Brian Yolitz, MnSCU Associate Vice Chancellor of Facilities This presentation will focus on and answer questions about the MnSCU system’s legislative capital bonding request.

1. The Minnesota State Colleges and Universities system is an Equal Opportunity employer and educator.
Minnesota State College Student
Association – Business Meeting
Mesabi Range Community and Technical College – Virginia
September 14, 2013
Capital Planning Update
Brian Yolitz
Associate Vice Chancellor – Facilities

2. Purpose
 Overview of the FY2014 capital bonding
request
 System facility resources and planning
 Be available to answer any questions in
the facilities portfolio
2

3. Overview
 Background
 System Facilities Infrastructure
 Process overview
 2014 capital bonding details
 Process
 Program
 The way ahead
 Opportunities for your involvement
 Upcoming events
 Questions and Discussion

4. Facility Space – Square Footage
 27.8 million total gross
square feet of facility
space
 5 Mall of Americas
 Roughly 1/3 of the State of
Minnesota’s facility space
 54 Campuses:
 Largest:
 St Cloud State University
 3.258 million sq ft
 Smallest:
 Riverland Community
College – Owatonna
 27,600 sq ft
4
21.687
4.843
1.025 0.1120.167
Academic Revenue Fund
Revenue Fund - Ramps Mothballed
Others
Gross Square Footage
(Millions)

5. Facility Space – By Campus
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
Alexandria
AnokaTechnical
Anoka-Ramsey-Cambridge
Anoka-Ramsey-CoonRapids
BemidjiState
NorthwestTechnicalCollege*
CentralLakes-Brainerd
CentralLakes-Staples
CenturyCollege
DakotaCounty
FondduLac
HennepinTechnical-BrooklynPark
HennepinTechnical-EdenPrairie
InverHills
LakeSuperior
MCTC
MetropolitanState
MNStateSoutheastTechnical-RedWing
MNStateSoutheastTechnical-Winona
MNWest-Canby
MNWest-GraniteFalls
MNWest-Jackson
MNWest-Pipestone
MNWest-Worthington
M-State-DetroitLakes
M-State-FergusFalls
M-State-Moorhead
M-State-Wadena
MSUMoorhead
MSU,Mankato
NHED-Hibbing
NHED-Itasca
NHED-MesabiRange-Eveleth
NHED-MesabiRange-Virginia
NHED-RainyRiver
NHED-Vermilion
Normandale
NorthHennepin
Northland-EastGrandForks
Northland-ThiefRvierFalls
PineTech
RCTC
Ridgewater-Hutchinson
Ridgewater-Wilmar
Riverland-AlbertLea
Riverland-Austin
Riverland-Owatonna
SaintPaul
SouthCentral-Faribault
SouthCentral-NorthMankato
SouthwestMinnesotaState
St.CloudState
St.CloudTechnical
WinonaState
Academic Revenue Fund Ramps Mothballed Other
5
GrossSquareFootage

6. 0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
1880 1885 1890 1895 1900 1905 1910 1915 1920 1925 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
Gross Square Footage Constructed - 5 year Groupings
6
SquareFootage
Source: FRRM report, Report 2.12, Academic Buildings
The year represents new sq. ft. constructed that year and prior 4 years (i.e. 2010 = 2006, 2007, 2008, 2009, 2010)
System Buildings Are Middle Aged

7. Source: FRRM 2012, Report 2.10
Middle Aged Buildings

8. Facility Space – Total Value
 $7.3 billion replacement
value
 Total Backlog: $818M
 Total 5-Year Renewal: $523M
 Facility Condition Index:
 Academic: .113
 Revenue Fund: .086
 Investment avenues
 Capital bonding
 HEAPR and Major Projects
 Revenue Fund
 Local campus funding
8
$6,232.28
$1,225.04
$72.46 $29.35 $38.86
Academic Revenue Fund
Revenue Fund - Ramps Mothballed
Others
Replacement Value
($ Millions)

9. Total Capital Investment History
$0
$50
$100
$150
$200
$250
$300
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Capital Projects HEAPR Revenue Fund
9
Millions

10. Operating Funds – R&R
 Campuses, on average, have exceeded the recommended
$1/sq. ft. annual R&R guideline for academic spaces:
 5 year average: $29.5M
 Potential annual funding: $30M
10
$27.5
$25.8
$28.8
$32.6 $33.0
$20
$25
$30
$35
2008 2009 2010 2011 2012 2013
Annual R&R Investment ($M)
Annual R&R Investment ($M)
Goal: $21.7M

