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FY 2017-18 Capital Budget Documents

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FY 2017-18 Capital Budget Documents UNIVERSITY OF SOUTH CAROLINA CAPITAL BUDGET DOCUMENT Fiscal Year 2017-2018 Presented to the Board of Trustees NOTE: This document is a compilation of current materials as of April 30, 2017, including previously provided documentation to the Buildings & Grounds and Executive Committees of the Board of Trustees. This document is provided to the Board of Trustees as information. During the budget cycle, changes will occur based on a number of factors including post-closing accounting entries for FY2017 affecting carryforward amounts, revenue revisions, new plans for programs, adjustments for enrollments, and numerous other factors. The University of South Carolina operating budget will be considered by the Board of Trustees on June 23, 2017 and includes state funding information. Periodic reports will be provided to the Board of Trustees as the fiscal year proceeds and budgetary changes are made. -This page intentionally left blank- Student Health Center - $27,500,000 Project Budget Construction Began - December 2015 Expected Completion – August 2017 -This page intentionally left blank- UNIVERSITY OF SOUTH CAROLINA CAPITAL BUDGET DOCUMENT Fiscal Year 2017-2018 Table of Contents I. Overview...................................................................................... 1 Letter of Transmittal ................................................................................... 3 Executive Summary ................................................................................... 5 Project Approval Process ........................................................................... 7 Five Year Capital Plan and Capital Renewal Plan ................................... 13 II. Capital Project Summary and Financing ................................ 29 Facilities Project Summary at April 30, 2017 ............................................ 31 Finance Project Summary at April 30, 2017 ............................................. 41 Closed Project Summary ......................................................................... 97 University Bond Indebtedness Summary at April 30, 2017 ...................... 99 State Capital Funding – FY2017 & FY2018 ........................................... 105 III. Appendices ............................................................................. 107 Appendix 1 – Administration and Finance Capital Planning Policy – FINA 7.00 ................................................................ 109 Appendix 2 - Comprehensive Permanent Improvement Plan – 2017 ..... 135 Appendix 3 - Capital Project Financing Sources .................................... 289 -This page intentionally left blank- 1 UNIVERSITY OF SOUTH CAROLINA CAPITAL BUDGET DOCUMENT Fiscal Year 2017-2018 Overview Letter of Transmittal Executive Summary Project Approval Process Five Year Capital Plan and Capital Renewal Plan – Presented to the Board of Trustees on February 17, 2017 2 -This page intentionally left blank- 3 4 -This page intentionally left blank- 5 UNIVERSITY OF SOUTH CAROLINA CAPITAL BUDGET DOCUMENT EXECUTIVE SUMMARY As a companion to the University of South Carolina operating budget, the capital budget process is a comprehensive planning effort representative of the vision of the University to provide teaching, research and service for the citizens of the State of South Carolina. The process involves participation beginning at the department level and reaching out to all campuses as we develop capital plans that reflect investments identified to significantly enhance our academic reputation, benefit our students and contribute to the economic and societal health of our State. Unlike the Total Current Funds Budget and Operating Budget, the Capital Budget time horizon exceeds one year. In order to provide this document to the Board of Trustees at the same time as the budget approval, all capital project status and financing information is provided as of April 30, 2017. The Capital Budget Document is presented as information, not for adoption. The Board of Trustees and Buildings and Grounds Committee have approved each major capital project, the Comprehensive Permanent Improvement Plan (CPIP), the Five-Year Plan, and the Capital Renewal Plan. The University does not begin capital projects without identified funding in place and as such the Board of Trustees will review and approve capital projects in accordance with the University and State process. In the 2018 Fiscal Year, the University continues to address deferred maintenance utilizing funds previously allocated by the General Assembly. The 2018 state budget does not include any capital project funding. However, a proposed Bond Bill has been introduced that will be considered in the 2018 session. Other activities will include the ongoing review and update of the Five-Year Plan and Capital Renewal Plan. Further, the Five Year Plan currently includes significant borrowings for the Housing Master Plan, which are currently under review for the potential use of public private partnerships as a means to complete those projects. Finally, the University will continue to refine interim Board of Trustees reporting on capital projects and capital project expenditure forecasting. 6 -This page intentionally left blank- 7 OVERVIEW OF STATE APPROVAL PROCESS FOR PERMANENT IMPROVEMENT PROJECTS A comprehensive summary of the capital project approval process for all of higher education is found in the Commission on Higher Education Facilities Policies and Procedures Manual. The document is located at this link: http://www.che.sc.gov/CHE_Docs/Finance/FacilitiesInformation/Facilities_Policies_Proc edures_Manual.pdf A State Permanent Improvement Project is defined as: 1. any acquisition of land, regardless of cost; 2. any acquisition, as opposed to the construction, of buildings and other structure, regardless of cost; 3. work on existing facilities including their renovation, repair, maintenance, alteration, or demolition in those instances where the total cost of all work involved is $1,000,000 or more; 4. architectural and engineering and other types of planning and design work, regardless of cost, which is intended to result in a permanent improvement project. Master plans and feasibility studies are not permanent improvement projects and, therefore, are not to be included; 5. capital lease purchase of any facility acquisition or construction in which the total costs is $1,000,000 or more; 6. equipment that either becomes a permanent fixture of a facility or does not become permanent but is included in the construction contract in which the total cost is $1,000,000 or more; and 7. new construction of a facility that exceeds a total cost of $500,000. In addition, any project funded with state capital improvement bonds, state capital reserve funds, state infrastructure bond funds, or specific state appropriated funds by the General Assembly for capital improvements must be established as a permanent improvement project, regardless of the amount. Permanent Improvement Project Approvals The University has established internal processes and procedures for authorization of Permanent Improvement Projects (Capital Projects) which require approval of proposed projects exceeding $250,000 by the Building and Grounds Committee and the Board of Trustees. In addition to these internal processes, central oversight of capital spending is provided by three entities that are external to the University. Funding of projects comes from sources within existing budgets based upon existing institutional funds, including gifts and tuitions and fees. The external approval process for spending these funds for capital improvements begins with the Commission on Higher Education, followed by the Joint Bond Review Committee with final approval authority residing with the State Fiscal Accountability Authority. 8 The types and dollar amounts of projects requiring review and approval through these processes are determined statutorily in Section 2-47-50 of the South Carolina Code of Laws. This section also requires approval of further revisions to scope and budget of previously approved projects. In addition to these statutorily prescribed approval processes, procedures for submitting projects in a two stage process have been adopted by the entities in an effort to more accurately develop project scope and budget prior to final project approval being given. Approval Process Guidelines The State Fiscal Accountability Authority shall formally establish each permanent improvement project before any actions which implement the project can be undertaken. The project must also be established before any expenditure can be made toward the project purpose. The permanent improvement projects of colleges, universities, and technical colleges require review by the Commission on Higher Education. Projects below the state approval threshold but with a cost of $250,000 or greater are subject to University Board approval. Projects with required funding of less than $250,000 may be completed at the discretion of the various University units. Permanent improvement projects are approved in two phases. The first phase establishes the project for pre-design and limited design services only. It is a request for approval to acquire professional services for pre-design and/or design services through development of concept design, preparation of a project budget for complete design and construction, and development of project schedule. The recommended budget for the pre-design phase is 1.5% of projected cost of project. If
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