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VII. STANDING COMMITTEES B. Finance and Asset Management Committee UW One Capital Plan There will be an oral report for information only. Attachments Attachment 1 – Capital Budget Background Attachment 2 – UW 10 Year Capital Plan Attachment 3 – Debt Capacity and Capital Planning Update

Attachment 1

Capital Budget Background

ATTACHMENT 1F–1.1/210-14 10/9/14

Capital Budget

The UW capital budget is generally developed and funded on a biennial basis. Because the state legislature did not pass a supplemental capital budget in 2014, there are no significant additions or changes to the capital budget presented to the Regents for approval last year. There are, in essence, three views of the capital budget. The first is a Ten-Year, One Capital Plan that is meant to identify all major capital budget needs at all campuses. This Plan provides a prioritized, but somewhat fluid document that changes as circumstances or funding mechanisms become available. The second layer is the state budget, which puts forth certain projects from the One Capital Plan for state funding. Note that not all projects in the UW’s plan would be identified for state funding (in other words, not all UW projects would appear on the state budget plan). The final view, “FY15 Projects for Review” is a snapshot of the projects that we would anticipate bringing to the Board of Regents for approval in the upcoming fiscal year. Possible FY15 Projects for Upcoming Regental Review: A summary of major capital projects likely to come before the Board of Regents for review and approval in FY15 is provided below, all of which may have a component of debt funding. Note that the estimated project costs may change as more information becomes available. Per policy, major capital projects over $15 million will return to the Board of Regents for approval on an individual project basis.

Athletics ICA Basketball Operations and Practice Center - $62 million Housing UW Bothell – Student Housing & Dining Phase 2 - $80 million UW Seattle Student Housing, North Campus – Haggett Hall Replacement - $103.7 million UW Seattle Student Housing, North Campus – McCarty Hall Replacement - $130.7 million UW Seattle Student Housing, North Campus – McMahon Hall Renovation - $143.3 million Infrastructure UW Bothell – Parking & Transportation Improvements - $26 million Instruction CAS – Life Sciences Building - $160 million CoE – Engineering and Computer Science Collaboration and Education - $109 million Research CoE – Molecular Engineering Phase II - $53 million South Lake Union 3.2 - $153 million

Ten-Year One Capital Plan: In preparation for the 2015-17 state capital budget submission, the UW Ten-Year One Capital Plan has been updated. A comprehensive list of proposed projects identified in the One Capital Plan is provided for information in Appendix 5. The Plan summarizes major proposed capital needs, aggregate minor capital needs and key planning initiatives in the 2015-17 biennium in conjunction with identified needs over the next ten years for all UW enterprises, including UW Seattle, UW Bothell, UW Tacoma, UW Auxiliary Units (Educational Outreach, Housing and Food Services, Intercollegiate Athletics, Parking and Transportation Services), and the UW Medical Center.

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Projects are presented in three categories: Fundamental, Funding Potential and Funding Opportunities. The first two categories align with potential capital funding. The last category represents additional capital needs that extend beyond capital funding expectations within the next ten years. The UW Capital Plan identifies possible fund sources for all UW capital projects including State of Washington Building Construction bonds, UW Building Account funds, UW debt, donor funds, and local funds. State appropriated capital funds continue to be critical to the UW Capital Budget. However, as the state’s ability to provide capital funding diminishes, the UW increasingly relies on other fund sources, including UW-issued debt, to finance capital projects.

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Attachment 2

UW 10 Year Capital Plan

ATTACHMENT 2F–1.2/210-14 10/9/14

UW Office of Planning and BudgetingUW 10 Year Capital PlanTotal Est

Cost ($,000)Proposed Projects by Tier and Program Use

Range

+/-

Total

Cost/ GSFGSF

IIII Fundamental ProjectsFundamental ProjectsFundamental ProjectsFundamental Projects

ClinicClinicClinicClinic

UWMC - Capital Improvements Construction and Equipment - - 244,800

UWMC - IT Core Applications and Infrastructure - - 169,500

InfrastructureInfrastructureInfrastructureInfrastructure

Metropolitan Tract Acquisition & Recapitalization - - 100,000

Minor Capital Repair - Preservation - - 553,862

Minor Capital Repair - Program Renewal - - 17,500

Planning - Emergent Planning Studies - - 1,400

Planning - UW Seattle Campus Master Plan Initiative - - 2,700

UW Preventative Facility Maintenance - - 155,650

UW Seattle - Strategic Real Estate Investment - - 50,000

UWIT - Network Routing Center Upgrades - - 8,000

InstructionInstructionInstructionInstruction

UW Seattle - Classroom Improvements - - 12,000

Sub Totals: - - 1,315,412

IIIIIIII Proposed Projects - Funding PotentialProposed Projects - Funding PotentialProposed Projects - Funding PotentialProposed Projects - Funding Potential

