project is funded through the generosity of Henry and Judith Zachs, a UConn alumna. The relocated computer center moved into new facilities, which were completed in June 2001. The contractor for the project is Enfield Builders.
  • Construction was completed on the new School of Business in September 2001. The contractor for the project was FIP Construction of Cheshire. The project's funding was augmented with $4.5 million raised from private donations. However, these funds were not in hand in time to meet cash flow needs, so $3 million was provided from adjustments in the FY 2001 Capital Budget and will be repaid as private funds are deposited. The building was dedicated on October 26, 2001.
  • Construction activity has restarted on the Biological Sciences project. These activities began when the University and Liberty Mutual, the surety that held the payment and performance bond for the project, came to a fronting agreement whereby they agreed to pay the University $25,350,000 to complete the project. The University terminated the original contractor on February 4, 2000. Grounds for this termination included the following: unqualified general contractor staffing, removal of key personnel, unauthorized substitutions, subcontractor mismanagement, schedule-failure to comply with contract requirements, failure to prosecute the work, subcontractor payment irregularities, inadequate staffing/manning , change order processing failures, disregard for University property, refusal/delay in allowing document review, failure to timely provide general conditions documents, inadequate quality control, and inadequate safety supervision.
  • The Agricultural Arena completed in August 2001 contains a polo arena to replace the current outdoor facility. The majority of funds for this project were from private donations. All Phase Enterprises of Stafford Springs was the design-build firm on this project.
  • The Manufacturing Enterprise Facility was completed in September 2001. The majority of funding, $2 million, came from a grant from the federal Economic Development Agency. PDS Construction of Bloomfield was the general contractor on the project.
  • During Summer 2001 the University installed sprinklers in McMahon Hall and Hilltop Dorms as part of the plan to have all dormitories with sprinkler capacity by the start of the Fall 2003 semester. As part of this project 10,000 lineal feet of high-pressure mains were installed. Additional renovations, code updates and systems modifications were completed for both residential complexes.

SET-ASIDE CONTRACTOR SUMMARY

Public Act 99-241 called for, among other things, information on the use of Connecticut-owned businesses, including businesses owned by women and minorities on UCONN 2000 program projects. From FY 1996 to FY 2001, construction and related contracts for the UCONN 2000 program totaled $566.7 million. Twenty-six percent of this total, or $146.5 million, has gone to set-aside general contractors, contracted architects and engineers, and subcontractors. Over this period, Connecticut businesses have accounted for $443.4 million or 79% of the total contracted dollars. Small business participation has amounted to $76.0 million and minority- and women-owned participation has accounted for $70.4 million.

FINANCE

• Phase I Debt Service Commitment Bond Issues Completed
  
  Section 10a-109 of the Connecticut General Statutes empowers the University to issue General Obligation Bonds secured by the State's Debt Service Commitment (sometimes referred to as "Debt Service Commitment Bonds" or "DSC Bonds"). These Bonds are issued pursuant to the General Obligation Master Indenture of Trust, dated as of November 1, 1995, between the University of Connecticut, as Issuer, and, Fleet National Bank of Connecticut, as Trustee (now State Street Bank & Trust). The Master Indenture of Trust was approved by the University's Board of Trustees on November 10, 1995 and the State Bond Commission on December 21, 1995. The University's Board of Trustees and the Governor approve the subsequent Supplemental Indentures for each bond issue. The State Treasurer and the University manage the Debt Service Commitment Bond sale process. University General Obligation Debt Service Commitment Bond Issues are summarized below:
  
  

  Date of Issue	Par Amount	General Obligation Bond Issue
  Phase I
  February 21, 1996	$ 83,929,714.85	1996 Series A
  April 24, 1991	24,392,431.65	1997 Series A
  June 24, 1998	99,520,000.00	1998 Series A
  April 8, 1999	79,735,000.00	1999 Series A
  Phase II
  March 29, 2000	$130,850,000.00	2000 Series A
  April 11, 2001	100,000,000.00	2001 Series A

  
  
  The six series of DSC bonds issued totaled $618,427,146.50 in face value, of which $612,000,000 was for UCONN 2000 projects. The balance, together with accrued interest and original issue premium, funded the cost of issuance through the Office of the Treasurer.
  
  During the process of issuance for the UCONN General Obligation Debt Service Commitment 2001-A Bond Issue, the University working with the State Treasurer's Office was able to achieve an upgrade to "Aa2" from "Aa3" for the State's Debt Service Commitment Bonds. This is the second rating grade increase for the DSC bonds by Moody's Investors Service during the past twelve months. The 2001 Series A bonds were sold without any bond insurance, another successful first time accomplishment for the UCONN 2000 program. The capital markets thus recognized the tangible benefits to the State's economy of meeting the infrastructure and educational goals of the program, as well as the University's success in implementing them. As of September 2001, the UCONN 2000 Debt Service Commitment bonds were rated "AA" by Standard & Poor's; "Aa2" by Moody's Investors Service; and "AA-" by Fitch Investors Service. Certain maturities of prior bond issues are secured by "AAA" rated municipal bond insurance.
  
