On the agenda: Human Health Building and Coke or PepsiCo?
While the proposal for the three new housing buildings was removed from the agenda, Oakland University’s board of trustees are still scheduled to discuss the Human Health Building and Pepsi’s expiring 10-year contract.
The OU administration will give the OU board of trustee’s Finance, Audit and Investment Committee recommendations on these topics, and a finance report on Wednesday, Nov. 4 in the Elliot Hall auditorium.
The committee will review and question the items, and present the findings to the entire board at the next general board meeting Monday, Nov. 9. The board can choose to approve or reject items on the agenda.
The agenda for the Nov. 9 meeting is not available to the public yet, but the Nov. 4 agenda has been released, which includes the Treasurer’s report.
The following are the major items in Nov. 4 agenda.
Hiring a Contractor
The administration is recommending that the board approve The Christman Company to be the construction manager for the Human Health Building to be built at the corner of Squirrel and Walton on campus.
The building is to cost $61.7 million, $40 million of which is to be funded by the state of Michigan.
The administration recommended that payments to The Christman Company not exceed $2.8 million.
OU reviewed the bids from other companies for the project.
According to vice president for finance and administration and treasurer John Beaghan, Barton Mellow bid $2.5 million and Rewold/Skanski bid $3.3 million.
According to the administration, Barton Mellow, despite its lower cost, was not recommended because of “inadequate preconstruction services, lesser ability to manage LEED projects and a higher construction fee percentage.”
Pouring Rights Agreement
Coke or PepsiCo? The administration is recommending that the board approve PepsiCo to continue as OU’s exclusive beverage supplier for the next 10 years.
Pepsi is the current drink supplier, due to a 10-year contract approved in 1999. OU said Pepsi will give an estimated $4 million over the next 10 years in “financial considerations” to departments including athletics, fundraising and marketing, in exchange for the exclusivity.
Beaghan said in the agenda that proposals were made by Pepsi and Coca-Cola (Faygo and Metro Vending were invited to bid but didn’t) and reviewed by the Pouring Rights Committee, which included several OU administrators, as well as the student body president and vice president.