2019-2020 Annual Consolidated Capital Projects Facilities ......May 10, 2019 · The University of...

2019-2020

Annual Consolidated Capital Projects

&

Facilities Report

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The University of Alabama in Huntsville Annual Consolidated Capital Projects and Facilities Report

Tab 1 Annual Capital Development Plan Tab 2 Five Year Facilities Development Plan Tab 3 Long Term Debt Report Tab 4 Deferred Maintenance & Facility Renewal Report

June 2019

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The University of Alabama in Huntsville Annual Capital Development Plan

October 2019 – September 2020

Capital Categories

Category Page Cost

• Educational and General* $ 5,000,000 • Real Estate $ 2,500,000 • Auxiliary $ 0 • Intercollegiate Athletics $ 0 • Campus Infrastructure $ 6,500,000 • Equipment $ 0 TOTAL $ 14,000,000

*Total does not include estimated capital outlay for Educational and General Project No. 2, which has not yet been determined.

Submitted June 2019

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Executive Summary

Annual Capital Development Plan FY 2020

The University of Alabama in Huntsville Educational and General Projects

No. Project Name Proposed

BOT Activity

Project Costs Facility Renewal Funding Source

1.

Roberts Hall 3rd & 4th Floors Renovation

Stage IV Submittal

$ 5,000,000 General Revenue Bonds

2.

Shelby Center Cleanup & Repair

Stages I-IV Submittals

TBD TBD*

3.

4.

5.

6.

Total Project Costs: $5,000,000*

*Total does not include estimated capital outlay for Educational and General Project No. 2, which has not yet been determined.

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FY 2020

Educational & General Project No. 1

Project Name: Roberts Hall 3rd & 4th Floors Renovation Estimated Capital Outlay: $5,000,000 Anticipated Capital Funding Source: General Revenue Bond Issue Projected Annual O&M Costs: No additional O&M costs

Project Description/Scope: After a renovation and addition at Morton Hall, the History Department will be relocated, vacating the third and fourth floors of the east wing of Roberts Hall. This project will renovate existing space into a more modern and efficient teaching space and administrative offices to directly address the needs of the College of Education. Project Impact: ◊ Relationships to Existing Programs:

The College of Education is presently housed in Roberts Hall and Wilson Hall. The renovated space in Roberts Hall will support the college’s growth, which has increased more quickly than anticipated.

◊ Enhancements to Campus Programs: UAH has implemented a long range plan to increase its enrollment. To improve the University’s visibility and make it a more desirable destination for top students, the University must maintain facilities that are comparable to or superior to its peer institutions. This Project will provide more modern and efficient space to accommodate the current and projected increase in enrollment.

◊ Relationships to Other Campus Priorities: Increased enrollment and student retention are two of the University’s top strategic goals. The University is committed to recruiting and retaining an outstanding and diverse student body of broad interests and of sufficient size to ensure a rewarding campus life experience. The project will provide more modern and efficient space to accommodate the current and projected increase in enrollment.

Previous Project Submittals/Approvals:

Information N/A Stage I September 15, 2017 Stage II November 3, 2017 Stage III February 9, 2018

Anticipated Project Submittals/Approvals during FY 2020: Stage IV Submittal

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FY 2020

Educational & General Project No. 2

Project Name: Shelby Center Cleanup & Repair Estimated Capital Outlay: TBD Anticipated Capital Funding Source: TBD Projected Annual O&M Costs: No additional O&M costs

