SUBJECT: Deferred Maintenance and Capital Outlay Planning

Transcription

1 Capital Planning, Design and Construction Elvyra F. San Juan 401 Golden Shore, 2 nd Floor Assistant Vice Chancellor Long Beach, CA (562) esanjuan@calstate.edu DATE: March 19, 2015 TO: CSU Presidents April 1, 2015 Deferred Maintenance Lists April 20, 2015 Draft Capital Programs June 15, 2015 Final Capital Programs FROM: Elvyra F. San Juan Assistant Vice Chancellor SUBJECT: Deferred Maintenance and Capital Outlay Planning This memorandum is to request: (1) campus review and correction to the draft Deferred Maintenance Lists compiled for and (2) campus capital outlay project justifications and descriptions for the Capital Outlay Program for through Deferred Maintenance As the Governor s Budget Proposal includes one-time general funds of $25 million for CSU, Facilities Planning staff have contacted campuses to compile the enclosed list to convey the highest priority projects for use of the proposed funds. In addition, a second list of $25 million is being compiled in the event the legislature proposes additional one-time funds to address the CSU deferred maintenance backlog. These two lists are enclosed for your review and edit as needed. Staff used the Critical Infrastructure Assessment developed as part of the Utility Master Plan effort to help create this draft list in consultation with the campus. It is anticipated the final lists (totaling roughly $50 million) will be provided to both the Department of Finance and the legislature in support of the funding needs of the CSU. It is anticipated the support budget should be finalized by July 1, Capital Outlay Program through This call for capital outlay project descriptions and justifications will be used for setting the system priorities for and compiling the Five-Year Capital Improvement Program through This letter incorporates modest changes in the planning process to reflect statutory deadlines and proposed changes to the board s criteria for priority setting. Due to the identification of significant infrastructure deficiencies, we hope to continue an emphasis on the use of our new capital financing authority to address improvements to infrastructure to avoid campuswide or critical building shutdowns and yet provide sufficient flexibility to meet the most critical campus needs in an effective manner. CSU Campuses Bakersfield Channel Islands Chico Dominguez Hills East Bay Fresno Fullerton Humboldt Long Beach Los Angeles Maritime Academy Monterey Bay Northridge Pomona Sacramento San Bernardino San Diego San Francisco San José San Luis Obispo San Marcos Sonoma Stanislaus

2 Presidents March 19, 2015 Page 2 Program funding is dependent upon the Board of Trustees approval to issue long-term debt financing pursuant to the new capital financing authority granted to the CSU and funding in the support budget to pay for the annual debt service. Guidelines Deferred Maintenance/Infrastructure Improvement Program 1) The 2015 Governor s Budget Proposal includes one-time funding of $25 million for deferred maintenance. If approved, these funds could be used to complete phased infrastructure projects begun with the program funding and projects on the critical infrastructure lists provided by the Utility Master Plan reports. Campuses can review and update the Deferred Maintenance lists of projects as provided in Attachments 3 and 4 to confirm and/or correct the campus priority projects. Please also complete the simplified project description (Capital Outlay Budget Change Proposal (COBCP) form 1-4) and construction cost estimate (Capital Outlay Estimate form 2-7) forms to convey the need, scope and budget for all the listed projects. Submit your revised lists and descriptions by April 1, This short turnaround is necessary to keep on track with the budget approval process. 2) For the Systemwide Infrastructure Improvement program, the campus should continue to identify projects to address life-safety, critical utility and building needs, energy and water conservation. Projects that remain unfunded or partially funded from the above noted Deferred Maintenance lists can be used as the basis for the Systemwide Infrastructure Improvement program. Please submit the campus draft Infrastructure Improvement list and project descriptions by April 20, Major Renovations and New Construction 1) The budget estimates will be based on the California Construction Cost Index (CCCI) 6255 and Equipment Price Index (EPI) An updated Capital Outlay Estimate form 2-7 is available on line for the budget year. A cashflow estimate is also requested for bond financing (the form is included in the form 2-7 workbook). 2) Please review the previously submitted ( ) action year COBCP project (the campus highest priority project; typically a major renovation, replacement building or growth project) to verify that it is still the campus highest priority after the projects on the Infrastructure Improvements list. The campus should reconfirm the project description and cost estimate to ensure they are accurately represented. 3) Please review the enrollment and space capacity companion reports to the Five-Year Capital Improvement Program that are key planning tools used for the system:

3 Presidents March 19, 2015 Page 3 Questions a. Summary of Campus Capacity with multi-year enrollment projections at rts/campus_sumcap.shtml b. Laboratory Enrollment FTES versus Laboratory Capacity FTES at abftes.shtml The required Campus Program Submittals, Cost Guide, Categories and Criteria (pending Board of Trustees approval) and Guidelines for Feasibility Study for the program will be available online. Several support documentation forms have been modified to facilitate streamlined budget development. All program submittals should use current CPDC forms. Access all program information via the CPDC page of the Chancellor's Office website: Select Facilities Planning, then either Call Letters or Forms, as needed. For specific program area questions, contact: State funded submissions Larry Piper, Chief of Facilities Planning, Capital Planning, Design and Construction (562) Financial documentation required to support non-state funded submissions Robert Eaton, Assistant Vice Chancellor, Financing and Treasury/Risk Management (562) Please submit all documents to Elvyra F. San Juan, Assistant Vice Chancellor, Capital Planning, Design and Construction. We thank you and your staff for your efforts to prepare the annual capital outlay program. CPDC staff will continue to identify process changes to streamline the program production in light of anticipated funding and possible authority changes. Attachment 1: Schedule of Submissions Attachment 2: Categories and Criteria for through Attachment 3: Deferred Maintenance Governor s Proposal Attachment 4: Deferred Maintenance Additional Need

4 Presidents March 19, 2015 Page 4 Distribution: Vice Presidents, Administration and Finance Vice Presidents, Student Affairs Timothy P. White, Chancellor, The California State University Steve Relyea, Executive Vice Chancellor/Chief Financial Officer, CSU Office of the Chancellor Ryan Storm, Assistant Vice Chancellor for Budget, CSU Office of the Chancellor Karen Yelverton-Zamarripa, Assistant Vice Chancellor, Advocacy and State Relations, CSU Office of the Chancellor Robert Eaton, Assistant Vice Chancellor, Financing and Treasury/Risk Management, CSU Office of the Chancellor Executive Facilities Officers Directors of Facilities Operations Building Coordinators Energy Managers Financing and Treasury Managers CPDC Planners

5 The California State University Attachment 1 Five-Year Capital Improvement Program Page 1 of 1 SCHEDULE OF SUBMISSIONS & CALENDAR OF CAPITAL OUTLAY PROCESS This schedule includes the capital program submittal dates for the action year. January 10, 2015 Governor's Budget proposed for March 24-25, 2015 March - May 2015 Board of Trustees approves Categories & Criteria for capital program. Legislative Committee hearings on the budget. April 1, 2015 Campuses submit the Deferred Maintenance lists for April 20, 2015 April 20, 2015 May 22, 2015 June 15, 2015 August 1, 2015 Summer/Fall 2015 Sept.1, 2015 Sept. 8-9, 2015 Nov. 1, 2015 Nov , 2015 Dec. 1, 2015 Campuses submit the COBCPs for the Draft Capital Outlay Program (COP) and Five-Year Capital Improvement Program (CIP). Campuses also submit related financial plans to Financing and Treasury. Campuses submit master plan map, facility legend and campus history. CPDC submits to Presidents proposed revisions to the Draft COP & CIP. Campuses submit the Final COP and CIP (one paper and one electronic copy). Program should include: Final State and Non-State COBCPs. Final equipment lists. Final Financial Plan for Non-State projects. Approval of Housing Proposal Review Committee (if applicable). Financing and Treasury approves campus final financial plan for projects to be funded by bonds, including auxiliary projects, for the Action Year. Campus site visits by State Agencies. CPDC submits final COBCPs and equipment lists to DOF/JLBC. Board of Trustees approves Draft COP & CIP & Statement of Support. DOF provides preliminary list of approved CSU projects to JLBC. Board of Trustees approves the Final COP & CIP. DOF submits final list of approved projects to CSU. January 10, 2016 Governor's Budget proposal for February 1, 2016 March - May 2016 April 1, 2016 June 2016 DOF provides preliminary list of approved CSU projects to JLBC. Legislative Committee hearings on the budget. DOF submits final list of approved projects to CSU. Campuses complete design architect selections/agreements for projects included in the Budget.