AthleticsAthleticsAthleticsAthletics

ICA - Basketball Operations and Practice Center 20%1,37845,000 62,000

ICA - Graves Hall Renovation 20%1,00030,000 30,000

ICA - Roadside Enhancement/Landscaping/Wayfinding 20%- - 2,000

ICA - Sand Volleyball Facility 20%- - 400

ICA - Soccer Grandstand and Related Support Facilities 20%1,06732,800 35,000

ICA - Softball Press Box Upgrades and Grandstand Roof and Expansion 20%- - 5,000

ICA - Team Operations Building for Track and Field and Soccer 20%47117,000 8,000

ICA - Track and Field Grandstands 20%- - 4,000

ClinicClinicClinicClinic

UWMC - Front Entrance - - 15,000

UWMC - Northwest Hospital Expansion 20%553150,000 83,000

HousingHousingHousingHousing

UW Bothell - Student Housing & Dining Phase 2 20%500160,000 80,000

UW Seattle Student Housing - North Campus - Haggett Hall Replaceme 15%557186,265 103,700

UW Seattle Student Housing - North Campus - McCarty Hall Replacem 15%785166,509 130,700

UW Seattle Student Housing - North Campus - McMahon Hall Renovati 15%556257,899 143,300

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UW 10 Year Capital Plan

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Total Est

Cost ($,000)Proposed Projects by Tier and Program Use

Range

+/-

Total

Cost/ GSFGSF

InfrastructureInfrastructureInfrastructureInfrastructure

Enterprise Information System - Student/Financial System Replaceme 20%- - 80,000

Major Infrastructure - C-wing Courtyard Membrane Replacement 20%- - 4,500

Major Infrastructure - Multiple Projects - - 65,000

Major Infrastructure - Pend Oreille Improvements 20%- - 28,000

Major Infrastructure - UWIT 4545 Data Center Upgrades 20%- - 2,000

Rainier Vista Corridor - Open Space Improvements - - 26,000

UW Bothell - Major Infrastructure Projects - - 15,750

UW Bothell - Parking & Transportation Improvements 20%- - 26,000

UW Bothell - Strategic Real Estate Investment - - 30,000

UW Seattle - Burke Gilman Trail Development 20%- - 28,400

UW Seattle - Campus Landscape Improvements - - 50,000

UW Seattle - Major Infrastructure Projects - - 86,850

UW Seattle Parking - E1 Improvements 20%- - 5,000

UW Seattle Parking - S-1 Garage structural maintenance and repairs 20%- - 7,300

UW Seattle Parking Mgmt Systems Procurement & Implementation 10%- - 7,100

UW Tacoma - Strategic Real Estate Investment - - 23,000

UW Tacoma Campus Development and Soil Remediation - - 72,500

InstructionInstructionInstructionInstruction

Burke Museum 10%1,06770,319 75,000

CAS - Eagleson Hall Renovation 20%70018,966 13,276

CAS - Gowen and Raitt Halls Renovation I 20%156117,000 18,200

CAS - Lewis Hall Renovation 10%86423,220 20,065

CAS - Life Sciences Building I 12%925173,000 160,000

CAS - Padelford Hall Renovation 20%123138,555 17,000

CAS - Smith Hall Renovation 20%27786,339 23,950

CoE - Academic Building Renovation 20%49560,000 29,700

CoE - Engineering and Computer Science Collaboration and Education 15%838130,000 109,000

CoEduc - Miller Hall Renovation 20%60672,655 44,000

CoEnv - Anderson Hall Renovation 20%65033,543 21,803

Engineering Library Learning Center Renovation 20%60040,000 24,000

Evans School - Parrington Hall Remodel 20%20458,775 12,000

Foster School of Business - McKenzie Hall Replacement 20%80043,000 34,400

Health Sciences Education Phase I - T Wing Addition/Renovation 20%786120,000 94,300

