Stanford s 2018/ /21 Capital Plan and 2018/19 Capital Budget are based on projections of the major

Transcription

1 CAPITAL PLAN AND CAPITAL BUDGET 67 CHAPTER 4 CAPITAL PLAN AND CAPITAL BUDGET Stanford s 2018/ /21 Capita Pan and 2018/19 Capita Budget are based on projections of the major capita projects that the university pans to pursue in support of its academic mission. The roing Capita Pan incudes projects that are in progress or are expected to commence during the next three years. The Capita Budget represents the anticipated capita expenditures in the first year of the three-year pan. Both the Capita Pan and the Capita Budget are subject to change based on funding avaiabiity, budget affordabiity, and university priorities. At over $4.1 biion, the Capita Pan refects one of the argest capita programs in Stanford s history. It demonstrates the significant investment Stanford continues to make in its faciities, driven by the academic priorities for teaching, research, and reated activities, described in Chapter 2, and the initiatives of the administrative and auxiiary units that support the academic mission, described in Chapter 3. It aso demonstrates Stanford s commitment to student and facuty housing, with 55% of the pan aocated to buiding, acquiring, or renovating new and existing housing inventory. Significant exampes of this commitment are the $1.2 biion Escondido Viage (EV) Graduate Residences, which wi increase the graduate student housing stock by 2,020 net new beds, and the $500 miion Housing Acquisition Initiative (HAI) for facuty and staff. With the 2017/18 project competions, Stanford wi have invested over $6 biion in its faciities, infrastructure, and commercia rea estate since Across the campus, aging faciities have been repaced with new and renovated buidings capabe of supporting cutting-edge science, engineering, medicine, and coaborative research, joined by new faciities for business, athetics, aw, and the arts. Off-campus commercia deveopment projects provide additiona income to the university. In addition to the many projects currenty under way and previousy forecasted, the Capita Pan now incudes the foowing new projects: a new Undergraduate Housing and Dining compex ($196 miion), the fina phase of the Stanford Auxiiary Library ($24.2 miion), tenant improvements at 1701 Page Mi Road ($24 miion), and interior and exterior improvements to a heritage house ($7 miion). The foowing nine significant projects make up 84% of Stanford s Capita Pan: the EV Graduate Residences ($1,160.6 miion), Stanford Redwood City Phase 1 ($568.8 miion), the Housing Acquisition Initiative ($500 miion), the Neuro/ChEM-H (Chemistry, Engineering & Medicine for Human Heath) Research Compex ($257 miion), Center for Academic Medicine 1 (CAM 1) ($222 miion), BioMedica Innovations Buiding 1 and Connective Eements (BMI 1) ($210 miion), a new Undergraduate Housing and Dining compex ($196 miion), University Terrace Facuty Homes ($180 miion), and Midde Paza at 500 E Camino Rea Residentia ($154.6 miion). The remaining 16% of the Capita Pan comprises 15 projects and 6 infrastructure programs. For a detaied isting of a Capita Pan projects and programs, see the tabes on pages The Capita Budget for 2018/19 is $1.2 biion and incudes anticipated expenditures with a principa focus on housing and Stanford Redwood City. The Capita Pan accounts for ong-term budget impacts on operations and maintenance (O&M), utiities, and debt service. These obigations are incuded in the university s ong-range budget panning. This chapter first provides an overview of the capita panning process, then describes current strategic initiatives, which gives context to the subsequent report on the 2018/ /21 Capita Pan and its reated constraints, and finay concudes with a discussion on the 2018/19 Capita Budget and its impact on 2018/19 operations.

2 68 CAPITAL PLAN AND CAPITAL BUDGET CAPITAL PLANNING OVERVIEW CAPITAL PLANNING AT STANFORD Stanford s Capita Pan is a three-year roing pan with commitments made for projects with fuy identified and approved funding. Cash fow expenditure forecasts for these projects extend beyond the three-year period, and budget impacts on O&M and debt service wi commence at project competion. The pan incudes forecasts of both cash fow and budget impacts by year, as we as the impacts of projects beyond the three-year period (see tabes on page 74). The Capita Pan is set in the context of a onger-term capita forecast. The detais of this forecast, particuary funding sources and schedues, are ess cear than those of the threeyear pan, as the needs and funding sources that may emerge over the ong-term horizon are difficut to anticipate. Pans tend to evove as some projects prove more feasibe than others based upon shifting funding reaities and academic priorities. This year s capita panning process incudes a new category of focused project studies, through which program priorities and associated scope, schedue, and funding strategies wi be evauated and proposed. The outcomes of these studies coud determine future capita projects that support the academic and research needs of the university. Schoos and units that have significant project studies identified incude the Graduate Schoo of Education, the Schoo of Engineering, the Graduate Schoo of Business, the Schoo of Earth, Energy and Environmenta Sciences, the Schoo of Humanities and Sciences, Stanford Medica Center, the Hoover Institution, the Dean of Research, and the Department of Athetics, Physica Education, and Recreation. Concurrenty, university eadership is in the process of a comprehensive ong-range panning (LRP) effort. The broad vision resuting from the LRP may incude innovations in research, teaching, campus ife, and community outreach that may infuence these studies and other faciity needs. In addition, the university is in the process of negotiating a new Genera Use Permit with Santa Cara County to obtain entitements to faciitate future initiatives to be panned and impemented. The outcomes of the various studies wi enabe university eadership to prioritize future capita projects based on program need, square footage aocation requests, avaiabiity of funding, and aignment with the LRP effort. STRATEGIC INITIATIVES The foowing university strategic initiatives are integra to this year s Capita Pan: n Stanford Redwood City n EV Graduate Residences n Genera Use Permit n Growth and transportation n Campus circuation and parking Stanford Redwood City Stanford Redwood City is under construction, with panned occupancy commencing in February Consistent with the strategic deveopment envisioned upon the 2005 acquisition of the Redwood City property, seect administrative staff wi reocate to this site in order to preserve core campus space for the university s highest academic priorities. Stanford Redwood City gives the university an opportunity to provide its administrative staff with an outstanding, sustainabe, and heathy workpace environment. This new campus wi comprise Cass A office buidings, conference and dining faciities, a fitness center with ap poo, and a chid care center. A 2.5-acre park, mutipe courtyards, and a greenway connecting the entire campus wi create an attractive setting. Chapter 1, page 14, provides more detais on this strategic project, incuding university budget impacts of the new campus. EV Graduate Residences Stanford s bod commitment to buid a 1.8-miion-squarefoot (sf) residentia compex with 2,434 new graduate beds (2,020 net of demoitions) addresses a critica need to provide additiona graduate student housing on campus in an undersuppied and escaating housing market. The new compex wi primariy house singe graduate students, athough units wi be avaiabe for coupes without chidren. The apartments wi be simiar to the premium studios, two-bedroom suites, and junior studio suites offered in the neighboring Kennedy Graduate Residences. The four new residence has wi each provide ounges, hudde rooms, aundry rooms, exercise areas, and music practice spaces. In addition to housing students, a primary objective of this project is to provide opportunities to buid a vibrant sense of community among the graduate students and to encourage

