1. SUNY Office for Capital Facilities New Business Officers Orientation
Community College Business Officers Association
November 2013
11/2013

2. Contents Office for Capital Facilities (OCF) Energy Services
Mission/Org Chart
Energy Services
OCF Community College Capital
CC Capital - State Law
Sponsor Funding
Capital Restrictions
Approval/Funding Process
Q&A
11/2013

3. SUNY Office for Capital Facilities
Mission – Provide guidance, tools, data, oversight and technical expertise for the care, custody, control and management of Campus facilities in the following core areas:
State Operated
Community Colleges
Environmental Health and Safety √
Energy Buying Group
Residential Facility Capital
Community College Capital
Sustainability
Campus Let Procurement
11/2013

4. SUNY OCF Org Chart
Vice Chancellor for Capital Facilities – Robert Haelen
Energy Kathy Slusher
Environmental Health and Safety Barbara Boyle
Residence Hall Capital David Ferrari
Community College Capital Rebecca Goldstein
Sustainability Deborah Howard
Director Karren Bee-Donohoe
Campus Let Procurement Jessica Miller
11/2013

5. SUNY Energy Buying Group
SUNY Energy Buying Group (EBG) is an electricity provider
Electricity purchased from the NYISO (NY independent system operator) and supplied to the colleges at cost
Small chargeback funds the staff but much less than the profit margin of for-profit suppliers
$16.3M saved for system since 2004
OCF Energy office also provides natural gas purchasing services
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6. CCs in the Energy Buying Group
Currently 7 community colleges participate in Energy Buying Group:
Adirondack, Columbia-Greene, Corning, Finger Lakes, Herkimer, Jefferson, Sullivan
Natural Gas Purchasing:
Erie is participating in large natural gas aggregated load with SUNY
For more information contact Kathy Slusher
11/2013

7. OCF CC Capital Natural Science Center – SUNY-Broome
Student Union – Rockland Community College
11/2013

8. OCF Staff Background
Karren Bee-Donohoe – 29 years of university facilities experience including maintenance and operations, capital project development, capital project finance, Director SUNY OCF for nearly 4 years
Rebecca Goldstein – 22 years experience managing various programs for non-profit and governmental agencies,  Started in 2011 as the Community Colleges Capital Program Manager
11/2013

9. Community College Capital Program – State Requirements
Regulated by Part 603 of the NY Code of Rules and Regulations See:
Under the Financial Section – find the link to Capital Budget Part 603.3
Regulations are based on NY Education Law Sect. 6304
For all Capital projects the local sponsor share must be at least 50% of costs
NYS 50% share requires State appropriation authority
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15. Source of Local Sponsor Share
County capital appropriations
Gifts – must be recognized by Sponsor and SUNY Board
Monetary, real property, services in kind
Must be well documented
Grants - recognized by the Sponsor
Capital chargeback revenue from your students from other counties
11/2013

16. Chargeback Capital
Chargeback Capital Rate - maximum of $300 per non-resident student, in effect since 1976
Per §603.7 may be used as follows:
As Sponsor share for acquisition of real property, construction or rehabilitation
To reduce indebtedness of the sponsor
To pay sponsor’s cost of financing debt
For Sponsor’s share for other purposes permitted within an approved capital budget
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17. Chargeback Capital (cont)
May be used for 50% share of equipment meeting the following:
Tangible asset
Useful life of at least 2 years
Unit cost of at least $1000
If purchased in quantity unit cost of at least $500 and aggregate cost of $10,000 or more
Equipment purchased by Capital Chargeback may not qualify for State Operating Aid
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18. Appropriate Capital Budget Items
Real property acquisition
Professional services for site selection, surveys, appraisals, relocation planning, demolition, facility design for new or renovations, construction supervision, identification and specifications for capital equipment
Construction
Equipment acquisition and installation
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19. Rules for Real Property
Acquisition of real property requires two appraisals – State recognizes lowest
Capital may be expended in leased facilities provided:
Facility lease is in place before any capital expenditure
Lease is long enough for bond funds to be fully paid – generally 25 year minimum lease term
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20. Difference Between Repair and Capital
Building maintenance and repairs may not be included in Capital Budgets
Per §602.4 (d) (5) Repairs are maintenance actions to keep facility in operating condition. Repairs do not significantly add to facility value nor prolong useful life
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21. Project Approval & Financing Steps
Capital Budget Request – each late summer/fall
Must include sponsor resolution
Project Initiation Form (PIF) accompanies request to provide additional project details
State Budget Appropriation – April
Revised PIF required – finalized budget/schedule
SUNY Approval – Chancellor’s designee
Financing application – DASNY approval
Reimbursement request
11/2013