Project Description/Scope: On February 28, 2019, an emergency affecting public health, safety, and convenience was declared for Shelby Center Water Intrusion and Remediation pursuant to the provisions of Section 39-2-2(e) Code of Alabama 1975. On February 24, 2019, water was discovered on the floor with the lower level of Shelby Center, flowing in at a considerable rate adjacent to exterior walls and out of the loading dock leveler. Water continued to flow and crews were engaged to pump water from the lower level continuously through March 10, 2019, when the flow of new water stopped. During this timeframe, the lower level was evacuated and users relocated. The University employed a geotechnical engineer to review the condition and was of the opinion that an underground aquifer was primarily responsible for the pressurized flow of water to the lower level and posed a potential threat of sink hole development. The lower level remains closed to students and faculty, but the remainder of the building is operational. The University has selected a qualified/experienced civil engineering firm, geotechnical and civil engineering firm, and general contractor to assist on restoration/rebuild options, space utilization changes, and the ultimate budget. In addition, the project will include lower level space utilization improvements such as epoxy flooring, extra drains, etc. Until this investigation is complete, preliminary project costs cannot be accurately determined. Project Impact: ◊ Relationships to Existing Programs:

Previously, the lower level housed the Physics Department, math labs, and one general classroom. The project will provide improved facilities for the Physics Department along with two general classrooms, a fish husbandry lab, a biological sciences computer room, and a math-tutoring lab.

◊ Enhancements to Campus Programs: UAH has implemented a long-range plan to increase its enrollment. To improve the University’s visibility and make it a more desirable destination for top students, the University must maintain facilities that are comparable to or superior to its peer institutions. This Project will replace damaged space with more modern and efficient space to accommodate the current and projected increase in enrollment.

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◊ Relationships to Other Campus Priorities: Increased enrollment and student retention are two of the University’s top strategic goals. The University is committed to recruiting and retaining an outstanding and diverse student body of broad interests and of sufficient size to ensure a rewarding campus life experience. The project will provide more modern and efficient space to accommodate the current and projected increase in enrollment.


N/A Anticipated Project Submittals/Approvals during FY 2020: Stage I-IV Submittals

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Executive Summary Annual Capital Development Plan

FY 2020

The University of Alabama in Huntsville Real Estate

No. Project Name Proposed BOT Activity

Project Costs

Facility Renewal

Funding Source

1.

Acquisition of property adjacent to Campus

Approval to acquire property

$ 2,500,000 University Funds

Total Project Costs: $2,500,000

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FY 2020

Real Estate Project No. 1

Project Name: Acquisition of Property Adjacent to Campus Estimated Capital Outlay: $2,500,000 Anticipated Capital Funding Source: University Funds

Project Description/Scope: The project will involve the acquisition of property primarily on the eastern edge of campus as it becomes available for long-range campus development purposes. Project Impact: ◊ Relationships to Existing Programs:

Expansion of the campus footprint will provide opportunity to grow all university programs, including adjacent campus housing.

◊ Enhancements to Campus Programs: The purchase of the property supports the 2016 Campus Master Plan as the property will provide for future expansion.

◊ Relationships to Other Campus Priorities: The purchase of the property supports the 2016 Campus Master Plan as the property will provide for future expansion.

Previous Project Submittals/Approvals: Annual Capital Development Plan FY 2011, FY 2012, FY 2013, FY 2014, FY 2015, FY 2016, FY 2017, FY 2018, 2019

Anticipated Project Submittals/Approvals during FY 2020: Property Acquisition

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Executive Summary Annual Capital Development Plan

FY 2020

The University of Alabama in Huntsville Campus Infrastructure

No. Project Name Proposed BOT Activity

Project Costs

Facility Renewal

Funding Source

1.

Greenway-Phase 4 Stages I-IV Submittals


2. Reroute Ben Graves & Loop Roads

Stages IV Submittals


Totals Project Costs: $6,500,000

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FY 2020

Campus Infrastructure 1

Project Name: Greenway, Phase 4

Estimated Capital Outlay: $2,500,000

Anticipated Capital Funding Source: University Funds Project Description/Scope: The proposed project is the fourth phase of an interconnecting pedestrian spline within the core of campus. This phase will connect to the walkways being terminated on the south end of the Conference Training Center parking area and progress northward to greenway produced by Morton Hall Renovation and Addition between Morton Hall and Frank Franz Hall. It is anticipated this segment of greenway will be constructed for activity, with inclusion of tables, arbors, benches, and other amenities for student use. Walkways will be constructed of scored concrete, stained concrete and pavers. Materials will match other construction on campus. Extensive planting of blooming, seasonal landscaping and trees will be included. Project Impact: ◊ Relationships to Existing Programs:

This phase of the Greenway supports the 2016 UAH Campus Master Plan and is the means of pedestrian travel on campus, allowing the decreased use of vehicular travel by faculty, staff, and students.

