Five-Year Facilities Renewal and Capital Improvement Plan (Five-Year Plan) to

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1 Steve Relyea 401 Golden Shore, 5th Floor Executive Vice Chancellor and Long Beach, CA Chief Financial Officer DATE: May 25, 2017 TO: FROM: Presidents Steve Relyea Executive Vice Chancellor and Chief Financial Officer June 12, 2017 July 17, 2017 September 20, 2017 Draft Proposals Due Revised Proposals Due Final Document Review SUBJECT: Five-Year Facilities Renewal and Capital Improvement Plan (Five-Year Plan) to This memorandum is to request the campuses Five-Year Plan that identifies the need for facility renewal and capital improvement projects in preparation of the CSU Support request to the state. The Five-Year Plan is annually updated to document the campuses priority projects needed for the academic and self-support programs. It identifies the proposed project fund source(s), and identifies the projects approved in the previous five-year period. The projects included in the Priority List, along with the Five-Year Plan, will be presented to the board for final approval in November This memorandum also includes the list of infrastructure and energy projects that will be funded using bond proceeds and CSU reserves (Attachment 2). The likely fund source for the capital program is the CSU Systemwide Revenue Bond program for academic projects as approved by the board in November 2016 (RFIN/CPBG ). In addition, the CSU will request a permanent base budget increase for facilities projects as part of the support budget request. Lastly, Senate Bill 483 (Glazer) proposed a third possible fund source of General Obligation (GO) bonds, however that bill was recently placed in the Appropriations suspense file and its passage is uncertain at this time. visits are in process to discuss academic and self-support facility needs. This request for projects incorporates input received to date with the expectation that the draft and final Five-Year Plans, planned for the September 2017 and November 2017 board meetings respectively, will continue to evolve as we receive campus submittals and comments. The Schedule of Submissions is provided as Attachment 1. The submittal date for campus draft Capital Outlay Program submittals is June 12, which is later than earlier communicated based on the timing of this request. Priority Setting The proposed Categories and Criteria for priority setting of the Five-Year Plan was approved at the Board of Trustees May 2017 meeting. The proposed priority order for projects is: I. Existing Facilities/Infrastructure a. Critical Infrastructure Deficiencies b. Modernization/Renovation II. New Facilities/Infrastructure CSU es Bakersfield Channel Islands Chico Dominguez Hills East Bay Fresno Fullerton Humboldt Long Beach Los Angeles Maritime Academy Monterey Bay Northridge Pomona Sacramento San Bernardino San Diego San Francisco San José San Luis Obispo San Marcos Sonoma Stanislaus

2 Presidents May 25, 2017 Page 2 Capital Financing Update In March 2017, the bond sale 1 yielded $425 million to retire short-term loans and complete funding of approved projects. Due to favorable interest rates, approximately $24 million for systemwide projects, including energy efficiency, was secured and the planned allocation is noted in the Updated Infrastructure Improvement/Energy Project list (Attachment 2B). As noted above, the board approved a capital financing plan in November 2016 to commit $50 million per year for debt service to finance up to $1 billion in academic and infrastructure projects. Staff estimates that out of the $1 billion, roughly $750 million may be available to fund projects after accounting for the cost of issuance and estimated interest rates on future bond sales. The March 2017 bond sale also included funding for projects that were approved in (and not funded) and again approved by the board for the program. The sale resulted in the allocation of $204 million in proceeds to campuses. The approach for the remaining bond financing of $546 million ($750 million less $204 million) is to: 1) fund remaining phases of projects that have been started, estimated at approximately $358 million (this amount includes budget increases for greater than expected construction cost inflation and the cost impact of building code changes); and 2) fund infrastructure improvements of approximately $188 million. Should future interest rates be favorable and/or additional CSU capital reserves be available, further infrastructure improvements and/or initial design funds for new projects will be funded. Attachment 2 reflects the planned approach to use the multi-year financing to fund the capital program and those projects that remain for Attachment 2B identifies proposed project allocations based on the campus requests for Infrastructure Improvements and Energy Conservation projects. The list identifies proposed project allocations using $50 million in CSU reserves and $24 million in bond financing. The proposed allocations take into consideration recent funding levels, anticipated cost increases, repair of critical infrastructure, energy conservation, and assisting the development of contracts and approaches to upgrade building ventilation control systems. es are requested to begin design using campus designated reserves assuming agreement with the proposed project(s) to be funded pending receipt of the allocation orders through Plan Development Feasibility Studies All action year capital requests are encouraged to submit comprehensive feasibility study documentation. Guidelines for Feasibility Studies used in the development of action year budget requests are available at: 1 The March 2017 bond sale included tax-exempt (Series 2017A) and taxable funds (Series 2017B) for the and capital programs. The use of taxable bonds increases campus flexibility by providing certain projects more time to expend project funds.

