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

Steve Relyea 401 Golden Shore, 5th Floor Executive Vice Chancellor and Long Beach, CA 90802-4210 Chief Financial Officer www.calstate.edu 562-951-4600 srelyea@calstate.edu 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) 2018-2019 to 2022-2023 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 2018-2019 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 2018-2019 Priority List, along with the Five-Year Plan, will be presented to the board for final approval in November 2017. 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 2018-2019 capital program is the CSU Systemwide Revenue Bond program for academic projects as approved by the board in November 2016 (RFIN/CPBG 11-16-02). In addition, the CSU will request a permanent base budget increase for facilities projects as part of the 2018-2019 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

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 2015-2016 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 2016-2017 (and not funded) and again approved by the board for the 2017-2018 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 2017-2018 capital program and those projects that remain for 2018-2019. 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. 2018-2019 through 2022-2023 Plan Development Feasibility Studies All 2018-2019 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: http://calstate.edu/cpdc/facilities_planning/forms.shtml. 1 The March 2017 bond sale included tax-exempt (Series 2017A) and taxable funds (Series 2017B) for the 2015-2016 and 2016-2017 capital programs. The use of taxable bonds increases campus flexibility by providing certain projects more time to expend project funds.

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 2019-2023 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 2017-2018 Five-Year Plan are key tools used for project planning and prioritization that will be updated as part of the 2018-2019 Five-Year Plan process. The 2017-2018 reports assume a flat enrollment from 2016-2017 to 2017-2018 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) 2017-2018 Summary of Capacity Report with enrollment projections at: http://calstate.edu/cpdc/facilities_planning/space_mgmt/reports/campus_sumcap.shtml 2) 2017-2018 Laboratory Enrollment FTES versus Laboratory Capacity FTES Report at: http://calstate.edu/cpdc/facilities_planning/space_mgmt/reports/labftes.shtml Self-Support Program Proposed projects must be reviewed and proformas approved by Financing & Treasury for projects to be included in the 2018-2019 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, 2017. Projects that do not make the deadline will be identified in the campus Five-Year Plan for 2019-2020, and may be amended into the 2018-2019 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 2018-2019 program submittals, including projects previously submitted, should be updated using current forms. Access the information via our website: http://calstate.edu/cpdc/. Select Facilities Planning, then either Call Letters, Forms, or Reference Documents, as needed.

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) 951-4106, or your assigned CPDC Planner Financial documentation required to support self-support funded submissions Robert Eaton, Assistant Vice Chancellor, Financing & Treasury/Risk Management (562) 951-4572 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 2018-2019 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: 2017-2018 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

The California State University Attachment 1 Five-Year Facilities Renewal and Capital Improvement Plan 2018-19 through 2022-23 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 2017-18. 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. 19-20, 2017 Sept. 20, 2017 Sept. 29, 2017 Nov. 7-8, 2017 Dec. 1, 2017 Legislative Committee hearings on the 2017-18 budget. Board of Trustees approve Categories and Criteria for 2018-19 capital program. es submit their Draft Five-Year Plan, including 2018-19 Form 1-1 and project proposals for Capital Outlay (including Infrastructure Improvements), equipment lists, 2018-19 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 2017-18 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 2018-19 action year. CPDC submits preliminary (Draft) 2018-19 to 2022-23 Plan to DOF/Legislature. Board of Trustees approves Draft 2018-19 to 2022-23 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 2018-19 budget, capital financing requests and Five-Year Plan. CPDC submits the final budget request/project proposals for 2018-19 to DOF. January 10, 2018 Governor's proposal for 2018-19. February 1, 2018 March - June 2018 April 1, 2018 June 2018 DOF provides preliminary list of 2018-19 approved CSU projects to Legislature. Legislative Committee hearings on the 2018-19 budget. DOF submits final list of 2018-19 approved projects to CSU. es complete design architect selections/agreements for projects included in the 2018-19 budget. * Draft Submittal Date Extended from May 1 **CPDC is Capital Planning, Design and Construction Page 1 of 1 May 25, 2017

