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Trustees approve $900,000 increase to Witter Farm modernization after asbestos and equipment-cost surprises

Finance, Facilities and Technology Committee, University of Maine System Board of Trustees · December 18, 2024
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Summary

The committee authorized increasing the Witter Farm project budget from $2.6M to $3.5M to complete a new robotic dairy facility, renovate two barns and demolish four; trustees were told unforeseen asbestos-lined pipes and higher-than-expected robotic-milking installation costs were the main drivers.

The Finance, Facilities and Technology Committee approved a resolution to increase the project budget for the J. Franklin Witter teaching and research center in Oldtown from $2.6 million to $3.5 million.

University staff told trustees the modernization includes a new robotic dairy facility, renovation of two barns and demolition of four older barns. Project cost drivers reported to trustees included unplanned hazardous materials discovered during demolition (asbestos-lined pipes beneath a barn), significant installation costs for new robotic milking equipment that were underestimated, delays and redesigns in steel framing, and general construction escalation. Kelly Sparks said crews uncovered asbestos-lined pipes in the ground that required removal for safety and that installation costs for the new robotic system were higher than anticipated.

Project teams said the estimate carried a 10% construction contingency and a 5% owner’s contingency; campus and system staff discussed process improvements to improve early scoping and estimating (project agreements, refined contingency sequencing) to reduce the chance of repeat requests. Trustees debated whether to make approval contingent on internal reform; the committee agreed to pursue reforms as an informational follow-up rather than by amending the spending resolution.

Trustee Mishu moved the resolution and Trustee Kane seconded. Roll-call votes were unanimous in favor and the committee approved increasing the authorized spending to $3.5 million; the item will be forwarded to the Board of Trustees for final action at the Jan. 13 meeting.