Capital Budget Hearing State University of New York Dr. Nancy L. - - PowerPoint PPT Presentation

Capital Budget Hearing State University of New York

• Dr. Nancy L. Zimpher, Chancellor

October 22, 2009

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• f New York

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SUNY Capital Program Summary

# of Bldgs Sq. Foot(1

(1)

Avg Age(2

(2)

2008-13 Funding(1

(1)

Funded By Projects Managed By Educational Facilities 1,828 57.6 44.5 $4,426(3

(3)

State Fund/ Campus Hospitals 13 2.5 24.3 $450 Hospital Revenues Fund/ Campus Residence Halls 467 19.3 34.0 $573 Room Rents DASNY/ Campus Community Colleges 490 17.9 41.6 $436 50% State 50% Local Local Totals 2,798 97.3 42.1 $5,885

Not es es:

(1) Square footage and funding expressed in millions. (2) Average age (expressed in years) represents a straight average with no consideration given to the size of buildings or subsequent

renovations.

(3) Includes $1.65B in future appropriations for critical maintenance projects for 2010/2011 through 2012/2013.

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Educational Facilities

 Critical Maintenance

 Strategic Initiatives

Construct New Business School - Albany New School of Education/Child Care - Cortland Electrical Distribution Upgrade - Fredonia Site Utility Lines - Alfred

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SUNY – Educational Facilities

2 4 6 8 10 12 14

Millions

Pre- 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 Millions GSF

■ 73% of SUNY Educational Facilities are more than 30 years old

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Capital Investment – Critical Maintenance

Addressing Backlog and Facility Renewal Needs

 In 2007, SUNY and the

Construction Fund undertook a comprehensive Condition Assessment Survey and Capital Reinvestment Study.

 The initiative identified a $3.2

billion deferred maintenance backlog and a need for approximately $400 million per year for on-going facility renewal.

Campus-wide Satellite Boilers – Alfred Ceramics

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GSF Rated Poor 20% GSF Rated Fair 28% GSF Rated Good 42% GSF Rated Excellent 10%

2007 Building Condition Assessment Survey (BCAS) Profile of Overall Ratings Statewide

• Approx. 55 Million Gross Square Feet (GSF)

Capital Investment – Critical Maintenance

Addressing Backlog and Facility Renewal Needs

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 A long term investment is necessary to reduce the

current backlog to an industry standard of 5 percent

• f current replacement value

 The 2008-09 Enacted Budget included an initial

commitment of $550 million annually over a 5-year period

 The follow chart illustrates a 15-year-plan to reach

the desired outcome

Capital Investment – Critical Maintenance

Addressing Backlog and Facility Renewal Needs

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$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 Start 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Year

Dollars (Millions) Investment Backlog

Capital Investment – Critical Maintenance

Addressing Backlog and Facility Renewal Needs

$550M/$777M/$945M Will Reduce Backlog to 5% of Current Replacement Value in Fifteen Years

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Strategic Initiatives

High Tech Incubator - Fredonia Science Engineering Technologies - Oswego New Technology Building – Buffalo College New Engineering Building – Buffalo University

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Strategic Initiatives

 Enacted Capital programs since 2008 contained over

$1.7 billion in funding for Strategic Initiative projects

 Many of the initiatives provide vital support to science,

technology and research activities

 These investments are necessary to:

 Maintain and enhance SUNY’s ability to attract and retain

students and faculty

 Be competitive in its academic offerings and research capacity

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SUNY’s Capital Investment

 Merits of Multi-year Capital Programs:

 Adds predictability  Cost effective  Leads to better planning allowing for the identification and

prioritization of projects to address ongoing critical maintenance needs

 Provides for the efficient execution of necessary capital

investments by allow appropriate sequencing and phasing of projects

 Enables the University to maintain constant levels of

investment; avoids peaks and valleys and the long ramp-up period to reach sustainable investment levels

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SUNY’s Capital Investment

Educational & Hospital Facility Capital Programs Annual State Fiscal Plan Project Commitment & Disbursement Targets thru 2012/13

2008/09 Actuals showing B1184 delays; Estimated 2009/10-2012/13 as needed to Reduce CM Backlogs & support #1 SI's

$1,253 $1,038 $953 $500 $492 $493 $710 $246 $164 $151 $169 $220 $360 $280 $1,148

$496 $718 $199 $269 $377 $287 $242 $225 $224 $297 $409 $464 $984 $980 $962

$0 $200 $400 $600 $800 $1,000 $1,200 $1,400 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Dollars, in millions

New Contract Commitments Annual Disbursement Levels

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Capital Plan Progress

Replace HTHW Lines – New Paltz Waste Stream Mechanical Facility – Cornell University Hudson Hall General Reconstruction – Plattsburgh Replace Fuel Tanks – Downstate Medical Center

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4/05 4/06 4/07 4/08 4/09 9/09 .0 .5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5

Billions

Design Construction

SUNY Capital Program (1) Projects in Design and Construction

(1) Educational Facilities and Hospital Plans Only.

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SUNY Capital Program (1)

1)

Projects Active or Completed Since 2004

(1) Educational Facilities and Hospital Plans Only.