◊ Enhancements to Campus Programs: The expansion of the Greenway will enhance design continuity throughout campus and create natural gathering spaces which will serve to increase student activity on campus. It will connect the northern half of campus with the southern half, greatly augmenting student safety while supporting the 2016 Campus Master Plan.

◊ Relationships to Other Campus Priorities: With the growing student population and numerous campus visitors, this project will facilitate the increased safety of pedestrians while setting the framework for an improved campus and university image.


Information Annual Capital Development Plan FY 2015, FY 2016, FY 2017, FY 2018, FY 2019 Anticipated Project Submittals/Approvals during FY 2020: Stage I-IV Submittals

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FY 2020

Campus Infrastructure 2

Project Name: Reroute Ben Graves & Loop Roads

Estimated Capital Outlay: $4,000,000

Anticipated Capital Funding Source: University Funds Project Description/Scope: A section of Ben Graves Drive (starting on the north end of the parking lot for the Conference Training Center and Frank Franz Hall, ending near the east side of Roberts Hall) will be removed. A new portion of roadway (starting between Roberts Hall and Spragins Hall) will bend toward the east property boundary and toward the entrance to the University from University Drive. This new road will connect to the existing “loop” around campus near the University Drive entry with a round-about intersection. Project Impact: ◊ Relationships to Existing Programs:

Rerouting these roads supports the 2016 UAH Campus Master Plan and is a means of moving roadways to the perimeter of campus to enhance pedestrian safety.

◊ Enhancements to Campus Programs: The project will enhance design continuity throughout campus and result in a safer interior, augmenting student safety while supporting the 2016 Campus Master Plan.

◊ Relationships to Other Campus Priorities: With the growing student population and numerous campus visitors, this project will facilitate the increased safety of pedestrians while setting the framework for an improved campus and university image.


Information Annual Capital Development Plan FY 2014, FY 2015, FY 2016, FY 2017, FY 2018, 2019

Stage I September 21, 2018 Stage II November 9, 2018 Stage III February 9, 2019

Anticipated Project Submittals/Approvals during FY 2020: Stage IV Submittal

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The University of Alabama in Huntsville

Five-Year Facilities Development Plan October 2020 - September 2024

Capital Categories

• Educational and General $ 158,000,000 • Real Estate $ 5,000,000 • Auxiliary $ 88,500,000 • Intercollegiate Athletics $ 0 • Campus Infrastructure $ 2,500,000 • Equipment $ 0

TOTAL $ 254,000,000

Submitted June 2019

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Capital Category: Educational & General Short Range: may be submitted to Board for approval within the next two years to five years.

Project Name Estimated Total Project Cost

A. Conference Training Center Renovation (formerly known as Conference Training Center Repurpose) $ 8,000,000

B. Multi-Purpose Facility $ 50,000,000

C. Engineering/Technology Research Building $ 100,000,000

Total $ 158,000,000

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Capital Category: Real Estate Short Range: may be submitted to Board for approval within the next two to five years.


A. Acquisition of property near campus $ 5,000,000

Total $ 5,000,000

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Capital Category: Auxiliary

Short Range: may be submitted to Board for approval within the next two years to five years.


A. Fraternity/Sorority Houses (2) $ 4,500,000

B. Residence Hall at Executive Plaza (1 of 2) $ 42,000,000

C. Residence Hall at Executive Plaza (2 of 2) $ 42,000,000

Total $ 88,500,000

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Capital Category: Campus Infrastructure

Short Range: may be submitted to Board for approval within the next two years to five years.