Health Sciences Education Phase II - T Wing Renovation 20%548162,400 89,000

Health Sciences Education Phase III - T Wing Renovation 20%550150,000 82,500

Health Sciences Interprofessional Education Classroom Phase I 20%30010,000 3,000

Information School - Building Renovation 20%40040,000 16,000

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UW 10 Year Capital Plan

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Total Est

Cost ($,000)Proposed Projects by Tier and Program Use

Range

+/-

Total

Cost/ GSFGSF

Interdiciplinary Classroom Building - Central Campus 20%66790,000 60,000

School of Dentistry - Dental School and CE Center 20%1,000260,000 260,000

SON - Nursing Simulation Learning Lab 20%40015,000 6,000

UW Botanical Gardens - Aboretum Education Building / Café 20%6258,000 5,000

UW Botanical Gardens - Outdoor Improvements 20%- - 2,850

UW Bothell - Phase 4 - Academic STEM 20%552105,000 58,000

UW Bothell - Phase 5 - Academic Life Sciences 20%60093,333 56,000

UW Bothell - Phase 6 - Academic Building 20%60083,333 50,000

UW Educational Outreach - Community Gateway Building 20%60080,000 48,000

UW Libraries - Archival Storage Sand Point Building 5 20%11172,000 8,000

UW Tacoma - McDonald Smith Renovation 20%27135,000 9,500

UW Tacoma - Swiss / Wild Renovation 20%44134,000 15,000

UW Tacoma - Tioga Renovation 20%37520,000 7,500

UW Tacoma - Urban Solutions Center - Classroom Building Renovation 15%87540,000 35,000

William H. Gates Hall - Law School Program Improvements 20%- - 4,000

ResearchResearchResearchResearch

Applied Physics Laboratory Research Building 20%800150,000 120,000

CAS - Guthrie Hall Addition 20%731160,000 117,000

CAS - Kincaid Hall Renovation 20%57685,000 49,000

CoE - Center for Advanced Materials and Clean Energy Technologies 20%1,000220,000 220,000

CoE - Center for Interdisciplinary Research & Education - Phase I 20%641220,000 141,000

CoE - Classroom & Research Renovation 20%50026,800 13,400

CoE - Innovation Collaboration Center 20%423300,000 126,800

CoE - Molecular Engineering Phase II 15%67978,000 53,000

CoEduc - Haring Center for Education Research and Teaching 20%40075,000 30,000

CoEnv - Research Vessel - Barnes Replacement 20%- - 13,500

Core Research Facilities - IT Upgrade 20%- - 1,700

Fluke Hall Renovation - C4C 2nd floor phase 2 20%3009,500 2,850

Health and Life Sciences - Hitchcock West 20%1,156150,000 173,400

Portage Bench Research Center - UW/NOAA/Partners 20%1,000250,000 250,000

SOM - South Lake Union Phase 3.2 15%895171,000 153,000

SOM - South Lake Union Phase 3.3 20%755262,000 197,700

SPH - Portage Bay Research Building I 20%808250,000 202,000

UW Tacoma - Innovation Partnership Zone - Phase 2 20%46760,000 28,000

UW Tacoma - Innovation Partnership Zone - Phase 3 20%50060,000 30,000

Student LifeStudent LifeStudent LifeStudent Life

Childcare Center Expansion 20%45020,000 9,000

Sub Totals: 4356,076,211 4,702,894

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UW 10 Year Capital Plan

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Total Est

Cost ($,000)Proposed Projects by Tier and Program Use

Range

+/-

Total

Cost/ GSFGSF

IIIIIIIIIIII Proposed Projects - Future Funding OpportunitiesProposed Projects - Future Funding OpportunitiesProposed Projects - Future Funding OpportunitiesProposed Projects - Future Funding Opportunities

