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MnSCU Bonding Request
 

MnSCU Bonding Request

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Brian Yolitz, MnSCU Associate Vice Chancellor of Facilities

Brian Yolitz, MnSCU Associate Vice Chancellor of Facilities
This presentation will focus on and answer questions about the MnSCU system’s legislative capital bonding request.

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  • Note that more than half of our campuses have greater than 50% of their space that is older than 30 years
  • Board guidelines for 2014 are straight forward…
  • HEAPR has been the Board's #1 priority…it is consistent with Board Guideline to “take care of what we have.’It’s used for taking care of our buildings and systems…code compliance, energy improvementsOur strategy is to Keep Up with anticipated renewal (5 years - $414M) needs and Catch Up by reducing the deferred maintenance backlog ($705M) by 50% over 10 years.Our current FCI – facilities condition index (ratio of backlog to replacement value) for all academic space is .113 which is slightly up for prior years, but in the ‘better than’ camp when compared to national peers.
  • The recommended capital program for 2014 seeks $227.7 million in state general obligation bonding funds to be coupled with $58.8 million in system financing to execute a total capital program of $286.5 million.The program includes; - $130.6 million for Higher Education Asset Preservation and Replacement or HEAPR and demolition of/relocation from obsolete space…above and beyond what is embedded in line-item projects - $155.9 million for 24 priority line-item projects Within the 24 priority line-item projects:8 have been funded for design or advanced work in prior years ($112M of the $155.9M – 70%)8 have been to the legislature 2 times ($27M – 17%) 5 represent smaller projects formerly bundled as system-wide initiatives, now bundled at intuitional priorities ($5.9M) Just 3 major projects are ‘new’ 2 decoupled design and construction from original request ($1.9M)1 stand alone design and construction project ($7.9M)If all projects were fully funded, there would be round $59 million in ‘tails’ for future bondingEqually important is what is not on the list:14 proposed projects reflecting $125.8 million in work2 seen before ($) (SMSU/A-R)5 represent substantial additional square footage (+175K sq. ft.)
  • The 24 line-item projects reflect work at 27 campuses - 6 – Metro - 21 – Outstate2 at: Saint Paul, Winona and Century
  • This chart is Table 1, from page 83 of your Board packet depicting the impact of the 24 recommended line-item capital projects and the demolition of obsolete space through the Demolition Initiative.The program impacts 1.5 million square feet of the system’s 21.7 million square feet of academic space…or roughly 7%. - One half of the space is renovation and renewal of existing space - Less than 20% of the program is dedicated to new space….(Metro – 65.7K, Mankato – 55.7K, M-State – 22.6K, Saint Paul – 36.7K, and Century – 25.6K)Demolition of obsolete space both through line-item projects and the Demolition Initiative makes this recommended program “Space Negative” by reducing the overall footprint by one-quarter of a million square feet of academic space. (Compared to net increase (actual) of 160K 2010-2012)
  • Thank you for your time and engagement here…I look forward to your questions and discussion.