• Trustee-Held Construction Fund
  Prior to June 1998, all Debt Service Commitment Bond proceeds were deposited with the Office of the State Treasurer and treated like State bond proceeds. Subsequently, the Office of the Attorney General determined that the University, not the State, issues UCONN 2000 bonds. Accordingly, upon advice of bond counsel and to conform to the Master Indenture of Trust, Debt Service Commitment Bond construction fund proceeds were deposited to the Trustee Bank. Bond proceeds for cost of issuance are still deposited with and disbursed by the Office of the State Treasurer. The University has directed the Trustee Bank to invest Debt Service Commitment construction fund proceeds in the State Treasurer's Short Term Investment Fund, that is "AAA" rated and offers daily liquidity and historically attractive risk-adjusted yields.
  
  The Indenture of Trust provides that the University is authorized and directed to order each disbursement from the Construction Account held by the Trustee upon a certification filed with the Treasurer and Trustee. The Indenture provides that such certification shall be signed by an Authorized Officer of the University and include certain disbursement information. Once the Authorized Officer certification filings are made, the University can directly disburse payments.
  
• University Special Obligation Revenue Bonds Secured by Pledged Revenues
  UCONN 2000 also authorizes the University to issue Special Obligation Revenue bonds. Unlike Debt Service Commitment Bonds, paid for out of the State's General Fund, Special Obligation Bonds are paid for out of pledged revenues of the University as defined in the particular bond series indenture.
  
  A Special Capital Reserve Fund may be established for University Special Obligation bond issues only if the University's Board of Trustees determines that the Special Obligation bond issue is self-sufficient as defined in the Act. The self-sufficiency finding by the University must be submitted to and confirmed as not unreasonable or arbitrary by the State Treasurer prior to issuance of the bonds. Once approved, the Special Capital Reserve Fund is funded at issuance by the University to meet the minimum capital reserve requirement. However, subject to notification by the University on or before December 1, annually, if this amount falls below the required minimum capital reserve, there is deemed to be appropriated from the state General Fund the sums necessary to restore each such Special Capital Reserve Fund to the required minimum capital reserve.
  
  Student Fee Revenue Bonds were issued pursuant to the Special Obligation Indenture of Trust, dated as of January 1, 1997, between the University, as Issuer, and, State Street Bank & Trust, as Trustee. The University's Board of Trustees approved this on November 8, 1996. The Supple-mental Indenture authorized the issuance of bonds up to a principal amount not exceeding $30,000,000 for construction of the South Campus Residence and Dining Hall plus the amounts necessary to fund a Special Capital Reserve Fund ("SCRF") and to provide for costs of issuance.
  
  On February 4, 1998, the University issued $33,560,000 of University of Connecticut Student Fee Revenue Bonds 1998 Series A ("SFR 1998-A Bonds") with a final maturity of November 15, 2027. The University managed issuance and sale of these bonds and realized a favorable true interest cost over the term. Debt service for Student Fee Revenue Bond 1998 Series A's is paid from revenues from the student Infrastructure Maintenance Fee instituted in 1997 to provide for such debt service and help support future operation and maintenance costs for facilities built or expanded through UCONN 2000. The University invested the bond proceeds in the State Treasurer's Short Term Investment Fund, and, in regard to the Special Capital Reserve Fund, in "AAA" rated fixed income Investment Obligations as defined in the Special Obligation Indenture of Trust. The State SCRF enhancement allowed the bonds to obtain a "AA" rating from Standard & Poor's, "AA-" from Fitch Investors Service, and "A-1" from Moody's Investors Service. The bonds were subsequently covered by municipal bond insurance and upgraded to a "AAA" at Fitch and Standard & Poor's and "Aaa" at Moody's Investors Service. In October 1998, Standard & Poor's upgraded the SFR 1998-A Bond ratings to "AA" with a stable outlook, and in February 2001, Moody's Investors Service upgraded the 1998 bonds to "Aa3".
  
