Transcript SUNY Capital Budget Presentation

Capital Budget Hearing
State University of New York
Dr. Nancy L. Zimpher, Chancellor
October 22, 2009
State University
of New York
State University
Construction Fund
SUNY Capital Program Summary
# of
Bldgs
Sq.
Foot(1)
Avg
Age(2)
2008-13
Funding(1)
Funded By
Projects Managed
By
1,828
57.6
44.5
$4,426(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
2,798
97.3
42.1
$5,885
Educational
Facilities
Totals
Notes:
(1) Square
footage and funding expressed in millions.
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.
(2) Average
2
State University
of New York
State University
Construction Fund
Educational Facilities

Critical Maintenance
Site Utility Lines - Alfred

Electrical Distribution Upgrade - Fredonia
Strategic Initiatives
Construct New Business School - Albany
New School of Education/Child Care - Cortland
3
State University
of New York
State University
Construction Fund
SUNY – Educational Facilities
■
73% of SUNY Educational Facilities are more than 30 years old
Millions
14
12
10
8
6
4
2
0
Pre1900
1910
1920
1930
1940
1950
1960
1970
1980
1990
2000
2010
Millions GSF
4
State University
of New York
State University
Construction Fund
Capital Investment – Critical Maintenance
Addressing Backlog and Facility Renewal Needs
Campus-wide Satellite Boilers – Alfred Ceramics

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.
5
State University
of New York
State University
Construction Fund
Capital Investment – Critical Maintenance
Addressing Backlog and Facility Renewal Needs
2007 Building Condition Assessment Survey (BCAS)
Profile of Overall Ratings Statewide
Approx. 55 Million Gross Square Feet (GSF)
GSF Rated Excellent
10%
GSF Rated Poor
20%
GSF Rated Good
42%
GSF Rated Fair
28%
6
State University
of New York
State University
Construction Fund
Capital Investment – Critical Maintenance
Addressing Backlog and Facility Renewal Needs

A long term investment is necessary to reduce the
current backlog to an industry standard of 5
percent of 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
7
State University
of New York
State University
Construction Fund
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
$3,500
$3,000
$2,000
Investment
$1,500
Backlog
$1,000
$500
2022
2021
2020
2019
2018
2017
2016
Year
2015
2014
2013
2012
2011
2010
2009
2008
$0
Start 2007
Dollars (Millions)
$2,500
8
State University
of New York
State University
Construction Fund
Strategic Initiatives
New Engineering Building – Buffalo University
High Tech Incubator - Fredonia
Science Engineering Technologies - Oswego
New Technology Building – Buffalo College
9
State University
of New York
State University
Construction Fund
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
10
State University
of New York
State University
Construction Fund
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 rampup period to reach sustainable investment levels
11
State University
of New York
State University
Construction Fund
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
$1,400
$1,200
$1,253
$980
$962
$1,038
$953
$800
$718
$710
$600
$464
$400
$287
$199
$492
$224
$225
$500
$220
$360
$280
$493
$297
$242
$269
$200
$496
$409
$377
$246
$169
$164
$151
New Contract Commitments
13
12
20
12
11
20
11
10
20
10
09
20
09
08
20
08
07
20
07
06
20
06
05
20
05
04
20
04
03
20
03
02
20
02
01
20
01
00
20
00
99
19
98
-
99
$0
19
Dollars, in millions
$984
$1,148
$1,000
Annual Disbursement Levels
12
State University
of New York
State University
Construction Fund
Capital Plan Progress
Replace Fuel Tanks – Downstate Medical Center
Waste Stream Mechanical Facility – Cornell University
Hudson Hall General Reconstruction – Plattsburgh
Replace HTHW Lines – New Paltz
13
State University
of New York
State University
Construction Fund
SUNY Capital Program (1)
Projects in Design and Construction
Billions
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
.5
.0
4/05
4/06
4/07
Design
(1)
Educational Facilities and Hospital Plans Only.
4/08
4/09
9/09
Construction
14
State University
of New York
State University
Construction Fund
SUNY Capital Program (1)
Projects Active or Completed Since 2004
1,862 Projects
($4.3B)
200 Projects
($2.6B)
Critical Maintenance
(1)
Educational Facilities and Hospital Plans Only.
Strategic Initiatives
15
State University
of New York
State University
Construction Fund
SUNY Capital Program (1)
Projects Active or Completed Since 2004
3,000
2,500
# Projects
In Design
287
Under Construction
526
Completed Projects
1,249
Total
2,062
2,000
1,500
$ Value
$ 2.8 B
$ 2.2 B
$ 1.9 B
$ 6.9 B
1,000
500
0
Ne
w
(1)
Da
ta
Co
ns
tr/
/T
ele
Ac
qu
i
Ro
ofs
co
m
sit
ion
In
Ex
AD
Sit
Bl
ter
dg
ter
e/I
A/
ior
Sy
nf
ior
Fi
r
ste
re
Re
a
R
s
ms
Sa
en
tru
ha
o
fet
b
c tu
va
y
tio
re
ns
Educational Facilities and Hospital Plans Only.
16
State University
of New York
State University
Construction Fund
Hospitals




