Agenda

2. Agenda • Office for Capital Facilities (OCF) • Mission/Org Chart • OCF Energy Services • Physical Space Inventory/Private Use Survey • OCF Community College Capital • CC Capital – Program Requirements • Sponsor Funding • Capital Restrictions • Approval/Funding Process

3. SUNY Office for Capital Facilities • Mission – Provide guidance, tools, data, oversight and technical expertise for the care, custody, control and management of Campus facilities in the following core areas:

4. Director – Karren Bee-Donohoe Energy – Kathy Slusher Environmental Health and Safety – Barbara Boyle Community College Capital – Rebecca Goldstein Res Hall Capital – David Ferrari SUNY OCF Org Chart Vice Chancellor for Capital Facilities – Robert Haelen Campus Let Procurement – Jessica Miller Sustainability – Deborah Howard

5. SUNY Energy Buying Group • SUNY Energy Buying Group (EBG) is an electricity provider • Electricity is purchased from the NYISO (NY independent system operator) and supplied to the colleges at cost • A small chargeback funds the staff but this is much less than the profit margin of for-profit suppliers • $9.2 Million saved for system over past 5 years • The OCF Energy office also provides natural gas purchasing services

6. CCs in the Energy Buying Group • Currently 7 community colleges participate in Energy Buying Group • If interested in more information contact Kathy Slusher 518-320-1658 • Adirondack • Columbia-Greene • Corning • Finger Lakes • Herkimer • Jefferson • Sullivan

7. Physical Space Inventory (PSI) • New system allows for continual updates – however late completion by some campuses/colleges kept the system locked • This Fall the deadline will be strictly enforced – Last Friday of December – this year December 28, 2012 • Survey Results show need for major improvement of this system

10. Private Use Survey • Why Required – to meet tax law related to use of tax exempt bonds • This year asked colleges to do comprehensive survey for the entire college • Improved/clarified the instructions and forms • Next year, Colleges will be provided with data from last year’ survey, just need to update • Future will be part of the PSI update

11. OCF CC Capital Morrison Hall - Orange County Community College Student Union – Rockland Community College

12. Community College Capital Program – State Requirements • Regulated by Part 603 of the NY Code of Rules and Regulations See: http://www.suny.edu/SUNYPP • Under the Financial Section – find the link to Capital Projects Part 603.3 • These Regulations are based on Section 2304 of New York’s Education Law • For all Capital projects the local sponsor share must be at least 50% of the projects cost • NYS’s 50% share requires State appropriation authority

18. Source of Local Sponsor Share • County capital appropriations • Gifts – must be recognized by the county and SUNY Board • May be monetary, real property, services in kind • Must be well documented • Grants - recognized by the county • Capital chargeback revenue from your students from other counties

19. Chargeback Capital • Chargeback Capital rate - maximum of $300 per non-resident student, in effect since 1976 • Per §603.7 may be used as follows: • As the sponsor share for acquisition of real property, construction or rehabilitation • To reduce indebtedness of the sponsor • To pay sponsor’s cost of financing debt • For sponsor’s share of other purposes permitted within an approved capital budget

20. Chargeback Capital (Cont) • May be used for 50% share of equipment meeting the following : • Tangible asset • Useful life of at least 2 years • Unit cost of at least $1000 • If purchased in quantity unit cost of at least $500 and aggregate cost of $10,000 or more • Equipment purchased by Capital Chargeback does not qualify for State Operating Aid

21. Appropriate Capital Budget Items • Real property acquisition • Professional services for site selection, surveys, appraisals, relocation planning, demolition, facility design for new or renovations, construction supervision, identification and specifications for capital equipment • Construction – new or renovation • Equipment acquisition and installation • Moving Expenses where appropriate

22. Rules for Real Property • Acquisition of real property requires a minimum of two appraisals – State will match the lowest – Requires SUNY Board approval with some exceptions such as < $1M • Capital may be expended in leased facilities provided that: • The facility lease is in place before any expenditure of capital • The lease is long enough for bond funds to be fully paid – generally 25 year minimum lease term

23. Difference Between Repair and Capital • Building maintenance and repairs may not be included in Capital Budgets • Per §602.4 (d) (5) Repairs are maintenance actions to keep facility in operating condition. Repairs do not significantly add to facility value nor prolong useful life.