3 CAPITAL PLAN AND CAPITAL BUDGET 69 strong connections to the campus. The two-story market paviion, entry tower, and associated arcaded court wi face the campus and define an inviting gateway into Escondido Viage from the terminus of Serra Ma. These community gateway components, which wi incude a café/bar, a grand ounge, and a mini-market for onine shopping and pickup, wi aso provide a reaxed architectura scae that tempers the height of the residentia wings. The arcaded court and hardscape, as we as the more casua commons space, wi support programs that wi serve as the hub for graduate ife. The centra commons wi face and engage the existing EV greenway and incude a number of features to engage the community (outdoor seating for sociaizing and eating, event space, coffee cart, art, etc.). This project incudes two new underground parking structures (adding 750 net new parking spaces) to support the graduate students and community. Manzanita Garage, ocated across Campus Drive from the EV Graduate Residences, wi house 860 parking spaces, with passive and active recreation space above. The EV parking structure, to be constructed aong Serra Street, wi house 315 parking spaces, with additiona spaces above to accommodate Americans with Disabiities Act requirements, oading, and service. The construction of the EV Graduate Residences and parking garages is under way, with occupancy targeted for fa Genera Use Permit Stanford has submitted an appication to Santa Cara County for an updated Genera Use Permit to guide campus panning over the next two decades. This permit is known as the 2018 Genera Use Permit because approva is expected in Stanford has been operating under two key Santa Cara County entitement documents: a Community Pan and a 2000 Genera Use Permit. The Community Pan provides a set of rues and poicies to guide the university s and use panning over an extended period of time. The Genera Use Permit impements those poicies and incudes specific conditions to minimize the impacts of Stanford s deveopment. The Community Pan and 2000 Genera Use Permit were intended to provide Stanford with fexibiity in its and use within an agreed-upon framework, with accountabiity to the county, neighbors, and the campus communities. Stanford s appication for the 2018 Genera Use Permit incudes a deveopment request for miion sf of academic faciities and 3,150 housing units/student beds, with construction expected to be competed by This next Genera Use Permit wi hep Stanford address emerging teaching, research, and housing needs over this time period. Growth and Transportation Reduction of singe-occupancy-vehice trips to the campus and other Stanford ands is ikey the most difficut chaenge to overcome as the University grows. Though Stanford has a tremendous track record with its award-winning Transportation Demand Management (TDM) programs, it must do more, not ony for the core campus but aso for other Stanford ands as the university and the surrounding areas continue to grow. Informed by extensive studies conducted in consutation with mutipe transportation experts as we as an innovative transportation mode choice mode, Stanford has deveoped a ist of feasibe actions and initiatives to reduce trave by singe-occupancy vehices. The regiona services and infrastructure are at peak time capacity, and no siver buet exists to sove this regiona probem. Stanford wi continue to focus on TDM efforts for the Stanford popuation, working coaborativey with arge private empoyers, neighbors, oca agencies, and transportation speciaists to identify and impement incrementa programs that mitigate traffic impacts and improve the regiona network. Stanford wi aso continue recent efforts to support and faciitate deveopment of regiona soutions, such as the Catrain Business Pan and the US 101 Managed Lanes project, as we as oca soutions, such as the Peninsua Bikeway. The University is now engaged in a number of and use panning efforts focused on future growth. The studies incude strong emphases on major circuation patterns and transit system options as we as on identifying how and use choices can optimize transportation and TDM options. Campus Circuation and Parking As Stanford continues to expand its core campus footprint as we as increase its density, campus panners have identified aternatives for improving circuation, reducing congestion, and promoting safety. The measures that the university has prioritized wi have positive impacts on campus circuation and service, vehicuar traffic, and the safety of bicycists and pedestrians.

