Transcript 2012-13 Capital Budget Request - State University Construction Fund

Presentation to SUNY PPAA
2012 Summer Conference
by the
State University Construction Fund
July 19, 2012
Today’s Discussion:
• SUNY’s Capital Program
• Capital Project Costs
• Campus Access to Project Health Sheets
• Updates on OFPC and Safety Round Table
• Highlights of Capital Projects in Construction
2
SUNY Capital Program Summary
Gross
Square
Feet (1)
Average
Age
Population
Served
Funded By/Primary
Financing Mechanism
Projects
Managed By
Program
Present On
# of
Bldgs
State-Operated
and Statutory
Educational
Facilities
34 Campuses
1,839
55M
44.6
Over 220,000
students
State / PIT (2) Bonds sold
through DASNY
SUNY / SUCF
State-Operated
Hospitals
3 Campuses
17
2.5M
25.0
Over 1,000,000
Patients
Annually
State / PIT Bonds sold through
DASNY, Debt Service is SelfFunded
SUNY / SUCF
State-Operated
Residence Halls
26 Campuses
467
19.3M
34.7
Over 72,000
Students
Revenue Bonds sold through
DASNY, Debt Service is SelfFunded
DASNY/SUNY
Community
Colleges
30 Colleges
544
18.8M
42.0
Over 240,000
Students
50% State (PIT Bonds for State
Share) / 50% Local
College/Local
Sponsor
Total
-
2,867
95.6
36.5
-
-
-
(1) GSF does not include Roads/Parking or Athletic Fields
(2) PIT – Personal Income Tax
3
Size of SUNY Relative to NYS Building Assets
(Excluding Infrastructure and Land)
SUNY
$ 6,357 M
33%
NYS
$ 10,055 M
52%
CUNY
$ 2,961 M
15%
4
Design and Construction Volume
Across all Four Programs as of 3/31/12:
253 Projects in Design with budget of $2.4B
631 Projects in Construction with budget of $4.1B
5
Impact of the SUNY Capital Program on the
Construction Industry
• The extensive and geographically diverse network of facilities across NY
provides a built-in framework for promoting NY’s economic development
• Public work is the primary driver of the construction market
• Supports the vertical segment of the construction industry
• 94% of SUNY Capital Program contracts awarded are to New York State firms
• 2011-12 SFY disbursements of $1,157M for all four programs combined
projected to have created nearly 10,000 estimated direct and indirect jobs
• Employs multiple construction trades
6
Recent Events Related to Capital:
• SUNY is at the end of its current 5 year plan
• SUNY faced with continuous facility renewal requirements
• NYSUNY 2020 Challenge Grant Program
Phase I ($80M / $60M) & Phase II ($30M / $30M)
• NY Works Accelerated Projects – 1st Quarter 2012/13
• No new bond funding for Residential and Hospital Facilities
• Bond Cap Limitations
• Creation of the NY Works Task Force
• Input from Regional Economic Development Councils
7
NY Works Task Force: Creation & Mission

Created by the 2012-13 Enacted Budget

Comprised of 15 members appointed by the Governor, with six
members appointed with consent/advice of Legislative leaders

Oversees and coordinates capital plans across all NYS agencies and
authorities

Included creation of an Implementation Council comprised of various
relevant agency and authority commissioners
8
NY Works Task Force: Goals
• Develop a coordinated capital infrastructure plan among state agencies and
authorities that is consistent with the regional economic development plans
• Recommend prioritization of capital infrastructure projects and allocation of
resources
• Provide recommendations to facilitate expedited permit approvals, regulatory
approvals and other such actions to advance priority projects
• Recommend financing options (i.e., state supported debt and federal funding)
• Advise state agencies and authorities on methods of procurement and
contracting.
