why we do what we do for capital funding...aio n c o mp l e te min o r r ep air s‐f acilit y $38 ,...
TRANSCRIPT
1-2
Capital funding drivers and issues for BAR
WHY WE DO WHAT WE DO FOR CAPITAL FUNDING
Wayne Doty, SBCTC Capital Budget DirectorOctober 17, 2018
OUTLINE
• State capital versus operating funding• Overarching goals• Responsibilities• Elements of the request and what they are based on• Local expenditure authority• Allocations & monitoring• Hot topics• 2019-21 request and next steps
2
3-4
STATE CAPITAL VERSUS OPERATING FUNDING
Operating
• Relatively fewrestrictions on use
• Maintenance and policylevels
• Can be used to paystaff and operatebuildings
Capital
• Every dollar isappropriated for aspecific use
• One-time funding• Staff limited to
delivering approvedproject scope
3
WHAT IS CAPITAL?
• A funding source for acquisition, design, constructionor improvement of real property – does not usuallyinclude master plans or feasibility studies
• Funding may be appropriated and allotted (state) ornon-appropriated and non-allotted (local)
• Funds are spent self-performing the approved scopeor through a public work process
• College self-performance is limited to work with avalue of $90,000, or $45,000 if it only involves onetrade RCW 28B.50.330
4
5-6
WHAT IS PUBLIC WORK?
• A procurement method for “all work, construction,alteration, repair, or improvement other thanordinary maintenance, executed at the cost of thestate or of any municipality, or which is by law a lienor charge on any property therein.” RCW39.01.010(4)
• Community and technical colleges do not haveauthority to administer public work unless it isdelegated by DES.
5
PUBLIC WORK VERSUS ORDINARY MAINTENANCE
Ordinary Maintenance
• Repairing or replacingthings that wear outwith normal use
Public Work
• Installing somethingnew
• Something that canlead to lien on theproperty
• Something that requiresa permit
6
7-8
OVERARCHING GOALS FOR STATE CAPITAL
• Support our mission• Take care of what we have• Consistent with college master plans• We don’t want a single square foot we don’t need
7
Candidate for Additional Area
Candidate for Replacement
Candidate for Renovation
Minor Repairs by Severity
Space Deficit?
Facility ConditionProgrammatic Need
Yes
No
Wor
se C
ondi
tion
8
FINDING THE BEST SOLUTION
9-10
RESPONSIBILITIES• State Board
• Own all property RCW 28B.50.140(8)• Report all expenditures RCW 28B.50.090(7)(b) & (14)• Single prioritized budget request RCW 28B.50.090(1)• Allot funds from OFM and allocate to colleges RCW 28B.50.090(2)
• College• Deliver scope within funding provided SBCTC Policy 6.20.30• Account for expenditures SBCTC Policy 6.30
• Other agencies• OFM allots state funding based on progress• DES has public work authority and provides project management• DAHP advocate for the preservation of historic and cultural resources
9
PIECES OF OUR STATE CAPITAL BUDGET• M&O Fund Swap• Minor Preservation
• Emergency funding• Roof repairs• Facility repairs• Site repairs• Infrastructure repairs
• Minor Program Improvements• Major Projects• Alternative Financing
10
11-12
M&O FUND SWAP
• Started as a way to use lottery funds in 2003-05• Moved to Building Fee in 2009-11• College amount equals original amount reduced in
operating budget• Now part of college minimum operating allocation
11
MINOR PRESERVATION• System sets funding targets• College emergency funding (fka: RMI) is based on
its’ portion of system full-time equivalent students(FTE) and owned square footage (SF)• 35% FTE + 35% SF + 30% SF >25 years old
• Repairs are identified and prioritized through facilitycondition survey
• Individual projects can’t exceed $2M in state fundingand must be completed in biennium
• State Board manages emergency and hazmat pools• Adding new infrastructure category for 2021-23
12
13-14
MINOR PROGRAM• System sets funding targets• College funding is based on its’ portion of system
full-time equivalent students (FTE) and ownedsquare footage (SF)• 30% FTE + 35% SF + 35% SF >25 years old
• Colleges identify projects to reflect critical goals ofthe college and serve to improve the educationalenvironment, better access, deal with childcare, orstudent support services.
• Individual projects can’t exceed $2M in state fundingand must be completed in biennium
13
MAJOR PROJECTS
• System adopts selection criteria and either a fundingtarget or minimum score
• Funded in two phases• Implications for design build delivery• We use a pipeline to maintain priorities and
minimize gaps between funding phases• Facility conditions and utilization are significant
factors
14
15-16
EVERY MAJOR PROJECT SCORED ON A 100 POINT SCALE
15
Overarching CriteriaApplies to every project. Has 23 potential points.
Matching Criteria
For projects with non-state funding.
Infrastructure Criteria
For projects with non-building infrastructure.