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 2017-2018 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 20,982 509,443 530,425 530,425 7,679 188,000 700,000 2B IA Statewide Infrastructure Improvements ** N/A PWC 50,000 3 IB Statewide Solar Energy, Ph. 4 *** N/A PWC 204,388 204,388 204,388 4 IB Bakersfield Humanities Building N/A E 412 412 412 5 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 8,787 118,731 127,518 127,518 2,755 115,976 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 38,156 52 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 72,476 18 II Maritime Learning Commons TBD PWCE 1,208 26,340 27,548 27,548 27,548 19 IB San Luis Obispo Kennedy Library Renovation 566 PWCE 5,000 50,000 55,000 55,000 55,000 20 II Channel Islands Gateway Hall, Ph. 1 N/A PWCE 2,811 32,378 35,189 35,189 35,189 21 II San Bernardino Theatre Arts Building 18 PWCE 6,171 60,395 66,566 66,566 66,566 22 IB Northridge Sierra Hall Renovation, Ph. 1 0 PWCE 4,605 52,330 56,935 56,935 56,935 23 IB San Diego Electrical Utilities Upgrade, Ph. 1 N/A PWC 13,200 11,800 25,000 25,000 25,000 24 IB Sacramento Folsom 3rd Floor Improvements TBD PWCE 2,214 16,567 18,781 18,781 18,781 25 IB San Diego Dramatic Arts Renovation N/A PWCE 8,300 13,200 21,500 21,500 21,500 26 II San Marcos Applied Sciences and Technology Building 545 PWCE 4,605 27,239 31,844 31,844 31,844 27 IB Pomona Classroom Lab Building Renovation (Seismic) TBD PWC 2,367 44,636 47,003 47,003 47,003 28 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 2018-2019 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

2017-2018 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 1,786,000 132,000 1,654,000 1,786,000 Humanities Classroom PWC 200,000 200,000 194,000 194,000 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 600,000 600,000 600,000 600,000 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 3,900,000 500,000 3,400,000 3,900,000 Fresno Underground Utility Improvements PWC 541,000 4,871,000 5,412,000 541,000 4,871,000 5,412,000 Domestic Water Well Upgrade PWC 173,000 173,000 173,000 173,000 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 5,000,000 738,000 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 100,000 901,000 1,001,000 100,000 901,000 1,001,000 Long Beach Microbiology HVAC Replacement, Ph. 1 PWC 666,000 5,834,000 6,500,000 700,000 700,000 Chiller No.1 Upgrade PWC 82,000 968,000 1,050,000 82,000 968,000 1,050,000 Maritime Academy Ship Boiler Replacement PWC 48,000 432,000 480,000 48,000 432,000 480,000 Domestic Water Pipe Replacement PWC 66,000 594,000 660,000 66,000 594,000 660,000 Monterey Bay Pilot Laundry Grey Water to Landscape PWC 100,000 100,000 100,000 100,000 Northridge Heating System Replacement, Ph. 3, 4 PWC 115,000 4,228,000 4,343,000 115,000 4,228,000 4,343,000 Electrical System Replacement, Ph. 3, 4 PWC 773,000 6,956,000 7,729,000 773,000 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 306,000 965,000 1,271,000 306,000 965,000 1,271,000 San Bernardino Gas-filled Switch Replacement PWC 345,000 345,000 345,000 345,000 Biology Teaching Labs PWCE 206,000 2,713,000 2,919,000 206,000 2,713,000 2,919,000 Palm Desert-Health Science Energy Retrofits PWC 294,000 294,000 294,000 294,000 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 175,000 700,000 875,000 175,000 700,000 875,000 Drain Pipe Replacement, Ph. 1 PWC 110,000 440,000 550,000 110,000 440,000 550,000 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 3,248,000 215,000 3,033,000 3,248,000 Central Plant Generator PWC 108,000 1,428,000 1,536,000 108,000 1,428,000 1,536,000 Central Plant Boiler Replacement PWC 450,000 450,000 450,000 450,000 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

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 836,000 836,000 836,000 836,000 Cooling Tower PWC 923,000 923,000 923,000 923,000 Ives Hall HVAC Replacement PWC 850,000 850,000 850,000 850,000 Replace transformers and switchgear (PE, Art, Courtyard) PWC 650,000 650,000 650,000 650,000 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 1,539,000 114,000 1,425,000 1,539,000 Systemwide HVAC and Electrical Upgrades PWC 24,000,000 24,000,000 962,984 962,984 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 2017-2018 requests. Based on funding received to date from 2017A and 2017B SRB. Energy/Water Conservation Projects Page 2 of 2 May 25, 2017