4 70 CAPITAL PLAN AND CAPITAL BUDGET East Campus Circuation Circuation and parking wi be reconfigured on the east campus to accommodate significant capita projects incuding the EV Graduate Residences, the Pubic Safety Buiding, and the Emergency Operations Center & Eectronic Communications Hub (EOC/ECH). The components of the work in this area incude the foowing: CAM 1, and the soon-to-be-competed Bass Bioogy Buiding. The components of this work incude the foowing: Serra Ma Extension To promote connections, improve pedestrian safety, and faciitate Marguerite shutte circuation, Serra Ma wi be extended to an improved intersection at Foundations Way and Campus Drive. Campus Drive/Serra Street Roundabout The roundabout wi repace two separate existing intersections, improve pedestrian crossings, and reconfigure the barres of Campus Drive with dedicated bike anes and a uniform andscaped median. Serra Ma Cosure The pan to cose Serra Ma from Gavez Street to Campus Drive for pedestrians, bikes, and shuttes requires the competion of enabing projects incuding reconfigured service areas and parking at Encina Ha, service improvements at Burnham Paviion, and a new drop-off at Schwab Graduate Residences. These projects are important because Serra Ma is the primary path for infrastructure improvements for the major capita projects on the east side of campus. Serra Street Reconfiguration Enhancements panned on Serra Street from Campus Drive to E Camino incude improving vehicuar anes, reconfiguring intersections and pedestrian crossings, upgrading bike anes, and adding transit and drop-off areas. Manzanita Garage This faciity wi buid on the best practices of the Wibur and Robe parking structures, with parking beow grade and a recreation fied above. The 860 new spaces wi support, in part, the needs of the EV Graduate Residences. EV Parking Structure This beow-grade faciity aong Serra Street wi incude 315 spaces, with additiona parking above. Together, the Manzanita and EV underground parking structures and surface parking wi provide 750 net new parking spaces. Bonair Siding Road To provide safe access to the new Pubic Safety Buiding and EOC/ECH, Bonair Siding Road wi be reconfigured to incude appropriate vehicuar anes, bike anes, sidewaks, and ighting. Via Puebo Extension To faciitate service, Via Puebo wi be extended from Via Ortega to Panama Street. North/South Axis Improvements to the North/ South Axis from Serra Ma to Roth Way wi provide a safe bike/pedestrian connector. New Parking Structure 827 new parking spaces (585 net new) wi be constructed beow the CAM 1 buiding. Roundabouts The roundabouts constructed at the intersections of Campus Drive/Escondido Road, Campus Drive/Bowdoin Street, Campus Drive/Santa Teresa Street, and Campus Drive/ Gavez Street are evidence of how vehicuar circuation, as we as bicyce and pedestrian safety, can be improved. In addition to the ongoing construction of the Campus Drive/ Serra Street and Gavez Street/Arboretum Road roundabouts, which are key components of the east campus improvements, the design of additiona roundabouts at Campus Drive/Quarry Road, Campus Drive/Pam Drive, Campus Drive/Mayfied Avenue, and Campus Drive/Roth Way wi be studied. THE CAPITAL PLAN, 2018/ /21 Stanford s academic campus, incuding the Schoo of Medicine (SoM) but excuding the hospitas, has neary 700 faciities providing over 18.4 miion sf of space, incuding approximatey 4.8 miion sf for student housing units and 2.4 miion sf for parking structures. The physica pant has a historica cost of $10.1 biion and an estimated repacement cost of $12.6 biion. West Campus Circuation Modifications to circuation on the west side of campus wi accommodate the future Neuro/ChEM-H Research Compex, The Capita Pan incudes a forecast of Stanford s annua programs to restore, maintain, and improve campus faciities for teaching, research, housing, and reated activities and

5 CAPITAL PLAN AND CAPITAL BUDGET 71 outines Stanford s needs for new faciities. The Capita Pan is compied, reviewed, and approved in a coordinated manner across the university. The pan carefuy baances institutiona needs for new and renovated faciities with the chaenging constraints of imited deveopment entitements, avaiabe funding, and budget affordabiity. Projects isted in the Capita Pan are those approved by the provost. In addition, the Board of Trustees oversees projects meeting the foowing criteria: n Projects with a tota cost of $25 miion and above, n New buiding construction (incuding facuty housing), and n Changes in and use. Projected expenditures under the 2018/ /21 Capita Pan, which incudes major construction projects in various stages of deveopment, numerous infrastructure projects and programs, and a housing acquisition program, tota $4.1 biion. The tabe beow provides a comparison of the current Capita Pan with the ast two. COMPARATIVE CAPITAL PLANS 2018/ / /17 Design/Construction 2, , ,213.5 Forecasted ,062.1 Infrastructure and HAI Tota 4, , ,084.6 This year s pan is $166.7 miion (4%) ower than ast year s. Projects no onger incuded in the current pan because they are being competed in 2017/18 or reevauated as studies more than offset projects added to the pan. PROJECTS IN DESIGN AND CONSTRUCTION Projects in design and construction tota $2.9 biion (71% of the pan). Construction of these projects is contingent upon fundraising of $90.5 miion (3%). This category comprises 15 projects, as shown in the tabe on page 80. The cost of projects in design and construction increased by $41 miion from 2017/18 as a resut of the advancement of projects from the forecasted category and budget increases, partiay offset by project competions. Projects moving from the forecasted to the design and construction stage incude Midde Paza at 500 E Camino Rea Residentia ($154.6 miion), the EOC/ECH ($20.1 miion), and the Cabrio- Doores Facuty Homes ($18.4 miion). Projects schedued to be competed in 2017/18 and thus excuded from the pan incude the Anne T. and Robert M. Bass Bioogy Research Buiding and associated projects ($152.2 miion), Denning House ($23.1 miion), Durand Renovation ($17.4 miion), and the Schwab Residentia Center Renovation ($13.1 miion). FORECASTED CONSTRUCTION PROJECTS Forecasted projects are those anticipated to receive Board of Trustees approva over the next three years. These projects tota $340.1 miion (8% of the pan) and are isted on page 81. Like those in design and construction, these projects are contingent upon funding. For this group, $77 miion (23%) remains to be fundraised, and $107.9 miion (32%) of funding has yet to be identified. Project costs within this category have decreased by $268.4 miion from 2017/18. A number of projects have moved into the design and construction category, as noted above. Others have been re-categorized as studies. This decrease is partiay offset by new projects added to this year s Capita Pan, incuding an Undergraduate Housing and Dining compex ($196 miion). INFRASTRUCTURE PROGRAMS Stanford s ongoing efforts to renew its infrastructure are refected in a budget of $340.4 miion (8% of the pan) and are isted on page 82. Costs for infrastructure programs have increased by $60.7 miion from ast year. Infrastructure programs incude the Investment in Pant (Panned Maintenance) Program, the Capita Utiities Program (CUP), the Stanford Infrastructure Program (SIP), redeveopment of networking and communications infrastructure in the east campus, upgrades to information technoogy and communications systems, and the Residentia & Dining Enterprises (R&DE) Major Renovation Pan. SIP projects are funded through construction project surcharges. The other projects are funded by centra funds, debt, and/or service center charge-out rates.

