CAPITAL PLAN AND CAPITAL BUDGET 67 CHAPTER 4 CAPITAL PLAN AND CAPITAL BUDGET Stanford s 2017/18 2019/20 Capita Pan and 2017/18 Capita Budget are based on projections of the major capita projects that the university pans to pursue in support of its academic mission. The roing Capita Pan incudes projects that are in progress or are expected to commence during the next three years. The Capita Budget represents the anticipated capita expenditures in the first of these years. Both the Capita Pan and the Capita Budget are subject to change based on funding avaiabiity, budget affordabiity, and university priorities. At amost $4.3 biion, the Capita Pan refects the argest capita program in Stanford s history. It demonstrates the significant investment Stanford continues to make in its faciities, driven by the academic priorities for teaching, research, and reated activities, described in Chapter 2, and the initiatives of the administrative and auxiiary units that support the academic mission, described in Chapter 3. It aso demonstrates Stanford s commitment to student and facuty housing, with 47% of the pan aocated to buiding, acquiring, or renovating new and existing housing inventory. Significant exampes of this commitment are the $1.1 biion Escondido Viage (EV) Graduate Residences, which wi increase the graduate student housing stock by 2,020 net new beds, and the $500 miion Housing Acquisition Initiative for facuty and staff. With the 2016/17 project competions, Stanford wi have invested approximatey $6 biion in its faciities, infrastructure, and commercia rea estate since 2000. Across the campus, aging faciities have been repaced with new and renovated buidings capabe of supporting cutting-edge science, engineering, medicine, and the coaborative research among them, as we as with new faciities for business, athetics, aw, and the arts. Off-campus commercia deveopment projects provide additiona income to the university. In addition to the many projects currenty under way and previousy forecasted, the Capita Pan now incudes the foowing new projects: Tenant Improvements at 3145 ($58.8 miion) and 3172 ($15.8 miion) Porter Drive, a new Emergency Operations Center/Eectronic Communications Hub (EOC/ECH) ($35.1 miion), new facuty homes at Cabrio/ Doores ($18 miion), and renovations at both the Li Ka Shing Center ($10 miion) and the Center for Advanced Study in Behaviora Sciences ($9.8 miion). The foowing ten significant projects make up 81% of Stanford s Capita Pan: the EV Graduate Residences ($1,091.7 miion), Stanford Redwood City Phase 1 ($568.8 miion), the Housing Acquisition Initiative ($500 miion), the Neuro/ChEM-H (Chemistry, Engineering & Medicine for Human Heath) Research Compex ($257 miion), Center for Academic Medicine 1 (CAM 1) ($222.9 miion), BioMedica Innovations Buiding 1 and Tunne (BMI 1) ($210 miion), Midde Paza at 500 E Camino Rea Residentia ($182 miion), University Terrace Facuty Homes ($176.5 miion), the Anne T. and Robert M. Bass Bioogy Research Buiding (Bass Bioogy Buiding) and associated projects ($152.2 miion), and the new Earth, Energy & Environmenta Sciences Buiding ($100 miion). The remaining 19% of the Capita Pan comprises 24 projects and 8 infrastructure programs. For a detaied isting of a Capita Pan projects and programs, see the tabes on pages 82 84. The Capita Pan accounts for the ong-term budget impacts on operations, maintenance, and utiities (O&M) and debt service. These obigations are incuded in the university s ong-range budget panning. This chapter provides an overview of the capita panning process, describes current strategic initiatives, presents the 2017/18 2019/20 Capita Pan and reated constraints, and discusses the 2017/18 Capita Budget.
68 CAPITAL PLAN AND CAPITAL BUDGET CAPITAL PLANNING OVERVIEW CAPITAL PLANNING AT STANFORD Stanford s Capita Pan is a three-year roing pan with commitments made for projects with fuy identified and approved funding. Cash fow expenditure forecasts for these projects extend beyond the three-year period, and budget impacts on O&M and debt service wi commence at construction competion. The pan incudes forecasts of both cash fow and budget impacts by year, as we as the impacts of projects beyond the three-year period (see tabes on page 76). The Capita Pan is set in the context of a onger-term capita forecast. The detais of this forecast, particuary funding sources and schedues, are ess cear than those of the threeyear pan, as the needs and funding sources that may emerge over the ong-term horizon are difficut to anticipate. Pans tend to evove as some projects prove more feasibe than others based upon shifting funding reaities and academic priorities. STRATEGIC INITIATIVES The foowing university strategic initiatives are integra to this year s Capita Pan: n Stanford Redwood City n EV Graduate Residences n Genera Use Permit n Growth and transportation n Campus circuation and parking Stanford Redwood City Stanford s pans for an off-site administrative campus in Redwood City continue to move forward. Consistent with the strategic deveopment envisioned with the 2005 acquisition of the Redwood City property, seect administrative staff wi reocate to this site in order to preserve core campus space for the university s highest academic priorities. Pans have commenced to impement a comprehensive Phase 1 deveopment of 653,647 square feet (sf) 565,777 sf of office buidings, 78,262 sf of amenity buidings, and 9,608 sf of utiity and IT infrastructure as we as parking for 1,702 vehices. Site work, demoition, and foundations have commenced with construction for the core and she anticipated to begin in spring 2017. Fu buid-out of the 35-acre parce is capped at 1,518,000 sf, as detaied in the Stanford in Redwood City Precise Pan. Stanford does not have specific pans for the timing or composition of the remaining square footage of the campus at this time. The prospective Phase 1 wi accommodate about 2,700 staff: Schoo of Medicine (SoM), incuding Medica Center Deveopment (946); Business Affairs (893); Land, Buidings and Rea Estate (LBRE) (170); the Office of Deveopment (154); University Human Resources (135); Continuing Studies (85); Libraries (73); Residentia & Dining Enterprises (R&DE) (73); the Vice Provost for Teaching and Learning (25); and other tenants yet to be confirmed (100). The deveopment and subsequent move wi free up amost 150,000 sf on campus as we as in the Stanford Research Park; space in the atter wi then be re-eased to third-party tenants at market rates, increasing revenues to Stanford. Stanford Redwood City gives the university an opportunity to provide its administrative staff with an outstanding, sustainabe, and heathy workpace environment. This new campus wi comprise Cass A office buidings, conference and dining faciities, a fitness center with ap poo, and a chid care center. A 2.5-acre park, mutipe courtyards, and a greenway connecting the entire campus wi create an attractive setting. EV Graduate Residences Stanford s bod commitment to buid a 1.8 miion-sf residentia compex with 2,431 new graduate beds responds to a critica need to provide additiona graduate student housing on campus in an undersuppied and escaating housing market. The construction of the EV Graduate Residences supports the campus and use strategy to increase the density of Escondido Viage in order to provide adequate housing for a growing graduate student popuation, and enabes the university to devote other areas of the core campus to undergraduate housing and academics. The new compex wi primariy house singe graduate students, athough units wi be avaiabe for coupes without chidren. Demoition of existing two-story buidings that house approximatey 400 students wi be required, resuting in an overa gain of 2,020 net new beds. The variety of apartments buids upon the suite modes of premium studios, two-bedroom suites, and junior studio suites, as offered in the neighboring Kennedy Graduate Residences. The four new residence has wi each provide ounges, hudde rooms, aundry rooms, exercise areas, and music practice spaces.
