B–1 BOARD OF REGENTS MEETING

Approve Six-Year Capital Plan

RECOMMENDED ACTION

It is the recommendation of the administration that the Board of Regents approve the attached Six-Year Capital Plan.

BACKGROUND

Each year the Board reviews and approves the Six-Year Capital Plan, which guides planning, implementation and operational decisions. Last month, the Board reviewed the scoring of capital project requests and a preliminary draft of the Six- Year Capital Plan. Based on the Board’s comments, and feedback from the Board of Deans and Chancellors and the Faculty Senate Committee on Planning & Budgeting, adjustments highlighted in yellow were made to the plan. Because the capital budget will inform the University’s request to the State for capital funding for the 2021-23 biennium, a draft of the Ten-Year Projected State Capital Request is attached for information. This request will continue to evolve as more information becomes available from Olympia.

In addition to the capital costs, UW Facilities is planning for ongoing operating, maintenance, and renewal costs. An estimate is listed for each project and funding strategies have been identified. As individual projects move forward for approval, a specific plan for funding these costs will be presented, along with project details.

Attachments 1. Six-Year Capital Plan (FY20-FY25) 2. Ten-Year Projected State Capital Request (Draft) 3. Analytics: Capital Distribution 4. Analytics: Funding Summary 5. Analytics: Deferred Maintenance Impact

B–1/207-19 7/11/19

Six-Year Capital Plan (FY20–FY25)

Currently Funded Project Information Project State Bldg Local Prior Net New O&M+R O&M+R Budget Bond Acct Debt Donor Central (Dept) Other Funding Total GSF GSF ($) Source Funding in $ Millions 1 New Burke Museum $ 83 - - - $ 5 $ 5 - - $ 73 116,756 116,756 $ (1.9) S/DL 2 Population Health Facility $ 230 - - - $ 150 - - - $ 80 296,574 296,574 $ (4.5) S 3 Clinical Transformation - D1 $ 178 - - $ 128 - - $ 50 ------4 Finance Transformation $ 215 - - $ 112 - $ 82 - - $ 21 - - - - 5 Foster School of Business - New Building $ 70 - - - $ 70 - - - - 90,000 46,900 $ (0.7) E 6 Kincaid Hall Renovation for Psychology $ 43 - - $ 31 - $ 5 $ 4 - $ 3 84,459 - - - 7 North Campus Housing - Phase 4B (Oak Hall/Denny Field) $ 66 - - - - - $ 66 - - 105,500 105,500 $ (1.4) DL ACTIVE 8 Parrington Hall Renovations for Evans School $ 24 - - - $ 10 $ 4 - - $ 10 58,775 - - - 9 UW Medicine NWH - Child Birth Center $ 25 - - $ 25 - - - - - 26,000 - - - 10 UW Tacoma - Soil Remediation $ 7 ------$ 6 $ 1 - - - - 11 Health Sciences Education Building (New Building) $ 101 $ 58 $ 2 $ 20 $ 10 - - - $ 11 86,000 86,000 $ (1.6) S 12 UW Bothell - Academic STEM Building $ 79 $ 76 ------$ 3 100,000 100,000 $ (1.5) S 13 University District Station Development $ 140 ------$ 140 - 240,000 240,000 $ 1.0 CL/DL $ 1,260 $ 134 $ 2 $ 316 $ 245 $ 96 $ 120 $ 146 $ 201 1,204,064 991,730 $ (10.6)

Projected Funding Project Information Project State Bldg Local Prior Net New O&M+R O&M+R Budget Bond Acct Debt Donor Central (Dept) Other Funding Total GSF GSF ($) Source Funding in $ Millions 1 Seismic Improvements (6-year plan) $ 66 - $ 48 - - - - - $ 18 - - - - 2 UW Medicine Minor Projects $ 300 - - - - - $ 300 ------3 Minor Works - Preservation $ 134 - $ 134 ------4 Preventative Facility Maintenance & Building System Repairs $ 77 - $ 77 ------5 Major / Minor Capital Repair (greater than or equal to $2M) $ 13 - $ 13 ------(a) 6 Energy Retrofits $ 25 - - $ 23 - $ 3 ------(a) 7 Utility Infrastructure (Power Plant) $ 400 - - $ 100 ------(a) INFRASTRUCTURE 8 Utility Infrastructure (West Campus Electrical Expansion / SCL) $ 75 - - $ 13 - - - $ 50 - - - - - (b) 9 Classroom Modernization Effort $ 20 - - - - $ 20 ------(c) 10 Campus ADA Improvements $ 20 - - - - $ 20 ------$ 1,131 - $ 273 135 - $ 43 $ 300 $ 50 $ 18

