SUNY Office for Capital Facilities Facilities (Capital) Committee Presentation

1. SUNY Office for Capital FacilitiesFacilities (Capital) Committee Presentation Community College Business Officers Association June 2012

2. Topics to be Covered • SUNY Energy Services • MEGA Group Energy Purchasing • OCF Community College Capital • Capital Atmospherics • Program Cash Flow/Bonding Status • Capital Project Requests for 2013/2014 • Other Upcoming Program Initiatives • Q&A

3. SUNY ENERGY BUYING GROUP June 26, 2012

4. All Generators Sell to Market

5. Electricity Market • Wholesale Market is run by NYISO

6. SUNY EBG Buys in Wholesale Market 2010-11 446,907 MWh Over $19 Million

7. Participating Community Colleges • Adirondack CC • Columbia-Greene CC • Corning CCC • Finger Lakes CC • Herkimer CCC • Jefferson CCC • Sullivan CCC

8. Eligibility for EBG • Must be in National Grid, NYSEG and RG&E areas • Average monthly load for each account must be greater than 30 MWh or 30,000 kWh • Example: Corning CC is about 260 MWh per month with an FTE of 3468

9. Costs We Avoid • No Profit • No Bad Debt Allowance • No Merchant Function Charges • No Gross Receipts Taxes • No Working Capital Costs from Supplier

10. Savings!$12,755,662 and counting!

11. Getting Started • EBG Participant Agreement • Must participate for 1 year minimum • We will handle the change with the transmission company • Setting up your SUNY account for payments and your meter reporting needs • Must pay invoices within 5 days of receipt

12. Contact Us • Kathleen Slusher, Director of Energy Procurement • Kathleen.Slusher@suny.edu • 518-320-1658 • Dan Russ, Energy Accountant • Daniel.Russ@suny.edu • 518-320-1262

13. Group Energy Purchasing 2012 www.megaenergy.org

14. What is MEGA ? • Not-for-profit Local Development Corp. • Board members appointed by participating counties • Counties, community colleges, Thruway and Bridge Authorities, 200 municipalities, school districts, villages, special districts, businesses and individuals • Accessible staff and consulting support • Endorsed by NYSAC 2012 www.megaenergy.org

15. MEGA’s MISSION: Group Procurement Saves $$. • No fee to participate • Prompt enrollment of participants • Public competitive bidding per GML103 • Consulting support 2012 www.megaenergy.org

16. MEGA Advantage • Complimentary to SUNY Electric Buying Group • Power of aggregated gas purchasing – lowest price • Control dormitory energy budgets • Flexible pricing options • Public Bid per General Municipal Law Section 103 2012 www.megaenergy.org

17. MEGA’s Community College Programs • Electricity supply – Dormitories, off-campus accounts • Natural gas supply – Main Campus, dormitories, off-campus accounts 2012 www.megaenergy.org

18. How We Choose a Supplier • Public Bid per General Municipal Law Section 103 • Price and Term • Financial Strength • Experience • NYS PSC License • LDC Approval 2012 www.megaenergy.org

19. Consulting support from EnergyNext, Inc. • Buyer’s Agent • Design and Manage Procurement Process • Negotiate Program Agreements • Monitor Suppliers’ Performance • Respond to Participants’ Needs, Requests 2012 www.megaenergy.org

20. Risk Management 2012 www.megaenergy.org

21. Economic Benefits • Savings • Fixed or variable price options • Budgetary control 2012 www.megaenergy.org

22. MEGA Procurement Process • Enrollment form on flyer, or at www.megaenergy.org • Data Collection • Supplier Offers to Members • Consulting support 2012 www.megaenergy.org

23. What to do next • Complete Authorization Form or visit web site • MEGA Bids/Agreements are open for new participants • Await offers from suppliers • Resolutions, execute agreements 2012 www.megaenergy.org

24. 2012 www.megaenergy.org

25. OCF CC Capital Schenectady County Community College Begley Addition for Music Anticipated Completion August 2012 Orange County Community College Science, Technology and Engineering Center Tower Building and Kaplan Hall Newburgh Campus

26. Capital Atmospherics • B1195 Capital Project Database • NY Works Taskforce • Implementation Council • Regional Economic Development Councils • Consolidated Application • What is SUNY doing?