  On June 1, 2000, the University issued $89,570,000 of the University of Connecticut Student Fee Revenue Bonds 2000 Series A pursuant to the Special Obligation Master Indenture and the Special Obligation Student Fee Revenue Bonds Second Supplemental Indenture, dated as of May 1, 2000. The Indenture authorized issuance of bonds up to a principal amount not exceeding $90,000,000 for construction of the Hilltop Dormitory, Hilltop Student Rental Apartments, and the Parking Garage South Projects and provide for capitalized interest and costs of issuance. The Special Obligation Student Fee Revenue Bonds 2000 Series A do not have a Special Capital Reserve Fund ("SCRF"). The University managed issuance and sale of these bonds and realized a favorable true interest cost. The bonds have a final maturity of November 15, 2029. Debt service is paid from Pledged Revenues as defined pursuant to the Indentures. Bond proceeds are being used to provide the aforementioned student housing and parking garage. The University has invested the bond proceeds in the State Treasurer's Short Term Investment Fund.
  
  The University obtained a "AA-" stand-alone credit rating from Standard & Poor's for its second issue of Special Obligation Bonds, a validation of the University's ability to professionally administer complexities of the tax-exempt bond program. This was the first time the University obtained a credit rating based on its own merit without use of Debt Service Commitment or Special Capital Reserve Fund state-backed credit supports. This signaled a vote of confidence by capital markets in the University and its ability to provide benefits to the State's economy. Also, Special Obligation Student Fee Revenue Bonds 2000 Series A bonds were rated "A-1" by Moody's on a stand-alone basis. At issuance, certain maturities of the bonds were covered by municipal bond insurance and upgraded to a "AAA" rating at Fitch and Standard & Poor's, and "Aaa" at Moody's.
  
• Future Bond Issues
  The University currently anticipates offering a $100 million new money Debt Service Commitment Bond issue during the spring of 2002. Generally, the University plans on issuing a series of new money Debt Service Commitment bonds about every twelve months. Also, the University could issue Special Obligation Revenue bonds for certain projects with capacity for financial self-sufficiency, and/or if aggregate pledged revenues are sufficient to meet requirements of the Special Obligation Indenture. Depending on market conditions and other factors, the University also might issue either General Obligation or Special Obligation refunding bonds at some future date.

PRIVATE FINANCIAL SUPPORT

The UCONN 2000 endowment matching gift program continues to be a powerful incentive for donors. As of September 30, 2001, total match-eligible, calendar year gift receipts and commitments are $11,626,394, a 13 percent increase over the same period last year.

The University of Connecticut Foundation, Inc. reports the fiscal year ending June 30, 2001 marked the seventh straight year of record-breaking private fund-raising support for the University Ñ from $8.2 million in FY 1995 to $50.6 million in FY 2001. This achievement is a testimonial to the impact of the private-public partnership.

The original legislation in 1995 appropriated $20 million to support the state's matching grant program for private donations to establish new endowments or add to existing ones. It was such a resounding success that the State of Connecticut extended the program twice. The most recent extension, granted last June, will run through fiscal year 2014. It is expected to generate up to an additional $230 million in private endowment funds, which, together with the state match, enhances the total endowment by $345 million. This combination of private and state funds will support UConn's services to Connecticut and its students in perpetuity.

When the public phase of the $300 million Campaign UConn was announced on May 3, 2001, over $150 million had been raised and 230 new endowment funds supporting students, faculty, and programs had been established. The Campaign, which began in July 1998 and concludes in June 2004, is the largest ever undertaken by a public research university in New England. It is a logical step in helping UConn attain its goal to be among the country's top 25 public research universities by the end of the decade.

Significant Commitments
The Berkley Foundation, Inc. has committed $200,000 to establish the W.R. Berkley Endowment Fund for the Program for Talented Teens. Its purpose is to support programs designed to pair secondary school students with education mentors in the University's Neag School of Education. The programs will work toward encouraging the students to apply their powers of intellectual creativity toward solving "real world" problems.

An anonymous donor committed $400,000 to fund a Nutmeg Scholarship and a Day of Pride Scholarship, both prestigious awards for incoming freshmen.

Dr. Charles J. Burstone, retired head of the UConn Health Center School of Medicine's Orthodontics Department, endowed a professorship with $500,000 to advance research and education in orthodontics at the School of Dental Medicine. His gift will help recruit a senior faculty member with clinical experience to prepare qualified professionals to enter the field.

Daniel Flynn, Class of 1962, his wife Barbara, and the John G. Martin Foundation together pledged $1 million to create the Flynn-Martin Fund for Excellence at the UConn School of Law. The fund's resources will enable faculty to participate in high-profile activities assuming leadership roles, and will sponsor prominent legal scholars and other speakers who visit the school.

The Kim Family Fund has committed $250,000 to provide financial support for programs at the University's Department of Neuroscience within the School of Medicine. Specific uses for the income allocated to this fund shall be determined by the Dean of the School.

Private investment at the level of magnitude we are seeing at the University of Connecticut is not simply a function of loyalty or generosity, though our donors possess both qualities in great measure. It is the outcome of a rational assessment of our goals, our level of performance, the state's commitment of ongoing support for our transformation, and the University's decision to invest resources in fund raising efforts.