capital budget hearing state university of new york dr. nancy l. zimpher, chancellor october 22,...

Capital Budget Capital Budget HearingHearing

State University of State University of New YorkNew York

Dr. Nancy L. Zimpher, Dr. Nancy L. Zimpher, ChancellorChancellor

October 22, 2009October 22, 2009

2

State UniversityConstruction Fund

State Universityof New York

SUNY Capital Program SUNY Capital Program SummarySummary

# of# ofBldgsBldgs

Sq. Sq. FootFoot(1)(1)

AvgAvgAgeAge(2)(2)

2008-132008-13FundingFunding(1)(1) Funded ByFunded By Projects Projects

Managed ByManaged By

EducationalEducationalFacilitiesFacilities 1,8281,828 57.657.6 44.544.5 $4,426$4,426(3)(3) StateState Fund/CampusFund/Campus

HospitalsHospitals 1313 2.52.5 24.324.3 $450$450 Hospital Hospital RevenuesRevenues Fund/CampusFund/Campus

ResidenceResidenceHallsHalls 467467 19.319.3 34.034.0 $573$573 Room RentsRoom Rents

DASNY/DASNY/

CampusCampus

CommunityCommunityCollegesColleges 490490 17.917.9 41.641.6 $436$436

50% State50% State

50% Local50% LocalLocalLocal

TotalsTotals 2,7982,798 97.397.3 42.142.1 $5,885$5,885

Notes: (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.

3



Educational FacilitiesEducational Facilities

Critical MaintenanceCritical Maintenance

Strategic Strategic InitiativesInitiatives

Construct New Business School - AlbanyNew School of Education/Child Care - Cortland

Electrical Distribution Upgrade - FredoniaSite Utility Lines - Alfred

4



SUNY – Educational SUNY – Educational FacilitiesFacilities

0

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

5


State Universityof New YorkCapital Investment – Critical Capital Investment – Critical

MaintenanceMaintenanceAddressing Backlog and Facility Renewal Addressing Backlog and Facility Renewal

NeedsNeeds In 2007, SUNY and the In 2007, SUNY and the

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

The initiative identified a The initiative identified a $3.2 billion deferred $3.2 billion deferred maintenance backlog and a maintenance backlog and a need for approximately $400 need for approximately $400 million per year for on-going million per year for on-going facility renewal.facility renewal.

Campus-wide Satellite Boilers – Alfred Ceramics

6



GSF Rated Poor20%

GSF Rated Fair28%

GSF Rated Good42%

GSF Rated Excellent10%

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

Approx. 55 Million Gross Square Feet (GSF)Approx. 55 Million Gross Square Feet (GSF)

Capital Investment – Critical Capital Investment – Critical MaintenanceMaintenance

Addressing Backlog and FacilityAddressing Backlog and Facility Renewal Renewal NeedsNeeds

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A long term investment is necessary to A long term investment is necessary to reduce the current backlog to an industry reduce the current backlog to an industry standard of 5 percent of current standard of 5 percent of current replacement valuereplacement value

The 2008-09 Enacted Budget included an The 2008-09 Enacted Budget included an initial commitment of $550 million initial commitment of $550 million annually over a 5-year periodannually over a 5-year period

The follow chart illustrates a 15-year-plan The follow chart illustrates a 15-year-plan to reach the desired outcometo reach the desired outcome


Addressing Backlog and FacilityAddressing Backlog and Facility Renewal Renewal NeedsNeeds

8



$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

Sta

rt 2

00

7

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

Year

Do

lla

rs (

Mil

lio

ns

)

Investment

Backlog


Addressing Backlog and FacilityAddressing Backlog and Facility Renewal Renewal NeedsNeeds $550M/$777M/$945M$550M/$777M/$945M

Will Reduce Backlog to 5% of Current Replacement Value in Fifteen YearsWill Reduce Backlog to 5% of Current Replacement Value in Fifteen Years

9



Strategic InitiativesStrategic Initiatives

High Tech Incubator - Fredonia

Science Engineering Technologies - Oswego

New Technology Building – Buffalo College

New Engineering Building – Buffalo University

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Strategic InitiativesStrategic Initiatives