CAPITAL PLAN AND CAPITAL BUDGET 69 In addition to housing students, a primary objective of this project is to provide opportunities to buid a vibrant sense of community among the graduate students and to encourage strong connections to the campus. The two-story market paviion, entry tower, and associated arcade wi face the campus and define an inviting gateway into Escondido Viage from the terminus of Serra Ma. These community gateway components, which wi incude a café/bar, a grand ounge, and a mini-market for onine shopping and pick-up, wi aso provide an architectura scae that is comfortabe and tempers the height of the residentia wings. The arcaded court and hardscape, as we as the more casua commons space, wi support programs that wi serve as the hub for graduate ife. The centra commons wi face and engage the existing EV greenway and be programmed and energized by a range of activation components (i.e., outdoor seating and eating, event space, coffee cart, art, etc.). This project incudes two new underground parking structures to support the graduate students and community. Manzanita Garage wi house 850 parking spaces with passive recreation space above. The EV parking structure to be constructed aong Serra Street wi house 350 parking spaces with additiona spaces above to accommodate ADA requirements, oading, and service. The construction of the EV Graduate Residences and parking garages wi take pace over three years, with occupancy targeted for fa 2020. Genera Use Permit Stanford has submitted an appication to Santa Cara County for an updated Genera Use Permit (GUP) to guide campus panning over the next two decades. This permit is known as the 2018 GUP due to expected approva in 2018. Stanford has been operating under two key Santa Cara County entitement documents: a Community Pan and a 2000 GUP. The Community Pan provides a set of rues and poicies to guide the university s and use panning over an extended period of time. The GUP impements those poicies and incudes specific conditions to minimize the impacts of Stanford s deveopment. The 2000 Community Pan and GUP were intended to provide Stanford with fexibiity in its and use within an agreedupon framework, with accountabiity to the county, neighbors, and the campus communities. Stanford s appication for the 2018 GUP incudes a deveopment request for 2.275 miion sf of academic faciities and 3,150 housing units/student beds, with construction expected to be competed by 2035. This next GUP wi hep Stanford address emerging teaching, research, and housing needs over this time period. Growth and Transportation Reduction of trips to the campus is ikey the most difficut chaenge and one that may constrain the university s future growth. Though Stanford has a tremendous track record with its award-winning Transportation Demand Management (TDM) programs, the university must do more, not ony for the core campus but aso for other Stanford ands. Informed by extensive studies with mutipe transportation experts as we as an innovative transportation mode choice mode, Stanford has deveoped a matrix of choices and actions that can be impemented to improve the oca transportation network. The region s network is at capacity at peak times, and no siver buet exists to sove this regiona probem. It wi ikey take years of constant prioritization to make a positive impact. The university wi continue to focus on this effort and work coaborativey with arge private empoyers, neighbors, oca agencies, and transportation speciaists to identify and impement incrementa programs that mitigate traffic impacts and improve the regiona network. Stanford wi aso continue recent efforts to support and faciitate deveopment of arge-scae regiona soutions, such as Catrain eectrification and the 101 High Occupancy Vehice (HOV) ane through San Mateo County. A number of and use panning efforts focused on future growth are now under way. These incude strong emphases on major circuation patterns and transit system options as we as on identifying how and use choices can optimize transportation and TDM options. Campus Circuation and Parking As Stanford continues to expand its core campus footprint as we as increase its density, campus panners have identified aternatives for improving circuation, reducing congestion, and promoting safety. The measures that the university has prioritized wi have positive impacts on campus circuation and service, vehicuar traffic, and the safety of bicycists and pedestrians. East Campus Circuation Circuation and parking wi be reconfigured on the east campus to accommodate significant capita projects incuding the EV Graduate Residences, Pubic Safety Buiding, and the EOC/ECH. The components of the work in this area incude:
70 CAPITAL PLAN AND CAPITAL BUDGET STANFORD S COMMITMENT TO HOUSING From its eariest days, Stanford has focused on supporting a residentia academic environment. Currenty, Stanford provides on-campus housing for amost a undergraduate students, just over 50% of graduate students, and about one-third of Stanford facuty members. Stanford prioritizes use of its core academic ands to house students and facuty because housing students and facuty in cose proximity fosters coaboration and earning. Staff and other affiiated housing has been provided outside of the academic campus ands, in nearby jurisdictions. Stanford s commitment to housing of a types is evident in the current Capita Pan. In tota, housing projects represent $2.0 biion, or amost haf of the entire 2017/18-2019/20 Capita Pan. The tabe beow provides a consoidated ist of a current housing projects foowed by a more detaied description of the individua projects: EV Graduate Residences is the argest capita project in Stanford history. The project wi add 2,020 net new graduate beds in Escondido Viage, raising the percentage of graduate students housed to approximatey 75%, from just over 50% today. The project incudes construction of approximatey 1,200 parking spaces (750 net new) in two underground structures. Unit types wi incude premium studio, two-bedroom, and junior studio apartments. Amenities are panned to incude a market paviion that houses a café, mini-market, and grand event ounge; a arge