6 72 CAPITAL PLAN AND CAPITAL BUDGET Investment in Pant (Panned Maintenance) Program Annua Investment in Pant assets represent the maintenance funds panned to be invested to preserve and optimize Stanford s existing faciities and infrastructure (e.g., pathways, outdoor structures, and grounds). These projects are based on ife cyce panning, the key concept being that ife expectancies of faciity subsystems are known and, as a resut, maintenance schedues can be predicted. The three-year estimated program cost is $169.9 miion. Capita Utiities Program The $72.4 miion, three-year CUP pan wi improve the Centra Energy Faciity as we as the heating, cooing, eectric, domestic water, ake water, sewer, and energy systems. The CUP covers expansion of systems as required by campus growth ($41.6 miion) and renewa of systems that are near the end of their usefu ife ($30.8 miion). The expansion tota incudes $21.6 miion to fund utiities projects reated to the EV Graduate Residences. Stanford Infrastructure Program SIP consists of campus and transportation projects and programs for the improvement and genera support of the university s academic community, hospitas, and physica pant. SIP expenditures are expected to tota $57.4 miion over the next three years (excuding funding for repacement parking spaces). This year s pan incudes roundabouts, the Serra Ma cosure, and infrastructure projects reated to EV Graduate Residences, in addition to annua SIP program eements. East Campus Networking and Communications Redeveopment Significant portions of the university s networking and communications systems, incuding two ECHs, underground conduits and cabing, and networking equipment, wi have to be repaced, reocated, and/or substantiay upgraded to support the EV Graduate Residences and other panned deveopment in the east campus. The tota cost of $15 miion for this project is in addition to the annua upgrades to information technoogy and communications systems beow. Information Technoogy and Communications Systems The university s computing and communications systems provide comprehensive data, voice, and video services to the campus community. Over time, these systems must be improved and/or repaced to maintain a consistenty high eve of service. Additionay, new technoogies provide more efficient, faster, and/or more cost-effective soutions. Panned upgrades to these critica university systems tota $14.9 miion, incuding $2.4 miion to repace systems at two ECHs. R&DE Major Renovation Pan This R&DE program addresses heath and safety issues, seismic upgrades, code compiance, energy conservation and sustainabiity, and major programmatic improvements in the student housing and dining physica pant. Projects anticipated over the next three years tota $10.8 miion and incude phased instaation of new sprinkers and fire aarm systems in Escondido Viage high-rise and ow-rise housing. Competed projects wi be maintained through the Stanford Housing, Dining, and Hospitaity Asset Renewa Programs. HOUSING ACQUISITION INITIATIVE Estabished in 2014, the HAI refects the high priority that Stanford paces on its abiity to provide affordabe housing options for existing and prospective facuty and staff. In recognition of this critica need, the Board of Trustees approved $500 miion in funding this program. To date, the HAI has expended $246 miion in acquiring various for-sae and renta properties for facuty and staff. OTHER STANFORD ENTITIES In an effort to present a comprehensive view of universitypanned construction, the capita panning process has incuded Stanford s commercia rea estate investments, Stanford Heath Care (SHC), Lucie Packard Chidren s Hospita (LPCH), and SLAC Nationa Acceerator Laboratory. Athough the tabes at the end of this chapter do not incude these capita projects, brief descriptions of the rea estate, SHC, and LPCH capita programs foow. The SLAC capita programs are addressed in Chapter 2.