MnSCU Bonding Request MnSCU Bonding Request Presentation Transcript

  • The Minnesota State Colleges and Universities system is an Equal Opportunity employer and educator. Minnesota State College Student Association – Business Meeting Mesabi Range Community and Technical College – Virginia September 14, 2013 Capital Planning Update Brian Yolitz Associate Vice Chancellor – Facilities
  • Purpose  Overview of the FY2014 capital bonding request  System facility resources and planning  Be available to answer any questions in the facilities portfolio 2
  • Overview  Background  System Facilities Infrastructure  Process overview  2014 capital bonding details  Process  Program  The way ahead  Opportunities for your involvement  Upcoming events  Questions and Discussion
  • Facility Space – Square Footage  27.8 million total gross square feet of facility space  5 Mall of Americas  Roughly 1/3 of the State of Minnesota’s facility space  54 Campuses:  Largest:  St Cloud State University  3.258 million sq ft  Smallest:  Riverland Community College – Owatonna  27,600 sq ft 4 21.687 4.843 1.025 0.1120.167 Academic Revenue Fund Revenue Fund - Ramps Mothballed Others Gross Square Footage (Millions)
  • Facility Space – By Campus 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 Alexandria AnokaTechnical Anoka-Ramsey-Cambridge Anoka-Ramsey-CoonRapids BemidjiState NorthwestTechnicalCollege* CentralLakes-Brainerd CentralLakes-Staples CenturyCollege DakotaCounty FondduLac HennepinTechnical-BrooklynPark HennepinTechnical-EdenPrairie InverHills LakeSuperior MCTC MetropolitanState MNStateSoutheastTechnical-RedWing MNStateSoutheastTechnical-Winona MNWest-Canby MNWest-GraniteFalls MNWest-Jackson MNWest-Pipestone MNWest-Worthington M-State-DetroitLakes M-State-FergusFalls M-State-Moorhead M-State-Wadena MSUMoorhead MSU,Mankato NHED-Hibbing NHED-Itasca NHED-MesabiRange-Eveleth NHED-MesabiRange-Virginia NHED-RainyRiver NHED-Vermilion Normandale NorthHennepin Northland-EastGrandForks Northland-ThiefRvierFalls PineTech RCTC Ridgewater-Hutchinson Ridgewater-Wilmar Riverland-AlbertLea Riverland-Austin Riverland-Owatonna SaintPaul SouthCentral-Faribault SouthCentral-NorthMankato SouthwestMinnesotaState St.CloudState St.CloudTechnical WinonaState Academic Revenue Fund Ramps Mothballed Other 5 GrossSquareFootage
  • 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 1880 1885 1890 1895 1900 1905 1910 1915 1920 1925 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 Gross Square Footage Constructed - 5 year Groupings 6 SquareFootage Source: FRRM report, Report 2.12, Academic Buildings The year represents new sq. ft. constructed that year and prior 4 years (i.e. 2010 = 2006, 2007, 2008, 2009, 2010) System Buildings Are Middle Aged
  • Source: FRRM 2012, Report 2.10 Middle Aged Buildings
  • Facility Space – Total Value  $7.3 billion replacement value  Total Backlog: $818M  Total 5-Year Renewal: $523M  Facility Condition Index:  Academic: .113  Revenue Fund: .086  Investment avenues  Capital bonding  HEAPR and Major Projects  Revenue Fund  Local campus funding 8 $6,232.28 $1,225.04 $72.46 $29.35 $38.86 Academic Revenue Fund Revenue Fund - Ramps Mothballed Others Replacement Value ($ Millions)
  • Total Capital Investment History $0 $50 $100 $150 $200 $250 $300 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Capital Projects HEAPR Revenue Fund 9 Millions
  • Operating Funds – R&R  Campuses, on average, have exceeded the recommended $1/sq. ft. annual R&R guideline for academic spaces:  5 year average: $29.5M  Potential annual funding: $30M 10 $27.5 $25.8 $28.8 $32.6 $33.0 $20 $25 $30 $35 2008 2009 2010 2011 2012 2013 Annual R&R Investment ($M) Annual R&R Investment ($M) Goal: $21.7M
  • Program Development Board Action Campus Tours Legislative Session Design and Construction 11 Bonding: • HEAPR and Projects 2012 2014 2016 Revenue Fund: 2011 2013 2015 2012 2012 2013 2013 2014 2014 2015 2015 2016 Basic Capital Timelines Fiscal Year: Calendar Year: Program Development Design and ConstructionBoard Action Bond Sale Program Development Design andBoard Action Bond Sale Design and Construction Program Development Board Action Legislative Session Design and ConstructionCampus Tours Today
  • 2014 CAPITAL BONDING DETAILS 12