1 Renovation/Replacement Magnuson Health Sciences Bldg - Phase 2 $ 60 $ 60 ------60,000 - - - 2 Renovation/Replacement Magnuson Health Sciences Bldg - Phase 3 $ 92 $ 5 ------101,200 - - - 3 UW Medicine - Behavioral Health Teaching Hospital $ 225 $ 225 ------210,000 166,000 $ (3.6) S 4 Anderson Hall Renovation for College of Environment $ 30 $ 30 ------34,000 - - - 5 College of Engineering - Interdisciplinary Education and Research (Phase I) $ 101 $ 46 $ 4 - $ 50 - - - $ 1 100,000 51,515 $ (0.9) S/E 6 UWMC - Montlake campus membrane repair $ 50 - - $ 40 - - $ 10 ------7 Miller Hall Renovation for College of Education $ 84 $ 64 - - $ 20 - - - - 73,000 - - - 8 Environmental Partnership Bldg $ 200 ------$ 200 - 300,000 100,000 $ 1.0 O 9 Renovation/Replacement of Bagley Hall (A&S) - Phase I $ 77 $ 21 ------223,700 - - - 12 Center for Advanced Materials and Clean Energy Technologies $ 309 ------$ 279 $ 30 340,000 112,200 $ 1.0 S/DL/E 13 North Campus Housing - Phase 5 (Haggett Hall Replacement) $ 140 - - - - - $ 140 - - 240,000 36,886 $ (0.5) O 15 Research Lab Modernization HSB B & D Wing (School of Dentistry) $ 52 $ 12 - - $ 40 ------16 UW Bothell Housing Replacement $ 170 ------$ 170 - 300,000 228,000 $ 1.0 O 17 Ischool & HCDE Partnership Building $ 102 $ 10 ------115,000 115,000 $ (2.0) S/E 19 UW Tacoma - Academic Innovation Building (Phase I) $ 55 $ 36 $ 4 - $ 15 - - - - 56,000 56,000 $ (0.9) S 25 UW Medicine- Behavioral Health Institute at Harborview Medical Ctr $ 101 $ 0.5 - - - - - $ 100 - 60,000 60,000 $ (1.4) O

MAJ OR CAPITAL (OVER $5M) 28 ICA Health & High Performance Center $ 45 - - - $ 45 - - - - 50,000 22,955 $ (0.4) DL 30 Medical School - Spokane WA $ 70 ------$ 70 - 30,000 30,000 $ (1.8) S/DL 36 Engagement Center / Washington Commons $ 20 - - - $ 20 - - - - 50,000 50,000 $ (0.6) E 41 College of Environment - Washington Park Arboretum Ed. Building $ 10 - - - $ 10 - - - - 10,000 10,000 $ (0.2) E 42 Intellectual House Phase 2 $ 12 - - - $ 12 - - - - 8,000 8,000 $ (0.2) DL 44 ASUW Shell House Restoration $ 13 - - - $ 13 - - - - 13,267 13,267 $ (0.1) E 45 Burke Gilman Trail Improvements - Phase 3 $ 16 ------$ 16 - - - - - 48 Academic Conference Center $ 150 ------$ 150 - 200,000 200,000 $ 1.0 O $ 2,183 $ 509 $ 8 $ 40 $ 225 - $ 150 $ 985 $ 31 2,574,167 1,259,823 $ (8)

6 Year Capital Proposed Total $ 3,776 $ 643 $ 283 $ 491 $ 470 $ 138 $ 570 $ 1,181 $ 250

6 Year Capital Target by S ource $ 3,966 $ 630 $ 286 $ 600 $ 500 $ 150 $ 600 $ 1,200 O&M+R S ource Key Assumptions S State Request (a) Energy savings will fund debt service DL Departmental Fund (b) Funding from ICR funds as source CL Central Fund (c) ADA local funding source to be validated E Endowment O Other

B-1.1/207-19 ATTACHMENT 1 Page 1 of 1 7/11/19

Ten-Year Projected State Capital Request

As of 2019, the University has identified 48 capital projects, acquisitions, and leases to pursue over the next 10 years. These capital expenses are intended to further the strategic initiatives outlined by President Ana Mari Cauce, accommodate projected growth, and address the most pressing infrastructure needs. A variety of fund sources will be utilized to accomplish these. The following table lists projects that have been identified as needing at least partial State funding to proceed.

