SUNY Office for Capital Facilities New Business Officers Orientation

1. SUNY Office for Capital FacilitiesNew Business Officers Orientation Community College Business Officers Association November 2013

2. Contents • Office for Capital Facilities (OCF) • Mission/Org Chart • Energy Services • OCF Community College Capital • CC Capital - State Law • Sponsor Funding • Capital Restrictions • Approval/Funding Process • Q&A

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. DirectorKarren Bee-Donohoe EnergyKathy Slusher Environmental Health and Safety Barbara Boyle Community College CapitalRebecca Goldstein Residence Hall CapitalDavid Ferrari SustainabilityDeborah Howard SUNY OCF Org Chart Vice Chancellor for Capital Facilities – Robert Haelen Campus Let Procurement Jessica Miller

5. SUNY Energy Buying Group • SUNY Energy Buying Group (EBG) is an electricity provider • Electricity purchased from the NYISO (NY independent system operator) and supplied to the colleges at cost • Small chargeback funds the staff but much less than the profit margin of for-profit suppliers • $16.3M saved for system since 2004 • 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: • Adirondack, Columbia-Greene, Corning, Finger Lakes, Herkimer, Jefferson, Sullivan • Natural Gas Purchasing: • Erie is participating in large natural gas aggregated load with SUNY • For more information contact Kathy Slusher 518-320-1658

7. OCF CC Capital Natural Science Center – SUNY-Broome Student Union – Rockland Community College

8. OCF Staff Background • Karren Bee-Donohoe – 29 years of university facilities experience including maintenance and operations, capital project development, capital project finance, Director SUNY OCF for nearly 4 years • Rebecca Goldstein – 22 years experience managing various programs for non-profit and governmental agencies,  Started in 2011 as the Community Colleges Capital Program Manager

9. 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 Budget Part 603.3 • Regulations are based on NY Education Law Sect. 6304 • For all Capital projects the local sponsor share must be at least 50% of costs • NYS 50% share requires State appropriation authority

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

16. 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 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 for other purposes permitted within an approved capital budget

17. 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 may not qualify for State Operating Aid

18. 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 • Equipment acquisition and installation

19. Rules for Real Property • Acquisition of real property requires two appraisals – State recognizes lowest • Capital may be expended in leased facilities provided: • Facility lease is in place before any capital expenditure • Lease is long enough for bond funds to be fully paid – generally 25 year minimum lease term

20. 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

21. Project Approval & Financing Steps • Capital Budget Request – each late summer/fall • Must include sponsor resolution • Project Initiation Form (PIF) accompanies request to provide additional project details • State Budget Appropriation – April • Revised PIF required – finalized budget/schedule • SUNY Approval – Chancellor’s designee • Financing application – DASNY approval • Reimbursement request

22. Annually SUNY issues a “Budget Call Letter” asking CCs to identify projects with local sponsor funding support without corresponding State support or project increases in the upcoming state fiscal year. Additional info about outlying years’ preliminary plans is requested Each project requires a budget and general schedule. All year-one projects must be submitted with PIFs and Sponsor resolutions. Information is included in a comprehensive SUNY capital budget request following SUNY Board approval Deadline for submitting projects is usually before 10/30 for consideration at the November SUNY Board meeting 1 - SUNY Capital Budget Request

23. SUNY Capital Budget Request (cont) • SUNY’s budget request is subsequently submitted to NYS Division of Budget (DoB) for consideration to include in the State’s Executive Budget, released the 3rd week of January • Capital Appropriations need to be approved in the State’s final Enacted Budget • The Start of the State’s fiscal year is April 1 • State’s funding share for capital projects requires bond financing through DASNY

24. Project Initiation Form

25. Project Initiation Form (cont.)

26. 2 – State Budget Passage • Appropriation is approved as part of the State budget approval – April 1 • Appropriation is for 50% State Share • Generally lined out in budget bill: College/Project • Developing broad project titles provides greatest flexibility of use • Appropriation is State authorization, not SUNY Project Approval – Project Approval is a separate step

27. 3 – SUNY Project Approval • Prior to January 2011 all projects had to be approved by SUNY Board of Trustees • SUNY BoT resolution approved in January 2011 provides for Chancellor’s designee to approve projects • Vice Chancellor for Capital Facilities, Bob Haelen is the current designee • Approval is sent to VP with next steps

28. 4 - Financing Application • After project is approved by the Chancellor’s designee, College must submit financing application • SUNY OCF sends completed Financing Application to DASNY • DASNY Bond Counsel reviews project information to ensure qualification for bond-financed reimbursement • DASNY relays approval to SUNY; SUNY informs CC

29. Financing Application

30. Financing Application (cont)

31. 5 - Reimbursement • College/Sponsor must expend funds in the first instance • Once financing application has been approved College may apply for reimbursement • Reimbursement request made to DASNY PMs • SUNY OCF encourages regular reimbursement requests to help better predict cash flow and increase DOB’s confidence of projections

32. Other Info • Bonding • Annual private use survey • CC capital statistics • Project Changes • Contracting for capital projects • Summary of OCF services

33. Bonding - Disbursement Financing • Prior to 2010 Bonds were issued for each project • 2010 NYS Division of the Budget required CC Program to move to cash disbursement bonding • Desire by the state to utilize 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

34. Annual Private Use Survey • Previously required for each new project • In 2012, changed to annual survey completion reflecting all private use on campus • Uses include, but not limited to: • Bond Counsel’s due diligence to ensuring IRS compliance with bond-financed reimbursement, bond sales, refinancing • Coordination with CC Rental Aid assistance process • Future Start-Up New York information collection

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

36. CC Building Construction by Year

37. Community College Capital Needs • Capital reinvestment study completed in 2009 • SUNY in planning stages for next 5 year study • Significant backlog of $411M in deferred maintenance • Without investment, deferred maintenance expected to grow to $807M by 2014 and $1.3B 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

38. CC Historic Capital Funding

39. CC Historic Capital Reimbursement

40. Changes to Capital Project Budgets • Increases require revised resolution from the College sponsor plus a resolution from the College Board • College provides an updated Project Initiation Form with revised budget components and schedule • Upon review and determination of available appropriation, SUNY will issue an approval of the revised project budget • If appropriation is not available, additional funding will be included in the next annual budget request

41. Capital Projects Contracts • Follow your Sponsor’s procurement regulations to engage with architectural and engineering consultants and contractors • County/Sponsor may hold contracts • College may hold contracts • May use DASNY with approval of SUNY BoT

42. 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 Project Cash Flow

43. 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

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