  • 2014 Capital Budget Timeline 13 System Strategic Plan Facilities Master Plans Facilities Requirements • Maintain, Repair, Renovate, R enew, Demolish, New • HEAPR • Capital Bonding • Revenue Fund • Other Project Predesign • Basic Information • Scope • Cost • Schedule • Strategy • Contracting • Design and Construct • Design then Construct Board Capital Budget Guidelines • Each biennium • Program focus • Size • Criteria elements Capital Project Scoring • Cross functional teams • Campus and Staff • Admin and faculty • Project Predesign data • Board Guidelines • Individual Project Scores Chancellor Review and Analysis • Scoring team results • Presidential feedback • Program adjustments • Chancellor’s Recommendation: • Project list • Priority Governor Approval Legislative Action • House and Senate Capital Investment Committees • Conference Committee • Capital Bonding Bill Board Approval • Committee and Board Hearing • Testimony • Projects and Priority Approval • Initial Direction for the future planning MMB Review • Review and adjustment • Integration with other state agency requests • Support legislative visits • Governor Recommendation development June 2013 March – May 2013 January 2013 April 2012 July 2013 – January 2014 February – May 2014 May 2014
  • State Capital Budget Priorities State established budget priorities under Minn. Stat. 135A.034: (1) maintenance and preservation of existing facilities; (2) completion of projects that have received funding; (3) updating facilities to meet contemporary needs; (4) providing geographic distribution of capital projects; and (5) maximizing the use of non-state contributions. 14
  • Board Guidelines for 2014  Overarching Principles:  Take care of what we have  Make campus space more efficient and flexible  Mothball or demolish what is no longer viable in terms of conditions, operating costs, and programs, and  Only consider new square footage if the requirement meets the three priorities in the strategic framework  Strategic Framework:  Access to an extraordinary education  Partner of choice  Highest value/most affordable option 15
  • Capital Project Scoring  Scoring mechanism built on Board Guidelines  Access to an extraordinary education – 30%  Classroom redesign, 4-year program in metro, success of underrepresented students, college/university collaboration, academic program demand  Partner of choice – 20%  Emerging and sustained workforce and community needs, STEM programming, increased recruitment, retention, completion and transfer within system  High value/most affordable option – 50%  Reduced or sharing of costs, asset preservation/backlog reduction, space use, projects costs, campus R&R investment history, financial impacts, CFI, utility/resource conservation  Prior approval and Institutional priority – +10 Points for each  Executed by representatives from across the system 16
  • Higher Education Asset Preservation and Replacement (HEAPR)  Authorized in 135A.046 – Asset Preservation and Replacement  Number 1 priority to take care of what we have  Used for:  Preservation of building interiors and exteriors  Renewal  Code Compliance  Energy efficiency improvements  Keep Up / Catch Up Strategy:  Address anticipated needs  Reduce backlog by 50% over 10 years  Calls for $110 million in HEAPR investment per biennium 17
  • Keep Up / Catch Up  Keep Up: Address annual renewal needs :  $414M/5 = $83M annually  Catch Up: Reduce backlog by 50% in 10 years:  $705M X 50% / 10 = $35M annually  Total required asset preservation investment:  $118M annually  Available resources/funding streams:  Operating Funds – R&R  Capital Investment – Major renovation and repair projects  Capital Investment – HEAPR 18
  • Investment Needs  Available resources/funding streams:  Annual R&R:  Goal of $1/sq. ft. = $21.7M  5 year average: $29.5M  Assume: $25.5M  Major renovation and repair projects:  Assume $37.5M  Based on capital project funding:  $154.3M in major projects = roughly $77M annually  Assume 50% of projects HEAPR/HEAPR-like = $37.5M  HEAPR requirement:  $118M - $25.5M - $37.5M = $55M annually -> $110M over a biennium 19
