F–3 STANDING COMMITTEES Finance and Asset Management Committee

F–3/203-16 3/10/16

UW One Capital Plan INFORMATION ITEM This item is being presented for information only. BACKGROUND This is a standing agenda item. Please note that changes to the prioritized 6-year capital plan (attachment 3) from last month are highlighted in yellow. Attachments 1. Capital Planning at the University of Washington 2. One Capital Plan Process 3. Prioritized 6-Year Capital Plan 4. Major Capital Assets Summary Scorecard (As of January 31, 2016) 5. Semi-Annual Internal Lending Program Report

Capital Planning at the University of Washington

This document is intended to explain the process by which the University and Board of Regents authorizes 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 1F–3.1/203-16 3/10/16

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Planning Cycle

Funding Targets by Source

The Prioritized One Capital Plan captures three bienniums of planned projects with overall targets established for each fund source. The Plan will be re-evaluated on a two-year cycle corresponding with the State Capital Budget Request and modified depending on the State's actions and newly emerging priorities.

Planning targets are set by examining historical funding trends for both total value and the intended use to ensure the feasability of each planning target. The Capital Plan can be adjusted based on these targets. Note funding shown below is based on the approval date by the Regents.

One Capital Plan Process

Call for Project Proposals

January

(even years)

Analyze & Prioritize

May/June BOR review

(even years)

State Capital Budget Request

September

(even years)

6 Year Prioritized Plan / BY Budget

June 

(odd years)

Capital Plan serves as implementation plan into 

next cycle

Legislative consideration and approval modifies approach to capital plan

Requests are prepared working with CPD, utilizing 

planning metrics

Budget request vetted with Senior Administration and 

Board of Regents

ATTACHMENT 2F–3.2/203-16 3/10/16

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Prior Funding in $ Millions GSF Total Cost Fund'g State Debt Donor Local

Husky Experience

UW Bothell - Phase 4 - Academic STEM 105,000 60 1 59 - - -

Health Sciences Education - Interprofessional Education (IPE)/Nursing - T Wing Renovation/Addition 282,400 203 1 182 - 20 -

Foster School of Business - MacKenzie Hall Replacement 90,000 65 - - 65 -

Evans School - Parrington Hall Remodel 59,000 20 10 - 10 -

College of Arts & Sciences - Lewis Hall Renovation 23,220 16 16 - - -

College of the Environment - Anderson Hall Renovation 35,900 23 23 - - -

College of Engineering - Classroom & Research Building Renovation 26,800 13 13 - - -

School of Dentistry - Dental School Building 163,500 156 31 31 94 -

Student Housing - North Campus - Phase 4b 293,000 140 - 105 - 35

UW Bothell - Student Housing & Dining Phase 2 140,000 50 - 40 - 10

UW Tacoma - Student Housing Development 125,000 20 - 16 - 4

subtotals: 766$            2$              334$      192$      189$      49$       

Innovation Imperative

Center for Advanced Materials and Clean Energy Technologies 220,000 179 9 60 50 60 -

College of Arts & Sciences - Kincaid Hall Renovation 85,000 49 49 - - -

School of Medicine - South Lake Union Phase 3.3 262,000 197 - 182 - 15

School of Medicine - Core Research Facilities 11,000 12 - - - 12

School of Medicine - South Lake Union Rosen Remodel 60,375 6 - - - 6

subtotals: 443$            9$              109$      232$      60$        33$       

Community Engagement

Burke Museum 110,000 83 30 24 - 20 9

UW Medicine - Northwest Hospital Expansion 150,000 85 - 85 - -

UW Tacoma - Soil Remediation - 6 6 - - -

University District Station - Transit Oriented Development 200,000 100 - 100 - -

subtotals: 274$            30$            30$        185$      20$        9$         

Transforming Administration

Capital Repair - Preservation - 90 90 - -

Minor Capital Repair - Preservation and Program Renewal - 207 - - - 207

Enterprise Information Systems - 100 - 50 - 50

UW Medicine - Information Technology Core Applications and Infrastructur - 74 - - - 74

subtotals: 471$            ‐$               90$        50$        ‐$           331$     

Totals: 1,953$ 563$ 659$ 269$ 422$

Targets: 1,850$ 300$ 650$ 450$ 450$

2017-2023 Totals

Prioritized 6-Year Capital Plan

ATTACHMENT 3F–3.3/203-16 3/10/16

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Major Capital Assets Summary Scorecard (As of January 31, 2016)

BoR 

Approved

Current 

Forecast 1Cost to 

Date

Appr'vd Forecast 2 A/E Contractor % 

Utilization3  Award in 

$M

123.5$        Const. Research 83,000        123.5$        134.0$        49.8$          4/17 4/17 ZGF Skanska 1.7% 2.1$          