Renovation Criteria
For projects that include renovation of existing space.
Replacement Criteria
For projects that will demolish existing space and replace it with new construction.
New Area Criteria
For projects that increase the square footage of a campus.
Category-specific criteria always totals 77 potential points.
ALTERNATIVE FINANCING• All financing for a capital purpose requires legislative
authorization and approval from the State FinanceCommittee RCW 39.94
• We use locally supported Certificates of Participation forland and facilities the state legislature does not typicallyfund
• Legislative authority is requested in the capital budget
• The State Finance Committee is:• Treasurer – chair• Governor• Lieutenant Governor• Staffed by Treasurer’s office and bond council
16
17-18
LOCAL CAPITAL
• The State Board must “establish and administercriteria and procedures for all capital construction.”RCW 28B.50.090(9)
• We use the local capital expenditure authorityrequest form to collect information (fka: C8)
• Assign State Board project number for tracking• State Board has delegated authority to the Executive
Director for projects costing $1M, and less.
17
MINOR PROJECT ALLOCATIONS
• Minor projects allotted by OFM based on lists• Allocated at beginning and lapse at end of biennium• List changes can be made quarterly• Emergency and hazmat pools allocated until gone
18
Key to success: schedule all the work before the biennium starts.
19-20
• Allotted by OFM based on progress• Predesign at beginning of biennium• Remainder of design-phase funding after the
predesign is approved by OFM• Construction and related costs after bid• Equipment after OFM approval of detailed list• College must manage the project within the funding
provided
19
Keys to success: keep project budget up to date and don’t let issues linger.
MAJOR PROJECT ALLOCATIONS
MONITORING
• State Board merges expenditure data from legacyand ctcLink systems into CapTrack monthly andnightly, respectively
• Examples of allocation and monitoring screens onthe next two slides
20
21-22
21
22
23-24
2019-21 REQUEST
23
Priority College
NumberClass
Phase
Project
AmountCumulative
1Statewide
40000043Preservation Fund Swap
Preventive Facility Maintenance and Building System Repair $22,800,000$22,800,000
2Statewide
40000258Preservation Complete
Minor Works ‐ Preservation
$23,739,000$46,539,000
3Statewide
40000171Preservation Complete
Minor Repairs ‐ Roof
$15,252,000$61,791,000
4Statewide
40000169Preservation Complete
Minor Repairs ‐ Facility
$38,527,000 $100,318,000
5Statewide
40000173Preservation Complete
Minor Repairs ‐ Site
$3,310,000 $103,628,000
6Statewide
40000112Program
CompleteMinor Works ‐ Program
$39,841,000 $143,469,000
7Wenatchee
30000985Preservation Construction Wells Hall Replacement
$29,531,000 $173,000,000
8Olympic
30000986Preservation Construction Shop Building Renovation
$7,652,000 $180,652,000
9Pierce Puyallup
40000293Program
Design
STEM building
$3,369,000 $184,021,000
10Pierce Fort Steilacoom30000987
Preservation Construction Cascade Building Renovation ‐ Phase 3
$31,592,000 $215,613,000
11Bellevue
40000168Program
Design
Center for Transdisciplinary Learning and Innovation
$2,839,000 $218,452,000
12South Seattle
30000988Preservation Construction Automotive Technology
$23,376,000 $241,828,000
13Lake Washington
40000102Program
Design
Center for Design
$3,160,000 $244,988,000
14Shoreline
30000990Preservation Construction Allied Health, Science & Manufacturing
$36,642,000 $281,630,000
15Bates
40000130Program
Design
Fire Service Training Center
$2,802,000 $284,432,000
16Olympic
40000103Program
Design
Innovation & Technology Learning Center
$2,552,000 $286,984,000
17Bates
30000989Preservation Construction Medical Mile Health Science Center
$40,828,000 $327,812,000
18Everett
40000190Preservation Design
Baker Hall Replacement
$2,850,000 $330,662,000
19Spokane Falls
30001458Preservation Construction Fine and Applied Arts Replacement
$35,663,000 $366,325,000
20Tacoma
40000104Preservation Design
Center for Innovative Learning and Engagement
$2,839,000 $369,164,000
21Wenatchee
40000198Preservation Design
Center for Technical Education and Innovation
$3,093,000 $372,257,000
22Clark
30000135Program
Construction North Clark County
$49,766,000 $422,023,000
23Shoreline
40000214Preservation Design
STE(A)M Education Center
$2,837,000 $424,860,000
24Everett
30000136Program
Construction Learning Resource Center
$45,365,000 $470,225,000
25Lower Columbia
40000106Preservation Design
Center for Vocational and Transitional Studies
$2,995,000 $473,220,000
26Spokane
40000107Preservation Design
Apprenticeship Center