27. CC Capital Program: Disbursement-Based Bonding • Prior to 2010 Bonds were issued for each project • 2010: Program transitioned to disbursement bonding • Desire by the state to use existing bond proceeds • Address stranded proceeds/manage State bond cap • Future bond sales sized using anticipated expenditure models: 12-18 month periods • OCF uses project information especially dates to appropriately estimate bonding levels

28. CC Capital Program: Current Levels • Current Bond Cash (as of 5/31/12): • $ 3.1M: 1992-2002 (Pre-PIT) • $41.5M: 2003-2010 (Tax Exempt PIT) • $8.9M: 2009-2010 (BABs PIT), 10/14/13 spending deadline • Cash Flow Patterns:

29. CC Capital Program: Important Data Needed • Schedules: Need for Periodic Review/Accuracy • Provides basis for cash flow models/projections • Factors in DASNY’s ability to reimburse claims (Beneficial Occupancy/Placed in Service) • Reimbursement Requests: Need for Timely Claims to DASNY (bonded) and SUNY (hard dollar) • Provides data for cash flow estimates (by project) • Ensures cash on hand/advance notice of need for new program bonding

30. CC Capital Program: Reimbursement Forms/Process • Advance/Bonded: Send to DASNY Program Manager • Hard Dollar:Send to SUNY (Rebecca) • Cover Letter • Claim Form (ensure municipality code/federal ID included) • Excel Detail Sheet Available Online: www.suny.edu/capitalfacilities/CC_Tools.cfm

31. CC Capital Program: Capital Requests for 2013/2014 • Schedule: Imminent • Early request for potential projects to assist with advocacy efforts • Formal request - Sponsor supported projects with required resolutions due mid-October with anticipated schedules for consideration at November SUNY Board meeting

32. Appropriate Capital Budget Items • Real property acquisition • Professional services: site selection, surveys, appraisals, relocation planning, demolition, facility design for new construction/ renovations, construction supervision, identification/specs for capital equipment • Construction • Equipment acquisition and installation

33. 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

34. CC Capital Program: Naming Projects • Naming Projects/Renaming Existing Projects: Project Names Broad, Resolutions Specific • New Buildings • Renovations • FMP Projects • Additional Appropriation for Partially Funded Projects • Renaming Existing Projects

35. Sponsor Resolutions • Types: • Part of a County Capital Budget • Stand-Alone Resolution • Content: Appropriation Names - Broad, Resolutions - Specific • Approval of Project • Recognition of Project Budget • Commitment to Funding Local Share of Project Costs

36. 1 - SUNY Capital Budget Request All projects with resolutions 2 – SUNY Project Approval SEQR must be completed for construction approvals 3 – Financing: DASNY/Bond Counsel Approval Capital Budget Process

37. Capital Project Budget Increases • Initial Documentation: • Revised Sponsor resolution(s) • College Board resolution • Revised Project Initiation Form • SUNY will review documents and issue revised project approval (available applicable appropriation is needed) • Financing Documentation: • Revised Finance Application • Revised Private Use Survey if scope of project substantively changes

38. Upcoming Program Initiatives • Guidance Documents: Process, Content-based • Form/Procedural Changes: • SEQR Documentation prior to construction • Annual Tuition and Fees Certification • Annual Private Use Survey: request for revision at project go-ahead • Site visits

40. We’re here to help!! • Rebecca Goldstein, Community College Capital Program Manager, 518-320-1501, rebecca.goldstein@suny.edu • Karren Bee-Donohoe, Director of the Office for Capital Facilities, 518-320-1894, karren.bee-donohoe@suny.edu • Website: www.suny.edu/capitalfacilities