11. Program Development
Board
Action Campus Tours
Legislative
Session Design and Construction
11
Bonding:
• HEAPR and Projects
2012
2014
2016
Revenue Fund:
2011
2013
2015
2012
2012
2013
2013
2014
2014
2015
2015 2016
Basic Capital Timelines
Fiscal Year:
Calendar Year:
Program
Development
Design and ConstructionBoard
Action
Bond
Sale
Program Development Design andBoard
Action
Bond
Sale
Design and Construction
Program Development
Board
Action
Legislative
Session Design and ConstructionCampus Tours
Today

12. 2014 CAPITAL BONDING DETAILS
12

13. 2014 Capital Budget Timeline
13
System Strategic Plan
Facilities Master
Plans
Facilities Requirements
• Maintain, Repair, Renovate, R
enew, Demolish, New
• HEAPR
• Capital Bonding
• Revenue Fund
• Other
Project Predesign
• Basic Information
• Scope
• Cost
• Schedule
• Strategy
• Contracting
• Design and Construct
• Design then Construct
Board Capital Budget
Guidelines
• Each biennium
• Program focus
• Size
• Criteria elements
Capital Project Scoring
• Cross functional teams
• Campus and Staff
• Admin and faculty
• Project Predesign data
• Board Guidelines
• Individual Project Scores
Chancellor Review and
Analysis
• Scoring team results
• Presidential feedback
• Program adjustments
• Chancellor’s
Recommendation:
• Project list
• Priority
Governor
Approval
Legislative Action
• House and Senate Capital
Investment Committees
• Conference Committee
• Capital Bonding Bill
Board Approval
• Committee and
Board Hearing
• Testimony
• Projects and Priority
Approval
• Initial Direction for
the future planning
MMB Review
• Review and
adjustment
• Integration with
other state agency
requests
• Support legislative
visits
• Governor
Recommendation
development
June 2013
March – May
2013
January
2013
April 2012
July 2013 – January 2014
February – May 2014
May 2014

14. State Capital Budget Priorities
State established budget priorities under Minn. Stat. 135A.034:
(1) maintenance and preservation of existing facilities;
(2) completion of projects that have received funding;
(3) updating facilities to meet contemporary needs;
(4) providing geographic distribution of capital projects; and
(5) maximizing the use of non-state contributions.
14

15. Board Guidelines for 2014
 Overarching Principles:
 Take care of what we have
 Make campus space more efficient and flexible
 Mothball or demolish what is no longer viable in terms of
conditions, operating costs, and programs, and
 Only consider new square footage if the requirement meets the three
priorities in the strategic framework
 Strategic Framework:
 Access to an extraordinary education
 Partner of choice
 Highest value/most affordable option
15

16. Capital Project Scoring
 Scoring mechanism built on Board Guidelines
 Access to an extraordinary education – 30%
 Classroom redesign, 4-year program in metro, success of
underrepresented students, college/university
collaboration, academic program demand
 Partner of choice – 20%
 Emerging and sustained workforce and community needs, STEM
programming, increased recruitment, retention, completion and
transfer within system
 High value/most affordable option – 50%
 Reduced or sharing of costs, asset preservation/backlog
reduction, space use, projects costs, campus R&R investment
history, financial impacts, CFI, utility/resource conservation
 Prior approval and Institutional priority – +10 Points for each
 Executed by representatives from across the system
16

17. Higher Education Asset Preservation
and Replacement (HEAPR)
 Authorized in 135A.046 – Asset Preservation and Replacement
 Number 1 priority to take care of what we have
 Used for:
 Preservation of building interiors and exteriors
 Renewal
 Code Compliance
 Energy efficiency improvements
 Keep Up / Catch Up Strategy:
 Address anticipated needs
 Reduce backlog by 50% over 10 years
 Calls for $110 million in HEAPR investment per biennium
17

18. Keep Up / Catch Up
 Keep Up: Address annual renewal needs :
 $414M/5 = $83M annually
 Catch Up: Reduce backlog by 50% in 10 years:
 $705M X 50% / 10 = $35M annually
 Total required asset preservation investment:
 $118M annually
 Available resources/funding streams:
 Operating Funds – R&R
 Capital Investment – Major renovation and repair projects
 Capital Investment – HEAPR
18

19. Investment Needs
 Available resources/funding streams:
 Annual R&R:
 Goal of $1/sq. ft. = $21.7M
 5 year average: $29.5M
 Assume: $25.5M
 Major renovation and repair projects:
 Assume $37.5M
 Based on capital project funding:
 $154.3M in major projects = roughly $77M annually
 Assume 50% of projects HEAPR/HEAPR-like = $37.5M
 HEAPR requirement:
 $118M - $25.5M - $37.5M = $55M annually -> $110M over a biennium
19