muti-purpose room; meeting and hudde spaces; music practice spaces; and technoogy resource spaces. The Housing Acquisition Initiative recognizes that Stanford s housing strategies are necessariy muti-pronged. The Board of Trustees approved this initiative to expand Stanford s housing suppy by acquiring and or residentia units proximate to, or within easy transit of, campus. The Coonnade apartment community was purchased under this initiative and provides 167 units of housing for facuty and staff. The program is anticipated to yied a combination of renta units for facuty and staff and singe-famiy homes avaiabe for purchase by facuty on the affordabe restricted ground ease. Midde Paza Residentia is a new mixed-use deveopment under appication with the City of Meno Park. The project is expected to incude 215 muti-famiy renta units, which wi be made avaiabe to facuty and staff. Unit types are expected to comprise both one- and two-bedroom apartments. University Terrace Facuty Homes is a 17-acre deveopment in Pao Ato consisting of 68 singe-famiy homes and 112 condominiums. A units wi be made avaiabe to facuty for purchase at affordabe prices through use of the restricted ground ease. Amenities wi incude a community center buiding, fitness center, and poo. Cabrio/Doores Facuty Homes is currenty under design deveopment and wi consist of 8 homes in the facuty subdivision. Two university-owned homes ocated aong Doores wi be demoished to make way for this project, which wi add much-needed affordabe homes within the neighborhood. Renovations of Rains and Schwab support and maintain Stanford s existing student housing stock. 2017/18 2019/20 Number of Capita Pan Project Description Resident Type Beds/Units (in miions of doars) New Housing Additions EV Graduate Residences Graduate Students 2,020 net new beds 1,091.7 Housing Acquisition Initiative Facuty and Staff 270 1 units 500.0 Midde Paza Residentia Facuty and Staff 215 units 182.0 University Terrace Facuty Homes Facuty 180 units 176.5 Cabrio/Doores Facuty Homes Facuty 8 units 18.0 Renovations of Existing Housing Various Renovations Graduate Students n/a 59.9 Tota 2,028.1 1 Acquisitions of 270 units are anticipated over the next 7-8 years
CAPITAL PLAN AND CAPITAL BUDGET 71 Campus Drive/Serra Street Roundabout The roundabout wi repace two separate existing intersections, improve pedestrian crossings, and reconfigure the barres of Campus Drive with dedicated bike anes and a uniform andscaped median. Serra Ma Cosure The pan to cose Serra Ma from Gavez Street to Campus Drive for pedestrians, bikes, and shuttes requires the competion of enabing projects incuding reconfigured service areas and parking at Encina Ha, service improvements at Burnham Paviion, and a new drop-off at Schwab Graduate Residences. These projects are important because Serra Ma is the primary path for infrastructure improvements for the major capita projects on the east side of campus. Serra Street Reconfiguration Enhancements panned on Serra Street from Campus Drive to E Camino incude improving vehicuar anes, reconfiguring intersections and pedestrian crossings, upgrading bike anes, and adding transit and drop-off areas. Manzanita Garage This faciity wi buid on the best practices of the Wibur and Robe parking structures, with parking beow grade and a recreation fied above. The 850 new spaces wi support, in part, the needs of the EV Graduate Residences. EV Parking Structure This beow-grade faciity aong Serra Street wi incude 350 spaces with additiona parking above. Bonair Siding Road To provide safe access to the new Pubic Safety Buiding and EOC/ECH, Bonair Siding Road wi be reconfigured to incude appropriate vehicuar anes, bike anes, sidewaks, and ighting. West Campus Circuation Modifications to the circuation on the west side of campus wi accommodate the future Neuro/ChEM-H Research Compex, the Bass Bioogy Buiding, and CAM 1. The components of this work incude: Serra Ma Extension To promote connections, improve pedestrian safety, and faciitate Marguerite shutte circuation, Serra Ma wi extend to an improved intersection at Foundations Way and Campus Drive. Via Puebo Extension To faciitate service, Via Puebo wi extend from Via Ortega to Panama Street. North/South Axis Improvements to the North/ South Axis from Serra Ma to Roth Way wi provide a safe bike/pedestrian connector. New Parking Structure 854 new parking spaces (550 net new) wi be constructed beow the CAM 1 buiding. Roundabouts The roundabout instaations on Campus Drive at the intersections of Escondido Road, Bowdoin Street, Santa Teresa Street, and Gavez Street are evidence of how circuation can improve without compromising bicyce and pedestrian safety. In addition to the Campus Drive/Serra Street roundabout that is a key component of our east campus improvements, three additiona roundabouts wi be studied at the intersections of Gavez Street/Arboretum Road, Campus Drive/Mayfied Avenue, and Campus Drive/Roth Way. THE CAPITAL PLAN, 2017/18-2019/20 Stanford s academic campus, incuding SoM but excuding the hospitas, has over 700 faciities providing neary 18.8 miion sf of space, incuding approximatey 5.3 miion sf for student housing units and 2.4 miion sf for parking structures. The physica pant has a historica cost of $9.3 biion and an estimated repacement cost of $12.7 biion. The Capita Pan incudes a forecast of Stanford s annua programs to restore, maintain, and improve campus faciities for teaching, research, housing, and reated activities and outines Stanford s needs for new faciities. The Capita Pan is compied, reviewed, and approved in a coordinated manner across the university. The pan carefuy baances institutiona needs for new and renovated faciities with the chaenging constraints of imited deveopment entitements, avaiabe funding, and budget affordabiity. Projects isted in the Capita Pan are those approved by the provost. Many are under the purview of the Board of Trustees. Board-eve approva is required for projects meeting specific criteria, incuding: n Projects with a tota cost of $10 miion and above. n New buiding construction (incuding facuty housing). n Projects that use 5,000 or more new sf within the academic growth boundary.