Critical Maintenance Strategic Initiatives

1,862 Projects ($4.3B) 200 Projects ($2.6B)

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16 500 1,000 1,500 2,000 2,500 3,000 N e w C

• n

s t r / A c q u i s i t i

• n

D a t a / T e l e c

• m

R

• f

s A D A / F i r e S a f e t y S i t e / I n f r a s t r u c t u r e I n t e r i

• r

R e h a b E x t e r i

• r

R e n

• v

a t i

• n

s B l d g S y s t e m s

# Projects $ Value In Design 287 $ 2.8 B Under Construction 526 $ 2.2 B Completed Projects 1,249 $ 1.9 B Total 2,062 $ 6.9 B

SUNY Capital Program (1) Projects Active or Completed Since 2004

(1) Educational Facilities and Hospital Plans Only.

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Hospitals

 Hospital Capital is distributed to

each hospital based on its approved multi-year strategic business plan

 Projects include both critical

maintenance and revenue- enhancing initiatives

 Each SUNY Hospital pays for the

principal and interest associated with the debt for its capital projects

 Appropriations are required to

submit for Certificate of Need approval

Vertical Expansion – Upstate Medical Center Major Modernization - PHII – Stony Brook University Hospital

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Hospitals

100 200 300 400 500 03/04 04/05 05/06 06/07 07/08 08/09 09/10

Fiscal Year Dollars in Millions

Funding Amount

Hospital Funding – Capital Funding

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Residence Halls

 The Residence Hall Capital

program is self sustaining with revenues from room rents and other associated revenues paying the cost of debt service

 Switched to disbursement-

based bonding in 2008 to utilize capital in a more efficient manner

East Campus Housing Project – Binghamton University

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Residence Halls

100 200 300 400 500 600 700 03/04 04/05 05/06 06/07 07/08 08/09 09/10

Fiscal Year Dollars in Millions Funding Amount

Residence Hall Funding – Capital Funding

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Community Colleges

 All community college capital projects are planned,

designed, bid and constructed under local control and authority, either by the college or the local sponsor

 Local sponsors must provide at least 50% of the

capital funding for a Community College project

 Colleges must obtain a local sponsor resolution

committing the local sponsor’s funding share to be included in SUNY’s Capital Budget Request

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Community Colleges

50 100 150 200 250 300 350 400 450 03/04 04/05 05/06 06/07 07/08 08/09 09/10 Fiscal Year Dollars in Millions Funding Amount

Community College Funding – Capital Funding

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Community Colleges

Capital Reinvestment

 A study is currently underway similar to the one

performed for the SUNY State-operated campuses and for the CUNY Senior and Community Colleges

 A late fall completion is anticipated  The study will provide information on the level of

capital investment needed to address the backlog and facility renewal needs for each College

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Community Colleges

Capital Reinvestment

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“Greening of SUNY”

 The University is the leader in the area  In 2007, the State University Board of

Trustees adopted a resolution as part of its overall plan of action for the “Greening of SUNY”

 All new buildings and major

rehabilitations must achieve at least a LEED Silver rating at State-operated campuses and statutory colleges

 Community Colleges are encouraged to also achieve at

least a LEED Silver rating

 These requirements are over and above the current State

requirements

Bio Tech Building – Stony Brook University

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Economic Impact

 Extensive and geographically diverse network of

University facilities across the State provides a built- in framework for promoting economic development activities in nearly every region

 Last year, Education and Hospital investments

alone totaled over $530 million

 Approximately half, or $260 million, was for labor

costs - not counting the ripple effect

 This year’s investment level is estimated to reach

• ver $700 million

 SUNY’s Capital Program is a significant economic

engine throughout the State

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Current Economic Climate

 SUNY is experiencing:

 An increase in number of bidders  Bids that are considerably under

estimate

 Higher levels of competition for

projects from Architects and Engineers

Crumb Library Window Replacement - Potsdam

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1 2 3 4 5 6 7 8 9 10 11 12

Apr 08 May 08 Jun 08 Jul 08 Aug 08 Sep 08 Oct 08 Nov 08 Dec 08 Jan 09 Feb 09 Mar 09 Apr 09 May 09 Jun 09 Jul 09 Aug 09 Sep 09

4 8 12 16 20 24 28 32 36 40 44 48

Apr 08 May 08 Jun 08 Jul 08 Aug 08 Sep 08 Oct 08 Nov 08 Dec 08 Jan 09 Feb 09 Mar 09 Apr 09 May 09 Jun 09 Jul 09 Aug 09 Sep 09

State University Construction Fund Average Number of Bidders per Opportunity April 1, 2008 thru September 30, 2009 State University Construction Fund Average Number of SOQs per Opportunity (1)

1)

April 1, 2008 thru September 30, 2009

(1) Includes all procurements for which Statements of Qualifications (SOQs) are received.

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$0 $25 $50 $75 $100 $125 $150 $175 $200 $225 $250 $275 $300 $325 $350 $375 $400 $425 $450 $475 $500 $525

State University Construction Fund Bid vs. Estimate

September 1, 2008 – September 30, 2009

Millions

Estimate Amount Bid

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• f New York

30 63.7 70.6 83.7

25 50 75 100

Percent

2007 2008 2009 (YTD)

Fiscal Year

State University Construction Fund Percent of Bids within Estimate

43 Projects 58 Projects 58 Projects

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Continue the Progress

 Continue multi-year capital investments

 Third installment of $550M Critical Maintenance for

Educational Facilities

 Funding for Community College projects that have

local sponsor resolution support

 Additional investments for Strategic Initiatives and

Hospitals

 SUNY/SUCF Flexibility Package

 Project delivery mechanisms such as Design-Build and

CM at Risk

 Post-audit capability as opposed to current pre-audit

requirements