6 Attachment 2 Categories and Criteria to Set Academic Program Priorities General Criteria Priorities will be determined based upon the strategic needs of the system in consideration of existing deficiencies in the type, amount and/or condition of campus space to serve the academic master plan. In particular, priority will be given to projects that address critical seismic and infrastructure deficiencies, including life/fire safety, utilities infrastructure critical to campus-wide operations, capital renewal and minor capital outlay in existing facilities. Projects programmed for modernizing existing facilities or constructing new replacement buildings in response to academic needs or enrollment demand will be considered on a case-by-case basis. Campuses will be encouraged to identify funding sources for projects to receive priority consideration, however such funding will not guarantee a higher prioritization for the project based on the strategic needs of the system. A campus may submit a maximum of one major capital project for the budget year, one project for the planning year, and three projects per planning years , including health and safety projects. Exceptions to these limits will be considered on an individual project basis. Equipment and seismic strengthening projects are excluded from this limit. Seismic strengthening projects will be prioritized according to recommendations from the CSU Seismic Review Board. Approval of multi-phase projects may require the project funding to be allocated over more than one year. Campus requests for preliminary plans, working drawings, and construction (PWC) lump sum funding will be considered on an individual project basis based on the project s complexity, scope, schedule, and the availability of non-appropriated funds to augment the project. Current trustee-approved campus physical master plan enrollment ceilings apply to on-campus seat enrollment only. These numbers are to be used as the basis of comparison for justifying capital projects that address enrollment demand to be accommodated on campus. Enrollment estimates that exceed these figures should be accommodated through distributed learning and other off-campus instructional means.

7 Individual Categories and Criteria I. Existing Facilities/Infrastructure A. Critical Infrastructure Deficiencies CD (Critical Deficiencies) These funds correct structural, health and safety code deficiencies by addressing life safety problems and promoting code compliance in existing facilities. Projects include seismic strengthening, correcting building code deficiencies, failing infrastructure, and addressing regulatory changes which impact campus facilities or equipment. These funds also include the Systemwide Infrastructure Improvement and Minor Capital Outlay programs. B. Modernization/Renovation FIM (Facilities Infrastructure/Modernization) These funds make new and remodeled facilities operable by providing group II equipment (furnishings) and replacing utility services/building systems to improve facilities and the campus infrastructure. These funds also meet campus needs by modernizing existing facilities or constructing new replacement buildings in response to academic and support program needs as well as enrollment demand. II. New Facilities/Infrastructure ECP (Enrollment/Caseload/Population) These funds eliminate instructional and support deficiencies to support campus growth, including new buildings and their group II equipment, additions, land acquisitions, and site development.