9
NY Works Task Force: Current Activities
• Implementation Council’s first meeting held on June 20th
• Task Force Survey data to be compiled on capital planning processes at each
organization – what’s being done now, how the information is used to
prioritize projects, and who makes the decisions
• Survey to be summarized by July 16th
• Task Force activities expected to support a 10 year rolling capital plan
• Task Force looking for initiatives that ‘move the needle’
10
How the SUNY Capital Program succeeds:
planning + predictable multi-year funding = RESULTS
11
SUNY’s Next Plan:
Multi-Year Request for 2013/14 - 2018/19
1.
Educational Facilities – Developed using Facility Master Plans
2.
Hospitals – Developed using business plans
3.
Residential Facilities – Developed using business plans
4.
Community Colleges – Developed using Facility Master Plans, limited
by each sponsor’s ability to pay its 50% share
To the extent possible, align with goals of the
Regional Economic Development Councils
12
Centralized Themes of the Ten
Regional Economic Development Councils:
1. Leverage and Maximize Existing Resources
Use existing resources to either attain public-private partnerships or to entice
outside businesses and workers to the region.
2. Infrastructure
Invest in and improve existing infrastructure, from roads/waterways to cellular and
high speed internet.
3. Education
Utilize available educational resources (K-12 and public/private higher education) to
meet the needs of the larger workforce and to bring in outside businesses.
4. Reduce Export/Increase Import of New York State Workforce
Take steps to create a more desirable destination for workers from outside New
York State and keep New York workers here.
13
14
15
FY 2012 Bid Results since February
• Total value of bids taken for this period is $416,122,000
• Bids are 7.9% below established budgets
• Bids are 4.1% above median budgets
Number of Bidders,
statewide average
• 42 bids have been taken
8.6
• Average number of bidders per project
statewide is 7.3, a decline based
primarily Downstate
8.9
8.6
7.3
5.6
2008
2009
2010
2011
2012
16
Regional Results Breakdown (1)
Projects by Region
Volume by Region
(count)
(budget x 1000)
9
99,941
24%
15
South
South
Central
Central
West
West
East
9
9
48,991
12%
East
51,008
12%
216,182
52%
17
Regional Results Breakdown (2)
• South (Downstate) Region: $216.2 million bids
LvB -7.0%, MvB +9.9%, 11.6 bids each project (17.6 last year)
• Central Region: $51 million bids
LvB -7.2%, MvB -1%, 5.6 bids each project
• West Region: $49 million bids
LvB -13.1%, MvB -2.9%, 6 bids each project
• East Region: $99.9 million bids
LvB -7.5%, MvB -2.2%, 6 bids each project
18
Current Period Comparison to FY 2011
Comparison of Bid Ranges, ‘11 to Feb12 vs. Feb12 to Current:
– ‘11 to Feb12 Statewide: LvB -6.2%, MvB + 2.5% = Range of 8.7%
– Feb12 to Current Statewide: LvB -7.9%, MvB + 4.1% = Range of 12%
Why the Expansion of Bid Range?
– Greater volatility in energy and commodity markets
– Contractor bid strategies being experimented, refined
– Sampling bias towards the more volatile Downstate construction market
19
What Did the Bid Results tell us?
• The thinning of the construction market, and its contractors, is accelerating
in New York State.
• Some contractors are developing their competitive edge in an historic
business model – more on this in a few slides…
• Increases in labor costs, while small, are being passed on to owners.
Material costs, however, are trending down, and the net differences are
notable.
• The Downstate “cutthroat competition” continues and has spread to
specific trades elsewhere. Beware the desperate bidder – don’t spend your
savings.
20
Where are we going?
•
Global manufacturing is declining in
virtually every sector and location.
•
Employment growth is statistically
static before consideration of a
shrinking workforce.
•
Old Wall Street adage:
“Capital goes where it is welcome,
and stays where it is well treated.”
Baltic Dry Index, 30 months
21
Where are we going?
• Commodity prices are beginning to suggest global deflation.
• The US Dollar has experienced strength compared to the Euro, driving
commodity costs down. This may be temporary.