6.1               Design Infrastruct. n/a 6.1               6.2               1.2               3/16 6/16 KPFF CA Carey Corp 10.1% 0.9            

104.6          Planning Research 130,000      9.0               104.6          1.4               ‐ 11/18 LMN Mortenson N/R N/R

56.9             Design Classroom 86,400        52.9             52.9             18.3             12/16 8/16 THA BNBuilders 17.0% 2.6            

28.5             Design Research n/a 37.0             36.3             5.2               12/16 8/17 HDR Hoffman N/R N/R

164.8          Design Classroom 189,000      164.8          164.8          7.1               7/18 7/18 Perkins+Will Skanska N/R N/R

53.0             Const. Research 78,000        81.9             79.5             20.9             7/16 4/17 ZGF Hoffman 11.0% 1.4            

75.0             Design Other 110,000      7.5               75.0             5.8               8/17 4/18 Olson Kundig Skanska N/R N/R

240.0          Design Housing n/a 7.2               240.0          6.4               6/18 6/18 Kieran Timberl WG Clark N/R N/R

19.5             Const. Other 29,000        19.5             19.5             13.7             6/16 6/16 Miller Hull BNBuilders 13.7% 2.5            

28.0             Design Student 43,600        28.0             27.5             2.3               9/17 2 Miller Hull Mortenson N/R N/R

186.3          Const. Medical 244,000      186.3          186.8          96.4             4/17 10/17 NBBJ Mortenson 27.6% 20.6          

30.5             Const. Infrastruct. 17,000        36.2             38.1             8.3               1/17 1/17 Miller Hull Mortenson 5.5% 0.4            

Other Capital Projects 30.6$       

HR Payroll Modernization 68.1$          IT n/a n/a 70.0$          68.1$          35.5$          2/14 6/16

Totals 1,185$        1,010,000  830$           1,233$        272$          

Legend1. Forecast to Budget Variance: On Budget = Green; 1-10% Over Budget = Yellow; >10% Over Budget = Red2. Schedule Variance: On Schedule = Green; Within One Month = Yellow; > One Month = Red3.N/R: Project has no information to report at this time

Business EquitySelections

Denny Hall Renovation

Fluke Hall Renovation

Life Sciences Building

UWMC Expansion Phase II

NanoEngineering and Sciences Building

New Burke Museum

North Campus Housing Replacement

Police Department Facility

Tacoma Urban Solutions Center

Major Construction Projects

Cost($M)Target 

Cost Est. 

($M)

Scheduled Use DatePhase Gross

Square

Footage

Bldg. 

Type

West Campus Utility Plant

Animal Research and Care Facility

Project

Burke‐Gilman Trail Phase 1 & Phase 2 Design

Computer Science and Engineering Exp.

ATTACHMENT 4F–3.4/203-16 3/10/16

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$2,308

231(123)

(2) Allocation Remaining at 12/31/15 $108

(1) Includes $53M in RSA.

Loan Balance

In Compliance(1)

Housing and Food Services $542 Yes

UW Medicine 383 Yes

Central Administration 312 N/A

Intercollegiate Athletics (2)254 No

Student Life 147 Yes

UW Bothell 31 Yes

UW Tacoma 18 Yes

Transporation Services 13 N/A

School of Dentistry (2)11 No

Global Health 1 Yes

$1,712 (3)

Based on projects approved by Board of Regents as of 12/31/15. Project funding needs total $206M, excluding $220M approved for North Campus Housing Phase IV(a) on 1/14/16.

(1) Based on 6/30/15 audited financials where available.

Net Project Funding

Department

Invested Funds Pool Balance

$254

(2)

(3) Does not reflect total University outstanding debt.

(2) Business Improvement Plans for the School of Dentistry and Intercollegiate Athletics will be presented in FY16.

Investment Income 0

Total at 12/31/15

ILP Expenses

Balance at 12/31/15

ILP Borrowers ILP Projected Funding Needs

ILP Committed Capital Reserves(1) Capital Assets Pool (CAP)(in millions) (in millions)

Balances at 6/30/15

Internal Debt Service

External Debt Service

CAP may be invested in University capital projects with maturities up to thirty years. The CAP target allocation is 10% of the Invested Funds Pool, with range of 0-15% to allow for market fluctuations. CAP funds are borrowed though the ILP.

$205

68

50

(67)

(in millions) (in millions)

Target Allocation (10%)Utilized to Date (53%)

(2) Excluded $25M in external debt service payments made 1/4/16 and included $100M in proceeds associated with prior debt issuances.

ILP Rate 4.75%

As of 12/31/15

$95

$109

$2

$0

$20

$40

$60

$80

$100

$120

FY17 FY18 FY19Debt Funded

Semi‐Annual Internal Lending Program Report

ATTACHMENT 5F–3.5/203-16 3/10/16

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