7 CAPITAL PLAN AND CAPITAL BUDGET 73 Rea Estate The Rea Estate department, part of Stanford s Land, Buidings & Rea Estate unit, is managing seven projects totaing $1.2 biion in various stages of panning and deveopment on Stanford ands. Three of these projects 3181 Porter Drive, 3406 Hiview, and the office component of Midde Paza wi provide the university with income. Academic projects managed by Rea Estate incude Stanford Redwood City Phase 1 and three housing deveopments: University Terrace Facuty Homes in Pao Ato, the residentia portion of Midde Paza in Meno Park, and the Cabrio-Doores residences in the facuty subdivision. University Terrace is providing 180 singe-famiy and condominium homes for facuty purchase, and facuty began moving into some of the homes in Cabrio-Doores and Midde Paza are schedued to break ground in ate 2018 and wi add 223 housing units. Stanford Heath Care and Lucie Packard Chidren s Hospita Stanford Medicine s Renewa Project incudes the deveopment of approximatey 1.3 miion sf of net new hospita, cinic, and medica office space on the main medica campus and the Hoover medica campus. The project received deveopment entitements from the City of Pao Ato in 2011, and significant project miestones have been achieved since that time. Major utiity upgrades to serve the new medica faciities have been competed aong Wech and Quarry Roads. A improvements on the Hoover medica campus are compete, incuding the renovation of the historic Hoover Paviion, the construction of a new 1,070-car parking structure, and the construction of a 92,000-sf Neuroscience Heath Center, which opened for patient care in January On the main medica campus, the $1.4 biion LPCH expansion is substantiay compete, and the faciity opened for patient care in December Competion of approximatey 75,000 sf of sheed space within the new LPCH buiding is anticipated in Construction of the new SHC paviions continues to progress, with interior finish work, buiding systems testing, and site work currenty under way. The SHC project is estimated to cost $2.1 biion, with competion anticipated in ate OVERALL SUMMARY A tabe summarizing the 2018/ /21 Capita Pan appears on the next page. The expenditures necessary to compete the three-year Capita Pan are anticipated to extend beyond 2020/21. To differentiate between the estimated costs of the pan and the forecasted spending to compete projects and programs, an additiona tabe (Capita Pan Cash Fows) forecasts the Capita Pan expenditure cash fow based on project and program schedues. O&M and debt service costs for each project wi impact the university s budget once construction is substantiay compete. Athough the Capita Pan Summary shows the fu budget impacts of a competed projects, it is important to note that these impacts aign with the project competion schedue and wi therefore be absorbed by the university budget over a period beyond the three-year pan. The Capita Pan Impact on Budget tabe forecasts these budget impacts by area of responsibiity (e.g., genera funds, formua schoos). The tabes at the end of this chapter provide a detaied ist of the projects incuded in the Capita Pan. The foowing sections address Capita Pan funding sources and uses, aong with resource constraints. Capita Pan Funding Sources As the pie chart on page 75 shows, Stanford s Capita Pan reies on severa funding sources, incuding current funds, gifts, and debt. Depending upon fundraising reaities and time frames, some projects wi prove more difficut than others to undertake. As a resut, it is possibe that projects in the Capita Pan wi have to be canceed, deayed, or scaed back in scope. For any projects reying on gifts to be raised, the Office of Deveopment has determined that fundraising pans are feasibe, athough the time frames for the receipt of gifts are subject to change. Resources to be identified are expected to come from a combination of schoo, department, and university reserves, as we as other sources.

8 74 CAPITAL PLAN AND CAPITAL BUDGET SUMMARY OF THREE-YEAR CAPITAL PLAN 2018/ /21 PROJECT FUNDING SOURCE GIFTS UNIVERSITY DEBT ANNUAL CONTINUING COSTS SERVICE ESTIMATED CAPITAL CENTER/ RESOURCES PROJECT BUDGET CURRENT IN HAND OR TO BE AUXILIARY ACADEMIC TO BE DEBT OPERATIONS & COST 2018/19 FUNDS 1 PLEDGED RAISED DEBT DEBT OTHER IDENTIFIED 2 SERVICE MAINTENANCE 3 Projects in Design & Construction 2, , Forecasted Projects Tota Construction Pan 3, , Infrastructure Programs and HAI Tota Three-Year Capita Pan 2018/ /21 4, , , , Incudes funds from university and schoo reserves and the GUP and SIP programs. 2 Anticipated funding for this category is through a combination of schoo, department and university reserves and other sources. 3 Operations & Maintenance incudes panned and reactive/preventive maintenance, zone management, utiities, contracts, grounds and outdoor ighting. CAPITAL PLAN CASH FLOWS 2017/18 & 2021/22 & PRIOR 2018/ / /21 THEREAFTER TOTAL Projects in Design & Construction 1, , ,931.7 Forecasted Projects Tota Construction Pan 1, , ,271.8 Infrastructure Programs and HAI Tota Three-Year Capita Pan 2018/ /21 1, , ,112.2 CAPITAL PLAN IMPACT ON BUDGET 2021/22 & 2019/ /21 THEREAFTER TOTAL Debt Service Genera Funds Formua and Other Schoos Auxiiary Other Tota Debt Service Operations and Maintenance Genera Funds 21.5 (1.9) Formua and Other Schoos Auxiiary Tota Operations and Maintenance Primariy the hospitas aong with Forsythe faciity, Facuty Staff Housing, and outside entities. 2 Incude credits due to demoitions.

9 CAPITAL PLAN AND CAPITAL BUDGET 75 Uses of Funds by Program Category and Project Type The midde chart beow divides Capita Pan activity into program categories. The argest is Housing, at 55% of the pan; Academic/Research and Academic Support are both at 18%. The bottom chart breaks out the same activity into project types, incuding New Construction, Renovations, and Infrastructure. THE CAPITAL PLAN 2018/ /21 $4.1 BILLION Academic Debt 17% Service Center/ Auxiiary Debt 31% Academic Support 18% Athetics/Student Activities 1% Sources of Funds Resources to be Identified 3% Other 4% Infrastructure 8% Current Funds 29% Gifts in Hand or Pedged 12% Gifts to be Raised 4% Uses of Funds by Program Category Infrastructure 8% Renovations 3% Academic/Research 18% Housing 55% Uses of Funds by Project Type New Construction 89% CAPITAL PLAN CONSTRAINTS Affordabiity The incrementa interna debt service expected at the competion of a projects commencing in the three-year pan period (competion dates range from 2017/18 to 2024/25) totas $96.3 miion annuay (excuding debt service for bridge financing the receipt of gifts and operating ease payments). Of this amount, $37 miion wi be serviced by genera funds, $19.9 miion by the formua schoos, and $39.4 miion by auxiiary and other operations. Service center debt is funded through rates paid by customers and has been aocated and incuded in the totas for genera funds, formua schoos, auxiiary operations, and other operations. The additiona O&M costs expected at the competion of a projects commencing in the three-year period tota $57.2 miion per year. Of this amount, $20.2 miion wi be serviced by genera funds, $18.1 miion by the formua schoos, and $18.9 miion by auxiiary and other operations. O&M and debt service on capita projects compete directy with other academic program initiatives for funding aocations. Debt Capacity As of May 1, 2018, $633 miion of bond proceeds are avaiabe to finance capita projects and facuty mortgages, incuding $6 miion of unexpended tax-exempt bond proceeds, and $627 miion of unexpended taxabe bond proceeds. Interim financing faciities totaing $500 miion of taxabe commercia paper, $300 miion of tax-exempt commercia paper, and $440 miion of undrawn ines of credit are aso avaiabe. In addition, during the remaining months of fisca year 2017/18 through the end of 2018/19, $91 miion in interna amortization proceeds on debt-funded projects wi become avaiabe to end to projects, and $136 miion in forecasted pedge and other payments wi retire debt issued to bridge finance the receipt of gifts and cost of construction. The three-year Capita Pan wi require a tota of $1.7 biion of debt for projects under construction or for projects to be approved in or before 2018/19: n $1,051 miion to compete projects aready approved or under construction; n $378 miion for projects to be approved in 2018/19; and n $253 miion to bridge finance the receipt of gift pedges for projects approved or under construction.