Enacted Capital programs since 2008 Enacted Capital programs since 2008 contained over $1.7 billion in funding for contained over $1.7 billion in funding for Strategic Initiative projectsStrategic Initiative projects

Many of the initiatives provide vital support to Many of the initiatives provide vital support to science, technology and research activitiesscience, technology and research activities

These investments are necessary to:These investments are necessary to: Maintain and enhance SUNY’s ability to attract and Maintain and enhance SUNY’s ability to attract and

retain students and faculty retain students and faculty Be competitive in its academic offerings and Be competitive in its academic offerings and

research capacityresearch capacity

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SUNY’s Capital SUNY’s Capital InvestmentInvestment

Merits of Multi-year Capital Programs:Merits of Multi-year Capital Programs: Adds predictabilityAdds predictability Cost effectiveCost effective Leads to better planning allowing for the Leads to better planning allowing for the

identification and prioritization of projects to identification and prioritization of projects to address ongoing critical maintenance needsaddress ongoing critical maintenance needs

Provides for the efficient execution of necessary Provides for the efficient execution of necessary capital investments by allow appropriate capital investments by allow appropriate sequencing and phasing of projectssequencing and phasing of projects

Enables the University to maintain Enables the University to maintain constant levels of investment; avoids peaks constant levels of investment; avoids peaks and valleys and the long ramp-up period to and valleys and the long ramp-up period to reach sustainable investment levelsreach sustainable investment levels

12



SUNY’s Capital SUNY’s Capital InvestmentInvestment

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

199

8-99

199

9-00

200

0-01

200

1-02

200

2-03

200

3-04

200

4-05

200

5-06

200

6-07

200

7-08

200

8-09

200

9-10

201

0-11

201

1-12

201

2-13

Do

llars

, in

mill

ion

s

New Contract Commitments Annual Disbursement Levels

13



Capital Plan ProgressCapital Plan Progress

Replace HTHW Lines – New PaltzWaste Stream Mechanical Facility – Cornell University

Hudson Hall General Reconstruction – PlattsburghReplace Fuel Tanks – Downstate Medical Center

14



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 SUNY Capital Program (1)(1)

Projects in Design and Projects in Design and ConstructionConstruction

(1) Educational Facilities and Hospital Plans Only.

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Projects Active or Completed Projects Active or Completed Since 2004Since 2004


Critical Maintenance Strategic Initiatives

1,862 Projects($4.3B)

200 Projects($2.6B)

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0

500

1,000

1,500

2,000

2,500

3,000

# 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


Projects Active or Completed Projects Active or Completed Since 2004Since 2004


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HospitalsHospitals Hospital Capital is distributed Hospital Capital is distributed

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

Projects include both critical Projects include both critical maintenance and revenue-maintenance and revenue-enhancing initiativesenhancing initiatives

Each SUNY Hospital pays for Each SUNY Hospital pays for the principal and interest the principal and interest associated with the debt for its associated with the debt for its capital projectscapital projects

Appropriations are required to Appropriations are required to submit for Certificate of Need submit for Certificate of Need approvalapproval

Vertical Expansion – Upstate Medical Center

Major Modernization - PHII – Stony Brook University Hospital

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HospitalsHospitals

0

100

200

300

400

500

03/04 04/05 05/06 06/07 07/08 08/09 09/10

Fiscal Year

Dol

lars

in M

illion

s

Funding Amount

Hospital Funding – Capital FundingHospital Funding – Capital Funding

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Residence HallsResidence Halls

The Residence Hall The Residence Hall Capital program is self Capital program is self sustaining with revenues sustaining with revenues from room rents and other from room rents and other associated revenues associated revenues paying the cost of debt paying the cost of debt serviceservice

Switched to disbursement-Switched to disbursement-based bonding in 2008 to based bonding in 2008 to utilize capital in a more utilize capital in a more efficient mannerefficient manner

East Campus Housing Project – Binghamton University

20



Residence HallsResidence Halls

0100

200300400500

600700

03/04 04/05 05/06 06/07 07/08 08/09 09/10

Fiscal Year

Dol

lars

in M

illion

s

Funding Amount

Residence Hall Funding – Capital FundingResidence Hall Funding – Capital Funding

21



Community CollegesCommunity Colleges

All community college capital projects are All community college capital projects are planned, designed, bid and constructed under planned, designed, bid and constructed under local control and authority, either by the college local control and authority, either by the college or the local sponsoror the local sponsor

