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Capital Budget Hearing State University of New York

Dr. Nancy L. Zimpher, Chancellor

October 22, 2009

State University Construction Fund

State University of New York

2

SUNY Capital Program Summary # of

Bldgs Sq.

Foot(1) Avg

Age(2) 2008-13

Funding(1) Funded By Projects Managed By

Educational Facilities 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

Totals 2,798 97.3 42.1 $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.



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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

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



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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 Poor20%

GSF Rated Fair28%

GSF Rated Good42%

GSF Rated Excellent10%

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

Approx. 55 Million Gross Square Feet (GSF)




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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




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$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

Star

t 200

7

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Year

Dol

lars

(Mill

ions

)

InvestmentBacklog


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



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High Tech Incubator - Fredonia

Science Engineering Technologies - Oswego

New Technology Building – Buffalo College

New Engineering Building – Buffalo University



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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 2012/132008/09 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

Dol

lars

, in

mill

ions

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) Projects Active or Completed Since 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

New Constr/Acquisition

Data/Telecom

RoofsADA/Fire Safety

Site/Infrastructure

Interior Rehab

Exterior Renovations

Bldg Systems

# 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




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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

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 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

0100200300400500600700

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 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

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 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 over $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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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 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)

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



30

63.7

70.6

83.7

0 25 50 75 100Percent

2007

2008

2009 (YTD)

Fisc

al Y

ear

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

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