72 CAPITAL PLAN AND CAPITAL BUDGET n Changes in and use. n Projects with major exterior design changes. Projected expenditures in the 2017/18 2019/20 Capita Pan, which incude major construction projects in various stages of deveopment and numerous infrastructure projects and programs, tota $4.3 biion. The tabe beow provides a comparison of the current and the ast two Capita Pans. COMPARATIVE CAPITAL PLANS [IN MILLIONS OF DOLLARS] 2017/18 2016/17 2015/16 Design/Construction 2,890.7 2,213.5 1,521.9 Forecasted 608.5 1,062.1 862.0 Infrastructure and Other 779.7 809.0 514.3 Tota 4,278.9 4,084.6 2,898.2 This year s pan is $194.3 miion (5%) higher than ast year s. New projects and scope and corresponding budget increases for existing projects have more than offset projects competing in 2016/17. PROJECTS IN DESIGN AND CONSTRUCTION Projects in design and construction tota $2.89 biion (68% of the pan). Construction of these projects is contingent upon fundraising of $130.1 miion (5%). This category comprises 18 projects, as shown in the tabe on page 82. The cost of projects in design and construction has gone up by $677.2 miion from 2016/17 as a resut of the advancement of projects from the forecasted category and budget increases, partiay offset by project competions. Projects moving from the forecasted to the design and construction stage incude CAM 1 ($222.9 miion), BMI 1 ($210 miion), the Pubic Safety Buiding ($31.5 miion), Encina Compex Upgrades ($25.8 miion), the Athetic Academic Advising and Rowing Buiding (AAARB) ($25 miion), Denning House ($23.1 miion), Environmenta Heath & Safety Faciity Expansion ($16.5 miion), two chidren s centers ($19 miion tota), Schwab Residentia Center Renovations ($11.3 miion), and four District Work Centers ($8.5 miion). Projects schedued to be competed in 2016/17 and thus excuded from the pan incude the David and Joan Traite Buiding ($65 miion) and the Kingscote Renovation ($17.5 miion). FORECASTED CONSTRUCTION PROJECTS Forecasted projects are those anticipated to receive Board of Trustees approva over the next three years. These projects tota $608.5 miion (14% of the pan) and are isted on page 83. Like those in design and construction, these projects are contingent upon funding. For this group, $161.8 miion (27%) remains to be fundraised, and $24.9 miion (4%) has yet to be identified. Project costs within this category have decreased by $453.6 miion from 2016/17. A number of projects have moved into the design and construction category, as noted above. This decrease is partiay offset by new projects added to this year s Capita Pan, incuding Tenant Improvements at 3145 ($58.8 miion) and 3172 ($15.8 miion) Porter Drive, a new EOC/ECH ($35.1 miion), new facuty homes at Cabrio/ Doores ($18 miion), and renovations at both the Li Ka Shing Center ($10 miion) and the Center for Advanced Study in Behaviora Sciences ($9.8 miion). INFRASTRUCTURE AND OTHER PROGRAMS The Housing Acquisition Initiative and Stanford s ongoing efforts to renew its infrastructure are refected in a budget of $779.7 miion (18% of the pan) and are isted on page 84. Infrastructure and Other Programs costs have decreased $29.3 miion from ast year. The argest program in this category is the Housing Acquisition Initiative. Estabished in 2014, this program refects the high priority that Stanford paces on its abiity to provide affordabe housing options for existing and prospective facuty and staff. In recognition of this critica need, the Board of Trustees has increased the overa funding of this program, originay estabished at $200 miion, to a tota of $500 miion. Infrastructure programs incude the Investment in Pant (Panned Maintenance) Program, the Stanford Infrastructure Program (SIP), the Capita Utiities Program (CUP), upgrades to Information Technoogy and Communications Systems, the R&DE Major Renovation Pan, Whoe Buiding Energy Retrofit Program Group 2, Storm Drainage projects, and a Campus Drive roundabout. SIP projects are funded through construction project surcharges. The other projects are funded by centra funds, debt, and/or service center charge-out rates.
CAPITAL PLAN AND CAPITAL BUDGET 73 Investment in Pant (Panned Maintenance) Program Annua Investment in Pant assets represent the maintenance funds panned to be invested to preserve and optimize Stanford s existing faciities and infrastructure (e.g., pathways, outdoor structures, and grounds). These projects are based on ife cyce panning, the key concept being that ife expectancies of faciity subsystems are known and, as a resut, maintenance schedues can be predicted. The three-year estimated program cost is $156.4 miion. Stanford Infrastructure Program SIP consists of campus and transportation projects and programs for the improvement and genera support of the university s academic community, hospitas, and physica pant. SIP expenditures are expected to tota $43.2 miion over the next three years (excuding funding for repacement parking spaces). SIP projects incude campus transit, parking ot infrastructure, and site improvements; andscape design and enhancements; bicyce, cart, and pedestrian path construction; and ighting, signage, and outdoor art instaations. This year s pan incudes $25.4 miion to fund campus infrastructure projects. Capita Utiities Program The $36.2 miion, three-year CUP pan wi improve eectrica, hot water, water, chied water, and wastewater utiity systems. The CUP covers expansion of systems as required by campus growth ($20.5 miion) and repacement of systems that are near the end of their usefu ife ($15.7 miion). Information Technoogy and