3 Presidents May 25, 2017 Page 3 Comprehensive feasibility studies will help to ensure the campus programming is complete so that the budget request reflects the proposed scope of the work. funding of feasibility studies will be reported in the Five-Year Plan and may be included in the appropriate budget year. es may also use the outyear Feasibility Study short form to initiate the development of comprehensive studies during the planning period. Systemwide Infrastructure Improvement Program We encourage the campus to consider renovation projects that address both infrastructure, accessibility, and academic program needs. These projects may be budgeted in the roughly $3-5 million range. In preparing the Five-Year Plan, campuses are asked to consider this broader approach to facility renewal and capital improvements funded over the next five years. Enrollment Projections and Physical Capacity Enrollment and space capacity companion reports to the Five-Year Plan are key tools used for project planning and prioritization that will be updated as part of the Five-Year Plan process. The reports assume a flat enrollment from to and a one percent systemwide enrollment increase thereafter. es proposing projects to increase seats for lecture and/or labs are to submit projected enrollment increases by discipline. 1) Summary of Capacity Report with enrollment projections at: 2) Laboratory Enrollment FTES versus Laboratory Capacity FTES Report at: Self-Support Program Proposed projects must be reviewed and proformas approved by Financing & Treasury for projects to be included in the action year. Also, action year projects to address Student Housing, Faculty/Staff Housing, and Public-Private Partnerships that require review by the Housing Proposal Review Committee or Land Development Review Committee should be scheduled so that projects may be approved by September 1, Projects that do not make the deadline will be identified in the campus Five-Year Plan for , and may be amended into the capital program at a later date. Questions The submittals required to respond to this call for projects and the CSU Cost Guide are available online. Several support documentation forms have been modified to facilitate streamlined budget development. All program submittals, including projects previously submitted, should be updated using current forms. Access the information via our website: Select Facilities Planning, then either Call Letters, Forms, or Reference Documents, as needed.

4 Presidents May 25, 2017 Page 4 For specific program area questions, contact: Facilities Renewal and Capital Improvement submissions or questions on Attachment 2B, Updated Infrastructure Improvement Program Project List Larry Piper, Chief of Facilities Planning, Capital Planning, Design and Construction (562) , or your assigned CPDC Planner Financial documentation required to support self-support funded submissions Robert Eaton, Assistant Vice Chancellor, Financing & Treasury/Risk Management (562) Please submit all documents to Elvyra F. San Juan, Assistant Vice Chancellor, Capital Planning, Design and Construction. We thank you and your staff for your efforts to help prepare the plan to address facility renewal and capital outlay improvements. A special thanks is extended to those campuses that have already provided draft submittals, including Bakersfield, East Bay, Northridge, Sacramento, San Diego, and Sonoma, while this letter and the proposed allocations were being finalized. Staff will continue to identify process and policy changes to streamline the program production and facilitate project delivery. Attachment 1: Schedule of Submissions Attachment 2: Academic Projects Priority List Showing March 2017 Bond Proceeds Attachment 2B: Updated Infrastructure Improvements/Energy Project List Distribution: Provosts/Vice Presidents, Academic Affairs Vice Presidents, Administration