Hospital Capital is distributed to
each hospital based on its
approved multi-year strategic
business plan
Projects include both critical
maintenance and revenueenhancing 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
17
State University
of New York
State University
Construction Fund
Hospitals
Hospital Funding – Capital Funding
Dollars in Millions
500
400
300
Funding Amount
200
100
0
03/04
04/05
05/06
06/07
07/08
08/09
09/10
Fiscal Year
18
State University
of New York
State University
Construction Fund
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 disbursementbased bonding in 2008 to
utilize capital in a more
efficient manner
East Campus Housing Project – Binghamton University
19
State University
of New York
State University
Construction Fund
Residence Halls
Dollars in Millions
Residence Hall Funding – Capital Funding
700
600
500
400
300
200
100
0
Funding Amount
03/04
04/05
05/06
06/07
07/08
08/09
09/10
Fiscal Year
20
State University
of New York
State University
Construction Fund
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
21
State University
of New York
State University
Construction Fund
Community Colleges
Dollars in Millions
Community College Funding – Capital Funding
450
400
350
300
250
200
150
100
50
0
Funding Amount
03/04 04/05 05/06 06/07 07/08 08/09 09/10
Fiscal Year
22
State University
of New York
State University
Construction Fund
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
23
State University
of New York
State University
Construction Fund
Community Colleges
Capital Reinvestment
24
State University
of New York
State University
Construction Fund
“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


25
State University
of New York
State University
Construction Fund
Economic Impact





Extensive and geographically diverse network of
University facilities across the State provides a builtin 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
over $700 million
SUNY’s Capital Program is a significant economic
engine throughout the State
26
State University
of New York
State University
Construction Fund
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
27
State University
of New York
State University
Construction Fund
State University Construction Fund
Average Number of SOQs per Opportunity (1)
April 1, 2008 thru September 30, 2009
State University Construction Fund
Average Number of Bidders per Opportunity
April 1, 2008 thru September 30, 2009
12
48
11
44
10
40
9
36
8
32
7
28
6
24
5
20
4
16
3
12
2
8
1
4
0
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
0
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
(1)
Includes all procurements for which Statements of Qualifications (SOQs) are received.
28
State University
of New York
State University
Construction Fund
State University Construction Fund
Bid vs. Estimate
Millions
$525
$500
$475
$450
$425
$400
$375
$350
Estimate
Amount Bid
$325
$300
$275
$250
$225
$200
$175
$150
$125
$100
$75
$50
$25
$0
September 1, 2008 – September 30, 2009
29
State University
of New York
State University
Construction Fund
State University Construction Fund
Percent of Bids within Estimate
Fiscal Year
2009 (YTD)
43 Projects
83.7
58 Projects
2008
70.6
2007
58 Projects
63.7
0
25
50
Percent
75
100
30
State University
of New York
State University
Construction Fund
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
31