The Minnesota State Colleges and Universities system is an Equal Opportunity employer and educator. Chief Financial and Facilities Officers Meeting January 27, 2010 Capital Budget 2010 Update FY Capital Budget Guidelines

Slide 2 Campus Locations 32 colleges and universities 54 campuses 47 communities

Slide 3 Source: Minnesota Office of Higher Education Basic Data Series 2008 fall 2008 headcount enrollment, undergraduates. Excludes private graduate and professional colleges as well as private online enrollment System Serves 63% of Minnesota’s Undergraduates

Slide 4 Enrollment is Healthy * Does not include 21,800 non-credit SCSU students (2009)

Slide 5 Capital Budget Guidelines Based on the system’s Strategic Plan Strategic directions Increase access and opportunity Promote and measure high-quality learning programs and services Provide programs and services that enhance the economic competitiveness of the state and its regions Innovate to meet current and future educational needs Building a sustainable campus

Slide 6 Capital Budget Guidelines Academic imperatives –Align the capital budget to program needs: Promote learning Respond to workforce needs Foster partnerships Enable innovation Focus on sustainability: preservation, renewal, reuse of existing facilities Limit new space, except for enrollment growth and program requirements

Slide 7 Capital Budget Process Budget foundation: –System’s Strategic Plan –Individual campus Facilities Master Plans –Capital Budget Guidelines – May 2008 Project submissions – December 2008 Project evaluations – January 2009 –Rigorous analysis and scoring –Academic and administrative team participants from System colleges/universities

Slide 8 Process – Project Evaluation Conformance to the Guidelines Conformance to Facilities Master Plan Link to academic programs Focus on sustainability: preservation, renewal, reuse of existing facilities, and rightsizing space Justify new space by enrollment and program/workforce requirements Improve science, technology, classrooms and student services

Slide 9 Process – Project Evaluation Show collaboration between institutions and other partnerships Prior Board/Legislative approval or funding Technical details: predesign status, space utilization, condition assessment Examine operating costs and debt capacity of the college/university Consider phasing design and construction

Slide 10 Capital Budget Process Preliminary list – January 2009 Board of Trustees’ public hearing – February 2009 Proposed Capital Budget to Leadership Council (Chancellor, presidents, vice chancellors) – March Board of Trustees final review – April Board of Trustees approval – June 2009

Slide 11 Budget Principles Finish projects already started Recognize projects in the construction queue Bring on new projects –“design only” or –design + some amount of construction Build and renovate “sustainably” – Rigorous design & construction standards – Enhance building operational efficiency

Slide 12 Proposed Capital Budget $301.3 million general obligation bond financing, including $110 million HEAPR $95.5 million financed by the System and college or university gaining a project $396.8 million total authorization

Slide 13 Program Alignment 10 of 31 capital projects support delivery of STEM programs at $118.8 million 46% of the budget goes to metro area campuses –Respond to enrollment growth –Increase baccalaureate delivery in Twin Cities 54% of the budget goes to greater Minnesota campuses

Slide 14 Labs, Allied Health, Classrooms and Libraries: 93% of the budget Requested Funding in 2010 Classrooms$110,998,000 Libraries/LRCs$38,363,000 Property Acquisitions$10,800,000 Science Labs & Allied Health$118,771,000 Other Improvements and Renovations $7,879,000

Slide 15 Distribution by Region

Slide 16 Distribution by Institution Type

Slide 17 Capital Renewal and Reinvestment Focus capital budget on “taking care of what we have” – renovate and modernize Monitor physical condition of facilities –Based on life-cycle modeling –Track the backlog –Predict future renewal requirements Current backlog = $655 million Goal: –Reduce backlog 50% over 10 years –Stay ahead of renewal requirements

Slide 18 Size of the Enterprise

Slide 19 Capital Renewal and Reinvestment Source of funds: 1.Capital line-item projects 25 major projects will decrease backlog 2.HEAPR 150 projects: $25K to $1M+ Building systems and sub-systems 3.Campus repair & replacement (R&R) Campus operating budget Target spending: $1/square foot

Slide 20 Renewal & Renovation

Slide 21 HEAPR $110 million per biennium –Targeted to specific building system projects Campus requests were $397 million HEAPR budget allocation –College/university priorities –Keep everyone “Warm, safe and dry” –Roof, building envelope, systems evaluations –Fire protection and detection upgrades –Elevator code upgrades –Promote energy efficiency

Slide 22 HEAPR – $110 Million Request

Slide 23 Spending from the Bonding Bill

Slide 24 FY2010 Project Execution

Slide 25 FY2010 Project Execution HEAPR –Very high Legislative interest –Advance design NOW is critical –$40 million to $50 million in 2010 projects should be under design Spending commitment –Encumber 100% by March months instead of 24 months –Spend 100% by June months instead of 30 months –Expect more frequent “reminders”