Communications Systems The university s computing and communications systems provide comprehensive data, voice, and video services to the campus community. Over time, these systems must be improved and/or repaced to maintain a consistenty high eve of service. Additionay, new technoogies provide more efficient, faster, and/or more cost-effective soutions. Panned upgrades to these critica university systems tota $16.8 miion, incuding $2.4 miion to repace systems at two ECHs. R&DE Major Renovation Pan This Residentia & Dining Enterprises (R&DE) program addresses heath and safety issues, seismic upgrades, code compiance, energy conservation and sustainabiity, and major programmatic improvements in the student housing and dining physica pant. Projects anticipated over the next three years tota $11.4 miion and incude phased instaation of new sprinkers and fire aarm systems in Escondido Viage high-rise and ow-rise housing. Competed projects wi be maintained through the Stanford Housing, Dining, and Hospitaity Asset Renewa Programs. Whoe Buiding Energy Retrofit Program Group 2 This retrofit program seeks to reduce energy consumption in Stanford s argest energy-intensive buidings. The program began in 2003/04 with studies of the top 12 energy-consuming buidings, representing $15.9 miion of energy expenses per year, or neary 36% of the campus tota. It has since been expanded to additiona arge energy-consuming buidings. The retrofits competed thus far have deivered annua energy cost savings of $4.7 miion (a payback of ess than four years) and PG&E rebates of $2.2 miion. The forecasted cost for future projects is $7.2 miion. Detais of this program are shown in the tabe on the foowing page. Storm Drainage The ongoing storm drainage program incudes projects for improving and expanding the capacity of the campus storm drainage system, buiding storm water detention faciities, repacing deteriorated pipes, and improving drainage around buidings. In addition, recenty adopted storm water quaity reguations necessitate new storm water treatment approaches, such as bioswaes and bioretention faciities, to minimize conveyance of contamination from common storms to natura water bodies. These approaches wi be incorporated regionay or on new buiding sites, as appropriate. New approaches invoving storm and irrigation water runoff capture and reuse wi aso be impemented where appropriate. The Capita Pan aso incudes improvements to the storm drainage system in the facuty/staff housing area of campus, adding storm drainage infrastructure where none exists and upgrading existing drainage infrastructure to conventiona eves of protection. The three-year estimated program cost is $4.5 miion. Campus Drive Roundabout As previousy discussed, Stanford pans to construct a roundabout at Campus Drive and Serra Street at a cost of $4 miion.
74 CAPITAL PLAN AND CAPITAL BUDGET WHOLE BUILDING ENERGY RETROFIT PROGRAM ESTIMATED ANNUAL ACTUAL PROJECT RETROFIT STATUS CONSUMPTION SAVINGS SAVINGS Stauffer I - Chemistry Compete 38% 46% Gordon & Betty Moore Materias Research 1 Compete 32% 10% Pau Aen Center for Integrated Systems (CIS) Compete 15% 14% Forsythe (George) Ha Compete 8% 8% Stauffer II - Physica Chemistry Compete 38% 43% Gates Computer Science Compete 29% 27% Beckman Center for Moecuar and Genetic Medicine Compete 46% 32% Gibert Bioogica Sciences Compete 35% 32% Cantor Center for Visua Arts Compete 13% 14% Bing Wing (Green Library West) Compete 16% 50% Packard Eectrica Engineering Compete 26% 37% Arriaga Aumni Center Compete 27% 31% RAF I Compete 11% 11% RAF II Compete 30% 30% CIS Distributed Digita Contro 2 Compete 5% TBD Cark Center 2 Compete 11% TBD Green Earth Sciences Design 15% Varian Physics Laboratory Design 24% Mechanica Engineering Laboratory Construction 24% Keck Science Study compete 20% Center for Cinica Sciences Research (CCSR) Study compete 13% 1 Construction scope reduced from origina survey. 2 Actua savings to be verified. Other Stanford Entities In an effort to present a comprehensive view of universitypanned construction, the capita panning process has incuded Stanford s commercia rea estate investments, Stanford Heath Care (SHC), Lucie Packard Chidren s Hospita (LPCH), and SLAC Nationa Acceerator Laboratory. Athough the tabes at the end of this chapter do not incude these entities (with the exception of academic projects managed by Stanford Rea Estate), brief descriptions of the rea estate, SHC, and LPCH capita programs foow. The SLAC capita programs are addressed in Chapter 2. Rea Estate LBRE s Rea Estate department (Rea Estate) is managing ten projects totaing $1.25 biion in various stages of panning and deveopment on Stanford ands. Six of these are commercia rea estate investment projects. These are 3170 Porter Drive, 3181 Porter Drive, 3406 Hiview Avenue, 2131 Sand Hi Road, the Midde Paza office buidings, and renovations at the Od Winery (formery the Stanford Barn). The university is the beneficiary of the income from these investments. Academic projects managed by Rea Estate are Stanford Redwood City Phase 1, which broke ground in January 2017, and three new housing deveopments: University Terrace Facuty Homes in Pao Ato, Midde Paza at 500 E Camino Rea Residentia in Meno Park, and the Cabrio/Doores Residences in the facuty subdivision. University Terrace wi provide 180 units for facuty purchase, with the first units being deivered by June 2017. The remaining two housing projects are currenty in the panning phase. Stanford Heath Care and Lucie Packard Chidren s Hospita Stanford Medicine s Renewa Project incudes the deveopment of approximatey 1.3 miion sf of net new hospita, cinic, and medica office space on the main medica campus and the Hoover medica campus. The project received deveopment entitements from the City of Pao Ato in 2011, and