Proposed Projects 2019-2021 2021-2023 2023-2025 2025-2027 2027-2029 2029-2031 TOTAL

Total Project State State State State State State Projected Funding in $1,000s Phase Budget * Bond Bldg Acct Bond Bldg Acct Bond Bldg Acct Bond Bldg Acct Bond Bldg Acct Bond Bldg Acct Appropriation

UW Building Account / Other Funding Minor Works - Preservation n/a n/a - 43,466 - 47,074 - 38,173 - 55,814 - 56,931 - 60,463 301,921

Preventative Facility Maintenance * n/a n/a - 25,825 - 25,825 - 25,825 - 25,825 - 25,825 - 25,825 154,950 M&O Appropriation for Operating * n/a n/a - 1,546 - 1,546 - 1,546 - 1,546 - 1,546 - 1,546 9,276

UW Tacoma - S oil Remediation** n/a 15,500 1,800 - 2,000 - 2,000 - 2,000 - 2,000 - - - 9,800

Major Infrastructure - S eismic Improvements (6-year plan) n/a 65,800 - 15,000 - 16,926 - 16,200 ------48,126

Major / Minor Capital Repair (greater than or equal to $2M) n/a 47,500 - - - - - 13,000 - 15,000 - 15,000 - 15,000 58,000 Totals: 1,800 85,837 2,000 91,371 2,000 94,744 2,000 98,185 2,000 99,302 - 102,834 582,073 * On-going operating appropriation from the UW Building Account ** S oil Remediation funded from separate S tate account established for this purpose

S tate Bond Requests Health S ciences E ducation Building (New Building) D/C 100,000 58,000 2,000 ------60,000

UW Bothell - Academic S TE M Building D/C 79,000 76,000 ------76,000

T-Wing Renovation - Phase 2 PD/D/C 60,000 1,000 - 5,000 - 54,000 ------60,000 UW Medicine - Behavioral Health Teaching Hospital PD/D/C 225,000 33,250 - 191,750 ------225,000

College of E ngineering Interdisciplinary E d. and Research Center - Phase 1 D/C 100,000 - 4,000 46,000 ------50,000

Academic Innovation Building (UW Tacoma) D/C 55,000 - 4,000 36,000 ------40,000

Anderson Hall Renovation for College of the E nvironment D/C 30,000 - - 30,000 ------30,000 Miller Hall Renovation for College of E ducation D/C 64,000 - - 6,000 - 58,000 ------64,000

UW Medicine- Behavioral Health Institute at Harborview Medical Ctr PD 100,500 500 ------500

Renovation/Replacement of Bagley Hall (A&S ) - Phase I PD/D/C 77,000 1,000 - 10,000 - 66,000 - - - - - 77,000

Research Lab Modernization HS B B & D Wing (S chool of Dentistry) PD/D/C 52,000 - - - - 12,000 - - - - - 12,000

Ischool & HCDE Partnership Building PD/D/C 102,000 - - - - 10,000 - 42,000 - - - 52,000

T-Wing Renovation - Phase 3 D/C 92,000 ------27,000 - 65,000 - - - 92,000

College of E ngineering Interdisciplinary E d. and Research Center - Phase 2 PD/D/C 75,000 - - - - - 500 - 5,000 - 45,000 - 50,500

Renovation/Replacement of Bagley Hall (A&S ) - Phase II D/C 76,000 ------7,000 - 69,000 - 76,000

Restore the Core (Phase 2) D/C 70,000 ------500 - 5,000 - 5,500 Phase Totals: 168,750 10,000 315,750 - 122,000 - 115,500 - 119,500 - 119,000 - 970,500 Acq = Acquisition PD = Pre-Design D/C = Design / Construction B-1.2/207-19 ATTACHMENT 2 Page 1 of 1 7/11/19

Analytics: Capital Distribution

The proposed capital plan represents a balanced approach to address the primary drivers for capital needs – Investments in clinical space, investments in new space driven by growth, reinvestment in existing facilities, and strategic investments with longer-term payoffs. The plan also distributes the capital across the units, with most of the focus on UW Medicine and Education & General facilities in Seattle.

PRIMARY DRIVERS SIX-YEAR CASH FLOW (by Primary Driver)

FUNDING DISTRIBUTION AREAS CAPITAL DISTRIBUTION BY AREA (in millions)

UW Medicine Auxilaries UW Bothell School of Medicine College of Engineering Arts & Sciences College of Environment School of Dentistry Clean Energy Institute College of Education School of Public Health Foster School of Business UW Tacoma iSchool School of Nursing School of Pharmacy Evans School of Public Policy Recreational Sports

$- $200 $400 $600 $800 $1,000 B-1.3/207-19 ATTACHMENT 3 Page 1 of 1 7/11/19

Analytics: Funding Summary

The proposed capital plan of roughly $3.7 billion utilizes a balanced mix of fund sources across the six-year window to achieve the University’s goals.

FUNDING ALLOCATION BY SOURCE

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Analytics: Deferred Maintenance Impact

One of the primary components of our long-term strategy to reduce the deferred maintenance backlog is to increase the amount of capital we direct toward existing facilities. The graph at the bottom of the page illustrates that a higher percentage of our capital spend will be directed to existing facilities which will allow us to begin lowering our deferred maintenance backlog.

LONG TERM DEFERRED MAINTENANCE OUTLOOK

ANNUAL SPENDING vs. RENEWAL TARGETS

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