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
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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The Minnesota State Colleges and Universities system is an Equal Opportunity employer and educator.
Minnesota State College Student Association – Business MeetingMesabi Range Community and Technical College – VirginiaSeptember 14, 2013
Capital Planning UpdateBrian YolitzAssociate Vice Chancellor – Facilities
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Purpose Overview of the FY2014 capital bonding
request System facility resources and planning Be available to answer any questions in
the facilities portfolio
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
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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
Prior approval and Institutional priority – +10 Points for each Executed by representatives from across the system16
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
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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
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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
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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
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
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FY2014Capital Budget Request
2014 2016 New Renovate RenewalDemo/
Mothball
1 HEAPR SystemwideSystem
wideHigher Education Asset Preservation and Replacement
D/C $130,576,000
2 Metropolitan State University St. Paul MetroScience Education Center new construction
C $35,865,000 65,712 3,500
3 Bemidji State University BemidjiNorth 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 DuluthNorth East
Allied Health ('86 Wing) Revitalization renovation
D/C $5,266,000 36,500 4,500
5Minneapolis Community & Technical College
Minneapolis MetroWorkforce Program Phase 2 renovation
D/C $3,600,000 90,470
6Saint Paul College (Initiatives)
St. Paul MetroInitiatives: Culinary Arts Lab, and Machine Tool renovation
D/C $1,500,000 16,773 10,777
7Minnesota State College - Southeast Technical (Initiatives)
Red Wing, Winona
South East
Initiatives: Welding/Indust. Labs, Science Labs, and Multipurpose Classrooms renovation
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
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HEAPR Highlights
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Roof Repairs/ Replacement
Heating, Ventilation, & Air Conditioning
Exterior - Walls, Windows & Doors
Building Interior PlumbingElectricalLife 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
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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, Southeast 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
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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
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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
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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
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Confirmed Legislative ToursHouse 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)
Questions and Discussion
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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,