AthleticsAthleticsAthleticsAthletics

ICA - Dempsey Indoor Facility Parking Garage 20%- - 6,000

HousingHousingHousingHousing

UW Bothell - Student Housing Phase 3 20%500110,000 55,000

InfrastructureInfrastructureInfrastructureInfrastructure

UW Seattle Parking - North Campus Garage 20%- - 15,000

UW Seattle Parking - UW Tower Garage Replacement 20%- - 24,000

InstructionInstructionInstructionInstruction

CAS - Academic Building - Repurpose Renovation 20%62580,000 50,000

CAS - Communications Building Renovation I 20%21280,000 17,000

CAS - Fine Arts Center & Library 20%344189,000 65,000

CAS - Fine Arts District 20%1,552279,000 433,000

CAS - Hutchinson Hall Renovation 20%67455,164 37,200

CAS - Renewal Program V 20%100124,000 12,400

CAS - Renewal Program VI 20%10073,000 7,300

CAS - Thompson Hall Renovation 20%79862,687 50,000

CoEnv - Building Renovation 20%58360,000 35,000

Health Sciences Education Phase IV - T Wing Renovation 20%367120,000 44,000

Health Sciences Renovation - AA Wing 20%22325,800 5,745

Health Sciences Renovation - B Wing - Dental School Improvements 20%40350,000 20,150

Health Sciences Renovation - BB Wing - Office Renovation 20%40050,000 20,000

Health Sciences Renovation - D Wing - Dental School Improvements 20%191115,000 21,925

Health Sciences Renovation - D&C Core - Office Repurpose 20%265185,000 49,000

Odegaard Undergraduate Learning Center Phase 2 20%30065,000 19,500

Robinson Center for Young Scholars 20%50010,000 5,000

UW Tacoma - Green Field Development 20%350250,000 87,500

ResearchResearchResearchResearch

CAS - Life Sciences Building II 20%868190,000 165,000

CoE - Center for Interdisciplinary Research & Education - Phase II 20%1,000150,000 150,000

CoE - Center for Interdisciplinary Research & Education - Phase III 20%1,000150,000 150,000

Core Research Facilities - ARCF II 20%1,54260,000 92,500

Core Research Facilities - K wing vivarium upgrades - - -

Core Research Facilities - T wing vivarium upgrades - - -

Foege West 20%1,100175,000 192,500

Health and Life Sciences - Hitchcock East 20%1,00070,000 70,000

Health Sciences Renovation - H Wing - Research Repurpose 20%417132,000 55,000

Health Sciences Renovation - H&F Core - Office Repurpose 20%235202,000 47,500

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UW 10 Year Capital Plan

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Total Est

Cost ($,000)Proposed Projects by Tier and Program Use

Range

+/-

Total

Cost/ GSFGSF

Health Sciences Renovation - I Wing - Office & Education Repurpose 20%237135,000 32,000

Health Sciences Renovation - RR Wing 20%750140,512 105,384

Portage Bay Research Building II 20%720250,000 180,000

Student LifeStudent LifeStudent LifeStudent Life

House of Knowledge Longhouse - Phase II 15%8308,432 7,000

OMAD - Instructional Center Renovation & Addition 20%1,12516,000 18,000

UW Bothell - Student Activity Center Phase 2 20%65223,000 15,000

Sub Totals: 5253,685,595 2,359,604

Total Tiers I, II, and III: 4259,761,806 8,377,910

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UW 10 Year Capital Plan

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Attachment 3

Debt Capacity and Capital Planning Update

ATTACHMENT 3

F–1.3/210-14 10/9/14

HOW DOES THE UW THINK ABOUT DEBT CAPACITY?DebtCapacity

andCapitalPlanning

Update

4

• Debt capacity provides context and information to senior leaders and the Boardabout the UW’s ability to fund capital

• The debt capacity analysis is a sizing exercise, based on growth and rateassumptions. It does not imply that any particular project is able to be funded.Each project must undergo a separate due diligence process and be approved bythe Board

• The debt capacity analysis is dynamic and can change for a variety of reasons,including interest rate projections, institutional growth assumptions, borrowingplans, and peer behavior

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IS DEBT CAPACITY SUFFICIENT TO MEET FUTURE CAPITAL NEEDS?DebtCapacity

andCapitalPlanning

Update

5

Based on current projections, the University can fund up to $1.1 billion over the next fiveyears through a combination of debt and reserves while maintaining its target financialratios. This is about $220 million per year.

Total Projected Capacity 3,715

Less: Debt Current Outstanding (in FY19) (2,400)

Less: Amount needed for previously approved projects (415)

5 year Debt Capacity 900

plus: projects funded from CAP program 200

Total Project Funding Capacity 1,100

2014Debt Capacity Projection ($ in millions)

NOTE: UW revenues and expenses are projected by business line, based on unit level assumptions,and summarized in an institutional forecasting model (Future Perfect)4 7/10/14

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