Vice Presidents, Student Affairs Timothy P. White, Chancellor, The California State University Loren Blanchard, Executive Vice Chancellor/Chief Academic Officer, Chancellor s Office Ryan Storm, Assistant Vice Chancellor for, Chancellor s Office Robert Eaton, Assistant Vice Chancellor, Financing and Treasury/Risk Management, Chancellor s Office Kathleen Chavira, Assistant Vice Chancellor Advocacy and State Relations, Chancellor s Office Mary Meuel, Director, Advocacy and State Relations, Chancellor s Office Executive Facilities Officers Directors of Facilities Operations Building Coordinators Energy Managers Sustainability Officers Financing & Treasury Managers CPDC Planners

5 The California State University Attachment 1 Five-Year Facilities Renewal and Capital Improvement Plan through SCHEDULE OF SUBMISSIONS and PROCESS CALENDAR This schedule identifies the development milestones and reflects the iterative process used to develop the facilities budget requests and Five-Year Plan. January 10, 2017 Governor's proposed for March - June 2017 May 23-24, 2017 June 12, 2017* June 30, 2017 July 3, 2017 July 17, 2017 Summer/Fall 2017 Sept.1, 2017 Sept.1, 2017 Sept , 2017 Sept. 20, 2017 Sept. 29, 2017 Nov. 7-8, 2017 Dec. 1, 2017 Legislative Committee hearings on the budget. Board of Trustees approve Categories and Criteria for capital program. es submit their Draft Five-Year Plan, including Form 1-1 and project proposals for Capital Outlay (including Infrastructure Improvements), equipment lists, master plan map, facility legend, campus history, and self-support program financial plans to Financing & Treasury as appropriate. CPDC** submits to Presidents proposed project revisions and plan comments. Final Act confirms the support budget funding. es re-submit the project proposals and Five-Year Plan. Self-Support projects that require approval of the Housing Proposal Review Committee and/or Public-Private Partnership projects that require Land Development Review Committee review (for the board to consider initial concept) should be completing the review/approval process. site visits by Department of Finance (DOF) and other state entities. Financing & Treasury approves campus final financial plan for projects to be funded by bonds, including auxiliary projects, for the action year. CPDC submits preliminary (Draft) to Plan to DOF/Legislature. Board of Trustees approves Draft to Plan. es identify edits to Draft Five-Year Plan and related project documents. CPDC completes final edits to project proposals and Five-Year Plan considering campus comments. Board of Trustees approves the Final budget, capital financing requests and Five-Year Plan. CPDC submits the final budget request/project proposals for to DOF. January 10, 2018 Governor's proposal for February 1, 2018 March - June 2018 April 1, 2018 June 2018 DOF provides preliminary list of approved CSU projects to Legislature. Legislative Committee hearings on the budget. DOF submits final list of approved projects to CSU. es complete design architect selections/agreements for projects included in the budget. * Draft Submittal Date Extended from May 1 **CPDC is Capital Planning, Design and Construction Page 1 of 1 May 25, 2017

6 ACADEMIC PROJECTS PRIORITY LIST including Department of Finance (DOF) April 10, 2017 approved projects and March 2017 Bond Systemwide Revenue Bond Proceeds (Dollars in 000s) 16/17 17/18 18/19 Priority Order Capital Outlay Program Cost Estimates are at Engineering News Record California Construction Cost Index 6255 and Equipment Price Index 3298 Category Project Title FTE Phase Other SRB-AP* 1 IA Statewide Water Conservation - GO Bonds N/A PWC 4,000 4,000 2A IA Statewide Infrastructure Improvements ** N/A PWC 20, , , ,425 7, , ,000 2B IA Statewide Infrastructure Improvements ** N/A PWC 50,000 3 IB Statewide Solar Energy, Ph. 4 *** N/A PWC 204, , ,388 4 