20. Investment in Minnesota
 Asset preservation:
 110 HEAPR Projects at 47 campuses
 53% improves building exterior integrity: roofs, walls, windows
 40% building infrastructure systems: HVAC, electrical, plumbing
 5% code and standard compliance
 Improves existing educational and student support space
 Renovates and renews 743,000 sq. ft. at 26 campuses
 Select expansion to meet workforce needs
 STEM, allied health, transportation, general studies and workforce
skills
 2 universities and 5 colleges
 Replacement or elimination of obsolete space:
 Within capital projects at 6 campuses
 Demolition initiative at up to 16 campuses
20

21. Board Approved 2014 Capital Program
 General Obligation funding: $227.7 million
 System financing: $58.8 million
 Total Capital Program: $286.5 million
 Major elements:
 $130.6 million – HEAPR and Demolition
 $155.9 million – Capital project design and construction
21

22. 22
FY2014
Capital Budget Request
2014 2016 New Renovate Renewal
Demo/
Mothball
1 HEAPR Systemwide
System
wide
Higher Education Asset Preservation
and Replacement
D/C $130,576,000
2 Metropolitan State University St. Paul Metro
Science Education Center new
construction
C $35,865,000 65,712 3,500
3 Bemidji State University Bemidji
North
West
Memorial, Decker, and Sanford Hall
renovation, demolition; design, post-
demolition Hagg Sauer
D/C $13,790,000 4,000 46,700 11,800 17,000
4 Lake Superior College Duluth
North
East
Allied Health ('86 Wing)
Revitalization renovation
D/C $5,266,000 36,500 4,500
5
Minneapolis Community &
Technical College
Minneapolis Metro
Workforce Program Phase 2
renovation
D/C $3,600,000 90,470
6
Saint Paul College
(Initiatives)
St. Paul Metro
Initiatives: Culinary Arts Lab, and
Machine Tool renovation
D/C $1,500,000 16,773 10,777
7
Minnesota State College -
Southeast Technical
(Initiatives)
Red Wing,
Winona
South
East
Initiatives: Welding/Indust. Labs,
Science Labs, and Multipurpose
Classrooms renovation
D/C $1,700,000 14,250
8 Central Lakes College Staples
North
West
Campus Rightsizing renovation D/C $4,581,000 7,435 56,895 17,810
9
Minnesota State University,
Mankato
Mankato
South
East
Clinical Science Building new
construction, renovation
C $25,818,000 $4,444,000 55,717 13,191 8,584
10
Minnesota State Community
& Technical College
Moorhead
North
West
Transportation Center addition D/C $6,544,000 22,630 23,186 2,900
11
Rochester Community and
Technical College
Rochester
South
East
Design, post-demolition Plaza,
Memorial & Art buildings
D $1,000,000 13,530
12
Minnesota West Community
and Technical College
(Initiatives)
Jackson,
Canby
South
West
Initiatives: ITV Classrooms,
Powerline Training Facility, and
Geothermal System renovation
D/C $3,487,000 10,900 44,090 18,000
13
Dakota County Technical
College
Rosemount Metro
Transportation & Emerging
Technologies lab renovation
C $7,586,000 42,580 22,970
14
Century College
(Initiatives)
White Bear
Lake
Metro
Initiatives: Digital Fabrication,
Kitchen space, and Solar Panel
System renovation
D/C $2,020,000 6,000 1,700
15
Northland Community
Technical College
Thief River
Falls
North
West
Aviation Maintenance Facility
Expansion demolition and addition
C $5,864,000 20,410 5,790 21,680
16
(NHED) Northeast Higher
Education District (Capital
and Initiatives)
Itasca,
Hibbing,
Rainy River,
Vermilion
North
East
Initiatives, Capital: Science Labs (3),
Art Classroom, Biomass renovate;
Rightsizing /Demolition
D/C $3,344,000 $8,600,000 20,000 19,371 8,500 46,805
17 Winona State University Winona
South
East
Education Village, Phase I,
renovation
D/C $5,902,000 $18,697,000 1,000 18,816
18
Anoka Technical College
(Initiatives)
Anoka Metro
Initiatives: Manufacturing Technology
Hub, and Auto Tech Lab renovation
D/C $1,500,000 42,025
19 Saint Paul College St. Paul Metro
Health & Science Alliance Center
addition
D/C $14,482,000 36,770 3,248 8,000
20 Century College
White Bear
Lake
Metro
Classroom and Workforce Alignment
addition
D $1,000,000 $12,432,000 25,584 4,000 1,000
21 South Central College
North
Mankato
South
East
STEM and Healthcare Workforce
renovation
D/C $7,467,000 19,765 71,125
22 St. Cloud State University St. Cloud Central
Integrated Student Health and
Academic Programs renovation
D $865,000 $15,000,000 15,562 43,291
23
Minnesota State Community
and Technical College
(Initiatives)
Fergus
Falls,
Wadena
North
West
Initiatives: Campus Rightsizing, and
Center for Student Success
renovation
D/C $1,385,000 21,832
24
Northland Community and
Technical College
(Initiative)
East Grand
Forks
North
West
Initiative: Laboratory renovation D/C $749,000 754 4,450
25
Winona State University
(Initiative)
Winona
South
East
Initiative: Psychology Lab - Phelps
Hall renovation
D/C $591,760 3,703
$286,482,760 $59,173,000 278,285 540,800 202,301 132,195
$130,576,000
Appeared on 2013 Capital Budget Bonding List $155,906,760
$51,968,920
Square Footage
Previous Appropriation (2008-2012)
Project
Type
Project CostDesign
OR
Construct
First Time Submittal
Project Type Legend FY2014 - 2019 Major, HEAPR, and Demolition GRAND TOTAL:
Projects:
HEAPR:
user (MnSCU) Financing:
Priority Institution
Campus/
Location
Region Project Title