• Global currency risks force a trend to hard assets. Where do you hide?
Copper
Aluminum
22
Where are we going?
• Lower energy costs may not be
sustainable in the medium and long term.
• Supply and demand still rules. A
reduction energy and materials demand
has influenced prices.
Natural Gas
Ethanol
Crude Oil (WTI)
23
Bids for Downstate’s NAB
• New building with 8 stories, +/- 120,000 sf; Mix of labs, classrooms, offices,
simulators, electrical infrastructure for the campus; $78.7 million budget
• Low bid $68 million; median $79.5; high $96.6, with 13 total bidders
• SUCF “would have been” the
ranked bidder
7th
• Low bid was $10.7 million below
the SUCF budget. Why?
100,000,000
80,000,000
60,000,000
40,000,000
20,000,000
0
1 2 3
4 5
6 7
8 9
10 11
12 13
24
Was This a Good Bid?
• Three low bidders utilized an “old-fashioned” strategy to assemble their
bids – self-performance, or working as a true general contractor
• This low bidder will be performing all concrete work with his own labor and
equipment, and has captive subs for steel and mechanical trades
• By eliminating the additional level of markup for these trades, the
contractor allows a lower bid; but also accepts the potential for significant
added risk
• Put another way, the GC performs work for a lower cost than a specialty
contractor would be willing or able to do
• Not every bidder has the business skill or resources to work in this manner
25
And This Means…
• From our POV, low price to do the job is always a good thing, but….
• Risk on the project is almost never completely isolated.
• Recovery of bid savings is
prudent only after a
significant part of the project
has shown financial success.
• Don’t lose good efforts made
to save money on a project.
Saving is always a good idea!
26
CPMS
&
Campus Access to Project
Health Sheets
27
CPMS
• Our Capital Program Management System (CPMS) will administer the Fund’s
multi-billion dollar capital improvement program.
• CPMS applications will be utilized by Fund’s planning, design, construction,
and financial professionals
• CPMS will provide shared access to real-time information on scheduling,
budget and cost management, and forecasting in a format tailored to the
unique management needs of each business.
• The targeted “go live” date for user operation is Fall 2012.
28
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Campus Access to Project Health Sheets
Get Online:
Campuses can view their own campus Project Health Sheets via our website
www.SUCF.SUNY.edu under the Project Activity tab.
Sign up:
1.
2.
3.
4.
Email SUCF Design Coordinator, RD, or AD to request access
Provide names and email addresses of those needing access
An e-mail is generated inviting user to join and assigns a temporary password
A login screen directs user to campus-specific Project Health Sheets
Access the Project Health Sheets Using:
•
•
•
•
•
Any computer using your account on the SUCF Website
iOS (iPhone or iPad)
Android
Blackberry
Windows Phone
30
OFPC
&
Safety Round Table
Updates
31
32
NYS Fire Code, Chapter 14
Fire Safety During Construction and Demolition
Standard for Safeguarding Construction, Alteration,
and Demolition Operations
33
Weekly Inspections
Construction Managers & Site Representatives are:
• On-site, inspecting work
• Ensuring compliance with NYSFC
Weekly Inspection required by NFPA 241
• Checklist meets required documentation
• Serve as an educational tool for the Contractor
34
35
36
Safety Round Table
Round table group included representatives from:
• SUNY
• Contractors
• Construction Managers
• Fund
Group met 3 times to seek consensus on safety requirements:
• General requirements
• Site-specific safety plans
• Pre-activity requirements
Finalized, revised documents anticipated by Fall 2012.
37
Project Highlights
38
Health Science Center at Brooklyn:
New Academic Building
Downstate's academic programs and national accreditation have opened the way for the establishment of
the School of Public Health and growth in its other programs. Existing campus facilities are presently fully
occupied and new program space is needed to meet the campus’s growth. Additionally, surge space is
needed to relocate existing campus facilities to be able to rehabilitate these existing spaces. This project will
construct new space that will include but not be limited to simulation centers, laboratories, classrooms,
39
administrative spaces, and other associated spaces.
