F–5 STANDING COMMITTEES Finance and Asset Management Committee

F–5/201-18 1/11/18

Approve Five-Year Capital Budget RECOMMENDED ACTION It is the recommendation of the administration and the Finance and Asset Management Committee that the Board of Regents approve the Five-Year Capital Budget as presented. BACKGROUND In November 2017, the Board participated in an extensive review of the University’s overall debt capacity and its implications on the capital budget. Based on that review, the administration recommended borrowing for capital projects of roughly $110M per year for the next five years, and presented the resulting Five-Year Capital Budget. We now request approval of the same Five-Year Capital Budget. Projects are listed in order of their priority score using the multi-criteria analysis presented to the Board in May 2017. Each fund source continues to be evaluated for both the overall capacity and the applicability to each project, so adjustments can be made as conditions change. All capital projects listed in the Five-Year Capital Budget will be approved by the Board individually at two separate stages. Capital Construction Projects:

• Stage 1 authorizes the selection of the delivery team and establishes a pre-construction budget.

• Stage 2 authorizes the final budget and funding plan. IT Projects:

• Stage 1 authorizes the selection of the vendor and establishes a project implementation budget

• Stage 2 authorizes the final budget and funding plan At this point, we anticipate Board action in 2018 on eleven projects listed in the Capital Plan. These projects are shown with asterisks on Attachment 1.

STANDING COMMITTEES Finance and Asset Management Committee Approve Five-Year Capital Budget (continued p. 2)

F–5/201-18 1/11/18

FUTURE ACTIONS Individual capital projects must be approved at Stage 1 and Stage 2. Attachments 1. Five-Year Capital Budget 2018-2023 2. Capital Project Approval Process

Project Information

Funding in $ Millions Debt State Local Donor Other Total GSF New GSF O&M

Current Approved Projects

1 UW Medical Center Expansion - Phase 2 198$ 186 136 - 62 - - 244,000 - -$

2 UW Medical Center - Emergency Department Expansion 15$ - - - 15 - - 16,500 - -$

3 South Lake Union 3.2 145$ 143 143 - 2 - - 181,382 181,382 3.6$

4 Life Sciences Building 171.5$ 164.8 121 - 44.5 6 - 211,700 211,700 3.6$

5 New Burke Museum 79$ 79 - 54 7.5 17.5 - 110,000 42,000 1.1$

6 Computer Science & Engineering Building 2 105.5$ 105.5 - 33 8.5 64 - 135,000 135,000 1.6$

7 North Campus Housing - Phase 4A 253$ 240 237 - 16 - - 550,000 380,000 3.6$

8 North Campus Housing - Phase 4B 86$ 140 - - 86 - - 105,500 (100,000) -$

* 9 Population Health Facility 230$ 230 - 15 5 210 - 300,000 300,000 3.7$

Totals: 1,283$ 1,288$ 637$ 102$ 247$ 298$ -$ 1,854,082 1,150,082 17$

Remaining funds req'd: 631$ 220$ 39$ 143$ 229$

Planned Capital Projects

1 Minor Capital Repair (n.i.c. preventative maintenance) 133$ 208 - 93 40 - - - - -$

2 UW Medicine Minor Projects 250$ - - - 250 - - - - -$

3 T-Wing Renovation - Phase 2 6$ 2 - 6 - - - 150,000 - -$

4 College of Engineering - Interdisciplinary Education and Research 100$ 150 - 50 - 50 - 192,000 66,000 1.1$

* 5 Population Health Education Facility (T-Wing addition) 94$ 94 - 60 10 23 - 120,000 120,000 1.5$

* 6 Center for Advanced Materials and Clean Energy Technologies 150$ 168 - 20 - - 130 230,000 55,000 0.9$

7 Miller Hall Renovation 4$ 4 - 4 - - - 72,500 - -$

8 Anderson Hall Renovation for College of Environment 22$ 3 - 22 - - - 33,500 - -$

* 9 UW Bothell - Academic STEM Building 75$ 75 - 54 20 - - 105,000 105,000 1.3$

10 West Campus Park / Replacement Space for College of Env. 95$ 25 - - - - 95 100,000 - -$

* 11 Parrington Hall Renovations for Evans School 20$ 20 - 10 - 10 - 59,000 - -$

12 Renovations for the iSchool 8$ 15 2 - 6 - - 40,000 - -$

13 UW Library Storage / Repurpose on-campus space 20$ 15 20 - - - - 35,000 13,000 0.2$

* 14 Kincaid Hall Renovation for Psychology 30$ 15 30 - - - - 85,000 - -$

* 15 Foster School of Business - New Building 65$ 65 - - - 65 - 90,000 45,000 0.5$

* 16 University District Station Development 170$ 150 - - - - 170 240,000 (35,000) -$

17 UW Tacoma - Soil Remediation 6$ 7 - 6 - - - - - -$

18 UW Tacoma - New Academic Building 35$ 35 - 30 - 5 - 60,000 60,000 0.7$

* 19 Finance Transformation 195$ 100 117 - 78 - - - - -$

20 UW Bothell - Parking 30$ 25 - - - - 30 - - -$

21 Seismic Improvements (6-year plan) 45$ 75 - 45 - - - 200,000 - -$

* 22 UW Medicine - Electronic Health Records 180$ 74 128 - 52 - - - - -$

23 Intellectual House Phase 2 8$ 8 - - - 8 - 8,200 8,200 0.1$

24 Burke Gilman Trail Improvements - Phase 3 16$ 16 - - - - 16 - - -$

* 25 UW Medicine - Child Birth Center 25$ - 25 - - - - - - -$

26 Waterfront Improvements in South Campus & the Cut 10$ 10 - - - 10 - - - -$

Projects Deferred 912

Totals: 1,792$ 2,849 322$ 400$ 456$ 171$ 441$ 1,820,200 437,200 6.4$

Targets: $1,830 $330 $400 $450 $200 $450

* Anticipated Board action in FY18

Note: totals may not sum due to rounding

Project

Budget

Previous

Budget

Projected Funding

Five-Year Capital Budget 2018-2023

ATTACHMENT 1F-5.1/201-18 1/11/18

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Capital Project Approval Process

This document is intended to explain the process by which the University and Board of Regents authorize the physical development of the university.

Process goals: Ensure controls are in place → establish and standardize processes Ensure capital plan is in place → establish and update One Capital Plan Manage & implement the plan → prioritize projects and identify funding or financing

→ establish project budget and manage to the plan

ATTACHMENT 2F-5.2/201-18 1/11/18

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