10 76 CAPITAL PLAN AND CAPITAL BUDGET Additiona debt may be required to finance the Facuty Staff Housing program. Fisca year to May 1, 2018, the portfoio of debt-subsidized mortgages had increased by $61.2 miion over the prior year to $586 miion. Projects identified in the three-year Capita Pan and to be approved after 2018/19 wi require an additiona $180 miion in debt. Debt for these projects has not been committed, and aocations wi be evauated in the context of debt capacity, affordabiity, viabiity of the funding pan, and GUP imitations. Entitements The main Stanford campus encompasses 8,180 acres in six jurisdictions. Of this tota, 4,017 acres, incuding most of the centra campus, are within unincorporated Santa Cara County. In December 2000, Santa Cara County approved a Genera Use Permit that aows Stanford to construct up to 2,035,000 additiona gross sf of academic-reated buidings on the core campus and up to 3,018 new housing units. An additiona 1,450 housing units were approved on March 24, 2016, pursuant to Genera Use Permit Condition F.7, raising the housing aocation to 4,468 housing units. This additiona approva accommodates the EV Graduate Residences. Conditions of approva incuded the foowing: n Creation of an academic growth boundary to imit the buidabe area to the core campus for a minimum of 25 years; n Approva of a sustainabe deveopment study (SDS) before new construction exceeds 1 miion gross sf (Santa Cara County approved the SDS in Apri 2009); and n Construction of 605 units of housing for each 500,000 gross sf of new academic buiding. Given the stringent requirements imposed by the Genera Use Permit and the increasingy difficut entitement environment, Stanford carefuy manages the aocation of new growth. Construction through 2016/17 accounted for 1.4 miion Genera Use Permit sf. The 2018/ /21 Capita Pan incudes 468,590 Genera Use Permit sf currenty in design and construction and due to demoitions, a credit of 64,900 Genera Use Permit sf in forecasted projects. With the competion of panned housing projects, Stanford wi have added 4,424 net new housing units since approva of the Genera Use Permit, exceeding the housing inkage requirement for the fu academic buid-out aowed by the Genera Use Permit. As discussed on page 69, Stanford has submitted an appication to Santa Cara County for an updated Genera Use Permit. This permit is expected to be approved in THE CAPITAL BUDGET, 2018/19 At $1.2 biion, the 2018/19 Capita Budget refects ony a portion of the costs of the projects in the Capita Pan, as most of them span more than one year. The foowing tabe highights the major capita projects for which expenditures under the 2018/19 Capita Budget wi be significant, as we as the percentage of each project expected to be compete by the end of 2018/19. The map on page 79 shows the ocations of these projects. MAJOR CAPITAL PROJECTS PERCENT OF COMPLETION 2018/19 1 ESTIMATED CAPITAL ESTIMATED PERCENT BUDGET PROJECT COMPLETE BY 2018/19 COST 2018/19 Escondido Viage Graduate Residences , % Stanford Redwood City Phase % Neuro/ChEM-H Research Compex % Center for Academic Medicine 1 (CAM 1) % BioMedica Innovations Buiding 1 and Connective Eements (BMI 1) % University Terrace Facuty Homes (180 units) % Midde Paza at 500 E Camino Rea - Residentia (215 units) % Pubic Safety Buiding % Encina Compex Upgrades % Arriaga Ha (formery Athetic Academic Advising and Rowing Buiding) % Emergency Operations Center & Eectronic Communications Hub % Cabrio-Doores Facuty Homes (8 units) % Tota , Board approved projects schedued to be in construction and with forecasted expenditures greater than $10 miion in 2018/19.