CAPITAL PLAN AND CAPITAL BUDGET 75 significant project miestones have been achieved since that time. Major utiity upgrades to serve the new medica faciities have been competed aong Wech and Quarry Roads. A improvements on the Hoover medica campus are compete, incuding the renovation of the historic Hoover Paviion, the construction of a new 1,070-car parking structure, and the construction of a 92,000-sf Neuroscience Heath Center, which opened for patient care in January 2016. On the main medica campus, construction of both the new SHC paviions and the LPCH expansion continues to progress, with interior finish work, buiding systems testing, and site work currenty underway. The SHC and LPCH hospita projects are estimated to cost $2.0 biion and $1.3 biion respectivey, with anticipated competion in 2018/19 for SHC and 2017/18 for LPCH. OVERALL SUMMARY A tabe summarizing the 2017/18 2019/20 Capita Pan appears on the next page. It incudes projects and programs in the design and construction and forecasted stages, as we as infrastructure and other categories that are currenty active or are anticipated to commence in the next three years. The expenditures necessary to compete the three-year Capita Pan are anticipated to extend beyond 2019/20. To differentiate between the estimated costs of the pan and the forecasted spending to compete projects and programs, an additiona tabe (Capita Pan Cash Fows) forecasts the Capita Pan expenditure cash fow based on project and program schedues. O&M and debt service costs for each project wi impact the university s budget once construction is substantiay compete. Athough the Capita Pan Summary shows the fu budget impacts of a competed projects, it is important to note that these impacts aign with the project competion schedue and wi therefore be absorbed by the university budget over a period beyond the three-year pan. The Capita Pan Impact on Budget tabe forecasts these budget impacts by area of responsibiity (e.g., genera funds, formua schoos). The tabes at the end of this chapter provide a detaied ist of the projects incuded in the Capita Pan. Capita Pan Funding Sources As the pie chart shows beow, Stanford s Capita Pan reies on severa funding sources, incuding current funds, gifts, and debt. Depending upon fundraising reaities and time frames, some projects wi prove more difficut than others to undertake. As a resut, it is possibe that projects in the Capita Pan wi have to be canceed, deayed, or scaed back in scope. For any projects reying on gifts to be raised, the Office of Deveopment has determined that fundraising pans are feasibe, athough the time frames for the receipt of gifts are THE CAPITAL PLAN 2017/18-2019/20 $4.3 BILLION Academic Debt 19% Service Center/ Auxiiary Debt 29% Athetics/Student Activities 1% Infrastructure/Other 7% Academic Support 17% Sources of Funds Resources to be Identified 1% Other 3% Gifts to be Raised 7% Current Funds 29% Gifts in Hand or Pedged 12% Uses of Funds by Program Category Infrastructure/Other 6% Renovations 8% Academic/Research 28% Housing 47% Uses of Funds by Project Type New Construction 86% The foowing sections address Capita Pan funding sources and uses, aong with resource constraints.
76 CAPITAL PLAN AND CAPITAL BUDGET SUMMARY OF THREE-YEAR CAPITAL PLAN 2017/18-2019/20 [IN MILLIONS OF DOLLARS] PROJECT FUNDING SOURCE GIFTS UNIVERSITY DEBT ANNUAL CONTINUING COSTS SERVICE ESTIMATED CAPITAL CENTER/ RESOURCES PROJECT BUDGET CURRENT IN HAND OR TO BE AUXILIARY ACADEMIC TO BE DEBT OPERATIONS & COST 2017/18 FUNDS 1 PLEDGED RAISED DEBT DEBT OTHER IDENTIFIED 2 SERVICE MAINTENANCE 3 Projects in Design & Construction 2,890.7 1,045.9 656.2 496.9 130.1 762.0 696.3 149.2 72.3 53.6 Forecasted Projects 608.5 54.6 118.3 24.5 161.8 175.6 103.4 24.9 17.1 8.9 Tota Construction Pan 3,499.2 1,100.4 774.5 521.4 291.9 937.6 799.7 149.2 24.9 89.4 62.5 Infrastructure Programs 779.7 130.8 453.6 300.6 25.5 17.0 0.1 Tota Three-Year Capita Pan 2017/18-2019/20 4,278.9 1,231.2 1,228.1 521.4 291.9 1,238.2 825.2 149.2 24.9 106.4 62.6 1 Incudes funds from university and schoo reserves, and the GUP and SIP programs. 2 Anticipated funding for this category is through a combination of schoo, department and university reserves, and other sources. 3 Operations & Maintenance incudes panned and reactive/preventative maintenance, zone management, utiities, contracts, grounds, and outdoor ighting. CAPITAL PLAN CASH FLOWS [IN MILLIONS OF DOLLARS] 2016/17 & 2020/21 & PRIOR 2017/18 2018/19 2019/20 THEREAFTER TOTAL Projects in Design & Construction 579.7 1,045.9 812.6 409.7 42.8 2,890.7 Forecasted Projects 11.7 54.6 185.3 222.6 134.4 608.5 Tota Construction Pan 591.4 1,100.4 997.9 632.3 177.2 3,499.2 Infrastructure Programs 233.0 130.8 130.4 129.2 156.4 779.7 Tota Three-Year Capita Pan 2017/18-2019/20 824.3 1,231.2 1,128.3 761.5 333.6 4,278.9 CAPITAL PLAN IMPACT ON BUDGET [IN MILLIONS OF DOLLARS] 2020/21 & 2018/19 2019/20 THEREAFTER TOTAL Debt Service Genera Funds 3.1 22.7 20.6 46.4 Formua and Other Schoos 0.3 15.8 7.0 23.1 Auxiiary 0.4 0.3 35.5 36.1 Other 1 0.3 0.2 0.2 0.8 Tota Debt Service 4.1 39.0 63.3 106.4 Operations and Maintenance Genera Funds 4.7 13.8 3.3 21.8 Formua and Other Schoos 13.5 14.0 27.5 Auxiiary 0.4 12.9 13.3 Tota Operations and Maintenance 5.1 27.3 30.2 62.6 1 Primariy the hospitas aong with Forsythe faciity, Facuty Staff Housing, and outside entities.