A. Shelbie King Hall: replace mechanical & electrical systems $ 2,500,000

Total $ 2,500,000

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Long Term Debt Report 2018/2019

Submitted June 2019

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Key Financial Ratios 2015 2016 2017

2017Aa3

Median

2017Aa3

Mean 2018Performance

Operating Margin (%) -9.1 1.1 -0.1 8.0 -5.0 0.7Operating Cash Flow Margin (%) 0.6 9.8 8.5 11.4 11.8 9.4

Return on Net Assets (%) -5.5 2.2 14.7 4.4 5.9 -10.2Debt Position

Average Debt Service Coverage (x) 1.1 0.9 1.0 2.4 2.7 2.2Spendable Cash & Investments to Total Debt (x) 0.1 0.1 0.1 1.3 1.4 0.1

Total Debt to Cash Flow (x) 97.7 4.7 5.0 5.0 5.1 4.1Total Debt to Capitalization (%) 67.0 66.0 61.0 27.0 29.5 62.0

LiquiditySpendable Cash & Investments to Operations (x) 0.06 0.06 0.04 0.70 0.70 0.05

Annual Days Cash On Hand (days) 231.0 194.0 199.0 164.1 177.5 193.0Capital

Capital Spending Ratio (x) 1.5 1.6 1.9 1.5 1.8 1.5Average Age of Plant (years) 14.3 14.4 14.8 13.9 13.8 14.5

Capital Investment to Operations (%) 9.0 9.0 9.0 8.6 8.7 9.0

Moody's

UAH Ratio Analysis 2015-2018

UAH financials were disproportionally impacted in 2015 by the requirement to mark investments to market value at year end. The recorded loss in the investment portfolio was $5.6 million which was a $12.5 million decrease over 2014. The fluctuation in value was due primarily to unfavorable market conditions. In addition, GASB 68 for pension liabilities was implemented beginning FY 2015.

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Description/Purpose $ %FY 2018

Net Revenue2019 2020 2021 2022

Education & General 96,360$ 79% 7,900$ 7,910$ 7,758$ 7,711$

Housing 25,991 21% 4,678 1,724 1,737 1,715 1,642 Self-supporting subtotal 25,991$ 21% 4,678$ 1,724$ 1,737$ 1,715$ 1,642$

Total 122,351$ 4,678$ 9,624$ 9,647$ 9,473$ 9,353$

Principal Outstanding Debt Service

UAH Operating ReservesShort Term Liquidity Pool 5,925$ Long Term Reserve Pool 55,602

Total 61,527$

Operating Reserves to Total Debt 0.5x

UAH Analysis of Debt

Notes: This analysis shows the future debt service based on the existing debt outstanding. Net Revenue is Gross Revenues less associated Operating Expenses before Debt Service. FY2018 net revenue generated by the self-supporting activities is sufficient to cover the outstanding debt.

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Total Project Total Bond % BondCost Funded Funded

Charger Village II Project1 37,026,250$ 37,026,250$ 100% -$ 37,026,250$ -$ -$

Morton Hall Project1 30,500,000 30,500,000 100% - - 30,500,000 - Conference Training Center Repurposed 8,000,000 8,000,000 100% - - - 8,000,000 Roberts Hall 3rd & 4th Floor Renovation 5,000,000 5,000,000 100% - - - 5,000,000

Total 80,526,250$ 80,526,250$ 100% - 37,026,250$ 30,500,000$ 13,000,000$

1Estimated Debt Service Payment: Charger Village II 1,475,000$ 2,115,750$ Morton Hall 1,643,833 Total 1,475,000$ 3,759,583$

2No known future bond issue

Project Name 2017 2018 2019 Future2

UAH Anticipated Bond Funded Capital Projects

Note: Project costs and bond funding included are based on the current estimates. Any difference in costs and bond funding from the amounts originally approved by the Physical Properties Committee and Board of Trustees in various stages will be submitted to Physical Properties Committee and Board of Trustees in accordance with Board Rules.

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Deferred Maintenance & Facility Renewal Report October 2019 – September 2024

Submitted June 2019

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Submitted June 2019

2019-2020 Annual Consolidated Capital Projects Facilities ......May 10, 2019 · The University of...

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