11 CAPITAL PLAN AND CAPITAL BUDGET 77 In 2018/19, LBRE anticipates substantia competion of six major projects with tota budgets of $1.1 biion and estimated 2018/19 expenditures of $296.1 miion. When competed, the new Stanford Redwood City campus wi provide administrative staff with an outstanding, sustainabe, and heathy workpace environment; the Neuro/ChEM-H Research Compex wi aow Stanford to recruit the best facuty from many discipines, bringing them together for frequent coaboration and interaction; University Terrace Facuty Homes wi provide 180 units to facuty for purchase; upgrades to Encina Compex wi improve its functionaity as a university hub for internationa studies; Arriaga Ha wi consoidate a number of Department of Athetics, Physica Education, and Recreation programs and aow optimization of vacated space; and a new essentia services buiding that meets seismic code requirements wi house both the EOC and a new ECH. SOURCES AND USES The Capita Budget is supported by mutipe funding sources: current funds (which incude the Capita Faciities Fund [CFF], funds from university and schoo reserves, and Genera Use Permit and SIP fees), gifts, and debt. The university typicay aocates CFF or debt funding to projects in the absence of other avaiabe funding. The timing of gift receipts, which may be bridge financed, wi affect the mix of project funding. The foowing pie charts show the uses of funds under the $1.2 biion Capita Budget by project type and program category. Expenditures of $560.6 miion (45%) are anticipated for Housing projects, incuding the EV Graduate Residences, University Terrace Facuty Homes, Midde Paza Residentia, and the HAI. Academic/Research projects, forecasted at $305 miion (25%), incude the Neuro/ChEM-H Research Compex, CAM 1, and BMI 1. Academic Support projects are projected at $223 miion (18%), primariy for Stanford Redwood City. Infrastructure expenditures of $137.6 miion (11%) incudes Investment in Pant (Panned Maintenance), the CUP, and SIP. Lasty, expenditures for Athetics/Student Activities projects are forecasted at $11.8 miion (1%). THE CAPITAL BUDGET 2018/19 $1.2 BILLION Uses of Funds by Project Type Infrastructure 11% Renovations 3% Academic Support 18% Athetics/ Student Activities 1% Infrastructure 11% New Construction 86% Uses of Funds by Program Category Academic/Research 25% Housing 45% Annua transfers to the CFF are projected to be $123.4 miion in 2017/18 and $113.7 miion in 2018/19, with corresponding commitments of $105.9 miion and $91.1 miion for these two years. The tabe on the next page ists projects anticipated to receive CFF funding in 2017/18 and 2018/19.

12 78 CAPITAL PLAN AND CAPITAL BUDGET CAPITAL FACILITIES FUND (CFF) Funding Sources and Committed Uses of Funding 2017/ /19 Sources of Funding Formua Units Schoo of Medicine Hoover Institution Non-Formua Tota Funding Committed Uses of Funding Center for Academic Medicine 1 (CAM 1) 16.2 Neuro/ChEM-H Research Compex Research Park Labs Tenant Improvements Porter Drive Tenant Improvements 2.0 Stanford Redwood City Phase Other Schoo of Medicine Projects 5.8 Hoover Institution Projects Formua Units Project Subtota Pubic Safety Buiding 18.3 Chidren s Center of the Stanford Community 9.2 Bioengineering Equipment 7.1 (2.0) 1 Emergency Operations Center 7.2 Stanford Redwood City Phase Genera Use Permit Encina Compex Upgrades 3.5 Lagunita Diversion Dam Remova 3.5 Schoo of Engineering Lab Renovation 2.5 Graduate Schoo of Education Buiding Renovations 2.0 Heritage House Improvements Stanford Institute for Chemica Bioogy Renovations 1.9 Searsvie Dam and Reservoir Stanford Auxiiary Library Sheving 1.0 Undergraduate Housing and Dining Study 1.0 Escondido Viage Graduate Residences 26.5 Demoitions of Herrin Lab/Herrin Ha/Mudd 9.4 Stanford Redwood City Operating Costs 6.0 Lorry Lokey Lab Buiding Renovations 5.7 Searsvie Water Repacement 2.6 Campus Conference Rooms Video Conferencing Improvements 2.5 Campus Camera Piot 2.2 Dinkespie Renovations 1.8 Dams Renewa 1.5 Bridges Renewa 1.0 Other Non-Formua Units Projects Tota Commitments Annua Funding ess Commitments Baance at Beginning of Year Uncommitted Baance Reimbursement from grant. CAPITAL BUDGET IMPACT ON 2018/19 OPERATIONS The 2018/19 Consoidated Budget for Operations incudes incrementa debt service and O&M expenses for projects to be competed in either 2017/18 or 2018/19, but operationa for ess than 12 months in the year competed. Capita projects requiring debt are funded from interna oans that are amortized over the asset ife in equa instaments (principa and interest). The budgeted interest rate (BIR) used to cacuate the interna debt service is a bended rate of interest expense on debt issued for capita projects, bond issuance, and administrative costs. The BIR wi remain at 4.25% for 2018/19. Consoidated interna debt service, incuding that borne by formua units, auxiiaries, service centers, Facuty Staff Housing, and rea estate investment, is projected to increase from $196.9 miion to $222.0 miion. Additiona debt service reated to the Rosewood Hote and the Sand Hi Road Office Compex is not incuded in the Consoidated Budget for Operations. In addition, annua ease payments for renta properties occupied by the SoM are projected to be $51.5 miion in 2018/19. The projected interna debt service funded by unrestricted funds, incuding genera funds and schoos designated funds, wi increase by $23.6 miion in 2018/19. The net change in debt service brings the tota annua interna debt service borne by unrestricted funds to $82.8 miion. In 2018/19, the university wi incur about $4.4 miion of incrementa O&M costs. Of this, $3.9 miion wi resut from competion of the Bass Bioogy Buiding. O&M costs for smaer capita projects and infrastructure programs account for the baance of the increase. CAPITAL PLAN PROJECT DETAIL In addition to a map identifying some key project ocations, the foowing pages provide tabes that ist capita projects in three categories: projects in design and construction, forecasted construction projects, and infrastructure projects and programs.