Brockport: New Academic Building
This strategic initiative has a total project value of $29M. At 60,000 gsf, the new building will house the
Humanities and a 200-seat auditorium with a vertically-operated acoustic partition wall. The exterior uses
familiar materials such as brick and large glass expanses, plus more contemporary features such as zinc
panels and a sunscreen. The project will meet LEED Silver and will include many sustainable features and an
extensive landscape with rain gardens and roof drainage routing through swales, storm water planters and a
pond as a bio-retention area. The construction contract was awarded in June 2012.
40
Maritime: New Academic Building
This Project consists of the following: construction of a three-story New Academic Building; construction of
foundation system and utility connections for the New Academic Building; associated site work and
landscaping; relocation of the Campus Loop Road; site utilities; and new sheet pile sea wall to
accommodate the construction of the New Academic Building. The building is skinned with a granite rain
screen, which is part of the campus material vocabulary initially derived from the Fort. Construction award
date was February 2011, with anticipated completion by August 2013.
41
Farmingdale: School of Business
This project will construct a new academic building to house various departments of the School of
Business. The building’s state-of-the-art design allows for the most up-to-date teaching pedagogy and
methodologies needed for the success of the Farmingdale School of Business and SUNY as a whole.
The building is designed in accordance with NYS Executive Order #111 and meets the minimum LEED
Silver requirements for new buildings. The construction award is scheduled for September 2012.
42
Plattsburgh: School of Business
The project will construct a new Building to accommodate the Schools of Business, Economics, and
Computer Sciences' classroom and office spaces currently located in Redkay Hall. This project has been
designed to achieve LEED Silver Certification. Building highlights include a roof garden accessible by all
building users and a fully-flexible computer science lab teaching room. Estimated construction completion
is late 2012.
43
Albany: School of Business
This project will construct a new 95,000 GSF Business School. Work includes concrete foundations, steel
superstructure, precast cladding, curtain wall, interior finishes, mechanical, electrical, and plumbing
systems, and related site infrastructure, landscaping and amenities. The building will be connected to the
existing Campus Podium by a new tunnel. Construction contract was awarded in January 2011, with
anticipated completion by August 2013.
44
Potsdam: Performing Arts Building
This project will provide a new building to house the College’s Theater and Dance Department. The
building boasts an unusual roof line and will include a proscenium theater, black box theater, large dance
studio, all corresponding support spaces, additional performance studios, scene and costume shops,
food service, classrooms and faculty offices. The construction contract was awarded in March 2011 with
anticipated completion by December 2013.
45
Fredonia: Renovate Science Building
The new 82,000 gsf Science Technology Building will accommodate classrooms, lecture halls, research
and instructional laboratories for academic programs along with administrative, support, and gathering
spaces. This three-story building has a connecting link to the adjacent Houghton Hall along with a new
greenhouse. The building has been designed to incorporate features of sustainable architecture and will
meet the requirements for LEED silver certification. The construction contract was awarded in June 2011,
with anticipated completion by February 2014.
46
Buffalo College: Renovate Science Building
The project's first phase of work involves a 100,000 square foot addition to house teaching laboratories for
all disciplines and an atrium connecting the addition to the existing Building. This project involves
demolition of a large classroom and temporary relocation of the Greenhouse and will provide new building
infrastructure, energy efficient equipment, and state of the art teaching laboratories. This is a LEED Project.
Construction contract was awarded in November 2009, with anticipated completion by October 2012.
47
Buffalo College: Technology Building
The project will construct a new 80,000 gsf three-story technology center with new labs capable of both
teaching and research, lean production, materials testing, environment and information technologies.
The Technology Building will house the departments of technology and computer information systems.
This project is designed to comply with LEED silver certification. The Construction contract was awarded
in April 2011, with completion estimated to be June 2013.
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Questions