22. 1 - SUNY Capital Budget Request
Annually SUNY issues a “Budget Call Letter” asking CCs to identify projects with local sponsor funding support without corresponding State support or project increases in the upcoming state fiscal year. Additional info about outlying years’ preliminary plans is requested
Each project requires a budget and general schedule. All year-one projects must be submitted with PIFs and Sponsor resolutions. Information is included in a comprehensive SUNY capital budget request following SUNY Board approval
Deadline for submitting projects is usually before 10/30 for consideration at the November SUNY Board meeting
11/2013

23. SUNY Capital Budget Request (cont)
SUNY’s budget request is subsequently submitted to NYS Division of Budget (DoB) for consideration to include in the State’s Executive Budget, released the 3rd week of January
Capital Appropriations need to be approved in the State’s final Enacted Budget
The Start of the State’s fiscal year is April 1
State’s funding share for capital projects requires bond financing through DASNY
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24. Project Initiation Form
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25. Project Initiation Form (cont.)
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26. 2 – State Budget Passage
Appropriation is approved as part of the State budget approval – April 1
Appropriation is for 50% State Share
Generally lined out in budget bill: College/Project
Developing broad project titles provides greatest flexibility of use
Appropriation is State authorization, not SUNY Project Approval – Project Approval is a separate step
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27. 3 – SUNY Project Approval
Prior to January 2011 all projects had to be approved by SUNY Board of Trustees
SUNY BoT resolution approved in January 2011 provides for Chancellor’s designee to approve projects
Vice Chancellor for Capital Facilities, Bob Haelen is the current designee
Approval is sent to VP with next steps
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28. 4 - Financing Application
After project is approved by the Chancellor’s designee, College must submit financing application
SUNY OCF sends completed Financing Application to DASNY
DASNY Bond Counsel reviews project information to ensure qualification for bond-financed reimbursement
DASNY relays approval to SUNY; SUNY informs CC
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29. Financing Application
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30. Financing Application (cont)
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31. 5 - Reimbursement
College/Sponsor must expend funds in the first instance
Once financing application has been approved College may apply for reimbursement
Reimbursement request made to DASNY PMs
SUNY OCF encourages regular reimbursement requests to help better predict cash flow and increase DOB’s confidence of projections
11/2013

32. Other Info Bonding Annual private use survey CC capital statistics
Project Changes
Contracting for capital projects
Summary of OCF services
11/2013

33. Bonding - Disbursement Financing
Prior to 2010 Bonds were issued for each project
2010 NYS Division of the Budget required CC Program to move to cash disbursement bonding
Desire by the state to utilize existing bond proceeds and appropriations
Future bond sales will be sized based on anticipated months reimbursements
OCF needs accurate project information and updates to appropriately estimate bonding levels
11/2013

34. Annual Private Use Survey
Previously required for each new project
In 2012, changed to annual survey completion reflecting all private use on campus
Uses include, but not limited to:
Bond Counsel’s due diligence to ensuring IRS compliance with bond-financed reimbursement, bond sales, refinancing
Coordination with CC Rental Aid assistance process
Future Start-Up New York information collection
11/2013

35. Community College Capital – Statistics
Stafford Center - Clinton Community College
Conable Technology Building
Genesee Community College
11/2013

36. CC Building Construction by Year
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37. Community College Capital Needs
Capital reinvestment study completed in 2009
SUNY in planning stages for next 5 year study
Significant backlog of $411M in deferred maintenance
Without investment, deferred maintenance expected to grow to $807M by 2014 and $1.3B by 2019
Inability to secure the required 50% local match is the single largest impediment to the program
Growth in CC enrollment compounds the facility dilemma as more students use increasingly deteriorating facilities
9/19/2018

38. CC Historic Capital Funding
11/2013

39. CC Historic Capital Reimbursement
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40. Changes to Capital Project Budgets
Increases require revised resolution from the College sponsor plus a resolution from the College Board
College provides an updated Project Initiation Form with revised budget components and schedule
Upon review and determination of available appropriation, SUNY will issue an approval of the revised project budget
If appropriation is not available, additional funding will be included in the next annual budget request
11/2013

41. Capital Projects Contracts
Follow your Sponsor’s procurement regulations to engage with architectural and engineering consultants and contractors
County/Sponsor may hold contracts
College may hold contracts
May use DASNY with approval of SUNY BoT
11/2013

42. OCF – Community College Capital
Community College Capital – Rebecca Goldstein
Annual Call for CC Capital Plan
Update Process and Procedures
SUNY Project Approval Process
Manage Appropriation
Develop Annual Bond and Appropriation Requests
Project Cash Flow
11/2013

43. OCF Community College Services
Provide services for capital planning and financing
Provide clear procedures, forms & checklists
Work with colleges to secure State funding for community college capital project needs
Enhance reporting in light of change to cash flow bond financing
One on one working sessions with Colleges
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47. 9/19/2018

48. 9/19/2018

49. We’re here to help!!
Rebecca Goldstein, Community College Capital Program Manager,
Karren Bee-Donohoe, Director, Office for Capital Facilities,
11/2013