23. 2014 Capital Budget
Projects Locations

24. Program impact on space
 Reflects impact of priority capital projects and demolition
 Does not reflect HEAPR as these funds are facility system
focused
24
Square Footage
% of 2014
Program
Change in Square
Footage
Renovation 540,800 34.7% 0
Renewal 202,301 13.0% 0
New Facilities 278,285 17.9% +278,285
Total Demolition 535,645 34.4% -535,645
Total Impact 1,557,031 100.0% -257,360

25. HEAPR Highlights
 $110 Million request
 47 campuses have projects on the HEAPR list
 110 individual projects
 Nearly 90% have an energy savings component
 2-3% for future design
 1.25-1.5% for storm water compliance
25

26. HEAPR Highlights
26
Roof Repairs/
Replacement
Heating, Ventilati
on, & Air
Conditioning
Exterior -
Walls, Windows &
Doors
Building Interior
Plumbing
Electrical
Life Safety Codes Fire Safety Site
work
Utility
Infrastructure

27. Demolition Highlights
 System-wide demolition/relocation of space – $20.6 million
 Fiscal and facility sustainability
 Eliminate backlog (demand for HEAPR) operating expenses
 Target removal of obsolete space:
 Mothballed
 Chronically underutilized
 Called out in campus facilities master plan
 Demolish and mend campus facilities
 Manage within HEAPR
 May require legislative work to best incentivize program
27

28. Capital Projects
 Programmatic Impact of $155.9 million investment
 STEM: $48.0 million
 Metropolitan State, NHED, Northland, South Central, and WSU
 Allied Health: $45.5 million
 Lake Superior, MSU, Mankato, and Saint Paul
 Technical Programs: $38.4 million
 Anoka, Central
Lakes, Century, DCTC, MCTC, MnWest, MState, Northland, Southea
st Technical, and Saint Paul
 Business and Education: $21.7 million
 Bemidji State, Century, RCTC, and Winona State
 Student Support and Services: $2.3 million
 MState and St Cloud State
28

29. Opportunities For Your Involvement
 Today: Capital Bonding Advocacy Tours
 Voice of the user – powerful influence
 Thanks for the facilities you have
 Needs for the future:
 Future:
 Master planning phase:
 Vision, needs and desires
 Funding strategies and priorities
 Predesign and Design
 Basic requirements
 Scope, cost, and schedule
 Delivery strategies
29

30. Campus Tours
 Legislators and staff, MMB
 Some visits are touring capital projects; others part of a
broader visit
 Some using campus as hearing location
 Capital investment committees highlighted
 Senate Capital Investment developing schedule
30

31. Committees/Entities
Legislative Entities:
 House Capital Investment
 House Higher Education and Policy
 Senate Capital Investment
 Senate Higher Education and Workforce Development
Executive Branch:
 Minnesota Management and Budget to help establish
Governor’s recommendation
31

32. Confirmed Legislative Tours
House Capital Investment:
 September 17 – Anoka Technical, Central Lakes (Brainerd)
 September 18 – Bemidji State University
 September 19 – Minnesota State Community and Technical College,
Moorhead
 September 24 – Century College, Lake Superior College
 September 25 – Hibbing Community College
 September 26 – Itasca Community College
 October 8 – Winona State University, Rochester Community and
Technical College
 October 9 – MSU, Mankato
 October 29 – Saint Paul College , Metropolitan State University
Senate Capital Investment:
 October 2 – Hibbing Community College
 October 3 – Central Lakes College (Staples)
32

33. Questions and Discussion
33

34. 2015 Revenue Fund
Basics
 Odd-year cycles (2011, 2013, etc)
 System issues bonds (not state)
 Fee revenue is payment mechanism
2015 Projects
 Early stages
 $60 million projected
 5 campuses (MSU
Moorhead, MSU, Mankato, Century, Inver Hills, NHED -
Vermilion)
34