Local sponsors must provide at least 50% of the Local sponsors must provide at least 50% of the capital funding for a Community College projectcapital funding for a Community College project

Colleges must obtain a local sponsor resolution Colleges must obtain a local sponsor resolution committing the local sponsor’s funding share to committing the local sponsor’s funding share to be included in SUNY’s Capital Budget Requestbe included in SUNY’s Capital Budget Request

22



Community CollegesCommunity Colleges

050

100150200250300350400450

03/04 04/05 05/06 06/07 07/08 08/09 09/10

Fiscal Year

Dol

lars

in M

illio

ns

Funding Amount

Community College Funding – Capital FundingCommunity College Funding – Capital Funding

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Community CollegesCommunity CollegesCapital ReinvestmentCapital Reinvestment

A study is currently underway similar to A study is currently underway similar to the one performed for the SUNY State-the one performed for the SUNY State-operated campuses and for the CUNY operated campuses and for the CUNY Senior and Community CollegesSenior and Community Colleges

A late fall completion is anticipatedA late fall completion is anticipated The study will provide information on the The study will provide information on the

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

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Community Colleges Community Colleges Capital ReinvestmentCapital Reinvestment

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““Greening of SUNY”Greening of SUNY” The University is the leader in the The University is the leader in the

areaarea In 2007, the State University Board of In 2007, the State University Board of

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

All new buildings and major All new buildings and major rehabilitations must achieve at least a rehabilitations must achieve at least a LEED Silver rating at State-operated LEED Silver rating at State-operated campuses and statutory collegescampuses 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 ImpactEconomic Impact Extensive and geographically diverse network Extensive and geographically diverse network

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

Last year, Education and Hospital investments Last year, Education and Hospital investments alone totaled over $530 millionalone totaled over $530 million

Approximately half, or $260 million, was for Approximately half, or $260 million, was for labor costs - not counting the ripple effectlabor costs - not counting the ripple effect

This year’s investment level is estimated to This year’s investment level is estimated to reach over $700 millionreach over $700 million

SUNY’s Capital Program is a significant SUNY’s Capital Program is a significant economic engine throughout the Stateeconomic engine throughout the State

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Current Economic Current Economic ClimateClimate

SUNY is experiencing: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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0

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 090

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 FundState University Construction FundAverage Number of Average Number of BiddersBidders per per

OpportunityOpportunityApril 1, 2008 thru September 30, April 1, 2008 thru September 30,

20092009

State University Construction FundState University Construction FundAverage Number of Average Number of SOQsSOQs per per

OpportunityOpportunity (1) (1)

April 1, 2008 thru September 30, April 1, 2008 thru September 30, 20092009

(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 State University Construction FundFund

Bid vs. EstimateBid vs. Estimate

September 1, 2008 – September 30, 2009

Millions

Estimate

Amount Bid

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63.7

70.6

83.7

0 25 50 75 100Percent

2007

2008

2009 (YTD)

Fis

ca

l Y

ea

r

State University Construction FundState University Construction FundPercent of Bids within EstimatePercent of Bids within Estimate

43 Projects

58 Projects

58 Projects

31



Continue the ProgressContinue the Progress Continue multi-year capital Continue multi-year capital

investmentsinvestments Third installment of $550M Critical Third installment of $550M Critical

Maintenance for Educational FacilitiesMaintenance for Educational Facilities Funding for Community College projects Funding for Community College projects

that have local sponsor resolution supportthat have local sponsor resolution support Additional investments for Strategic Additional investments for Strategic

Initiatives and HospitalsInitiatives and Hospitals SUNY/SUCF Flexibility PackageSUNY/SUCF Flexibility Package

Project delivery mechanisms such as Project delivery mechanisms such as Design-Build and CM at RiskDesign-Build and CM at Risk

Post-audit capability as opposed to current Post-audit capability as opposed to current pre-audit requirementspre-audit requirements

capital budget hearing state university of new york dr. nancy l. zimpher, chancellor october 22,...

Documents

current backlog

critical maintenance

deferred maintenance

facility renewal needs

capital reinvestment

research capacity slide

years old slide

suny capital program