Slide 26 FY2010 Projects and Priorities Details in “Concrete Investments: Building Jobs, Knowledge and Opportunity” Priority #1 – HEAPR Priority #2 thru 7 – vetoed in 2008, – North Hennepin Community College 3 – Classroom renovations, 7 campuses 4 – Lake Superior College 5 – Metropolitan State University 6 – Mesabi Range C&TC 7 – Dakota County TC (may be withdrawn)

Slide 27 FY2010 Projects and Priorities Priority #8 thru 23 – prior Legislative authorization 8 – Alexandria Technical College 9 – Minnesota State Community & TC, Moorhead 10 – Anoka-Ramsey Community College 11 – Hennepin Technical College 12 – Minneapolis Community & Technical College 13 – Ridgewater College, Willmar 14 – Minnesota West Community & Technical College, Worthington

Slide 28 FY2010 Projects and Priorities 15 – South Central College, Faribault 16 – Anoka-Ramsey Community College 17 – North Hennepin Community College 18 – Minnesota State University Moorhead 19 – Southwest Minnesota State University 20 – St. Cloud State University 21 – Dakota County Technical College 22 – St. Cloud Technical College 23 – Rochester Community & Technical College

Slide 29 FY2010 Projects and Priorities Priority #24 thru 31 – new projects 24 – STEM renovations, 9 campuses 25 – Minnesota State University, Mankato 26 – Normandale Community College 27 – Bemidji State University 28 – Metropolitan State University 29 – Rochester Community & Technical College 30 – Technical College library renovations, 8 sites 31 – Property acquisition, BSU and MCTC

Slide 30 FY2010 Projects and Priorities

Slide 31 FY Capital Budget Guidelines

Slide 32 FY Capital Budget Guidelines Form foundation for next cycle of project development and capital budget In discussions with Leadership Council (LC) and Board of Trustees Initial thinking: series of bullet planning points posted on web LC discussion – March 2010 Board “First Reading” – April 2010 Board approval – June

Slide 33 FY Capital Budget Guidelines…major points System Strategic Plan Impact on state economy STEM Increase 4-year program delivery in metropolitan Twin Cities area Right-size and down-size Renovate – don’t build new Reduce backlog address near-term renewal needs

Slide 34 FY Capital Budget Guidelines…major points HEAPR – maximize advance design Energy efficiency (e.g. alternate fuels) Encourage smaller projects (< $5M) Continue “initiative” projects’ bundling Verify space use; efficiency & rightsizing Predesigns complete in Oct before scoring All projects reviewed and scored (this might alter priority list from 2010) Publish preliminary list February 2011

Slide 35 FY Capital Budget Guidelines Questions on Guidelines? Check out a few planning resources:

Slide 36 Master Plan – updated form Streamlined; outline updated in Aug 2009: programming/masterplanning/pdf/ Master_Plan_Update.pdfhttp:// programming/masterplanning/pdf/ Master_Plan_Update.pdf Six Basic Components: 1. Summary (includes academic demographics) 2. Existing Site Conditions 3. Existing Building Conditions 4. Proposed Site Development 5. Proposed Building Development 6. Capital Budget Incremental Improvement Program

Slide 37 Predesign – updated form Streamlined; outline updated August programming/predesign/pdf/ _Predesign.pdfhttp:// programming/predesign/pdf/ _Predesign.pdf Added more value to the predesign by:  Requiring consultant and campus to examine and explicitly add alternatives and options so if the ‘big’ project doesn’t get funded then critical academic or other space alternatives are possible  How can campus improve incrementally on any given predesign scope! Call planning staff if we can be of assistance in RFP development or in execution!

Slide 38 Space Planning Guidelines – updated Guidelines can assist in your campus development! 5.2b Laboratories Ventilation Systems – new as of July Applied Technology – new as of June 2009 a. Summary and General Guidelines b. Diesel Truck Mechanics Instructional Lab c. Autobody Instructional Lab d. Automotive Service Instructional Lab e. Carpentry/cabinetmaking Instructional Labs docs/MASTERSpace_Planning_Guidelines%28.pdfhttp:// docs/MASTERSpace_Planning_Guidelines%28.pdf

Slide 39 Physical Security Design Guidelines - New! Added entire document in July docs/MnSCU_Physical_Security_Design_G.pdfhttp:// docs/MnSCU_Physical_Security_Design_G.pdf Good tool to review for general campus security. Great tips on site and building design, operations, lighting, classroom design, signage, etc.

Slide 40 National Conference – Society of College and University Planners (SCUP) Upcoming SCUP conference: July 11 – 14, 2010, Minneapolis, MN Great opportunity to hear national issues in a local venue Early bird registration: $725 member or /$900 non-member by April 30 Scholarship available: See Sally Check out the interesting map of the Twin Cities er%20ed%20inst%20map%20%2B%20locations _final-1.pdf er%20ed%20inst%20map%20%2B%20locations _final-1.pdf

Slide 41 FY Capital Budget Guidelines Questions on Guidelines?