  • Investment in Minnesota  Asset preservation:  110 HEAPR Projects at 47 campuses  53% improves building exterior integrity: roofs, walls, windows  40% building infrastructure systems: HVAC, electrical, plumbing  5% code and standard compliance  Improves existing educational and student support space  Renovates and renews 743,000 sq. ft. at 26 campuses  Select expansion to meet workforce needs  STEM, allied health, transportation, general studies and workforce skills  2 universities and 5 colleges  Replacement or elimination of obsolete space:  Within capital projects at 6 campuses  Demolition initiative at up to 16 campuses 20
  • Board Approved 2014 Capital Program  General Obligation funding: $227.7 million  System financing: $58.8 million  Total Capital Program: $286.5 million  Major elements:  $130.6 million – HEAPR and Demolition  $155.9 million – Capital project design and construction 21
  • 22 FY2014 Capital Budget Request 2014 2016 New Renovate Renewal Demo/ Mothball 1 HEAPR Systemwide System wide Higher Education Asset Preservation and Replacement D/C $130,576,000 2 Metropolitan State University St. Paul Metro Science Education Center new construction C $35,865,000 65,712 3,500 3 Bemidji State University Bemidji North West Memorial, Decker, and Sanford Hall renovation, demolition; design, post- demolition Hagg Sauer D/C $13,790,000 4,000 46,700 11,800 17,000 4 Lake Superior College Duluth North East Allied Health ('86 Wing) Revitalization renovation D/C $5,266,000 36,500 4,500 5 Minneapolis Community & Technical College Minneapolis Metro Workforce Program Phase 2 renovation D/C $3,600,000 90,470 6 Saint Paul College (Initiatives) St. Paul Metro Initiatives: Culinary Arts Lab, and Machine Tool renovation D/C $1,500,000 16,773 10,777 7 Minnesota State College - Southeast Technical (Initiatives) Red Wing, Winona South East Initiatives: Welding/Indust. Labs, Science Labs, and Multipurpose Classrooms renovation D/C $1,700,000 14,250 8 Central Lakes College Staples North West Campus Rightsizing renovation D/C $4,581,000 7,435 56,895 17,810 9 Minnesota State University, Mankato Mankato South East Clinical Science Building new construction, renovation C $25,818,000 $4,444,000 55,717 13,191 8,584 10 Minnesota State Community & Technical College Moorhead North West Transportation Center addition D/C $6,544,000 22,630 23,186 2,900 11 Rochester Community and Technical College Rochester South East Design, post-demolition Plaza, Memorial & Art buildings D $1,000,000 13,530 12 Minnesota West Community and Technical College (Initiatives) Jackson, Canby South West Initiatives: ITV Classrooms, Powerline Training Facility, and Geothermal System renovation D/C $3,487,000 10,900 44,090 18,000 13 Dakota County Technical College Rosemount Metro Transportation & Emerging Technologies lab renovation C $7,586,000 42,580 22,970 14 Century College (Initiatives) White Bear Lake Metro Initiatives: Digital Fabrication, Kitchen space, and Solar Panel System renovation D/C $2,020,000 6,000 1,700 15 Northland Community Technical College Thief River Falls North West Aviation Maintenance Facility Expansion demolition and addition C $5,864,000 20,410 5,790 21,680 16 (NHED) Northeast Higher Education District (Capital and Initiatives) Itasca, Hibbing, Rainy River, Vermilion North East Initiatives, Capital: Science Labs (3), Art Classroom, Biomass renovate; Rightsizing /Demolition D/C $3,344,000 $8,600,000 20,000 19,371 8,500 46,805 17 Winona State University Winona South East Education Village, Phase I, renovation D/C $5,902,000 $18,697,000 1,000 18,816 18 Anoka Technical College (Initiatives) Anoka Metro Initiatives: Manufacturing Technology Hub, and Auto Tech Lab renovation D/C $1,500,000 42,025 19 Saint Paul College St. Paul Metro Health & Science Alliance Center addition D/C $14,482,000 36,770 3,248 8,000 20 Century College White Bear Lake Metro Classroom and Workforce Alignment addition D $1,000,000 $12,432,000 25,584 4,000 1,000 21 South Central College North Mankato South East STEM and Healthcare Workforce renovation D/C $7,467,000 19,765 71,125 22 St. Cloud State University St. Cloud Central Integrated Student Health and Academic Programs renovation D $865,000 $15,000,000 15,562 43,291 23 Minnesota State Community and Technical College (Initiatives) Fergus Falls, Wadena North West Initiatives: Campus Rightsizing, and Center for Student Success renovation D/C $1,385,000 21,832 24 Northland Community and Technical College (Initiative) East Grand Forks North West Initiative: Laboratory renovation D/C $749,000 754 4,450 25 Winona State University (Initiative) Winona South East Initiative: Psychology Lab - Phelps Hall renovation D/C $591,760 3,703 $286,482,760 $59,173,000 278,285 540,800 202,301 132,195 $130,576,000 Appeared on 2013 Capital Budget Bonding List $155,906,760 $51,968,920 Square Footage Previous Appropriation (2008-2012) Project Type Project CostDesign OR Construct First Time Submittal Project Type Legend FY2014 - 2019 Major, HEAPR, and Demolition GRAND TOTAL: Projects: HEAPR: user (MnSCU) Financing: Priority Institution Campus/ Location Region Project Title