IB Bakersfield Humanities Building N/A E IB Pomona Administration Replacement Building N/A E 1,380 1,380 1,380 6 IB Dominguez Hills Center for Science and Innovation 43 CE 15,036 61,757 76,793 76,793 61,757 new 7 II Monterey Bay Academic Building III 1,500 WCE 1,307 34,864 36,171 36,171 34,864 new 8 IB Humboldt Jenkins Hall Renovation 435 PWCE 1,195 9,524 10,719 10,719 9,524 new 9 IB Chico Siskiyou II Science Replacement (Seismic) 25 PWCE 6,338 76,595 82,933 82,933 10,897 65,698 new 10 IB San José Interdisciplinary Science Replacement Building 294 PWCE 8, , , ,518 2, ,976 new 11 IB Los Angeles Physical Sciences (Seismic), Ph. 4 N/A CE 32,755 28,000 60,755 60,755 10,000 18,000 new 12 IB Fullerton McCarthy Hall Renovation, Ph. 1 0 PWC 8,000 32,000 40,000 40,000 12,726 19,274 new 13 IB Fresno Central Plant Replacement N/A PWCE 3,950 27,887 31,837 31,837 11,778 16,109 new 14 IB Long Beach Student Success/Peterson Hall 2 Reno (Seismic) 83 CE 2,814 38,208 41,022 41,022 38, new 15 IB Stanislaus Library Reno/Infrastructure Repairs (Seismic) 42 PWCE 3,141 52,195 55,336 55,336 1,889 50,306 new 16 IB East Bay Library Renovation (Seismic) N/A PWCE 7,235 74,755 81,990 2,269 2,269 72,486 new 17 IB Sonoma Stevenson Hall Renovation 0 PWCE 72,476 72,476 72,476 72, II Maritime Learning Commons TBD PWCE 1,208 26,340 27,548 27,548 27, IB San Luis Obispo Kennedy Library Renovation 566 PWCE 5,000 50,000 55,000 55,000 55, II Channel Islands Gateway Hall, Ph. 1 N/A PWCE 2,811 32,378 35,189 35,189 35, II San Bernardino Theatre Arts Building 18 PWCE 6,171 60,395 66,566 66,566 66, IB Northridge Sierra Hall Renovation, Ph. 1 0 PWCE 4,605 52,330 56,935 56,935 56, IB San Diego Electrical Utilities Upgrade, Ph. 1 N/A PWC 13,200 11,800 25,000 25,000 25, IB Sacramento Folsom 3rd Floor Improvements TBD PWCE 2,214 16,567 18,781 18,781 18, IB San Diego Dramatic Arts Renovation N/A PWCE 8,300 13,200 21,500 21,500 21, II San Marcos Applied Sciences and Technology Building 545 PWCE 4,605 27,239 31,844 31,844 31, IB Pomona Classroom Lab Building Renovation (Seismic) TBD PWC 2,367 44,636 47,003 47,003 47, IB San Francisco Science Replacement Building TBD P 5,607 5,607 5,607 5,607 Academic Projects 3,551 $ 377,808 $ 1,471,320 $ 1,849,128 $ 1,765,407 $ 204,294 $ 595,901 $ 1,163,449 Sum of 16/17 and 17/18= $ 800,195 P = Preliminary Plans W = Working Drawings C = Construction E = Equipment Categories: Notes: I Existing Facilities/Infrastructure * SRB-AP: Systemwide Revenue Bonds - Academic Program A. Critical Infrastructure Deficiencies ** The Infrastructure Improvements Program has been split into two lines with #2A reflecting future a future B. Modernization/Renovation SRB-AP bond sale of $188 million and #2B identifying proposed use of CSU Reserves of $50 million. II New Facilities/Infrastructure *** Third-party financed with solar energy/system purchase paid from support budget. This project is dependent upon state and non-state funding. CPDC likely to submit a new project for priority list. May 25, 2017 Reserves/ Trustees Approved DOF Approved March '17 SRB Bond Sale Future Bond Sale/ CSU Reserves Attachment 2 Future CSU Bond/ Possible GO Bond

7 Infrastructure Improvements/Energy Project List Cost Estimates are at Engineering News Record California Construction Cost Index 6255 and Equipment Price Index 3298 This list has been edited to combine Infrastructure Improvement projects with Energy Conservation projects. The energy projects shown in green were submitted for Cap and Trade funding, but will be funded with Systemwide Revenue Bonds for Academic Projects (SRB-AP) Attachment 2B ACADEMIC PROJECTS Reserves Proposed SRB-AP CSU SRB-AP Project Title Ph. Reserves CSU Reserves Series 2017B Bakersfield Lab/Lab Service Modernization/Infrastructure PWC 132,000 1,654,000 1,786, ,000 1,654,000 1,786,000 Humanities Classroom PWC 200, , , ,000 HVAC/EMS Controls Retrofit - Pilot PWC 1,400,000 1,400,000 1,400,000 1,400,000 Channel Islands Central Plant Upgrades PWC 1,121,000 1,121,000 1,121,000 1,121,000 North Hydronic Loop Extension PWC 602,000 9,519,000 10,121,000 1,000,000 1,000,000 Dominguez Hills Stormwater/Landscape PWC 600, , , ,000 HVAC/EMS Controls Retrofit - Pilot PWC 1,400,000 1,400,000 1,400,000 1,400,000 East Bay Library Annex Renovation (Seismic) PWC 500,000 3,400,000 3,900, ,000 3,400,000 3,900,000 Fresno Underground Utility Improvements PWC 541,000 4,871,000 5,412, ,000 4,871,000 5,412,000 Domestic Water Well Upgrade PWC 173, , , ,000 HVAC/EMS Controls Retrofit - Pilot PWC 1,400,000 1,400,000 1,400,000 1,400,000 Fullerton Visual Arts Complex Life/Safety Upgrades PWCE 738,000 4,262,000 5,000, ,000 4,262,000 5,000,000 Dan Black Hall VAV PWC 1,500,000 1,500,000 1,500,000 1,500,000 Humboldt wide Controls Upgrade PWC 100, ,000 1,001, , ,000 1,001,000 Long Beach Microbiology HVAC Replacement, Ph. 1 PWC 666,000 5,834,000 6,500, , ,000 Chiller No.1 Upgrade PWC 82, ,000 1,050,000 82, ,000 1,050,000 Maritime Academy Ship Boiler Replacement PWC 48, , ,000 48, , ,000 Domestic Water Pipe Replacement PWC 66, , ,000 66, , ,000 Monterey Bay Pilot Laundry Grey Water to Landscape PWC 100, , , ,000 Northridge Heating System Replacement, Ph. 3, 4 PWC 115,000 4,228,000 4,343, ,000 4,228,000 4,343,000 Electrical System Replacement, Ph. 3, 4 PWC 773,000 6,956,000 7,729, ,000 6,956,000 7,729,000 HVAC/EMS Controls Retrofit - Pilot PWC 1,400,000 1,400,000 1,400,000 1,400,000 Central Plant Chiller Upgrade PWC 1,014,000 1,014,000 1,014,000 1,014,000 Sacramento Fire Alarm System Upgrades, Ph. 2 * PWC 306, ,000 1,271, , ,000 1,271,000 San Bernardino Gas-filled Switch Replacement PWC 345, , , ,000 Biology Teaching Labs PWCE 206,000 2,713,000 2,919, ,000 2,713,000 2,919,000 Palm Desert-Health Science Energy Retrofits PWC 294, , , ,000 San Diego HVAC System and Fume Hood Replacement PWC 1,128,000 4,525,000 5,653,000 1,128,000 4,525,000 5,653,000 Extend Fire Sprinkler System PWC 175, , , , , ,000 Drain Pipe Replacement, Ph. 1 PWC 110, , , , , ,000 Energy Conservation MBCx and DDC Conversions PWC 1,000,000 1,000,000 1,000,000 1,000,000 Exterior Lighting PWC 1,022,000 1,022,000 1,022,000 1,022,000 San Francisco Romberg Tiburon Center Seismic Upgrade, Ph. 1 PWC 2,148,000 2,148,000 2,148,000 2,148,000 San Luis Obispo Central Heating Systems Repairs, Ph. 3 C 6,098,000 6,098,000 6,098,000 6,098,000 Hot Water Variable Flow Pumping and Exterior LED Retrofit PWC 1,070,000 1,070,000 1,070,000 1,070,000 San Marcos Craven Hall HVAC Upgrades PWC 215,000 3,033,000 3,248, ,000 3,033,000 3,248,000 Central Plant Generator PWC 108,000 1,428,000 1,536, ,000 1,428,000 1,536,000 Central Plant Boiler Replacement PWC 450, , , ,000 Exterior Lighting Retrofit PWC 1,000,000 1,000,000 1,000,000 1,000,000 Page 1 of 2 May 25, 2017 Project CO Proposed for Funding Project

8 ACADEMIC PROJECTS Reserves Proposed SRB-AP Project Reserves CO Proposed for Funding CSU SRB-AP Series 2017B Project Title Ph. CSU Reserves Sonoma Central Plant Main Switchgear PWC 836, , , ,000 Cooling Tower PWC 923, , , ,000 Ives Hall HVAC Replacement PWC 850, , , ,000 Replace transformers and switchgear (PE, Art, Courtyard) PWC 650, , , ,000 Stanislaus Central Plant Infrastructure, Ph. 1 PWC 76,000 76,000 76,000 76,000 Drama Air Handler Replacement PWC 114,000 1,425,000 1,539, ,000 1,425,000 1,539,000 Systemwide HVAC and Electrical Upgrades PWC 24,000,000 24,000, , ,984 EMS/EIS/Controls and Monitoring PWC 8,000,000 8,000,000 1,111,000 1,958,218 3,069,218 ACADEMIC Infrastructure Improvements Program Project $ 6,725,000 $ 117,918,000 $ 124,643,000 $ 5,457,000 $ 50,000,000 $ 26,291,202 $ 81,748,202 * Balance left to fully fund projects up to requests. Based on funding received to date from 2017A and 2017B SRB. Energy/Water Conservation Projects Page 2 of 2 May 25, 2017