13 CAPITAL PLAN AND CAPITAL BUDGET 79 Midde Paza at 500 E Camino Rea - Residentia BioMedica Innovations Buiding 1 Neuro/ChEM-H Research Compex Environmenta Heath & Safety Faciity Expansion Center for Academic Medicine 1 Frost Amphitheater Improvements Arriaga Ha Encina Compex Upgrades Emergency Ops. Center & Eectronic Comm. Hub Escondido Viage Graduate Residences Cabrio-Doores Facuty Homes Pubic Safety Buiding Chidren ' s Center of the Stanford Community University Terrace Facuty Homes ± ,000 2,000 Feet Stanford Redwood City Phase 1

14 80 CAPITAL PLAN AND CAPITAL BUDGET 2018/ /21 CAPITAL PLAN PROJECTS IN DESIGN & CONSTRUCTION PROJECT FUNDING SOURCE GIFTS UNIVERSITY DEBT ANNUAL CONTINUING COSTS 3 FISCAL YEAR ESTIMATED CAPITAL IN HAND SERVICE CENTER/ RESOURCES SCHOOL/ PROJECT PROJECT BUDGET CURRENT OR TO BE AUXILIARY ACADEMIC TO BE DEBT OPERATIONS & DEPARTMENT SCHEDULE COST 2018/19 FUNDS 1 PLEDGED RAISED DEBT DEBT OTHER IDENTIFIED 2 SERVICE MAINTENANCE Escondido Viage Graduate Residences Residence Buidings (2,020 net new beds) R&DE , Underground Parking Structures (750 net new spaces) R&DE Stanford Redwood City Phase 1 PRES/PROV Neuro/ChEM-H Research Compex DOR Center for Academic Medicine 1 (CAM 1) 4 Buiding SOM Underground Parking Structures (585 net new spaces) SOM BioMedica Innovations Buiding 1 and Connective Eements (BMI 1) SOM University Terrace Facuty Homes (180 units) 5 LBRE Midde Paza at 500 E Camino Rea - Residentia (215 units) LBRE Frost Amphitheater Improvements PRES/PROV Pubic Safety Buiding PRES/PROV Encina Compex Upgrades DOR Arriaga Ha (formery Athetic Academic Advising and Rowing Buiding) DAPER Emergency Operations Center & Eectronic Communications Hub PRES/PROV Cabrio-Doores Facuty Homes (8 units) LBRE Environmenta Heath and Safety Faciity Expansion DOR Chidren s Center of the Stanford Community UHR Subtota - Projects in Design & Construction 2, , Incudes funds from university and schoo reserves and the GUP and SIP programs. 2 Anticipated funding for this category is through a combination of schoo, department and university reserves and other sources. 3 Operations & Maintenance incudes panned and reactive/preventive maintenance, zone management, utiities, contracts, grounds and outdoor ighting. 4 Other funding is from SHC and LPCH. 5 University Terrace Facuty Homes debt wi be paid off by saes proceeds. Other funding is from Land Deveopment Fund.

15 CAPITAL PLAN AND CAPITAL BUDGET / /21 CAPITAL PLAN FORECASTED CONSTRUCTION PROJECTS PROJECT FUNDING SOURCE GIFTS UNIVERSITY DEBT ANNUAL CONTINUING COSTS 3 FISCAL YEAR ESTIMATED CAPITAL IN HAND SERVICE CENTER/ RESOURCES SCHOOL/ PROJECT PROJECT BUDGET CURRENT OR TO BE AUXILIARY ACADEMIC TO BE DEBT OPERATIONS & DEPARTMENT SCHEDULE COST 2018/19 FUNDS 1 PLEDGED RAISED DEBT DEBT OTHER IDENTIFIED 2 SERVICE MAINTENANCE Undergraduate Housing & Dining R&DE Rains Houses Renovations (Phases 2A - 2E) R&DE Stanford Auxiiary Library, Phase 3 (SAL 3.3) SUL Page Mi Road Tenant Improvements SOM Demoition of Herrin Lab/Herrin Ha/Mudd H&S (5.9) District Work Centers LBRE LKSC Renovation Phase II and III SOM Heritage House Improvements PRES/PROV Subtota - Forecasted Projects SUBTOTAL - CONSTRUCTION PLAN 3, , Incudes funds from university and schoo reserves and the GUP and SIP programs. 2 Anticipated funding for this category is through a combination of schoo, department and university reserves and other sources. 3 Operations & Maintenance incudes panned and reactive/preventive maintenance, zone management, utiities, contracts, grounds and outdoor ighting.

16 82 CAPITAL PLAN AND CAPITAL BUDGET 2018/ /21 CAPITAL PLAN INFRASTRUCTURE PROGRAMS AND HAI PROJECT FUNDING SOURCE GIFTS UNIVERSITY DEBT ANNUAL CONTINUING COSTS FISCAL YEAR ESTIMATED CAPITAL IN HAND SERVICE CENTER/ RESOURCES SCHOOL/ PROJECT PROJECT BUDGET CURRENT OR TO BE AUXILIARY ACADEMIC TO BE DEBT OPERATIONS & DEPARTMENT SCHEDULE COST 2018/19 FUNDS 1 PLEDGED RAISED DEBT DEBT OTHER IDENTIFIED 2 SERVICE MAINTENANCE Investment in Pant (Panned Maintenance) Non-Formua/Admin LBRE Formua SOM R&DE (SHARP/DARP/HARP) R&DE DAPER DAPER Subtota - Investment in Pant (Panned Maintenance) Capita Utiities Program (CUP) System Expansion LBRE System Renewa LBRE Subtota - CUP Stanford Infrastructure Program (SIP) LBRE East Campus Networking & Communications Redeveopment BA Information Technoogy and Communications Systems BA R&DE Major Renovation Pan 4 R&DE Subtota Infrastructure Programs Housing Acquisition Initiative (HAI) LBRE Subtota HAI TOTAL CAPITAL PLAN 4, , , , Incudes funds from university and schoo reserves and the GUP and SIP programs. Aso incudes Tier II contribution for the Housing Acquisition Initiative. 2 Anticipated funding for this category is through a combination of schoo, department and university reserves and other sources. 3 Operations & Maintenance incudes panned and reactive/preventive maintenance, zone management, utiities, contracts, grounds and outdoor ighting. 4 R&DE Major Renovation Pan projects generay incude program and code upgrades vs. Panned Maintenance which incudes subsystem repacement. 3