University of Virginia Partners with Private Sector To Construct Information Technology Engineering Building

1. University of Virginia Partners with Private SectorTo Construct Information Technology Engineering Building Jeffrey Sands Associate Dean for Advancement University of Virginia School of Engineering and Applied Science Larry Cummings District Business Development Leader Trane http://www.seas.virginia.edu/admin/ricehall/

2. Historical Trends in Higher Education • 30 years of growth and prosperity • Enrollment up 25% last 10 years; 15.3M-20.4M (good demand) • 5.6% annual tuition increases for 10 years • Energy prices very reasonable • Cheap access to capital • Record donations to schools • Lots of construction, new buildings

3. Traditional Sources of Revenue Shrinking • 37 states have reduced funding • After 2008 recession, donation levels have dropped off • Federal government, outside of one-time stimulus, is providing less revenue to schools • Federal deficit and its potential impact loom on the horizon

4. Traditional Sources of Revenue Shrinking, Continued • Parents • Reduced home equity • Smaller nest eggs • Job security anxiety • Student debt ($1trillion) larger than all credit card debt

5. Average Tuition as Percentage of Earnings Figure 2: Higher education inflation (2001-2010) Average tuition on % of median earnings Median annual earnings $68,400 $61,000 $59,500 $58,900 $58,700 $59,700 $65,400 $59,000 $56,900 $55,738 Sources: US Bureau of Labor statistics (BLS): IPEDS; Bain & Company and Sterling Partners analysis

6. Projected Tuition Levels Figure 4: Projected tuition levels based on historical trends Indexed to 100-year 1983 3,000 College Tuition 2,000 Medical Care 1,000 Housing CPI 100 1983 2012 2030 Year Note: Housing costs–owner’s equivalent rent; all metrics based on US city averages and are seasonally adjusted; forecast based on compounded annual growth 1983 – 2010. Sources: BLS; Bain & Company and Sterling Partners analysis

7. The Translation Institutions have more liabilities, higher debt service, and increasing expense without the revenue or the cash reserves to back them up. The missions of schools must continue; thus stakeholders must find creative ways to accomplish their goals through public-private partnerships.

8. Focus on Core The natural question for higher education, then, is what incremental value is being provided for the incremental cost? To reverse the Law of More and create a more differentiated and financially sustainable institution, innovative college and university presidents are doing four things: 1. Developing a clear strategy, focused on the core 2. Reducing support and administrative costs 3. Freeing up capital in non-core assets 4. Strategically investing in innovative models

9. On-Line Education The rapid growth of online education has changed the game in a number of areas: • Value proposition (flexibility for students) • Economics (higher fixed-cost percentage, but lower fixed-cost dollars) • Marketing and recruiting (increasing reach) • Outcomes and assessment (better tracking and measurement). .

10. On-Line Education, Continued Nearly two-thirds of the college and university leaders at more than 2,500 institutions surveyed by the Babson Survey Research Group said that an online strategy is critical to the long-term success of their institution. Yet surprisingly, less than 50% of responding CEOs had included online programs in their campus strategic plan.

11. UVA’s PPP Approach UVA seeks partners to collaborate with them in developing new ideas, products, and technologies that improve the quality of life in the world community.

12. School of Engineering The Rice Hall Information Technology Engineering Building will serve collaborative researchers throughout the Engineering School and across the campus grounds as the nexus of information technology engineering activity at the University of Virginia (UVA).

13. Rice Hall Will Facilitate Research • High-performance computing • Computer visualization • Information assurance • Computer security • Distance learning • Distributed multimedia • Virtual reality • Telemedicine • Wireless communications

14. Rice Hall Evolves • Rice Hall was the right opportunity to partner with Trane • Trane makes great building systems; UVA needs great building systems. • UVA has many talented people studying complex building issues; Trane needs help working with the huge amount of data that is collected by building systems and using it as a basis for further innovation. • Through Trane/UVA SEAS partnership, the Rich Hall vision expanded to incorporate energy efficiency and sustainability, thus creating a “living laboratory”.

15. Rice Hall Will Facilitate Research • High-performance computing • Computer visualization • Information assurance • Computer security • Distance learning • Distributed multimedia • Virtual reality • Telemedicine • Wireless communications Energy Efficiency and Sustainability

16. Rice Hall Overview • 100,000-square-foot LEED Silver-certified building • Courtyard and cyber-lounge • 150-seat Olsson auditorium • Visualization lab for scientific computing • Computer vision and graphics lab • Facilities to support distance education • Workrooms, study areas, conference rooms and flexible teaching and research labs

17. Rice Hall Overview, Continued

18. Rice Hall = “A Living Lab” • UVA Engineering School’s outreach focuses on telling the story of the advanced heating, cooling, lighting and energy recovery systems that comprise the “living lab.” • This story is designed to inform investment decisions for similar systems in new buildings and retrofits.

19. Rice Hall Living Lab, Continued Central plant and airside systems have interesting energy features, including: • Thermal energy storage • Low temperature air and water • Enthalpy wheel heat recovery • Variable speed throughout

20. Rice Hall Living Lab HW System

21. Rice Hall Living Lab CW System, Continued

22. Rice Hall Living Lab Thermal Storage System

23. Rice Hall Living Lab Air Handler

24. Rice Hall Living LabTerminal Unit Comparison Six technologies deployed on third floor: • Fan coil • Water source heat pump • VAV - low temp • Chilled beam - low temp • VAV - conventional • Chilled beam – conventional Unit and component level metering will allow comparison of systems. Building infrastructure supports future comparisons.

25. Rice Hall Living LabTerminal Unit Comparison

26. Rice Hall Living Lab End User Spaces

27. Research and Development • There are thousands of sensors and meter points tied into the Trane automation system, accumulating data every second. • UVA has a core competency in big data and a core mission to educate future engineers – these intersect at Rice Hall. • Ongoing projects: • Smart occupancy (Kamin Whitehouse) • Low power optical communication technologies (Trane fellowship) • $2M NSF Grant to study “Smart Building Energy Systems”

28. Collaboration Benefits • Collaborations between academic institutions and private industry speed up industry innovation. • Graduates and private industry both gain from collaborations. Graduates benefit from career opportunities and private industry enhances recruiting efforts.

29. Thank you! Jeffrey Sands Associate Dean for Advancement University of Virginia School of Engineering and Applied Science Larry Cummings District Business Development Leader Trane http://www.seas.virginia.edu/admin/ricehall/