CAPITAL PLAN AND CAPITAL BUDGET 77 subject to change. Resources to be identified are expected to come from a combination of schoo, department, and university reserves, as we as other sources. Uses of Funds by Program Category and Project Type The midde chart on page 75 divides Capita Pan activity into program categories Academic/Research, Infrastructure and Other, Academic Support, Housing, and Athetics/Student Activities with the argest categories being Housing, Academic/Research, and Academic Support at 47%, 28%, and 17% of the pan, respectivey. The bottom chart breaks out the same activity into project types, incuding New Construction, Infrastructure, and Renovations. CAPITAL PLAN CONSTRAINTS Affordabiity The incrementa interna debt service expected at the competion of a projects commencing in the three-year pan period (competion dates range from 2017/18 to 2024/25) totas $106.4 miion annuay (excuding debt service for bridge financing the receipt of gifts and operating ease payments). Of this amount, $46.4 miion wi be serviced by genera funds, $23.1 miion by the formua schoos (GSB and SoM), and $36.9 miion by auxiiary and other operations. Service center debt is funded through rates paid by customers and has been aocated and incuded in the totas for genera funds, formua schoos, auxiiary operations, and other operations. The additiona O&M costs expected at the competion of a projects commencing in the three-year period tota $62.6 miion per year. Of this amount, $21.8 miion wi be serviced by genera funds, $27.5 miion by the formua schoos, and $13.3 miion by auxiiary and other operations. O&M and debt service on capita projects compete directy with other academic program initiatives for funding aocations. Debt Capacity As of May 1, 2017, $1.1 biion of bond proceeds are avaiabe to finance capita projects and facuty mortgages, incuding $281 miion of unexpended tax-exempt bond proceeds, and $780 miion of unexpended taxabe bond proceeds. Interim financing faciities totaing $500 miion of taxabe commercia paper, $296 miion of tax-exempt commercia paper, and $448 miion of undrawn ines of credit are aso avaiabe. In addition, through fisca year-end 2016/17 and 2017/18, $97 miion in interna amortization proceeds on debt-funded projects wi become avaiabe to end to projects, and $301 miion in forecasted pedge and other payments wi retire debt issued to bridge finance the receipt of gifts and cost of construction. The three-year Capita Pan wi require a tota of $2.3 biion of debt for projects under construction or for projects to be approved in or before 2017/18: n $1,510 miion to compete projects aready approved or under construction; n $337 miion for projects to be approved in 2017/18; and n $433 miion to bridge finance the receipt of gift pedges for projects approved or under construction. Additiona debt may be required to finance the Facuty Staff Housing program. As of May 1, 2017, the portfoio of debtsubsidized mortgages had increased by $20.5 miion to $496 miion. Projects identified in the three-year Capita Pan and to be approved after 2017/18 wi require an additiona $200 miion in debt. Debt for these projects has not been committed, and aocations wi be evauated in the context of debt capacity, affordabiity, viabiity of the funding pan, and GUP imitations. Entitements The Stanford campus encompasses 8,180 acres in six jurisdictions. Of this tota, 4,017 acres, incuding most of the centra campus, are within unincorporated Santa Cara County. In December 2000, Santa Cara County approved a GUP that aows Stanford to construct up to 2,035,000 additiona gross sf of academic-reated buidings on the core campus and up to 3,018 new housing units. An additiona 1,450 housing units were approved on March 24, 2016, pursuant to GUP Condition F.7, raising the housing aocation to 4,468 housing units. Conditions of approva incuded the foowing: n Creation of an academic growth boundary to imit the buidabe area to the core campus for a minimum of 25 years; n Approva of a sustainabe deveopment study (SDS) before new construction exceeds 1 miion gross sf (Santa Cara County approved the SDS in Apri 2009); and
78 CAPITAL PLAN AND CAPITAL BUDGET n Construction of 605 units of housing for each 500,000 gross sf of new academic buiding. Given the stringent requirements imposed by the GUP and the increasingy difficut entitement environment, Stanford carefuy manages the aocation of new growth. Construction through 2015/16 accounted for 1.4 miion GUP sf. The 2017/18-2019/20 Capita Pan incudes 463,963 GUP sf currenty in design and construction and 30,032 GUP sf in forecasted projects, incuding the reated demoitions. With the competion of panned housing projects, Stanford wi have added 4,424 net new housing units since approva of the GUP, exceeding the housing inkage requirement for the fu academic buid-out aowed by the GUP. As discussed on page 69, Stanford has submitted an appication to Santa Cara County for an updated GUP. This permit is expected to be approved in 2018. THE CAPITAL BUDGET, 2017/18 At $1.2 biion, the 2017/18 Capita Budget refects ony a portion of the costs of the projects in the Capita Pan, as most of them span more than one year. The foowing tabe highights the major capita projects for which expenditures under the 2017/18 Capita Budget wi be significant, as we as the percentage of each project expected to be compete by the end of 2017/18. The map on page 81 shows the ocations of these projects. In 2017/18, LBRE anticipates substantia competion of five major projects with tota budgets of $404.6 miion and estimated 2017/18 expenditures of $150.8 miion. When competed, University Terrace Facuty Homes wi provide 180 units to facuty for purchase (see Stanford s Commitment to Housing section); the Bass Bioogy Buiding wi be the cornerstone of a future science quad in the Bioogy/ Chemistry/Computer Science Precinct; improvements to Frost Amphitheater wi enabe the faciity to be used for a greater variety of events; the Athetic Academic Advising and Rowing Buiding wi consoidate a number of Department of Athetics, Physica Education, and Recreation programs and aow optimization of vacated space; and Durand Phase 4 wi compete the renovation of the buiding. MAJOR CAPITAL PROJECTS - PERCENT OF COMPLETION 2017/18 1 [IN MILLIONS OF DOLLARS] ESTIMATED CAPITAL