8 Deferred Maintenance Governor's Proposal Attachment 3 Campus Campus DM Projects Project Estimate Bakersfield Replace electrical distribution transformers $1,000,000 Channel Islands Electrical and Fire Alarm Upgrade $950,000 Sanitary Sewer Replacement $75,000 ADA Pathway Upgrades $100,000 TOTAL $1,125,000 Chico Generator for fire egress system $1,023,000 TOTAL $1,023,000 Dominquez Hills Gas Line, Sensors and Valves Replacement $550,000 Arc Flash Study $275,000 TOTAL $825,000 East Bay Replace water pressure regulators and boilers $1,408,000 TOTAL $1,408,000 Fresno $0 TOTAL $0 Fullerton Undergrounding of electrical lines $650,000 TOTAL $650,000 Humboldt Fire Alarm Replacement $489,000 Elevator System Replacement $596,000 Building Controls System Replacement $549,000 TOTAL $1,634,000 Long Beach Sewer Line Replacement $1,500,000 TOTAL $1,500,000 Los Angeles Electrical Switchgear at King Hall $650,000 TOTAL $650,000 Maritime Academy Repair natural gas distribution system $370,000 Repair storm drain system, Academy Road $648,000 TOTAL $1,018,000 Monterey Bay 15kv distribution, Main Quad $2,100,000 TOTAL $2,100,000 Northridge Heating Hot Water Line Replacement $1,200,000 TOTAL $1,200,000 Pomona Central Plant Cooling Tower and HHW Line Upgrade $1,500,000 TOTAL $1,500,000 Sacramento MPOE Fire Suppression at AIRC $500,000 Arc Flash Study $200,000 Repair gas lines $650,000 TOTAL $1,350,000 San Bernardino Chiled Water Line Replacement $1,200,000 TOTAL $1,200,000 San Diego 15kv Switch Gear $1,300,000 TOTAL $1,300,000 San Francisco Sewer System Upgrade and Electrical at Tiburon $982,000 Emergency phones $385,000 TOTAL $1,367,000 San Jose Infrastructure Improvements, Phase 1C $1,400,000 TOTAL $1,400,000 San Luis Obispo Fire Alarm Replacement $500,000 Elevator Replacement $500,000 San Marcos $0 TOTAL $0 Sonoma Stevenson and Art Building Roofs $350,000 Upgrade Central Plant Controls $400,000 TOTAL $750,000 Stanislaus Boiler Plant and Corp Yard Roof Replacement $780,000 Chilled Water Expansion Tank Replacement $220,000 Total $25,000,000 All projects include PWC funding. 3/19/2015

9 Deferred Maintenance Additional Needs Attachment 4 Campus Campus Deferred Maintenance Projects Project Estimate Bakersfield Replace electrical distribution transformers $1,200,000 TOTAL $1,200,000 Channel Islands HVAC Replacement $500,000 Sanitary Sewer Replacement $400,000 ADA Upgrades $100,000 Chico Acker/Shurmer Fire Alarm Egress System $1,073,000 TOTAL $1,073,000 Dominquez Hills TBD $780,000 TOTAL $780,000 East Bay Water Pressure Regulators and Boiler Replacement $1,500,000 TOTAL $1,500,000 Fresno TBD $500,000 TOTAL $500,000 Fullerton Physical Services, Phase 1 $1,000,000 Humboldt Replace Natural Research Generator $175,000 Repair Mill Street Sewer and Water System Infrastructure $100,000 Building Controls System $500,000 Fire Alarm System $210,000 TOTAL $985,000 Long Beach TBD $500,000 TOTAL $500,000 Los Angeles Boiler Replacement - Campuswide $658,000 TOTAL $658,000 Maritime Academy Wharf Area Electrical Improvement $1,218,000 TOTAL $1,218,000 Monterey Bay TBD $1,000,000 Northridge HHW Upper Etiwanda and Jacaranda Walk $1,600,000 TOTAL $1,600,000 Pomona Domestic Water Line Replacement $1,000,000 Sacramento Elevator Modernization $1,000,000 San Bernardino Utility Project $1,300,000 TOTAL $1,300,000 San Diego Condensate line, Boiler $1,786,000 TOTAL $1,786,000 San Francisco Portable Generator Quick Connect Switchboards $1,480,000 TOTAL $1,480,000 San Jose Infrastructure IIA $1,620,000 TOTAL $1,620,000 San Luis Obispo Replace Transite Water Lines $600,000 Gas Isolation Valves $190,000 Engineering and Dexter Building Gas Piping Replacement $210,000 San Marcos Elevator Replacement - Craven Hall $800,000 TOTAL $800,000 Sonoma TBD $1,000,000 Stanislaus Drama Air Handler Replacement $1,000,000 Total $25,000,000 All projects include PWC funding. 3/19/2015