$3,153,000 $476,373,000
27Grays Harbor
30000127Preservation Construction Student Services and Instructional Building
$41,460,000 $517,833,000
28Columbia Basin
40000108Preservation Design
Performing Arts Building Replacement
$2,299,000 $520,132,000
29North Seattle
30001451Preservation Construction Library Building Renovation
$28,579,000 $548,711,000
30Whatcom
40000137Program
Design
Technology and Engineering Center
$2,868,000 $551,579,000
31Walla Walla
30001452Preservation Construction Science and Technology Building Replacement
$8,796,000 $560,375,000
32Cascadia
30001453Program
Construction Center for Science and Technology
$37,985,000 $598,360,000
33Cascadia
40000222Program
Design
CC5 Gateway building
$2,993,000 $601,353,000
34Edmonds
40000114Program
Design
Triton Learning Commons
$3,439,000 $604,792,000
35Renton
40000204Program
Design
Health Sciences Center
$3,821,000 $608,613,000
36Bellingham
40000256Preservation Design
Engineering Technology Center ‐ Bldg J Replacement
$1,295,000 $609,908,000
37Centralia
40000109Preservation Design
Teacher Education and Family Development Center
$1,897,000 $611,805,000
38Skagit
40000110Preservation Design
Library/Culinary Arts Building
$2,136,000 $613,941,000
39Highline
40000105Preservation Design
Welcome Center for Student Success
$2,957,000 $616,898,000
40Clark
40000227Preservation Design
Hanna/Foster/Hawkins Complex Replacement
$2,324,000 $619,222,000
41Peninsula
40000111Preservation Design
Advanced Technology Center
$2,103,000 $621,325,000
42South Seattle
40000231Preservation Design
Rainier Hall Renovation
$3,309,000 $624,634,000
43Seattle Central
40000294Preservation Design
Broadway Achievement Center
$2,723,000 $627,357,000
College
NumberClass
Phase
Project
Authority
Columbia Basin40000301
ProgramAuthorize
Student Recreation Center
$27,000,000
Grays Harbor
30000127Preservation Authorize
Student Services and Instructional Building
$3,200,000
Pierce Puyallup40000302
ProgramAuthorize
Parking Expansion
$2,831,000
Walla Walla
40000303Program
AuthorizeStudent Recreation Center
$6,500,000
Walla Walla
40000304Program
AuthorizeClarkston Student Activity Center
$1,500,000
Wenatchee
30000985Preservation Authorize
Wells Hall Conference Center
$4,500,000
Yakima
40000003Program
Re‐authorize West Campus Expansion
$22,700,000
2019‐21 SBCTC Capital Request for New Appropriations
2019‐21 SBCTC Capital Request for Financing Authorities
HOT TOPICS
• Requesting about twice the state bonds we haverecently been receiving
• College end runs to the process and request• Staff paid from the state capital budget• Our aging infrastructure• Space utilization• New M&O funding
24
25-26
$ M
$100 M
$200 M
$300 M
$400 M
$500 M
$600 M
$700 MRequestedReceived
CAPITAL REQUESTS AND FUNDING
25
$ B
$1 B
$2 B
$3 B
$4 B
STATE BOND CAPACITY
26
27-28
$ B
$1 B
$2 B
$3 B
$4 B
PORTION OF STATE BONDS
27
SBCTC / State
Higher Ed / State
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
END RUNS
• While individual districts may be able to getsomething added to the budget when they arerepresented by a legislator in a leadership position,the system believes it gets better results over thelong run by working together
• WACTC has had a policy against districts goingaround the process for capital funding since 2006
• The policy was last update in 2014 to excludefunding provided for leased properties
28
29-30
STAFF PAID WITH STATE CAPITAL FUNDING• Most of the capital budget is from bonds financed
over 25 years• We only want to finance things that will be around
while we are still paying for them• OFM provides guidance on what equipment and
staff can be paid for from the state capital budget• JLARC is reviewing all 2015-17 staff expenditures
from capital appropriations for compliance
29
AGING INFRASTRUCTUREBuilding Square Footage by Age
30
31-32
UTILIZATION
31
NEW M&O FUNDING
• The legislature has not provide increasesspecifically for M&O of existing facilities
• New M&O is funded for the state supported portionof major projects ($7.24/GSF for 2017-19)
• The M&O increase goes into “safe harbor” for 4years and then becomes part of the fundingdistributed using the operating budget allocationmodel
32
33
Except where otherwise noted, this work is licensed under CC BY 4.0.
NEXT STEPS FOR 2019-21 BUDGET
• Friday, September 14, 2018 Capital budget request due to OFM
• Monday, December 10, 2018 Governor's budget proposals expected
• Monday, January 14, 2019 First day of 2019 session
• Friday, March 01, 2019 Fiscal committee cut off
• Wednesday, March 13, 2019 Last day to hear bills in house of origin
• Sunday, April 28, 2019 First 2019 session ends
32