ESTIMATED PERCENT BUDGET PROJECT COMPLETE BY 2017/18 COST 2017/18 Escondido Viage (EV) Graduate Residences 171.2 1,091.7 29% Stanford Redwood City Phase 1 329.4 568.8 74% Neuro/ChEM-H Research Compex 119.2 257.0 76% Center for Academic Medicine 1 (CAM 1) 103.9 222.9 48% BioMedica Innovations Buiding 1 and Tunne (BMI 1) 104.0 210.0 58% University Terrace Facuty Homes (180 units) 45.0 176.5 100% Anne T. and Robert M. Bass Bioogy Research Buiding 58.9 152.2 100% Frost Amphitheater Improvements 19.9 33.5 100% Pubic Safety Buiding 12.4 31.5 50% Athetic Academic Advising and Rowing Buiding 16.7 25.0 100% Denning House 15.0 23.1 92% Durand Renovation - Phase 4 10.3 17.4 100% Environmenta Heath & Safety Faciity Expansion 12.6 16.5 92% Tota 1,018.5 2,826.1 1 Incudes projects schedued to be in construction and with forecasted expenditures greater than $10 miion in 2017/18. SOURCES AND USES The Capita Budget is supported by mutipe funding sources: current funds (which incude the Capita Faciities Fund [CFF], funds from university and schoo reserves, and GUP and SIP fees), gifts, and debt. The university typicay aocates CFF or debt funding to projects in the absence of other avaiabe funding. The timing of gift receipts, which may be bridge financed, wi affect the mix of project funding. The foowing pie charts show the uses of funds under the $1.2 biion Capita Budget by project type and program category. Anticipated expenditures of $439.8 miion (36%) for Academic/Research projects incude the Neuro/ ChEM-H Research Compex, CAM 1, BMI 1, and the Bass Bioogy Buiding. Academic Support projects are projected at
CAPITAL PLAN AND CAPITAL BUDGET 79 THE CAPITAL BUDGET 2017/18 $1.2 BILLION Uses of Funds by Project Type Infrastructure/Other 8% Renovations 3% Infrastructure/Other 8% Academic Support 33% Athetics/Student Activities 1% Housing 22% New Construction 89% Uses of Funds by Program Category Academic/Research 36% $407.1 miion (33%), primariy for Stanford Redwood City. Housing projects, forecasted at $269.4 miion (22%), incude the EV Graduate Residences, University Terrace Facuty Homes, and the Housing Acquisition Initiative. Infrastructure and other program investment of $95 miion (8%) incudes Investment in Pant (Panned Maintenance) and CUP. Lasty, expenditures for Athetics/Student Activities projects are forecasted at $20 miion (1%). CAPITAL FACILITIES FUND (CFF) Funding Sources and Committed Uses of Funding [IN MILLIONS OF DOLLARS] 2016/17 2017/18 Sources of Funding Formua Units Schoo of Medicine 17.8 18.4 Hoover Institution 4.4 4.4 Non-Formua 27.7 90.2 Tota Funding 49.9 113.0 Committed Uses of Funding Center for Academic Medicine 1 (CAM 1) 13.3 0.9 Neuro/ChEM-H Research Compex 2.7 Stanford Oak Garden Chidren s Center 1.8 5.7 3145 Porter Drive Tenant Improvements 2.9 LKSC Renovation Phases 2 and 3 2.5 Other Schoo of Medicine Projects 6.4 Hoover Institution Projects 4.4 4.4 Formua Units Project Subtota 22.2 22.8 Neuro/ChEM-H Research Compex 50.4 Stanford Redwood City Phase 1 19.1 Bioengineering Equipment 9.7 Emergency Operations Center 5.3 4.9 Durand Renovation Phase 4 5.0 GUP 4 4.5 3.6 Sapp Center for Science Teaching and Learning 3.5 Pubic Safety Buiding 2.8 21.1 Anderson Coections at Stanford University 2.1 Chidren Center of Stanford Community 1.1 9.7 Searsvie Dam and Reservoir 1.0 1.5 Lagunita Diversion Dam Remova 0.8 2.7 Encina Compex Upgrades 10.0 Other Non-Formua Units Projects 3.4 6.1 Tota Commitments 130.9 82.4 Annua Funding ess Commitments (81.0) 30.6 Baance at Beginning of Year 93.8 12.8 Uncommitted Baance 12.8 43.4 Annua transfers to CFF are projected to be $49.9 miion in 2016/17 and $113 miion in 2017/18 with corresponding commitments of $130.9 miion and $82.4 miion for these two years. The foowing tabe ists projects anticipated to receive CFF funding in 2016/17 and 2017/18.
80 CAPITAL PLAN AND CAPITAL BUDGET CAPITAL BUDGET IMPACT ON 2017/18 OPERATIONS The 2017/18 Consoidated Budget for Operations incudes incrementa debt service and O&M expenses for projects to be competed in either 2016/17 or 2017/18, but operationa for ess than 12 months in the year competed. Capita projects requiring debt are funded from interna oans that are amortized over the asset ife in equa instaments (principa and interest). The budgeted interest rate (BIR) used to cacuate the interna debt service is a bended rate of interest expense on debt issued for capita projects, bond issuance, and administrative costs. The BIR wi remain at 4.25% for 2017/18. Consoidated interna debt service, incuding that borne by formua units, auxiiaries, service centers, Facuty Staff Housing, and rea estate investment, is projected to increase from $199.1 miion to $199.3 miion. Additiona debt service reated to the Rosewood Hote and the Sand Hi Road Office Compex is not incuded in the Consoidated Budget for Operations. In addition, annua ease payments for renta properties, occupied by the SoM, are projected to be $32.9 miion in 2017/18. The projected interna debt service funded by unrestricted funds, incuding genera funds and schoos designated funds, wi decrease by $400,000 in 2017/18. The net change in debt service brings the tota annua interna debt service borne by unrestricted funds to $83.7 miion. In 2017/18, the university wi incur about $1.0 miion of incrementa O&M costs reated to a number of new academic and administrative faciities. They incude $360,000 for the Kingscote Renovation and $343,000 for the Centra Loading Dock. Additiona O&M costs for smaer capita projects and infrastructure programs account for the baance of the increase. CAPITAL PLAN PROJECT DETAIL In addition to a map identifying some key project ocations, the foowing pages provide tabes that ist capita projects in three categories: projects in design and construction, forecasted construction projects, and infrastructure projects and programs.
0 500 1,000 Environmenta Heath & Safety Faciity Expansion ± Neuro/ChEM-H Research Compex BioMedica Innovations Buiding 1 2,000 Feet Stanford Redwood City Phase 1 Denning House Durand Renovation - Phase 4 Bass Bioogy Research Buiding Center for Academic Medicine 1 Frost Amphitheater Improvements Athetic Academic Advising and Rowing Buiding University Terrace Facuty Homes Escondido Viage Graduate Residences Pubic Safety Buiding STAN UNIVE CAPITAL PLAN AND CAPITAL BUDGET 81