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2018 UC Capital Financial Plan

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2018 UC Capital Financial Plan Capital Financial Plan 2018-28 University of California Office of the President Capital Asset Strategies & Finance 1111 Franklin Street, 6th Floor Oakland, California 94607-5200 Cover photo: Geisel Library to the Price Center, UC San Diego Photo credit: Elena Zhukova 2018-28 CAPITAL FINANCIAL PLAN TABLE OF CONTENTS Perspective ............................................................................................................................................................... 5 Campus Current Term (2018-19 to 2023-24) Capital Plan ..................................................................................... 18 Medical Center Current Term (2018-19 to 2023-24) Capital Plan ......................................................................... 20 CAPITAL PLAN BY LOCATION How to Read the Tables .......................................................................................................................................... 23 Berkeley .................................................................................................................................................................. 25 Davis ....................................................................................................................................................................... 33 UC Davis Health ...................................................................................................................................................... 39 Irvine ....................................................................................................................................................................... 45 UC Irvine Health ...................................................................................................................................................... 52 Los Angeles ............................................................................................................................................................. 57 UC Los Angeles Health System ................................................................................................................................ 63 Merced .................................................................................................................................................................... 69 Riverside ................................................................................................................................................................. 75 San Diego ................................................................................................................................................................ 83 UC San Diego Health ............................................................................................................................................... 90 San Francisco .......................................................................................................................................................... 95 UCSF Health .......................................................................................................................................................... 100 Santa Barbara ....................................................................................................................................................... 105 Santa Cruz ............................................................................................................................................................. 111 Division of Agriculture and Natural Resources ..................................................................................................... 117 Systemwide and Office of the President .............................................................................................................. 121 PERSPECTIVE The University’s capital program is driven by the campuses’ and medical centers’ academic and strategic plans. The Capital Financial Plan (CFP) is developed based on the needs at each location for infrastructure to achieve these overarching plans. Strategic and Academic Plans define priority areas and goals and may include institutional aspirations. The Long Range Development Plan is a comprehensive plan, as approved by the Regents, on proposed future physical planning and development of a campus or medical center. The Physical Design Framework identifies planning principles and objectives for design of the physical environment. The CFP presents proposed capital projects, public private partnerships, and acquisition of real property for each campus and medical center. The 2018-28 CFP represents, as articulated by the campuses and medical centers, the University’s capital plan through 2028. The ten year plan totals $47.6 billion of expected campuses’ and medical centers’ full capital needs. Projects are divided into two groups: those with a funding plan and those with a funding plan not identified. While the CFP articulates a ten-year horizon, this discussion focuses on this fiscal year and the next five fiscal years ending 2023-24 to align with the University’s annual reporting requirement to the state of California. These six years are collectively identified as the “current term.” The remaining four years (2024-28) are provided to give current term projects a broader planning context. Display 1. Summary of Current Term Capital Need Current 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Term Total Capital Need with Funding 7,701 5,280 4,309 1,839 4,406 1,215 24,750 Capital Need with Funding Not 936 1,820 3,593 1,854 1,071 2,526 11,800 Identified Total ($M) 8,637 7,100 7,902 3,693 5,477 3,741 36,550 The $36.6 billion is a projection of the University’s capital needs over the current term. UC is currently undertaking two significant capital initiatives−comprehensively assessing seismic and deferred maintenance deficiencies. Seismic evaluations are underway for facilities that have not been rated or have ratings that are out of date. It is expected that these evaluations will identify additional facilities that will require seismic mitigation or replacement beyond the projects that are included in the plan. Additionally, UC is undertaking facility condition assessments and the first priority is to complete the assessments of 68.4 million gross square feet of core academic and research space. Upon completion, these assessments will deliver a specific, asset-based deferred maintenance and capital renewal forecast for the state-eligible space. As the data becomes available, these new initiatives will inform future plans. 2018-28 CAPITAL FINANCIAL PLAN 5 PROGRAM ORGANIZATION can attract other funding sources, such as philanthropic support; however, in general, UC Capital needs are guided by campus’ and medical relies on the state support to fund these core center’s strategic and academic plans. The 2018-28 needs. CFP summarizes the campus and medical center capital programs separately. The ten campuses, five Display 2. Program Categories for 2018-19 to 2023-24 medical centers, Division of Agriculture and National Resources (ANR),1 and systemwide1 each $26,927 have a chapter that outlines the location’s capital needs. Within the campus chapters, the program is Medical $16,315 Campus Centers further grouped into Education and General, and $26,927 Auxiliary Enterprise projects. $9,623 $10,612 Campus Education and General (E&G). These projects involve the construction and renovation of Campus Education and General instruction, research, and student service space as Campus Auxiliary Enterprises well as infrastructure that supports the academic in millions of dollars program. To support campus academics, the CFP includes Campus Auxiliary Enterprises. The auxiliaries $10.6 billion of auxiliary projects. This total includes support the campus academic mission by providing: $8.4 billion of capital need to expand and renovate housing for students, faculty, and staff; parking; campus dining and student housing programs, with recreation; and other self-supporting enterprises some housing for faculty and staff. Unlike E&G that the University population may require. projects, auxiliary enterprises generate revenue to Typically these projects are located on or nearby a support the capital needs and do not rely on state campus. support. Medical Centers. These projects involve supporting The five medical centers have identified capital UC’s five medical centers and their associated needs totaling $9.6 billion. These projects include patient care networks. addressing seismic issues by correcting or replacing facilities that do not meet state standards, as well As shown in Display 2, the three administrative as renovating and constructing new space to groups: Campus Education and General, Campus provide the highest level of patient care. Auxiliary Enterprises, and Medical Centers collectively have identified $36.6 billion of capital CAPITAL NEED need in the current term. In order to summarize campus and medical center The $16.3 billion of need for academic and needs by broad objectives, each capital project is academic support space is the highest of three categorized into one of four objectives: enrollment, groups. Increasing enrollment, new academic program improvements, facilities modernization, programs, capital renewal, seismic corrections, and and infrastructure deficiencies. deferred maintenance are reflected in E&G projects. Some programs and research initiatives Enrollment projects provide capacity in classrooms and space for faculty related to
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