24. Project Approval & Financing Steps • Capital budget request – each Fall • Must include sponsor resolutions • Project initiation form • Can be submitted at time of annual request • State Budget Appropriation – April • SUNY Approval – Chancellor’s designee • Financing application – DASNY approval • Reimbursement request

25. Annually SUNY issues a “budget call letter” asking the Community Colleges to identify projects with local sponsor support which do not yet have corresponding State support or which need increases All projects submitted with Sponsor resolutions are included in a comprehensive SUNY capital budget request, following SUNY Board approval The deadline for submitting projects is usually on or before October 30th for consideration at the November SUNY Board meeting 1 - SUNY Capital Budget Request

26. SUNY Capital Budget Request (cont) • SUNY’s budget request is submitted to the New York State Division of Budget (DoB) for consideration in the State’s Executive budget • The Capital Appropriations need to be approved in the State’s final enacted budget • The Start of the State’s fiscal year is April 1 • The State’s funding share requires bond financing through DASNY

27. 2012 CC Capital Budget Request • SUNY Requested 5-Year Project List • 10-Year Plans requested from all State Agencies • NY Works Task Force/NYS Division of Budget • CC 10-Year Plan used 5-Year ask and annual renewal needs/50% CM backlog reduction • SUNY anticipates this information being used for planning and not holding agencies to the requests

28. 2012 CC Capital Budget Request (cont.) • This year’s request $81M State Support • Resolutions still required for Div of the Budget • 1-5 year total $496.5M state support based on plans submitted by colleges • Years 6-10 total state support $498.1M based on needs shown in the Building Condition Assessment Survey from 2009 • 10 year total of $994.6M

29. Overall SUNY Capital Plan

30. 2 – Project Initiation Form Project Initiation Form

31. 2 – Project Initiation Form (cont.)

32. Changes to Capital Project Budgets • If a project budget must be increased, both a revised resolution from the College sponsor plus a resolution from the College Board are required. • College provides an updated Project initiation form. • Upon review and determination of available appropriation SUNY will issue an approval of the revised project budget. • If appropriation is not available the additional funding will be included in the next annual budget request.

33. 3 - Project Appropriation • Appropriation is approved as part of the State budget approval • Appropriation is for the 50% State Share • Generally appropriation is lined out by College and project • Developing broad project descriptions provides greatest flexibility

34. 4 – SUNY Project Approval • Prior to January 2011 all projects had to be approved by SUNY Board of Trustees • Resolution approved in January 2011 provides for Chancellor’s designee to approve projects • Vice Chancellor for Capital Facilities, Bob Haelen is the current designee • SUNY Approval is sent to College VP with instructions for next step

37. 5 - Financing Application • Following approval by Chancellor’s designee College must submit financing application which includes tuition and fees test • SUNY OCF sends completed financing application to DASNY • DASNY reviews useful life, private use, status of SEQR and ultimately provides approval to OCF. • OCF contacts campus that reimbursements may proceed

38. Financing Application Cover Letter

39. Financing Application Tuition & Fees Test

40. Financing Application Excel Portion

41. Bonding - Disbursement Financing • Prior to 2010 Bonds were issued for each project. • 2010 NYS Division of the Budget required SUNY Community College program to move to cash disbursement bonding • Desire by the State to use existing bond proceeds and appropriations • Future bond sales will be sized based on anticipated 12-18 months reimbursements • OCF needs accurate project information and updates to appropriately estimate bonding levels

42. 6 - Reimbursement • Follow your sponsor’s procurement regulations to engage with architectural and engineering consultants and contractors • County may hold contracts • College may hold contracts • May use DASNY with approval of SUNY BoT • College/Sponsor must expend funds in the first instance

43. 6 – Reimbursement (cont) • Once financing application has been approved College may apply for reimbursement • Reimbursement request is made directly to DASNY and must be within 18 months of project completion • SUNY OCF will be encouraging regular reimbursement requests to help better predict cash flow

44. Community College Capital – Statistics Stafford Center - Clinton Community College Conable Technology Building Genesee Community College

45. Community College Capital Needs • Capital reinvestment study completed in 2009 • Significant backlog of $411 million in deferred-capital maintenance • Deferred maintenance is expected to grow to $807 million by 2014 and $1.3 billion by 2019 • Inability to secure the required 50% local match is the single largest impediment to the program • Growth in CC enrollment compounds the facility dilemma as more students use increasingly deteriorating facilities

46. CC Building Construction by Year

48. Community College Capital – Rebecca Goldstein Annual Call for CC Capital Plan Update Process and Procedures Develop Annual Bond and Appropriation Requests Manage Appropriation SUNY Project Approval Process OCF – Community College Capital Projecting Cash Flow

49. OCF Community College Services • Provide services for capital planning and financing • Provide clear procedures, forms & checklists • Work with colleges to secure State funding for community college capital project needs • Enhance reporting in light of change to cash flow bond financing • One on one working sessions with Colleges