  • 2014 Capital Budget Projects Locations
  • Program impact on space  Reflects impact of priority capital projects and demolition  Does not reflect HEAPR as these funds are facility system focused 24 Square Footage % of 2014 Program Change in Square Footage Renovation 540,800 34.7% 0 Renewal 202,301 13.0% 0 New Facilities 278,285 17.9% +278,285 Total Demolition 535,645 34.4% -535,645 Total Impact 1,557,031 100.0% -257,360
  • HEAPR Highlights  $110 Million request  47 campuses have projects on the HEAPR list  110 individual projects  Nearly 90% have an energy savings component  2-3% for future design  1.25-1.5% for storm water compliance 25
  • HEAPR Highlights 26 Roof Repairs/ Replacement Heating, Ventilati on, & Air Conditioning Exterior - Walls, Windows & Doors Building Interior Plumbing Electrical Life Safety Codes Fire Safety Site work Utility Infrastructure
  • Demolition Highlights  System-wide demolition/relocation of space – $20.6 million  Fiscal and facility sustainability  Eliminate backlog (demand for HEAPR) operating expenses  Target removal of obsolete space:  Mothballed  Chronically underutilized  Called out in campus facilities master plan  Demolish and mend campus facilities  Manage within HEAPR  May require legislative work to best incentivize program 27
  • Capital Projects  Programmatic Impact of $155.9 million investment  STEM: $48.0 million  Metropolitan State, NHED, Northland, South Central, and WSU  Allied Health: $45.5 million  Lake Superior, MSU, Mankato, and Saint Paul  Technical Programs: $38.4 million  Anoka, Central Lakes, Century, DCTC, MCTC, MnWest, MState, Northland, Southea st Technical, and Saint Paul  Business and Education: $21.7 million  Bemidji State, Century, RCTC, and Winona State  Student Support and Services: $2.3 million  MState and St Cloud State 28
  • Opportunities For Your Involvement  Today: Capital Bonding Advocacy Tours  Voice of the user – powerful influence  Thanks for the facilities you have  Needs for the future:  Future:  Master planning phase:  Vision, needs and desires  Funding strategies and priorities  Predesign and Design  Basic requirements  Scope, cost, and schedule  Delivery strategies 29
  • Campus Tours  Legislators and staff, MMB  Some visits are touring capital projects; others part of a broader visit  Some using campus as hearing location  Capital investment committees highlighted  Senate Capital Investment developing schedule 30
  • Committees/Entities Legislative Entities:  House Capital Investment  House Higher Education and Policy  Senate Capital Investment  Senate Higher Education and Workforce Development Executive Branch:  Minnesota Management and Budget to help establish Governor’s recommendation 31
  • Confirmed Legislative Tours House Capital Investment:  September 17 – Anoka Technical, Central Lakes (Brainerd)  September 18 – Bemidji State University  September 19 – Minnesota State Community and Technical College, Moorhead  September 24 – Century College, Lake Superior College  September 25 – Hibbing Community College  September 26 – Itasca Community College  October 8 – Winona State University, Rochester Community and Technical College  October 9 – MSU, Mankato  October 29 – Saint Paul College , Metropolitan State University Senate Capital Investment:  October 2 – Hibbing Community College  October 3 – Central Lakes College (Staples) 32
  • Questions and Discussion 33
  • 2015 Revenue Fund Basics  Odd-year cycles (2011, 2013, etc)  System issues bonds (not state)  Fee revenue is payment mechanism 2015 Projects  Early stages  $60 million projected  5 campuses (MSU Moorhead, MSU, Mankato, Century, Inver Hills, NHED - Vermilion) 34